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 811-4096
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MFS MUNICIPAL SERIES TRUST
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(Exact name of registrant as specified in charter)
500 Boylston Street, Boston, Massachusetts 02116
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(Address of principal executive offices) (Zip code)
Stephen E. Cavan
Massachusetts Financial Services Company
500 Boylston Street
Boston, Massachusetts 02116
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(Name and address of agents for service)
Registrant's telephone number, including area code: (617) 954-5000
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Date of fiscal year end: March 31, 2003
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Date of reporting period: September 30, 2003
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ITEM 1. REPORTS TO STOCKHOLDERS.
MFS(R) Mutual Funds
SEMIANNUAL REPORT 9/30/03
MFS(R) Municipal Income Fund
A path for pursuing opportunity
[MFS Logo](R)
INVESTMENT MANAGEMENT
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MFS(R) PRIVACY POLICY: A COMMITMENT TO YOU
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Privacy is a concern for every investor today. At MFS Investment Management(R)
and the MFS funds, we take this concern very seriously. We want you to
understand our policies about every MFS investment product and service that we
offer and how we protect the nonpublic personal information of investors who
have a direct relationship with us and our wholly owned subsidiaries.
Throughout our business relationship, you provide us with personal information;
we maintain information and records about you, your investments, and the
services you use. Examples of the nonpublic personal information we maintain
include
o data from investment applications and other forms
o share balances and transactional history with us, our affiliates, or others
o facts from a consumer reporting agency
We do not disclose any nonpublic personal information about our customers or
former customers to anyone except as permitted by law. We may share information
with companies or financial institutions that perform marketing services on our
behalf or to other financial institutions with which we have joint marketing
arrangements.
Access to your nonpublic personal information is limited to appropriate
personnel who provide products, services, or information to you. We maintain
physical, electronic, and procedural safeguards that comply with applicable
federal regulations.
If you have any questions about MFS' privacy policy, please call 1-800-225-2606
any business day between 8 a.m. and 8 p.m. Eastern time.
Note: If you own MFS products or receive MFS services 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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NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
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MFS(R) MUNICIPAL INCOME FUND
The fund seeks as high a level of current income exempt from federal income
taxes as is consistent with prudent investing, while seeking protection of
shareholders' capital.
TABLE OF CONTENTS
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MFS PRIVACY POLICY
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LETTER FROM THE CHAIRMAN 1
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MFS ORIGINAL RESEARCH(R) 4
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MANAGEMENT REVIEW 5
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PERFORMANCE SUMMARY 8
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PORTFOLIO OF INVESTMENTS 11
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FINANCIAL STATEMENTS 30
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NOTES TO FINANCIAL STATEMENTS 41
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TRUSTEES AND OFFICERS 51
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MONEY MANAGEMENT FOR ALL TYPES OF INVESTORS 53
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CONTACT INFORMATION 54
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ASSET ALLOCATION 55
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LETTER FROM THE CHAIRMAN
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Dear Shareholders,
[Photo of Jeffrey L. Shames]
Our firm was built on the philosophy that bottom-up fundamental research is
the best means of achieving superior long-term investment performance. When
you're managing billions of dollars for investors, we think you have an
obligation to have in-depth, firsthand knowledge of every company owned,
anywhere in the world.
We have structured our equity and fixed-income investment teams to capitalize
on the strength of our investment process and the global reach of our analysts
based around the world. Our global research team is composed of 45 equity
research analysts, 27 based in the United States and 18 based abroad, and 26
credit research analysts. Each analyst is assigned one or more specific
industries and then charged with identifying the most attractive investment
ideas within these industries. Our U.S. and non-U.S. equity research analysts
are unified into one team that emphasizes a collaborative process in analyzing
securities around the globe. Credit analysts also share their expertise in
each segment of the fixed-income market and work as part of the same team
ensuring that every member has access to information that may have a material
effect on their investment decisions. As MFS(R) continues to grow and as
markets become more complex, we believe our structure will enable us to
maintain a consistent investment process with the goal of providing strong,
long-term investment performance across market capitalizations, investment
disciplines, and country borders for our investors.
THINKING GLOBALLY
More companies than ever compete globally and, therefore, we must make
investment decisions knowing what is occurring outside of a company's local
market. This trend plays to the strength of our environment of collaboration
between our analysts and portfolio managers around the globe. The analysts
know the most details about individual companies in specific industries and
geographic regions. The portfolio managers have broader, cross-industry
insights and a wider perspective on companies and industries. Our goal is to
make sure those two sets of perspectives coordinate and work well together. As
the world's markets become more interdependent, we believe our collaborative
environment allows us to produce solid investment ideas for our portfolios.
BUILDING A NETWORK
Simply put, we believe our structure assures that our analysts maintain their
peripheral vision rather than becoming too immersed in a specific segment of
the market. We do not believe that analysts and portfolio managers - no matter
how talented they may be - can succeed by working in a vacuum. Through the
latest technology available, our entire research team meets frequently via
video and telephone teleconferences, e-mail, and PDAs (personal digital
assistants). When we hire new analysts, we require them to spend an average of
one year in Boston to learn MFS' culture and to build relationships with their
peers. We believe the interaction among our analysts is the key to making our
collaborative process work toward delivering superior long-term investment
performance for our investors. Our analysts work out of four research offices
in Boston, London, Singapore, and Tokyo, and are assigned to specific regions
and industries. They meet regularly with their colleagues to discuss world
trends affecting the companies they cover.
In addition, our equity and fixed-income analysts often visit company
managements as a team. This collaboration is vital because of the different
perspectives they bring to their analysis. Because a company's stock price has
tended to follow its earnings over time, our equity research analysts tend to
focus on gauging earnings potential, a company's position within its industry,
and its ability to grow its market share. Conversely, our fixed-income
analysts will look at stability of a company's cash flow, the value of its
assets, and its capital structure to gauge whether the company can generate
enough free cash flow to pay off its debt. As a result of their collaboration,
we believe we're able to see a more complete view of a company.
WORKING TOGETHER
Our portfolio managers also work closely with the analysts to select the most
appropriate securities for their portfolios from the various recommendations
made by the analysts. Opinions are exchanged and ideas are challenged so that
each member of our team is involved in our investment process. In fact, our
portfolio managers will be the first ones to tell you that many of their best
ideas start with the research analysts. We believe our collaborative approach
also provides us with an effective way to assess risk. Our portfolio managers
are not discouraged from taking on an appropriate level of risk; however, we
have rigorous guidelines to assure that the level of risk is measured and
monitored and consistent with the investment philosophies of each of our
portfolios. All told, we believe our culture empowers the members of our
investment team to continue to do their best work and allows them to make
better investment decisions.
As always, we appreciate your confidence in MFS and welcome any questions or
comments you may have.
Respectfully,
/s/ Jeffrey L. Shames
Jeffrey L. Shames
Chairman
MFS Investment Management
October 21, 2003
The opinions expressed in this letter are those of MFS and no forecasts can be
guaranteed.
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MFS ORIGINAL RESEARCH(R)
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THE HUMAN SIDE OF MONEY MANAGEMENT
For nearly 80 years MFS has been offering investors clear paths to pursuing
specific investment objectives. Today, millions of individuals and thousands
of institutions all over the world look to MFS to manage their assets with
insight and care.
Our success, we believe, has to do with the fact that we see investors as
people with plans, not just dollars to invest.
When you invest with MFS, you invest with a company dedicated to helping you
realize your long-term financial goals.
INVESTORS CHOOSE MFS FOR OUR
o global asset management expertise across all asset classes
o time-tested money management process for pursuing consistent results
o full spectrum of investment products backed by MFS Original Research(R)
o resources and services that match real-life needs
TURNING INFORMATION INTO OPPORTUNITY
Sound investments begin with sound information. MFS has been doing its own
research and analyzing findings in-house for decades. The process we use to
uncover opportunity is called MFS Original Research(R).
MFS ORIGINAL RESEARCH INVOLVES:
o meeting with the management of 3,000 companies each year to assess their
business plans and the managers' ability to execute those plans
o making onsite visits to more than 2,000 companies annually to gain first-hand
knowledge of their operations and products
o analyzing financial statements and balance sheets
o talking extensively with companies' customers and competitors
o developing our own proprietary estimates of companies' earnings
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MANAGEMENT REVIEW
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MARKET ENVIRONMENT
For the six-month period as a whole, long-term municipal interest rates were
virtually unchanged, while rates on shorter-maturity issues (maturities of
less than 15 years) declined modestly. Those facts, however, belie the
tremendous volatility in the bond market over that time. In early 2003 and
into the first half of the period, we saw a confluence of factors that were
positive for bond prices. Geopolitical uncertainty, the hangover from
corporate scandals in 2002, and a weak U.S. economy were among the factors
that prompted a "flight to quality" by many investors and pushed interest
rates down to four-decade lows by spring 2003.
In late June, however, the bond market reversed direction as fixed-income
investors became concerned that the economic recovery was accelerating faster
than expected. Although stocks had been rising since late March, the catalyst
for the bond market appeared to be the Federal Reserve Board's decision on
June 25 to lower rates by one-quarter percent rather than one-half percent as
many investors had expected. From that date through the end of August, 2003
bond rates rose sharply. Rates came back down slightly in the final weeks of
the period.
Municipal bonds in general slightly outperformed Treasuries over the period,
as municipal bond yields were largely unchanged or modestly lower, while
Treasury yields were generally higher across the yield curve. (The principal
value and interest on U.S. Treasury securities are guaranteed by the U.S.
government if held to maturity.)
PORTFOLIO CONCENTRATION 9/30/03
QUALITY RATINGS
"AAA" 49.5%
"AA" 8.1%
"A" 10.0%
"BBB" 19.7%
"BB" 7.8%
"B" 4.4%
"Other" 0.5%
The portfolio is actively managed, and current
holdings may be different.
CONTRIBUTORS TO PERFORMANCE
Bond market performance over the period was largely driven by coupon yield
because long-term rates were nearly unchanged, while short-term rates, on
securities with maturities of 15 years or less, declined modestly. In that
environment, the fund's outperformance - relative to both its benchmark, the
Lehman Brothers Municipal Bond Index (the Lehman Index) and its Lipper peer
group - was mainly a result of sector and security selection. The fund has
historically focused on using our bottom-up research to seek out bonds that
offer higher yields than average "AAA"-rated insured bonds, yet also offer
what we believe is reasonable safety of principal and interest payments to
maturity. We believe our yield-oriented strategy helped performance over
the period.
In the utilities sector, we witnessed a recovery from what we would term a
near-panic in the sector. In mid-2002, in the wake of the Enron scandal,
utilities became the poster children for what was wrong with American
business. Credit rating agencies seemed to take a dim view of any company with
energy trading exposure. Although the fund's utility investments were mainly
in so-called "integrated" utilities - regulated companies that generate their
own power, sell it to their own customer base, and have little or no trading
exposure - the market for a time tended to paint all utilities with the Enron
brush. Investors worried that banks would refuse to renew utilities' short-
term debt and push many of them into bankruptcy. That fear pushed down stock
and bond prices of most utilities in 2002 and into early 2003.
By the beginning of the six-month period, however, the panic had started to
subside. Utilities had begun to improve their balance sheets by issuing equity
to pay down debt. Banks restructured utility debt. Investors seemed to realize
that most utilities were not in imminent danger of bankruptcy and that perhaps
their securities had become undervalued. The result was strong performance of
the fund's utility holdings over the period.
The fund also benefited from the recovery of two housing-project bond issues
that had struggled in the past. As the projects showed signs of improving cash
flow, their bond prices increased substantially. While these holdings had
previously detracted from performance, they helped results over the period,
and one of the two issues was sold out of the portfolio.
Relative to the Lehman Index, mortgage-backed housing bonds also helped
performance. For the period as a whole, housing bonds in general performed
well because they offered attractive income and were somewhat less volatile
than the overall market. In addition, our allocation to the sector was largely
in PAC ("planned amortization class") issues that were protected from
prepayments. As rates fell for the first half of the period, the risk of
prepayment - from homeowners refinancing their mortgages at lower rates -
dampened the price appreciation potential of housing bonds. Thus our
preference for PAC issues helped us perform well in the sector.
DETRACTORS FROM PERFORMANCE
Relative to its Lipper peer group, the fund's positioning on the yield curve
detracted modestly from performance over the period. In managing the fund, we
try to pick what we believe is the optimal spot on the yield curve - a time to
maturity that optimizes the combination of yield and risk. Our research has
for some time indicated that the 15- to 20-year part of the yield curve is
that optimal spot. However, while a strategy of overweighting the portfolio in
bonds with maturities in the 15- to 20-year range has, we believe, worked well
for the fund over the longer term, it did detract slightly from performance
over the period. Bonds in the front part of the yield curve - maturities of 10
years and less - outperformed because the Federal Reserve Board lowered short-
term rates in June, while long-term rates were nearly unchanged over
the period.
Respectfully,
/s/ Michael L. Dawson /s/ Geoffrey L. Schechter
Michael L. Dawson Geoffrey L. Schechter
Portfolio Manager Portfolio Manager
The opinions expressed in this report are those of the portfolio managers and
are current only through the end of the period of the report as stated on the
cover. These views are subject to change at any time based on market and other
conditions, and no forecasts can be guaranteed.
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PERFORMANCE SUMMARY THROUGH 9/30/03
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Because mutual funds are designed for investors with long-term goals, we have
provided cumulative results as well as the average annual total returns for
the applicable time periods. Performance results reflect the percentage change
in net asset value, including the reinvestment of any dividends and capital
gains distributions. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. (See
Notes to Performance Summary.)
TOTAL RETURNS
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Average annual
without sales charge
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Class
Share inception
class date 6-mo 1-yr 3-yr 5-yr 10-yr
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A 9/7/93 -- 3.20% 6.53% 4.57% 5.21%
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B 12/29/86 -- 2.56% 5.81% 3.81% 4.38%
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C 1/3/94 -- 2.56% 5.80% 3.80% 4.40%
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Average annual
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Comparative benchmarks
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Average municipal
debt fund+ 2.57% 2.90% 6.61% 4.23% 4.94%
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Lehman Brothers Municipal
Bond Index# 2.66% 3.89% 7.71% 5.67% 6.03%
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Average annual
with sales charge
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A -- -1.70% 4.82% 3.55% 4.70%
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B -- -1.38% 4.91% 3.48% 4.38%
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C -- 1.57% 5.80% 3.80% 4.40%
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Cumulative without
sales charge
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Share
class 6-mo 1-yr 3-yr 5-yr 10-yr
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A 3.35% 3.20% 20.90% 25.02% 66.18%
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B 3.08% 2.56% 18.47% 20.54% 53.48%
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C 3.08% 2.56% 18.44% 20.51% 53.81%
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Periods less than one year are actual, not annualized.
+ Source: Lipper Inc., an independent firm that reports mutual fund
performance.
# Source: Standard & Poor's Micropal, Inc.
INDEX DEFINITION
LEHMAN BROTHERS MUNICIPAL BOND INDEX - A broad measure of the municipal bond
market.
It is not possible to invest directly in an index.
NOTES TO PERFORMANCE SUMMARY
Class A results, including sales charge, reflects the deduction of the maximum
4.75% sales charge. Class B results, including sales charge, reflects the
deduction of the applicable contingent deferred sales charge (CDSC), which
declines over six years from 4% to 0%. Class C results, including sales
charge, redeemed within one year from the end of the calendar month of
purchase reflects the deduction of the 1% CDSC.
Performance for share classes offered after class B shares includes the
performance of the fund's class B shares for periods prior to their offering.
Blended class performance has been adjusted to take into account differences
in sales loads, if any, applicable to these share classes, but has not been
adjusted to take into account differences in class specific operating expenses
(such as Rule 12b-1 fees). Compared to performance these share classes would
have experienced had they been offered for the entire period, the use of
blended performance generally results in higher performance for share classes
with higher operating expenses than the initial share class, and lower
performance for share classes with lower operating expenses than the initial
share class.
All performance results reflect any applicable expense subsidies and waivers
in effect during the periods shown; without these, the results would have been
less favorable. See the prospectus and financial statements for details. All
results are historical and assume the reinvestment of dividends and capital
gains.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PAST PERFORMANCE
IS NO GUARANTEE OF FUTURE RESULTS, AND THE PERFORMANCE SHOWN DOES NOT REFLECT
THE DEDUCTION OF TAXES, IF ANY, THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
MARKET VOLATILITY CAN SIGNIFICANTLY AFFECT SHORT-TERM PERFORMANCE, AND MORE
RECENT RETURNS MAY BE DIFFERENT FROM THOSE SHOWN. VISIT WWW.MFS.COM FOR MORE
CURRENT PERFORMANCE RESULTS.
KEY RISK CONSIDERATIONS
A small portion of income may be subject to state, federal, and/or alternative
minimum tax. Capital gains, if any, are subject to a capital gains tax.
Investments in high yield or lower-rated securities may provide greater
returns but are subject to greater-than-average risk.
These risks may increase share price volatility. Please see the prospectus for
further information regarding these and other risk considerations.
This report is prepared for the general information of shareholders. It is
authorized for distribution to prospective investors only when preceded or
accompanied by a current prospectus.
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PORTFOLIO OF INVESTMENTS - (unaudited) 9/30/03
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The Portfolio of Investments is a complete list of all securities owned by your fund. It is
categorized by broad-based asset classes.
PRINCIPAL AMOUNT
ISSUER (000 Omitted) $ VALUE
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Municipal Bonds - 98.7%
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Airport and Port Revenue - 2.6%
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Chicago, IL (O'Hare International Airport), AMBAC, 5.5s, 2019 $350 $377,563
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Chicago, IL (O'Hare International Airport), RITES, FSA,
10.06s, 2022(++)+ 1,500 1,744,710
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Connecticut Airport Rev. (Bradley International Airport),
FGIC, 7.65s, 2012(+++) 305 325,338
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Connecticut Airport Rev. (Bradley International Airport),
FGIC, 7.65s, 2012 695 736,248
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Louisville & Jeff County, KY, Regional Airport Authority,
"A", MBIA, 6.5s, 2017 3,000 3,415,860
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Massachusetts Port Authority Rev., 5.75s, 2010 1,425 1,643,880
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Oklahoma City, OK, Airport Trust, "B", FSA, 5.75s, 2017 1,080 1,172,048
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$9,415,647
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Chemicals - 1.1%
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Brazos River, TX, Harbor Navigation District (Dow
Chemical Co.), 5.7s, 2033 $1,000 $1,056,730
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Lake Charles, LA, Harbor & Terminal District Port
(Occidental Petroleum), 7.2s, 2020 1,000 1,017,220
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Red River Authority of Texas, Pollution Control Rev.
(CNA Holdings, Inc.), 6.7s, 2030 1,000 1,062,870
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Sweetwater County, WY, Solid Waste Disposal Rev.
(FMC Corp.), "A", 7s, 2024 1,000 1,001,070
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$4,137,890
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General Obligation - General Purpose - 5.6%
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Chicago, IL (Lakefront Millennium Parking Facilities),
MBIA, 5s, 2018 $4,000 $4,208,160
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Commonwealth of Massachusetts, 5.875s, 2017 3,205 3,817,732
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Cranston, RI, FGIC, 6.375s, 2014 200 241,116
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Houston County, AL, AMBAC, 6.25s, 2019 850 1,005,729
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Indianapolis, IN, Public Improvement Bond Bank, "C",
AMBAC, 6s, 2017 500 579,350
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Mobile County, AL, 6s, 2014 800 934,800
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New Orleans, LA, AMBAC, 0s, 2015 3,000 1,799,400
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New York, NY, "B", 5.75s, 2015 1,650 1,833,562
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San Antonio, TX, 5s, 2020 700 722,449
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Shelby County, TN, 0s, 2013 3,000 2,028,990
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Southlake, TX, AMBAC, 0s, 2022 3,185 1,051,814
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Southlake, TX, AMBAC, 0s, 2023 3,150 965,570
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Wisconsin State, "C", 6s, 2019 1,200 1,380,216
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$20,568,888
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General Obligations - Improvement - 4.1%
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Birmingham, AL, "A", 5.75s, 2017 $1,000 $1,147,440
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Commonwealth of Puerto Rico, ROLS, FGIC,
9.806s, 2015(++)+ 3,000 4,013,340
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Mesa, AZ, FGIC, 5s, 2018 3,625 3,833,256
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New York, NY, "J", MBIA, 5s, 2017 2,000 2,127,700
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Worcester, MA, FSA, 6s, 2017 3,475 4,045,421
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$15,167,157
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General Obligations - Schools - 9.6%
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Bay Village, OH, City School District, School
Improvement, 5.25s, 2016 $500 $547,055
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Chicago, IL, Board of Education, AMBAC, 0s, 2015 1,500 878,520
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Detroit, MI, City School District," B", FGIC, 5s, 2021 2,000 2,093,140
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Dudley-Charlton, MA, Regional School District, RITES,
FGIC, 9.208s, 2017(++)+ 1,495 1,909,534
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Florida State Board of Education Capital Outlay, Public
Education, "A", 5s, 2019 1,000 1,045,300
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Forsyth County, GA, School District, 6s, 2015 400 472,760
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Fresno, CA, Unified School District, MBIA, 6.55s, 2020 1,225 1,474,973
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Garnet Valley, PA, School District, FGIC, 5.5s, 2015 880 992,086
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Goose Creek, TX, Consolidate School District, PSF, 5s, 2020 2,500 2,606,400
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Houston, TX, Independent School District, RITES, PSF,
9.139s, 2017(++)+ 2,325 2,669,239
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Keller, TX, Independent School District, PSF, 6s, 2017(+++) 1,755 2,103,543
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Keller, TX, Independent School District, PSF, 6s, 2017 225 261,913
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Leander, TX, Independent School District, PSF, 0s, 2018 2,500 1,100,225
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Manistee, MI, Area Public Schools, FGIC, 5.75s, 2019 700 820,526
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Marshall, MI, Public School District, 5.5s, 2018 500 553,830
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Mason, OH, City School District, School Improvement,
5.375s, 2016 1,250 1,388,187
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Phenix City, AL, AMBAC, 5.65s, 2021 1,500 1,655,175
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Philadelphia, PA, School District, MBIA, 6s, 2016 750 870,360
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Pierre, SD, School District, FSA, 5.7s, 2017 1,000 1,132,580
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Richland-Beanblossom, IN, School Building Corp., First
Mortgage, FGIC, 5.5s, 2014 390 442,233
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Roma, TX, Independent School District, PSF, 5.875s, 2020 1,705 1,931,373
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Walled Lake, MI, Consolidate School District, 5.125s, 2021 1,250 1,306,250
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Warren Township, IN (Vision 2005 School Building Corp.),
FGIC, 5.5s, 2020 2,600 2,835,742
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Williamson County, TN, Rural School, 6.125s, 2016 1,665 1,987,777
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Williamson County, TN, Rural School, 6.125s, 2017 1,765 2,107,163
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Willis, TX, Independent School District, PSF, 5.75s, 2018 305 358,833
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$35,544,717
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Health Care Revenue - Hospitals - 17.0%
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Allegheny County, PA, Hospital Development Authority Rev.
(West Penn Hospital), 9.25s, 2022 $350 $343,830
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Allegheny County, PA, Hospital Development Authority Rev.
(West Penn Hospital), 9.25s, 2030 650 637,487
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Baldwin County, AL (Thomas Hospital), 5.75s, 2027 600 561,102
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Baxter County, AR, Hospital Rev., 5.375s, 2014 1,000 1,027,260
- -----------------------------------------------------------------------------------------------------
Chemung County, NY, Industrial Development Authority Rev.
(St. Joseph's Hospital), 6s, 2013 790 777,486
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Colorado Health Facilities Authority Rev., Refunding &
Improvement Hospital (Parkview), 6s, 2016 1,000 1,049,080
- -----------------------------------------------------------------------------------------------------
Colorado Health Facilities Authority Rev. (Portercare
Adventist Health Systems), 6.625s, 2026 500 543,500
- -----------------------------------------------------------------------------------------------------
Cullman, AL (Cullman Regional Medical Center), 6.5s, 2013 390 395,386
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Cuyahoga County, OH, Hospital Facilities (Canton, Inc.),
7.5s, 2030 900 995,589
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Delaware Health Facilities Authority Rev. (Nanticoke
Memorial Hospital), 5.625s, 2032 675 700,508
- -----------------------------------------------------------------------------------------------------
Denver, CO, Health & Hospital Authority Rev., 5.375s, 2018 300 299,073
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Denver, CO, Health & Hospital Authority Rev., 6s, 2023 500 508,710
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District of Columbia, Health & Hospital Authority Rev.
(Medstar University Hospital), "D", 6.875s, 2031 700 755,664
- -----------------------------------------------------------------------------------------------------
Fulton County, NY, Industrial Development Agency, Civic
Facilities Rev. (Nathan Littauer Hospital), 5.75s, 2009 250 246,718
- -----------------------------------------------------------------------------------------------------
Gainsville & Hall County, GA, Hospital Authority Rev.
(Northeast Georgia Health Systems, Inc.), 5.5s, 2031 445 447,715
- -----------------------------------------------------------------------------------------------------
Gulfport, MS, Hospital Facilities Rev. (Memorial
Hospital), 5.75s, 2031 500 510,930
- -----------------------------------------------------------------------------------------------------
Henrico County, VA, Industrial Development Authority Rev.
(Bon Secours), FSA, 10.661s, 2027 5,000 6,700,300
- -----------------------------------------------------------------------------------------------------
Highlands County, FL, Health Facilities Authority Rev.
(Adventist Health), 6s, 2031 350 369,044
- -----------------------------------------------------------------------------------------------------
Illinois Health Facilities Authority Rev. (Condell
Medical Center), 6.35s, 2015 1,000 1,088,160
- -----------------------------------------------------------------------------------------------------
Illinois Health Facilities Authority Rev. (Decatur
Memorial Hospital), 5.75s, 2024 350 358,134
- -----------------------------------------------------------------------------------------------------
Illinois Health Facilities Authority Rev. (Passavant
Memorial Area Hospital Associates), 6s, 2024 335 345,315
- -----------------------------------------------------------------------------------------------------
Illinois Health Facilities Authority Rev. (Riverside
Health Systems), 5.75s, 2022 650 656,604
- -----------------------------------------------------------------------------------------------------
Indiana Health Facilities Financing Authority, Hospital
Rev. (Munster Medical), 6.375s, 2021 1,700 1,716,711
- -----------------------------------------------------------------------------------------------------
Indiana Health Facilities Financing Authority, Hospital
Rev. (Munster Medical), 6.375s, 2031 500 501,540
- -----------------------------------------------------------------------------------------------------
Indiana Health Facilities Financing Authority, Hospital
Rev. (Riverview Hospital), 5.25s, 2014 400 410,340
- -----------------------------------------------------------------------------------------------------
Indiana Health Facilities Financing Authority, Hospital
Rev. (Riverview Hospital), 6.125s, 2031 250 255,560
- -----------------------------------------------------------------------------------------------------
Kentucky Economic Development Finance Authority, Health
System Rev. (Norton Healthcare, Inc.), 6.5s, 2020 1,250 1,314,462
- -----------------------------------------------------------------------------------------------------
Kentucky Economic Development Finance Authority, Health
System Rev. (Norton Healthcare, Inc.), 6.625s, 2028 250 261,768
- -----------------------------------------------------------------------------------------------------
Kentucky Economic Development Finance Authority,
Refunding & Improvement, "A", MBIA, 5s, 2018 2,400 2,540,040
- -----------------------------------------------------------------------------------------------------
Knox County, TN, Health Educational Hospital Facility
(Baptist Health Systems East Tennessee), 6.375s, 2022 1,000 1,036,900
- -----------------------------------------------------------------------------------------------------
Lauderdale County & Florence, AL (Coffee Health Group),
"A", MBIA, 5.25s, 2019 1,100 1,184,898
- -----------------------------------------------------------------------------------------------------
Lufkin, TX, Health Facilities Development Corp. (Memorial
Health System of East Texas), 6.875s, 2026 330 323,776
- -----------------------------------------------------------------------------------------------------
Macomb County Michigan Hospital Finance Authority Rev.,
"B" (Mount Clemens General Hospital), 5.75s, 2025 1,000 954,070
- -----------------------------------------------------------------------------------------------------
Marion County, FL, Hospital District Rev. (Monroe
Hospital), 5.625s, 2019 750 775,950
- -----------------------------------------------------------------------------------------------------
Marshall County, AL, Health Care, "A", 6.25s, 2022 500 530,805
- -----------------------------------------------------------------------------------------------------
Martin County, FL, Health Facilities (Martin Memorial
Medical Center), "B", 5.75s, 2022 850 849,107
- -----------------------------------------------------------------------------------------------------
Maryland Health & Higher Educational Facilities Rev.
(University of Maryland Medical System), 6.75s, 2030 1,000 1,109,780
- -----------------------------------------------------------------------------------------------------
Massachusetts Health & Educational Facilities Authority
Rev. (Anna Jaques Hospital), 6.875s, 2012 280 283,298
- -----------------------------------------------------------------------------------------------------
Massachusetts Health & Educational Facilities Authority
Rev. (Caritas Christi), 6.5s, 2012 400 413,784
- -----------------------------------------------------------------------------------------------------
Massachusetts Health & Educational Facilities Authority
Rev. (Caritas Christi), 5.7s, 2015 1,000 950,640
- -----------------------------------------------------------------------------------------------------
Massachusetts Health & Educational Facilities Authority
Rev. (Partners Healthcare), 5.75s, 2021 400 426,432
- -----------------------------------------------------------------------------------------------------
Mecosta County, MI, General Hospital Rev., 6s, 2018 300 287,391
- -----------------------------------------------------------------------------------------------------
Miami Beach, FL, Health Facilities (Mount Sinai Medical
Center), 5.5s, 2035 300 295,533
- -----------------------------------------------------------------------------------------------------
Mississippi Hospital Equipment & Facilities Authority
Rev. (Rush Medical Foundation), CONNIE LEE, 6.7s, 2018 1,000 1,012,730
- -----------------------------------------------------------------------------------------------------
Mount Lebanon, PA, Hospital Authority Rev. (St. Clair
Memorial Hospital), 5.625s, 2032 375 375,698
- -----------------------------------------------------------------------------------------------------
Nassau County, NY, Industrial Development Civic (North
Shore Health System), 5.875s, 2011 460 513,493
- -----------------------------------------------------------------------------------------------------
New Hampshire Health & Educational Facilities Authority
Rev. (Covenant Health), 6.5s, 2017 960 1,067,798
- -----------------------------------------------------------------------------------------------------
New Hampshire Health & Educational Facilities Authority
Rev. (Exeter Hospital), 6s, 2024 500 525,945
- -----------------------------------------------------------------------------------------------------
New Jersey Health Care Facilities (Palisades Medical
Center), 6.5s, 2021 500 512,850
- -----------------------------------------------------------------------------------------------------
North Texas Health Facilities Development Corp. (United
Regional Health Care Systems, Inc.), 6s, 2023 1,000 1,047,730
- -----------------------------------------------------------------------------------------------------
Ohio County, WV, County Commission Health System Rev.
(Ohio Valley Medical Center), 5.75s, 2013 900 783,063
- -----------------------------------------------------------------------------------------------------
Oklahoma Development Finance Authority Rev. (Comanche
County Hospital), 6s, 2014 600 621,054
- -----------------------------------------------------------------------------------------------------
Palm Beach County, FL, Health Facilities Rev., Refunding
Hospital (Boca Raton Community Hospital), 5.5s, 2021 500 513,205
- -----------------------------------------------------------------------------------------------------
Rhode Island Health & Education Building Rev., Hospital
Financing (Lifespan Obligation Group), 6.5s, 2032 1,500 1,531,575
- -----------------------------------------------------------------------------------------------------
Richardson, TX, Hospital Authority Rev. (Baylor-
Richardson), 5.25s, 2013 600 614,292
- -----------------------------------------------------------------------------------------------------
Rio Grande, TX, Health Facilities Development Corp.
(Golden Palms), MBIA, 6.4s, 2015 2,800 2,834,048
- -----------------------------------------------------------------------------------------------------
Royston, GA, Hospital Authority Rev. (Ty Cobb Healthcare
Systems, Inc.), 6.5s, 2027 290 267,841
- -----------------------------------------------------------------------------------------------------
Shelby County, TN, Health Educational Hospital (Methodist
Healthcare), 6s, 2016 800 862,688
- -----------------------------------------------------------------------------------------------------
South Carolina Jobs Economic, Refunding, "A" (Palmetto
Health Alliance), 6.25s, 2031 500 506,765
- -----------------------------------------------------------------------------------------------------
State of Michigan Hospital Finance Authority Rev.
(Memorial Healthcare Center), 5.75s, 2015 800 815,096
- -----------------------------------------------------------------------------------------------------
Steubenville, OH, Hospital Rev. (Trinity Health), 6.375s, 2020 300 318,975
- -----------------------------------------------------------------------------------------------------
Stillwater, OK, Medical Center Authority (Stillwater
Medical Center), 6.5s, 2019 1,000 1,023,830
- -----------------------------------------------------------------------------------------------------
Suffolk County, NY (Huntington Hospital), 5.875s, 2032 1,000 1,013,960
- -----------------------------------------------------------------------------------------------------
Suffolk County, NY, Industrial Development Agency
(Southampton Hospital), 7.25s, 2020 750 729,870
- -----------------------------------------------------------------------------------------------------
Suffolk County, NY, Industrial Development Agency
(Southampton Hospital), 7.625s, 2030 250 248,347
- -----------------------------------------------------------------------------------------------------
Tallahassee, FL, Health Facilities Rev. (Tallahassee
Memorial Healthcare), 6.25s, 2020 1,000 994,270
- -----------------------------------------------------------------------------------------------------
Tom Green County, TX, Health Facilities (Shannon Health
System Project), 6.75s, 2021 400 419,392
- -----------------------------------------------------------------------------------------------------
Upper Illinois River Valley Development (Morris
Hospital), 6.625s, 2031 500 530,030
- -----------------------------------------------------------------------------------------------------
Valley, AL, Special Care Facilities Financing (Lanier
Memorial Hospital), 5.5s, 2007 500 500,355
- -----------------------------------------------------------------------------------------------------
Wapello County, IA, Hospital Rev. (Ottumwa Regional
Health Center), 6.375s, 2031 750 775,890
- -----------------------------------------------------------------------------------------------------
Weirton, WV, Municipal Hospital Building Commission
(Weirton Hospital Medical Center), 6.375s, 2031 500 479,450
- -----------------------------------------------------------------------------------------------------
West Plains, MO, Industrial Development Authority,
Hospital Rev. (Ozarks Medical Center), 6.75s, 2024 195 199,466
- -----------------------------------------------------------------------------------------------------
West Shore, PA, Hospital Authority (Holy Spirit
Hospital), 6.25s, 2032 1,000 1,023,920
- -----------------------------------------------------------------------------------------------------
Wichita, KS, Hospital Rev. (Via Christi), 6.25s, 2019 1,500 1,667,205
- -----------------------------------------------------------------------------------------------------
Wisconsin Health & Educational Facilities (Aurora Health
Care), 6.875s, 2030 750 791,317
- -----------------------------------------------------------------------------------------------------
Wisconsin Health & Educational Facilities (Wheaton
Franciscan Services), 6.25s, 2022 1,000 1,076,550
- -----------------------------------------------------------------------------------------------------
Wisconsin Health & Educational Facilities Rev. (Agnesian
Healthcare, Inc.), 6s, 2017 325 344,172
- -----------------------------------------------------------------------------------------------------
Yonkers, NY, Industrial Development Agency, Civic
Facilities Rev. (St. John's Riverside Hospital), 6.8s, 2016 460 480,999
- -----------------------------------------------------------------------------------------------------
$62,764,249
- -----------------------------------------------------------------------------------------------------
Health Care Revenue - Long Term Care - 2.2%
- -----------------------------------------------------------------------------------------------------
Bell County, TX, Health Facilities Development Corp.
(Advanced Living Technology), 7.75s, 2006 $115 $107,233
- -----------------------------------------------------------------------------------------------------
Bell County, TX, Health Facilities Development Corp.
(Advanced Living Technology), 8.125s, 2016 505 414,933
- -----------------------------------------------------------------------------------------------------
Bell County, TX, Health Facilities Development Corp.
(Advanced Living Technology), 8.5s, 2026 1,130 891,457
- -----------------------------------------------------------------------------------------------------
Colorado Health Facilities Authority Rev. (Evangelical
Lutheran), 6.9s, 2025 500 545,520
- -----------------------------------------------------------------------------------------------------
Cumberland County, PA (Wesley Affiliated Services),
7.25s, 2035 375 376,155
- -----------------------------------------------------------------------------------------------------
Goldsboro, NC, Housing Authority Rev. (North Carolina
Housing Foundation, Inc.), 7.25s, 2029 975 831,314
- -----------------------------------------------------------------------------------------------------
Indiana Health Facilities Financing Authority Rev.
(Hoosier Care), 7.125s, 2034 830 681,812
- -----------------------------------------------------------------------------------------------------
Iowa Finance Authority, Health Care Facilities Rev. (Care
Initiatives), 9.25s, 2025 495 588,902
- -----------------------------------------------------------------------------------------------------
Jefferson County, KY, Health Care Authority Rev. (Beverly
Enterprises, Inc.), 5.875s, 2007 160 157,171
- -----------------------------------------------------------------------------------------------------
Luzerne County, PA, Industrial Development Authority
(Beverly Enterprises, Inc.), 6.75s, 2008 300 300,882
- -----------------------------------------------------------------------------------------------------
Millbrae, CA, Residential Facility (Magnolia of
Millbrae), 7.375s, 2027 980 1,017,426
- -----------------------------------------------------------------------------------------------------
New Hampshire Business Finance Authority, Health Care
Facilities Rev. (Metropolitan Health Foundation, Inc.),
6.55s, 2028 960 888,701
- -----------------------------------------------------------------------------------------------------
Tennessee Veterans Home Board Rev. (Humboldt), 6.75s, 2021 1,000 1,144,450
- -----------------------------------------------------------------------------------------------------
$7,945,956
- -----------------------------------------------------------------------------------------------------
Human Services - 0.4%
- -----------------------------------------------------------------------------------------------------
Nassau County, NY, Industrial Development Civic (Special
Needs Facilities), 6.1s, 2012 $295 $301,862
- -----------------------------------------------------------------------------------------------------
Orange County, FL, Health Facilities Authority Rev.
(First Mortgage Healthcare Facilities GF/Orlando), 9s, 2031 1,000 1,003,040
- -----------------------------------------------------------------------------------------------------
$1,304,902
- -----------------------------------------------------------------------------------------------------
Industrial Revenue - Airlines - 0.5%
- -----------------------------------------------------------------------------------------------------
Cleveland, OH, Airport Special Rev. (Continental
Airlines, Inc.), 5.7s, 2019 $1,000 $758,070
- -----------------------------------------------------------------------------------------------------
Los Angeles, CA, Regional Airport Lease Rev. (AMR),
7s, 2012 300 276,510
- -----------------------------------------------------------------------------------------------------
Tulsa, OK, Municipal Airport Trust Rev., "B" (AMR),
5.65s, 2035 1,000 789,020
- -----------------------------------------------------------------------------------------------------
$1,823,600
- -----------------------------------------------------------------------------------------------------
Industrial Revenue - Environmental Services - 1.5%
- -----------------------------------------------------------------------------------------------------
Carbon County, UT, Solid Waste Disposal Rev. (Laidlaw
Environmental), 7.45s, 2017 $2,500 $2,544,650
- -----------------------------------------------------------------------------------------------------
Charles City County, VA, Industrial Development
Authority, Solid Waste Disposal Facilities Rev. (Waste
Management, Inc.), 6.25s, 2027 500 536,920
- -----------------------------------------------------------------------------------------------------
Gloucester County, NJ, Improvement Authority, Solid Waste
Resources Recovery Rev. (Waste Management, Inc.),
6.85s, 2029 150 169,172
- -----------------------------------------------------------------------------------------------------
Henrico County, VA, Industrial Development Authority Rev.
(Browning-Ferris), 5.3s, 2011 1,000 1,010,900
- -----------------------------------------------------------------------------------------------------
Massachusetts Development Finance Agency Rev., Resource
Recovery Rev. (Waste Management, Inc.), 6.9s, 2029 300 332,145
- -----------------------------------------------------------------------------------------------------
Nevada Department of Business & Industry Rev. (Republic
Services, Inc.), 5.625s, 2026 450 463,153
- -----------------------------------------------------------------------------------------------------
New York Environmental Facilities Corp., Solid Waste
Disposal Rev. (Waste Management), 4s, 2012 1,000 1,005,600
- -----------------------------------------------------------------------------------------------------
$5,525,620
- -----------------------------------------------------------------------------------------------------
Industrial Revenue - Other - 2.7%
- -----------------------------------------------------------------------------------------------------
Bucks County, PA, Industrial Development Authority (USX
Corp.), 5.4s, 2017 $500 $536,985
- -----------------------------------------------------------------------------------------------------
Gulf Coast, Industrial Development Authority (Valero
Energy Corp.), 5.6s, 2031 500 477,565
- -----------------------------------------------------------------------------------------------------
Hardeman County, TN Correctional Facilities Corp.
(Corrections Corp. of America), 7.375s, 2017 500 511,845
- -----------------------------------------------------------------------------------------------------
Massachusetts Development Finance Agency Rev.
(Springfield Resources Recovery), 5.625s, 2019 2,895 3,009,005
- -----------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency Rev. (Welch
Foods, Inc.), 5.6s, 2017 1,300 1,368,367
- -----------------------------------------------------------------------------------------------------
Pennsylvania Economic Development Financing Authority
Rev. (Amtrak), 6.125s, 2021 550 548,295
- -----------------------------------------------------------------------------------------------------
Port of New Orleans, LA (Avondale Industries), 8.5s, 2014 1,845 1,979,261
- -----------------------------------------------------------------------------------------------------
State of Ohio, Air Quality Development Authority (USX),
5s, 2015 500 519,980
- -----------------------------------------------------------------------------------------------------
Tooele County, UT (Union Pacific), 5.7s, 2026 980 992,093
- -----------------------------------------------------------------------------------------------------
$9,943,396
- -----------------------------------------------------------------------------------------------------
Industrial Revenue - Paper - 2.0%
- -----------------------------------------------------------------------------------------------------
Beauregard Parish, LA, Rev. (Boise Cascade Corp.), 6.8s, 2027 $500 $506,750
- -----------------------------------------------------------------------------------------------------
Butler, AL, Industrial Development Board, Solid Waste
Rev. (James River Corp.), 8s, 2028 850 852,728
- -----------------------------------------------------------------------------------------------------
Delta County, MI, Economic Development Corp. Rev. (Mead
Westvaco Escanaba), "A", 6.25s, 2027 900 925,290
- -----------------------------------------------------------------------------------------------------
Mobile, AL, Industrial Development Board Improvement
Rev., "B" (International Paper Co.), 6.45s, 2019 2,000 2,095,080
- -----------------------------------------------------------------------------------------------------
Navajo County, AZ, Industrial Development Authority
(Stone Container Corp.), 7.4s, 2026 1,500 1,524,810
- -----------------------------------------------------------------------------------------------------
Navajo County, AZ, Industrial Development Authority
(Stone Container Corp.), 7.2s, 2027 500 505,615
- -----------------------------------------------------------------------------------------------------
Onondaga County, NY, Industrial Development Authority
Rev., Solid Waste Disposal Rev. (Solvay Paperboard LLC),
6.8s, 2014 1,000 1,053,630
- -----------------------------------------------------------------------------------------------------
$7,463,903
- -----------------------------------------------------------------------------------------------------
Industrial Revenue - Metals - 0.0%
- -----------------------------------------------------------------------------------------------------
Burns Habor, IN, Solid Waste Disposal Facilities Rev.
(Bethlehem Steel), 8s, 2024** $3,000 $180,000
- -----------------------------------------------------------------------------------------------------
Miscellaneous Revenue - Entertainment & Tourism - 0.6%
- -----------------------------------------------------------------------------------------------------
Capital Trust Agency of Florida Rev. (Seminole Tribe
Convention), 10s, 2033 $1,000 $1,177,930
- -----------------------------------------------------------------------------------------------------
Nevada Department of Business & Industry Rev. (Las Vegas
Monorail), 7.375s, 2040 1,000 945,090
- -----------------------------------------------------------------------------------------------------
$2,123,020
- -----------------------------------------------------------------------------------------------------
Miscellaneous Revenue - Other - 0.3%
- -----------------------------------------------------------------------------------------------------
Austin, TX, Convention Center (Convention Enterprises,
Inc.), 6.6s, 2021 $300 $314,346
- -----------------------------------------------------------------------------------------------------
Austin, TX, Convention Center (Convention Enterprises,
Inc.), 6.7s, 2028 400 417,616
- -----------------------------------------------------------------------------------------------------
Rockbridge County, VA, Industrial Authority Rev.
(Virginia Horse Center), 6.85s, 2021 500 506,805
- -----------------------------------------------------------------------------------------------------
$1,238,767
- -----------------------------------------------------------------------------------------------------
Multi-Family Housing Revenue - 2.3%
- -----------------------------------------------------------------------------------------------------
Austin, TX, Housing Finance Corp. (Woodland Heights
Apartments), 7.25s, 2027** $1,000 $972,300
- -----------------------------------------------------------------------------------------------------
Austin, TX, Housing Finance Corp. (Woodland Heights
Apartments), 7.25s, 2027** 585 233,631
- -----------------------------------------------------------------------------------------------------
Austin, TX, Housing Finance Corp. (Woodland Heights
Apartments), 10s, 2027** 380 38,000
- -----------------------------------------------------------------------------------------------------
California Statewide Community Development Authority Rev.
(Irvine Apartment Community), 5.25s, 2025 1,000 1,062,950
- -----------------------------------------------------------------------------------------------------
Charter Mac Equity Issuer Trust, 6.625s, 2009## 2,000 2,156,140
- -----------------------------------------------------------------------------------------------------
Eaglebend, CO, Affordable Housing Corp., 6.2s, 2012 1,000 1,000,360
- -----------------------------------------------------------------------------------------------------
Eden Prairie, MN, Multi-Family Housing, GNMA, 6s, 2021 200 219,242
- -----------------------------------------------------------------------------------------------------
Panhandle Texas Regional Housing Finance Rev. (Amarillo
Affordable Housing), 6.625s, 2020 330 347,899
- -----------------------------------------------------------------------------------------------------
Panhandle Texas Regional Housing Finance Rev. (Amarillo
Affordable Housing), 6.75s, 2031 1,670 1,748,741
- -----------------------------------------------------------------------------------------------------
Ridgeland, MS, Urban Renewal, Multi-Family Housing Rev.
(Northbrook I & III Apartments), 6.15s, 2019** 1,250 600,038
- -----------------------------------------------------------------------------------------------------
$8,379,301
- -----------------------------------------------------------------------------------------------------
Parking - 0.1%
- -----------------------------------------------------------------------------------------------------
Rail Connections, Inc., MA, Rev., 0s, 2016 $100 $55,731
- -----------------------------------------------------------------------------------------------------
Rail Connections, Inc., MA, Rev., 0s, 2017 210 109,433
- -----------------------------------------------------------------------------------------------------
Rail Connections, Inc., MA, Rev., 0s, 2018 300 146,418
- -----------------------------------------------------------------------------------------------------
$311,582
- -----------------------------------------------------------------------------------------------------
Sales and Excise Tax Revenue - 1.8%
- -----------------------------------------------------------------------------------------------------
Austin, TX, Town Community Events Center Venue, FGIC, 6s, 2019 $1,015 $1,166,184
- -----------------------------------------------------------------------------------------------------
Metropolitan Pier & Exposition Authority, IL, MBIA, 0s, 2016 8,400 4,739,280
- -----------------------------------------------------------------------------------------------------
Midwest City, OK, Municipal Authority Capital, FSA,
5.125s, 2018 825 883,567
- -----------------------------------------------------------------------------------------------------
$6,789,031
- -----------------------------------------------------------------------------------------------------
Single Family Housing Revenue - Local - 2.6%
- -----------------------------------------------------------------------------------------------------
Adams County, CO, Single Family Mortgage Rev.,
8.875s, 2011 $2,510 $3,506,194
- -----------------------------------------------------------------------------------------------------
Brevard County, FL, Housing Finance Authority, "B", GNMA,
6.5s, 2022 490 539,240
- -----------------------------------------------------------------------------------------------------
California Rural Home Mortgage Finance Authority Rev.,
GNMA, 6.55s, 2030 330 351,387
- -----------------------------------------------------------------------------------------------------
Chicago, IL, Single Family Mortgage Rev., GNMA, 7.05s, 2030 55 57,625
- -----------------------------------------------------------------------------------------------------
Cook County, IL, Single Family Mortgage Rev., "A", 0s, 2015 750 208,553
- -----------------------------------------------------------------------------------------------------
De Kalb, IL, Single Family Mortgage Rev., GNMA, 7.45s, 2009 5 5,011
- -----------------------------------------------------------------------------------------------------
Jefferson Parish, LA, Home Mortgage Authority Rev., GNMA,
6.625s, 2023 555 617,987
- -----------------------------------------------------------------------------------------------------
Jefferson Parish, LA, Home Mortgage Authority Rev., GNMA,
6.75s, 2030 220 233,350
- -----------------------------------------------------------------------------------------------------
Lee County, FL, Housing Finance Authority Rev., GNMA,
7s, 2031 65 67,746
- -----------------------------------------------------------------------------------------------------
Maricopa County, AZ Single Family Mortgage Rev., "B",
GNMA, 6.2s, 2034 490 541,984
- -----------------------------------------------------------------------------------------------------
Pima County, AZ, Industrial Development Authority, GNMA,
7.05s, 2030 465 483,809
- -----------------------------------------------------------------------------------------------------
San Bernardino County, CA, Single Family Mortgage Rev.,
GNMA, 7.375s, 2020 50 52,130
- -----------------------------------------------------------------------------------------------------
Sedgwick & Shawnee Counties, KS, Single Family Housing
Rev., GNMA, 6.875s, 2026 495 533,145
- -----------------------------------------------------------------------------------------------------
Sedgwick & Shawnee Counties, KS, Single Family Housing
Rev., GNMA, 3.25s, 2027 415 447,254
- -----------------------------------------------------------------------------------------------------
Sedgwick & Shawnee Counties, KS, Single Family Housing
Rev., GNMA, 6.45s, 2029 1,260 1,373,513
- -----------------------------------------------------------------------------------------------------
Sedgwick & Shawnee Counties, KS, Single Family Housing
Rev., GNMA, 6.45s, 2033 570 620,496
- -----------------------------------------------------------------------------------------------------
$9,639,424
- -----------------------------------------------------------------------------------------------------
Single Family Housing Revenue - State - 3.5%
- -----------------------------------------------------------------------------------------------------
California Housing Finance Agency Rev., Home Mortgage,
MBIA, 0s, 2027 $570 $155,639
- -----------------------------------------------------------------------------------------------------
California Housing Finance Agency Rev., Home Mortgage,
MBIA, 0s, 2028 2,945 836,409
- -----------------------------------------------------------------------------------------------------
Colorado Housing & Finance Authority Rev., 7.15s, 2014 32 32,977
- -----------------------------------------------------------------------------------------------------
Colorado Housing & Finance Authority Rev., 7.45s, 2016 95 99,006
- -----------------------------------------------------------------------------------------------------
Colorado Housing & Finance Authority Rev., 6.75s, 2021 110 114,964
- -----------------------------------------------------------------------------------------------------
Colorado Housing & Finance Authority Rev., 5.9s, 2023 335 356,852
- -----------------------------------------------------------------------------------------------------
Colorado Housing & Finance Authority Rev., 6.1s, 2023 185 192,263
- -----------------------------------------------------------------------------------------------------
Colorado Housing & Finance Authority Rev., 7.4s, 2027 95 96,005
- -----------------------------------------------------------------------------------------------------
Colorado Housing & Finance Authority Rev., 6.875s, 2028 340 351,615
- -----------------------------------------------------------------------------------------------------
Colorado Housing & Finance Authority Rev., 6.8s, 2030 225 235,136
- -----------------------------------------------------------------------------------------------------
Colorado Housing & Finance Authority Rev., 6.6s, 2032 350 379,379
- -----------------------------------------------------------------------------------------------------
Colorado Housing & Finance Authority Rev., 6.375s, 2033 200 212,924
- -----------------------------------------------------------------------------------------------------
Colorado Housing & Finance Authority Rev., 6.55s, 2033 240 259,123
- -----------------------------------------------------------------------------------------------------
Louisiana Housing Finance Agency, GNMA, 7.55s, 2031 255 276,986
- -----------------------------------------------------------------------------------------------------
Louisiana Housing Finance Authority, Mortgage Rev., GNMA,
6.4s, 2032 340 359,244
- -----------------------------------------------------------------------------------------------------
Minnesota Housing Finance Agency, Residential Housing
Finance "B", 4.8s, 2023 295 305,295
- -----------------------------------------------------------------------------------------------------
Missouri State Housing Development Commission, 6.35s, 2032 495 525,952
- -----------------------------------------------------------------------------------------------------
Missouri State Housing Development Commission, Mortgage
Rev., GNMA, 6.7s, 2030 595 629,695
- -----------------------------------------------------------------------------------------------------
Missouri State Housing Development Commission, Mortgage
Rev., GNMA, 6.85s, 2032 425 474,997
- -----------------------------------------------------------------------------------------------------
Missouri State Housing Development Commission, Mortgage
Rev. (Home Loan Program), GNMA, 6.75s, 2034 265 286,682
- -----------------------------------------------------------------------------------------------------
Nebraska Investment Finance Authority, GNMA, 5.6s, 2020 135 140,077
- -----------------------------------------------------------------------------------------------------
New Hampshire Housing Finance Authority, 5.875s, 2030 290 306,153
- -----------------------------------------------------------------------------------------------------
New Hampshire Housing Finance Authority, 6.3s, 2031 320 346,896
- -----------------------------------------------------------------------------------------------------
New Mexico Mortgage Finance Authority, 7.1s, 2030 225 245,243
- -----------------------------------------------------------------------------------------------------
New Mexico Mortgage Finance Authority, GNMA, 6.25s, 2032 725 770,371
- -----------------------------------------------------------------------------------------------------
New Mexico Mortgage Finance Authority, GNMA, 6.35s, 2033 335 361,224
- -----------------------------------------------------------------------------------------------------
North Dakota State Housing Finance Agency., 5s, 2033 565 573,673
- -----------------------------------------------------------------------------------------------------
Oklahoma Housing Finance Agency, 6.65s, 2029 1,720 1,853,713
- -----------------------------------------------------------------------------------------------------
Phoenix, AZ, Single Family Mortgage Rev., GNMA, 6.1s, 2028 240 255,785
- -----------------------------------------------------------------------------------------------------
Texas Housing & Community Affairs, Residential Mortgage
Rev., GNMA, 7.1s, 2021 1,150 1,226,567
- -----------------------------------------------------------------------------------------------------
Vermont Housing Finance Agency, Single Family, FSA,
4.95s, 2032 435 456,311
- -----------------------------------------------------------------------------------------------------
West Virginia Housing Development Fund Rev., Housing
Finance, 0s, 2037 1,330 212,840
- -----------------------------------------------------------------------------------------------------
$12,929,996
- -----------------------------------------------------------------------------------------------------
Solid Waste Revenue - 1.2%
- -----------------------------------------------------------------------------------------------------
Delaware County, PA, Industrial Development Authority
Rev., "A" (American Ref-fuel Co.), 6.1s, 2005 $875 $897,453
- -----------------------------------------------------------------------------------------------------
Delaware County, PA, Industrial Development Authority
Rev., "A" (American Ref-fuel Co.), 6.2s, 2019 500 514,855
- -----------------------------------------------------------------------------------------------------
Hudson County, NJ, Solid Waste System Rev., 5.9s, 2015 900 869,652
- -----------------------------------------------------------------------------------------------------
Massachusetts Development Finance Agency Rev. (Ogden
Haverill Associates), 6.7s, 2014 700 737,751
- -----------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency Rev. (Ogden
Haverill Associates), 5.6s, 2019 1,000 944,510
- -----------------------------------------------------------------------------------------------------
$4,501,141
- -----------------------------------------------------------------------------------------------------
State and Local Appropriation - 6.1%
- -----------------------------------------------------------------------------------------------------
Alabama Building Renovation Authority, AMBAC, 6s, 2018 $760 $884,511
- -----------------------------------------------------------------------------------------------------
Alabama State Public School & College, Capital
Improvement, "D", 6s, 2015 2,850 3,341,283
- -----------------------------------------------------------------------------------------------------
Chicago, IL, Public Building Commission Rev., RITES,
8.064s, 2016(++)+ 1,500 1,919,910
- -----------------------------------------------------------------------------------------------------
Chicago, IL, Public Building Commission Rev., RITES,
8.064s, 2017(++)+ 1,250 1,585,000
- -----------------------------------------------------------------------------------------------------
Golden State Tobacco Securization Corp., "B", 5.375s, 2028 1,500 1,472,865
- -----------------------------------------------------------------------------------------------------
Houston, TX, 6.3s, 2020 1,000 1,108,470
- -----------------------------------------------------------------------------------------------------
Massachusetts State Development Finance Agency (Visual &
Performing Arts), 6s, 2021 1,000 1,194,940
- -----------------------------------------------------------------------------------------------------
Michigan State Certificates Participation, AMBAC, 5.5s, 2020 1,250 1,367,763
- -----------------------------------------------------------------------------------------------------
New Mexico Finance Authority Rev., Court Facilities Fee
Rev., MBIA, 5.5s, 2020 475 518,562
- -----------------------------------------------------------------------------------------------------
New York Dormitory Authority Rev., State University
Facilities, "C", FSA, 5.75s, 2017 1,250 1,487,962
- -----------------------------------------------------------------------------------------------------
New York State Urban Development Corp., Correctional
Facilities Service Contract C, AMBAC, 5.875s, 2019 1,000 1,180,150
- -----------------------------------------------------------------------------------------------------
Regional Transport Authority, IL, FSA, 5.75s, 2017 5,000 5,913,300
- -----------------------------------------------------------------------------------------------------
Stafford, TX, Economic Development Corp., FGIC, 6s, 2015 525 634,148
- -----------------------------------------------------------------------------------------------------
$22,608,864
- -----------------------------------------------------------------------------------------------------
Student Loan Revenue - 0.8%
- -----------------------------------------------------------------------------------------------------
Access to Loans for Learning, California Student Loan
Rev., 7.95s, 2030 $650 $674,791
- -----------------------------------------------------------------------------------------------------
Arizona Student Loan Acquisition Authority Rev., 5.8s, 2016 675 723,809
- -----------------------------------------------------------------------------------------------------
Arizona Student Loan Acquisition Authority Rev., 5.85s, 2017 700 748,216
- -----------------------------------------------------------------------------------------------------
Massachusetts Educational Financing Authority Education,
Refunding Issue G, "A", MBIA, 6.1s, 2018 910 974,383
- -----------------------------------------------------------------------------------------------------
$3,121,199
- -----------------------------------------------------------------------------------------------------
Tax Assesment - 1.8%
- -----------------------------------------------------------------------------------------------------
Broadview, IL, Tax Increment Rev., 5.25s, 2012 $1,000 $1,036,560
- -----------------------------------------------------------------------------------------------------
Capital Region Community Development District, FL,
5.95s, 2006 205 207,423
- -----------------------------------------------------------------------------------------------------
Greyhawk Landing Community Development, "B", 6.25s, 2009 460 467,038
- -----------------------------------------------------------------------------------------------------
Katy, TX, Development Authority Rev., 5.8s, 2011 970 996,685
- -----------------------------------------------------------------------------------------------------
Katy, TX, Development Authority Rev., 6s, 2018 1,500 1,520,520
- -----------------------------------------------------------------------------------------------------
Panther Trace, FL, Community Development District,
6.5s, 2009 635 642,836
- -----------------------------------------------------------------------------------------------------
Renaissance Community Development, "B", 6.25s, 2008 695 709,838
- -----------------------------------------------------------------------------------------------------
Taylor, MI, Tax Increment Finance, FSA, 5.5s, 2015 1,000 1,127,290
- -----------------------------------------------------------------------------------------------------
$6,708,190
- -----------------------------------------------------------------------------------------------------
Tax - Other - 0.7%
- -----------------------------------------------------------------------------------------------------
New York, NY, Transitional, Future Tax Secured, "A",
6s, 2017 $2,000 $2,411,580
- -----------------------------------------------------------------------------------------------------
Tobacco - 1.0%
- -----------------------------------------------------------------------------------------------------
Badger Tobacco WI, Asset Securitization Corp.,
6.125s, 2027 $1,000 $903,500
- -----------------------------------------------------------------------------------------------------
District of Columbia, Tobacco Settlement, 6.25s, 2024 435 399,091
- -----------------------------------------------------------------------------------------------------
Guam Economic Development Authority, 5s, 2022 220 212,973
- -----------------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corp. IA, "B", 5.3s, 2025 750 590,392
- -----------------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corp. LA, 5.5s, 2030 350 282,975
- -----------------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corp. NJ, 5.75s, 2032 600 513,498
- -----------------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corp. RI, 6s, 2023 500 446,355
- -----------------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corp. SC, 6.375s, 2028 500 431,580
- -----------------------------------------------------------------------------------------------------
$3,780,364
- -----------------------------------------------------------------------------------------------------
Toll Roads - 2.6%
- -----------------------------------------------------------------------------------------------------
New Jersey Turnpike Authority Rev., MBIA, 6.5s, 2016 $1,450 $1,782,644
- -----------------------------------------------------------------------------------------------------
Northwest Parkway Public Highway Authority Co. Rev.,
Capital Appreciation "B", AMBAC, 0s, 2018 750 355,740
- -----------------------------------------------------------------------------------------------------
San Joaquin Hills, CA, Transportation Corridor Agency,
Toll Road Rev., 0s, 2004 3,000 2,991,960
- -----------------------------------------------------------------------------------------------------
San Joaquin Hills, CA, Transportation Corridor Agency,
Toll Road Rev., 0s, 2009 1,000 860,090
- -----------------------------------------------------------------------------------------------------
Triborough Bridge & Tunnel Authority, NY, 5.5s, 2017 3,000 3,481,860
- -----------------------------------------------------------------------------------------------------
$9,472,294
- -----------------------------------------------------------------------------------------------------
Transportation -Special Tax - 1.3%
- -----------------------------------------------------------------------------------------------------
Allegheny County, PA, Port Authority Special Rev., MBIA,
6.25s, 2017 $1,000 $1,201,350
- -----------------------------------------------------------------------------------------------------
Dallas, TX, Rapid Transit, AMBAC, 5.375s, 2016 500 551,945
- -----------------------------------------------------------------------------------------------------
Dallas, TX, Rapid Transit, AMBAC, 5.375s, 2017 500 547,910
- -----------------------------------------------------------------------------------------------------
New Jersey Economic Development Authority Rev.,
Transportation Project Sublease, "A", FSA, 6s, 2016 325 373,958
- -----------------------------------------------------------------------------------------------------
Pennsylvania State Turnpike Commission Oil, "A", AMBAC,
5.25s, 2018(+++) 1,150 1,264,988
- -----------------------------------------------------------------------------------------------------
Pennsylvania State Turnpike Commission Oil, "A", AMBAC,
5.25s, 2018 850 929,059
- -----------------------------------------------------------------------------------------------------
$4,869,210
- -----------------------------------------------------------------------------------------------------
Universities - Colleges - 4.8%
- -----------------------------------------------------------------------------------------------------
Amherst, NY, Industrial Development Agency Rev. (Daemen
College), 6s, 2021 $1,000 $1,054,900
- -----------------------------------------------------------------------------------------------------
Houston, TX, Community College Systems, MBIA, 7.875s, 2025 1,650 2,120,712
- -----------------------------------------------------------------------------------------------------
Islip, NY, Community Development Agency Rev. (New York
Institute of Technology), 7.5s, 2026 2,000 2,330,560
- -----------------------------------------------------------------------------------------------------
Massachusetts Development Finance Agency (Boston
University), XLCA, 6s, 2059 1,250 1,402,800
- -----------------------------------------------------------------------------------------------------
Massachusetts Development Finance Agency (Olin College),
XLCA, 5.25s, 2033 2,000 2,049,500
- -----------------------------------------------------------------------------------------------------
Massachusetts Development Finance Agency Rev.
(Massachusetts College of Pharmacy), 6.625s, 2020 100 108,440
- -----------------------------------------------------------------------------------------------------
Northern Illinois University Rev., Auxiliary Facilities
Systems, AMBAC, 5.875s, 2018 1,370 1,531,824
- -----------------------------------------------------------------------------------------------------
Savannah, GA, Economic Development Authority, Rev.
(College of Art & Design, Inc.), 6.5s, 2013 500 556,545
- -----------------------------------------------------------------------------------------------------
St. Joseph County, IN, Educational Facilities Rev.
(University of Notre Dame), 6.5s, 2026 1,000 1,254,540
- -----------------------------------------------------------------------------------------------------
Tulsa, OK, Industrial Authority Rev., "A" (University of
Tulsa), MBIA, 6s, 2016 1,250 1,526,950
- -----------------------------------------------------------------------------------------------------
Upland, IN, Economic Development Rev. (Taylor
University), 6s, 2018 435 484,690
- -----------------------------------------------------------------------------------------------------
Upland, IN, Economic Development Rev. (Taylor
University), 6.25s, 2023 520 561,647
- -----------------------------------------------------------------------------------------------------
Virginia College Building Authority, VA, Public Higher
Education Financing, "A", 5.75s, 2019 2,295 2,579,970
- -----------------------------------------------------------------------------------------------------
$17,563,078
- -----------------------------------------------------------------------------------------------------
Universities - Dormatories - 0.3%
- -----------------------------------------------------------------------------------------------------
Illinois Educational Facilities Authority, Educational
Advancement Fund (University Center), 6.25s, 2034 $1,000 $1,005,010
- -----------------------------------------------------------------------------------------------------
Universities - Secondary Schools - 1.6%
- -----------------------------------------------------------------------------------------------------
California Statewide Community Development Authority
(Escondido Charter High School), 7.5s, 2036 $500 $505,635
- -----------------------------------------------------------------------------------------------------
Clark County, NV, Economic Development Rev. (Alexander
Dawson School), 5.5s, 2020 1,500 1,554,690
- -----------------------------------------------------------------------------------------------------
Maine Finance Authority, Educational Rev. (Waynflete
School), 6.4s, 2019 1,000 1,082,510
- -----------------------------------------------------------------------------------------------------
Maine Finance Authority, Educational Rev. (Waynflete
School), 6.5s, 2029 1,000 1,059,840
- -----------------------------------------------------------------------------------------------------
Michigan Municipal Bond Authority Rev. (YMCA Service
Learning Academy), 7.625s, 2021 400 404,116
- -----------------------------------------------------------------------------------------------------
Michigan Municipal Bond Authority Rev. (Detroit Academy
of Arts & Sciences), 8s, 2031 300 274,854
- -----------------------------------------------------------------------------------------------------
New Hampshire Health & Education (Derryfield School),
6.5s, 2010 425 440,355
- -----------------------------------------------------------------------------------------------------
Pima County, AZ, Industrial Development Authority, 6.75s, 2031 500 500,470
- -----------------------------------------------------------------------------------------------------
$5,822,470
- -----------------------------------------------------------------------------------------------------
Utilities - Cogeneration - 1.5%
- -----------------------------------------------------------------------------------------------------
Carbon County, PA, Industrial Development Authority
(Panther Creek Partners), 6.65s, 2010 $760 $812,805
- -----------------------------------------------------------------------------------------------------
Klamath Falls, OR, Electric Rev. (Klamath Cogeneration),
6s, 2025 2,000 1,925,020
- -----------------------------------------------------------------------------------------------------
Mecklenburg County, VA, Industrial Development (UAE
Mecklenburg, LP), 6.5s, 2017 700 704,886
- -----------------------------------------------------------------------------------------------------
Pittsylvania County, VA, Industrial Development Authority
(Multi-trade Project), 7.5s, 2014 2,000 1,980,600
- -----------------------------------------------------------------------------------------------------
$5,423,311
- -----------------------------------------------------------------------------------------------------
Utilities - Investor Owned - 4.0%
- -----------------------------------------------------------------------------------------------------
Apache County, AZ, Industrial Development Authority,
Pollution Control Rev. (Tuscon Electric Power Co.),
5.875s, 2033 $1,000 $907,450
- -----------------------------------------------------------------------------------------------------
Brazos River Authority, TX, Refunding, "B" (TXU),
6.3s, 2032 250 247,703
- -----------------------------------------------------------------------------------------------------
California Pollution Control Financing Authority,
Pollution Control Rev. (Pacific Gas & Electric Co.),
MBIA, 5.35s, 2016 1,600 1,721,360
- -----------------------------------------------------------------------------------------------------
California Pollution Control Financing Authority,
Pollution Control Rev. (Pacific Gas & Electric Co.),
5.85s, 2023 350 340,602
- -----------------------------------------------------------------------------------------------------
California Pollution Control Financing Authority,
Pollution Control Rev. (Southern California Edison Co.),
6.4s, 2024 500 500,165
- -----------------------------------------------------------------------------------------------------
Connecticut Development Authority, Pollution Control Rev.
(Connecticut Light & Power Co.), 5.85s, 2028 1,000 1,048,920
- -----------------------------------------------------------------------------------------------------
Farmington, NM, Pollution Control Rev. (Public Service
Co. of NM), 5.8s, 2022 500 494,830
- -----------------------------------------------------------------------------------------------------
Farmington, NM, Pollution Control Rev. (Public Service
Co. of NM), 6.375s, 2022 1,000 1,024,690
- -----------------------------------------------------------------------------------------------------
Farmington, NM, Pollution Control Rev. (San Juan Public
Services Co.), 6.3s, 2016 565 577,492
- -----------------------------------------------------------------------------------------------------
Matagorda County, TX (Central Power & Light Co.),
4.55s, 2029 1,000 1,040,740
- -----------------------------------------------------------------------------------------------------
Matagorda County, TX (Reliant Energy), 5.95s, 2030 750 690,877
- -----------------------------------------------------------------------------------------------------
New Hampshire Industrial Development Authority, Pollution
Control (CT Light and Power), 5.9s, 2016 500 515,975
- -----------------------------------------------------------------------------------------------------
New Hampshire Pollution Control Rev. (United Illuminating
Co.), 3.75s, 2027 800 805,056
- -----------------------------------------------------------------------------------------------------
Pima County, AZ, Industrial Development Authority (Tucson
Electric Power Co.), 6.1s, 2025 2,000 1,866,700
- -----------------------------------------------------------------------------------------------------
Port Morrow, OR, Pollution Control Rev. (Portland General
Electric), 5.2s, 2033 350 360,035
- -----------------------------------------------------------------------------------------------------
Sabine River Authority, TX, Pollution Control Rev.,
Refunding (TXU Electric Co.), "A", 5.5s, 2022 500 519,560
- -----------------------------------------------------------------------------------------------------
West Feliciana Parish, LA, Pollution Control Rev. (Energy
Gulf States), 6.6s, 2028 1,665 1,692,090
- -----------------------------------------------------------------------------------------------------
West Feliciana Parish, LA, Pollution Control Rev. (Gulf
States Utilities Co.), 7.7s, 2014 450 457,956
- -----------------------------------------------------------------------------------------------------
$14,812,201
- -----------------------------------------------------------------------------------------------------
Utilities - Municipal Owned - 6.2%
- -----------------------------------------------------------------------------------------------------
Austin, TX, Utility Systems Rev., AMBAC, 6.75s, 2011 $1,500 $1,867,545
- -----------------------------------------------------------------------------------------------------
California State, Department of Water Resources Power,
"A", 5.125s, 2018 750 782,213
- -----------------------------------------------------------------------------------------------------
Georgia Municipal Electric Power Authority Rev., MBIA,
6.375s, 2016 2,000 2,486,700
- -----------------------------------------------------------------------------------------------------
Georgia Municipal Electric Power Authority Rev., MBIA,
6.5s, 2020 7,350 9,276,214
- -----------------------------------------------------------------------------------------------------
Intermountain Power Agency, UT, MBIA, 5s, 2019 2,050 2,136,654
- -----------------------------------------------------------------------------------------------------
North Carolina Eastern Municipal Power Agency, MBIA,
7s, 2007 3,250 3,780,172
- -----------------------------------------------------------------------------------------------------
North Carolina Municipal Power Agency, MBIA,
9.259s, 2019(++)+ 1,500 1,730,550
- -----------------------------------------------------------------------------------------------------
North Carolina Municipal Power Agency, Catawba Electric
Rev., 6.375s, 2013 750 842,257
- -----------------------------------------------------------------------------------------------------
$22,902,305
- -----------------------------------------------------------------------------------------------------
Water and Sewer Utility Revenue - 4.3%
- -----------------------------------------------------------------------------------------------------
Atlanta, GA, Water & Wastewater Rev., RITES, FGIC,
9.639s, 2016(++)+ $1,000 $1,345,280
- -----------------------------------------------------------------------------------------------------
Forsyth County, GA, Water & Sewage Authority, 6.25s, 2020 1,170 1,417,946
- -----------------------------------------------------------------------------------------------------
Massachusetts Water Resources Authority, 6.5s, 2019 5,965 7,368,923
- -----------------------------------------------------------------------------------------------------
New York State Environmental Facilities, 5s, 2016(+++) 570 623,586
- -----------------------------------------------------------------------------------------------------
New York State Environmental Facilities, 5s, 2016 430 462,568
- -----------------------------------------------------------------------------------------------------
Pittsburgh, PA, Water & Sewer Authority Rev., FGIC, 0s, 2017 2,300 1,227,165
- -----------------------------------------------------------------------------------------------------
Pittsburgh, PA, Water & Sewer Authority Rev., FGIC, 0s, 2018 2,300 1,154,347
- -----------------------------------------------------------------------------------------------------
Pittsburgh, PA, Water & Sewer Systems Rev., Subordinated,
"C", FSA, 5.25s, 2022 2,000 2,084,460
- -----------------------------------------------------------------------------------------------------
$15,684,275
- -----------------------------------------------------------------------------------------------------
Total Municipal Bonds (Identified Cost, $338,422,587) $363,882,538
- -----------------------------------------------------------------------------------------------------
Floating Rate Demand Notes - 0.4%
- -----------------------------------------------------------------------------------------------------
Bay Area Toll Authority, due 10/02/03 $1,100 $1,100,000
- -----------------------------------------------------------------------------------------------------
New York City, NY, due 10/01/03 200 200,000
- -----------------------------------------------------------------------------------------------------
Total Floating Rate Demand Notes (Identified Cost, $1,300,000) $1,300,000
- -----------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $339,722,587) $365,182,538
- -----------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 0.9% 3,447,152
- -----------------------------------------------------------------------------------------------------
Net assets - 100.0% $368,629,690
- -----------------------------------------------------------------------------------------------------
(++) Inverse floating rate security.
(+++) Refunded Bond.
+ Restricted security.
** Non-income producing security in default.
## SEC Rule 144A Restriction.
The following abbreviations for insurers and inverse floaters are used in the Portfolio of Investments
and are defined as such:
Insurers: Inverse Floaters:
AMBAC - AMBAC Indemnity Corp. RITES - Residual Interest Tax-Exempt Security
CONNIE LEE - Connie Lee Insurance Co. ROLS - Residual Options Longs
FGIC - Financial Guaranty Insurance Co.
FSA - Financial Security Assurance, Inc.
GNMA - Government National Mortgage Assn.
MBIA - Municipal Bond Investors Corp.
PSF - Permanent School Fund
XLCA - XL Capital Insurance Co.
See notes to financial statements.
- -----------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES (unaudited)
- -----------------------------------------------------------------------------------------------------
This statement represents your fund's balance sheet, which details the assets and liabilities
composing the total value of your fund.
AT 9/30/03
ASSETS
Investments, at value (identified cost, $339,722,587) $365,182,538
- -----------------------------------------------------------------------------------------------------
Cash 40,948
- -----------------------------------------------------------------------------------------------------
Receivable for investments sold 742,137
- -----------------------------------------------------------------------------------------------------
Receivable for fund shares sold 218,255
- -----------------------------------------------------------------------------------------------------
Interest receivable 5,279,491
- -----------------------------------------------------------------------------------------------------
Other assets 5,093
- -----------------------------------------------------------------------------------------------------
Total assets $371,468,462
- -----------------------------------------------------------------------------------------------------
LIABILITIES
Distributions payable $1,432,739
- -----------------------------------------------------------------------------------------------------
Payable for fund shares reacquired 652,852
- -----------------------------------------------------------------------------------------------------
Interest payable on swaps 5,549
- -----------------------------------------------------------------------------------------------------
Unrealized depreciation on interest rate swaps 70,045
- -----------------------------------------------------------------------------------------------------
Unrealized depreciation on rate lock swaps 520,046
- -----------------------------------------------------------------------------------------------------
Payable to affiliates
- -----------------------------------------------------------------------------------------------------
Management fee 3,991
- -----------------------------------------------------------------------------------------------------
Shareholder servicing agent fee 1,103
- -----------------------------------------------------------------------------------------------------
Distribution and service fee 4,461
- -----------------------------------------------------------------------------------------------------
Accrued expenses and other liabilities 147,986
- -----------------------------------------------------------------------------------------------------
Total liabilities $2,838,772
- -----------------------------------------------------------------------------------------------------
Net assets $368,629,690
- -----------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF
Paid-in capital $351,070,733
- -----------------------------------------------------------------------------------------------------
Unrealized appreciation on investments 24,869,860
- -----------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (6,191,755)
- -----------------------------------------------------------------------------------------------------
Accumulated distributions in excess of net investment
income (1,119,148)
- -----------------------------------------------------------------------------------------------------
Total $368,629,690
- -----------------------------------------------------------------------------------------------------
Shares of beneficial interest outstanding 42,773,043
- -----------------------------------------------------------------------------------------------------
See notes to financial statements.
Statement of Assets and Liabilities (unaudited) - continued
Class A shares
Net assets $271,794,350
- -----------------------------------------------------------------------------------------------------
Shares outstanding 31,552,975
- -----------------------------------------------------------------------------------------------------
Net asset value per share $8.61
- -----------------------------------------------------------------------------------------------------
Offering price per share (100/95.25X$8.61) $9.04
- -----------------------------------------------------------------------------------------------------
Class B shares
Net assets $57,381,597
- -----------------------------------------------------------------------------------------------------
Shares outstanding 6,652,342
- -----------------------------------------------------------------------------------------------------
Net asset value and offering price per share $8.63
- -----------------------------------------------------------------------------------------------------
Class C shares
Net assets $39,453,743
- -----------------------------------------------------------------------------------------------------
Shares outstanding 4,567,726
- -----------------------------------------------------------------------------------------------------
Net asset value and offering price per share $8.64
- -----------------------------------------------------------------------------------------------------
On sales of $100,000 or more, the offering price of Class A shares is reduced. A contingent deferred
sales charge may be imposed on redemptions of Class A, Class B, and Class C shares.
See notes to financial statements.
- -----------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS STATEMENT OF OPERATIONS (unaudited)
- -----------------------------------------------------------------------------------------------------
This statement describes how much your fund received in investment income and paid in expenses. It
also describes any gains and/or losses generated by fund operations.
FOR SIX MONTHS ENDED 9/30/03
NET INVESTMENT INCOME
Interest income $10,632,052
- -----------------------------------------------------------------------------------------------------
Expenses
- -----------------------------------------------------------------------------------------------------
Management fee $1,032,316
- -----------------------------------------------------------------------------------------------------
Trustees' compensation 7,192
- -----------------------------------------------------------------------------------------------------
Shareholder servicing agent fee 205,851
- -----------------------------------------------------------------------------------------------------
Distribution and service fee (Class A) 343,424
- -----------------------------------------------------------------------------------------------------
Distribution and service fee (Class B) 294,012
- -----------------------------------------------------------------------------------------------------
Distribution and service fee (Class C) 203,664
- -----------------------------------------------------------------------------------------------------
Administrative fee 20,647
- -----------------------------------------------------------------------------------------------------
Custodian fee 80,270
- -----------------------------------------------------------------------------------------------------
Printing 32,927
- -----------------------------------------------------------------------------------------------------
Postage 11,238
- -----------------------------------------------------------------------------------------------------
Auditing fees 18,461
- -----------------------------------------------------------------------------------------------------
Legal fees 668
- -----------------------------------------------------------------------------------------------------
Miscellaneous 107,132
- -----------------------------------------------------------------------------------------------------
Total expenses $2,357,802
- -----------------------------------------------------------------------------------------------------
Fees paid indirectly (2,354)
- -----------------------------------------------------------------------------------------------------
Reduction of expenses by investment adviser (283,766)
- -----------------------------------------------------------------------------------------------------
Net expenses $2,071,682
- -----------------------------------------------------------------------------------------------------
Net investment income $8,560,370
- -----------------------------------------------------------------------------------------------------
See notes to financial statements.
Statement of Operations (unaudited) - continued
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized loss (identified cost basis)
- -----------------------------------------------------------------------------------------------------
Investment transactions $(1,829,615)
- -----------------------------------------------------------------------------------------------------
Swap transactions (373,247)
- -----------------------------------------------------------------------------------------------------
Net realized loss on investments $(2,202,862)
- -----------------------------------------------------------------------------------------------------
Change in unrealized appreciation
- -----------------------------------------------------------------------------------------------------
Investments $5,422,323
- -----------------------------------------------------------------------------------------------------
Swap transactions 256,322
- -----------------------------------------------------------------------------------------------------
Net unrealized gain on investments $5,678,645
- -----------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments $3,475,783
- -----------------------------------------------------------------------------------------------------
Increase in net assets from operations $12,036,153
- -----------------------------------------------------------------------------------------------------
See notes to financial statements.
- -----------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS STATEMENT OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------
This statement describes the increases and/or decreases in net assets resulting from operations, any
distributions, and any shareholder transactions.
SIX MONTHS YEAR
ENDED ENDED
9/30/03 3/31/03
(UNAUDITED)
OPERATIONS
Net investment income $8,560,370 $17,698,859
- -----------------------------------------------------------------------------------------------------
Net realized loss on investments (2,202,862) (2,870,156)
- -----------------------------------------------------------------------------------------------------
Net unrealized gain on investments 5,678,645 13,724,621
- ------------------------------------------------------------ ------------- ------------
Increase in net assets from operations $12,036,153 $28,553,324
- ------------------------------------------------------------ ------------- ------------
DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income
- -----------------------------------------------------------------------------------------------------
Class A $(6,844,547) $(14,303,373)
- -----------------------------------------------------------------------------------------------------
Class B (1,243,663) (2,694,683)
- -----------------------------------------------------------------------------------------------------
Class C (861,593) (1,663,610)
- ------------------------------------------------------------ ------------- ------------
Total distributions declared to shareholders $(8,949,803) $(18,661,666)
- ------------------------------------------------------------ ------------- ------------
Net decrease in net assets from fund share transactions $(7,909,605) $(10,929,973)
- ------------------------------------------------------------ ------------- ------------
Total decrease in net assets $(4,823,255) $(1,038,315)
- ------------------------------------------------------------ ------------- ------------
NET ASSETS
At beginning of period $373,452,945 $374,491,260
- -----------------------------------------------------------------------------------------------------
At end of period (including accumulated distributions in
excess of net investment income of $1,119,148 and $729,715,
respectively) $368,629,690 $373,452,945
- -----------------------------------------------------------------------------------------------------
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------------------------------------------------------
The financial highlights table is intended to help you understand the fund's financial performance for the semiannual period
and the past 5 fiscal years (or, if shorter, the period of the fund's operation). Certain information reflects financial
results for a single fund share. The total returns in the table represent the rate by which an investor would have earned
(or lost) on an investment in the fund (assuming reinvestment of all distributions) held for the entire period.
SIX MONTHS YEAR ENDED 3/31
ENDED ------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS A (UNAUDITED)
Net asset value, beginning
of period $ 8.54 $ 8.32 $ 8.54 $ 8.33 $ 8.97 $ 8.99
- ---------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS#(S)(S)
Net investment income(S) $ 0.20 $ 0.41 $ 0.44 $ 0.46 $ 0.48 $ 0.47
- ---------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments . 0.08 0.25 (0.20) 0.27 (0.59) (0.02)
- ---------------------------- ------ ------ ------ ------ ------ ------
Total from investment
operations $ 0.28 $ 0.66 $ 0.24 $ 0.73 $(0.11) $ 0.45
- ---------------------------- ------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS
From net investment income . $(0.21) $(0.44) $(0.46) $(0.47) $(0.47) $(0.47)
- ---------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments -- -- -- (0.02) (0.06) --
- ---------------------------------------------------------------------------------------------------------------------------
In excess of net
realized gain on
investments -- -- -- (0.03) -- --
- ---------------------------- ------ ------ ------ ------ ------ ------
Total distributions
declared to shareholders $(0.21) $(0.44) $(0.46) $(0.52) $(0.53) $(0.47)
- ---------------------------- ------ ------ ------ ------ ------ ------
Net asset value, end of
period $ 8.61 $ 8.54 $ 8.32 $ 8.54 $ 8.33 $ 8.97
- ---------------------------- ------ ------ ------ ------ ------ ------
Total return (%)(+) 3.35++ 8.00 2.78 9.06 (1.15) 5.16
- ---------------------------------------------------------------------------------------------------------------------------
Financial Highlights - continued
SIX MONTHS YEAR ENDED 3/31
ENDED ------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS A (CONTINUED) (UNAUDITED)
RATIOS (%) TO AVERAGE NET
ASSETS AND SUPPLEMENTAL
DATA(S):
Expenses## 0.90+ 0.90 0.91 0.89 0.88 1.08
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.73+ 4.85 5.12 5.55 5.66 5.35
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 6 13 15 15 57 31
- ---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period
(000 Omitted) $271,794 $274,442 $276,719 $255,799 $217,880 $215,858
- ---------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $ 0.20 $ 0.40 $ 0.41 $ 0.44 $ 0.45 $ 0.47
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
Expenses## 1.05+ 1.05 1.15 1.20 1.20 1.21
- ---------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 4.58+ 4.70 4.88 5.24 5.34 5.22
- ---------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002 was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by 0.02%. Per share, ratios, and supplemental data for periods
prior to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
(+) Total returns for Class A shares do not include the applicable sales charge. If the charge had been included, the
results would have been lower.
See notes to financial statements.
Financial Highlights - continued
SIX MONTHS YEAR ENDED 3/31
ENDED ------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS B (UNAUDITED)
Net asset value, beginning
of period $ 8.55 $ 8.33 $ 8.55 $ 8.34 $ 8.98 $ 9.00
- ---------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS#(S)(S)
Net investment income(S) $ 0.17 $ 0.35 $ 0.37 $ 0.40 $ 0.42 $ 0.41
- ---------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 0.09 0.24 (0.20) 0.27 (0.59) (0.02)
- ---------------------------- ------ ------ ------ ------ ------ ------
Total from investment
operations $ 0.26 $ 0.59 $ 0.17 $ 0.67 $(0.17) $ 0.39
- ---------------------------- ------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS
From net investment
income $(0.18) $(0.37) $(0.39) $(0.41) $(0.41) $(0.41)
- ---------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments -- -- -- (0.02) (0.06) --
- ---------------------------------------------------------------------------------------------------------------------------
In excess of net realized
gain on investments -- -- -- (0.03) -- --
- ---------------------------- ------ ------ ------ ------ ------ ------
Total distributions
declared to shareholders $(0.18) $(0.37) $(0.39) $(0.46) $(0.47) $(0.41)
- ---------------------------- ------ ------ ------ ------ ------ ------
Net asset value, end
of period $ 8.63 $ 8.55 $ 8.33 $ 8.55 $ 8.34 $ 8.98
- ---------------------------- ------ ------ ------ ------ ------ ------
Total return (%) 3.08++ 7.19 2.00 8.24 (1.89) 4.38
- ---------------------------------------------------------------------------------------------------------------------------
Financial Highlights - continued
SIX MONTHS YEAR ENDED 3/31
ENDED ------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS B (CONTINUED) (UNAUDITED)
RATIOS (%) TO AVERAGE NET
ASSETS AND SUPPLEMENTAL
DATA(S):
Expenses## 1.65+ 1.65 1.66 1.64 1.63 1.83
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.99+ 4.10 4.37 4.82 4.89 4.59
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 6 13 15 15 57 31
- ---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period
(000 Omitted) $57,382 $59,591 $61,627 $75,858 $93,656 $140,871
- ---------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment
income(S)(S) $ 0.17 $ 0.34 $ 0.35 $ 0.38 $ 0.39 $ 0.40
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
Expenses## 1.80+ 1.80 1.90 1.95 1.95 1.96
- ---------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 3.84+ 3.95 4.13 4.51 4.57 4.46
- ---------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002 was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by 0.02%. Per share, ratios, and supplemental data for periods
prior to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
Financial Highlights - continued
SIX MONTHS YEAR ENDED 3/31
ENDED ------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS C (UNAUDITED)
Net asset value, beginning
of period $ 8.56 $ 8.34 $ 8.56 $ 8.35 $ 8.99 $ 9.01
- ---------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT
OPERATIONS#(S)(S)
Net investment income(S) $ 0.17 $ 0.35 $ 0.37 $ 0.40 $ 0.42 $ 0.41
- ---------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 0.09 0.24 (0.20) 0.27 (0.59) (0.02)
- ---------------------------- ------ ------ ------ ------ ------ ------
Total from investment
operations $ 0.26 $ 0.59 $ 0.17 $ 0.67 $(0.17) $ 0.39
- ---------------------------- ------ ------ ------ ------ ------ ------
LESS DISTRIBUTIONS DECLARED
TO SHAREHOLDERS
From net investment income $(0.18) $(0.37) $(0.39) $(0.41) $(0.41) $(0.41)
- ---------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments -- -- -- (0.02) (0.06) --
- ---------------------------------------------------------------------------------------------------------------------------
In excess of net realized
gain on investments -- -- -- (0.03) -- --
- ---------------------------- ------ ------ ------ ------ ------ ------
Total distributions
declared to shareholders $(0.18) $(0.37) $(0.39) $(0.46) $(0.47) $(0.41)
- ---------------------------- ------ ------ ------ ------ ------ ------
Net asset value, end
of period $ 8.64 $ 8.56 $ 8.34 $ 8.56 $ 8.35 $ 8.99
------ ------ ------ ------ ------ ------
Total return (%) 3.08++ 7.18 2.00 8.23 (1.89) 4.37
- ---------------------------------------------------------------------------------------------------------------------------
Financial Highlights - continued
SIX MONTHS YEAR ENDED 3/31
ENDED ------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS C (CONTINUED) (UNAUDITED)
RATIOS (%) TO AVERAGE NET
ASSETS AND SUPPLEMENTAL
DATA(S):
Expenses## 1.65+ 1.65 1.66 1.64 1.63 1.81
- ---------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 3.99+ 4.10 4.37 4.80 4.89 4.59
- ---------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 6 13 15 15 57 31
- ---------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $39,454 $39,420 $36,146 $29,257 $26,037 $32,164
- ---------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for certain of the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment
income(S)(S) $ 0.17 $ 0.34 $ 0.35 $ 0.37 $ 0.39 $ 0.40
- ---------------------------------------------------------------------------------------------------------------------------
RATIOS (%) (TO AVERAGE NET ASSETS)
Expenses## 1.79+ 1.80 1.90 1.95 1.95 1.94
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.84+ 3.95 4.13 4.49 4.57 4.46
- ---------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002 was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by 0.02%. Per share, ratios, and supplemental data for periods
prior to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (unaudited)
- -------------------------------------------------------------------------------
(1) BUSINESS AND ORGANIZATION
MFS Municipal Income Fund (the fund) is a diversified series of MFS Municipal
Series Trust (the trust). The trust is organized as a Massachusetts business
trust and is registered under the Investment Company Act of 1940, as amended,
as an open-end management investment company.
(2) SIGNIFICANT ACCOUNTING POLICIES
GENERAL - The preparation of financial statements, in conformity with
accounting principles generally accepted in the United States of America,
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
INVESTMENT VALUATIONS - Bonds and other fixed income securities (other than
short-term obligations) of U.S. issuers in the fund's portfolio are valued at
an evaluated bid price on the basis of quotes from brokers and dealers or on
the basis of valuations furnished by a pricing service. Prices obtained from
pricing services utilize both dealer-supplied valuations and electronic data
processing techniques which take into account appropriate factors such as
institutional-size trading in similar groups of securities, yield, quality,
coupon rate, maturity, type of issue, trading characteristics and other market
data without exclusive reliance upon quoted prices or exchange or over-the-
counter prices, since such valuations are believed to reflect more accurately
the fair value of such securities. Short-term obligations in the fund's
portfolio are valued at amortized cost, which constitutes fair value as
determined by the Board of Trustees. Short-term obligations with a remaining
maturity in excess of 60 days will be valued upon dealer-supplied valuations.
Portfolio investments for which market quotations are not readily available,
or whose values have been materially affected by events occurring after the
close of their primary markets, are valued at fair value as determined in good
faith by or at the direction of the Board of Trustees.
SWAP AGREEMENTS - The fund may enter into swap agreements. A swap is an
exchange of cash payments between the fund and another party, which is based
on a specific financial index. Cash payments are exchanged at specified
intervals and the expected income or expense is recorded on the accrual basis.
The value of the swap is adjusted daily and the change in value is recorded as
unrealized appreciation or depreciation. Risks may arise upon entering into
these agreements from the potential inability of counterparties to meet the
terms of their contract and from unanticipated changes in the value of the
financial index on which the swap agreement is based. The fund uses swaps for
both hedging and non-hedging purposes. For hedging purposes, the fund may use
swaps to reduce its exposure to interest rate fluctuations. For non-hedging
purposes, the fund may use swaps to take a position on anticipated changes in
the underlying financial index.
RATE LOCK SWAPS - The fund may enter into rate lock swaps, which are used to
reduce the interest rate risk of the portfolio. A rate lock swap is a payment
or receipt of cash on a specified future date, calculated as the difference
between the strike rate and a specific index yield on that date. The payment
received or made at the end of the measurement period is recorded as a
realized gain or loss in the Statement of Operations. The value of the swap is
adjusted daily and the change in value is recorded as unrealized appreciation
or depreciation.
INVESTMENT TRANSACTIONS AND INCOME - Investment transactions are recorded on
the trade date. Interest income is recorded on the accrual basis. All premium
and discount is amortized or accreted for financial statement purposes in
accordance with accounting principles generally accepted in the United States
of America. All premium and original issue discount is amortized or accreted
for tax reporting purposes as required by federal income tax regulations.
Legal fees and other related expenses incurred to preserve and protect the
value of a security owned are added to the cost of the security; other legal
fees are expensed. Capital infusions made directly to the security issuer,
which are generally non-recurring, incurred to protect or enhance the value of
high-yield debt securities, are reported as additions to the cost basis of the
security. Costs that are incurred to negotiate the terms or conditions of
capital infusions or that are expected to result in a plan of reorganization
are reported as realized losses. Ongoing costs incurred to protect or enhance
an investment, or costs incurred to pursue other claims or legal actions, are
expensed.
FEES PAID INDIRECTLY - The fund's custody fee is reduced according to an
arrangement that measures the value of cash deposited with the custodian by
the fund. This amount is shown as a reduction of total expenses on the
Statement of Operations.
TAX MATTERS AND DISTRIBUTIONS - The fund's policy is to comply with the
provisions of the Internal Revenue Code (the Code) applicable to regulated
investment companies and to distribute to shareholders all of its net tax-
exempt and taxable net income, including any net realized gain on investments.
Accordingly, no provision for federal income or excise tax is provided.
Distributions paid by the fund from net interest received on tax-exempt
municipal bonds are not includable by shareholders as gross income for federal
income tax purposes because the fund intends to meet certain requirements of
the Code applicable to regulated investment companies, which will enable the
fund to pay exempt-interest dividends. The portion of such interest, if any,
earned on private activity bonds issued after August 7, 1986 may be considered
a tax-preference item to shareholders.
Distributions to shareholders are recorded on the ex-dividend date. The fund
distinguishes between distributions on a tax basis and a financial reporting
basis and only distributions in excess of tax basis earnings and profits are
reported in the financial statements as distributions from paid-in capital.
Differences in the recognition or classification of income between the
financial statements and tax earnings and profits, which result in temporary
over-distributions for financial statement purposes, are classified as
distributions in excess of net investment income or net realized gains. Common
types of book and tax differences that could occur include differences in
accounting for derivatives, capital losses, and amortization and accretion on
debt securities.
The tax character of distributions declared for the years ended March 31, 2003
and March 31, 2002, were as follows:
3/31/03 3/31/02
Distributions declared from tax
exempt income $18,661,666 $19,345,283
- -------------------------------------------------------------------------------
As of March 31, 2003 the components of distributable earnings (accumulated
losses) on a tax basis were as follows:
Undistributed tax-exempt income $1,356,160
------------------------------------------------------------
Capital loss carryforward (2,300,593)
------------------------------------------------------------
Unrealized appreciation 19,425,460
------------------------------------------------------------
Other temporary differences 4,008,419
------------------------------------------------------------
For federal income tax purposes, the capital loss carryforward may be applied
against any net taxable realized gains of each succeeding year until the
earlier of its utilization or expiration on March 31, 2010 ($1,199,142), and
March 31, 2011 ($1,101,451).
MULTIPLE CLASSES OF SHARES OF BENEFICIAL INTEREST - The fund offers multiple
classes of shares, which differ in their respective distribution and service
fees. All shareholders bear the common expenses of the fund based on the value
of settled shares outstanding of each class, without distinction between share
classes. Dividends are declared separately for each class. Differences in per
share dividend rates are generally due to differences in separate class
expenses. Class B shares will convert to Class A shares approximately eight
years after purchase.
(3) TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER - The fund has an investment advisory agreement with
Massachusetts Financial Services Company (MFS) to provide overall investment
advisory and administrative services, and general office facilities. The
management fee is computed daily and paid monthly at an annual rate of 0.55%
of the fund's average daily net assets. The investment adviser has voluntarily
agreed to waive a portion of its fee, which is shown as a reduction of total
expenses in the Statement of Operations. This voluntary reduction in the
management fee may be rescinded by MFS only with the approval of the fund's
Board of Trustees. Management fees incurred for the six months
ended September 30, 2003 were 0.40% of average daily net assets on an
annualized basis.
The fund pays compensation to the Independent Trustees ("Trustees") in the
form of both a retainer and attendance fees, and pays no compensation directly
to its Trustees who are officers of the investment adviser, or to officers of
the fund, all of whom receive remuneration for their services to the fund from
MFS. Certain officers and Trustees of the fund are officers or directors of
MFS, MFS Fund Distributors, Inc. (MFD), and MFS Service Center, Inc. (MFSC).
The fund has an unfunded, defined benefit plan for inactive Trustees. Included
in Trustees' compensation is a pension expense of $2,097 for inactive trustees
for the six months ended September 30, 2003.
ADMINISTRATOR - The fund has an administrative services agreement with MFS to
provide the fund with certain financial, legal, shareholder communications,
compliance, and other administrative services. As a partial reimbursement for
the cost of providing these services, the fund pays MFS an administrative fee
not to exceed the following annual percentage rates of the fund's average
daily net assets:
First $2 billion 0.0175%
----------------------------------------------------------
Next $2.5 billion 0.0130%
----------------------------------------------------------
Next $2.5 billion 0.0005%
----------------------------------------------------------
In excess of $7 billion 0.0000%
----------------------------------------------------------
The effective rate for the six months ended September 30, 2003 was 0.01099%.
DISTRIBUTOR - MFD, a wholly owned subsidiary of MFS, as distributor, received
$48,213 for the six months ended September 30, 2003, as its portion of the
sales charge on sales of Class A shares of the fund.
The Trustees have adopted a distribution plan for Class A, Class B, and
Class C shares pursuant to Rule 12b-1 of the Investment Company Act of 1940 as
follows:
The fund's distribution plan provides that the fund will pay MFD an annual
percentage of its average daily net assets attributable to certain share
classes in order that MFD may pay expenses on behalf of the fund related to
the distribution and servicing of its shares. These expenses include a service
fee paid to each securities dealer that enters into a sales agreement with MFD
based on the average daily net assets of accounts attributable to such
dealers. These fees are calculated based on each class' average daily net
assets. The maximum distribution and service fees for each class of shares are
as follows:
CLASS A CLASS B CLASS C
Distribution Fee 0.10% 0.75% 0.75%
- ------------------------------------------------------------------------------
Service Fee 0.25% 0.25% 0.25%
- ------------------------------------------------------------------------------
Total Distribution Plan 0.35% 1.00% 1.00%
- ------------------------------------------------------------------------------
MFD retains the service fee for accounts not attributable to a securities
dealer, which for the six months ended September 30, 2003, amounted to:
CLASS A CLASS B CLASS C
Service Fee Retained by MFD $11,294 $337 $62
- ------------------------------------------------------------------------------
Payment of 0.10% per annum, Class A distribution fee will be implemented on
such date as the Trustees of the trust may determine.
Fees incurred under the distribution plan during the six months ended
September 30, 2003, were as follows:
CLASS A CLASS B CLASS C
Total Distribution Plan 0.25% 1.00% 1.00%
- ------------------------------------------------------------------------------
Certain Class A and Class C shares are subject to a contingent deferred sales
charge in the event of a shareholder redemption within, for class A shares, 12
months following the purchase, and, for class C shares, the first year from
the end of the calendar month of purchase. A contingent deferred sales charge
is imposed on shareholder redemptions of Class B shares in the event of a
shareholder redemption within six years from the end of the calendar
month of purchase. MFD receives all contingent deferred sales charges.
Contingent deferred sales charges imposed during the six months ended
September 30, 2003, were as follows:
CLASS A CLASS B CLASS C
Contingent Deferred Sales Charges Imposed $0 $44,040 $6,594
- ------------------------------------------------------------------------------
SHAREHOLDER SERVICING AGENT - MFSC, a wholly owned subsidiary of MFS, earns a
fee for its services as shareholder servicing agent. The fee is calculated as
a percentage of the fund's average daily net assets at an annual rate of
0.11%.
(4) PORTFOLIO SECURITIES
Purchases and sales of investments, other than U.S. government securities,
purchased option transactions, and short-term obligations, aggregated
$21,029,246 and $29,587,133, respectively.
The cost and unrealized appreciation and depreciation in the value of the
investments owned by the fund, as computed on a federal income tax basis, are
as follows:
Aggregate cost $339,436,627
--------------------------------------------------------------
Gross unrealized appreciation $32,350,559
--------------------------------------------------------------
Gross unrealized depreciation (6,604,648)
--------------------------------------------------------------
Net unrealized appreciation $25,745,911
--------------------------------------------------------------
(5) SHARES OF BENEFICIAL INTEREST
The fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest. Transactions in
fund shares were as follows:
Six months ended Year ended
9/30/03 3/31/03
SHARES AMOUNT SHARES AMOUNT
CLASS A SHARES
Shares sold 2,775,086 $23,705,804 4,450,257 $37,896,886
- ------------------------------------------------------------------------------------------------------------
Shares issued to shareholders
in reinvestment of
distributions 448,397 3,832,239 945,048 8,059,984
- ------------------------------------------------------------------------------------------------------------
Shares reacquired (3,808,445) (32,512,482) (6,507,096) (55,624,477)
- ------------------------------------------------------------------------------------------------------------
Net decrease (584,962) $(4,974,439) (1,111,791) $(9,667,607)
- ------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Shares sold 368,264 $3,178,321 1,268,027 $10,847,882
- ------------------------------------------------------------------------------------------------------------
Shares issued to shareholders
in reinvestment of
distributions 70,994 608,056 158,423 1,354,185
- ------------------------------------------------------------------------------------------------------------
Shares reacquired (755,654) (6,447,950) (1,853,374) (15,811,734)
- ------------------------------------------------------------------------------------------------------------
Net decrease (316,396) $(2,661,573) (426,924) $(3,609,667)
- ------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Shares sold 677,977 $5,830,964 1,278,255 $10,973,927
- ------------------------------------------------------------------------------------------------------------
Shares issued to shareholders
in reinvestment of
distributions 65,316 559,798 127,218 1,087,463
- ------------------------------------------------------------------------------------------------------------
Shares reacquired (779,350) (6,664,355) (1,133,632) (9,714,089)
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) (36,057) $(273,593) 271,841 $2,347,301
- ------------------------------------------------------------------------------------------------------------
(6) LINE OF CREDIT
The fund and other affiliated funds participate in an $800 million unsecured
line of credit provided by a syndication of banks under a line of credit
agreement. Borrowings may be made for temporary financing needs. Interest is
charged to each fund, based on its borrowings, at a rate equal to the bank's
base rate. A commitment fee of $645 which is based on the average daily unused
portion of the line of credit is included in miscellaneous expense. The fund
had no borrowings during the period.
(7) FINANCIAL INSTRUMENTS
The fund trades financial instruments with off-balance-sheet risk in the normal
course of its investing activities in order to manage exposure to market risks
such as interest rates and foreign currency exchange rates. These financial
instruments include swap agreements. The notional or contractual amounts of
these instruments represent the investment the fund has in particular classes
of financial instruments and does not necessarily represent the amounts
potentially subject to risk. The measurement of the risks associated with these
instruments is meaningful only when all related and offsetting transactions are
considered.
Swap Agreements
Interest Rate Swaps
NOTIONAL
PRINCIPAL CASH FLOWS
AMOUNT OF PAID BY CASH FLOWS RECEIVED UNREALIZED
EXPIRATION CONTRACT THE FUND BY THE FUND DEPRECIATION
- ------------------------------------------------------------------------------
11/15/04 4,000,000 Floating-7 day Fixed-1.945% $(36,742)
BMA Swap Index
- --------------------------------------------------------------------------------
10/31/12 3,750,000 Floating-3 M Floating-7 day (10,044)
LIBOR X 78.875% BMA Swap Index
- --------------------------------------------------------------------------------
12/18/12 7,600,000 Floating-3M Floating-7 day (23,259)
LIBOR X 78.75% BMA Swap Index
- --------------------------------------------------------------------------------
TOTAL: $(70,045)
- --------------------------------------------------------------------------------
Rate Lock Swaps
NOTIONAL PRINCIPAL AMOUNT UNREALIZED
OF CONTRACT (000) DESCRIPTION DEPRECIATION
- --------------------------------------------------------------------------------
4,000,000 Agreement with Goldman Sachs $(166,411)
terminating October 1, 2003 to pay
the difference between the
notional value and the market
value of a bond with a 4.22%
coupon maturing on October 1, 2016
priced at a yield to maturity
equal to the Municipal Market Data
(MMD) general obligation yield
curve rate for the designated
maturity year as of the close of
business on the termination date,
if negative (receive positive).
- --------------------------------------------------------------------------------
3,100,000 Agreement with Goldman Sachs $(209,248)
terminating October 16, 2003 to
pay the difference between the
notional value and the market
value of a bond with a 4.65%
coupon maturing on October 16,
2018 priced at a yield to maturity
equal to the MMD general
obligation yield curve rate for
the designated maturity year as of
the close of business on the
termination date, if negative
(receive positive).
- --------------------------------------------------------------------------------
3,000,000 Agreement with Goldman Sachs $(74,382)
terminating December 10, 2003 to
pay the difference between the
notional value and the market
value of a bond with a 4.78%
coupon maturing on December 10,
2023 priced at a yield to maturity
equal to the MMD general
obligation yield curve rate for
the designated maturity year as of
the close of business on the
termination date, if negative
(receive positive).
- --------------------------------------------------------------------------------
700,000 Agreement with Merrill Lynch $(9,022)
terminating January 7, 2004 to pay
the difference between the
notional value and the market
value of a bond with a 4.285%
coupon maturing on January 7, 2019
priced at a yield to maturity
equal to the MMD general
obligation yield curve rate for
the designated maturity year as of
the close of business on the
termination date, if negative
(receive positive).
- --------------------------------------------------------------------------------
2,500,000 Agreement with Merrill Lynch $(60,983)
terminating January 20, 2004 to
pay the difference between the
notional value and the market
value of a bond with a 4.403%
coupon maturing on January 20,
2019 priced at a yield to maturity
equal to the MMD general
obligation yield curve rate for
the designated maturity year as of
the close of business on the
termination date, if negative
(receive positive).
- --------------------------------------------------------------------------------
TOTAL: $(520,046)
- --------------------------------------------------------------------------------
At September 30, 2003, the fund had sufficient cash and/or securities to cover
any commitments under these contracts.
(8) RESTRICTED SECURITIES
The fund may invest not more than 15% of its total assets in securities which
are subject to legal or contractual restrictions on resale. At September 30,
2003, the fund owned the following restricted securities, excluding securities
issued under Rule 144A, constituting 4.6% of net assets which may not be
publicly sold without registration under the Securities Act of 1933. The fund
does not have the right to demand that such securities be registered. The value
of these securities is determined by valuations furnished by dealers or by a
pricing service, or if not available, in good faith at the direction of the
Trustees.
DATE OF PRINCIPAL
DESCRIPTION ACQUISITION AMOUNT COST VALUE
- ------------------------------------------------------------------------------------------------------------
Atlanta, GA, Water & Wastewater Rev., RITES,
FGIC, 9.639s, 2016 4/20/1999 1,000 $1,167,100 $1,345,280
Chicago, IL, (O'Hare International Airport)
RITES, FSA, 10.06, 2022 8/21/2003 1,500 $1,598,757 $1,744,710
Chicago, IL, Public Building Commission
Rev., RITES, 8.064s, 2016 3/10/1999 1,500 $1,619,550 $1,919,910
Chicago, IL, Public Building Commission
Rev., RITES, 8.064s, 2017 3/10/1999 1,250 $1,337,550 $1,585,000
Commonwealth of Puerto Rico ROLS, FGIC,
9.806s, 2015 7/15/2001 3,000 $3,878,760 $4,013,340
Dudley-Charlton, MA, Regional School
District, RITES, FGIC, 9.208s, 2017 5/5/1999 1,495 $1,645,945 $1,909,534
Houston, TX, Independent School District,
RITES, PSF, 9.139s, 2017 2/26/1999 2,325 $2,440,831 $2,669,239
North Carolina Municipal Power Agency, MBIA,
9.259s, 2019 10/28/1996 1,500 $1,717,980 $1,730,550
- ------------------------------------------------------------------------------------------------------------
Total: $16,917,563
- ------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------------------------------------
The following tables present certain information regarding the Trustees and officers of MFS Municipal Series
Trust, including their principal occupations, which, unless specific dates are shown, are of more than five
years' duration, although the titles may not have been the same throughout.
Name, age, position with the Trust, principal occupation, and other directorships(1)
INTERESTED TRUSTEES
JEFFREY L. SHAMES(2) (born 06/02/55) ABBY M. O'NEILL (born 04/27/28)
Chairman Trustee
Massachusetts Financial Services Company, Chairman Private investor; Rockefeller Financial Services,
Inc. (investment advisers), Chairman and Chief
JOHN W. BALLEN(2) (born 09/12/59) Executive Officer
Trustee and President
Massachusetts Financial Services Company, Chief LAWRENCE T. PERERA (born 06/23/35)
Executive Officer and Director Trustee
Hemenway & Barnes (attorneys), Partner
KEVIN R. PARKE(2) (born 12/14/59)
Trustee WILLIAM J. POORVU (born 04/10/35)
Massachusetts Financial Services Company, Trustee
President, Chief Investment Officer and Director Private investor; Harvard University Graduate
School of Business Administration, Class of 1961
INDEPENDENT TRUSTEES Adjunct Professor in Entrepreneurship Emeritus;
CBL & Associates Properties, Inc. (real estate
LAWRENCE H. COHN, M.D. (born 03/11/37) investment trust), Director
Trustee
Brigham and Women's Hospital, Chief of Cardiac J. DALE SHERRATT (born 09/23/38)
Surgery; Harvard Medical School, Professor of Trustee
Surgery Insight Resources, Inc. (acquisition planning
specialists), President; Wellfleet Investments
WILLIAM R. GUTOW (born 09/27/41) (investor in health care companies), Managing
Trustee General Partner (since 1993); Cambridge
Private investor and real estate consultant; Nutraceuticals (professional nutritional
Capitol Entertainment Management Company (video products), Chief Executive Officer (until May
franchise), Vice Chairman 2001)
J. ATWOOD IVES (born 05/01/36) ELAINE R. SMITH (born 04/25/46)
Trustee Trustee
Private investor; KeySpan Corporation (energy Independent health care industry consultant
related services), Director; Eastern Enterprises
(diversified services company), Chairman, Trustee WARD SMITH (born 09/13/30)
and Chief Executive Officer (until November 2000) Trustee
Private investor
(1) Directorships or trusteeships of companies required to report to the Securities and Exchange Commission
(i.e., "public companies").
(2) "Interested person" of MFS 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 Trust. The address of MFS
is 500 Boylston Street, Boston, Massachusetts 02116.
Trustees and Officers - continued
OFFICERS
JOHN W. BALLEN (born 09/12/59) ROBERT R. FLAHERTY (born 09/18/63)
Trustee and President Assistant Treasurer
Massachusetts Financial Services Company, Chief Massachusetts Financial Services Company, Vice
Executive Officer and Director President (since August 2000); UAM Fund Services,
Senior Vice President (prior to August 2000)
JAMES R. BORDEWICK, JR. (born 03/06/59)
Assistant Secretary and Assistant Clerk RICHARD M. HISEY (born 08/29/58)
Massachusetts Financial Services Company, Senior Treasurer
Vice President and Associate General Counsel Massachusetts Financial Services Company, Senior
Vice President (since July 2002); The Bank of New
STEPHEN E. CAVAN (born 11/06/53) York, Senior Vice President (September 2000 to
Secretary and Clerk July 2002); Lexington Global Asset Managers, Inc.,
Massachusetts Financial Services Company, Senior Executive Vice President and Chief Financial
Vice President, General Counsel and Secretary Officer (prior to September 2000); Lexington
Funds, Treasurer (prior to September 2000)
STEPHANIE A. DESISTO (born 10/01/53)
Assistant Treasurer ELLEN MOYNIHAN (born 11/13/57)
Massachusetts Financial Services Company, Vice Assistant Treasurer
President (since April 2003); Brown Brothers Massachusetts Financial Services Company, Vice
Harriman & Co., Senior Vice President (November President
2002 to April 2003); ING Groep N.V./Aeltus
Investment Management, Senior Vice President JAMES O. YOST (born 06/12/60)
(prior to November 2002) Assistant Treasurer
Massachusetts Financial Services Company, Senior
Vice President
The Trust does not hold annual shareholder meetings for the purpose of electing Trustees, and Trustees are not
elected for fixed terms. This means that each Trustee will be elected to hold office until his or her
successor is chosen and qualified or until his or her earlier death, resignation, retirement or removal. Each
officer will hold office until his or her successor is chosen and qualified, or until he or she retires,
resigns or is removed from office.
Messrs. Shames, Cohn, Sherratt and Smith, and Ms. O'Neill, have served in their capacity as Trustee of the
Trust continuously since originally elected or appointed. Messrs. Ballen, Gutow, Ives, Perera and Poorvu, and
Ms. Smith, were elected by shareholders and have served as Trustees of the Trust since January 1, 2002. Mr.
Parke has served as a Trustee of the Trust since January 1, 2002.
Each of the Trust's Trustees and officers holds comparable positions with certain other funds of which MFS or
a subsidiary is the investment adviser or distributor and, in the case of the officers, with certain
affiliates of MFS. Each Trustee serves as a board member of 110 funds within the MFS Family of Funds.
The Statement of Additional Information contains further information about the Trustees and is available
without charge upon request, by calling 1-800-225-2606.
- --------------------------------------------------------------------------------------------
INVESTMENT ADVISER CUSTODIANS
Massachusetts Financial Services Company State Street Bank and Trust Company
500 Boylston Street, Boston, MA 225 Franklin Street, Boston, MA
02116-3741 02110
DISTRIBUTOR JP Morgan Chase Manhattan Bank
MFS Fund Distributors, Inc. One Chase Manhattan Plaza
500 Boylston Street, Boston, MA New York, NY 10081
02116-3741
PORTFOLIO MANAGERS
Michael L. Dawson(1)
Geoffrey L. Schechter(1)
(1) MFS Investment Management
- -------------------------------------------------------------------------------
MONEY MANAGEMENT FOR ALL TYPES OF INVESTORS
- -------------------------------------------------------------------------------
YOUR GOALS ARE IMPORTANT
MFS offers a complete range of investments and investment services to address
specific financial needs over time. When your investing goals change, you can
easily stay with MFS for the products you need, when you need them. Whether
you're investing for college or retirement expenses or for tax management or
estate planning, MFS will be there.
Ask your investment professional how MFS can help you move toward the goals
you've set.
MFS FAMILY OF FUNDS(R)
More than 50 portfolios offer domestic and international
equity and fixed-income investment across the full risk
spectrum
VARIABLE ANNUITIES
A selection of annuity products with advantages for
building and preserving wealth
MFS 401(k) AND IRA SUITES
Retirement plans for businesses and individuals
MFS COLLEGE SAVINGS PLANS
Investment products to help meet education expenses
MFS PRIVATE PORTFOLIO SERVICES
Investment advisory services that provide custom products
for high-net-worth individuals
You can obtain a prospectus for any MFS product from your investment
professional. The prospectus contains complete information on the fees and
risks associated with investing. Read the prospectus carefully before
investing or sending money.
Variable annuities are offered through MFS/Sun Life Financial Distributors,
Inc.
- -------------------------------------------------------------------------------
CONTACT INFORMATION
- -------------------------------------------------------------------------------
INVESTOR INFORMATION
For information on MFS mutual funds, call your investment professional or, for
an information kit, call toll free: 1-800-225-2606 any business day from
8 a.m. to 8 p.m. Eastern time.
A general description of the MFS Funds proxy voting policies is available
without charge, upon request, by calling 1-800-225-2606, by visiting the About
MFS section of mfs.com or by visiting the SEC's website at http://www.sec.
gov.
INVESTOR SERVICE
Write to us at: MFS Service Center, Inc.
P.O. Box 2281
Boston, MA 02107-9906
Type of Information Phone number Hours, Eastern Time
- --------------------------------------------------------------------------------
General information 1-800-225-2606 8 a.m. to 8 p.m., any
business day
- --------------------------------------------------------------------------------
Speech- or hearing-impaired 1-800-637-6576 9 a.m. to 5 p.m., any
business day
- --------------------------------------------------------------------------------
Shares prices, account 1-800-MFS-TALK
balances exchanges (1-800-637-8255) 24 hours a day,
or stock and bond outlooks touch-tone required 365 days a year
- --------------------------------------------------------------------------------
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[logo] M F S(R)
INVESTMENT MANAGEMENT
500 Boylston Street
Boston, MA 02116-3741
(C) 2003 MFS Investment Management(R)
MFS(R) investment products are offered through MFS Fund Distributors, Inc.
500 Boylston Street, Boston, MA 02116
LMB SEM-11/03 17M
MFS(R) Mutual Funds
SEMIANNUAL REPORT 9/30/03
MFS(R) MUNICIPAL SERIES TRUST
For the States of: Mississippi,
New York, North Carolina,
Pennsylvania, South Carolina,
Tennessee, Virginia, and West Virginia
[graphic omitted]
A path for pursuing opportunity
[logo] M F S(R)
INVESTMENT MANAGEMENT
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MFS(R) PRIVACY POLICY: A COMMITMENT TO YOU
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- -------------------------------------------------------------------------------
Privacy is a concern for every investor today. At MFS Investment Management(R)
and the MFS funds, we take this concern very seriously. We want you to
understand our policies about every MFS investment product and service that we
offer and how we protect the nonpublic personal information of investors who
have a direct relationship with us and our wholly owned subsidiaries.
Throughout our business relationship, you provide us with personal information;
we maintain information and records about you, your investments, and the
services you use. Examples of the nonpublic personal information we maintain
include
o data from investment applications and other forms
o share balances and transactional history with us, our affiliates, or others
o facts from a consumer reporting agency
We do not disclose any nonpublic personal information about our customers or
former customers to anyone except as permitted by law. We may share information
with companies or financial institutions that perform marketing services on our
behalf or to other financial institutions with which we have joint marketing
arrangements. Access to your nonpublic personal information is limited to
appropriate personnel who provide products, services, or information to you. We
maintain physical, electronic, and procedural safeguards that comply with
applicable federal regulations.
If you have any questions about MFS' privacy policy, please call 1-800-225-2606
any business day between 8 a.m. and 8 p.m. Eastern time.
Note: If you own MFS products or receive MFS services 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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NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE NOT A DEPOSIT
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
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MFS(R) MUNICIPAL SERIES TRUST
The investment objective of each fund is to seek current income exempt from
federal income taxes and personal income tax, if any, of the state to which its
name refers.
TABLE OF CONTENTS
- ----------------------------------------------------
MFS PRIVACY POLICY
- ----------------------------------------------------
LETTER FROM THE CHAIRMAN 1
- ----------------------------------------------------
MFS ORIGINAL RESEARCH(R) 3
- ----------------------------------------------------
MANAGEMENT REVIEW 4
- ----------------------------------------------------
PERFORMANCE SUMMARY 7
- ----------------------------------------------------
PORTFOLIO OF INVESTMENTS 16
- ----------------------------------------------------
FINANCIAL STATEMENTS 55
- ----------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 84
- ----------------------------------------------------
TRUSTEES AND OFFICERS 98
- ----------------------------------------------------
MONEY MANAGEMENT FOR ALL TYPES
OF INVESTORS 99
- ----------------------------------------------------
CONTACT INFORMATION 100
- ----------------------------------------------------
ASSET ALLOCATION 101
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LETTER FROM THE CHAIRMAN
- --------------------------------------------------------------------------------
[Photo of Jeffrey L. Shames]
Dear Shareholders,
Our firm was built on the philosophy that bottom-up fundamental research is the
best means of achieving superior long-term investment performance. When you're
managing billions of dollars for investors, we think you have an obligation to
have in-depth, firsthand knowledge of every company owned, anywhere in the
world.
We have structured our equity and fixed-income investment teams to capitalize on
the strength of our investment process and the global reach of our analysts
based around the world. Our global research team is composed of 45 equity
research analysts, 27 based in the United States and 18 based abroad, and 26
credit research analysts. Each analyst is assigned one or more specific
industries and then charged with identifying the most attractive investment
ideas within these industries. Our U.S. and non-U.S. equity research analysts
are unified into one team that emphasizes a collaborative process in analyzing
securities around the globe. Credit analysts also share their expertise in each
segment of the fixed-income market and work as part of the same team ensuring
that every member has access to information that may have a material effect on
their investment decisions. As MFS(R) continues to grow and as markets become
more complex, we believe our structure will enable us to maintain a consistent
investment process with the goal of providing strong, long-term investment
performance across market capitalizations, investment disciplines, and country
borders for our investors.
THINKING GLOBALLY
More companies than ever compete globally and, therefore, we must make
investment decisions knowing what is occurring outside of a company's local
market. This trend plays to the strength of our environment of collaboration
between our analysts and portfolio managers around the globe. The analysts know
the most details about individual companies in specific industries and
geographic regions. The portfolio managers have broader, cross-industry insights
and a wider perspective on companies and industries. Our goal is to make sure
those two sets of perspectives coordinate and work well together. As the world's
markets become more interdependent, we believe our collaborative environment
allows us to produce solid investment ideas for our portfolios.
BUILDING A NETWORK
Simply put, we believe our structure assures that our analysts maintain their
peripheral vision rather than becoming too immersed in a specific segment of the
market. We do not believe that analysts and portfolio managers - no matter how
talented they may be - can succeed by working in a vacuum. Through the latest
technology available, our entire research team meets frequently via video and
telephone teleconferences, e-mail, and PDAs (personal digital assistants). When
we hire new analysts, we require them to spend an average of one year in Boston
to learn MFS' culture and to build relationships with their peers. We believe
the interaction among our analysts is the key to making our collaborative
process work toward delivering superior long-term investment performance for our
investors. Our analysts work out of four research offices in Boston, London,
Singapore, and Tokyo, and are assigned to specific regions and industries. They
meet regularly with their colleagues to discuss world trends affecting the
companies they cover.
In addition, our equity and fixed-income analysts often visit company
managements as a team. This collaboration is vital because of the different
perspectives they bring to their analysis. Because a company's stock price has
tended to follow its earnings over time, our equity research analysts tend to
focus on gauging earnings potential, a company's position within its industry,
and its ability to grow its market share. Conversely, our fixed-income analysts
will look at stability of a company's cash flow, the value of its assets, and
its capital structure to gauge whether the company can generate enough free cash
flow to pay off its debt. As a result of their collaboration, we believe we're
able to see a more complete view of a company.
WORKING TOGETHER
Our portfolio managers also work closely with the analysts to select the most
appropriate securities for their portfolios from the various recommendations
made by the analysts. Opinions are exchanged and ideas are challenged so that
each member of our team is involved in our investment process. In fact, our
portfolio managers will be the first ones to tell you that many of their best
ideas start with the research analysts. We believe our collaborative approach
also provides us with an effective way to assess risk. Our portfolio managers
are not discouraged from taking on an appropriate level of risk; however, we
have rigorous guidelines to assure that the level of risk is measured and
monitored and consistent with the investment philosophies of each of our
portfolios. All told, we believe our culture empowers the members of our
investment team to continue to do their best work and allows them to make better
investment decisions.
As always, we appreciate your confidence in MFS and welcome any questions or
comments you may have.
Respectfully,
/s/ Jeffrey L. Shames
Jeffrey L. Shames
Chairman
MFS Investment Management(R)
October 21, 2003
The opinions expressed in this letter are those of MFS, and no forecasts can be
guaranteed.
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MFS ORIGINAL RESEARCH(R)
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THE HUMAN SIDE OF MONEY MANAGEMENT
For nearly 80 years MFS has been offering investors clear paths to pursuing
specific investment objectives. Today, millions of individuals and thousands of
institutions all over the world look to MFS to manage their assets with insight
and care.
Our success, we believe, has to do with the fact that we see investors as people
with plans, not just dollars to invest.
Which means, when you invest with MFS, you invest with a company dedicated to
helping you realize your long-term financial goals.
INVESTORS CHOOSE MFS FOR OUR
o global asset management expertise across all asset classes
o time-tested money management process for pursuing consistent results
o full spectrum of investment products backed by MFS Original Research(R)
o resources and services that match real-life needs
INFORMATION INTO OPPORTUNITY
Sound investments begin with sound information. MFS has been doing its own
research and analyzing findings in-house for decades. The process we use to
uncover opportunity is called MFS Original Research(R).
MFS ORIGINAL RESEARCH INVOLVES:
o meeting with the management of 3,000 companies each year to assess their
business plans and the managers' ability to execute those plans
o making onsite visits to more than 2,000 companies annually to gain first-hand
knowledge of their operations and products
o analyzing financial statements and balance sheets
o talking extensively with companies' customers and competitors
o developing our own proprietary estimates of companies' earnings
- --------------------------------------------------------------------------------
MANAGEMENT REVIEW
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MARKET ENVIRONMENT
For the six-month period as a whole, long-term municipal interest rates were
virtually unchanged, while rates on shorter-maturity issues (maturities of less
than 15 years) declined modestly. Those facts, however, belie the tremendous
volatility in the bond market over that time. In early 2003 and into the first
half of the period, we saw a confluence of factors that were positive for bond
prices. Geopolitical uncertainty, the hangover from corporate scandals in 2002,
and a weak U.S. economy were among the factors that prompted a "flight to
quality" by many investors and pushed interest rates down to four-decade lows by
spring 2003.
In late June, however, the bond market reversed direction as fixed-income
investors became concerned that the economic recovery was accelerating faster
than expected. Although stocks had been rising since late March, the catalyst
for the bond market appeared to be the Federal Reserve Board's decision on June
25 to lower rates by one-quarter percent rather than one-half percent as many
investors had expected. From that date through the end of August, bond rates
rose sharply. Rates came back down slightly in the final weeks of the period.
Municipal bonds in general slightly outperformed Treasuries over the period, as
municipal bond yields were largely unchanged or modestly lower, while Treasury
yields were generally higher across the yield curve. (The principal value and
interest on U.S. Treasury securities, are guaranteed by the U.S. government if
held to maturity.)
HOW WE MANAGE THE FUNDS
All of the MFS state municipal funds are managed with a common investment
strategy. There are four key elements to our management strategy: duration,
yield curve positioning, credit quality, and sector allocation.
DURATION is a measure of a fund's sensitivity to changes in interest rates. In
most market environments, we strive to be neutral in duration relative to our
Lipper peers, as we believe that trying to predict the direction of interest
rates is a relatively risky investment strategy. However, at times when we
believe that interest rates have become excessively low - as we felt they did
over the period - and may be about to reverse direction, we may try to protect a
fund's principal by making the fund modestly short on duration relative to its
Lipper peers.
A YIELD CURVE for bonds shows the relationship between yield and time to
maturity. In a majority of market environments, longer-maturity bonds offer
higher yields but are more exposed to duration risk - the risk that a change in
interest rates may adversely affect a bond's price. In managing the funds, we
try to pick what we believe is the optimal spot on the yield curve - a time to
maturity that optimizes the combination of yield and risk. Our research for some
time has indicated that the 15- to 20-year part of the yield curve is that
optimal spot. For example, in our experience a 20-year bond typically has paid
98% of the yield of a similar 30-year bond but carried only 75%-80% of the
duration risk of that 30-year bond. For that reason, the funds have tended to be
overweighted in bonds with maturities in the 15- to 20-year range.
CREDIT QUALITY refers to the perceived ability of a bond issuer to make interest
payments and repay a bond's principal. Major credit-rating agencies rate bonds
on a scale that usually runs from "AAA" down to "BBB" for investment-grade
bonds, and "BB" and below for lower-quality, noninvestment- grade or so-called
"junk" bonds. In general, lower-rated bonds pay higher rates of interest to
compensate investors for taking on additional risk. The funds historically have
focused on using our bottom-up research to seek out bonds that offer higher
yields than average "AAA"-rated insured bonds, yet also offer what we believe is
reasonable safety of principal and interest payments to maturity.
SECTOR ALLOCATION refers to a fund's weightings in various types of municipal
bond issues, including bonds from industries such as health care, utilities, and
airlines. Our research analysts constantly seek out sectors, and individual
bonds within those sectors, that we believe will benefit in a given market
environment.
FACTORS THAT AFFECTED PERFORMANCE
For the six-month period ended September 30, 2003, the following charts indicate
the effects of the four factors mentioned above on individual fund performance.
These factors may affect fund performance in different ways during other
periods, depending on market conditions.
The first chart depicts performance relative to the fund's benchmark, the Lehman
Brothers Municipal Bond Index (the Lehman Index).
o The DURATION column indicates that the fund's duration had a positive
effect ("pos"), a negative effect ("neg"), or no meaningful contribution
to relative performance ("neutral"). For the period, all of the funds
were short on duration, relative to the Lehman Index, in anticipation of
rising rates. Because short- term interest rates fell slightly while
long-term rates were relatively stable, being short on duration modestly
hurt performance of all the funds.
o YIELD CURVE indicates the effect of the fund's yield curve positioning on
performance. Over the period, bonds in the middle part of the yield curve
- 10 to 20 years to maturity - saw the strongest performance. For that
reason, the funds' overweighting in the 15- to 20-year area, relative to
the Lehman Index, helped performance of all funds.
o The average CREDIT QUALITY of most of the funds was similar to that of
the Lehman Index over the period. The effect of credit quality on
relative performance was therefore neutral. The Virginia fund, however,
was overweighted in higher-quality bonds, which outperformed over the
period. For that fund, credit quality had a positive effect on relative
performance.
o In the area of SECTOR ALLOCATION, funds that were overweighted in
credit-enhanced, or insured, bonds saw a positive effect on relative
performance. Insured bonds generally pay a lower rate of interest but
have a high credit rating because the payment of interest and principal
is guaranteed by a highly rated insurance firm as well as by the original
issuer. Most of the insured bonds in the portfolios are "AAA"-rated.
KEY FACTORS IN FUND PERFORMANCE RELATIVE TO BENCHMARK
(THE LEHMAN BROTHERS MUNICIPAL BOND INDEX)
- ----------------------------------------------------------------------------
YIELD CREDIT SECTOR
STATE FUND DURATION CURVE QUALITY ALLOCATION
- ----------------------------------------------------------------------------
MISSISSIPPI neg pos neutral pos
- ----------------------------------------------------------------------------
NEW YORK neg pos neutral pos
- ----------------------------------------------------------------------------
NORTH CAROLINA neg pos neutral pos
- ----------------------------------------------------------------------------
PENNSYLVANIA neg pos neutral pos
- ----------------------------------------------------------------------------
SOUTH CAROLINA neg pos neutral pos
- ----------------------------------------------------------------------------
TENNESSEE neg pos neutral pos
- ----------------------------------------------------------------------------
VIRGINIA neg pos pos pos
- ----------------------------------------------------------------------------
WEST VIRGINIA neg pos neutral pos
- ----------------------------------------------------------------------------
The second chart depicts performance relative to each fund's Lipper peer group,
which consists of other state municipal funds within the same state or group of
states. (Please see the Performance Summary for each fund's actual Lipper
category.)
o Funds that had a positive DURATION effect were somewhat longer in
duration (more sensitive to interest rate changes) than their peers and
benefited from the modest decline in short-term interest rates.
Conversely, funds that were negatively affected by duration were short
relative to their peers and benefited less, or not at all, from the fall
in rates. Neutral indicates no meaningful effect on performance relative
to a fund's peers
o As mentioned earlier, the intermediate part of the YIELD CURVE saw the
strongest performance over the period. Funds that were overweighted in
that part of the curve, relative to their peers, saw a benefit from yield
curve positioning.
o As with performance against the Lehman Index, an overweighting in bonds
of higher CREDIT QUALITY was positive for performance, while an
underweighting in that area hurt relative performance.
o Credit-enhanced (insured) bonds were among the strongest performers over
the period. Funds that were overweighted in this SECTOR, relative to
their peers, saw a positive effect on performance.
KEY FACTORS IN FUND PERFORMANCE
RELATIVE TO LIPPER PEER GROUPS (OTHER FUNDS IN SAME STATE)
- ----------------------------------------------------------------------------
YIELD CREDIT SECTOR
STATE FUND DURATION CURVE QUALITY ALLOCATION
- ----------------------------------------------------------------------------
MISSISSIPPI pos neutral neg pos
- ----------------------------------------------------------------------------
NEW YORK neg neutral neg neutral
- ----------------------------------------------------------------------------
NORTH CAROLINA neg pos neutral neutral
- ----------------------------------------------------------------------------
PENNSYLVANIA neg pos neg pos
- ----------------------------------------------------------------------------
SOUTH CAROLINA neg neutral neg pos
- ----------------------------------------------------------------------------
TENNESSEE neutral neutral neutral pos
- ----------------------------------------------------------------------------
VIRGINIA neutral neutral neg pos
- ----------------------------------------------------------------------------
WEST VIRGINIA neg pos pos neutral
- ----------------------------------------------------------------------------
/s/ Michael L. Dawson /s/ Geoffrey L. Schechter
Michael L. Dawson Geoffrey L. Schechter
Portfolio Manager Portfolio Manager
The opinions expressed in this report are those of the portfolio managers and
are current only through the end of the period of the report as stated on the
cover. These views are subject to change at any time based on market and other
conditions, and no forecasts can be guaranteed.
The portfolios are actively managed, and current holdings may be different.
- --------------------------------------------------------------------------------
PERFORMANCE SUMMARY THROUGH 9/30/03 MFS(R) MISSISSIPPI MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Because mutual funds are designed for investors with long-term goals, we have
provided cumulative results as well as the average annual total returns for each
fund over the applicable time periods. Performance results reflect the
percentage change in net asset value, including the reinvestment of dividends
and capital gains distributions. Each fund's results have been compared to the
average relevant state municipal debt fund tracked by Lipper Inc., an
independent firm that reports mutual fund performance. For those states where
Lipper does not track state-specific fund performance, we have provided the
average "other state" municipal debt fund returns. Each fund's results have also
been compared to the Lehman Brothers Municipal Bond Index, a broad measure of
the municipal bond market. However, while this index is considered the benchmark
for the performance of municipal bond funds, it is comprised of municipal bonds
issued nationwide, while each of the funds is limited to investing in the bonds
of a particular state. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. (See
Notes to Performance Summary.) It is not possible to invest directly in an
index.
TOTAL RETURNS
--------------------
Average annual
without sales charge
--------------------
Share class Inception date 6-mo 1-yr 3-yr 5-yr 10-yr
- ------------------------------------------------------------------------------
A 8/6/1992 -- 3.46% 7.14% 5.13% 5.53%
- ------------------------------------------------------------------------------
B 9/7/1993 -- 2.48% 6.26% 4.28% 4.67%
- ------------------------------------------------------------------------------
Comparative Benchmarks
--------------------
Average annual
--------------------
- ------------------------------------------------------------------------------
Average other state municipal
debt fund+ 2.01% 2.39% 6.21% 4.17% 4.73%
- ------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index# 2.66% 3.89% 7.71% 5.67% 6.03%
- ------------------------------------------------------------------------------
- -----------------
Average annual
with sales charge
- -----------------
A -- -1.45% 5.41% 4.11% 5.02%
- ------------------------------------------------------------------------------
B -- -1.47% 5.36% 3.94% 4.67%
- --------------------
Cumulative
without sales charge
- --------------------
- ------------------------------------------------------------------------------
A 2.66% 3.46% 22.98% 28.43% 71.30%
- ------------------------------------------------------------------------------
B 2.11% 2.48% 19.97% 23.33% 57.82%
- ------------------------------------------------------------------------------
Periods less than one year are actual, not annualized.
+ Source: Lipper Inc.
# Source: Standard & Poor's Micropal, Inc.
- -------------------------------------------------------------------------------
PERFORMANCE SUMMARY THROUGH 9/30/03 MFS(R) NEW YORK MUNICIPAL BOND FUND
- -------------------------------------------------------------------------------
TOTAL RETURNS
--------------------
Average annual
without sales charge
--------------------
Share class Inception date 6-mo 1-yr 3-yr 5-yr 10-yr
- ------------------------------------------------------------------------------
A 6/6/1988 -- 3.11% 7.52% 5.15% 5.43%
- ------------------------------------------------------------------------------
B 9/7/1993 -- 2.34% 6.63% 4.31% 4.60%
- ------------------------------------------------------------------------------
C 12/11/2000 -- 2.43% 6.75% 4.69% 5.20%
- ------------------------------------------------------------------------------
Comparative Benchmarks
--------------------
Average annual
--------------------
- ------------------------------------------------------------------------------
Average New York municipal debt
fund+ 2.54% 2.75% 6.86% 4.45% 5.07%
- ------------------------------------------------------------------------------
Lehman Brothers Municipal Bond
Index# 2.66% 3.89% 7.71% 5.67% 6.03%
- ------------------------------------------------------------------------------
- -----------------
Average annual
with sales charge
- -----------------
- ------------------------------------------------------------------------------
A -- -1.78% 5.79% 4.13% 4.91%
- ------------------------------------------------------------------------------
B -- -1.60% 5.74% 3.97% 4.60%
- ------------------------------------------------------------------------------
C -- 1.45% 6.75% 4.69% 5.20%
- ------------------------------------------------------------------------------
- --------------------
Cumulative
without sales charge
- --------------------
- ------------------------------------------------------------------------------
A 2.26% 3.11% 24.30% 28.52% 69.62%
- ------------------------------------------------------------------------------
B 1.97% 2.34% 21.24% 23.50% 56.78%
- ------------------------------------------------------------------------------
C 1.97% 2.43% 21.63% 25.76% 65.97%
- ------------------------------------------------------------------------------
Periods less than one year are actual, not annualized.
+ Source: Lipper Inc.
# Source: Standard & Poor's Micropal, Inc.
- -------------------------------------------------------------------------------
PERFORMANCE SUMMARY THROUGH 9/30/03 MFS(R) NORTH CAROLINA MUNICIPAL BOND FUND
- -------------------------------------------------------------------------------
TOTAL RETURNS
--------------------
Average annual
without sales charge
--------------------
- ------------------------------------------------------------------------------
Share class Inception date 6-mo 1-yr 3-yr 5-yr 10-yr
- ------------------------------------------------------------------------------
A 10/31/1984 -- 3.43% 7.24% 4.82% 5.10%
- ------------------------------------------------------------------------------
B 9/7/1993 -- 2.76% 6.55% 4.15% 4.39%
- ------------------------------------------------------------------------------
C 1/03/1994 -- 2.76% 6.55% 4.15% 4.42%
--------------------
Average annual
--------------------
Comparative Benchmarks
- ------------------------------------------------------------------------------
Average North Carolina municipal
debt fund+ 2.13% 2.98% 6.73% 4.38% 4.93%
- ------------------------------------------------------------------------------
Lehman Brothers Municipal Bond
Index# 2.66% 3.89% 7.71% 5.67% 6.03%
- ------------------------------------------------------------------------------
--------------------
Average annual
with sales charge
--------------------
- ------------------------------------------------------------------------------
A -- -1.49% 5.51% 3.81% 4.59%
- ------------------------------------------------------------------------------
B -- -1.20% 5.66% 3.81% 4.39%
- ------------------------------------------------------------------------------
C -- 1.77% 6.55% 4.15% 4.42%
- ------------------------------------------------------------------------------
--------------------
Cumulative
without sales charge
--------------------
- ------------------------------------------------------------------------------
A 2.53% 3.43% 23.31% 26.55% 64.52%
- ------------------------------------------------------------------------------
B 2.20% 2.76% 20.95% 22.53% 53.68%
- ------------------------------------------------------------------------------
C 2.20% 2.76% 20.95% 22.53% 54.14%
- ------------------------------------------------------------------------------
Periods less than one year are actual, not annualized.
+ Source: Lipper Inc.
# Source: Standard & Poor's Micropal, Inc.
- -------------------------------------------------------------------------------
PERFORMANCE SUMMARY THROUGH 9/30/03 MFS(R) PENNSYLVANIA MUNICIPAL BOND FUND
- -------------------------------------------------------------------------------
TOTAL RETURNS
--------------------
Average annual
without sales charge
--------------------
Share class Inception date 6-mo 1-yr 3-yr 5-yr 10-yr
- ------------------------------------------------------------------------------
A 2/1/1993 -- 3.13% 7.72% 5.44% 5.62%
- ------------------------------------------------------------------------------
B 9/7/1993 -- 2.38% 6.82% 4.60% 4.77%
- ------------------------------------------------------------------------------
--------------------
Average annual
--------------------
Comparative Benchmarks
- ------------------------------------------------------------------------------
Average Pennsylvania municipal
debt fund+ 2.33% 3.03% 6.68% 4.26% 4.98%
- ------------------------------------------------------------------------------
Lehman Brothers Municipal Bond
Index# 2.66% 3.89% 7.71% 5.67% 6.03%
- ------------------------------------------------------------------------------
--------------------
Average annual
with sales charge
--------------------
- ------------------------------------------------------------------------------
A -- -1.77% 5.99% 4.42% 5.11%
- ------------------------------------------------------------------------------
B -- -1.57% 5.94% 4.26% 4.77%
- ------------------------------------------------------------------------------
--------------------
Cumulative
without sales charge
--------------------
- ------------------------------------------------------------------------------
A 2.35% 3.13% 25.00% 30.34% 72.79%
- ------------------------------------------------------------------------------
B 2.02% 2.38% 21.89% 25.20% 59.30%
- ------------------------------------------------------------------------------
Periods less than one year are actual, not annualized.
+ Source: Lipper Inc.
# Source: Standard & Poor's Micropal, Inc.
- ------------------------------------------------------------------------------
PERFORMANCE SUMMARY THROUGH 9/30/03 MFS(R) SOUTH CAROLINA MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------
TOTAL RETURNS
--------------------
Average annual
without sales charge
--------------------
Share class Inception date 6-mo 1-yr 3-yr 5-yr 10-yr
- ------------------------------------------------------------------------------
A 10/31/1984 -- 3.78% 7.47% 4.75% 5.08%
- ------------------------------------------------------------------------------
B 9/7/1993 -- 3.11% 6.78% 4.08% 4.36%
- ------------------------------------------------------------------------------
--------------------
Average annual
--------------------
Comparative Benchmarks
- ------------------------------------------------------------------------------
Average South Carolina
municipal debt fund+ 2.47% 3.16% 6.77% 4.29% 4.68%
- ------------------------------------------------------------------------------
Lehman Brothers Municipal Bond
Index# 2.66% 3.89% 7.71% 5.67% 6.03%
- ------------------------------------------------------------------------------
--------------------
Average annual
with sales charge
--------------------
- ------------------------------------------------------------------------------
A -- -1.15% 5.74% 3.74% 4.57%
- ------------------------------------------------------------------------------
B -- -0.86% 5.90% 3.74% 4.36%
- ------------------------------------------------------------------------------
--------------------
Cumulative
without sales charge
--------------------
- ------------------------------------------------------------------------------
A 2.73% 3.78% 24.13% 26.13% 64.09%
- ------------------------------------------------------------------------------
B 2.40% 3.11% 21.75% 22.12% 53.29%
- ------------------------------------------------------------------------------
Periods less than one year are actual, not annualized.
+ Source: Lipper Inc.
# Source: Standard & Poor's Micropal, Inc.
- ------------------------------------------------------------------------------
PERFORMANCE SUMMARY THROUGH 9/30/03 MFS(R) TENNESSEE MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------
TOTAL RETURNS
--------------------
Average annual
without sales charge
--------------------
Share class Inception date 6-mo 1-yr 3-yr 5-yr 10-yr
- ------------------------------------------------------------------------------
A 8/12/1988 -- 3.57% 7.16% 4.77% 5.24%
- ------------------------------------------------------------------------------
B 9/7/1993 -- 2.90% 6.47% 4.09% 4.54%
- ------------------------------------------------------------------------------
--------------------
Average annual
--------------------
Comparative Benchmarks
- ------------------------------------------------------------------------------
Average Tennessee municipal
debt fund+ 2.24% 3.25% 6.80% 4.55% 4.84%
- ------------------------------------------------------------------------------
Lehman Brothers Municipal Bond
Index# 2.66% 3.89% 7.71% 5.67% 6.03%
- ------------------------------------------------------------------------------
--------------------
Average annual
with sales charge
--------------------
- ------------------------------------------------------------------------------
A -- -1.35% 5.43% 3.75% 4.73%
- ------------------------------------------------------------------------------
B -- -1.07% 5.58% 3.75% 4.54%
- ------------------------------------------------------------------------------
--------------------
Cumulative
without sales charge
--------------------
- ------------------------------------------------------------------------------
A 2.59% 3.57% 23.05% 26.22% 66.67%
- ------------------------------------------------------------------------------
B 2.26% 2.90% 20.69% 22.21% 55.82%
- ------------------------------------------------------------------------------
Periods less than one year are actual, not annualized.
+ Source: Lipper Inc.
# Source: Standard & Poor's Micropal, Inc.
- ------------------------------------------------------------------------------
PERFORMANCE SUMMARY THROUGH 9/30/03 MFS(R) VIRGINIA MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------
TOTAL RETURNS
--------------------
Average annual
without sales charge
--------------------
Share class Inception date 6-mo 1-yr 3-yr 5-yr 10-yr
- ------------------------------------------------------------------------------
A 10/31/1984 -- 3.85% 6.93% 4.73% 4.87%
- ------------------------------------------------------------------------------
B 9/7/1993 -- 3.09% 6.25% 4.06% 4.17%
- ------------------------------------------------------------------------------
C 1/3/1994 -- 3.09% 6.21% 4.04% 4.19%
- ------------------------------------------------------------------------------
--------------------
Average annual
--------------------
Comparative Benchmarks
- ------------------------------------------------------------------------------
Average Virginia municipal debt
fund+ 2.39% 3.00% 6.48% 4.36% 4.99%
- ------------------------------------------------------------------------------
Lehman Brothers Municipal Bond
Index# 2.66% 3.89% 7.71% 5.67% 6.03%
- ------------------------------------------------------------------------------
--------------------
Average annual
with sales charge
--------------------
- ------------------------------------------------------------------------------
A -- -1.09% 5.21% 3.72% 4.37%
- ------------------------------------------------------------------------------
B -- -0.88% 5.36% 3.72% 4.17%
- ------------------------------------------------------------------------------
C -- 2.10% 6.21% 4.04% 4.19%
- ------------------------------------------------------------------------------
--------------------
Cumulative
without sales charge
--------------------
- ------------------------------------------------------------------------------
A 2.91% 3.85% 22.28% 26.01% 60.96%
- ------------------------------------------------------------------------------
B 2.57% 3.09% 19.94% 22.02% 50.52%
- ------------------------------------------------------------------------------
C 2.49% 3.09% 19.82% 21.89% 50.75%
- ------------------------------------------------------------------------------
Periods less than one year are actual, not annualized.
+ Source: Lipper Inc.
# Source: Standard & Poor's Micropal, Inc.
- ------------------------------------------------------------------------------
PERFORMANCE SUMMARY THROUGH 9/30/03 MFS(R) WEST VIRGINIA MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------
TOTAL RETURNS
--------------------
Average annual
without sales charge
--------------------
Share class Inception date 6-mo 1-yr 3-yr 5-yr 10-yr
- ------------------------------------------------------------------------------
A 10/31/1984 -- 3.45% 7.12% 4.76% 5.04%
- ------------------------------------------------------------------------------
B 9/7/1993 -- 2.86% 6.42% 4.11% 4.33%
- ------------------------------------------------------------------------------
--------------------
Average annual
--------------------
Comparative Benchmarks
- ------------------------------------------------------------------------------
Average other state municipal
debt fund+ 2.01% 2.39% 6.21% 4.17% 4.73%
- ------------------------------------------------------------------------------
Lehman Brothers Municipal Bond
Index# 2.66% 3.89% 7.71% 5.67% 6.03%
- ------------------------------------------------------------------------------
--------------------
Average annual
with sales charge
--------------------
- ------------------------------------------------------------------------------
A -- -1.47% 5.39% 3.75% 4.53%
- ------------------------------------------------------------------------------
B -- -1.09% 5.53% 3.77% 4.33%
- ------------------------------------------------------------------------------
--------------------
Cumulative
without sales charge
--------------------
- ------------------------------------------------------------------------------
A
2.40% 3.45% 22.90% 26.20% 63.44%
- ------------------------------------------------------------------------------
B
2.16% 2.86% 20.53% 22.28% 52.80%
- ------------------------------------------------------------------------------
Periods less than one year are actual, not annualized.
+ Source: Lipper Inc.
# Source: Standard & Poor's Micropal, Inc.
- --------------------------------------------------------------------------------
NOTES TO PERFORMANCE SUMMARY AND RISK CONSIDERATIONS
- --------------------------------------------------------------------------------
NOTES TO PERFORMANCE SUMMARY
Class A share performance, including sales charge, reflects the deduction of the
maximum 4.75% sales charge. Class B share performance, including sales charge,
reflects the deduction of the applicable contingent deferred sales charge
(CDSC), which declines over six years from 4% to 0%.
For those funds listed above that offer Class C shares, Class C results,
including sales charge, redeemed within one year from the end of the calendar
month of purchase reflects the deduction of the 1% CDSC.
Performance for share classes initially offered after Class A shares includes
the performance of the funds' Class A shares for periods prior to their
offering. Blended class performance has been adjusted to take into account
differences in sales loads, if any, applicable to these share classes, but has
not been adjusted to take into account differences in class specific operating
expenses (such as Rule 12b-1 fees). Compared to performance these share classes
would have experienced had they been offered for the entire period, the use of
blended performance generally results in higher performance for share classes
with higher operating expenses than the initial share class, and lower
performance for share classes with lower operating expenses than the initial
share class.
All performance results reflect any applicable expense subsidies and waivers in
effect during the periods shown; without these, the results would have been less
favorable. See the prospectus and financial statements for details. All results
are historical and assume the reinvestment of dividends and capital gains.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND SHARES, WHEN REDEEMED,
MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS, AND THE PERFORMANCE SHOWN DOES NOT REFLECT THE
DEDUCTION OF TAXES, IF ANY, THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS
OR THE REDEMPTION OF FUND SHARES.
MARKET VOLATILITY CAN SIGNIFICANTLY AFFECT SHORT-TERM PERFORMANCE, AND MORE
RECENT RETURNS MAY BE DIFFERENT FROM THOSE SHOWN. VISIT WWW.MFS.COM FOR MORE
CURRENT PERFORMANCE RESULTS.
KEY RISK CONSIDERATIONS
A small portion of income may be subject to state, federal, and/or alternative
minimum tax. Capital gains, if any, are subject to a capital gains tax.
If you are not a resident of the state to which the fund is targeted, the state
tax exemption will not apply.
Investments in high yield or lower-rated securities may provide greater returns
but are subject to greater-than-average risk.
By concentrating in one state, the portfolio is more susceptible to adverse
economic, political or regulatory developments affecting that state than is a
portfolio that invests more broadly.
Because the portfolio invests in a limited number of companies a change in one
security's value may have a more significant effect on the portfolio's value.
These risks may increase share price volatility. Please see the prospectus for
further information regarding these and other risk considerations.
This report is prepared for the general information of shareholders. It is
authorized for distribution to prospective investors only when preceded or
accompanied by a current prospectus.
- -----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited) - 9/30/ 03 MFS(R) MISSISSIPPI MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------------------------------------------------------
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset
classes.
Municipal Bonds - 97.1%
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
ISSUER (000 Omitted) $ VALUE
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - General
Purpose - 8.8% Hinds County, MS, MBIA, 6.25s, 2010 $1,660 $1,971,466
- -----------------------------------------------------------------------------------------------------------------------------
Hinds County, MS, MBIA, 6.25s, 2011 1,285 1,533,570
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Development Bank Special
Obligation (Jackson, Mississippi), FSA,
5.25s, 2018 600 675,846
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Development Bank Special
Obligation (Jackson, Mississippi), FSA,
5.25s, 2019 1,260 1,413,481
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Development Bank Special
Obligation (Jackson, Mississippi), FSA,
5.25s, 2020 620 692,707
- -----------------------------------------------------------------------------------------------------------------------------
Rankin County, MS, School District, MBIA,
5.5s, 2014 1,090 1,250,666
- -----------------------------------------------------------------------------------------------------------------------------
State of Mississippi, "A", 5.1s, 2011 430 485,801
- -----------------------------------------------------------------------------------------------------------------------------
State of Mississippi, "A", 5.375s, 2011 800 919,968
- -----------------------------------------------------------------------------------------------------------------------------
$8,943,505
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Commonwealth of Puerto Rico, RITES, FGIC,
Improvement - 12.2% 9.29s, 2016+(++) $3,110 $4,162,175
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Development Bank Special
Obligation (Madison County, Mississippi),
AMBAC, 5.1s, 2018 1,010 1,083,579
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency,
RITES, FSA, 9.145s, 2017+(++) 750 928,170
- -----------------------------------------------------------------------------------------------------------------------------
State of Mississippi, 6.75s, 2014(++) 1,800 1,919,142
- -----------------------------------------------------------------------------------------------------------------------------
State of Mississippi, 6s, 2018(++) 1,000 1,194,320
- -----------------------------------------------------------------------------------------------------------------------------
State of Mississippi, Capital Improvement,
5.5s, 2015(++) 750 873,945
- -----------------------------------------------------------------------------------------------------------------------------
State of Mississippi, Capital Improvement,
5.25s, 2017(++) 2,000 2,298,740
- -----------------------------------------------------------------------------------------------------------------------------
$12,460,071
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Biloxi, MS, Public School District, MBIA,
Schools - 7.3% 5s, 2021 $1,000 $1,034,120
- -----------------------------------------------------------------------------------------------------------------------------
Hinds County Michigan School District,
FSA, 5s, 2018 1,200 1,276,572
- -----------------------------------------------------------------------------------------------------------------------------
Jackson, MS, Public School District,
AMBAC, 5.75s, 2017 1,000 1,142,610
- -----------------------------------------------------------------------------------------------------------------------------
Jackson, MS, Public School District, "B",
0s, 2022 2,000 734,020
- -----------------------------------------------------------------------------------------------------------------------------
Jackson, MS, Public School District, "B",
0s, 2023 1,000 340,670
- -----------------------------------------------------------------------------------------------------------------------------
Madison County, MS, Public School
District, FSA, 5s, 2016 1,105 1,191,135
- -----------------------------------------------------------------------------------------------------------------------------
Madison County, MS, Public School
District, MBIA, 5.875s, 2016 1,500 1,715,220
- -----------------------------------------------------------------------------------------------------------------------------
$7,434,347
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Hospitals - Alcorn County, MS, Corinth Hospital Rev.
16.1% (Magnolia Regional Health Center), AMBAC,
5.75s, 2013 $1,000 $1,096,340
- -----------------------------------------------------------------------------------------------------------------------------
Corinth & Alcorn County, MS, Hospital Rev.
(Magnolia Regional Health Center), 5.5s,
2021 400 394,948
- -----------------------------------------------------------------------------------------------------------------------------
Gulfport, MS, Hospital Facilities Rev.
(Memorial Hospital), MBIA, 6.125s, 2015 2,250 2,369,610
- -----------------------------------------------------------------------------------------------------------------------------
Gulfport, MS, Hospital Facilities Rev.
(Memorial Hospital), MBIA, 6.2s, 2018 1,000 1,053,720
- -----------------------------------------------------------------------------------------------------------------------------
Gulfport, MS, Hosptial Facilities Rev.
(Memorial Hospital), 5.75s, 2031 1,000 1,021,860
- -----------------------------------------------------------------------------------------------------------------------------
Hinds County, MS, Hospital Rev. (Methodist
Hospital & Rehabilitation Center), AMBAC,
5.6s, 2012 2,335 2,639,274
- -----------------------------------------------------------------------------------------------------------------------------
Jones County, MS, Hospital Rev. (South
Central Regional Medical Center),
5.5s, 2017 1,000 998,150
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Development Bank, Special
Obligation (Adams County Hospital), FSA,
5.75s, 2016 1,000 1,101,160
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Hospital Equipment &
Facilities Authority Rev., Refunding &
Improvement Hospital, 5.5s, 2019 250 251,755
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Hospital Equipment &
Facilities Authority Rev., Refunding &
Improvement Hospital, 5.75s, 2023 250 250,743
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Hospital Equipment &
Facilities Authority Rev. (Baptist), MBIA,
6.5s, 2010 1,190 1,299,730
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Hospital Equipment &
Facilities Authority Rev. (Baptist), MBIA,
6s, 2013 750 813,352
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Hospital Equipment &
Facilities Authority Rev. (Forrest County
General Hospital), FSA, 5.625s, 2020 1,000 1,098,900
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Hospital Equipment &
Facilities Authority Rev. (Rush Medical
Foundation), CONNIE LEE, 6.7s, 2018 2,000 2,025,460
- -----------------------------------------------------------------------------------------------------------------------------
$16,415,002
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Mississippi Business Finance Corp., Solid
Environmental Services - 0.4% Waster Disposal Rev. (Waste Management,
Inc.), 4.65s, 2027 $400 $402,596
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Jones County, MS, Solid Waste Disposal
Paper - 2.9% Rev. (International Paper Co.),
5.8s, 2021 $500 $502,515
- -----------------------------------------------------------------------------------------------------------------------------
Lowndes County, MS, Solid Waste Disposal &
Pollution Control Rev. (Weyerhauser Co.),
6.8s, 2022 1,250 1,451,587
- -----------------------------------------------------------------------------------------------------------------------------
Warren County, MS, Pollution Control Rev.
(International Paper), 6.6s, 2019 1,000 1,037,350
- -----------------------------------------------------------------------------------------------------------------------------
$2,991,452
- -----------------------------------------------------------------------------------------------------------------------------
Miscellaneous Revenue - Mississippi Development Bank, Special
Entertainment & Obligation, "A" (Diamond Lakes Utilities),
Tourism - 1.2% 6.25s, 2017 $1,250 $1,261,362
- -----------------------------------------------------------------------------------------------------------------------------
Multi-Family Housing Gulfport, MS, Community Development Urban
Revenue - 3.7% Renewal Rev. (Oakview Apartments), FNMA,
7.4s, 2025 $1,755 $1,795,207
- -----------------------------------------------------------------------------------------------------------------------------
Jackson, MS, Elderly Housing Corp.,
Mortgage Rev. (Delhaven Manor), "C", FHA,
7.375s, 2024 1,860 1,872,369
- -----------------------------------------------------------------------------------------------------------------------------
Ridgeland, MS, Urban Renewal, Multi-Family
Housing Rev. (Northbrook I & III
Apartments), 6.15s, 2019** 300 144,009
- -----------------------------------------------------------------------------------------------------------------------------
$3,811,585
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - Mississippi Home Corp. Rev., Single Family
State - 12.4% Rev., "A", GNMA, 6.3s, 2031 $375 $401,738
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Home Corp. Rev., Single Family
Rev., "A-2", GNMA, 5.3s, 2023 1,000 1,011,160
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Home Corp. Rev., Single Family
Rev., "A-2", GNMA, 6.95s, 2031 990 1,073,110
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Home Corp. Rev., Single Family
Rev., "A-2", GNMA, 6.5s, 2032 495 553,158
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Home Corp. Rev., Single Family
Rev., "B", GNMA, 6.5s, 2024 1,420 1,450,644
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Home Corp. Rev., Single Family
Rev., "B", GNMA, 6.625s, 2027 735 760,688
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Home Corp. Rev., Single Family
Rev., "B-2", GNMA, 6.375s, 2032 725 781,789
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Home Corp. Rev., Single Family
Rev., "B-2", GNMA, 6.45s, 2033 855 895,749
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Home Corp. Rev., Single Family
Rev., "C", 0s, 2013 4,920 3,306,634
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Home Corp. Rev., Single Family
Rev., "F", GNMA, 7.55s, 2027 444 467,856
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Housing Finance Authority Home
Mortgage Rev., "A", 4.75s, 2023 2,000 1,999,880
- -----------------------------------------------------------------------------------------------------------------------------
$12,702,406
- -----------------------------------------------------------------------------------------------------------------------------
State and Local Hinds Community College, MS, Conference
Appropriation - 10.6% and Training Center, 6.5s, 2014(++) $1,320 $1,385,670
- -----------------------------------------------------------------------------------------------------------------------------
Lamar County, MS, MBIA, 5.1s, 2021(++) 430 449,475
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Development Bank Special
Obligation (Correctional Facility), "A",
5.125s, 2025 1,000 1,028,140
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Development Bank Special
Obligation (Horn Lake Recreation
Facilities), AMBAC, 4.875s, 2018 495 518,240
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Development Bank Special
Obligation (Mississippi Hospital Rev.),
5.1s, 2020 1,000 1,035,200
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Development Bank Special
Obligation (Natchez Mississippi Convention
Center), AMBAC, 6s, 2021 750 872,850
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES,
AMBAC, 8.915s, 2013+(++) 500 653,940
- -----------------------------------------------------------------------------------------------------------------------------
Southhaven, MS, Mississippi Development
Bank Special Obligation (Recreation
Facilities), 5.875s, 2014 375 415,346
- -----------------------------------------------------------------------------------------------------------------------------
Southhaven, MS, Mississippi Development
Bank Special Obligation (Recreation
Facilities), 6.2s, 2020 400 453,784
- -----------------------------------------------------------------------------------------------------------------------------
State of Mississippi, Certificates of
Participation (Rehabilitation Services),
6.1s, 2014 1,990 2,010,736
- -----------------------------------------------------------------------------------------------------------------------------
Walnut, MS, Correctional Authority, AMBAC,
6s, 2019(++) 1,750 2,043,195
- -----------------------------------------------------------------------------------------------------------------------------
$10,866,576
- -----------------------------------------------------------------------------------------------------------------------------
Tax - 0.8% Mississippi Development Bank Special
Obligation (Tupelo Fairgrounds), AMBAC,
5s, 2017 $785 $832,053
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco - 0.5% Childrens Trust Fund, Settlement Rev.,
5.375s, 2033 $245 $218,937
- -----------------------------------------------------------------------------------------------------------------------------
Guam Economic Development Authority, 5.5s, 2041 350 302,718
- -----------------------------------------------------------------------------------------------------------------------------
$521,655
- -----------------------------------------------------------------------------------------------------------------------------
Transportation - Special Mississippi Development Bank Special
Tax - 1.2% Obligation, Madison County, Road & Bridge
Project, AMBAC, 5.1s, 2019 $1,175 $1,251,927
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Colleges - 6.3% Jackson State University Educational
Building Corp., Student Recreation Center,
AMBAC, 5.125s, 2027## $750 $763,365
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi University Educational
Building Corp., AMBAC, 5.5s, 2016 1,000 1,120,060
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi University Educational
Building Corp., AMBAC, 5s, 2021 250 258,845
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi University Educational
Building Corp. Rev. (University
Mississippi Medical Center), AMBAC, 5.5s, 2023 1,000 1,103,560
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Valley State University, MBIA,
5.5s, 2021 890 966,834
- -----------------------------------------------------------------------------------------------------------------------------
University of Mississippi, Educational
Building Corp. (Athletic Facilities),
6.2s, 2016 1,000 1,146,200
- -----------------------------------------------------------------------------------------------------------------------------
University of Mississippi Educational
Building Corp. (Performing Arts Center),
AMBAC, 5.25s, 2018 1,000 1,070,620
- -----------------------------------------------------------------------------------------------------------------------------
$6,429,484
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Investor Warren County, MS, Pollution Control Rev.
Owned - 2.2% (Mississippi Power & Light), 7s, 2022 $1,000 $1,028,170
- -----------------------------------------------------------------------------------------------------------------------------
Washington County, MS, Pollution Control
Rev. (Mississippi Power & Light),
7s, 2022 1,230 1,264,649
- -----------------------------------------------------------------------------------------------------------------------------
$2,292,819
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Municipal Guam Power Authority Rev., RITES, AMBAC,
Owned - 1.3% 8.636s, 2013+(++) $1,000 $1,227,940
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority,
Power Rev., FSA, 5.25s, 2015 80 88,281
- -----------------------------------------------------------------------------------------------------------------------------
$1,316,221
- -----------------------------------------------------------------------------------------------------------------------------
Water and Sewer Utility Gulfport, MS, Water & Sewer Rev., FSA,
Revenue - 8.1% 5.625s, 2024 $500 $545,645
- -----------------------------------------------------------------------------------------------------------------------------
Jackson, MS, Water & Sewer Systems Rev.,
FGIC, 5.25s, 2017 420 452,122
- -----------------------------------------------------------------------------------------------------------------------------
Meridian, MS, Water & Sewer Rev., AMBAC,
6.2s, 2012 650 688,408
- -----------------------------------------------------------------------------------------------------------------------------
Meridian, MS, Water & Sewer Rev., AMBAC,
6.2s, 2013 400 423,636
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Development Bank Special
Obligation (Comb Water Sewer & Solid Waste
Management), FSA, 5.25s, 2021 1,270 1,371,333
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Development Bank Special
Obligation (Comb Water Sewer & Solid Waste
Management), FSA, 5.05s, 2027 1,610 1,652,923
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Development Bank Special
Obligation (Gulfport Water & Sewer
Project), "A", FGIC, 5.25s, 2027 2,000 2,068,220
- -----------------------------------------------------------------------------------------------------------------------------
Mississippi Development Bank Special
Obligation (Wastewater & Solid Waste
Management), "A", FSA, 5.375s, 2017 1,000 1,103,220
- -----------------------------------------------------------------------------------------------------------------------------
$8,305,507
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Electric Mississippi Development Bank Special
Power - 1.1% Obligation (Okolona Electric System),
5.2s, 2016 $1,010 $1,092,204
- -----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Identified Cost, $92,831,973) $99,330,772
- -----------------------------------------------------------------------------------------------------------------------------
Floating Rate Demand Note - 2.7%
- -----------------------------------------------------------------------------------------------------------------------------
Jackson County, MS, Pollution Control Rev.
(Chevron USA, Inc.), due 10/01/03, at
Identified Cost $2,750 $2,750,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $95,581,973) $102,080,772
- -----------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 0.2% 223,196
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - 100.0% $102,303,968
- -----------------------------------------------------------------------------------------------------------------------------
See portfolio footnotes and notes to financial statements.
- -----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited) - 9/30/03 MFS(R) NEW YORK MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------------------------------------------------------
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset
classes.
Municipal Bonds - 97.4%
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
ISSUER (000 Omitted) $ VALUE
- -----------------------------------------------------------------------------------------------------------------------------
Airport and Port Port Authority NY & NJ, (131st Street
Revenue - 2.2% Service), 5s, 2020 $1,500 $1,557,360
- -----------------------------------------------------------------------------------------------------------------------------
Port Authority NY & NJ, Special Obligation
Rev., MBIA, 5.5s, 2018 1,500 1,616,610
- -----------------------------------------------------------------------------------------------------------------------------
Port Authority NY & NJ, Special Obligation
Rev. (JFK International), MBIA,
6.25s, 2015 1,000 1,141,010
- -----------------------------------------------------------------------------------------------------------------------------
$4,314,980
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations -
General Purpose - 9.1% New York, NY, 7.2s, 2004(+++) $1,000 $1,063,720
- -----------------------------------------------------------------------------------------------------------------------------
New York, NY, 7.3s, 2004(+++) 5,880 6,259,730
- -----------------------------------------------------------------------------------------------------------------------------
New York, NY, 7.375s, 2004(+++) 1,600 1,704,368
- -----------------------------------------------------------------------------------------------------------------------------
New York, NY, 5.5s, 2015 1,000 1,093,310
- -----------------------------------------------------------------------------------------------------------------------------
New York, NY, 5.375s, 2017 1,250 1,322,388
- -----------------------------------------------------------------------------------------------------------------------------
New York, NY, 6s, 2019 1,000 1,098,390
- -----------------------------------------------------------------------------------------------------------------------------
New York, NY, FGIC, 5.5s, 2026 2,100 2,224,005
- -----------------------------------------------------------------------------------------------------------------------------
Niagara Falls, NY, FGIC, 5.5s, 2008 1,025 1,048,760
- -----------------------------------------------------------------------------------------------------------------------------
State of New York, 5.7s, 2005(+++) 1,000 1,078,100
- -----------------------------------------------------------------------------------------------------------------------------
State of New York, AMBAC, 6s, 2004(+++) 1,000 1,055,370
- -----------------------------------------------------------------------------------------------------------------------------
$17,948,141
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations -
Improvement - 1.0 Commonwealth of Puerto Rico, ROLs, XLCA,
9.756s, 2017+(++) $1,350 $1,777,680
- -----------------------------------------------------------------------------------------------------------------------------
Erie County, NY, Public Improvement, FGIC,
5s, 2019 140 148,144
- -----------------------------------------------------------------------------------------------------------------------------
$1,925,824
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Arlington, NY, Central School District,
Schools - 6.4% FSA, 5s, 2021 $1,000 $1,049,860
- -----------------------------------------------------------------------------------------------------------------------------
Genesee Valley, NY, Central School
District (Angelica Belmont), FGIC,
5.25s, 2028 1,720 1,794,871
- -----------------------------------------------------------------------------------------------------------------------------
North Babylon, NY, Union Free School
District, FGIC, 5.5s, 2018 2,415 2,674,105
- -----------------------------------------------------------------------------------------------------------------------------
Panama, NY, Central School District, FGIC,
5s, 2017 540 582,347
- -----------------------------------------------------------------------------------------------------------------------------
Panama, NY, Central School District, FGIC,
5s, 2018 570 609,923
- -----------------------------------------------------------------------------------------------------------------------------
Port Byron, NY, Central School District,
AMBAC, 7.4s, 2012(+++) 500 657,005
- -----------------------------------------------------------------------------------------------------------------------------
Port Byron, NY, Central School District,
AMBAC, 7.4s, 2013(+++) 500 666,000
- -----------------------------------------------------------------------------------------------------------------------------
Port Byron, NY, Central School District,
AMBAC, 7.4s, 2014(+++) 500 667,980
- -----------------------------------------------------------------------------------------------------------------------------
Port Byron, NY, Central School District,
AMBAC, 7.4s, 2015(+++) 500 675,500
- -----------------------------------------------------------------------------------------------------------------------------
Red Hook, NY, Central School District,
FSA, 5.125s, 2018 685 741,828
- -----------------------------------------------------------------------------------------------------------------------------
Rome, NY, City School District, FSA, 5.5s, 2019 1,000 1,100,170
- -----------------------------------------------------------------------------------------------------------------------------
Washingtonville, NY, Central School
District, FGIC, 7.35s, 2008 550 675,659
- -----------------------------------------------------------------------------------------------------------------------------
Washingtonville, NY, Central School
District, FGIC, 7.35s, 2009 550 687,186
- -----------------------------------------------------------------------------------------------------------------------------
$12,582,434
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Albany, NY, Industrial Development Agency,
Hospitals - 6.7% Civic Facility Rev., 8.25s, 2004 $320 $320,787
- -----------------------------------------------------------------------------------------------------------------------------
Chautauqua County, NY, Civic Facility Rev.
(Woman's Christian Assn.),
6.35s, 2017 190 191,184
- -----------------------------------------------------------------------------------------------------------------------------
Chautauqua County, NY, Civic Facility Rev.
(Woman's Christian Assn.),
6.4s, 2029 490 466,656
- -----------------------------------------------------------------------------------------------------------------------------
Fulton County, NY, Industrial Development
Agency, Civic Facility Rev. (Nathan
Littauer Hospital), 5.75s, 2009 750 740,152
- -----------------------------------------------------------------------------------------------------------------------------
Nassau County, NY, Industrial Development
Agency, Civic Facility Rev. (North Shore
Health Systems), 5.625s, 2010 500 551,630
- -----------------------------------------------------------------------------------------------------------------------------
Nassua County, NY, Health Systems Rev.
(Nassua County), FSA, 6s, 2014 1,000 1,173,650
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Health & Hospital Corp.
Rev., 5.25s, 2017 760 785,901
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Health & Hospital Corp.
Rev., FSA, 5.5s, 2015 1,000 1,119,570
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Industrial Development
Agency, Civic Facility Rev. (Staten Island
University Hospital), 6.375s, 2031 500 519,590
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority Rev. (North
Shore Long Island Jewish Group), 5.5s, 2033 250 255,155
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority Rev.
(Montefiore Medical Center), AMBAC,
5.25s, 2019 970 1,043,633
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority Rev. (St.
Vincent's Hospital), FHA, 7.375s, 2011 1,345 1,348,484
- -----------------------------------------------------------------------------------------------------------------------------
New York Medical Care Facilities Finance
Agency Rev., Mental Health Services
(Huntington Hospital Mortgage), 6.5s, 2004
(+++) 1,250 1,347,525
- -----------------------------------------------------------------------------------------------------------------------------
New York Medical Care Facilities Finance
Agency Rev. (Montefiore Medical Center),
AMBAC, 6.5s, 2005(+++) 1,550 1,697,110
- -----------------------------------------------------------------------------------------------------------------------------
Suffolk County, NY, Civic Facility Rev.
(Huntington Hospital Project),
5.875s, 2032 1,000 1,013,960
- -----------------------------------------------------------------------------------------------------------------------------
Yonkers, NY, Industrial Development
Agency, Civic Facility Rev. (St. John's
Riverside Hospital), 7.125s, 2031 500 514,905
- -----------------------------------------------------------------------------------------------------------------------------
$13,089,892
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Long Term Westchester County, NY, Industrial
Care - 0.2% Development Rev., Continuing Care
Retirement (Kendal On Hudson), 6.5s, 2034 $300 $298,818
- -----------------------------------------------------------------------------------------------------------------------------
Human Services - 0.7% Nassau County, NY, Industrial Development
Agency, Civic Facility Rev. (Special Needs
Facility), 6.5s, 2017 $205 $210,055
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority (Jewish Board
of Families & Children), AMBAC, 5s, 2023 695 713,515
- -----------------------------------------------------------------------------------------------------------------------------
New York, NY, Industrial Development
Agency (PSCH, Inc.), 6.375s, 2033 500 500,120
- -----------------------------------------------------------------------------------------------------------------------------
$1,423,690
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - New York Environmental Facilities Corp.,
Environmental Services - 0.5% Solid Waste Disposal Rev. (Waste
Management Project), 4s, 2012 $950 $955,320
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Onondaga County, NY, Industrial
Other - 0.6% Development Agency, Sewer Facilities Rev.
(Bristol-Meyers Squibb Co.), 5.75s, 2024 $1,000 $1,088,660
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Essex County, NY, Industrial Development
Paper - 1.3% Agency, Pollution Control Rev.
(International Paper Corp.), 5.55s, 2014 $750 $796,290
- -----------------------------------------------------------------------------------------------------------------------------
Essex County, NY, Industrial Development
Agency, Pollution Control Rev.
(International Paper Corp.), 6.15s, 2021 1,000 1,023,200
- -----------------------------------------------------------------------------------------------------------------------------
Essex County, NY, Industrial Development
Agency, Pollution Control Rev.
(International Paper Corp.), 6.45s, 2023 700 735,133
- -----------------------------------------------------------------------------------------------------------------------------
$2,554,623
- -----------------------------------------------------------------------------------------------------------------------------
Multi-Family Housing New York City, NY, Housing Development
Revenue - 1.3% Corp., Multi-Family Housing Rev., 5.6s, 2019 $400 $419,240
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Housing Development
Corp., Multi-Family Housing Rev., 5.5s, 2034 2,000 2,045,180
- -----------------------------------------------------------------------------------------------------------------------------
$2,464,420
- -----------------------------------------------------------------------------------------------------------------------------
Sales and Excise Tax Nassau, NY, Interm Finance Authority Rev.,
Revenue - 0.5% AMBAC, 5.375s, 2016 $405 $449,866
- -----------------------------------------------------------------------------------------------------------------------------
Schenectady, NY, Metroplex Development
Authority Rev., MBIA, 5.375s, 2021 475 513,964
- -----------------------------------------------------------------------------------------------------------------------------
$963,830
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue -
State - 3.4% New York Mortgage Agency Rev., 4.6s, 2015 $2,865 $2,951,953
- -----------------------------------------------------------------------------------------------------------------------------
New York Mortgage Agency Rev., 5.85s, 2018 1,960 2,071,681
- -----------------------------------------------------------------------------------------------------------------------------
New York Mortgage Agency Rev., 5.8s, 2020 1,555 1,629,406
- -----------------------------------------------------------------------------------------------------------------------------
$6,653,040
- -----------------------------------------------------------------------------------------------------------------------------
Solid Waste Revenue - 0.5% Niagara County, NY, Solid Waste Disposal
Rev., 5.625s, 2024 $850 $897,183
- -----------------------------------------------------------------------------------------------------------------------------
Oneida Herkimer, NY, Solid Waste
Management Systems Rev., 6.75s, 2014 60 61,411
- -----------------------------------------------------------------------------------------------------------------------------
Rockland County, NY, Solid Waste
Management Systems Rev., 4.8s, 2005 20 21,463
- -----------------------------------------------------------------------------------------------------------------------------
$980,057
- -----------------------------------------------------------------------------------------------------------------------------
State and Local Metropolitan Transportation Authority, NY,
Appropriation - 21.1% Service Contract, 7.375s, 2008(+++) $1,720 $1,976,143
- -----------------------------------------------------------------------------------------------------------------------------
Metropolitan Transportation Authority, NY,
Service Contract, AMBAC, 5.75s, 2013(+++) 825 954,302
- -----------------------------------------------------------------------------------------------------------------------------
Metropolitan Transportation Authority, NY,
Service Contract, FGIC, 5.875s, 2010(+++) 2,000 2,369,400
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority (Personal
Income Tax Education), 5.375s, 2022 1,000 1,064,680
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority, Mental
Health Services Facilities Improvement,
FSA, 5.25s, 2030 2020 1,000 1,023,570
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority, Mental
Health Services Facilities Improvement,
MBIA, 5.75s, 2020 2021 5 5,552
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority, Mental
Health Services Facilities Improvement,
MBIA, 5.25s, 2031 2022 2,000 2,051,820
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority (City
University), 5.625s, 2016 2013 2,450 2,827,961
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority (City
University), AMBAC, 5.75s, 2018 2015 800 952,760
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority (City
University), FSA, 5.75s, 2013 2016 3,000 3,530,340
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority (Judicial
Institute at Pace), AMBAC, 5.5s, 2020 2,500 2,749,625
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority (Master Boces
Program), FSA, 5.25s, 2019 1,000 1,078,150
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority (Pace
University), MBIA, 6s, 2019 1,700 1,969,025
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority (School
Districts Financing Program), MBIA,
5.5s, 2017 2,000 2,239,920
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority (Schools
Program), 6.25s, 2020 1,690 1,969,340
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority (State
University), 5.375s, 2010(+++) 1,500 1,749,195
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority (State
University), 5.875s, 2017 1,130 1,328,451
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority (Upstate
Community College), FSA, 6s, 2018 1,010 1,173,145
- -----------------------------------------------------------------------------------------------------------------------------
New York Medical Care Facilities Financing
Agency, MBIA, 6.375s, 2004(+++) 15 16,005
- -----------------------------------------------------------------------------------------------------------------------------
New York Medical Care Facilities Financing
Agency, MBIA, 6s, 2005(+++) 20 21,763
- -----------------------------------------------------------------------------------------------------------------------------
New York Municipal Bond Bank Special
Program, AMBAC, 5.25s, 2015 715 787,051
- -----------------------------------------------------------------------------------------------------------------------------
New York Urban Development Corp.
(Correctional Facilities), AMBAC, 0s, 2009 5,000 4,308,600
- -----------------------------------------------------------------------------------------------------------------------------
New York Urban Development Corp. (State
Facilities), AMBAC, 5.6s, 2015 2,750 3,218,077
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corp., 5.5s, 2018 2,000 2,138,040
- -----------------------------------------------------------------------------------------------------------------------------
$41,502,915
- -----------------------------------------------------------------------------------------------------------------------------
Tax Assesment - 0.5% 34th Street Partnership, Inc., Capital
Improvement (34th Street Business
Improvement), 5s, 2019 $1,000 $1,057,880
- -----------------------------------------------------------------------------------------------------------------------------
Tax - Other - 2.9% New York City, NY, Transitional Finance
Authority Rev., 5.75s, 2009(+++) $2,730 $3,254,651
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Transitional Finance
Authority Rev., 5s, 2026 1,000 1,011,080
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Transitional Finance
Authority Rev., MBIA, 5s, 2022 1,400 1,447,768
- -----------------------------------------------------------------------------------------------------------------------------
$5,713,499
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco - 0.6% Guam Economic Development Authority, 5.5s, 2041 $400 $345,964
- -----------------------------------------------------------------------------------------------------------------------------
New York County Tobacco Trust, 5.625s, 2035 800 725,240
- -----------------------------------------------------------------------------------------------------------------------------
$1,071,204
- -----------------------------------------------------------------------------------------------------------------------------
Toll Roads - 4.3% New York Thruway Authority, General Rev.,
Highway & Bridges, 5.25s, 2015 $1,500 $1,625,445
- -----------------------------------------------------------------------------------------------------------------------------
New York Thruway Authority, General Rev.,
Highway & Bridges, MBIA,
5.75s, 2009(+++) 1,000 1,181,390
- -----------------------------------------------------------------------------------------------------------------------------
Niagara Falls, NY, Bridge Commission Toll
Rev., RITES, FGIC, 9.178s, 2015+(++) 3,500 4,498,060
- -----------------------------------------------------------------------------------------------------------------------------
Triborough Bridge & Tunnel Authority Rev.,
NY, 6s, 2012(+++) 1,000 1,183,150
- -----------------------------------------------------------------------------------------------------------------------------
$8,488,045
- -----------------------------------------------------------------------------------------------------------------------------
Transportation - Special Metropolitan Transportation Authority
Tax - 10.9% Rev., NY, FGIC, 5s, 2025 $2,500 $2,539,200
- -----------------------------------------------------------------------------------------------------------------------------
Metropolitan Transportation Authority, NY,
Commuter Facilities Rev., FGIC, 5.25s,
2011(+++) 1,000 1,152,920
- -----------------------------------------------------------------------------------------------------------------------------
Metropolitan Transportation Authority, NY,
Dedicated Tax Fund Rev., FGIC, 5.25s, 2014
(+++) 500 556,530
- -----------------------------------------------------------------------------------------------------------------------------
Metropolitan Transportation Authority, NY,
Dedicated Tax Fund Rev.,
5.5s, 2015(+++) 750 879,173
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Dedicated Tax Fund
Rev., AMBAC, 5.25s, 2029 1,335 1,377,039
- -----------------------------------------------------------------------------------------------------------------------------
New York Thruway Authority, General Rev.,
Highway & Bridges, 5s, 2018 1,000 1,055,490
- -----------------------------------------------------------------------------------------------------------------------------
New York Thruway Authority, General Rev.,
Highway & Bridges, AMBAC, 5.375s, 2018 2,000 2,173,660
- -----------------------------------------------------------------------------------------------------------------------------
New York Thruway Authority, General Rev.,
Highway & Bridges, FGIC,
5.4s, 2017 2,000 2,193,380
- -----------------------------------------------------------------------------------------------------------------------------
New York Thruway Authority, General Rev.,
Highway & Bridges, FSA, 5.8s, 2018 20 22,711
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Highway & Transportation
Authority Rev., 6.25s, 2013 1,000 1,193,050
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Highway & Transportation
Authority Rev., 5s, 2036 1,700 1,702,516
- -----------------------------------------------------------------------------------------------------------------------------
Triborough Bridge & Tunnel Authority Rev.,
NY, RITES, 9.668s, 2017+(++) 5,000 6,606,200
- -----------------------------------------------------------------------------------------------------------------------------
$21,451,869
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Colleges - 4.2% Amherst, NY, Industrial Development Agency
Rev. (Daemen College), 6s, 2021 $1,000 $1,054,900
- -----------------------------------------------------------------------------------------------------------------------------
Cattaraugus County, NY, Industrial
Development Agency Rev. (Jamestown
Community College), 6.4s, 2019 500 562,410
- -----------------------------------------------------------------------------------------------------------------------------
Hempstead Town, NY, Civic Facility Rev.
(Hofstra University), MBIA, 5.8s, 2015 1,500 1,676,385
- -----------------------------------------------------------------------------------------------------------------------------
Islip, NY, Community Development Agency
Rev. (New York Institute of Technology),
7.5s, 2006(+++) 2,000 2,330,560
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority Rev. (Fordham
University), AMBAC, 7.2s, 2015 40 40,120
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority Rev. (St.
John's University), MBIA, 5s, 2017 300 322,248
- -----------------------------------------------------------------------------------------------------------------------------
Onondaga County, NY, Industrial
Development Agency Rev. (Le Moyne
College), 5.625s, 2021 750 804,795
- -----------------------------------------------------------------------------------------------------------------------------
Tompkins County, NY, Industrial
Development Agency Rev. (Cornell
University), 5.625s, 2010(+++) 1,000 1,184,150
- -----------------------------------------------------------------------------------------------------------------------------
Utica, NY, Industrial Development Agency
Rev. (Utica College), 5.3s, 2008 230 245,157
- -----------------------------------------------------------------------------------------------------------------------------
$8,220,725
- -----------------------------------------------------------------------------------------------------------------------------
Universities - New York Dormitory Authority Rev., FGIC,
Dormatories - 1.6% 5.25s, 2029 $1,825 $2,031,152
- -----------------------------------------------------------------------------------------------------------------------------
New York Dormitory Authority Rev.
(Columbia University), 5s, 2022 1,000 1,048,240
- -----------------------------------------------------------------------------------------------------------------------------
$3,079,392
- -----------------------------------------------------------------------------------------------------------------------------
Universities - New York City, NY, Industrial Development
Secondary Schools - 0.8% Agency, Civic Facility Rev. (Nightingale-
Bramford School), AMBAC, 5.25s, 2020 $1,440 $1,551,053
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Cogeneration - 0.5% Port Authority NY & NJ, Special
Obligation, 6.75s, 2011 $1,000 $1,050,510
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Investor New York Energy Research & Development
Owned - 1.4% Rev., 6.1s, 2020 $2,400 $2,572,680
- -----------------------------------------------------------------------------------------------------------------------------
New York Energy Research & Development
Rev. (Niagara Mohawk Power Co.), FGIC,
6.625s, 2013 250 250,863
- -----------------------------------------------------------------------------------------------------------------------------
$2,823,543
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Municipal Guam Power Authority Rev., RITES, AMBAC,
Owned - 3.2% 9.198s, 2014+(++) $500 $609,360
- -----------------------------------------------------------------------------------------------------------------------------
Long Island Power Authority, Electric
Systems Rev., 5.25s, 2014 1,000 1,097,210
- -----------------------------------------------------------------------------------------------------------------------------
Long Island Power Authority, Electric
Systems Rev., 5.5s, 2021 400 428,868
- -----------------------------------------------------------------------------------------------------------------------------
New York Power Authority Rev., 5s, 2021 1,000 1,041,840
- -----------------------------------------------------------------------------------------------------------------------------
New York Power Authority Rev., 5.25s, 2040 3,000 3,069,390
- -----------------------------------------------------------------------------------------------------------------------------
$6,246,668
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Other - 0.1% Virgin Islands Water & Power Authority
Rev., 5.5s, 2017 $200 $205,860
- -----------------------------------------------------------------------------------------------------------------------------
Water and Sewer Utility Revenue - Erie County, NY, Water Authority Rev.,
10.9% AMBAC, 6.75s, 2014(+++) $1,000 $1,244,210
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Municipal Water & Sewer
Finance Authority Rev., 6s, 2010 620 732,567
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Municipal Water & Sewer
Finance Authority Rev., 5s, 2027 1,500 1,515,270
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Municipal Water & Sewer
Finance Authority Rev., FGIC, 5.25s, 2033 2,000 2,062,520
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Municipal Water & Sewer
Finance Authority Rev., MBIA, 5.5s, 2027 1,250 1,311,400
- -----------------------------------------------------------------------------------------------------------------------------
New York Environmental Facilities, Clean
Water & Drinking Rev., 5s, 2024 1,000 1,025,960
- -----------------------------------------------------------------------------------------------------------------------------
New York Environmental Facilities,
Pollution Control Rev., 5.75s, 2010(+++) 2,060 2,435,703
- -----------------------------------------------------------------------------------------------------------------------------
New York Environmental Facilities,
Pollution Control Rev., 5.75s, 2010 175 205,412
- -----------------------------------------------------------------------------------------------------------------------------
New York Environmental Facilities,
Pollution Control Rev., 6.875s, 2010 220 220,814
- -----------------------------------------------------------------------------------------------------------------------------
New York Environmental Facilities,
Pollution Control Rev., 7.25s, 2010 70 70,287
- -----------------------------------------------------------------------------------------------------------------------------
New York Environmental Facilities, Water
Facilities Rev., 8.85s, 2015 2,500 2,585,225
- -----------------------------------------------------------------------------------------------------------------------------
New York Environmental Facilities, Water
Facilities Rev., 5.25s, 2020 1,000 1,078,710
- -----------------------------------------------------------------------------------------------------------------------------
New York Environmental Facilities, Water
Facilities Rev., 5s, 2023 1,500 1,551,675
- -----------------------------------------------------------------------------------------------------------------------------
New York Environmental Facilities, Water
Facilities Rev., 5s, 2025 1,500 1,532,760
- -----------------------------------------------------------------------------------------------------------------------------
New York Environmental Facilities, Water
Facilities Rev., 6s, 2031 1,005 1,055,461
- -----------------------------------------------------------------------------------------------------------------------------
New York Environmental Facilities, Water
Facilities Rev. (Spring Valley Water Co.),
AMBAC, 6.15s, 2024 1,500 1,590,525
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Aqueduct & Sewer Authority
Rev., 9s, 2005(+++) 180 200,763
- -----------------------------------------------------------------------------------------------------------------------------
Suffolk County, NY, Water Authority Rev.,
MBIA, 5.1s, 2012 895 1,004,306
- -----------------------------------------------------------------------------------------------------------------------------
$21,423,568
- -----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Identified Cost, $173,850,840) $191,130,460
- -----------------------------------------------------------------------------------------------------------------------------
Floating Rate Demand Notes - 1.2%
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Job Development
Authority Rev., due 10/01/03 $680 $680,000
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Municipal Water & Sewer
Finance Authority Rev.,
due 10/01/03 1,700 1,700,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Floating Rate Demand Notes, at Identified Cost $2,380,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $176,230,840) $193,510,460
- -----------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 1.4% 2,791,465
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - 100.0% $196,301,925
- -----------------------------------------------------------------------------------------------------------------------------
See portfolio footnotes and notes to financial statements.
- -----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited) - 9/30/03 MFS(R) NORTH CAROLINA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------------------------------------------------------
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset
classes.
Municipal Bonds - 98.1%
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
ISSUER (000 Omitted) $ VALUE
- -----------------------------------------------------------------------------------------------------------------------------
Airport and Port Charlotte, NC, Airport Authority Rev.,
Revenue - 2.0% MBIA, 5.875s, 2019 $1,000 $1,098,240
- -----------------------------------------------------------------------------------------------------------------------------
Charlotte, NC, Airport Authority Rev.,
MBIA, 5.875s, 2020 3,775 4,109,427
- -----------------------------------------------------------------------------------------------------------------------------
Raleigh Durham, NC, Airport Authority
Rev., FGIC, 5.25s, 2018 2,700 2,920,563
- -----------------------------------------------------------------------------------------------------------------------------
$8,128,230
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - General
Purpose - 0.9% Charlotte, NC, 5.5s, 2016 $3,100 $3,516,671
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Improvement
- - 2.4% Durham, NC, 5.9s, 2014 $2,400 $2,602,056
- -----------------------------------------------------------------------------------------------------------------------------
Mecklenburg County, NC, Public
Improvement, "A", 5s, 2017 1,000 1,086,660
- -----------------------------------------------------------------------------------------------------------------------------
New Hanover County, NC, Public
Improvement, 5.75s, 2017 1,000 1,163,270
- -----------------------------------------------------------------------------------------------------------------------------
New Hanover County, NC, Public
Improvement, 5.8s, 2019 4,200 4,844,112
- -----------------------------------------------------------------------------------------------------------------------------
$9,696,098
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations -
Schools - 3.7% Brunswick County, NC, FGIC, 5s, 2020 $2,800 $2,994,600
- -----------------------------------------------------------------------------------------------------------------------------
Cumberland County, NC, 5.8s, 2019 4,400 5,025,064
- -----------------------------------------------------------------------------------------------------------------------------
Johnston County, NC, FGIC, 5.6s, 2018 2,000 2,246,620
- -----------------------------------------------------------------------------------------------------------------------------
New Hanover County, NC, Public
Improvement, 5s, 2021 1,435 1,496,677
- -----------------------------------------------------------------------------------------------------------------------------
New Hanover County, NC, School
Improvement, 5s, 2019 1,255 1,338,520
- -----------------------------------------------------------------------------------------------------------------------------
University of North Carolina, Greensboro
Rev., Refunding General, "B", FSA, 5.375s, 2016 1,085 1,215,949
- -----------------------------------------------------------------------------------------------------------------------------
University of North Carolina, Greensboro
Rev., Refunding General, "B", FSA, 5.375s, 2017 325 361,731
- -----------------------------------------------------------------------------------------------------------------------------
$14,679,161
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Hospitals - Catawba County, NC, Hospital Rev. (Catawba
20.9% Memorial Hospital), AMBAC,
5s, 2017 $1,200 $1,275,984
- -----------------------------------------------------------------------------------------------------------------------------
Charlotte-Mecklenberg, NC, Healthcare
Systems Rev. (Carolinas Healthcare), "A",
5.125s, 2022 1,000 1,015,700
- -----------------------------------------------------------------------------------------------------------------------------
Charlotte-Mecklenberg, NC, Healthcare
Systems Rev. (Carolinas Healthcare), "A",
5s, 2031 3,500 3,535,980
- -----------------------------------------------------------------------------------------------------------------------------
Charlotte-Mecklenberg, NC, Healthcare
Systems Rev. (Carolinas Healthcare), "A",
5.75s, 2021 1,500 1,569,585
- -----------------------------------------------------------------------------------------------------------------------------
Cumberland County, NC, Detention & Mental
Health Center, AMBAC,
5.625s, 2019 2,125 2,355,903
- -----------------------------------------------------------------------------------------------------------------------------
Cumberland County, NC, Hospital Facilities
Rev. (Cumberland County Hospital), MBIA,
0s, 2009 1,800 1,505,268
- -----------------------------------------------------------------------------------------------------------------------------
New Hanover County, NC, Hospital Rev. (New
Hanover Regional Medical Center), MBIA,
5s, 2019 6,225 6,578,144
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission,
Health Care Facilities Rev. (Wake
Medical), AMBAC, 5s, 2021 3,500 3,679,445
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission,
Hospital Rev. (Betsy Johnson Health Care
System), FSA, 5.125s, 2032 1,500 1,529,295
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission,
Hospital Rev. (Duke University),
5.25s, 2021 5,975 6,097,846
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission,
Hospital Rev. (Gaston Health Care), 5.5s, 2015 5,790 6,065,199
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission,
Hospital Rev. (Gaston Health Care), 5.5s, 2019 6,500 6,712,420
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission,
Hospital Rev. (Maria Parham Medical
Center), 6.5s, 2026 1,000 1,008,470
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission,
Hospital Rev. (Mission-St. Joseph Health
Systems), 5.25s, 2015 2,210 2,369,960
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission,
Hospital Rev. (Mission-St. Joseph Health
Systems), MBIA, 5.1s, 2018 1,500 1,598,505
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission,
Hospital Rev. (Mission-St. Joseph Health
Systems), 5.5s, 2021 2,825 2,963,114
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission,
Hospital Rev. (Novant Health), MBIA, 5s, 2018 1,975 2,099,504
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission,
Hospital Rev. (Pitt County Memorial
Hospital), 5s, 2018 3,000 3,046,500
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission,
Hospital Rev. (Rex Healthcare), AMBAC, 5s, 2017 5,000 5,316,000
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission,
Hospital Rev. (Southeastern Regional
Medical Center), 5.375s, 2032 3,330 3,377,886
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission,
Hospital Rev. (Wilson Memorial Hospital),
AMBAC, 0s, 2013 1,000 667,670
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission,
Hospital Rev. (Wilson Memorial Hospital),
AMBAC, 0s, 2015 1,140 688,628
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission
(Novant Health) Obligation Group A, 5s, 2020 500 508,250
- -----------------------------------------------------------------------------------------------------------------------------
Northern Hospital District Surry County,
NC, Health Care Facilities Rev. (Northern
Hospital District), ASST GTY, 5.5s, 2019 1,250 1,351,175
- -----------------------------------------------------------------------------------------------------------------------------
Northern Hospital District Surry County,
NC, Health Care Facilities Rev. (Northern
Hospital), ASST GTY, 5.1s, 2021 1,000 1,039,720
- -----------------------------------------------------------------------------------------------------------------------------
Pitt County, NC, Hospital Rev. (Memorial
Hospital), 5.25s, 2021(+++) 10,135 10,593,203
- -----------------------------------------------------------------------------------------------------------------------------
University of North Carolina, Hospital
Rev. (Chapel Hill University),
5.25s, 2019(+++) 4,800 5,335,920
- -----------------------------------------------------------------------------------------------------------------------------
$83,885,274
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Long Term Mocksville, NC (Housing Foundation, Inc.),
Care - 0.7% 7.25s, 2029 $975 $852,774
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission,
Health Care Facilities Rev. (Arbor Acres
Community), 6.375s, 2032 1,000 1,029,180
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Medical Care Commission,
Health Care Facilities Rev. (Givens
Estate), 6.5s, 2032 800 808,384
- -----------------------------------------------------------------------------------------------------------------------------
$2,690,338
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Columbus County, NC, Industrial Facilities
Paper - 4.6% & Pollution Control Rev. (International
Paper Corp.), 5.8s, 2016 $2,000 $2,058,480
- -----------------------------------------------------------------------------------------------------------------------------
Haywood County, NC, Industrial Facilities
& Pollution Control Rev. (Champion
International), 5.75s, 2025 5,400 5,405,778
- -----------------------------------------------------------------------------------------------------------------------------
Martin County, NC, Industrial Facilities &
Pollution Control Rev. (Weyerhaeuser Co.),
7.25s, 2014 7,000 7,208,530
- -----------------------------------------------------------------------------------------------------------------------------
Martin County, NC, Industrial Facilities &
Pollution Control Rev. (Weyerhaeuser Co.),
6.8s, 2024 3,500 3,666,635
- -----------------------------------------------------------------------------------------------------------------------------
$18,339,423
- -----------------------------------------------------------------------------------------------------------------------------
Multi-Family Housing Durham County, NC, Multi-Housing Rev.
Revenue - 3.7% (Alston Village Apartments), FNMA, 5.65s, 2034 $2,540 $2,746,654
- -----------------------------------------------------------------------------------------------------------------------------
Mecklenburg County, NC (Little Rock
Apartments), FNMA, 5.15s, 2022 1,000 1,028,070
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Housing Finance Agency
Rev., FHA, 6.9s, 2024 4,745 4,776,981
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Housing Finance Agency
Rev., FHA, 6.05s, 2028 4,460 4,619,445
- -----------------------------------------------------------------------------------------------------------------------------
Salisbury, NC, Housing Corp. Rev. (Yadkin
Senior Citizens), FHA, 6.75s, 2022 1,785 1,786,571
- -----------------------------------------------------------------------------------------------------------------------------
$14,957,721
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - North Carolina Housing Finance Agency
State - 5.4% Rev., FHA, 6.15s, 2017 $1,780 $1,879,787
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Housing Finance Agency
Rev., 5.55s, 2019 3,910 4,043,488
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Housing Finance Agency
Rev., 5.25s, 2020 1,500 1,523,700
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Housing Finance Agency
Rev., 6.15s, 2020 900 942,354
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Housing Finance Agency
Rev., FSA, 4.85s, 2023 600 603,786
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Housing Finance Agency
Rev., 5.375s, 2023 250 252,335
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Housing Finance Agency
Rev., 4.25s, 2028 2,940 3,037,578
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Housing Finance Agency
Rev., AMBAC, 4.35s, 2028 4,945 5,065,955
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Housing Finance Agency
Rev., 5.85s, 2028 3,660 3,775,985
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Housing Finance Agency
Rev., FSA, 4.95s, 2032 500 502,785
- -----------------------------------------------------------------------------------------------------------------------------
$21,627,753
- -----------------------------------------------------------------------------------------------------------------------------
State and Local
Appropriation - 17.7% Brunswick County, NC, FSA, 5.5s, 2020 $1,000 $1,097,640
- -----------------------------------------------------------------------------------------------------------------------------
Cabarrus County, NC, Development Corp.,
AMBAC, 5.3s, 2019 1,250 1,363,187
- -----------------------------------------------------------------------------------------------------------------------------
Cabarrus County, NC, Installment Financing
Contract, 5s, 2021 5,500 5,746,950
- -----------------------------------------------------------------------------------------------------------------------------
Carteret County, NC, AMBAC, 5.625s, 2020 1,010 1,123,484
- -----------------------------------------------------------------------------------------------------------------------------
Cary, NC, Certificates of Participation,
5s, 2018 1,550 1,656,066
- -----------------------------------------------------------------------------------------------------------------------------
Charlotte, NC, Certificates of
Participation (Convention Facilites),
AMBAC, 0s, 2004 3,435 3,386,429
- -----------------------------------------------------------------------------------------------------------------------------
Charlotte, NC, Certificates of
Participation (Convention Facilites),
AMBAC, 0s, 2005 4,810 4,652,136
- -----------------------------------------------------------------------------------------------------------------------------
Charlotte, NC, Certificates of
Participation (Convention Facilites),
AMBAC, 0s, 2006 1,075 1,016,756
- -----------------------------------------------------------------------------------------------------------------------------
Charlotte, NC, Certificates of
Participation (Convention Facilites),
AMBAC, 0s, 2008 3,000 2,635,200
- -----------------------------------------------------------------------------------------------------------------------------
Charlotte, NC, Certificates of
Participation (Convention Facilites),
5.5s, 2020 3,000 3,294,510
- -----------------------------------------------------------------------------------------------------------------------------
Charlotte, NC, Public Safety Facilities,
5.5s, 2020 3,000 3,279,990
- -----------------------------------------------------------------------------------------------------------------------------
Cumberland County, NC, Certificates of
Participation (Civic Center), AMBAC,
0s, 2011 425 316,850
- -----------------------------------------------------------------------------------------------------------------------------
Cumberland County, NC, Certificates of
Participation (Civic Center), AMBAC,
0s, 2013 1,000 666,780
- -----------------------------------------------------------------------------------------------------------------------------
Forsyth County, NC, Certificates of
Participation (Public Facilities &
Equipment Projec), 5s, 2015 1,100 1,205,017
- -----------------------------------------------------------------------------------------------------------------------------
Forsyth County, NC, Certificates of
Participation (Public Facilities &
Equipment Project), 5.25s, 2019 775 841,689
- -----------------------------------------------------------------------------------------------------------------------------
Forsyth County, NC, Certificates of
Participation (Public Facilities &
Equipment Project), 5.25s, 2023 1,230 1,293,099
- -----------------------------------------------------------------------------------------------------------------------------
Franklin County, NC, Certificates of
Participation (Jail and School), FGIC,
6.625s, 2014(+++) 2,000 2,115,040
- -----------------------------------------------------------------------------------------------------------------------------
Harnett County, NC, Certificates of
Participation, AMBAC, 6.2s, 2006 1,000 1,080,250
- -----------------------------------------------------------------------------------------------------------------------------
Harnett County, NC, Certificates of
Participation, FSA, 5.25s, 2015 1,020 1,159,801
- -----------------------------------------------------------------------------------------------------------------------------
Harnett County, NC, Certificates of
Participation, FSA, 5.5s, 2016 1,225 1,386,970
- -----------------------------------------------------------------------------------------------------------------------------
Iredell County, NC, Public Facilities,
AMBAC, 5.5s, 2019(+++) 1,000 1,171,310
- -----------------------------------------------------------------------------------------------------------------------------
New Hanover County, NC, Certificates of
Participation (New Hanover County
Projects), AMBAC, 5.25s, 2018 1,635 1,803,846
- -----------------------------------------------------------------------------------------------------------------------------
New Hanover County, NC, Certificates of
Participation (New Hanover County
Projects), AMBAC, 5s, 2019 1,500 1,604,970
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Infrastructure, Finance
Corp. Lease (Correctional Facilities
Project), 5s, 2021 2,500 2,617,125
- -----------------------------------------------------------------------------------------------------------------------------
Pitt County, NC, Public School Facilities
Improvement, FSA, 5.75s, 2018 1,390 1,581,375
- -----------------------------------------------------------------------------------------------------------------------------
Pitt County, NC, Public School Facilities
Improvement, FSA, 5.75s, 2019 1,390 1,577,039
- -----------------------------------------------------------------------------------------------------------------------------
Pitt County, NC, Public School Facilities
Improvement, FSA, 5.5s, 2020 1,250 1,369,675
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Housing, Bank and Finance
Agency, 7.5s, 2006 7,000 7,677,810
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES,
AMBAC, 9.458s, 2016(++)+ 1,500 1,967,490
- -----------------------------------------------------------------------------------------------------------------------------
Randolph County, NC, FSA, 5.6s, 2018 3,000 3,348,300
- -----------------------------------------------------------------------------------------------------------------------------
Rockingham, NC, Certificates of
Participation, AMBAC, 5.125s, 2024 350 364,389
- -----------------------------------------------------------------------------------------------------------------------------
Rutherford County NC, Certificates of
Participation (Rutherford County School),
AMBAC, 5s, 2023 840 864,360
- -----------------------------------------------------------------------------------------------------------------------------
Union County, NC, Certificates of
Participation, AMBAC, 5s, 2020 1,785 1,892,243
- -----------------------------------------------------------------------------------------------------------------------------
Winston Salem, NC, Certificates of
Participation, 5s, 2016 1,050 1,135,932
- -----------------------------------------------------------------------------------------------------------------------------
Winston Salem, NC, Certificates of
Participation, 5s, 2018 2,575 2,745,362
- -----------------------------------------------------------------------------------------------------------------------------
$71,039,070
- -----------------------------------------------------------------------------------------------------------------------------
Tax - Other - 0.7% Virgin Islands Public Finance Authority
Rev., ASST GTY, 5.5s, 2018 $1,000 $1,098,560
- -----------------------------------------------------------------------------------------------------------------------------
Virgin Islands Public Finance Authority
Rev., 5.5s, 2022 1,650 1,683,429
- -----------------------------------------------------------------------------------------------------------------------------
$2,781,989
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco - 0.4% Childrens Trust Fund, Settlement Rev.,
5.375s, 2033 $1,940 $1,733,623
- -----------------------------------------------------------------------------------------------------------------------------
Transportation - Special Commonwealth of Puerto Rico, Highway &
Tax - 1.9% Transportation Authority Rev., RITES, FSA,
10.708s, 2018(++)+ $5,425 $7,823,826
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Colleges - 7.6% Appalachian State University, Parking
Systems, FSA, 5.6s, 2020 $2,285 $2,542,154
- -----------------------------------------------------------------------------------------------------------------------------
Appalachian State University, Parking
Systems, "A", FGIC, 5.125s, 2022 1,260 1,327,133
- -----------------------------------------------------------------------------------------------------------------------------
East Carolina University, AMBAC, 5s, 2019 1,000 1,069,420
- -----------------------------------------------------------------------------------------------------------------------------
East Carolina University, AMBAC, 5.25s, 2021 1,375 1,486,389
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Capital Facilities Finance
(Duke University) "A", 5.125s, 2041 4,915 4,981,254
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Capital Facilities Finance
(High Point University), 5.125s, 2018 510 545,200
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Capital Facilities Finance
(High Point University), 5.125s, 2021 300 314,088
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Capital Facilities Finance
(Johnson & Wales University) "A", XLCA,
5.25s, 2021 775 837,837
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Capital Facilities Finance
(Johnson & Wales University) "A", XLCA,
5.25s, 2022 1,870 2,001,928
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Tourist Authority (University
Plaza), MBIA, 5s, 2020 2,180 2,287,801
- -----------------------------------------------------------------------------------------------------------------------------
University of North Carolina, Ashville
Rev., Refunding General, "A", AMBAC,
5s, 2019 530 563,788
- -----------------------------------------------------------------------------------------------------------------------------
University of North Carolina, Greensboro,
FSA, 5s, 2020 2,835 3,006,659
- -----------------------------------------------------------------------------------------------------------------------------
University of North Carolina, University
Rev., 0s, 2013 3,000 2,036,820
- -----------------------------------------------------------------------------------------------------------------------------
University of North Carolina, University
Rev., 0s, 2015 4,415 2,701,097
- -----------------------------------------------------------------------------------------------------------------------------
University of North Carolina, University
Rev., 0s, 2016 3,500 2,031,225
- -----------------------------------------------------------------------------------------------------------------------------
University of North Carolina, Wilmington
Rev., 5.25s, 2021 1,380 1,488,247
- -----------------------------------------------------------------------------------------------------------------------------
University of North Carolina, Wilmington
Rev., "A", AMBAC, 5s, 2019 1,375 1,467,620
- -----------------------------------------------------------------------------------------------------------------------------
$30,688,660
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Investor Wake County, NC, Industrial Facilities &
Owned - 0.7% Pollution Control Rev. (Carolina Power &
Light Co.), 5.375s, 2017 $2,500 $2,611,650
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Municipal North Carolina Eastern Municipal Power
Owned - 14.9% Agency, MBIA, 7s, 2007 $5,000 $5,815,650
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Eastern Municipal Power
Agency, MBIA, 7.25s, 2007 5,000 5,854,850
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Eastern Municipal Power
Agency, 7.5s, 2010(+++) 2,595 3,289,137
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Eastern Municipal Power
Agency, MBIA, 7.5s, 2010 3,005 3,758,083
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Eastern Municipal Power
Agency, 5s, 2017(+++) 3,120 3,429,566
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Eastern Municipal Power
Agency, AMBAC, 6s, 2018 1,245 1,502,665
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Eastern Municipal Power
Agency, RITES, AMBAC,
10.659s, 2018(++)+ 6,500 9,190,480
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Municipal Power Agency,
ROLS, MBIA, 9.299s, 2019(++)+ 5,000 5,768,500
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Municipal Power Agency,
ROLS, 9.299s, 2020(++)+ 3,000 3,456,360
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Municipal Power Agency,
Catawba Electric Rev., MBIA, 6s, 2011 5,000 5,888,800
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Municipal Power Agency,
Catawba Electric Rev., 6.375s, 2013 1,000 1,123,010
- -----------------------------------------------------------------------------------------------------------------------------
North Carolina Municipal Power Agency,
Catawba Electric Rev., MBIA,
5.5s, 2014 3,000 3,458,580
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority, FSA,
6s, 2016 5,000 5,288,050
- -----------------------------------------------------------------------------------------------------------------------------
Raleigh, NC, Combined Enterprise Systems
Rev., 5.125s, 2022 2,000 2,082,200
- -----------------------------------------------------------------------------------------------------------------------------
$59,905,931
- -----------------------------------------------------------------------------------------------------------------------------
Water and Sewer Utility Revenue - Broad River, NC, Water Authority Rev.,
9.9% MBIA, 5.75s, 2019 $1,490 $1,696,589
- -----------------------------------------------------------------------------------------------------------------------------
Buncombe County, NC, Metropolitan Sewer
District, MBIA, 5s, 2019 1,245 1,325,016
- -----------------------------------------------------------------------------------------------------------------------------
Cary, NC, Combined Enterprise Systems
Rev., 5s, 2026 1,000 1,016,110
- -----------------------------------------------------------------------------------------------------------------------------
Charlotte, NC, Water & Sewer Systems Rev.,
5.75s, 2016(+++) 2,000 2,366,580
- -----------------------------------------------------------------------------------------------------------------------------
Charlotte, NC, Water & Sewer Systems Rev.,
5.5s, 2017 1,650 1,862,768
- -----------------------------------------------------------------------------------------------------------------------------
Charlotte, NC, Water & Sewer Systems Rev.,
5.75s, 2018(+++) 5,075 6,020,980
- -----------------------------------------------------------------------------------------------------------------------------
Charlotte, NC, Water & Sewer Systems Rev.,
6s, 2020(+++) 3,180 3,820,738
- -----------------------------------------------------------------------------------------------------------------------------
Charlotte, NC, Water & Sewer Systems Rev.,
5.25s, 2021 4,000 4,227,280
- -----------------------------------------------------------------------------------------------------------------------------
Charlotte, NC, Water & Sewer Systems Rev.,
5.25s, 2025 3,000 3,468,630
- -----------------------------------------------------------------------------------------------------------------------------
Durham County, NC, Enterprise Systems
Rev., MBIA, 5s, 2023 1,675 1,733,859
- -----------------------------------------------------------------------------------------------------------------------------
Fayetteville, NC, Public Works Commission
Rev., FSA, 5.25s, 2016 1,500 1,662,090
- -----------------------------------------------------------------------------------------------------------------------------
Greensboro, NC, Enterprise Systems Rev.,
5.125s, 2018 1,490 1,600,558
- -----------------------------------------------------------------------------------------------------------------------------
Greensboro, NC, Enterprise Systems Rev.,
5.125s, 2019 1,750 1,865,535
- -----------------------------------------------------------------------------------------------------------------------------
Greenville, NC, Enterprise Systems Rev.,
FSA, 5s, 2016 1,005 1,092,907
- -----------------------------------------------------------------------------------------------------------------------------
Greenville, NC, Enterprise Systems Rev.,
FSA, 5.25s, 2019 1,170 1,279,559
- -----------------------------------------------------------------------------------------------------------------------------
Kannapolis, NC, Water & Sewer Rev., FSA,
5.25s, 2021 1,000 1,063,930
- -----------------------------------------------------------------------------------------------------------------------------
Mooresville, NC, Enterprise Systems Rev.,
MBIA, 5s, 2019 1,180 1,261,916
- -----------------------------------------------------------------------------------------------------------------------------
Winston Salem, NC, Water & Sewer Systems
Rev., 5.125s, 2028 2,000 2,287,080
- -----------------------------------------------------------------------------------------------------------------------------
$39,652,125
- -----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Identified Cost, $360,690,004) $393,757,543
- -----------------------------------------------------------------------------------------------------------------------------
Floating Rate Demand Notes - 0.8%
- -----------------------------------------------------------------------------------------------------------------------------
East Baton Rouge Parish, LA, Pollution
Control Rev. (ExxonMobil Corp.),
due 10/01/03 $200 $200,000
- -----------------------------------------------------------------------------------------------------------------------------
Jackson County, MS, Pollution Control Rev.
Chevron USA, Inc., due 10/01/03 100 100,000
- -----------------------------------------------------------------------------------------------------------------------------
Knoxville, TN, Utilities Board Rev.,
due 10/01/03 95 95,000
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, due 10/01/03 100 100,000
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Municipal Water & Sewer
Finance Authority Rev.,
due 10/01/03 100 100,000
- -----------------------------------------------------------------------------------------------------------------------------
Pinellas County, FL, Health Facility
Authority, Pooled Hospital Loan Program,
due 10/01/03 2,600 2,600,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Floating Rate Demand Notes, at Identified Cost $3,195,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $363,885,004) $396,952,543
- -----------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 1.1% 4,461,040
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - 100.0% $401,413,583
- -----------------------------------------------------------------------------------------------------------------------------
See portfolio footnotes and notes to financial statements.
- -----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited) - 9/30/03 MFS(R) PENNSYLVANIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------------------------------------------------------
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset
classes.
Municipal Bonds - 97.3%
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
ISSUER (000 Omitted) $ VALUE
- -----------------------------------------------------------------------------------------------------------------------------
Airport and Port Allegheny County, PA, Airport Rev.
Revenue - 1.9% (Pittsburgh International Airport), MBIA,
5.75s, 2014 $1,000 $1,118,680
- -----------------------------------------------------------------------------------------------------------------------------
Allegheny County, PA, Airport Rev.
(Pittsburgh International Airport), FGIC,
6.125s, 2017 500 553,255
- -----------------------------------------------------------------------------------------------------------------------------
Susquehanna Area Regional Airport, 5.375s, 2018 200 197,674
- -----------------------------------------------------------------------------------------------------------------------------
Susquehanna Area Regional Airport, AMBAC,
5.375s, 2023 500 520,600
- -----------------------------------------------------------------------------------------------------------------------------
$2,390,209
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - General
Purpose - 9.5% Allegheny County, PA, FGIC, 5.3s, 2018 $500 $540,810
- -----------------------------------------------------------------------------------------------------------------------------
Allegheny County, PA, FGIC, 5.4s, 2019 500 540,990
- -----------------------------------------------------------------------------------------------------------------------------
Allentown, PA, FGIC, 5s, 2022 1,350 1,401,057
- -----------------------------------------------------------------------------------------------------------------------------
Beaver County, PA, MBIA, 5.75s, 2006(+++) 250 281,783
- -----------------------------------------------------------------------------------------------------------------------------
Butler County, PA, FGIC, 5.25s, 2022 675 718,774
- -----------------------------------------------------------------------------------------------------------------------------
Butler County, PA, FGIC, 5.25s, 2023 645 681,042
- -----------------------------------------------------------------------------------------------------------------------------
Centre County, PA, MBIA, 5.25s, 2018 1,000 1,092,830
- -----------------------------------------------------------------------------------------------------------------------------
Chester County, PA, 5.65s, 2011 500 504,100
- -----------------------------------------------------------------------------------------------------------------------------
Luzerne County, PA, MBIA, 5.25s, 2025 500 521,815
- -----------------------------------------------------------------------------------------------------------------------------
North Huntingdon Township, PA, AMBAC,
5.25s, 2019 500 532,500
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Finance Rev., 6.6s, 2009 900 921,690
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Finance Rev. (Pennsylvania
Hills), FGIC, 5.45s, 2019 500 540,545
- -----------------------------------------------------------------------------------------------------------------------------
Scranton, PA, AMBAC, 5s, 2016 1,220 1,324,737
- -----------------------------------------------------------------------------------------------------------------------------
State of Pennsylvania, 6.25s, 2010 300 360,303
- -----------------------------------------------------------------------------------------------------------------------------
State of Pennsylvania, 6s, 2019 1,000 1,149,090
- -----------------------------------------------------------------------------------------------------------------------------
Westmoreland County, PA, FGIC, 5s, 2019 580 615,305
- -----------------------------------------------------------------------------------------------------------------------------
$11,727,371
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Improvement Commonwealth of Puerto Rico, ROLs, FGIC,
- - 2.6% 9.846s, 2015+(++) $1,000 $1,337,780
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Puerto Rico, ROLs, XLCA,
9.756s, 2017+(++) 1,000 1,316,800
- -----------------------------------------------------------------------------------------------------------------------------
Pittsburgh, PA, FGIC, 5.75s, 2020 500 587,865
- -----------------------------------------------------------------------------------------------------------------------------
$3,242,445
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Allentown, PA, School District, FGIC,
Schools - 22.1% 5.5s, 2010 $650 $732,596
- -----------------------------------------------------------------------------------------------------------------------------
Butler, PA, School District, FGIC, 5.375s, 2018 500 546,305
- -----------------------------------------------------------------------------------------------------------------------------
Chambersburg, PA, School District, FSA,
5s, 2016 500 534,595
- -----------------------------------------------------------------------------------------------------------------------------
Dover, PA, School District, FGIC, 5s, 2015 1,510 1,623,280
- -----------------------------------------------------------------------------------------------------------------------------
Downingtown, PA, School District, AMBAC,
5.65s, 2019 500 555,345
- -----------------------------------------------------------------------------------------------------------------------------
Exeter Township, PA, School District,
FGIC, 5s, 2025 1,000 1,019,400
- -----------------------------------------------------------------------------------------------------------------------------
Garnet Valley, PA, School District, FGIC,
5.5s, 2015 750 845,527
- -----------------------------------------------------------------------------------------------------------------------------
Gateway, PA, Alleghany School District,
FGIC, 5.2s, 2023 1,000 1,044,880
- -----------------------------------------------------------------------------------------------------------------------------
Kennett, PA, School District, FGIC, 5s, 2013 400 440,236
- -----------------------------------------------------------------------------------------------------------------------------
Keystone Oaks, PA, School District, FGIC,
5s, 2016 920 977,178
- -----------------------------------------------------------------------------------------------------------------------------
Mount Lebanon, PA, School District, MBIA,
5s, 2020 1,000 1,052,990
- -----------------------------------------------------------------------------------------------------------------------------
Norristown, PA, School District, FGIC, 5s, 2021 500 522,665
- -----------------------------------------------------------------------------------------------------------------------------
North Allegheny, PA, School District,
FGIC, 5.05s, 2022 590 610,609
- -----------------------------------------------------------------------------------------------------------------------------
North Pocono, PA, School District, FGIC,
5s, 2023 500 513,780
- -----------------------------------------------------------------------------------------------------------------------------
Palmyra, PA, School District, FGIC,
5.375s, 2016 820 910,831
- -----------------------------------------------------------------------------------------------------------------------------
Pennridge, PA, School District, MBIA, 5s, 2020 500 526,495
- -----------------------------------------------------------------------------------------------------------------------------
Pennridge, PA, School District, MBIA, 5s, 2021 500 522,565
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Higher Educational
Facilities, State Systems of Higher
Education, AMBAC, 5s, 2018 500 531,245
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Public School Building
(Garnet Valley School District), AMBAC,
5.5s, 2018 1,005 1,110,043
- -----------------------------------------------------------------------------------------------------------------------------
Perkiomen Valley, PA, School District,
FSA, 5s, 2019 500 524,280
- -----------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA, School District, AMBAC,
5.375s, 2019 500 530,245
- -----------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA, School District, FSA,
5s, 2010 1,000 1,119,320
- -----------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA, School District, FSA,
5.75s, 2019 500 562,560
- -----------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA, School District, MBIA,
6s, 2016 500 580,240
- -----------------------------------------------------------------------------------------------------------------------------
Pittsburgh, PA, School District, 5.5s,
2009(+++) 1,320 1,533,959
- -----------------------------------------------------------------------------------------------------------------------------
Pittsburgh, PA, School District, FSA,
5.5s, 2014 1,000 1,158,130
- -----------------------------------------------------------------------------------------------------------------------------
Riverside, PA, School District, FGIC,
5.45s, 2017 500 545,355
- -----------------------------------------------------------------------------------------------------------------------------
Riverside, PA, School District, FGIC,
5.5s, 2020 500 545,275
- -----------------------------------------------------------------------------------------------------------------------------
South Park, PA, School District, FGIC, 5s, 2019 750 788,182
- -----------------------------------------------------------------------------------------------------------------------------
Southeastern Area, PA, Special Schools
Authority Rev., 0s, 2007 360 325,987
- -----------------------------------------------------------------------------------------------------------------------------
State Public School Building Authority,
Pennsylvania School (Lease Philadelphia
School District), FSA, 5.25s, 2024 1,000 1,048,930
- -----------------------------------------------------------------------------------------------------------------------------
State Public School Building Authority,
Pennsylvania School (Tuscarora School
District), FSA, 5s, 2024 1,000 1,051,470
- -----------------------------------------------------------------------------------------------------------------------------
West Chester, PA, School District, 5s, 2008 1,050 1,176,798
- -----------------------------------------------------------------------------------------------------------------------------
Wilson, PA, School District, FGIC, 5.125s, 2017 1,000 1,079,540
- -----------------------------------------------------------------------------------------------------------------------------
$27,190,836
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Allegheny County, PA, Hospital Development
Hospitals - 9.4% Authority Rev. (South Hills Health
System), 6.75s, 2025 $555 $562,981
- -----------------------------------------------------------------------------------------------------------------------------
Allegheny County, PA, Hospital Development
Authority Rev. (South Hills Health
System), MBIA, 5.8s, 2016 500 549,515
- -----------------------------------------------------------------------------------------------------------------------------
Allegheny County, PA, Hospital Development
Authority Rev. (UPMC Health Systems),
MBIA, 5s, 2018 500 530,485
- -----------------------------------------------------------------------------------------------------------------------------
Allegheny County, PA, Hospital Development
Authority Rev. (West Pennsylvania
Allegheny Health), 9.25s, 2022 50 49,119
- -----------------------------------------------------------------------------------------------------------------------------
Allegheny County, PA, Hospital Development
Authority Rev. (West Pennsylvania
Allegheny Health), 9.25s, 2030 150 147,112
- -----------------------------------------------------------------------------------------------------------------------------
Blair County, PA, Hospital Authority Rev.
(Altoona), AMBAC, 5.5s, 2008 470 535,720
- -----------------------------------------------------------------------------------------------------------------------------
Chester County, PA, Health & Education
(Main Line Health Systems), 5.5s, 2015 335 343,971
- -----------------------------------------------------------------------------------------------------------------------------
Cumberland County, PA, Municipal Authority
Rev. (Carlisle Hospital & Health Centers),
6.8s, 2004(+++) 250 270,855
- -----------------------------------------------------------------------------------------------------------------------------
Erie County, PA, Hospital Authority Rev.
(Hamot Health Foundation), AMBAC, 5.25s, 2017 675 735,689
- -----------------------------------------------------------------------------------------------------------------------------
Lebanon County, PA, Health Facilities
Authority Rev. (Good Samaritan Hospital),
6s, 2035 350 354,130
- -----------------------------------------------------------------------------------------------------------------------------
Lehigh County, PA, General Purpose
Authority (Lehigh Valley Hospital),
5.25s, 2032 600 590,556
- -----------------------------------------------------------------------------------------------------------------------------
Lehigh County, PA, General Purpose
Authority (Lehigh Valley Hospital), FSA,
5.25s, 2019 500 537,025
- -----------------------------------------------------------------------------------------------------------------------------
Lehigh County, PA, General Purpose
Authority (Saint Lukes Bethlehem
Hospital), 5.375s, 2033 600 581,520
- -----------------------------------------------------------------------------------------------------------------------------
Lehigh County, PA, Hospital Rev. (Lehigh
Valley Hospital), MBIA, 7s, 2016 250 323,105
- -----------------------------------------------------------------------------------------------------------------------------
Lycoming County, PA, Authority Hospital
Rev. (Williamsport Hospital Obligation
Group), Connie Lee, 5.375s, 2010 750 819,870
- -----------------------------------------------------------------------------------------------------------------------------
Monroe County, PA, Hospital Authority Rev.
(Pocono Medical Center), 6s, 2043 750 751,463
- -----------------------------------------------------------------------------------------------------------------------------
Mount Lebanon, PA, Hospital Authority Rev.
(St. Clair Memorial Hospital), 5.625s, 2032 400 400,744
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Higher Educational Facilities
Authority Rev., 6.25s, 2018 100 109,467
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Higher Educational Facilities
Authority Rev., 6s, 2031 650 678,054
- -----------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA, Health & Educational
Facilities Rev. (Jeanes Health), 6.6s, 2010 180 190,562
- -----------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA, Health & Educational
Facilities Rev. (Temple University),
6.625s, 2023 250 252,300
- -----------------------------------------------------------------------------------------------------------------------------
Sayre, PA, Health Care Facilities
Authority Rev., 5.875s, 2031 500 516,790
- -----------------------------------------------------------------------------------------------------------------------------
Sayre, PA, Health Care Facilities
Authority Rev. (Latrobe Hospital), AMBAC,
5.25s, 2015 585 643,641
- -----------------------------------------------------------------------------------------------------------------------------
Scranton-Lackawanna, PA, Health & Welfare
Authority Rev. (Allied Rehab Hospital),
7.125s, 2005 110 111,420
- -----------------------------------------------------------------------------------------------------------------------------
Southcentral Pennsylvania General
Authority Rev. (York Hospital), 5.625s, 2026 600 619,782
- -----------------------------------------------------------------------------------------------------------------------------
West Shore, PA, Hospital Authority (Holy
Spirit Hospital), 6.25s, 2032 350 358,372
- -----------------------------------------------------------------------------------------------------------------------------
$11,564,248
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Long Term Blair County, PA, Industrial Development
Care - 0.8% Authority Rev. (Village of Penn St.
Project), 7s, 2034 $150 $153,347
- -----------------------------------------------------------------------------------------------------------------------------
Clarion County, PA, Industrial Development
Authority Rev. (Beverly Enterprises,
Inc.), 7.5s, 2012 150 154,111
- -----------------------------------------------------------------------------------------------------------------------------
Cumberland County, PA, Retirement
Community Rev. (Wesley Affiliated
Services), 7.25s, 2035 150 150,462
- -----------------------------------------------------------------------------------------------------------------------------
Lancaster County, PA, Hopital Authority
Rev. (Willow Valley Retirement Project),
5.875s, 2031 500 511,895
- -----------------------------------------------------------------------------------------------------------------------------
$969,815
- -----------------------------------------------------------------------------------------------------------------------------
Human Services - 0.1% Montgomery County, PA, Industrial
Development Authority (Wordsworth
Academy), 8s, 2024 $150 $155,127
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - New Morgan, PA, Industrial Development
Environmental Services - 0.8% Authority Rev. (Browning Ferris Co.),
6.5s, 2019 500 481,735
- -----------------------------------------------------------------------------------------------------------------------------
Westmoreland County, PA, Industrial
Development Corp. (Waste Management), LOC,
5.1s, 2018 500 514,880
- -----------------------------------------------------------------------------------------------------------------------------
$996,615
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Bucks County, PA, Industrial Development
Other - 1.5% Authority (USX Corp.), 5.4s, 2017 $300 $322,191
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Economic Development
Financing Authority, Solid Waste Disposal
Rev. (Proctor & Gamble), 5.375s, 2031 1,000 1,068,680
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Economic Development
Financing Authority, Wastewater Treatment
Rev. (Sunoco, Inc.), 7.6s, 2024 250 265,045
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Economic Development
Financing Authority Rev. (Amtrak),
6.125s, 2021 150 149,535
- -----------------------------------------------------------------------------------------------------------------------------
$1,805,451
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Erie County, PA, Industrial Development
Paper - 0.6% Authority (International Paper Co.),
5.3s, 2012 $500 $521,700
- -----------------------------------------------------------------------------------------------------------------------------
Erie County, PA, Industrial Development
Authority (International Paper Co.),
7.625s, 2018 250 262,205
- -----------------------------------------------------------------------------------------------------------------------------
$783,905
- -----------------------------------------------------------------------------------------------------------------------------
Multi-Family Housing Philadelphia, PA, Housing Authority
Revenue - 0.9% Capital Program Rev, FSA, 5.25s, 2014 $1,000 $1,124,520
- -----------------------------------------------------------------------------------------------------------------------------
Parking - 1.4% Pittsburgh, PA, Public Parking Authority
Rev., AMBAC, 6s, 2020 $500 $574,325
- -----------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA, Public Parking Authority
Rev., FSA, 5.625s, 2015 1,000 1,126,870
- -----------------------------------------------------------------------------------------------------------------------------
$1,701,195
- -----------------------------------------------------------------------------------------------------------------------------
Sales and Excise Tax Pittsburgh & Allegheny County, PA, Sales
Revenue - 0.4% Tax Rev. (Public Auditorium Hotel Room),
AMBAC, 5.25s, 2017 $500 $541,215
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - Philadelphia, PA, Redevelopment Authority
Local - 0.3% Home Improvement Loan Rev., FHA, 6.1s, 2010 $60 $62,965
- -----------------------------------------------------------------------------------------------------------------------------
Pittsburgh, PA, Urban Development
Authority Mortgage Rev., 5.5s, 2010 305 313,412
- -----------------------------------------------------------------------------------------------------------------------------
$376,377
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - Pennsylvania Housing Finance Agency,
State - 5.0% Single Family Mortgage Rev., 4.25s, 2012 $500 $512,185
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Housing Finance Agency,
Single Family Mortgage Rev., 5.75s, 2013 1,000 1,059,390
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Housing Finance Agency,
Single Family Mortgage Rev., 5s, 2014 500 522,605
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Housing Finance Agency,
Single Family Mortgage Rev., 6.75s, 2014 500 514,655
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Housing Finance Agency,
Single Family Mortgage Rev., 6.4s, 2016 500 513,750
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Housing Finance Agency,
Single Family Mortgage Rev., 5.1s, 2020 1,000 1,023,240
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Housing Finance Agency,
Single Family Mortgage Rev., 5.25s, 2021 750 763,163
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Housing Finance Agency,
Single Family Mortgage Rev., 6.65s, 2021 250 259,105
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Housing Finance Agency,
Single Family Mortgage Rev., 6.125s, 2024 115 117,728
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Housing Finance Agency,
Single Family Mortgage Rev., 5.25s, 2033 845 884,799
- -----------------------------------------------------------------------------------------------------------------------------
$6,170,620
- -----------------------------------------------------------------------------------------------------------------------------
Solid Waste Revenue - 0.9% Delaware County, PA, Industrial
Development Authority Rev., Series A,
6.2s, 2019 $300 $308,913
- -----------------------------------------------------------------------------------------------------------------------------
York County, PA, Solid Waste, FGIC, 5.5s, 2013 700 812,728
- -----------------------------------------------------------------------------------------------------------------------------
$1,121,641
- -----------------------------------------------------------------------------------------------------------------------------
State and Local
Appropriation - 8.8% Delaware Valley, PA, 5.5s, 2012 $1,000 $1,131,320
- -----------------------------------------------------------------------------------------------------------------------------
Delaware Valley, PA, Regional Finance
Authority, RITES, AMBAC, 9.675s, 2018(++) 500 660,300
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Convention Center Rev.,
6.75s, 2019 250 262,988
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Industrial Development
Authority, Economic Development, AMBAC,
7s, 2007 300 348,525
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Industrial Development
Authority, Economic Development, AMBAC,
5.8s, 2009 400 464,412
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Industrial Development
Authority, Economic Development, AMBAC,
5.25s, 2010 1,000 1,138,440
- -----------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA, Industrial Development
Authority, FSA, 5.125s, 2026 1,000 1,020,060
- -----------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA, Industrial Development
Authority, FSA, 5.25s, 2030 750 768,517
- -----------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA, Industrial Development
Authority, MBIA, 5.35s, 2012 500 553,885
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority,
5s, 2007 1,585 1,747,827
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., 5.7s, 2025 1,000 1,066,960
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES,
AMBAC, 9.458s, 2013+(++) 500 653,940
- -----------------------------------------------------------------------------------------------------------------------------
State Public School Building Authority,
Pennsylvania School (Brandywine Heights),
FGIC, 5s, 2019 1,000 1,059,120
- -----------------------------------------------------------------------------------------------------------------------------
$10,876,294
- -----------------------------------------------------------------------------------------------------------------------------
Student Loan Revenue - 1.2% Pennsylvania Higher Education, Capital
Acquistion Rev., MBIA, 5s, 2026 $1,500 $1,520,970
- -----------------------------------------------------------------------------------------------------------------------------
Tax - Other - 0.5% Pittsburgh & Allegheny County, PA, Sales
Tax Rev. (Public Auditorium Hotel Room),
AMBAC, 5.25s, 2013 $500 $553,950
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco - 0.4% Childrens Trust Fund, Settlement Rev.,
5.375s, 2033 $340 $303,831
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corp., 5s, 2021 170 143,000
- -----------------------------------------------------------------------------------------------------------------------------
$446,831
- -----------------------------------------------------------------------------------------------------------------------------
Toll Roads - 1.8% Commonwealth of Puerto Rico, Highway &
Transportation, ROLs, MBIA,
9.846s, 2020+(++) $1,500 $1,989,300
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Turnpike Commission, 5.5s, 2015 250 283,133
- -----------------------------------------------------------------------------------------------------------------------------
$2,272,433
- -----------------------------------------------------------------------------------------------------------------------------
Transportation -Special Allegheny County, PA, Port Authority
Tax - 4.4% Special Rev., FGIC, 5s, 2021 $750 $780,923
- -----------------------------------------------------------------------------------------------------------------------------
Allegheny County, PA, Port Authority
Special Rev., MBIA, 6.25s, 2009(+++) 500 600,675
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Puerto Rico Highway &
Transportation Authority, 5.5s, 2013 500 566,285
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Puerto Rico Highway &
Transportation Authority, MBIA,
5.5s, 2015 500 584,445
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Turnpike Commission, MBIA,
5s, 2024 1,775 1,815,292
- -----------------------------------------------------------------------------------------------------------------------------
Southeastern Pennsylvania Transportation
Authority, Special Rev., FGIC,
5.25s, 2013 500 553,340
- -----------------------------------------------------------------------------------------------------------------------------
Southeastern Pennsylvania Transportation
Authority, Special Rev., FGIC,
5.375s, 2017 500 544,690
- -----------------------------------------------------------------------------------------------------------------------------
$5,445,650
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Colleges - 7.1% Allegheny County, PA (Carnegie Mellon
University), 5.25s, 2032 $750 $770,070
- -----------------------------------------------------------------------------------------------------------------------------
Allegheny County, PA (Chatham College),
5.95s, 2032 335 347,117
- -----------------------------------------------------------------------------------------------------------------------------
Cumberland County, PA, Municipal Authority
(Dickinson College), AMBAC,
5.55s, 2017 535 588,800
- -----------------------------------------------------------------------------------------------------------------------------
Delaware County, PA, Authority University
Rev. (Villanova University), FGIC, 5.25s, 2020 1,000 1,083,360
- -----------------------------------------------------------------------------------------------------------------------------
Delaware County, PA, Authority University
Rev. (Villanova University), FGIC, 5.25s, 2021 1,000 1,075,010
- -----------------------------------------------------------------------------------------------------------------------------
Lycoming County, PA (College of
Technology), AMBAC, 5.25s, 2032 750 775,200
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Higher Educational Facilities
Authority Rev. (Clarion University
Foundation), XLCA, 5s, 2023 1,000 1,028,230
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Higher Educational Facilities
Authority Rev. (Widener University),
5.375s, 2029 300 299,937
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Higher Educational Facilities
Authority Rev. (Drexel University), 5.2s, 2032 750 760,417
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Higher Educational Facilities
Authority, College & University Rev.
(Marywood University), MBIA, 5.5s, 2018 300 331,230
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Public School Building
Authority (Delaware County College), MBIA,
5.75s, 2016 500 574,655
- -----------------------------------------------------------------------------------------------------------------------------
Union County, PA, Higher Educational
Facilities Financing Authority, University
Rev. (Bucknell University), 5.25s, 2021 1,000 1,064,940
- -----------------------------------------------------------------------------------------------------------------------------
$8,698,966
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Pennsylvania Economic Development
Dormatories - 0.5% Financing Authority (Germantown Friends
School Project), 5.35s, 2031 $600 $615,480
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Cogeneration - 0.3% Carbon County, PA, Industrial Development
Authority Rev. (Panther Creek Partners),
6.65s, 2010 $145 $155,075
- -----------------------------------------------------------------------------------------------------------------------------
Pennsylvania Economic Development
Financing Authority, Resources Recovery
Rev. (Northhampton Generating), 6.4s, 2009 150 152,323
- -----------------------------------------------------------------------------------------------------------------------------
$307,398
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Gas - 0.5% Philadelphia, PA, Gas Works Rev., FSA,
5.5s, 2018 $500 $553,580
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Municipal Guam Power Authority Rev., RITES, AMBAC,
Owned - 5.5% 9.198s, 2014+(++) $2,170 $2,644,622
- -----------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA, Gas Works Rev., 6s, 2013(+++) 1,645 1,971,385
- -----------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA, Gas Works Rev., FSA,
5.5s, 2016 1,000 1,109,040
- -----------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA, Gas Works Rev. (1998
General Ordinance), FSA, 5.25s, 2020 1,000 1,075,010
- -----------------------------------------------------------------------------------------------------------------------------
$6,800,057
- -----------------------------------------------------------------------------------------------------------------------------
Water and Sewer Utility Allegheny County, PA, Sewer Rev., MBIA,
Revenue - 8.1% 5.75s, 2017 $750 $866,107
- -----------------------------------------------------------------------------------------------------------------------------
Bucks County, PA, Water & Sewer Authority
Rev., AMBAC, 5.375s, 2013 1,090 1,225,988
- -----------------------------------------------------------------------------------------------------------------------------
Bucks County, PA (Suburban Water Co.),
FGIC, 5.55s, 2032 1,000 1,043,070
- -----------------------------------------------------------------------------------------------------------------------------
Delaware County, PA, Water Quality Control
Authority, Sewer Rev., FGIC,
5s, 2017 1,000 1,064,320
- -----------------------------------------------------------------------------------------------------------------------------
Delaware County, PA, Water Quality Control
Authority, Sewer Rev., FGIC,
5s, 2018 750 793,995
- -----------------------------------------------------------------------------------------------------------------------------
Fairview Township, PA, Sewer Rev., FGIC,
5.05s, 2018 750 796,553
- -----------------------------------------------------------------------------------------------------------------------------
Luzerne County, PA, Industrial Development
Authority, 6.05s, 2019 300 306,768
- -----------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA, Water Rev., MBIA, 6.25s, 2012 550 665,621
- -----------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA, Water Rev., MBIA, 5.5s, 2014 1,000 1,091,870
- -----------------------------------------------------------------------------------------------------------------------------
Philadelphia, PA, Water Rev., FGIC, 5.25s, 2014 985 1,099,743
- -----------------------------------------------------------------------------------------------------------------------------
University Area Joint Authority, Sewer
Rev., MBIA, 5s, 2023 500 512,045
- -----------------------------------------------------------------------------------------------------------------------------
Virgin Islands Water & Power Authority
Rev., ASST GTY, 5.3s, 2018 500 540,565
- -----------------------------------------------------------------------------------------------------------------------------
$10,006,645
- -----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Identified Cost, $113,175,533) $119,959,844
- -----------------------------------------------------------------------------------------------------------------------------
Floating Rate Demand Notes - 1.6%
- -----------------------------------------------------------------------------------------------------------------------------
Allegheny County, PA, Hospital Development
Authority Rev. (Presbyterian University
Hospital), due 10/01/03 $1,820 $1,820,000
- -----------------------------------------------------------------------------------------------------------------------------
New Castle, PA, Area Hospital Authority
(Jameson Memorial Hospital),
due 10/01/03 225 225,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Floating Rate Demand Notes (Identified Cost, $2,045,000) $2,045,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $115,220,533) $122,004,844
- -----------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 1.1% 1,320,436
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - 100.0% $123,325,280
- -----------------------------------------------------------------------------------------------------------------------------
See portfolio footnotes and notes to financial statements.
- -----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited) - 9/30/03 MFS(R) SOUTH CAROLINA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------------------------------------------------------
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset
classes.
Municipal Bonds - 97.7%
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
ISSUER (000 Omitted) $ VALUE
- -----------------------------------------------------------------------------------------------------------------------------
Airport and Port
Revenue - 3.2% Horry County, SC, "A", FSA, 5.7s, 2027 $2,250 $2,355,660
- -----------------------------------------------------------------------------------------------------------------------------
Richland Lexington, SC, Airport Rev.
(Columbia Airport), FSA, 5s, 2026 1,000 1,010,120
- -----------------------------------------------------------------------------------------------------------------------------
Richland Lexington, SC, Airport Rev.
(Columbia Airport), AMBAC, 5.7s, 2026 1,000 1,036,270
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Ports Authority Rev., FSA,
5s, 2016 1,000 1,064,990
- -----------------------------------------------------------------------------------------------------------------------------
$5,467,040
- -----------------------------------------------------------------------------------------------------------------------------
General Obligation - General Berkeley County, SC, Refunding &
Purpose - 5.5% Improvement, FSA, 5s, 2024 $1,560 $1,598,454
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Puerto Rico, RITES, 9.78s, 2018+(++) 2,000 2,521,560
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Puerto Rico, RITES, 9.78s, 2019+(++) 1,750 2,183,160
- -----------------------------------------------------------------------------------------------------------------------------
Hilton Head Island, SC, MBIA, 5.125s, 2022 1,000 1,052,100
- -----------------------------------------------------------------------------------------------------------------------------
Horry County, SC, 6s, 2015 915 1,047,849
- -----------------------------------------------------------------------------------------------------------------------------
Richard Lexington Riverbanks, SC, Parks
District, FGIC, 5.8s, 2018 1,000 1,125,290
- -----------------------------------------------------------------------------------------------------------------------------
$9,528,413
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations -
Improvement - 2.9% Beaufort County, SC, FGIC, 5.25s, 2018 $1,000 $1,080,750
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Puerto Rico, RITES, MBIA,
10.28s, 2020+(++) 2,000 2,728,920
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency,
RITES, FSA, 10.831s, 2016+(++) 850 1,145,885
- -----------------------------------------------------------------------------------------------------------------------------
$4,955,555
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Anderson County, SC, School District,
Schools - 11.2% 5.5s, 2018 $1,465 $1,630,194
- -----------------------------------------------------------------------------------------------------------------------------
Beaufort County, SC, School District,
5.625s, 2018 2,000 2,221,960
- -----------------------------------------------------------------------------------------------------------------------------
Berkeley County, SC, School District, 5s, 2020 2,000 2,081,840
- -----------------------------------------------------------------------------------------------------------------------------
Charleston County, SC, School District,
"B", 5s, 2019 735 776,057
- -----------------------------------------------------------------------------------------------------------------------------
Chesterfield County, SC, School District,
FSA, 5s, 2023 3,000 3,083,280
- -----------------------------------------------------------------------------------------------------------------------------
Georgetown County, SC, School District,
5.25s, 2018 1,500 1,617,300
- -----------------------------------------------------------------------------------------------------------------------------
Georgetown County, SC, School District,
5.25s, 2019 1,000 1,073,560
- -----------------------------------------------------------------------------------------------------------------------------
Orangeburg County, SC, Consolidated School
District, FSA, 5.25s, 2020 1,065 1,155,546
- -----------------------------------------------------------------------------------------------------------------------------
Orangeburg County, SC, Consolidated School
District, FSA, 5.375s, 2022 2,050 2,206,579
- -----------------------------------------------------------------------------------------------------------------------------
Richland County, SC, School District,
5.1s, 2021 1,750 1,826,755
- -----------------------------------------------------------------------------------------------------------------------------
Spartanburg County, SC, School Distrtict
7, 5s, 2019 1,620 1,753,245
- -----------------------------------------------------------------------------------------------------------------------------
$19,426,316
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Charleston County, SC, Hospital Facilities
Hospitals - 14.1% Rev. (Medical Society Health), MBIA, 5s, 2022(+++) $2,450 $2,456,272
- -----------------------------------------------------------------------------------------------------------------------------
Charleston County, SC (Care Alliance
Health Services), FSA, 5s, 2019 1,000 1,061,160
- -----------------------------------------------------------------------------------------------------------------------------
Greenville, SC, Hospital System, Hospital
Facilities Rev., 6s, 2020 3,400 3,904,934
- -----------------------------------------------------------------------------------------------------------------------------
Greenwood County, SC, Hospital Facilities
Rev. (Self Memorial Hospital),
5.5s, 2021 1,000 1,022,830
- -----------------------------------------------------------------------------------------------------------------------------
Horry County, SC, Hospital Facilities Rev.
(Conway Hospital), 6.75s, 2012 785 800,527
- -----------------------------------------------------------------------------------------------------------------------------
Lexington County, SC, Health Services
Rev., 5.5s, 2032 1,000 1,023,120
- -----------------------------------------------------------------------------------------------------------------------------
Lexington County, SC, Hospital Facilities
Rev., FSA, 5.125s, 2021 1,500 1,573,830
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Jobs & Economic Development
Authority, Hospital Facilities Rev.
(Anderson Area Medical Center), MBIA,
5.25s, 2015 1,750 1,863,505
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Jobs & Economic Development
Authority, Hospital Facilities Rev.
(Georgetown Memorial Hospital), AMBAC, 6s, 2014 1,000 1,183,640
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Jobs & Economic Development
Authority, Hospital Facilities Rev.
(Georgetown Memorial Hospital), ASST GTY,
5.25s, 2021 $1,500 $1,565,520
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Jobs & Economic Development
Authority (Bon Secours Health Systems,
Inc.), "A", 5.625s, 2030 1,250 1,273,150
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Jobs & Economic Development
Authority (Palmetto Health Alliance),
6.25s, 2031 750 760,148
- -----------------------------------------------------------------------------------------------------------------------------
Spartanburg County, SC, Health Service
Rev., AMBAC, 5.3s, 2025 1,000 1,028,810
- -----------------------------------------------------------------------------------------------------------------------------
Spartanburg County, SC, Health Service
Rev., FSA, 5.25s, 2032 2,250 2,315,767
- -----------------------------------------------------------------------------------------------------------------------------
Spartanburg County, SC, Hospital
Facilities Rev. (Health Services District,
Inc.), AMBAC, 5.3s, 2020 2,500 2,601,750
- -----------------------------------------------------------------------------------------------------------------------------
$24,434,963
- -----------------------------------------------------------------------------------------------------------------------------
Human Services - 0.8% Greenville County, SC, Chestnut Hill
Mental Health, 8s, 2015 $1,625 $1,443,471
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Calhoun, SC, Solid Waste Disposal Rev.
Other - 1.5% (Eastman Kodak), 6.75s, 2017 $1,000 $1,282,840
- -----------------------------------------------------------------------------------------------------------------------------
Greenville County, SC, Industrial
Development Rev. (Kroger Co.), 7.85s, 2015 500 521,510
- -----------------------------------------------------------------------------------------------------------------------------
York County, SC, Industrial Development
Rev. (Hoechst Celanese), 5.7s, 2024 850 837,743
- -----------------------------------------------------------------------------------------------------------------------------
$2,642,093
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Darlington County, SC, Industrial
Paper - 1.7% Development Rev. (Sonoco Products Co.),
6.125s, 2025 $1,500 $1,548,615
- -----------------------------------------------------------------------------------------------------------------------------
Florence County, SC, Industrial
Development Rev. (Stone Container Corp.),
7.375s, 2007 335 340,772
- -----------------------------------------------------------------------------------------------------------------------------
Richland County, SC, Environmental
Improvement Rev. (International Paper
Co.), 6.1s, 2023 1,000 1,045,670
- -----------------------------------------------------------------------------------------------------------------------------
$2,935,057
- -----------------------------------------------------------------------------------------------------------------------------
Miscellaneous Revenue - South Carolina Jobs Economic Development
Entertainment & Authority (Myrtle Beach Convention), MBIA,
Tourism - 1.1% 5.125s, 2018 $570 $608,173
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Jobs Economic Development
Authority (Myrtle Beach Convention), MBIA,
5.125s, 2019 595 633,265
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Jobs Economic Development
Authority (Myrtle Beach Convention), MBIA,
5.125s, 2020 630 667,176
- -----------------------------------------------------------------------------------------------------------------------------
$1,908,614
- -----------------------------------------------------------------------------------------------------------------------------
Multi-Family Housing South Carolina Housing, Finance &
Revenue - 1.4% Development Authority Rev. (Hunting Ridge
Apartments), 6.75s, 2025 $1,000 $1,040,200
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Housing, Finance &
Development Authority Rev. (Runaway Bay
Apartments), 6.125s, 2015 1,300 1,362,985
- -----------------------------------------------------------------------------------------------------------------------------
$2,403,185
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - South Carolina Housing, Finance &
State - 2.1% Development Authority Rev., FSA, 6s, 2020 $625 $640,275
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Housing, Finance &
Development Authority Rev., AMBAC,
4.85s, 2023 1,000 994,980
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Housing, Finance &
Development Authority Rev., FSA,
5.35s, 2024 2,000 2,036,320
- -----------------------------------------------------------------------------------------------------------------------------
$3,671,575
- -----------------------------------------------------------------------------------------------------------------------------
State and Local Berkeley County, SC, School District,
Appropriation - 11.8% AMBAC, 6.3s, 2016(+++) $1,800 $1,867,302
- -----------------------------------------------------------------------------------------------------------------------------
Berkeley County, SC, School District
(Berkeley School Facilities Group, Inc.),
AMBAC, 5s, 2016 500 538,760
- -----------------------------------------------------------------------------------------------------------------------------
Charleston, SC, Certificates of
Participation, Refunding Public Facilities
Corp., 5s, 2015 2,145 2,382,644
- -----------------------------------------------------------------------------------------------------------------------------
Greenville County, SC, Public Facilities,
AMBAC, 5s, 2017 1,695 1,824,583
- -----------------------------------------------------------------------------------------------------------------------------
Greenville County, SC (University Center),
AMBAC, 5s, 2017 1,000 1,073,090
- -----------------------------------------------------------------------------------------------------------------------------
Greenville County, SC (University Center),
AMBAC, 5.25s, 2019 1,000 1,078,170
- -----------------------------------------------------------------------------------------------------------------------------
Hilton Head Island, SC, Public Finance
Corp., Certificates of Participation,
AMBAC, 5.75s, 2014 1,750 1,888,477
- -----------------------------------------------------------------------------------------------------------------------------
North Charleston, SC, Municipal Golf
Course Mortgage Rev., 5.5s, 2019(+++) 1,000 1,167,960
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., 5.75s, 2030 1,000 1,048,870
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES,
AMBAC, 9.507s, 2013+(++) 1,375 1,798,335
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES,
AMBAC, 9.507s, 2019+(++) 1,300 1,696,526
- -----------------------------------------------------------------------------------------------------------------------------
Richland County, SC, Certificates of
Participation, FGIC, 0s, 2005 1,160 1,141,719
- -----------------------------------------------------------------------------------------------------------------------------
Richland County, SC, Certificates of
Participation, FGIC, 0s, 2006 1,160 1,119,562
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Water Resources Authority
Rev. (Local Government Program), 7.25s, 2020 1,150 1,159,292
- -----------------------------------------------------------------------------------------------------------------------------
Spartanburg, SC, Public Facilities Corp.
(Renaissance Park), AMBAC, 5.125s, 2025 685 703,858
- -----------------------------------------------------------------------------------------------------------------------------
$20,489,148
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco - 0.5% Tobacco Settlement Rev. Managment
Authority, 6.375s, 2028 $1,000 $863,160
- -----------------------------------------------------------------------------------------------------------------------------
Transportation -Special South Carolina Transportation, MBIA,
Tax - 0.6% 5.375s, 2018 $1,000 $1,101,190
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Colleges - 6.3% Charleston College, SC, "A", FGIC, 5.25s, 2028 $2,435 $2,530,038
- -----------------------------------------------------------------------------------------------------------------------------
Clemson University, University Rev.,
AMBAC, 6.25s, 2015 1,250 1,478,950
- -----------------------------------------------------------------------------------------------------------------------------
Coastal Carolina University, SC, MBIA,
6.875s, 2026(+++) 1,000 1,059,160
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Educational Facilities
Authority (Furman University), AMBAC,
5.375s, 2020 1,245 1,362,018
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Educational Facilities
Authority (Furman University), AMBAC,
5.5s, 2030 2,000 2,143,460
- -----------------------------------------------------------------------------------------------------------------------------
University of South Carolina, University
Rev., FGIC, 5.625s, 2020 1,555 1,712,817
- -----------------------------------------------------------------------------------------------------------------------------
University of South Carolina, University
Rev., MBIA, 5.75s, 2026 515 559,985
- -----------------------------------------------------------------------------------------------------------------------------
$10,846,428
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Municipal Camden, SC, Public Utility Rev., Refunding
Owned - 10.7% & Improvement, MBIA, 5.5s, 2017 $1,500 $1,643,160
- -----------------------------------------------------------------------------------------------------------------------------
Easley, SC, Utility Rev., FSA, 5.25s, 2019 1,315 1,433,061
- -----------------------------------------------------------------------------------------------------------------------------
Easley, SC, Utility Rev., FSA, 5s, 2021 1,000 1,055,890
- -----------------------------------------------------------------------------------------------------------------------------
Easley, SC, Utility Rev., FSA, 5s, 2027 1,000 1,017,080
- -----------------------------------------------------------------------------------------------------------------------------
Greenwood, SC, Combined Public Utility,
Refunding & Improvement Systems, MBIA, 5s, 2021 175 183,445
- -----------------------------------------------------------------------------------------------------------------------------
Greenwood, SC, Combined Public Utility,
Refunding & Improvement Systems, MBIA, 5s, 2023 300 308,523
- -----------------------------------------------------------------------------------------------------------------------------
Orangeburg County, SC, Solid Waste
Disposal Facilities Rev., AMBAC, 5.7s, 2024 2,000 2,017,340
- -----------------------------------------------------------------------------------------------------------------------------
Piedmont, SC, Municipal Power Agency,
FGIC, 6.25s, 2021 4,600 5,564,758
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority,
RITES, FSA, 9.207s, 2015+(++) 1,000 1,183,780
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Public Service Authority,
"A", MBIA, 5.5s, 2018 200 221,474
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Public Service Authority,
"B", AMBAC, 5.5s, 2023 1,000 1,071,620
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Public Service Authority,
"B", FSA, 5.125s, 2037 1,500 1,522,710
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Public Service Authority,
FGIC, 5.875s, 2023 500 547,665
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Public Service Authority,
"D", FSA, 5s, 2018 750 802,905
- -----------------------------------------------------------------------------------------------------------------------------
$18,573,411
- -----------------------------------------------------------------------------------------------------------------------------
Water and Sewer Utility Anderson County, SC, Joint Municipal
Revenue - 22.3% Water, FSA, 5s, 2032 $1,000 $1,012,160
- -----------------------------------------------------------------------------------------------------------------------------
Anderson, SC, Water & Sewer Systems Rev.,
MBIA, 5s, 2021 1,690 1,775,649
- -----------------------------------------------------------------------------------------------------------------------------
Anderson, SC, Water & Sewer Systems Rev.,
MBIA, 5s, 2022 1,565 1,627,882
- -----------------------------------------------------------------------------------------------------------------------------
Anderson, SC, Water & Sewer Systems Rev.,
FGIC, 5.125s, 2032 2,000 2,045,900
- -----------------------------------------------------------------------------------------------------------------------------
Charleston, SC, Waterworks & Sewer Rev.,
MBIA, 5s, 2022 1,000 1,001,360
- -----------------------------------------------------------------------------------------------------------------------------
Charleston, SC, Waterworks & Sewer Rev.,
Refunding Systems, 5.25s, 2018 1,000 1,083,480
- -----------------------------------------------------------------------------------------------------------------------------
Columbia, SC, Waterworks & Sewer Systems
Rev., 0s, 2004(+++) 1,500 1,495,980
- -----------------------------------------------------------------------------------------------------------------------------
Columbia, SC, Waterworks & Sewer Systems
Rev., 0s, 2005 2,245 2,205,825
- -----------------------------------------------------------------------------------------------------------------------------
Columbia, SC, Waterworks & Sewer Systems
Rev., 0s, 2006 9,330 8,969,489
- -----------------------------------------------------------------------------------------------------------------------------
Columbia, SC, Waterworks & Sewer Systems
Rev., 6s, 2015(+++) 2,000 2,368,680
- -----------------------------------------------------------------------------------------------------------------------------
Greenville, SC, Stormwater Systems, FSA,
5s, 2022 595 620,615
- -----------------------------------------------------------------------------------------------------------------------------
Greenville, SC, Waterworks Rev., 5.25s, 2020 860 926,590
- -----------------------------------------------------------------------------------------------------------------------------
Greenville, SC, Waterworks Rev., 5.5s, 2022 1,000 1,060,870
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Aqueduct & Sewer Authority
Rev., 9s, 2009(+++) 530 591,135
- -----------------------------------------------------------------------------------------------------------------------------
Rock Hill, SC, Utilities Rev., Refunding &
Improvement, FSA, 5.375s, 2023 500 532,905
- -----------------------------------------------------------------------------------------------------------------------------
Spartanburg, SC, Waterworks Rev., FGIC,
6.05s, 2018(+++) 2,750 3,092,072
- -----------------------------------------------------------------------------------------------------------------------------
Western Carolina Regional Sewer Authority
Rev., AMBAC, 0s, 2007 4,000 3,723,640
- -----------------------------------------------------------------------------------------------------------------------------
York County, SC, Water & Sewer Rev., 6.5s, 2025 2,000 2,057,560
- -----------------------------------------------------------------------------------------------------------------------------
York County, SC, Water & Sewer Rev.,
Refunding & Capital Improvement, MBIA, 5s, 2024 780 799,609
- -----------------------------------------------------------------------------------------------------------------------------
York County, SC, Water & Sewer Rev.,
Refunding & Capital Improvement,
5s, 2027 1,490 1,517,789
- -----------------------------------------------------------------------------------------------------------------------------
$38,509,190
- -----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Identified Cost, $154,398,092) $169,198,809
- -----------------------------------------------------------------------------------------------------------------------------
Floating Rate Demand Notes - 1.3%
- -----------------------------------------------------------------------------------------------------------------------------
East Baton Rouge Parish, LA, Pollution
Control Rev. (ExxonMobil Corp.),
due 10/01/03 $300 $300,000
- -----------------------------------------------------------------------------------------------------------------------------
Jackson County, MS, Pollution Control Rev.
(Chevron USA, Inc.), due 10/01/03 200 200,000
- -----------------------------------------------------------------------------------------------------------------------------
Lincoln County, WY, Pollution Control Rev.
(ExxonMobil Corp.), due 10/01/03 500 500,000
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Municipal Water & Sewer
Finance Authority Rev.,
due 10/01/03 100 100,000
- -----------------------------------------------------------------------------------------------------------------------------
Pinellas County, FL, Health Facility
Authority, due 10/01/03 500 500,000
- -----------------------------------------------------------------------------------------------------------------------------
Sevier County, TN, Public Building
Authority, due 10/01/03 550 550,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Floating Rate Demand Notes, at Identified Cost $2,150,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $156,548,092) $171,348,809
- -----------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 1.0% 1,770,246
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - 100.0% $173,119,055
- -----------------------------------------------------------------------------------------------------------------------------
See portfolio footnotes and notes to financial statements.
- -----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited) - 9/30/03 MFS(R) TENNESSEE MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------------------------------------------------------
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset
classes.
Municipal Bonds - 98.3%
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
ISSUER (000 Omitted) $ VALUE
- -----------------------------------------------------------------------------------------------------------------------------
Airport and Port Memphis-Shelby County, TN, Airport
Revenue - 1.8% Authority Facilities Rev., MBIA, 6.25s, 2011 $1,000 $1,157,620
- -----------------------------------------------------------------------------------------------------------------------------
Memphis-Shelby County, TN, Airport
Authority Facilities Rev., FSA, 5.125s, 2021 1,500 1,537,575
- -----------------------------------------------------------------------------------------------------------------------------
$2,695,195
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - General
Purpose - 6.7% Dickson County, TN, FGIC, 5s, 2019 $1,430 $1,534,519
- -----------------------------------------------------------------------------------------------------------------------------
Knox County, TN, Health, Education &
Housing Facilities Board Rev., 5s, 2018 1,500 1,605,225
- -----------------------------------------------------------------------------------------------------------------------------
Lincoln County, TN, FGIC, 5.25s, 2017 645 732,700
- -----------------------------------------------------------------------------------------------------------------------------
Lincoln County, TN, FGIC, 5.25s, 2018 1,440 1,631,333
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority,
5.5s, 2021 1,000 1,122,630
- -----------------------------------------------------------------------------------------------------------------------------
Putnam County, TN, FGIC, 5.25s, 2020 2,000 2,248,140
- -----------------------------------------------------------------------------------------------------------------------------
State of Tennessee, FSA, 5s, 2018 1,000 1,067,590
- -----------------------------------------------------------------------------------------------------------------------------
$9,942,137
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Improvement Chattanooga, TN, Public Improvement,
- - 10.2% 5s, 2021 $2,570 $2,699,837
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Puerto Rico, 5.4s, 2006(+++) 3,000 3,375,660
- -----------------------------------------------------------------------------------------------------------------------------
Knoxville, TN, Recreational Facilities
Improvement, 5.5s, 2017 645 709,274
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth, Refunding Public
Improvement, 5s, 2024 2,000 2,055,560
- -----------------------------------------------------------------------------------------------------------------------------
Rutherford County, TN, School & Public
Improvement, 5s, 2022 1,510 1,559,120
- -----------------------------------------------------------------------------------------------------------------------------
Rutherford County, TN, Water Utility
Improvement, 5s, 2020 1,000 1,040,590
- -----------------------------------------------------------------------------------------------------------------------------
Williamson County, TN, Public Improvement,
5.375s, 2010(+++) 1,500 1,725,195
- -----------------------------------------------------------------------------------------------------------------------------
Williamson County, TN, Public Improvement,
5s, 2018 1,760 1,874,347
- -----------------------------------------------------------------------------------------------------------------------------
$15,039,583
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Fayette County, TN, School District, MBIA,
Schools - 16.1% 5.6s, 2008(+++) $1,215 $1,391,090
- -----------------------------------------------------------------------------------------------------------------------------
Franklin Tennessee Special School
District, Capital Appreciation, 0s, 2020 2,000 912,340
- -----------------------------------------------------------------------------------------------------------------------------
Gibson County, TN, School District, MBIA,
5.75s, 2009(+++) 455 532,259
- -----------------------------------------------------------------------------------------------------------------------------
Gibson County, TN, School District, AMBAC,
5s, 2015 650 723,847
- -----------------------------------------------------------------------------------------------------------------------------
Gibson County, TN, School District, MBIA,
5.75s, 2016 190 216,461
- -----------------------------------------------------------------------------------------------------------------------------
Giles County, TN, School Improvement,
FGIC, 5.75s, 2010(+++) 1,980 2,316,481
- -----------------------------------------------------------------------------------------------------------------------------
Greene County, TN, Rural School, FGIC, 5s, 2020 1,240 1,299,483
- -----------------------------------------------------------------------------------------------------------------------------
Greene County, TN, Rural School, FGIC, 5s, 2021 1,300 1,352,858
- -----------------------------------------------------------------------------------------------------------------------------
Lincoln County, TN, School Improvement,
FGIC, 5.8s, 2019 1,000 1,147,220
- -----------------------------------------------------------------------------------------------------------------------------
Lincoln County, TN, School Improvement,
FGIC, 5.8s, 2020 1,000 1,147,220
- -----------------------------------------------------------------------------------------------------------------------------
Milan, TN, Special School District, MBIA,
5s, 2021 1,000 1,039,940
- -----------------------------------------------------------------------------------------------------------------------------
Roane County, TN, Rural School, FGIC,
5.6s, 2019 915 1,005,109
- -----------------------------------------------------------------------------------------------------------------------------
Roane County, TN, Rural School, FGIC,
5.6s, 2020 975 1,062,487
- -----------------------------------------------------------------------------------------------------------------------------
Rutherford County, TN, School District,
5.875s, 2010(+++) 3,100 3,662,464
- -----------------------------------------------------------------------------------------------------------------------------
Rutherford County, TN, School Improvement,
0s, 2007(+++) 1,500 885,615
- -----------------------------------------------------------------------------------------------------------------------------
State of Tennessee, School Bond Authority
(Higher Educational Facilities), FSA,
5.25s, 2029 3,000 3,113,670
- -----------------------------------------------------------------------------------------------------------------------------
Williamson County, TN, Rural School,
6.125s, 2010(+++) 1,575 1,880,329
- -----------------------------------------------------------------------------------------------------------------------------
$23,688,873
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Hospitals - Bristol, TN, Health & Educational
14.3% Facilities Board Rev. (Bristol Memorial),
FGIC, 5.45s, 2021 $2,825 $2,888,930
- -----------------------------------------------------------------------------------------------------------------------------
Cookeville, TN, Industrial Development
Board (Cookeville General), 5.75s, 2010 2,000 2,056,300
- -----------------------------------------------------------------------------------------------------------------------------
Jackson, TN, Hospital Rev. (Jackson-
Madison County General Hospital), AMBAC,
5s, 2018 1,000 1,069,640
- -----------------------------------------------------------------------------------------------------------------------------
Johnson City, TN, Health & Education
Financing Authority Rev. (Johnson City
Medical Center Hospital), MBIA, 5.25s, 2016 1,375 1,426,521
- -----------------------------------------------------------------------------------------------------------------------------
Johnson City, TN, Health & Education
Financing Authority Rev. (Johnson City
Medical Center Hospital), MBIA, 5s, 2018(+++) 1,500 1,595,205
- -----------------------------------------------------------------------------------------------------------------------------
Knox County, TN, Health, Education &
Housing Facilities Board Rev., FSA,
5s, 2022 1,000 1,027,010
- -----------------------------------------------------------------------------------------------------------------------------
Knox County, TN, Health, Education &
Housing Facilities Board Rev. (Baptist
Health Systems), 6.5s, 2031 800 824,936
- -----------------------------------------------------------------------------------------------------------------------------
Knox County, TN, Health, Education &
Housing Facilities Board Rev. (Catholic
Healthcare Partners), 5.25s, 2030 1,000 1,018,330
- -----------------------------------------------------------------------------------------------------------------------------
Knox County, TN, Health, Education &
Housing Facilities Board Rev. (East
Tennessee Children's Hospital), 5.75s, 2033 450 449,496
- -----------------------------------------------------------------------------------------------------------------------------
Knox County, TN, Health, Education &
Housing Facilities Board Rev. (Fort
Sanders), MBIA, 5.75s, 2014 3,250 3,779,360
- -----------------------------------------------------------------------------------------------------------------------------
Metropolitan Government of Nashville &
Davidson County, TN, Health, Educational &
Housing Facilities Board Rev. (Adventist
Health System),
5.25s, 2020 1,000 997,440
- -----------------------------------------------------------------------------------------------------------------------------
Shelby County, TN, Health, Educational &
Housing Facilities Board Rev. (Methodist
Healthcare), 6.5s, 2021 1,000 1,095,200
- -----------------------------------------------------------------------------------------------------------------------------
Shelby County, TN, Health, Educational &
Housing Facilities Board Rev.
(St. Judes Children's Research), 5.5s, 2020 1,750 1,830,867
- -----------------------------------------------------------------------------------------------------------------------------
Springfield, TN, Health & Higher
Educational Facilities Hospital Rev.
(Northcrest Medical Center), 5.25s, 2013 1,000 1,015,210
- -----------------------------------------------------------------------------------------------------------------------------
$21,074,445
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Long Term Shelby County, TN, Health Educational &
Care - 0.2% Housing Facilities Board Rev. (Beverly
Project), 7.4s, 2011 $280 $279,852
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Humphreys County, TN, Solid Waste Disposal
Chemicals - 1.2% Rev. (DuPont), 6.7s, 2024 $1,750 $1,840,090
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Hardeman County, TN, Misc. Rev.
Other - 0.7% (Correctional Facilities Corp.), 7.75s, 2017 $1,000 $1,041,470
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - McMinn County, TN, Industrial Development
Paper - 0.7% Board, Pollution Control Rev. (Bowater,
Inc.), 7.625s, 2016 $1,000 $1,000,420
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Bristol, TN, Industrial Development
Retail - 0.7% Authority Rev. (Kmart Corp.), 7.5s, 2004(+++) $960 $1,034,122
- -----------------------------------------------------------------------------------------------------------------------------
Miscellaneous Revenue -
Entertainment & Memphis Shelby County, TN (Sports Memphis
Tourism - 2.6% Arena), AMBAC, 5.125s, 2028 $2,000 $2,049,240
- -----------------------------------------------------------------------------------------------------------------------------
Memphis-Shelby County, TN (Sports Memphis
Arena), AMBAC, 5.35s, 2029 1,665 1,752,146
- -----------------------------------------------------------------------------------------------------------------------------
$3,801,386
- -----------------------------------------------------------------------------------------------------------------------------
Multi-Family Housing Chattanooga, TN, Health, Educational &
Revenue - 3.2% Housing Facilities (Rainbow Creek), GNMA,
6.125s, 2019 $470 $504,018
- -----------------------------------------------------------------------------------------------------------------------------
Franklin, TN, Industrial Development Rev.
(Landings Apartments), FSA, 6s, 2026 1,000 1,045,960
- -----------------------------------------------------------------------------------------------------------------------------
Franklin, TN, Industrial Development Rev.
(Sussex Downs), FHA, 6.75s, 2004(+++) 1,000 1,068,280
- -----------------------------------------------------------------------------------------------------------------------------
Memphis, TN, Health & Educational
Facilities Board Rev. (Hickory Point
Apartments), MBIA, 5.85s, 2020 1,000 1,077,330
- -----------------------------------------------------------------------------------------------------------------------------
Metropolitan Government of Nashville &
Davidson County, TN, Health, Educational &
Housing Facilities Board Rev. (Berkshire
Place), GNMA, 6s, 2023 500 522,570
- -----------------------------------------------------------------------------------------------------------------------------
Metropolitan Government of Nashville &
Davidson County, TN, Health, Educational &
Housing Facilities Board Rev. (Herman
Street), FHA, 7.25s, 2032 495 502,856
- -----------------------------------------------------------------------------------------------------------------------------
$4,721,014
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - Tennessee Housing Development Agency
State - 6.4% Mortgage Finance, 5.35s, 2034 $2,000 $2,027,120
- -----------------------------------------------------------------------------------------------------------------------------
Tennessee Housing Development Agency Rev.,
Homeownership Program, 5.05s, 2027 1,000 1,010,490
- -----------------------------------------------------------------------------------------------------------------------------
Tennessee Housing Development Agency Rev.,
Homeownership Program, FSA, 5.4s, 2032 970 987,722
- -----------------------------------------------------------------------------------------------------------------------------
Tennessee Housing Development Agency Rev.,
Homeownership Program, FSA, 4.15s, 2033 990 997,940
- -----------------------------------------------------------------------------------------------------------------------------
Tennessee Housing Development Agency Rev.,
Homeownership Program, MBIA, 6.125s, 2020 710 751,365
- -----------------------------------------------------------------------------------------------------------------------------
Tennessee Housing Development Agency Rev.,
Housing, 5.45s, 2014 2,535 2,684,159
- -----------------------------------------------------------------------------------------------------------------------------
Tennessee Housing Development Agency Rev.,
Housing, 6s, 2020 955 1,000,439
- -----------------------------------------------------------------------------------------------------------------------------
$9,459,235
- -----------------------------------------------------------------------------------------------------------------------------
State and Local Chattanooga, TN, Industrial Development
Appropriation - 2.9% Board, AMBAC, 5.75s, 2018 $1,000 $1,133,290
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., 5.75s, 2030 2,000 2,097,740
- -----------------------------------------------------------------------------------------------------------------------------
State of Tennessee, School Bond Authority
(Higher Educational Facilities), FSA, 5s, 2017 1,000 1,072,230
- -----------------------------------------------------------------------------------------------------------------------------
$4,303,260
- -----------------------------------------------------------------------------------------------------------------------------
Tax - Other - 0.5% Territory of Virgin Islands (School, Sewer
& Correctional Facilities Improvement),
5.875s, 2018 $730 $752,265
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco - 0.6% Guam Economic Development Authority,
Tobacco Settlement, 5.5s, 2041 $350 $302,719
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corp., 5s, 2031 750 610,140
- -----------------------------------------------------------------------------------------------------------------------------
$912,859
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Colleges - 4.0% Metropolitan Government of Nashville &
Davidson County, TN, Health, Educational &
Housing Facilities Board Rev. (McKendree
Village, Inc.), 5.125s, 2020 $1,000 $1,051,230
- -----------------------------------------------------------------------------------------------------------------------------
Metropolitan Government of Nashville &
Davidson County, TN, Health, Educational &
Housing Facilities Board Rev. (Meharry
Medical College), AMBAC, 5s, 2024 3,750 3,834,113
- -----------------------------------------------------------------------------------------------------------------------------
Metropolitan Government of Nashville &
Davidson County, TN, Health, Educational &
Housing Facilities Board Rev. (Vanderbilt
University), 5s, 2019 1,000 1,048,420
- -----------------------------------------------------------------------------------------------------------------------------
$5,933,763
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Municipal Dickson, TN, Electric Systems Rev., FSA,
Owned - 9.0% 5s, 2016 $1,490 $1,629,225
- -----------------------------------------------------------------------------------------------------------------------------
Jackson, TN, Electric Systems Rev., MBIA,
5s, 2018 1,000 1,053,990
- -----------------------------------------------------------------------------------------------------------------------------
Lawrenceburg, TN, Electric Rev., MBIA,
5.5s, 2009(+++) 1,255 1,460,356
- -----------------------------------------------------------------------------------------------------------------------------
Metropolitan Government of Nashville &
Davidson County, TN, Electric Rev., MBIA,
0s, 2012 3,305 2,363,240
- -----------------------------------------------------------------------------------------------------------------------------
Metropolitan Government of Nashville &
Davidson County, TN, Electric Rev.,
5.125s, 2021 1,500 1,569,765
- -----------------------------------------------------------------------------------------------------------------------------
Mt. Juliet, TN, Public Building Authority
Rev. (Madison), MBIA, 7.7s, 2004(+++) 1,100 1,234,079
- -----------------------------------------------------------------------------------------------------------------------------
Mt. Juliet, TN, Public Building Authority
Rev. (Madison), MBIA, 7.8s, 2004(+++) 3,500 3,927,770
- -----------------------------------------------------------------------------------------------------------------------------
$13,238,425
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Other - 0.8% Tennessee Gas, Natural Gas Rev. (Tennergy
Corp.), MBIA, 5s, 2009 $1,000 $1,125,420
- -----------------------------------------------------------------------------------------------------------------------------
Water and Sewer Utility Revenue - Clarksville, TN, Water, Sewer & Gas Rev.,
15.7% 5s, 2022 $445 $458,737
- -----------------------------------------------------------------------------------------------------------------------------
Harpeth Valley, TN, Utilities Improvement
Rev., MBIA, 5.05s, 2020 1,925 2,039,153
- -----------------------------------------------------------------------------------------------------------------------------
Hendersonville, TN, Utilities Improvement
Rev., FGIC, 5.5s, 2018 1,125 1,238,175
- -----------------------------------------------------------------------------------------------------------------------------
Madison, TN, Utility Waterworks Rev.,
MBIA, 5s, 2019 2,750 2,898,307
- -----------------------------------------------------------------------------------------------------------------------------
Memphis, TN, Sewage Systems Rev., 5.75s, 2016 625 703,519
- -----------------------------------------------------------------------------------------------------------------------------
Memphis, TN, Sewage Systems Rev., 5.75s, 2018 1,145 1,275,816
- -----------------------------------------------------------------------------------------------------------------------------
Memphis, TN, Sewage Systems Rev., 5.75s, 2020 750 826,582
- -----------------------------------------------------------------------------------------------------------------------------
South Blount County, TN, Utility District
Rev., FGIC, 5s, 2016 1,175 1,275,063
- -----------------------------------------------------------------------------------------------------------------------------
West Knox Utility District, TN, Water &
Sewer Rev., MBIA, 0s, 2003(+++) 1,045 1,043,150
- -----------------------------------------------------------------------------------------------------------------------------
West Knox Utility District, TN, Water &
Sewer Rev., MBIA, 0s, 2004(+++) 1,920 1,894,598
- -----------------------------------------------------------------------------------------------------------------------------
West Knox Utility District, TN, Water &
Sewer Rev., MBIA, 0s, 2006(+++) 1,920 1,822,810
- -----------------------------------------------------------------------------------------------------------------------------
West Knox Utility District, TN, Water &
Sewer Rev., MBIA, 0s, 2007(+++) 1,920 1,758,701
- -----------------------------------------------------------------------------------------------------------------------------
White House Utility District, TN, Water &
Sewer Rev. (Robertson & Sumner Counties
Waterworks), FGIC, 0s, 2014 3,590 2,354,789
- -----------------------------------------------------------------------------------------------------------------------------
White House Utility District, TN, Water &
Sewer Rev. (Robertson & Sumner Counties
Waterworks), FSA, 6s, 2020 1,000 1,182,110
- -----------------------------------------------------------------------------------------------------------------------------
White House Utility District, TN, Water &
Sewer Rev. (Robertson & Sumner Counties
Waterworks), FSA, 5s, 2021 800 830,960
- -----------------------------------------------------------------------------------------------------------------------------
White House Utility District, TN, Water &
Sewer Rev. (Robertson & Sumner Counties
Waterworks), FSA, 5s, 2032 1,500 1,518,240
- -----------------------------------------------------------------------------------------------------------------------------
$23,120,710
- -----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Identified Cost, $134,053,703) $145,004,524
- -----------------------------------------------------------------------------------------------------------------------------
Floating Rate Demand Notes - 1.0%
- -----------------------------------------------------------------------------------------------------------------------------
Sevier County, TN, Public Building
Authority, due 10/01/03, at Identified
Cost $1,430 $1,430,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $135,483,703) $146,434,524
- -----------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 0.7% 1,078,401
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - 100.0% $147,512,925
- -----------------------------------------------------------------------------------------------------------------------------
See portfolio footnotes and notes to financial statements.
- -----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited) - 9/30/03 MFS(R) VIRGINIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------------------------------------------------------
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset
classes.
Municipal Bonds - 98.3%
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
ISSUER (000 Omitted) $ VALUE
- -----------------------------------------------------------------------------------------------------------------------------
Airport and Port Metropolitan Washington, DC, Airport Rev.,
Revenue - 6.9% 5.5s, 2016 $2,465 $2,626,926
- -----------------------------------------------------------------------------------------------------------------------------
Metropolitan Washington, DC, Airport Rev.,
5.75s, 2020 11,000 11,701,690
- -----------------------------------------------------------------------------------------------------------------------------
Metropolitan Washington, DC, Airport Rev.,
FGIC, 5.125s, 2024 1,000 1,013,990
- -----------------------------------------------------------------------------------------------------------------------------
Metropolitan Washington, DC, Airport Rev.,
FGIC, 5s, 2025 705 707,418
- -----------------------------------------------------------------------------------------------------------------------------
Metropolitan Washington, DC, Airport Rev.,
MBIA, 5s, 2018 2,000 2,063,240
- -----------------------------------------------------------------------------------------------------------------------------
Norfolk, VA, Airport Authority Rev., FGIC,
5.375s, 2017 1,755 1,908,387
- -----------------------------------------------------------------------------------------------------------------------------
Norfolk, VA, Airport Authority Rev., FGIC,
5s, 2022 3,000 3,079,380
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Resources Authority, Airport
Rev., 5.125s, 2027 720 726,430
- -----------------------------------------------------------------------------------------------------------------------------
$23,827,461
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - General
Purpose - 3.4% Bristol, VA, MBIA, 5.3s, 2018 $1,250 $1,369,788
- -----------------------------------------------------------------------------------------------------------------------------
Lebanon, VA, 6.375s, 2006(+++) 1,625 1,836,689
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority,
5.25s, 2021 3,075 3,211,991
- -----------------------------------------------------------------------------------------------------------------------------
Richmond, VA, FSA, 5.125s, 2024 5,000 5,148,050
- -----------------------------------------------------------------------------------------------------------------------------
$11,566,518
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Improvement
- - 12.8% Alexandria, VA, 5.5s, 2018 $2,980 $3,328,302
- -----------------------------------------------------------------------------------------------------------------------------
Chesterfield County, VA, 5s, 2020 2,015 2,117,765
- -----------------------------------------------------------------------------------------------------------------------------
Chesterfield County, VA, 6s, 2020 1,900 2,167,957
- -----------------------------------------------------------------------------------------------------------------------------
Hampton, VA, Public Improvement, 6s, 2018 3,280 3,818,773
- -----------------------------------------------------------------------------------------------------------------------------
Hampton, VA, Public Improvement, 6s, 2019 3,480 4,029,944
- -----------------------------------------------------------------------------------------------------------------------------
Loudoun County, VA, Public Improvement,
5.375s, 2016 2,650 2,932,940
- -----------------------------------------------------------------------------------------------------------------------------
Lynchburg, VA, Public Improvement, 5.6s, 2020 1,765 1,960,739
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency,
RITES, FSA, 10.781s, 2016+(++) 1,105 1,489,651
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency,
RITES, FSA, 9.773s, 2017+(++) 615 761,099
- -----------------------------------------------------------------------------------------------------------------------------
Richmond, VA, 0s, 2006 3,500 3,365,005
- -----------------------------------------------------------------------------------------------------------------------------
Richmond, VA, 0s, 2007 5,280 4,918,795
- -----------------------------------------------------------------------------------------------------------------------------
Richmond, VA, 0s, 2008 7,270 6,521,481
- -----------------------------------------------------------------------------------------------------------------------------
Richmond, VA, 0s, 2009 5,175 4,424,418
- -----------------------------------------------------------------------------------------------------------------------------
Suffolk, VA, Public Improvement, 5.5s, 2020 1,880 2,042,733
- -----------------------------------------------------------------------------------------------------------------------------
$43,879,602
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Culpeper County, VA, School District, FSA,
Schools - 0.3% 6s, 2019 $1,000 $1,191,550
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Albemarle County, VA, Industrial
Hospitals - 15.8% Development Authority, Hospital Rev.
(Martha Jefferson Hospital), 5.25s, 2035 $3,000 $3,013,860
- -----------------------------------------------------------------------------------------------------------------------------
Arlington County, VA, Industrial
Development Authority Rev. (Virginia
Hospital Center Arlington Health Systems),
5.25s, 2021 2,600 2,653,014
- -----------------------------------------------------------------------------------------------------------------------------
Danville, VA, Industrial Development
Authority, Hospital Rev. (Danville
Regional Medical Center), AMBAC, 5.2s, 2018 2,865 3,222,122
- -----------------------------------------------------------------------------------------------------------------------------
Fredericksburg, VA, Industrial Development
Rev., 5.125s, 2033 750 744,097
- -----------------------------------------------------------------------------------------------------------------------------
Fredericksburg, VA, Industrial Development
Rev. (Medicorp Health Systems), AMBAC,
5.25s, 2023 11,000 11,520,190
- -----------------------------------------------------------------------------------------------------------------------------
Henrico County, VA, Industrial Development
Authority Rev. (Bon Secours Health
Systems, Inc.), MBIA, 6.25s, 2020 1,500 1,858,695
- -----------------------------------------------------------------------------------------------------------------------------
Henrico County, VA, Economic Development
Authority Rev. (Bon Secours Health
Systems, Inc.), 5.6s, 2030 2,000 2,049,440
- -----------------------------------------------------------------------------------------------------------------------------
Loudoun County, VA, Industrial Development
Authority, Hospital Rev. (Loudoun Hospital
Center), 6.1s, 2032 1,000 1,018,990
- -----------------------------------------------------------------------------------------------------------------------------
Lynchburg, VA, Industrial Development
Authority Rev., 5.2s, 2018 1,000 1,027,790
- -----------------------------------------------------------------------------------------------------------------------------
Medical College of Virginia, Hospital
Authority Rev., MBIA, 5.125s, 2018 3,000 3,187,620
- -----------------------------------------------------------------------------------------------------------------------------
Peninsula Ports Authority Rev. (Whittaker
Memorial), FHA, 8.7s, 2023 2,080 2,576,059
- -----------------------------------------------------------------------------------------------------------------------------
Peninsula Ports, VA, Health Care Rev.
(Riverside Health System), 5s, 2018 3,580 3,671,505
- -----------------------------------------------------------------------------------------------------------------------------
Roanoke, VA, Industrial Development
Authority, Hospital Rev. (Roanoke
Memorial), MBIA, 6.125s, 2017 6,000 7,344,420
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Beach, VA, Development Authority
Rev. (Sentara Health System),
5.25s, 2014 1,740 1,840,642
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Beach, VA, Development Authority
Rev. (Sentara Health System),
4.75s, 2018 3,750 3,813,825
- -----------------------------------------------------------------------------------------------------------------------------
Winchester, VA, Industrial Development
Authority Rev., RIBS, AMBAC,
11.933s, 2014(++) 4,200 4,836,594
- -----------------------------------------------------------------------------------------------------------------------------
$54,378,863
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Long Term Henrico County, VA, Economic Development
Care - 0.3% Authority, Residential Care Facilities
Rev. (United Methodist Homes), 6.7s, 2027 $750 $758,842
- -----------------------------------------------------------------------------------------------------------------------------
Martinsville, VA, Industrial Development
Authority Rev. (Beverley Enterprises),
6.75s, 2004 260 265,086
- -----------------------------------------------------------------------------------------------------------------------------
$1,023,928
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Charles City County, VA, Industrial
Environmental Services - 0.9% Development Authority, Solid Waste
Disposal Facilities Rev., 6.25s, 2027 $1,500 $1,610,760
- -----------------------------------------------------------------------------------------------------------------------------
Henrico County, VA, Industrial Development
Authority Rev. (Browning Ferris Co.),
5.45s, 2014 1,750 1,589,998
- -----------------------------------------------------------------------------------------------------------------------------
$3,200,758
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Loudoun County, VA, Industrial Development
Other - 0.9% Authority Rev. (Dulles Airport Marriott
Hotel), 7.125s, 2015 $2,000 $2,007,180
- -----------------------------------------------------------------------------------------------------------------------------
Peninsula Ports Authority Virginia Coal
(Dominion Terminal Associates), 6s, 2033 1,000 1,013,050
- -----------------------------------------------------------------------------------------------------------------------------
$3,020,230
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Bedford County, VA, Industrial Development
Paper - 3.1% Authority Rev. (Georgia Pacific Corp.),
5.6s, 2025 $1,000 $803,670
- -----------------------------------------------------------------------------------------------------------------------------
Hopewell, VA, Industrial Development
Authority, Resources Recovery Rev. (Stone
Container Corp. Project), 8.25s, 2016 1,250 1,274,113
- -----------------------------------------------------------------------------------------------------------------------------
Isle Wight County, VA, Industrial
Development Rev. (Union Camp), 6.55s, 2024 4,000 4,111,120
- -----------------------------------------------------------------------------------------------------------------------------
Isle Wight County, VA, Industrial
Development Rev. (Union Camp), 6.1s, 2027 2,750 2,835,965
- -----------------------------------------------------------------------------------------------------------------------------
West Point, VA, Industrial Development
Authority, Solid Waste Disposal Rev.
(Chesapeake Corp.), 6.375s, 2019 1,900 1,603,562
- -----------------------------------------------------------------------------------------------------------------------------
$10,628,430
- -----------------------------------------------------------------------------------------------------------------------------
Miscellaneous Revenue - Rockbridge County, VA, Industrial
Other - 0.1% Development Authority Rev. (Virginia Horse
Center), 6.85s, 2021 $500 $506,805
- -----------------------------------------------------------------------------------------------------------------------------
Multi-Family Housing Alexandria, VA, Redevelopment & Housing
Revenue - 5.4% Finance Authority Rev., 9s, 2018 $3,805 $3,804,201
- -----------------------------------------------------------------------------------------------------------------------------
Arlington County, VA, Industrial
Development Authority Rev. (Colonial
Village), FNMA, 5.15s, 2031 3,000 3,090,270
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Housing Development Authority
Rev., 6.5s, 2013 2,300 2,374,014
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Housing Development Authority
Rev., 5.95s, 2016 1,905 2,027,110
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Housing Development Authority
Rev., 5.15s, 2017 3,000 3,087,420
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Housing Development Authority
Rev., 5.625s, 2020 2,000 2,088,600
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Housing Development Authority
Rev., 4.85s, 2033 2,000 2,019,760
- -----------------------------------------------------------------------------------------------------------------------------
$18,491,375
- -----------------------------------------------------------------------------------------------------------------------------
Parking - 0.5% Norfolk, VA, Parking System Rev., MBIA,
5s, 2020 $1,630 $1,720,204
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - Virginia Housing Development Authority
State - 2.3% Rev., INFLOs, 10.47s, 2019(++) $7,500 $7,797,375
- -----------------------------------------------------------------------------------------------------------------------------
State and Local Blue Ridge, VA, Regional Jail Authority,
Appropriation - 21.1% MBIA, 5.2s, 2021 $1,830 $1,939,159
- -----------------------------------------------------------------------------------------------------------------------------
Caroline County, VA, Industrial
Development Authority, Lease Rev., 5.125s, 2034 1,000 1,020,580
- -----------------------------------------------------------------------------------------------------------------------------
Chesapeake, VA, Industrial Development
Authority (Chesapeake Court House), MBIA,
6.25s, 2011 3,985 4,583,388
- -----------------------------------------------------------------------------------------------------------------------------
Chesapeake, VA, Industrial Development
Authority (Chesapeake Court House), MBIA,
5.25s, 2017 2,000 2,175,380
- -----------------------------------------------------------------------------------------------------------------------------
Chesterfield County, VA, Industrial
Development Authority (Public Facilities),
7.5s, 2008 1,720 1,740,915
- -----------------------------------------------------------------------------------------------------------------------------
Fairfax County, VA, 6.1s, 2017 3,090 3,689,862
- -----------------------------------------------------------------------------------------------------------------------------
Fairfax County, VA, Economic Development
(Laurel Hill Public Facilities),
5s, 2023 1,690 1,742,103
- -----------------------------------------------------------------------------------------------------------------------------
Fairfax County, VA, Economic Development
Authority, Parking Rev. (Vienna II
Metrorail), 6s, 2016 1,650 1,934,971
- -----------------------------------------------------------------------------------------------------------------------------
Fairfax County, VA, Economic Development
Authority, Parking Rev. (Vienna II
Metrorail), 6s, 2017 1,750 2,047,045
- -----------------------------------------------------------------------------------------------------------------------------
Fairfax County, VA, Redevelopment &
Housing Authority, 5.5s, 2017 2,225 2,319,362
- -----------------------------------------------------------------------------------------------------------------------------
Henrico County, VA, Industrial Development
Authority Rev., 6.5s, 2005(+++) 5,000 5,594,950
- -----------------------------------------------------------------------------------------------------------------------------
King William County, VA, Industrial
Development Authority, Lease Rev.
(Virginia Courthouse), AMBAC, 5s, 2023 890 919,753
- -----------------------------------------------------------------------------------------------------------------------------
Middlesex County, VA, Industrial
Development Authority, AMBAC, 5.125s, 2027 1,000 1,034,430
- -----------------------------------------------------------------------------------------------------------------------------
Middlesex County, VA, Industrial
Development Authority, AMBAC, 5.25s, 2032 2,000 2,095,280
- -----------------------------------------------------------------------------------------------------------------------------
Montgomery County, VA, Industrial
Development, AMBAC, 6s, 2017 2,120 2,468,867
- -----------------------------------------------------------------------------------------------------------------------------
New River Valley, VA, Regional Jail
Authority, MBIA, 5.125s, 2019 6,405 6,822,030
- -----------------------------------------------------------------------------------------------------------------------------
Orange County, VA, Industrial Development
Authority (Orange County Projects), AMBAC,
5s, 2034 1,000 1,009,950
- -----------------------------------------------------------------------------------------------------------------------------
Pamunkey, VA, Regional Jail Authority,
MBIA, 5.75s, 2006(+++) 2,230 2,540,996
- -----------------------------------------------------------------------------------------------------------------------------
Pamunkey, VA, Regional Jail Authority,
MBIA, 5.75s, 2018 270 300,928
- -----------------------------------------------------------------------------------------------------------------------------
Powhatan County, VA, Industrial
Development Authority (Virginia Capital
Projects), AMBAC, 5.25s, 2033 1,000 1,047,480
- -----------------------------------------------------------------------------------------------------------------------------
Prince William County, VA, Lease
Partnerships, 5s, 2021 1,500 1,563,375
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES,
AMBAC, 9.458s, 2013+(++) 2,000 2,615,760
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES,
AMBAC, 9.458s, 2016+(++) 500 655,830
- -----------------------------------------------------------------------------------------------------------------------------
Richmond, VA, Industrial Development
Authority Government (Atmore Corp.),
AMBAC, 5s, 2018 1,845 2,042,636
- -----------------------------------------------------------------------------------------------------------------------------
Richmond, VA, Public Facilities
(Megahertz), AMBAC, 5s, 2022 1,600 1,653,392
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Biotechnology Research Park
(Biotech One), 5.25s, 2018 8,800 9,469,416
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Biotechnology Research Park,
Lease Rev. (Consolidated Laboratories),
5s, 2021 1,500 1,563,765
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Public Building Authority, MBIA,
0s, 2007 3,750 3,444,825
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Resources Authority Rev., 5s, 2017 1,360 1,454,044
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Resources Authority Rev., FSA,
5.5s, 2019 1,070 1,183,292
- -----------------------------------------------------------------------------------------------------------------------------
$72,673,764
- -----------------------------------------------------------------------------------------------------------------------------
Tax - Other - 1.4% Greater Richmond Convertible Center
Authority, Hotel Tax Rev. (Convention
Center Expansion), 6.125s, 2020 $3,500 $3,916,115
- -----------------------------------------------------------------------------------------------------------------------------
Virgin Islands Public Finance Authority
Rev., 5.625s, 2025 1,000 1,014,620
- -----------------------------------------------------------------------------------------------------------------------------
$4,930,735
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco - 0.3% Childrens Trust Fund, Settlement Rev.,
5.375s, 2033 $485 $433,406
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corp., 5s, 2021 645 542,561
- -----------------------------------------------------------------------------------------------------------------------------
$975,967
- -----------------------------------------------------------------------------------------------------------------------------
Toll Roads - 2.0% Chesapeake Bay, VA, Bridge & Tunnel
Authority, FGIC, 0s, 2005 $4,535 $4,412,963
- -----------------------------------------------------------------------------------------------------------------------------
Pocahontas Parkway Assn., VA, Toll Road
Rev., 0s, 2012 1,500 707,880
- -----------------------------------------------------------------------------------------------------------------------------
Pocahontas Parkway Assn., VA, Toll Road
Rev., 0s, 2013 1,500 650,445
- -----------------------------------------------------------------------------------------------------------------------------
Pocahontas Parkway Assn., VA, Toll Road
Rev., 0s, 2014 1,500 597,645
- -----------------------------------------------------------------------------------------------------------------------------
Pocahontas Parkway Assn., VA, Toll Road
Rev., 0s, 2015 1,500 549,135
- -----------------------------------------------------------------------------------------------------------------------------
$6,918,068
- -----------------------------------------------------------------------------------------------------------------------------
Transportation - Special Virginia Commonwealth Board Program (Oak
Tax - 1.7% Grove Connector), 5.25s, 2022 $1,500 $1,562,610
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Transportation Board (US Route
58), 5.125s, 2021 4,000 4,135,520
- -----------------------------------------------------------------------------------------------------------------------------
$5,698,130
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Colleges - 4.3% Danville, VA, Industrial Development
Authority, Educational Facilities Rev.
(Averett University), 6s, 2022 $500 $506,655
- -----------------------------------------------------------------------------------------------------------------------------
Loudoun County, VA, Industrial Development
Authority Rev. (George Washington
University), 6.25s, 2012 2,710 2,746,938
- -----------------------------------------------------------------------------------------------------------------------------
University of Virginia, University Rev.,
5s, 2022 1,000 1,047,110
- -----------------------------------------------------------------------------------------------------------------------------
University of Virginia, University Rev.,
5s, 2023 1,500 1,551,510
- -----------------------------------------------------------------------------------------------------------------------------
Virginia College Building Authority (21st
Century College Program), 6s, 2018 2,000 2,289,780
- -----------------------------------------------------------------------------------------------------------------------------
Virginia College Building Authority,
Educational Facilities Rev. (Hampden
Syndey College), 5s, 2016 1,730 1,843,194
- -----------------------------------------------------------------------------------------------------------------------------
Virginia College Building Authority,
Educational Facilities Rev. (Hampton
University), 5s, 2018 1,655 1,739,835
- -----------------------------------------------------------------------------------------------------------------------------
Virginia College Building Authority,
Educational Facilities Rev. (Hampton
University), 6s, 2020 1,000 1,133,380
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Public School Authority, 6.5s, 2004(++) 1,875 1,998,600
- -----------------------------------------------------------------------------------------------------------------------------
$14,857,002
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Cogeneration - 0.8% Mecklenburg County, VA, Industrial
Development Authority Rev. (UAE
Mecklenburg, LP), 6.5s, 2017 $700 $704,886
- -----------------------------------------------------------------------------------------------------------------------------
Pittsylvania County, VA, Industrial
Development Authority Rev. (Multi-trade of
Pittsylvania), 7.5s, 2014 2,000 1,980,600
- -----------------------------------------------------------------------------------------------------------------------------
$2,685,486
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Investor Chesapeake, VA, Industrial Development
Owned - 1.2% Authority, 5.25s, 2008 $750 $797,235
- -----------------------------------------------------------------------------------------------------------------------------
Halifax County, VA, Industrial Development
Authority (Old Dominion Electric
Cooperative), AMBAC, 5.625s, 2028 3,000 3,157,140
- -----------------------------------------------------------------------------------------------------------------------------
$3,954,375
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Municipal Guam Power Authority Rev., RITES, AMBAC,
Owned - 4.7% 9.198s, 2015+(++) $1,010 $1,230,907
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority, 6s, 2015 3,000 3,320,460
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority,
RITES, FSA, 10.228s, 2017+(++) 2,500 3,452,750
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority,
RITES, FSA, 9.978s, 2019+(++) 1,270 1,603,629
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority,
RITES, FSA, 9.328s, 2020+(++) 1,250 1,451,700
- -----------------------------------------------------------------------------------------------------------------------------
Richmond, VA, Public Utility Rev., FSA,
5s, 2033 5,000 5,057,650
- -----------------------------------------------------------------------------------------------------------------------------
$16,117,096
- -----------------------------------------------------------------------------------------------------------------------------
Water and Sewer Utility Revenue - Fairfax County, VA, Water Authority Rev.,
8.0% 5s, 2027 $4,000 $4,067,000
- -----------------------------------------------------------------------------------------------------------------------------
Fairfax County, VA Water Authority Rev.,
5s, 2032 2,000 2,026,520
- -----------------------------------------------------------------------------------------------------------------------------
Hanover County, VA, Water & Sewer Systems
Rev., MBIA, 5.25s, 2026 2,000 2,056,560
- -----------------------------------------------------------------------------------------------------------------------------
Henry County, VA, Public Service Water &
Sewer Rev., FSA, 5.5s, 2019 1,000 1,174,320
- -----------------------------------------------------------------------------------------------------------------------------
Prince William County, VA, Water & Sewer
Systems Rev., FGIC, 5.5s, 2019 2,000 2,202,720
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Aqueduct & Sewer Authority
Rev., 9s, 2005(+++) 2,935 3,273,552
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Aqueduct & Sewer Authority
Rev., 10.25s, 2009(+++) 295 370,305
- -----------------------------------------------------------------------------------------------------------------------------
Spotsylvania County, VA, Water & Sewer
Rev., FSA, 5s, 2022 1,450 1,497,488
- -----------------------------------------------------------------------------------------------------------------------------
Virgina Beach, VA, Water Rev., 6s, 2020 1,000 1,150,340
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Resources Authority, Sewer
Systems Rev., 5.75s, 2021 1,335 1,464,201
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Resources Authority Rev., 6s, 2017 2,750 3,218,187
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Resources Authority Rev., 5.4s, 2018 1,135 1,250,066
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Resources Authority Rev., MBIA,
5.5s, 2019 1,600 1,773,104
- -----------------------------------------------------------------------------------------------------------------------------
Virginia Resources Authority Rev., MBIA,
5.5s, 2020 1,690 1,866,994
- -----------------------------------------------------------------------------------------------------------------------------
$27,391,357
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Electric - 0.1% Bristol, VA, Utility Systems Rev., FSA,
5.75s, 2016 $240 $286,488
- -----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Identified Cost, $311,868,242) $337,721,567
- -----------------------------------------------------------------------------------------------------------------------------
Floating Rate Demand Notes - 1.3%
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, due 10/01/03 $800 $800,000
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Municipal Water & Sewer
Finance Authority Rev.,
due 10/01/03 650 650,000
- -----------------------------------------------------------------------------------------------------------------------------
Pinellas County, FL, Health Facility
Authority, Pooled Hospital Loan Program,
due 10/01/03 2,900 2,900,000
- -----------------------------------------------------------------------------------------------------------------------------
Sevier County, TN, Public Building
Authority, due 10/01/03 50 50,000
- -----------------------------------------------------------------------------------------------------------------------------
West Baton Rouge Parish, LA, Variable Dow
Chemical Co., due 10/01/03 100 100,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Floating Rate Demand Notes, at Identified Cost $4,500,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $316,368,242) $342,221,567
- -----------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 0.4% 1,496,659
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - 100.0% $343,718,226
- -----------------------------------------------------------------------------------------------------------------------------
See portfolio footnotes and notes to financial statements.
- -----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited) - 9/30/03 MFS(R) WEST VIRGINIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------------------------------------------------------
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset
classes.
Municipal Bonds - 97.0%
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
ISSUER (000 Omitted) $ VALUE
- -----------------------------------------------------------------------------------------------------------------------------
Electrical Equipment - 0.6% West Virginia Economic Development
Authority, Public Service Commission
Facilities Series A, 5.2s, 2033 $1,000 $976,550
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - General Charleston, WV, Public Improvements,
Purpose - 14.4% 7.2s, 2009 $1,140 $1,418,593
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority,
5.25s, 2021 3,115 3,253,773
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia State, Highway Improvements,
FGIC, 5.625s, 2019 2,000 2,229,720
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia State, Public Improvements,
FGIC, 5s, 2021 4,000 4,207,760
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia State, Sewer Improvements,
FGIC, 5.25s, 2026 8,000 8,313,520
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia State, Water Utility
Improvements, FGIC, 5.5s, 2017 2,565 2,829,734
- -----------------------------------------------------------------------------------------------------------------------------
$22,253,100
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Improvement Brooke County, WV, Board of Education,
- - 5.1% FGIC, 5s, 2016 $1,390 $1,485,813
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Puerto Rico, Public
Improvement, FGIC, 5.5s, 2016 1,000 1,169,160
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Puerto Rico, Public
Improvement, RITES, MBIA,
10.228s, 2019+(++) 3,000 4,093,380
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency,
RITES, FSA, 9.773s, 2017+(++) 900 1,113,804
- -----------------------------------------------------------------------------------------------------------------------------
$7,862,157
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Jefferson County, WV, Board of Education,
Schools - 1.7% FGIC, 6.85s, 2009(+++) $1,680 $2,075,808
- -----------------------------------------------------------------------------------------------------------------------------
Monongalia County, WV, Board of Education,
MBIA, 7s, 2005(+++) 500 544,390
- -----------------------------------------------------------------------------------------------------------------------------
$2,620,198
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Hospitals - Berkeley County, WV, Hospital Rev. (City
9.3% Hospital, Inc.), 6.5s, 2022 $840 $804,468
- -----------------------------------------------------------------------------------------------------------------------------
Kanawha County, WV, Building Commission
Rev. (St. Francis Hospital),
7.5s, 2007(+++) 135 151,019
- -----------------------------------------------------------------------------------------------------------------------------
Ohio County, WV, County Commission Health
System Rev. (Ohio Valley Medical Center),
5.75s, 2013 750 652,553
- -----------------------------------------------------------------------------------------------------------------------------
Randolph County, WV, Community Health
Systems Rev. (Davis Health Systems, Inc.),
FSA, 5.2s, 2021 1,000 1,055,760
- -----------------------------------------------------------------------------------------------------------------------------
Weirton, WV, Municipal Hospital Building
Commission Rev. (Weirton Hospital Medical
Center), 6.375s, 2031 600 575,340
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Hospital Finance Authority,
Hospital Rev. (Cabell Huntington
Hospital), AMBAC, 6.25s, 2019 5,000 5,156,050
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Hospital Finance Authority,
Hospital Rev. (Charleston Area Medical
Center), 6.5s, 2023(+++) 2,000 2,474,800
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Hospital Finance Authority,
Hospital Rev. (Fairmont General Hospital),
6.625s, 2019 500 486,340
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Hospital Finance Authority,
Hospital Rev. (General Division Medical
Office Building), 7.25s, 2014 1,890 1,934,925
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Hospital Finance Authority,
Hospital Rev. (West Virginia University
Hospital), AMBAC, 5s, 2018 1,000 1,049,200
- -----------------------------------------------------------------------------------------------------------------------------
$14,340,455
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Long Term Harrison County, WV, Building Commission
Care - 2.1% Rev. (Maplewood Retirement), AMBAC, 5.25s, 2021 $2,625 $2,748,086
- -----------------------------------------------------------------------------------------------------------------------------
Monongalia County, WV, Health Facilities
Rev. (Beverly Enterprises, Inc.),
5.875s, 2007 500 492,190
- -----------------------------------------------------------------------------------------------------------------------------
$3,240,276
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Braxton County, WV, Solid Waste Disposal
Paper - 1.3% Rev. (Weyerhaeuser Co.), 6.5s, 2025 $2,000 $2,099,080
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Kanawha County, WV, Commercial Development
Retail - 0.7% Rev. (Kroger Co.), 8s, 2011 $1,000 $1,020,720
- -----------------------------------------------------------------------------------------------------------------------------
Multi-Family Housing Huntington, WV, Housing Corp. Rev., FNMA,
Revenue - 0.7% 7.5s, 2024 800 806,128
- -----------------------------------------------------------------------------------------------------------------------------
Webster County, WV, Housing Development
Rev. (Circlebrook), FHA, 6.35s, 2008 270 277,096
- -----------------------------------------------------------------------------------------------------------------------------
$1,083,224
- -----------------------------------------------------------------------------------------------------------------------------
Parking - 0.9% West Virginia Economic Development
Authority, Auto Lease Rev. (Capitol
Parking Garage), AMBAC, 5.8s, 2020 $1,260 $1,423,939
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - Charlestown, WV, Residential Mortgage
Local - 0.2% Rev., 6.2s, 2011 $380 $385,578
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - Puerto Rico Housing Finance Authority,
State - 3.5% 4.75s, 2023 $2,000 $1,999,880
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia State, Housing Development
Fund Rev., 5.25s, 2018 1,000 1,023,390
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia State, Housing Development
Fund Rev., 5.3s, 2023 1,000 1,020,810
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia State, Housing Development
Fund Rev., 0s, 2037 9,000 1,440,270
- -----------------------------------------------------------------------------------------------------------------------------
$5,484,350
- -----------------------------------------------------------------------------------------------------------------------------
State and Local Huntington, WV, Municipal Development
Appropriation - 21.2% Authority, Rev., MBIA, 5.1s, 2018 $1,740 $1,859,033
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority,
Rev., 5.25s, 2019 2,000 2,191,400
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority,
Rev. (State Office Building), XLCA,
5.25s, 2025 2,000 2,212,900
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Building Commission, "A",
RITES, AMBAC, 9.379s, 2018+(++) 4,520 5,806,482
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Building Commission, "B",
RITES, AMBAC, 9.379s, 2018+(++) 1,250 1,605,775
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Building Commission, Lease
Rev., MBIA, 0s, 2007(+++) 3,150 2,921,625
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Building Commission, Lease
Rev., MBIA, 0s, 2008(+++) 3,050 2,713,402
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Building Commission, Lease
Rev., MBIA, 0s, 2009(+++) 1,000 850,930
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Building Commission, Lease
Rev. (West Virginia Regional Jail), AMBAC,
5.375s, 2018 1,000 1,142,310
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Economic Development
Authority, MBIA, 5.5s, 2013 1,000 1,143,130
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Economic Development
Authority (Correctional Juvenile &
Public), 5s, 2020 1,000 1,036,900
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Economic Development
Authority (Correctional Juvenile &
Public), MBIA, 5s, 2026 2,100 2,122,932
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Economic Development
Authority, Department of Enviromental
Protection, 5.5s, 2022 2,000 2,155,900
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Parkways, Economic
Development & Tourism Authority Rev.,
FGIC, 0s, 2006(+++) 2,500 2,397,575
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia School Building Authority,
Misc. Tax Rev., FSA, 5.25s, 2021 2,550 2,689,919
- -----------------------------------------------------------------------------------------------------------------------------
$32,850,213
- -----------------------------------------------------------------------------------------------------------------------------
Tax - Other - 0.3% Territory of Virgin Islands, Public
Finance Authority, Rev., 5.625s, 2025 $500 $507,310
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco - 0.4% Children's Trust Fund, Settlement Rev.,
5.375s, 2033 $725 $647,875
- -----------------------------------------------------------------------------------------------------------------------------
Toll Roads - 1.0% West Virginia Parkways, Economic
Development & Tourism Authority, Rev.,
FGIC, 5.25s, 2019 $1,335 $1,500,807
- -----------------------------------------------------------------------------------------------------------------------------
Transportation - Special West Virginia Parkways, Economic
Tax - 4.7% Development & Tourism Authority, Rev.,
FGIC, 0s, 2005(+++) $2,250 $2,203,538
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Parkways, Economic
Development & Tourism Authority, Rev.,
FGIC, 0s, 2007(+++) 2,000 1,855,000
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Parkways, Economic
Development & Tourism Authority, Rev.,
FGIC, 0s, 2008(+++) 610 542,680
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Parkways, Economic
Development & Tourism Authority, Rev.,
FGIC, 5.25s, 2014 1,020 1,152,620
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Parkways, Economic
Development & Tourism Authority, Rev.,
FGIC, 5.25s, 2018 1,405 1,584,475
- -----------------------------------------------------------------------------------------------------------------------------
$7,338,313
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Colleges - 12.6% Commonwealth of Puerto Rico, Industrial
Tourist Education (University Plaza),
MBIA, 5s, 2021 $1,270 $1,324,432
- -----------------------------------------------------------------------------------------------------------------------------
Fairmont State College, West Virginia,
College Rev., FGIC, 5.25s, 2022 5,130 5,413,791
- -----------------------------------------------------------------------------------------------------------------------------
Fairmont State College, West Virginia,
College Rev., FGIC, 5.375s, 2027 1,500 1,576,770
- -----------------------------------------------------------------------------------------------------------------------------
Fairmont State College, West Virginia,
College Rev., FGIC, 5s, 2032 750 754,155
- -----------------------------------------------------------------------------------------------------------------------------
State of West Virginia, College Rev.,
5.125s, 2022 1,500 1,553,550
- -----------------------------------------------------------------------------------------------------------------------------
State of West Virginia, Department of
Higher Education (Marshall University),
FGIC, 5.25s, 2019 1,680 1,794,694
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Higher Education Policy
Commission, Refunding State Collateral
Facilities, "A", MBIA, 5s, 2010 1,345 1,506,037
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia University, University
Systems Rev. (Marshall University), FGIC,
6s, 2020 2,705 3,102,825
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia University, University
Systems Rev. (West Virginia University),
MBIA, 5.5s, 2013 425 487,445
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia University, University
Systems Rev. (West Virginia University),
MBIA, 5.5s, 2020 1,700 1,950,189
- -----------------------------------------------------------------------------------------------------------------------------
$19,463,888
- -----------------------------------------------------------------------------------------------------------------------------
Universities - West Liberty State College, Capital
Dormatories - 1.7% Improvement, 6s, 2028 $500 $514,475
- -----------------------------------------------------------------------------------------------------------------------------
West Virgina University, Dormitory Rev.,
AMBAC, 5s, 2022 2,000 2,060,800
- -----------------------------------------------------------------------------------------------------------------------------
$2,575,275
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Investor Marshall County, WV, Pollution Control
Owned - 4.6% Rev. (Ohio Power Co.), MBIA,
6.85s, 2022 $3,150 $3,190,603
- -----------------------------------------------------------------------------------------------------------------------------
Mason County, WV, Pollution Control Rev.
(Appalachian Power Co.), 5.5s, 2022 750 755,850
- -----------------------------------------------------------------------------------------------------------------------------
Putnam County, WV, Pollution Control Rev.
(Appalachian Power Co.), MBIA, 6.6s, 2019 3,200 3,240,576
- -----------------------------------------------------------------------------------------------------------------------------
$7,187,029
- -----------------------------------------------------------------------------------------------------------------------------
Water and Sewer Utility Revenue - Clarksburg, WV, Water Rev., FGIC,
10.0% 5.25s, 2019 $2,725 $2,957,524
- -----------------------------------------------------------------------------------------------------------------------------
Fairmont, WV, Waterworks Rev., AMBAC,
5.25s, 2022 200 219,396
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Water Development Authority,
Infrastructure Rev., FSA, 5.5s, 2018 390 431,668
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Water Development Authority,
Infrastructure Rev., FSA, 5.5s, 2019 895 986,567
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Water Development Authority,
Rev., 7.1s, 2009(+++) 150 172,748
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Water Development Authority,
Rev., 5.25s, 2023 795 843,400
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Water Development Authority,
Rev., 5s, 2026 2,100 2,125,851
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Water Development Authority,
Rev., AMBAC, 6.25s, 2020 1,000 1,140,740
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Water Development Authority,
Rev., FSA, 5s, 2018 1,270 1,270,927
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Water Development Authority,
Rev., FSA, 6.2s, 2024 3,000 3,219,000
- -----------------------------------------------------------------------------------------------------------------------------
West Virginia Water Development Authority,
Rev., FSA, 5.25s, 2035 2,000 2,052,740
- -----------------------------------------------------------------------------------------------------------------------------
$15,420,561
- -----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Identified Cost, $138,706,850) $150,280,898
- -----------------------------------------------------------------------------------------------------------------------------
Floating Rate Demand Notes - 1.7%
- -----------------------------------------------------------------------------------------------------------------------------
Allegheny County, PA, Hospital Development
Authority Rev. Aces Presbyterian Hospital,
due 10/02/03 $100 $100,000
- -----------------------------------------------------------------------------------------------------------------------------
East Baton Rouge Parish, LA, Pollution
Control Rev. (Exxon Mobile Corp.),
due 10/01/03 200 200,000
- -----------------------------------------------------------------------------------------------------------------------------
Jackson County, MS, Pollution Control Rev.
(Chevron USA, Inc.), due 10/01/03 300 300,000
- -----------------------------------------------------------------------------------------------------------------------------
Lincoln County, WY, Pollution Control Rev.
(Exxon Mobile Corp.), due 10/01/03 100 100,000
- -----------------------------------------------------------------------------------------------------------------------------
MSR Public Power Agency, CA, Electrical,
Power & Light Rev., due 10/02/03 500 500,000
- -----------------------------------------------------------------------------------------------------------------------------
New York City Municipal Water Finance
Authority, Water & Sewer System Rev., due
10/01/03 100 100,000
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, due 10/01/03 100 100,000
- -----------------------------------------------------------------------------------------------------------------------------
Pinellas County, FL, Health Facility
Authority, Pooled Hospital Loan Program,
due 10/01/03 400 400,000
- -----------------------------------------------------------------------------------------------------------------------------
Sevier County, TN, Public Building
Authority, due 10/02/03 800 800,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Floating Rate Demand Notes, at Identified Cost $2,600,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $141,306,850) $152,880,898
- -----------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 1.3% 1,986,457
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - 100.0% $154,867,355
- -----------------------------------------------------------------------------------------------------------------------------
See portfolio footnotes and notes to financial statements.
Portfolio Footnotes:
* Non-income producing security - in default. (++)Inverse floating rate security.
(+++) Refunded bond.
+ Restricted security.
# SEC Rule 144A restriction.
The following abbreviations for insurers and inverse floaters are used in the
Portfolio of Investments and are defined as such:
Insurers: Inverse Floaters:
AMBAC -- AMBAC Indemnity Corp. INFLOS -- Inverse Floating Security
ASST GTY -- Asset Guaranty Insurance Co. RIBS -- Residual Interest Bonds
CONNIE LEE -- Connie Lee Insurance Co. RITES -- Residual Interest Tax-Exempt Security
FGIC -- Financial Guaranty Insurance Co. ROLS -- Residual Options Longs
FHA -- Federal Housing Administration
FNMA -- Federal National Mortgage Assn.
FSA -- Financial Security Assurance, Inc.
GNMA -- Government National Mortgage Assn.
MBIA -- Municipal Bond Investors Corp.
XLCA -- XL Capital Insurance Co.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES (unaudited)
- ----------------------------------------------------------------------------------------------------------------------------
This is your fund's balance sheet. It shows the value of what the fund owns, how much it owes, and its resulting net assets.
MISSISSIPPI NEW YORK NORTH CAROLINA PENNSYLVANIA
At 9/30/03 FUND FUND FUND FUND
ASSETS
Investments -
Identified cost $95,581,973 $176,230,840 $363,885,004 $115,220,533
- ----------------------------------------------------------------------------------------------------------------------------
Unrealized appreciation 6,498,799 17,279,620 33,067,539 6,784,311
- ----------------------------------------------------------------------------------------------------------------------------
Total, at value $102,080,772 $193,510,460 $396,952,543 $122,004,844
- ----------------------------------------------------------------------------------------------------------------------------
Cash 76,986 10,491 23,231 48,564
- ----------------------------------------------------------------------------------------------------------------------------
Receivable for investments sold 353,065 3,332,108 1,465,462 130,000
- ----------------------------------------------------------------------------------------------------------------------------
Receivable for fund shares sold 91,617 288,460 392,238 289,371
- ----------------------------------------------------------------------------------------------------------------------------
Interest receivable 1,550,637 2,947,503 5,817,226 1,744,482
- ----------------------------------------------------------------------------------------------------------------------------
Receivable from investment
adviser -- -- -- 83,415
- ----------------------------------------------------------------------------------------------------------------------------
Other assets 504 968 2,824 264
- ----------------------------------------------------------------------------------------------------------------------------
Total assets $104,153,581 $200,089,990 $404,653,524 $124,300,940
- ----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Distributions payable $386,998 $686,576 $1,389,926 $372,587
- ----------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased 1,056,640 2,218,847 -- 294,027
- ----------------------------------------------------------------------------------------------------------------------------
Interest payable on swaps 2,716 13,807 7,064 6,682
- ----------------------------------------------------------------------------------------------------------------------------
Payable for fund shares
reacquired 230,000 495,360 591,053 54,772
- ----------------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on
interest rate swaps 27,170 52,141 83,268 25,333
- ----------------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on rate
lock swaps 80,604 239,659 1,047,685 113,569
- ----------------------------------------------------------------------------------------------------------------------------
Payable to affiliates -
Management fee 971 1,862 3,806 1,166
- ----------------------------------------------------------------------------------------------------------------------------
Shareholder servicing agent fee 305 585 1,197 308
- ----------------------------------------------------------------------------------------------------------------------------
Distribution and service fee 9,502 2,573 5,414 48,706
- ----------------------------------------------------------------------------------------------------------------------------
Accrued expenses and other
liabilities 54,707 76,655 110,528 58,510
- ----------------------------------------------------------------------------------------------------------------------------
Total liabilities $1,849,613 $3,788,065 $3,239,941 $975,660
- ----------------------------------------------------------------------------------------------------------------------------
Net assets $102,303,968 $196,301,925 $401,413,583 $123,325,280
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF
Paid-in capital $98,227,297 $180,370,004 $370,044,708 $119,298,388
- ----------------------------------------------------------------------------------------------------------------------------
Unrealized appreciation on
investments 6,391,024 16,987,820 31,936,586 6,645,409
- ----------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed net
realized gain (loss) on
investments (2,146,779) (430,040) 627,685 (2,194,647)
- ----------------------------------------------------------------------------------------------------------------------------
Accumulated distributions in
excess of net investment income (167,574) (625,859) (1,195,396) (423,870)
- ----------------------------------------------------------------------------------------------------------------------------
Total $102,303,968 $196,301,925 $401,413,583 $123,325,280
- ----------------------------------------------------------------------------------------------------------------------------
Statement of Assets and Liabilities (unaudited) - continued
MISSISSIPPI NEW YORK NORTH CAROLINA PENNSYLVANIA
FUND FUND FUND FUND
Shares of beneficial interest outstanding
Class A 8,822,982 11,747,298 25,247,730 7,194,310
- ----------------------------------------------------------------------------------------------------------------------------
Class B 1,359,614 3,775,712 4,578,168 4,833,462
- ----------------------------------------------------------------------------------------------------------------------------
Class C -- 1,570,260 2,863,594 --
- ----------------------------------------------------------------------------------------------------------------------------
Total shares of beneficial
interest outstanding 10,182,596 17,093,270 32,689,492 12,027,772
- ----------------------------------------------------------------------------------------------------------------------------
Net assets
Class A $88,630,581 $135,014,600 $310,111,390 $73,692,184
- ----------------------------------------------------------------------------------------------------------------------------
Class B 13,673,387 43,266,632 56,166,298 49,633,096
- ----------------------------------------------------------------------------------------------------------------------------
Class C -- 18,020,693 35,135,895 --
- ----------------------------------------------------------------------------------------------------------------------------
Total net assets $102,303,968 $196,301,925 $401,413,583 $123,325,280
- ----------------------------------------------------------------------------------------------------------------------------
Class A shares
Net asset value per share
(net assets/shares of beneficial
interest outstanding) $10.05 $11.49 $12.28 $10.24
- ----------------------------------------------------------------------------------------------------------------------------
Offering price per share
(100/95.25 of net asset value per
share) $10.55 $12.06 $12.89 $10.75
- ----------------------------------------------------------------------------------------------------------------------------
Class B shares
Net asset value and offering
price per share
(net assets/shares of beneficial
interest outstanding) $10.06 $11.46 $12.27 $10.27
- ----------------------------------------------------------------------------------------------------------------------------
Class C shares
Net asset value and offering
price per share
(net assets/shares of beneficial
interest outstanding) $-- $11.48 $12.27 $--
- ----------------------------------------------------------------------------------------------------------------------------
On sales of $100,000 or more, the offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed
on redemptions of Class A, Class B, and Class C shares.
See notes to financial statements.
Statement of Assets and Liabilities (unaudited) - continued
SOUTH CAROLINA TENNESSEE VIRGINIA WEST VIRGINIA
At 9/30/03 FUND FUND FUND FUND
ASSETS
Investments -
Identified cost $156,548,092 $135,483,703 $316,368,242 $141,306,850
- ----------------------------------------------------------------------------------------------------------------------------
Unrealized appreciation 14,800,717 10,950,821 25,853,325 11,574,048
- ----------------------------------------------------------------------------------------------------------------------------
Total, at value $171,348,809 $146,434,524 $342,221,567 $152,880,898
- ----------------------------------------------------------------------------------------------------------------------------
Cash 77,720 44,219 95,153 19,792
- ----------------------------------------------------------------------------------------------------------------------------
Receivable for investments sold 428,726 -- 230,000 150,000
- ----------------------------------------------------------------------------------------------------------------------------
Receivable for fund shares sold -- 70,429 146,800 162,322
- ----------------------------------------------------------------------------------------------------------------------------
Interest receivable 2,409,044 1,986,208 5,171,593 2,503,178
- ----------------------------------------------------------------------------------------------------------------------------
Other assets 1,168 836 2,694 960
- ----------------------------------------------------------------------------------------------------------------------------
Total assets $174,265,467 $148,536,216 $347,867,807 $155,717,150
- ----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Distributions payable $628,156 $492,982 $1,275,074 $534,220
- ----------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased -- -- 1,943,908 --
- ----------------------------------------------------------------------------------------------------------------------------
Interest payable on swaps 5,438 3,092 17,488 12,633
- ----------------------------------------------------------------------------------------------------------------------------
Payable for fund shares
reacquired 116,622 369,614 513,771 119,760
- ----------------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on
interest rate swaps 51,567 12,319 66,966 47,645
- ----------------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on rate
lock swaps 267,337 78,871 214,301 61,492
- ----------------------------------------------------------------------------------------------------------------------------
Payable to affiliates -
Management fee 1,638 1,400 3,258 1,465
- ----------------------------------------------------------------------------------------------------------------------------
Shareholder servicing agent fee 515 440 1,024 460
- ----------------------------------------------------------------------------------------------------------------------------
Distribution and service fee 2,325 1,857 3,931 1,780
- ----------------------------------------------------------------------------------------------------------------------------
Accrued expenses and other
liabilities 72,814 62,716 109,860 70,340
- ----------------------------------------------------------------------------------------------------------------------------
Total liabilities $1,146,412 $1,023,291 $4,149,581 $849,795
- ----------------------------------------------------------------------------------------------------------------------------
Net assets $173,119,055 $147,512,925 $343,718,226 $154,867,355
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF
Paid-in capital $160,593,911 $137,209,751 $323,116,751 $146,270,484
- ----------------------------------------------------------------------------------------------------------------------------
Unrealized appreciation on
investments 14,481,812 10,859,631 25,572,058 11,464,911
- ----------------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on
investments (1,904,756) (124,030) (4,047,889) (2,360,914)
- ----------------------------------------------------------------------------------------------------------------------------
Accumulated distributions in
excess of net investment income (51,912) (432,427) (922,694) (507,126)
- ----------------------------------------------------------------------------------------------------------------------------
Total $173,119,055 $147,512,925 $343,718,226 $154,867,355
- ----------------------------------------------------------------------------------------------------------------------------
Statement of Assets and Liabilities (unaudited) - continued
SOUTH CAROLINA TENNESSEE VIRGINIA WEST VIRGINIA
FUND FUND FUND FUND
Shares of beneficial interest outstanding
Class A 10,659,787 11,109,261 26,162,001 11,613,772
- ----------------------------------------------------------------------------------------------------------------------------
Class B 3,101,077 2,363,250 2,132,674 1,518,959
- ----------------------------------------------------------------------------------------------------------------------------
Class C -- -- 1,144,878 --
- ----------------------------------------------------------------------------------------------------------------------------
Total shares of beneficial
interest outstanding 13,760,864 13,472,511 29,439,553 13,132,731
- ----------------------------------------------------------------------------------------------------------------------------
Net assets
Class A $134,125,845 $121,651,475 $305,470,801 $136,962,811
- ----------------------------------------------------------------------------------------------------------------------------
Class B 38,993,210 25,861,450 24,882,652 17,904,544
- ----------------------------------------------------------------------------------------------------------------------------
Class C -- -- 13,364,773 --
- ----------------------------------------------------------------------------------------------------------------------------
Total net assets $173,119,055 $147,512,925 $343,718,226 $154,867,355
- ----------------------------------------------------------------------------------------------------------------------------
Class A shares
Net asset value per share
(net assets/shares of beneficial
interest outstanding) $12.58 $10.95 $11.68 $11.79
- ----------------------------------------------------------------------------------------------------------------------------
Offering price per share
(100/95.25 of net asset value per
share) $13.21 $11.50 $12.26 $12.38
- ----------------------------------------------------------------------------------------------------------------------------
Class B shares
Net asset value and offering
price per share
(net assets/shares of beneficial
interest outstanding) $12.57 $10.94 $11.67 $11.79
- ----------------------------------------------------------------------------------------------------------------------------
Class C shares
Net asset value and offering
price per share
(net assets/shares of beneficial
interest outstanding) $-- $-- $11.67 $--
- ----------------------------------------------------------------------------------------------------------------------------
On sales of $100,000 or more, the offering price of Class A shares is reduced. A contingent deferred sales charge may be
imposed on redemptions of Class A, Class B, and Class C shares.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS STATEMENT OF OPERATIONS (unaudited)
- ----------------------------------------------------------------------------------------------------------------------------
This is a summary of the investment income your fund earned as well as gains and (losses) for the period. Fund expenses are
spelled out.
MISSISSIPPI NEW YORK NORTH CAROLINA PENNSYLVANIA
FUND FUND FUND FUND
For six months ended 9/30/03
NET INVESTMENT INCOME
Interest income $2,647,353 $5,093,759 $10,644,466 $2,832,244
- ----------------------------------------------------------------------------------------------------------------------------
Expenses -
Management fee $282,468 $536,554 1,118,681 $332,641
- ----------------------------------------------------------------------------------------------------------------------------
Trustees' compensation 2,084 3,293 6,117 3,121
- ----------------------------------------------------------------------------------------------------------------------------
Shareholder servicing agent fee 56,278 106,914 222,845 67,167
- ----------------------------------------------------------------------------------------------------------------------------
Distribution and service fee (Class A) -- 168,861 548,174 35,790
- ----------------------------------------------------------------------------------------------------------------------------
Distribution and service fee (Class B) 60,284 211,971 289,689 230,244
- ----------------------------------------------------------------------------------------------------------------------------
Distribution and service fee (Class C) -- 84,529 169,959 --
- ----------------------------------------------------------------------------------------------------------------------------
Administrative fee 5,636 10,690 22,411 6,751
- ----------------------------------------------------------------------------------------------------------------------------
Custodian fee 23,408 43,380 89,389 28,182
- ----------------------------------------------------------------------------------------------------------------------------
Printing 5,238 8,659 15,152 6,580
- ----------------------------------------------------------------------------------------------------------------------------
Postage 698 1,868 3,059 1,234
- ----------------------------------------------------------------------------------------------------------------------------
Auditing fees 16,686 16,686 16,686 16,680
- ----------------------------------------------------------------------------------------------------------------------------
Legal fees 3,280 1,002 3,160 3,900
- ----------------------------------------------------------------------------------------------------------------------------
Miscellaneous 38,887 84,458 91,437 39,175
- ----------------------------------------------------------------------------------------------------------------------------
Total expenses $494,947 $1,278,865 $2,596,759 $771,465
- ----------------------------------------------------------------------------------------------------------------------------
Fees paid indirectly (806) (1,279) (2,397) (1,042)
- ----------------------------------------------------------------------------------------------------------------------------
Reduction of expenses by investment
adviser (103,403) (196,373) (409,629) (172,961)
- ----------------------------------------------------------------------------------------------------------------------------
Net expenses $390,738 $1,081,213 $2,184,733 $597,462
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income $2,256,615 $4,012,546 $8,459,733 $2,234,782
- ----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) (identified cost basis) -
Investment transactions $(79,751) $(220,709) $65,535 $(93,872)
- ----------------------------------------------------------------------------------------------------------------------------
Swap transactions (131,786) (62,597) (152,021) (339,916)
- ----------------------------------------------------------------------------------------------------------------------------
Net realized loss on investments $(211,537) $(283,306) $(86,486) $(433,788)
- ----------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) -
Investments $489,069 $528,772 $1,739,956 $794,857
- ----------------------------------------------------------------------------------------------------------------------------
Swap transactions 29,088 (97,303) (505,816) 69,451
- ----------------------------------------------------------------------------------------------------------------------------
Net unrealized gain on investments $518,157 $431,469 $1,234,140 $864,308
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain on
investments $306,620 $148,163 $1,147,654 $430,520
- ----------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
operations $2,563,235 $4,160,709 $9,607,387 $2,665,302
- ----------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
Statement of Operations (unaudited) - continued
SOUTH CAROLINA TENNESSEE VIRGINIA WEST VIRGINIA
FUND FUND FUND FUND
For six months ended 9/30/03
NET INVESTMENT INCOME
Interest income $4,525,009 $3,675,320 $9,522,689 $4,187,026
- ----------------------------------------------------------------------------------------------------------------------------
Expenses -
Management fee $465,890 $401,966 $954,998 $432,449
- ----------------------------------------------------------------------------------------------------------------------------
Trustees' compensation 3,526 3,248 6,085 3,520
- ----------------------------------------------------------------------------------------------------------------------------
Shareholder servicing agent fee 92,821 80,088 190,246 86,140
- ----------------------------------------------------------------------------------------------------------------------------
Distribution and service fee (Class A) 228,469 208,181 537,253 240,893
- ----------------------------------------------------------------------------------------------------------------------------
Distribution and service fee (Class B) 191,064 133,270 126,733 94,829
- ----------------------------------------------------------------------------------------------------------------------------
Distribution and service fee (Class C) -- -- 67,767 --
- ----------------------------------------------------------------------------------------------------------------------------
Administrative fee 9,184 7,968 19,091 8,712
- ----------------------------------------------------------------------------------------------------------------------------
Custodian fee 39,225 31,839 77,555 34,177
- ----------------------------------------------------------------------------------------------------------------------------
Printing 7,617 4,409 12,170 6,028
- ----------------------------------------------------------------------------------------------------------------------------
Postage 1,351 860 2,556 1,071
- ----------------------------------------------------------------------------------------------------------------------------
Auditing fees 18,166 17,486 16,881 15,586
- ----------------------------------------------------------------------------------------------------------------------------
Legal fees 4,092 4,692 2,229 3,544
- ----------------------------------------------------------------------------------------------------------------------------
Miscellaneous 43,822 38,086 82,515 36,679
- ----------------------------------------------------------------------------------------------------------------------------
Total expenses $1,105,227 $932,093 2,096,079 $963,628
- ----------------------------------------------------------------------------------------------------------------------------
Fees paid indirectly (1,200) (484) (667) (380)
- ----------------------------------------------------------------------------------------------------------------------------
Reduction of expenses by investment
adviser (170,550) (147,141) (349,671) (158,366)
- ----------------------------------------------------------------------------------------------------------------------------
Net expenses $933,477 $784,468 $1,745,741 $804,882
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income $3,591,532 $2,890,852 $7,776,948 $3,382,144
- ----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) (identified cost basis) -
Investment transactions $177,210 $(81,442) $(99,179) $248,817
- ----------------------------------------------------------------------------------------------------------------------------
Swap transactions (60,808) -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on
investments $116,402 $(81,442) $(99,179) $248,817
- ----------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) -
Investments $844,107 $842,611 $2,156,845 $129,038
- ----------------------------------------------------------------------------------------------------------------------------
Swap transactions (152,381) (51,472) (134,798) (24,768)
- ----------------------------------------------------------------------------------------------------------------------------
Net unrealized gain on investments $691,726 $791,139 $2,022,047 $104,270
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain on
investments $808,128 $709,697 $1,922,868 $353,087
- ----------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
operations $4,399,660 $3,600,549 $9,699,816 $3,735,231
- ----------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS STATEMENT OF CHANGES IN NET ASSETS (unaudited)
- ----------------------------------------------------------------------------------------------------------------------------
This Statement gives you a summary of income and gains (losses) separated by share class.
MISSISSIPPI NEW YORK NORTH CAROLINA PENNSYLVANIA
FUND FUND FUND FUND
For the six months ended 9/30/03
OPERATIONS
Net investment income $2,256,615 $4,012,546 $8,459,733 $2,234,782
- ----------------------------------------------------------------------------------------------------------------------------
Net realized loss on investments (211,537) (283,306) (86,486) (433,788)
- ----------------------------------------------------------------------------------------------------------------------------
Net unrealized gain on investments 518,157 431,469 1,234,140 864,308
- ----------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
operations $2,563,235 $4,160,709 $9,607,387 $2,665,302
- ----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income
Class A $(2,078,993) $(3,039,818) $(6,836,208) $(1,529,074)
- ----------------------------------------------------------------------------------------------------------------------------
Class B (258,349) (793,550) (1,074,531) (837,026)
- ----------------------------------------------------------------------------------------------------------------------------
Class C -- (315,634) (630,015) --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions declared to
shareholders $(2,337,342) $(4,149,002) $(8,540,754) $(2,366,100)
- ----------------------------------------------------------------------------------------------------------------------------
FUND SHARE (PRINCIPAL) TRANSACTIONS
Net proceeds from sale of shares $6,955,531 $26,551,060 $22,988,529 $19,270,189
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value of shares issued
to shareholders in reinvestment
of distributions 1,158,776 2,693,925 5,556,180 1,431,657
- ----------------------------------------------------------------------------------------------------------------------------
Cost of shares reacquired (6,659,795) (20,670,159) (35,837,094) (13,321,405)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets from fund share
transactions $1,454,512 $8,574,826 $(7,292,385) $7,380,441
- ----------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net
assets $1,680,405 $8,586,533 $(6,225,752) $7,679,643
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of period 100,623,563 187,715,392 407,639,335 115,645,637
- ----------------------------------------------------------------------------------------------------------------------------
At end of period $102,303,968 $196,301,925 $401,413,583 $123,325,280
- ----------------------------------------------------------------------------------------------------------------------------
Accumulated distributions in
excess of net investment income
included in net assets at end of
period $(167,574) $(625,859) $(1,195,396) $(423,870)
- ----------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
Statement of Changes in Net Assets (unaudited) - continued
SOUTH CAROLINA TENNESSEE VIRGINIA WEST VIRGINIA
FUND FUND FUND FUND
For six months ended 9/30/03
OPERATIONS
Net investment income $3,591,532 $2,890,852 $7,776,948 $3,382,144
- ----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on
investments 116,402 (81,442) (99,179) 248,817
- ----------------------------------------------------------------------------------------------------------------------------
Net unrealized gain on investments 691,726 791,139 2,022,047 104,270
- ----------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
operations $4,399,660 $3,600,549 $9,699,816 $3,735,231
- ----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income
Class A $(3,014,603) $(2,511,522) $(6,992,116) $(3,050,846)
- ----------------------------------------------------------------------------------------------------------------------------
Class B (757,190) (475,792) (494,336) (358,476)
- ----------------------------------------------------------------------------------------------------------------------------
Class C -- -- (264,102) --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions declared to
shareholders $(3,771,793) $(2,987,314) $(7,750,554) $(3,409,322)
- ----------------------------------------------------------------------------------------------------------------------------
FUND SHARE (PRINCIPAL) TRANSACTIONS
Net proceeds from sale of shares $20,011,382 $10,613,690 $11,341,492 $7,046,192
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value of shares issued
to shareholders in reinvestment
of distributions 2,333,118 1,639,941 4,318,097 2,235,257
- ----------------------------------------------------------------------------------------------------------------------------
Cost of shares reacquired (17,300,422) (8,718,431) (20,282,534) (13,746,601)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets from fund share
transactions $5,044,078 $3,535,200 $(4,622,945) $(4,465,152)
- ----------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net
assets $5,671,945 $4,148,435 $(2,673,683) $(4,139,243)
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of period 167,447,110 143,364,490 346,391,909 159,006,598
- ----------------------------------------------------------------------------------------------------------------------------
At end of period $173,119,055 $147,512,925 $343,718,226 $154,867,355
- ----------------------------------------------------------------------------------------------------------------------------
Accumulated distributions in
excess of net investment
income included in net assets at
end of period $(51,912) $(432,427) $(922,694) $(507,126)
- ----------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS STATEMENT OF CHANGES IN NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
This Statement gives you a summary of income and gains (losses) separated by share class.
MISSISSIPPI NEW YORK NORTH CAROLINA PENNSYLVANIA
FUND FUND FUND FUND
For year ended 3/31/03
OPERATIONS
Net investment income $4,340,327 $7,663,268 $17,561,632 $3,987,503
- ----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on
investments 211,423 284,626 2,016,429 (149,368)
- ----------------------------------------------------------------------------------------------------------------------------
Net unrealized gain on investments 3,809,412 8,095,618 17,099,996 4,464,372
- ----------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
operations $8,361,162 $16,043,512 $36,678,057 $8,302,507
- ----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income
Class A $(4,058,929) $(6,022,805) $(14,502,430) $(2,791,122)
- ----------------------------------------------------------------------------------------------------------------------------
Class B (469,269) (1,402,028) (2,353,128) (1,467,283)
- ----------------------------------------------------------------------------------------------------------------------------
Class C -- (476,288) (1,117,181) --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions declared to
shareholders $(4,528,198) $(7,901,121) $(17,972,739) $(4,258,405)
- ----------------------------------------------------------------------------------------------------------------------------
FUND SHARE (PRINCIPAL) TRANSACTIONS
Net proceeds from sale of shares $17,633,153 $43,561,956 $39,282,954 $50,723,478
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value of shares issued
to shareholders in reinvestment
of distributions 2,287,961 5,090,304 11,621,792 2,485,165
- ----------------------------------------------------------------------------------------------------------------------------
Cost of shares reacquired (9,311,035) (30,877,198) (46,495,365) (17,554,351)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
fund share transactions $10,610,079 $17,775,062 $4,409,381 $35,654,292
- ----------------------------------------------------------------------------------------------------------------------------
Total increase in net assets $14,443,043 $25,917,453 $23,114,699 $39,698,394
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of period 86,180,520 161,797,939 384,524,636 75,947,243
- ----------------------------------------------------------------------------------------------------------------------------
At end of period $100,623,563 $187,715,392 $407,639,335 $115,645,637
- ----------------------------------------------------------------------------------------------------------------------------
Accumulated distributions in
excess of net investment income
included in net assets at end of
period $(86,847) $(489,403) $(1,114,375) $(292,552)
- ----------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
Statement of Changes in Net Assets - continued
SOUTH CAROLINA TENNESSEE VIRGINIA WEST VIRGINIA
FUND FUND FUND FUND
For year ended 3/31/03
OPERATIONS
Net investment income $7,418,489 $5,925,598 $15,689,806 $7,005,287
- ----------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments 714,730 359,898 239,753 361,090
- ----------------------------------------------------------------------------------------------------------------------------
Net unrealized gain on investments 6,460,467 5,835,725 13,828,605 5,329,668
- ----------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
operations $14,593,686 $12,121,221 $29,758,164 $12,696,045
- ----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income
Class A $(6,104,336) $(5,116,263) $(14,108,313) $(6,342,674)
- ----------------------------------------------------------------------------------------------------------------------------
Class B (1,485,789) (1,081,818) (1,023,751) (762,988)
- ----------------------------------------------------------------------------------------------------------------------------
Class C -- -- (459,134) --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions declared to
shareholders $(7,590,125) $(6,198,081) $(15,591,198) $(7,105,662)
- ----------------------------------------------------------------------------------------------------------------------------
FUND SHARE (PRINCIPAL) TRANSACTIONS
Net proceeds from sale of shares $26,803,450 $27,676,408 $27,785,098 $22,629,845
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value of shares issued
to shareholders in reinvestment
of distributions 4,672,734 3,548,392 8,405,139 4,569,399
- ----------------------------------------------------------------------------------------------------------------------------
Cost of shares reacquired (26,609,520) (21,260,850) (40,642,264) (11,890,910)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets from fund share
transactions $4,866,664 $9,963,950 $(4,452,027) $15,308,334
- ----------------------------------------------------------------------------------------------------------------------------
Total increase in net assets $11,870,225 $15,887,090 $9,714,939 $20,898,717
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of period 155,576,885 127,477,400 336,676,970 138,107,881
- ----------------------------------------------------------------------------------------------------------------------------
At end of period $167,447,110 $143,364,490 $346,391,909 $159,006,598
- ----------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net
assets at end of period $128,349 $(335,965) $(949,088) $(479,948)
- ----------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) MISSISSIPPI MUNICIPAL BOND FUND
- ----------------------------------------------------------------------------------------------------------------------------
The Financial Highlights table is intended to help you understand the fund's financial performance for the semiannual period
and the past 5 fiscal years. Certain information reflects financial results for a single fund share. The total returns in the
table represent the rate by which an investor would have earned (or lost) on an investment in the fund (assuming reinvestment
of all distributions).
Six months Year ended 3/31
ended -------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS A (unaudited)
Net asset value, beginning of
period $10.02 $9.61 $9.78 $9.37 $9.93 $9.88
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.23 $0.46 $0.49 $0.50 $0.50 $0.49
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 0.03 0.44 (0.16) 0.41 (0.56) 0.06
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.26 $0.90 $0.33 $0.91 $(0.06) $0.55
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.23) $(0.49) $(0.50) $(0.50) $(0.50) $(0.50)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.05 $10.02 $9.61 $9.78 $9.37 $9.93
- ------------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 2.66++ 9.48 3.45 10.02 (0.58) 5.62
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 0.64+ 0.64 0.65 0.65 0.66 0.73
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.49+ 4.70 5.05 5.28 5.22 4.94
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 5 22 6 19 18 6
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period
(000 Omitted) $88,631 $87,724 $76,004 $67,458 $66,173 $66,869
- ------------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.22 $0.44 $0.47 $0.48 $0.48 $0.48
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 0.84+ 0.84 0.85 0.85 0.84 0.85
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.29+ 4.50 4.85 5.08 5.04 4.82
- ------------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by less than 0.01%. Per share, ratios, and supplemental data
for periods prior to April 1, 2001, have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
(+) Total returns for Class A shares do not include the applicable sales charge. If the charge had been included, the
results would have been lower.
See notes to financial statements.
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) MISSISSIPPI MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS B (unaudited)
Net asset value, beginning of
period $10.04 $9.62 $9.79 $9.38 $9.94 $9.89
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.18 $0.38 $0.42 $0.43 $0.42 $0.41
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 0.03 0.44 (0.17) 0.41 (0.56) 0.06
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.21 $0.82 $0.25 $0.84 $(0.14) $0.47
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.19) $(0.40) $(0.42) $(0.43) $(0.42) $(0.42)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.06 $10.04 $9.62 $9.79 $9.38 $9.94
- ------------------------------------------------------------------------------------------------------------------------------
Total return (%) 2.11++ 8.67 2.62 9.17 (1.37) 4.80
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.52+ 1.47 1.45 1.43 1.46 1.51
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.60+ 3.86 4.23 4.50 4.41 4.16
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 5 22 6 19 18 6
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period
(000 Omitted) $13,673 $12,900 $10,177 $10,986 $10,786 $11,465
- ------------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.17 $0.36 $0.40 $0.41 $0.40 $0.40
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.72+ 1.67 1.65 1.63 1.64 1.63
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.40+ 3.66 4.03 4.30 4.23 4.04
- ------------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by less than 0.01%. Per share, ratios, and supplemental data
for periods prior to April 1, 2001, have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) NEW YORK MUNICIPAL BOND FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS A (unaudited)
Net asset value,
beginning of period $11.49 $10.94 $11.14 $10.58 $11.27 $11.26
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.25 $0.52 $0.53 $0.55 $0.55 $0.56
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 0.01 0.56 (0.18) 0.57 (0.69) 0.01
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.26 $1.08 $0.35 $1.12 $(0.14) $0.57
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.26) $(0.53) $(0.54) $(0.55) $(0.55) $(0.56)
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- (0.01) (0.01) -- (0.00)+++
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to shareholders $(0.26) $(0.53) $(0.55) $(0.56) $(0.55) $(0.56)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $11.49 $11.49 $10.94 $11.14 $10.58 $11.27
- ----------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 2.26++ 10.05 3.16 10.75 (1.06) 5.14
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 0.88+ 0.87 0.88 0.86 0.85 0.93
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.33+ 4.56 4.80 5.10 5.14 4.93
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 6 17 18 35 38 26
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $135,015 $132,843 $121,717 $125,917 $101,403 $116,767
- ----------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment
income(S)(S) $0.24 $0.49 $0.51 $0.52 $0.53 $0.55
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.08+ 1.07 1.08 1.06 1.03 1.05
- ----------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 4.13+ 4.36 4.60 4.90 4.96 4.81
- ----------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by less than 0.01%. Per share, ratios, and supplemental data
for periods prior to April 1, 2001, have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
(+) Total returns for Class A shares do not include the applicable sales charge. If the charge had been included, the
results would have been lower.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) NEW YORK MUNICIPAL BOND FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS B (unaudited)
Net asset value,
beginning of period $11.45 $10.93 $11.13 $10.58 $11.27 $11.26
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS(S)(S)
Net investment income(S) $0.20 $0.43 $0.45 $0.46 $0.47 $0.47
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 0.02 0.54 (0.19) 0.57 (0.69) 0.01
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.22 $0.97 $0.26 $1.03 $(0.22) $0.48
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.21) $(0.45) $(0.45) $(0.47) $(0.47) $(0.47)
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- (0.01) (0.01) -- (0.00)+++
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to shareholders $(0.21) $(0.45) $(0.46) $(0.48) $(0.47) $(0.47)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $11.46 $11.45 $10.93 $11.13 $10.58 $11.27
- ----------------------------------------------------------------------------------------------------------------------------
Total return (%) 1.97++ 8.96 2.39 9.94 (1.89) 4.46
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.62+ 1.62 1.63 1.61 1.60 1.68
- ----------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 3.55+ 3.80 4.05 4.33 4.38 4.18
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 6 17 18 35 38 26
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $43,267 $40,867 $29,903 $25,928 $20,224 $30,408
- ----------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.19 $0.41 $0.43 $0.44 $0.45 $0.46
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.82+ 1.82 1.83 1.81 1.78 1.80
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.35+ 3.60 3.85 4.13 4.20 4.06
- ----------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by less than 0.01%. Per share, ratios, and supplemental data
for periods prior to April 1, 2001, have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) NEW YORK MUNICIPAL BOND FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended -------------------------------- Period ended
9/03/03 2003 2002 3/31/01*
(unaudited)
CLASS C
Net asset value, beginning of period $11.47 $10.93 $11.13 $10.91
- -----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.21 $0.43 $0.45 $0.14
- -----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 0.01 0.56 (0.18) 0.23
- -----------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.22 $0.99 $0.27 $0.37
- -----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.21) $(0.45) $(0.46) $(0.14)
- -----------------------------------------------------------------------------------------------------------------------------
In excess of net investment income -- -- (0.01) (0.01)
- -----------------------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $(0.21) $(0.45) $(0.47) $(0.15)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.48 $11.47 $10.93 $11.13
- -----------------------------------------------------------------------------------------------------------------------------
Total return (%) 1.97++ 9.14 2.39 3.36++
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.63+ 1.62 1.63 1.61+
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.57+ 3.81 4.05 4.20+
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 6 17 18 35
- -----------------------------------------------------------------------------------------------------------------------------
Net assets at end of period (000 Omitted) $18,021 $14,005 $10,178 $8,578
- -----------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.20 $0.41 $0.43 $0.14
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.83+ 1.82 1.83 1.81+
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.37+ 3.61 3.85 4.00+
- -----------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by less than 0.01%. Per share, ratios, and supplemental data
for periods prior to April 1, 2001, have not been restated to reflect this change in presentation.
* For the period from the inception of Class C shares, December 11, 2000, through March 31, 2001.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) NORTH CAROLINA MUNICIPAL BOND FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended ---------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS A (unaudited)
Net asset value,
beginning of period $12.24 $11.68 $11.89 $11.35 $12.14 $12.15
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.26 $0.54 $0.57 $0.58 $0.59 $0.59
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 0.05 0.58 (0.21) 0.55 (0.80) (0.02)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.31 $1.12 $0.36 $1.13 $(0.21) $0.57
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment
income $(0.27) $(0.56) $(0.57) $(0.58) $(0.58) $(0.58)
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- (0.00)+++ (0.01) -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to shareholders $(0.27) $(0.56) $(0.57) $(0.59) $(0.58) $(0.58)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $12.28 $12.24 $11.68 $11.89 $11.35 $12.14
- ----------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 2.53++ 9.71 3.08 10.20 (1.67) 4.76
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 0.93+ 0.91 0.92 0.91 0.91 0.98
- ----------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 4.29+ 4.50 4.78 5.03 5.07 4.76
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 7 20 13 27 9 30
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $310,111 $316,687 $303,250 $308,447 $310,624 $364,576
- ----------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.25 $0.52 $0.54 $0.56 $0.57 $0.57
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.13+ 1.11 1.12 1.11 1.09 1.10
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.09+ 4.30 4.58 4.83 4.89 4.64
- ----------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by 0.02%. Per share, ratios, and supplemental data for periods
prior to April 1, 2001, have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
(+) Total returns for Class A shares do not include the applicable sales charge. If the charge had been included, the
results would have been lower.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) NORTH CAROLINA MUNICIPAL BOND FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended ---------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS B (unaudited)
Net asset value,
beginning of period $12.23 $11.67 $11.89 $11.35 $12.13 $12.15
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.22 $0.47 $0.48 $0.50 $0.51 $0.50
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 0.05 0.57 (0.20) 0.55 (0.78) (0.02)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.27 $1.04 $0.28 $1.05 $(0.27) $0.48
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment
income $(0.23) $(0.48) $(0.49) $(0.50) $(0.51) $(0.50)
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- (0.01) (0.01) -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to shareholders $(0.23) $(0.48) $(0.50) $(0.51) $(0.51) $(0.50)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $12.27 $12.23 $11.67 $11.89 $11.35 $12.13
- ----------------------------------------------------------------------------------------------------------------------------
Total return (%) 2.20++ 9.01 2.33 9.49 (2.22) 4.00
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.57+ 1.56 1.57 1.56 1.56 1.63
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.61+ 3.85 4.07 4.37 4.42 4.11
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 7 20 13 27 9 30
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $56,167 $59,116 $57,534 $60,449 $48,794 $52,033
- ----------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.21 $0.44 $0.46 $0.48 $0.49 $0.49
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.77+ 1.76 1.77 1.76 1.74 1.75
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.41+ 3.65 3.87 4.17 4.24 3.99
- ----------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by 0.02%. Per share, ratios, and supplemental data for periods
prior to April 1, 2001, have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) NORTH CAROLINA MUNICIPAL BOND FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS C (unaudited)
Net asset value,
beginning of period $12.23 $11.67 $11.89 $11.35 $12.13 $12.15
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment
income(S) $0.23 $0.46 $0.48 $0.50 $0.51 $0.50
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 0.04 0.58 (0.20) 0.55 (0.78) (0.02)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.27 $1.04 $0.28 $1.05 $(0.27) $0.48
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment
income $(0.23) $(0.48) $(0.49) $(0.50) $(0.51) $(0.50)
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- (0.01) (0.01) -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to
shareholders $(0.23) $(0.48) $(0.50) $(0.51) $(0.51) $(0.50)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $12.27 $12.23 $11.67 $11.89 $11.35 $12.13
- ----------------------------------------------------------------------------------------------------------------------------
Total return (%) 2.20++ 9.01 2.33 9.49 (2.22) 4.00
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.58+ 1.56 1.57 1.56 1.56 1.63
- ----------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 3.68+ 3.84 4.07 4.37 4.42 4.11
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 7 20 13 27 9 30
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $35,136 $31,836 $23,741 $19,099 $14,206 $14,084
- ----------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been incurred
by the fund, the net investment income per share and the ratios would have been:
Net investment
income(S)(S) $0.21 $0.44 $0.46 $0.48 $0.49 $0.49
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.78+ 1.76 1.77 1.76 1.74 1.75
- ----------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 3.48+ 3.64 3.87 4.17 4.24 3.99
- ----------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by 0.02%. Per share, ratios, and supplemental data for periods
prior to April 1, 2001, have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) PENNSLYVANIA MUNICIPAL BOND FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS A (unaudited)
Net asset value,
beginning of period $10.21 $9.73 $9.85 $9.36 $9.90 $9.82
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.21 $0.45 $0.48 $0.49 $0.50 $0.48
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 0.04 0.51 (0.11) 0.49 (0.55) 0.08
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.25 $0.96 $0.37 $0.98 $(0.05) $0.56
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.22) $(0.48) $(0.49) $(0.49) $(0.49) $(0.48)
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- (0.00)+++ -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to shareholders $(0.22) $(0.48) $(0.49) $(0.49) $(0.49) $(0.48)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $10.24 $10.21 $9.73 $9.85 $9.36 $9.90
- ----------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 2.35++ 10.12 3.85 10.85 (0.45) 5.85
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 0.65+ 0.48 0.36 0.37 0.38 0.45
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.02+ 4.47 4.90 5.17 5.19 4.85
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 14 19 19 10 48 8
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $73,692 $68,705 $47,661 $33,842 $25,494 $21,695
- ----------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually agreed under a temporary expense agreement to pay all of the fund's operating
expenses, exclusive of management, distribution and service fees in excess of 0.20% of average daily net assets. Prior
to January 1, 2003, subject to reimbursement by the fund, the investment adviser voluntarily agreed under a temporary
expense reimbursement agreement to pay all of the fund's operating expenses, exclusive of management, distribution and
service fees. In consideration, the fund paid the investment adviser a reimbursement fee not greater than 0.40% of
average daily net assets. The investment adviser had agreed to waive 0.40% of the reimbursement fee for an indefinite
period of time. In addition, the investment adviser contractually waived a portion of its fee for the periods indicated.
To the extent actual expenses were over these limitations and the waiver had not been in place, the net investment
income per share and the ratios would have been:
Net investment income(S)(S) $0.19 $0.40 $0.43 $0.44 $0.44 $0.43
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 0.94+ 0.96 0.89 0.93 0.91 0.93
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.73+ 3.99 4.37 4.61 4.66 4.37
- -----------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to in crease net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change cal culates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by 0.02%. Per share, ratios, and supplemental data for periods
prior to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
(+) Total returns for Class A shares do not include the applicable sales charge. If the charges had been included, the
results wou ld have been lower.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) PENNSLYVANIA MUNICIPAL BOND FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS B (unaudited)
Net asset value,
beginning of period $10.24 $9.75 $9.88 $9.38 $9.92 $9.84
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment
income(S) $0.16 $0.36 $0.40 $0.42 $0.42 $0.41
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 0.04 0.53 (0.12) 0.50 (0.55) 0.08
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.20 $0.89 $0.28 $0.92 $(0.13) $0.49
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.17) $(0.40) $(0.41) $(0.42) $(0.41) $(0.41)
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- (0.00)+++ -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to
shareholders $(0.17) $(0.40) $(0.41) $(0.42) $(0.41) $(0.41)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $10.27 $10.24 $9.75 $9.88 $9.38 $9.92
- ----------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 2.02++ 9.21 2.86 10.06 (1.25) 5.02
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.48+ 1.30 1.20 1.17 1.19 1.23
- ----------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 3.18+ 3.62 4.06 4.38 4.38 4.07
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 14 19 19 10 48 8
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $49,633 $46,941 $28,286 $20,827 $17,496 $23,983
- ----------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually agreed under a temporary expense agreement to pay all of the fund's operating
expenses, exclusive of management, distribution and service fees in excess of 0.20% of average daily net assets. Prior
to January 1, 2003, subject to reimbursement by the fund, the investment adviser voluntarily agreed under a temporary
expense reimbursement agreement to pay all of the fund's operating expenses, exclusive of management, distribution and
service fees. In consideration, the fund paid the investment adviser a reimbursement fee not greater than 0.40% of
average daily net assets. The investment adviser had agreed to waive 0.40% of the reimbursement fee for an indefinite
period of time. In addition, the investment adviser contractually waived a portion of its fee for the periods indicated.
To the extent actual expenses were over these limitations and the waiver had not been in place, the net investment
income per share and the ratios would have been:
Net investment
income(S)(S) $0.15 $0.32 $0.35 $0.36 $0.37 $0.33
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.77+ 1.78 1.73 1.73 1.72 1.71
- ----------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 2.89+ 3.14 3.53 3.82 3.85 3.59
- ----------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investme nt Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to in crease net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change cal culates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by 0.02%. Per share, ratios, and supplemental data for periods
prior to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) SOUTH CAROLINA MUNICIPAL BOND FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS A (unaudited)
Net asset value,
beginning of period $12.53 $12.00 $12.15 $11.58 $12.48 $12.52
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.27 $0.58 $0.60 $0.60 $0.58 $0.57
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 0.07 0.54 (0.16) 0.56 (0.86) (0.04)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.34 $1.12 $0.44 $1.16 $(0.28) $0.53
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment
income $(0.29) $(0.59) $(0.59) $(0.59) $(0.58) $(0.57)
- ----------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments -- -- -- -- (0.03) --
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- -- -- -- (0.00)+++
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net realized
gain on investments -- -- -- -- (0.01) --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to
shareholders $(0.29) $(0.59) $(0.59) $(0.59) $(0.62) $(0.57)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $12.58 $12.53 $12.00 $12.15 $11.58 $12.48
- ----------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 2.73++ 9.51 3.68 10.26 (2.27) 4.33
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 0.96+ 0.95 0.94 0.96 0.94 1.02
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.37+ 4.68 4.91 5.13 4.91 4.55
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 7 21 10 33 18 25
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $134,126 $129,844 $121,438 $120,529 $121,064 $145,787
- ----------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.26 $0.55 $0.57 $0.58 $0.56 $0.56
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.16+ 1.15 1.14 1.16 1.12 1.14
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.17+ 4.48 4.71 4.93 4.73 4.43
- ----------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share, and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by 0.03%. Per share, ratios, and supplemental data for periods
prior to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
(+) Total returns for Class A shares do not include the applicable sales charge. If the charges had been included, the
results wou ld have been lower.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) SOUTH CAROLINA MUNICIPAL BOND FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS B (unaudited)
Net asset value,
beginning of period $12.52 $11.99 $12.14 $11.58 $12.47 $12.52
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.23 $0.50 $0.52 $0.52 $0.51 $0.48
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 0.07 0.54 (0.16) 0.55 (0.86) (0.04)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.30 $1.04 $0.36 $1.07 $(0.35) $0.44
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.25) $(0.51) $(0.51) $(0.51) $(0.50) $(0.49)
- ----------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments -- -- -- -- (0.03) --
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- -- -- -- (0.00)+++
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- -- -- (0.01) --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to shareholders $(0.25) $(0.51) $(0.51) $(0.51) $(0.54) $(0.49)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $12.57 $12.52 $11.99 $12.14 $11.58 $12.47
- ----------------------------------------------------------------------------------------------------------------------------
Total return (%) 2.40++ 8.81 3.01 9.46 (2.82) 3.57
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.60+ 1.60 1.59 1.61 1.59 1.67
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.72+ 4.03 4.25 4.47 4.26 3.90
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 7 21 10 33 18 25
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $38,993 $37,603 $34,139 $33,302 $31,532 $36,226
- ----------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.22 $0.47 $0.49 $0.50 $0.48 $0.47
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.80+ 1.80 1.79 1.81 1.77 1.79
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.52+ 3.83 4.05 4.27 4.08 3.78
- ----------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by 0.03%. Per share, ratios, and supplemental data for periods
prior to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) TENNESSEE MUNICIPAL FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS A (unaudited)
Net asset value,
beginning of period $10.90 $10.43 $10.58 $10.11 $10.87 $10.91
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.22 $0.47 $0.49 $0.50 $0.50 $0.53
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 0.06 0.49 (0.14) 0.47 (0.69) (0.02)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.28 $0.96 $0.35 $0.97 $(0.19) $0.51
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.23) $(0.49) $(0.50) $(0.50) $(0.50) $(0.52)
- ----------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments -- -- -- -- (0.07) (0.03)
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- (0.00)+++ -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
realized gain on
investments -- -- -- -- (0.00)+++ --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to shareholders $(0.23) $(0.49) $(0.50) $(0.50) $(0.57) $(0.55)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $10.95 $10.90 $10.43 $10.58 $10.11 $10.87
- ----------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 2.59++ 9.34 3.36 9.87 (1.75) 4.80
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 0.95+ 0.97 0.94 0.95 0.96 1.02
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.06+ 4.35 4.66 4.87 (1.75) 4.80
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 7 16 12 19 20 16
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $121,651 $115,819 $101,294 $99,097 $100,251 $117,296
- ----------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.21 $0.45 $0.47 $0.48 $0.48 $0.51
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.15+ 1.17 1.14 1.15 1.14 1.14
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.86+ 4.15 4.46 4.67 4.62 4.67
- ----------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods
prior to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
(+) Total returns for Class A shares do not include the applicable sales charge. If the charge had been included, the
results would henve been lower.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) TENNESSEE MUNICIPAL FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS B (unaudited)
Net asset value,
beginning of period $10.89 $10.42 $10.57 $10.10 $10.86 $10.91
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.19 $0.40 $0.42 $0.43 $0.43 $0.45
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 0.05 0.49 (0.14) 0.47 (0.69) (0.02)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.24 $0.89 $0.28 $0.90 $(0.26) $0.43
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.19) $(0.42) $(0.43) $(0.43) $(0.43) $(0.45)
- ----------------------------------------------------------------------------------------------------------------------------
From net realized gain
on investments -- -- -- -- (0.07) (0.03)
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- (0.00)+++ -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
realized gain on
investments -- -- -- -- (0.00)+++ --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to shareholders $(0.19) $(0.42) $(0.43) $(0.43) $(0.50) $(0.48)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $10.94 $10.89 $10.42 $10.57 $10.10 $10.86
- ----------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 2.26++ 8.64 2.69 9.17 (2.39) 4.04
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.61+ 1.62 1.59 1.60 1.61 1.67
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.41+ 3.70 4.00 4.22 4.15 4.14
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 7 16 12 19 20 16
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $25,861 $27,546 $26,183 $23,656 $21,321 $22,765
- ----------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.18 $0.38 $0.40 $0.41 $0.41 $0.44
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.81+ 1.82 1.79 1.80 1.79 1.79
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.21+ 3.50 3.80 4.02 3.97 4.02
- ----------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods
prior to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) VIRGINIA MUNICIPAL BOND FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS A (unaudited)
Net asset value,
beginning of period $11.61 $11.14 $11.36 $10.91 $11.60 $11.61
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment
income(S) $0.27 $0.53 $0.54 $0.56 $0.57 $0.55
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 0.06 0.47 (0.22) 0.45 (0.70) (0.01)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.33 $1.00 $0.32 $1.01 $(0.13) $0.54
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment
income $(0.26) $(0.53) $(0.54) $(0.56) $(0.56) $(0.55)
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- (0.00)+++ (0.00)+++ -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to
shareholders $(0.26) $(0.53) $(0.54) $(0.56) $(0.56) $(0.55)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $11.68 $11.61 $11.14 $11.36 $10.91 $11.60
- ----------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 2.91++ 9.10 2.87 9.55 (1.09) 4.71
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 0.93+ 0.93 0.92 0.91 0.91 0.99
- ----------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 4.53+ 4.62 4.77 5.06 5.07 4.73
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 4 13 14 24 13 24
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $305,471 $308,164 $299,088 $304,581 $311,934 $365,880
- ----------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment
income(S)(S) $0.25 $0.51 $0.52 $0.54 $0.54 $0.54
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.13+ 1.13 1.12 1.11 1.09 1.11
- ----------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 4.33+ 4.42 4.57 4.86 4.89 4.61
- ----------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods
prior to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
(+) Total returns for Class A shares do not include the applicable sales charge. If the charges had been included, the
results wou ld have been lower.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) VIRGINIA MUNICIPAL BOND FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS B (unaudited)
Net asset value,
beginning of period $11.60 $11.13 $11.35 $10.91 $11.60 $11.61
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.23 $0.46 $0.47 $0.48 $0.49 $0.47
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 0.07 0.46 (0.22) 0.44 (0.70) (0.01)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.30 $0.92 $0.25 $0.92 $(0.21) $0.46
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.23) $(0.45) $(0.47) $(0.48) $(0.48) $(0.47)
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- (0.00)+++ (0.00)+++ -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to
shareholders $(0.23) $(0.45) $(0.47) $(0.48) $(0.48) $(0.47)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $11.67 $11.60 $11.13 $11.35 $10.91 $11.60
- ----------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 2.57++ 8.40 2.20 8.76 (1.73) 4.04
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.58+ 1.58 1.58 1.56 1.56 1.64
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.89+ 3.97 4.12 4.39 4.42 4.08
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 4 13 14 24 13 24
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $24,883 $25,470 $26,970 $29,872 $29,316 $35,644
- ----------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.22 $0.43 $0.45 $0.46 $0.47 $0.46
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.78+ 1.78 1.78 1.76 1.74 1.76
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.69+ 3.77 3.92 4.19 4.24 3.96
- ----------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods
prior to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) VIRGINIA MUNICIPAL BOND FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS C (unaudited)
Net asset value,
beginning of period $11.61 $11.13 $11.36 $10.91 $11.60 $11.61
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment
income(S) $0.23 $0.45 $0.47 $0.48 $0.49 $0.47
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 0.06 0.48 (0.23) 0.45 (0.70) (0.01)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.29 $0.93 $0.24 $0.93 $(0.21) $0.46
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment
income $(0.23) $(0.45) $(0.47) $(0.48) $(0.48) $(0.47)
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- (0.00)+++ (0.00)+++ -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to
shareholders $(0.23) $(0.45) $(0.47) $(0.48) $(0.48) $(0.47)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $11.67 $11.61 $11.13 $11.36 $10.91 $11.60
- ----------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 2.49++ 8.49 2.10 8.85 (1.73) 4.04
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.58+ 1.58 1.57 1.56 1.56 1.64
- ----------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 3.88+ 3.97 4.10 4.37 4.42 4.08
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 4 13 14 24 13 24
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $13,365 $12,758 $10,619 $6,965 $5,171 $6,523
- ----------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment
income(S)(S) $0.22 $0.43 $0.44 $0.46 $0.47 $0.46
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.78+ 1.78 1.77 1.76 1.74 1.76
- ----------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 3.68+ 3.77 3.90 4.17 4.24 3.96
- ----------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods
prior to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) WEST VIRGINIA MUNICIPAL BOND FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended -----------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS A (unaudited)
Net asset value,
beginning of period $11.77 $11.32 $11.45 $10.95 $11.75 $11.77
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment
income(S) $0.26 $0.55 $0.57 $0.57 $0.57 $0.56
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 0.02 0.46 (0.14) 0.50 (0.80) (0.01)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.28 $1.01 $0.43 $1.07 $(0.23) $0.55
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment
income $(0.26) $(0.56) $(0.56) $(0.57) $(0.57) $(0.57)
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- -- -- -- (0.00)+++
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to
shareholders $(0.26) $(0.56) $(0.56) $(0.57) $(0.57) $(0.57)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $11.79 $11.77 $11.32 $11.45 $10.95 $11.75
- ----------------------------------------------------------------------------------------------------------------------------
Total return(+) (%) 2.40++ 9.04 3.79 10.04 (1.89) 4.73
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 0.94+ 0.96 0.93 0.95 0.95 1.02
- ----------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 4.36+ 4.71 4.97 5.14 5.13 4.78
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 12 13 2 9 30 13
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $136,963 $139,564 $121,860 $118,862 $117,174 $133,456
- ----------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment
income(S)(S) $0.25 $0.53 $0.55 $0.55 $0.55 $0.55
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.14+ 1.16 1.13 1.15 1.13 1.14
- ----------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 4.16+ 4.51 4.77 4.94 4.95 4.66
- ----------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods
prior to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
(+) Total returns for Class A shares do not include the applicable sales charge. If the charges had been included, the
results wou ld have been lower.
See notes to financial statements.
- ----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) WEST VIRGINIA MUNICIPAL BOND FUND
- ----------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended -----------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS B (unaudited)
Net asset value,
beginning of period $11.76 $11.31 $11.44 $10.94 $11.74 $11.77
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment
income(S) $0.22 $0.47 $0.50 $0.50 $0.50 $0.49
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 0.03 0.46 (0.15) 0.50 (0.80) (0.03)
- ----------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.25 $0.93 $0.35 $1.00 $(0.30) $0.46
- ----------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment
income $(0.22) $(0.48) $(0.48) $(0.50) $(0.50) $(0.49)
- ----------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- -- -- -- (0.00)+++
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to
shareholders $(0.22) $(0.48) $(0.48) $(0.50) $(0.50) $(0.49)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $11.79 $11.76 $11.31 $11.44 $10.94 $11.74
- ----------------------------------------------------------------------------------------------------------------------------
Total return (%) 2.16++ 8.34 3.12 9.34 (2.53) 3.97
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.59+ 1.61 1.59 1.60 1.60 1.67
- ----------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 3.71+ 4.06 4.31 4.48 4.48 4.13
- ----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 12 13 2 9 30 13
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $17,905 $19,443 $16,248 $16,170 $14,727 $17,166
- ----------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser contractually waived a portion of its fee for the periods indicated. If this fee had been
incurred by the fund, the net investment income per share and the ratios would have been:
Net investment
income(S)(S) $0.21 $0.45 $0.47 $0.48 $0.48 $0.48
- ----------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.79+ 1.81 1.79 1.80 1.78 1.79
- ----------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 3.51+ 3.86 4.11 4.28 4.30 4.01
- ----------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of
net investment income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods
prior to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- -------------------------------------------------------------------------------
(1) BUSINESS AND ORGANIZATION
MFS Mississippi Municipal Bond Fund (Mississippi Fund), MFS New York Municipal
Bond Fund (New York Fund), MFS North Carolina Municipal Bond Fund (North
Carolina Fund), MFS Pennsylvania Municipal Bond Fund (Pennsylvania Fund), MFS
South Carolina Municipal Bond Fund (South Carolina Fund), MFS Tennessee
Municipal Bond Fund (Tennessee Fund), MFS Virginia Municipal Bond Fund (Virginia
Fund), and MFS West Virginia Municipal Bond Fund (West Virginia Fund) are each a
non-diversified series of MFS Municipal Series Trust (the trust). The trust is
organized as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company.
(2) SIGNIFICANT ACCOUNTING POLICIES
General - The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities, and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates. Because each fund invests primarily in the securities of a single
state and its political subdivisions, each fund is vulnerable to the effects of
changes in the legal and economic environment of the particular state.
Investment Valuations - Bonds and other fixed income securities (other than
short-term obligations) of U.S. issuers in each fund's portfolio are valued at
an evaluated bid price on the basis of quotes from brokers and dealers or on the
basis of valuations furnished by a pricing service. Prices obtained from pricing
services utilize both dealer-supplied valuations and electronic data processing
techniques which take into account appropriate factors such as
institutional-size trading in similar groups of securities, yield, quality,
coupon rate, maturity, type of issue, trading characteristics and other market
data without exclusive reliance upon quoted prices or exchange or over-the-
counter prices, since such valuations are believed to reflect more accurately
the fair value of such securities. All other securities (other than short-term
obligations) in each fund's portfolio for which the principal market is one or
more securities or commodities exchanges (whether domestic or foreign) will be
valued at the last reported sale price or at the settlement price prior to the
determination (or if there has been no current sale, at the closing bid price)
on the primary exchange on which such securities are traded; but if a securities
exchange is not the principal market for securities, such securities will, if
market quotations are readily available, be valued at current bid prices.
Short-term obligations in each funds' portfolio are valued at amortized cost,
which constitutes fair value as determined by the Board of Trustees. Short-term
obligations with a remaining maturity in excess of 60 days will be valued upon
dealer-supplied valuations. Portfolio investments for which market quotations
are not readily available, or whose values have been materially affected by
events occurring after the close of their primary markets, are valued at fair
value as determined in good faith by or at the direction of the Board of
Trustees.
Swap Agreements - Each fund may enter into swap agreements. A swap is an
exchange of cash payments between the fund and another party, which is based on
a specific financial index. Cash payments are exchanged at specified intervals
and the expected income or expense is recorded on the accrual basis. The value
of the swap is adjusted daily and the change in value is recorded as unrealized
appreciation or depreciation. Risks may arise upon entering into these
agreements from the potential inability of counterparties to meet the terms of
their contract and from unanticipated changes in the value of the financial
index on which the swap agreement is based. The funds use swaps for both hedging
and non-hedging purposes. For hedging purposes, the funds may use swaps to
reduce their exposure to interest and foreign exchange rate fluctuations. For
non-hedging purposes, the funds may use swaps to take a position on anticipated
changes in the underlying financial index.
Rate Lock Swaps - Each fund may enter into rate lock swaps, which are used to
reduce the interest rate risk of the portfolio. A rate lock swap is a payment or
receipt of cash on a specified future date, calculated as the difference between
the strike rate and a specific index yield on that date. The payment received or
made at the end of the measurement period is recorded as a realized gain or loss
in the Statement of Operations. The value of the swap is adjusted daily and the
change in value is recorded as unrealized appreciation or depreciation.
Investment Transactions and Income - Investment transactions are recorded on the
trade date. Interest income is recorded on the accrual basis. All premium and
discount is amortized or accreted for financial statement purposes in accordance
with accounting principles generally accepted in the United States of America.
All premium and original issue discount is amortized or accreted for tax
reporting purposes as required by federal income tax regulations. Interest
payments received in additional securities are recorded on the ex-dividend or
ex-interest date in an amount equal to the value of the security on such date.
Some securities may be purchased on a "when-issued" or "forward delivery" basis,
which means that the securities will be delivered to the fund at a future date,
usually beyond customary settlement time.
Legal fees and other related expenses incurred to preserve and protect the value
of a security owned are added to the cost of the security; other legal fees are
expensed. Capital infusions made directly to the security issuer, which are
generally non-recurring, incurred to protect or enhance the value of high-yield
debt securities, are reported as additions to the cost basis of the security.
Costs that are incurred to negotiate the terms or conditions of capital
infusions or that are expected to result in a plan of reorganization are
reported as realized losses. Ongoing costs incurred to protect or enhance an
investment, or costs incurred to pursue other claims or legal actions, are
expensed.
Fees Paid Indirectly - Each fund's custody fee is reduced according to an
arrangement that measures the value of cash deposited with the custodian by the
fund. These amounts are shown as a reduction of total expenses on the Statement
of Operations.
Tax Matters and Distributions - Each fund's policy is to comply with the
provisions of the Internal Revenue Code (the Code) applicable to regulated
investment companies and to distribute to shareholders all of its net tax-
exempt and taxable net income, including any net realized gain on investments.
Accordingly, no provision for federal income or excise tax is provided.
Distributions paid by each fund from net interest received on tax-exempt
municipal bonds are not includable by shareholders as gross income for federal
income tax purposes because each fund intends to meet certain requirements of
the Code applicable to regulated investment companies, which will enable each
fund to pay exempt-interest dividends. The portion of such interest, if any,
earned on private activity bonds issued after August 7, 1986 may be considered a
tax-preference item to shareholders.
Distributions to shareholders are recorded on the ex-dividend date. Each fund
distinguishes between distributions on a tax basis and a financial reporting
basis and only distributions in excess of tax basis earnings and profits are
reported in the financial statements as distributions from paid-in capital.
Differences in the recognition or classification of income between the financial
statements and tax earnings and profits, which result in temporary
over-distributions for financial statement purposes, are classified as
distributions in excess of net investment income or net realized gains. Common
types of book and tax differences that could occur include differences in
accounting for derivatives, defaulted bonds, capital losses, and amortization
and accretion on debt securities.
The tax character of distributions declared for the year ended March 31, 2003
was as follows:
NORTH SOUTH WEST
MISSISSIPPI NEW YORK CAROLINA PENNSYLVANIA CAROLINA TENNESSEE VIRGINIA VIRGINIA
FUND FUND FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $4,528,198 $7,901,121 $17,972,739 $4,258,405 $7,590,125 $6,198,081 $15,591,198 $7,105,662
- ------------------------------------------------------------------------------------------------------------------------------------
The tax character of distributions declared for the year ended March 31, 2002 was as follows:
NORTH SOUTH WEST
MISSISSIPPI NEW YORK CAROLINA PENNSYLVANIA CAROLINA TENNESSEE VIRGINIA VIRGINIA
FUND FUND FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income $4,138,987 $7,803,911 $18,241,878 $3,114,798 $7,376,697 $5,771,942 $16,186,791 $6,534,519
- ------------------------------------------------------------------------------------------------------------------------------------
Ordinary income 27,201 42,464 27,445 -- 41,440 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $4,166,188 $7,846,375 $18,269,323 $3,114,798 $7,418,137 $5,771,942 $16,186,791 $6,534,519
- ------------------------------------------------------------------------------------------------------------------------------------
As of March 31, 2003, the components of distributable earnings on a tax basis were as follows:
NORTH SOUTH WEST
MISSISSIPPI NEW YORK CAROLINA PENNSYLVANIA CAROLINA TENNESSEE VIRGINIA VIRGINIA
FUND FUND FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Undistributed tax-
exempt income $343,501 $205,454 $380,649 $125,108 $782,228 $186,930 $364,070 $150,944
- ------------------------------------------------------------------------------------------------------------------------------------
Undistributed long-
term capital gains -- -- 361,327 -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Capital loss
carryforward (1,942,775) (223,290) -- (1,774,306) (2,272,280) (127,577) (4,143,131) (2,813,694)
- ------------------------------------------------------------------------------------------------------------------------------------
Unrealized
appreciation 5,880,400 16,632,907 31,055,291 5,833,980 14,041,208 10,153,481 23,744,432 11,564,604
- ------------------------------------------------------------------------------------------------------------------------------------
Other temporary
differences 430,348 (694,857) (1,495,024) (457,092) (653,879) (522,895) (1,313,158) (630,892)
- ------------------------------------------------------------------------------------------------------------------------------------
For federal income tax purposes, the capital loss carryforwards may be applied against any net taxable realized gains of each
succeeding year until the earlier of its utilization or expiration.
NORTH SOUTH WEST
MISSISSIPPI NEW YORK CAROLINA PENNSYLVANIA CAROLINA TENNESSEE VIRGINIA VIRGINIA
EXPIRATION DATE FUND FUND FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
March 31, 2004 $(1,713,942) $-- $-- $(901,623) $-- $-- $-- $(1,736,294)
- ------------------------------------------------------------------------------------------------------------------------------------
March 31, 2005 (228,833) -- -- (533,472) -- -- (342,289) (714,690)
- ------------------------------------------------------------------------------------------------------------------------------------
March 31, 2008 -- (125,312) -- (43,665) -- -- -- (58,823)
- ------------------------------------------------------------------------------------------------------------------------------------
March 31, 2009 -- -- -- (175,279) (2,272,280) (127,577) (1,733,400) (220,540)
- ------------------------------------------------------------------------------------------------------------------------------------
March 31, 2010 -- (97,978) -- -- -- -- (2,067,442) (83,347)
- ------------------------------------------------------------------------------------------------------------------------------------
March 31, 2011 -- -- -- (120,267) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total $(1,942,775) $(223,290) $-- $(1,774,306) $(2,272,280) $(127,577) $(4,143,131) $(2,813,694)
- ------------------------------------------------------------------------------------------------------------------------------------
Multiple Classes of Shares of Beneficial Interest - Each fund offers multiple
classes of shares, which differ in their respective distribution and service
fees. All shareholders bear the common expenses of the fund based on the value
of settled shares outstanding of each class, without distinction between share
classes. Dividends are declared separately for each class. Differences in per
share dividend rates are generally due to differences in separate class
expenses. Class B shares will convert to Class A shares approximately eight
years after purchase.
(3) TRANSACTIONS WITH AFFILIATES
Investment Adviser - Each fund has an investment advisory agreement with
Massachusetts Financial Services Company (MFS) to provide overall investment
advisory and administrative services, and general office facilities. The
management fee is computed daily and paid monthly at an annual rate of 0.55%
of each fund's average daily net assets. The investment adviser has
voluntarily agreed to waive a portion of its fee, which is shown as a
reduction of total expenses in the Statement of Operations. This voluntary
reduction in the management fee may be rescinded for a fund by MFS only with
the approval of that fund's Board of Trustees. For each fund, management fees
incurred for the six months ended September 30, 2003 were 0.35% of average
daily net assets on an annualized basis.
MFS has agreed to pay the Pennsylvania Fund's operating expenses exclusive of
management, distribution and service fees such that the fund's other expenses
do not exceed 0.20% of its average daily net assets. This is reflected as a
reduction of total expenses on the Statement of Operations.
Each fund pays compensation to the Independent Trustees ("Trustees") in the
form of both a retainer and attendance fees, and pays no compensation directly
to its Trustees who are officers of the investment adviser, or to officers of
each fund, all of whom receive remuneration for their services to each fund
from MFS. Certain officers and Trustees of each fund are officers or directors
of MFS, MFS Fund Distributors, Inc. (MFD), and MFS Service Center, Inc.
(MFSC). Each fund has an unfunded, defined benefit plan for inactive Trustees.
Included in each fund's Trustees' compensation is a pension expense for
inactive trustees, for the six months ended September 30, 2003 as follows:
NORTH SOUTH WEST
MISSISSIPPI NEW YORK CAROLINA PENNSYLVANIA CAROLINA TENNESSEE VIRGINIA VIRGINIA
FUND FUND FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Pension Expense $603 $749 $1,009 $612 $989 $719 $1,003 $986
- ------------------------------------------------------------------------------------------------------------------------------------
Administrator - Each fund has an administrative services agreement with MFS to
provide the fund with certain financial, legal, shareholder communications,
compliance, and other administrative services. As a partial reimbursement for
the cost of providing these services, each fund pays MFS an administrative fee
not to exceed the following annual percentages rates of the fund's average
daily net assets:
First $2 billion 0.0175%
- ------------------------------------------------------------------------------
Next $2.5 billion 0.0130%
- ------------------------------------------------------------------------------
Next $2.5 billion 0.0005%
- ------------------------------------------------------------------------------
In excess of $7 billion 0.0000%
- ------------------------------------------------------------------------------
Distributor - MFD, a wholly owned subsidiary of MFS, as distributor, received
the following amounts for the six months ended September 30, 2003, as its
portion of the sales charge on sales of Class A shares of each fund.
NORTH SOUTH WEST
MISSISSIPPI NEW YORK CAROLINA PENNSYLVANIA CAROLINA TENNESSEE VIRGINIA VIRGINIA
FUND FUND FUND FUND FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------------
$18,727 $31,970 $44,469 $49,028 $35,384 $25,175 $36,379 $30,016
- --------------------------------------------------------------------------------------------------------------------------------
The Trustees have adopted a distribution plan for Class A, Class B, and Class
C shares pursuant to Rule 12b-1 of the Investment Company Act of 1940 as
follows:
Each fund's distribution plan provides that the fund will pay MFD up to 0.35%
per annum of its average daily net assets attributable to Class A shares in
order that MFD may pay expenses on behalf of each fund related to the
distribution and servicing of its shares. These expenses include a service fee
paid to each securities dealer that enters into a sales agreement with MFD of
up to 0.25% per annum of each fund's average daily net assets of accounts
attributable to that dealer and a distribution fee to MFD of up to 0.10% per
annum of each fund's average daily net assets attributable to Class A shares.
MFD retains the service fee for accounts not attributable to a securities
dealer, which amounted to the following amounts for the six months ended
September 30, 2003:
NORTH SOUTH WEST
MISSISSIPPI NEW YORK CAROLINA PENNSYLVANIA CAROLINA TENNESSEE VIRGINIA VIRGINIA
FUND FUND FUND FUND FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------------
$-- $4,617 $4,951 $150 $1,298 $804 $6,544 $2,498
- --------------------------------------------------------------------------------------------------------------------------------
During the six months ended September 30, 2003, fees incurred under the distribution plan as a percentage of each fund's average
daily net assets attributable to Class A shares on an annualized basis were as follows:
NORTH SOUTH WEST
MISSISSIPPI NEW YORK CAROLINA PENNSYLVANIA CAROLINA TENNESSEE VIRGINIA VIRGINIA
FUND FUND FUND FUND FUND FUND FUND FUND
- --------------------------------------------------------------------------------------------------------------------------------
-- 0.25% 0.35% 0.10% 0.35% 0.35% 0.35% 0.35%
- --------------------------------------------------------------------------------------------------------------------------------
Payments of the Mississippi Fund's 0.35% per annum Class A distribution and
service fee will commence on such date as the Trustees of the Trust may
determine. In the case of the New York and Pennsylvania Funds, payments of the
0.10% per annum Class A distribution fee will be implemented on such date as
the Trustees of the Trust may determine.
Additionally for the Pennsylvania Fund the remaining portion of the 0.25%
Class A service fee is not yet implemented and will become payable on such a
date as the Trustees of the Trust may determine.
Each fund's distribution plan provides that the fund will pay MFD a
distribution fee of 0.75% per annum, and a service fee of up to 0.25% per
annum, of the fund's average daily net assets attributable to Class B and
Class C shares. MFD will pay to securities dealers that enter into a sales
agreement with MFD all or a portion of the service fee attributable to Class B
and Class C shares, and will pay to such securities dealers all of the
distribution fee attributable to Class C shares. The service fee is intended
to be consideration for services rendered by the dealer with respect to Class
B and Class C shares, MFD retains the service fee for accounts not
attributable to a securities dealer. For Class B and Class C service fees
retained for the six months ended September 30, 2003 were as follows:
NORTH SOUTH WEST
MISSISSIPPI NEW YORK CAROLINA PENNSYLVANIA CAROLINA TENNESSEE VIRGINIA VIRGINIA
FUND FUND FUND FUND FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
Class B $-- $64 $21 $186 $367 $-- $32 $51
- ---------------------------------------------------------------------------------------------------------------------------------
Class C N/A $2 $1 N/A $-- N/A $-- N/A
- ---------------------------------------------------------------------------------------------------------------------------------
During the six months ended September 30, 2003, fees incurred under the
distribution plan as a percentage of average daily net assets attributable to
Class B and Class C shares on an annualized basis were as follows:
NORTH SOUTH WEST
MISSISSIPPI NEW YORK CAROLINA PENNSYLVANIA CAROLINA TENNESSEE VIRGINIA VIRGINIA
FUND FUND FUND FUND FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
Class B 88% 1.00% 1.00% 0.94% 1.00% 1.00% 1.00% 1.00%
- ---------------------------------------------------------------------------------------------------------------------------------
Class C N/A 1.00% 1.00% N/A N/A N/A 1.00% N/A
- ---------------------------------------------------------------------------------------------------------------------------------
Except in the case of the 0.25% per annum Class B service fee paid by the
Mississippi Fund upon sale of Class B shares in the first year, payment of the
Class B service fee will be suspended until such date as the Trustees of the
Trust may determine. Except in the case of the 0.25% per annum Class B service
fee paid by the Pennsylvania Fund upon sale of Class B shares in the first
year, payment of the Class B service fee will be reduced to 0.10% until such
date as the Trustees of the Trust may determine.
Certain Class A and Class C shares are subject to a contingent deferred sales
charge in the event of a shareholder redemption within, for class A shares, 12
months following the purchase, and, for class C shares, the first year from
the end of the calendar month of purchase. A contingent deferred sales charge
is imposed on shareholder redemptions of Class B shares in the event of a
shareholder redemption within six years from the end of the calendar month of
purchase. MFD receives all contingent deferred sales charges. Contingent
deferred sales charges imposed during the six months ended September 30, 2003
for Class A, Class B, and Class C shares were as follows:
NORTH SOUTH WEST
MISSISSIPPI NEW YORK CAROLINA PENNSYLVANIA CAROLINA TENNESSEE VIRGINIA VIRGINIA
CDSC IMPOSED FUND FUND FUND FUND FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
Class A $-- $4,037 $-- $1,812 $947 $-- $102 $--
- ---------------------------------------------------------------------------------------------------------------------------------
Class B $4,629 $49,173 $38,466 $55,797 $18,868 $18,119 $24,459 $32,916
- ---------------------------------------------------------------------------------------------------------------------------------
Class C N/A $3,157 $2,848 N/A N/A N/A $985 N/A
- ---------------------------------------------------------------------------------------------------------------------------------
Shareholder Servicing Agent - MFSC, a wholly owned subsidiary of MFS, earns a
fee for its services as shareholder servicing agent. The fee is calculated as
a percentage of the fund's average daily net assets at an annual rate of
0.11%.
(4) PORTFOLIO SECURITIES
Purchases and sales of investments, other than U.S. government securities and
short-term obligations, were as follows:
NORTH SOUTH WEST
MISSISSIPPI NEW YORK CAROLINA PENNSYLVANIA CAROLINA TENNESSEE VIRGINIA VIRGINIA
IMPOSED FUND FUND FUND FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
Purchases $6,735,278 $19,301,505 $27,700,983 $26,420,827 $17,054,597 $13,379,432 $14,872,042 $18,232,596
- -----------------------------------------------------------------------------------------------------------------------------------
Sales $4,659,105 $11,213,532 $35,611,724 $16,349,459 $12,104,747 $10,271,739 $20,269,762 $21,721,890
- -----------------------------------------------------------------------------------------------------------------------------------
The cost and unrealized appreciation and depreciation in the value of the
investments owned by each fund, as computed on a federal income tax basis, are
as follows:
NORTH SOUTH WEST
MISSISSIPPI NEW YORK CAROLINA PENNSYLVANIA CAROLINA TENNESSEE VIRGINIA VIRGINIA
FUND FUND FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
Aggregate cost $95,576,668 $176,141,502 $363,513,261 $115,164,098 $156,286,170 $135,435,480 $316,154,681 $141,100,941
- ------------------------------------------------------------------------------------------------------------------------------------
Gross unrealized
appreciation $6,732,860 $17,517,698 $33,884,833 $6,962,815 $15,239,444 $11,172,551 $27,411,864 $12,072,892
- ------------------------------------------------------------------------------------------------------------------------------------
Gross unrealized
depreciation $(228,756) $(148,740) $(445,551) $(122,069) $(176,805) $(173,507) $(1,344,978) $(292,935
- ------------------------------------------------------------------------------------------------------------------------------------
Net unrealized
appreciation $6,504,104 $17,368,958 $33,439,282 $6,840,746 $15,062,639 $10,999,044 $26,066,886 $11,779,957
- -----------------------------------------------------------------------------------------------------------------------------------
(5) SHARES OF BENEFICIAL INTEREST
Each fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest. Transactions in
each fund's shares were as follows:
MISSISSIPPI FUND NEW YORK FUND NORTH CAROLINA FUND PENNSYLVANIA FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
Six months ended 9/30/03
(000 Omitted) SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
Shares sold 504 $5,059 1,159 $13,347 1,073 $13,214 1,189 $12,160
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 102 1,019 173 1,981 368 4,505 89 909
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (534) (5,361) (1,149) (13,213) (2,057) (25,182) (811) (8,276)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 72 $717 183 $2,115 (616) $(7,463) 467 $4,793
- ------------------------------------------------------------------------------------------------------------------------------------
Year ended 3/31/03 (000 Omitted)
Shares sold 1,308 $12,963 1,999 $22,648 1,660 $20,028 2,820 $28,556
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 206 2,042 347 3,932 780 9,413 165 1,663
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (673) (6,672) (1,908) (21,538) (2,539) (30,707) (1,157) (11,682)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 841 $8,333 438 $5,042 (99) $(1,266) 1,828 $18,537
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Six months ended 9/30/03
(000 Omitted)
Shares sold 189 $1,897 617 $7,106 266 $3,277 690 $7,110
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 14 139 43 490 49 599 51 523
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (129) (1,298) (452) (5,171) (570) (6,948) (493) (5,045)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 74 $738 208 $2,425 (255) $(3,072) 248 $2,588
- ------------------------------------------------------------------------------------------------------------------------------------
Year ended 3/31/03 (000 Omitted)
Shares sold 469 $4,670 1,444 $16,373 776 $9,368 2,185 $22,167
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 25 246 73 824 116 1,397 81 822
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (267) (2,639) (685) (7,748) (990) (11,945) (581) (5,872)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 227 $2,277 832 $9,449 (98) $(1,180) 1,685 $17,117
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Six months ended 9/30/03
(000 Omitted)
Shares sold 530 $6,098 528 $6,496
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 19 223 37 452
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (200) (2,286) (305) (3,707)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase 349 $4,035 260 $3,241
- ------------------------------------------------------------------------------------------------------------------------------------
Year ended 3/31/03 (000
Omitted)
Shares sold 400 $4,541 819 9,887
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 30 334 67 811
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (140) (1,591) (318) (3,843)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase 290 $3,284 568 $6,855
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA FUND TENNESSEE FUND VIRGINIA FUND WEST VIRGINIA FUND
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS A SHARES
Six months ended 9/30/03
(000 Omitted) SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
Shares sold 1,237 $15,596 850 $9,333 655 $7,611 471 $5,548
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 147 1,848 124 1,353 334 3,888 171 2,008
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (1,086) (13,653) (491) (5,343) (1,375) (15,962) (890) (10,460)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 298 $3,791 483 $5,343 (386) $(4,463) (248) $(2,904)
- ------------------------------------------------------------------------------------------------------------------------------------
Year ended 3/31/03 (000
Omitted)
Shares sold 1,548 $19,226 2,101 $22,622 1,591 $18,255 1,461 $17,040
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 302 3,742 269 2,902 660 7,573 352 4,100
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (1,610) (20,054) (1,456) (15,736) (2,560) (29,382) (716) (8,365)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 240 $2,914 914 $9,788 (309) $(3,554) 1,097 $12,775
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS B SHARES
Six months ended 9/30/03
(000 Omitted)
Shares sold 350 $4,415 117 $1,281 151 $1,767 127 $1,498
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 39 485 26 287 22 255 19 227
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (291) (3,647) (309) (3,375) (236) (2,746) (280) (3,286)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 98 $1,253 (166) $(1,807) (63) $(724) (134) $(1,561)
- ------------------------------------------------------------------------------------------------------------------------------------
Year ended 3/31/03 (000 Omitted)
Shares sold 611 $7,578 470 $5,054 449 $5,163 481 $5,590
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 75 931 60 647 45 519 40 469
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (530) (6,556) (513) (5,525) (722) (8,269) (304) (3,526)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) 156 $1,953 17 $176 (228) $(2,587) 217 $2,533
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS C SHARES
Six months ended 9/30/03
(000 Omitted)
Shares sold 167 $1,964
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 15 175
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (136) (1,575)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase 46 $564
- ------------------------------------------------------------------------------------------------------------------------------------
Year ended 3/31/03 (000 Omitted)
Shares sold 380 $4,367
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 27 313
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (261) (2,991)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase 146 $1,689
- ------------------------------------------------------------------------------------------------------------------------------------
(6) LINE OF CREDIT
The trust and other affiliated funds participate in an $800 million unsecured
line of credit provided by a syndication of banks under a line of credit
agreement. Borrowings may be made for temporary financing needs. Interest is
charged to each fund, based on its borrowings, at a rate equal to the bank's
base rate. In addition, a commitment fee, based on the average daily unused
portion of the line of credit, is allocated among the participating funds at the
end of each quarter. The commitment fee allocated to each fund for the six
months ended September 30, 2003, ranged from $359 to $1,195. The trust had no
borrowings during the period.
(7) FINANCIAL INSTRUMENTS
The fund trades financial instruments with off-balance-sheet risk in the normal
course of its investing activities in order to manage exposure to market risks
such as interest rates. These financial instruments include swap agreements. The
notional or contractual amounts of these instruments represent the investment
the fund has in particular classes of financial instruments and does not
necessarily represent the amounts potentially subject to risk. The measurement
of the risks associated with these instruments is meaningful only when all
related and offsetting transactions are considered.
SWAP AGREEMENTS
Interest Rate Swaps
NOTIONAL CASH FLOWS
PRINCIPAL AMOUNT RECEIVED BY CASH FLOWS PAID UNREALIZED
FUND EXPIRATION OF CONTRACT (000) THE FUND BY THE FUND DEPRECIATION
- -----------------------------------------------------------------------------------------------------------------------------------
Mississippi Fund Floating -- 7 Day BMA
11/15/04 2,000 Swap Index Fixed -- 1.945% $(18,371)
- -----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
10/31/12 1,000 X 78.875% Swap Index (2,678)
- -----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
12/18/12 2,000 X 78.75% Swap Index (6,121)
- -----------------------------------------------------------------------------------------------------------------------------------
$(27,170)
- -----------------------------------------------------------------------------------------------------------------------------------
New York Fund Floating -- 7 Day BMA
11/15/04 4,000 Swap Index Fixed -- 1.945% $(36,742)
- -----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
10/31/12 1,750 X 78.875% Swap Index (4,687)
- -----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
12/18/12 3,500 X 78.75% Swap Index (10,712)
- -----------------------------------------------------------------------------------------------------------------------------------
$(52,141)
- -----------------------------------------------------------------------------------------------------------------------------------
North Carolina Fund Floating -- 7 Day BMA
11/15/04 5,200 Swap Index Fixed -- 1.945% $(47,765)
- -----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Fixed -- 7 Day BMA
10/31/12 4,000 X 78.875% Swap Index (10,713)
- -----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
12/18/12 8,100 X 78.75% Swap Index (24,790)
- -----------------------------------------------------------------------------------------------------------------------------------
$(83,268)
- -----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania Fund Floating -- 7 Day BMA
11/15/04 1,800 Swap Index Fixed -- 1.945% $(16,534)
- -----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
10/31/12 1,000 X 78.875% Swap Index (2,678)
- -----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
12/18/12 2,000 X 78.75% Swap Index (6,121)
- -----------------------------------------------------------------------------------------------------------------------------------
$(25,333)
- -----------------------------------------------------------------------------------------------------------------------------------
South Carolina Fund Floating -- 7 Day BMA
11/15/04 4,000 Swap Index Fixed -- 1.945% $(36,742)
- -----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
10/31/12 1,650 X 78.875% Swap Index (4,419)
- -----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
12/18/12 3,400 X 78.75% Swap Index (10,406)
- -----------------------------------------------------------------------------------------------------------------------------------
$(51,567)
- -----------------------------------------------------------------------------------------------------------------------------------
Tennessee Fund Floating -- 3M LIBOR Floating -- 7 Day BMA
10/31/12 1,400 X 78.875% Swap Index $(3,750)
- -----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
12/18/12 2,800 X 78.75% Swap Index (8,569)
- -----------------------------------------------------------------------------------------------------------------------------------
$(12,319)
- -----------------------------------------------------------------------------------------------------------------------------------
Virginia Fund Floating -- 7 Day BMA
11/15/04 4,000 Swap Index Fixed -- 1.945% $(36,743)
- -----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
10/31/12 3,400 X 78.875% Swap Index (9,106)
- -----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
12/18/12 6,900 X 78.75% Swap Index (21,117)
- -----------------------------------------------------------------------------------------------------------------------------------
$(66,966)
- -----------------------------------------------------------------------------------------------------------------------------------
West Virginia Fund Floating -- 7 Day BMA
11/15/04 3,750 Swap Index Fixed -- 1.945% $(34,446)
- -----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
10/31/12 1,500 X 78.875% Swap Index (4,018)
- -----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
12/18/12 3,000 X 78.75% Swap Index (9,181)
- -----------------------------------------------------------------------------------------------------------------------------------
$(47,645)
- -----------------------------------------------------------------------------------------------------------------------------------
Rate Lock Swaps
Description - Agreement with Goldman Sachs terminating October 1, 2003 to pay
the difference between the notional value and the market value of a bond with a
4.04% coupon maturing on 10/14/14 priced at a yield to maturity equal to the
Municipal Market Data (MMD) general obligation yield curve rate for the
designated maturity year as of the close of business on the termination date, if
negative (received if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000) ($)
- --------------------------------------------------------------------------------
Pennsylvania Fund 2,000 (80,955)
- --------------------------------------------------------------------------------
South Carolina Fund 3,000 (121,433)
- --------------------------------------------------------------------------------
Description - Agreement with Goldman Sachs terminating October 1, 2003 to pay
the difference between the notional value and the market value of a bond with a
4.22% coupon maturing on 10/1/16 priced at a yield to maturity equal to the MMD
general obligation yield curve rate for the designated maturity year as of the
close of business on the termination date, if negative (received if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000) ($)
- --------------------------------------------------------------------------------
Mississippi Fund 2,250 (93,606)
- --------------------------------------------------------------------------------
New York Fund 2,900 (120,648)
- --------------------------------------------------------------------------------
Tennessee Fund 2,000 (83,205)
- --------------------------------------------------------------------------------
Virginia Fund 5,750 (239,216)
- --------------------------------------------------------------------------------
Description - Agreement with Goldman Sachs terminating October 1, 2003 to pay
the difference between the notional value and the market value of a bond with a
4.39% coupon maturing on 10/1/18 priced at a yield to maturity equal to the MMD
general obligation yield curve rate for the designated maturity year as of the
close of business on the termination date, if negative (received if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000) ($)
- --------------------------------------------------------------------------------
North Carolina Fund 6,000 (240,633)
- --------------------------------------------------------------------------------
West Virginia Fund 2,500 (100,263)
- --------------------------------------------------------------------------------
Description - Agreement with Merrill Lynch terminating October 8, 2003 to pay
the difference between the notional value and the market value of a bond with a
4.54% coupon maturing on 10/8/20 priced at a yield to maturity equal to the MMD
general obligation yield curve rate for the designated maturity year as of the
close of business on the termination date, if negative (received if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000) ($)
- --------------------------------------------------------------------------------
Pennsylvania Fund 1,000 (30,871)
- --------------------------------------------------------------------------------
Description - Agreement with Goldman Sachs terminating October 16, 2003 to pay
the difference between the notional value and the market value of a bond with a
4.65% coupon maturing on 10/16/18 priced at a yield to maturity equal to the MMD
general obligation yield curve rate for the designated maturity year as of the
close of business on the termination date, if negative (received if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000) ($)
- --------------------------------------------------------------------------------
Mississippi Fund 700 (47,249)
- --------------------------------------------------------------------------------
New York Fund 1,400 (94,499)
- --------------------------------------------------------------------------------
North Carolina Fund 3,400 (229,498)
- --------------------------------------------------------------------------------
Pennsylvania Fund 850 (57,374)
- --------------------------------------------------------------------------------
South Carolina Fund 1,350 (91,124)
- --------------------------------------------------------------------------------
Description - Agreement with Goldman Sachs terminating November 12, 2003 to pay
the difference between the notional value and the market value of a bond with a
3.47% coupon maturing on 11/12/13 priced at a yield to maturity equal to the MMD
general obligation yield curve for the designated maturity year as of the close
of business on the termination date, if negative (received if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF APPRECIATION
FUND CONTRACT (000) ($)
- --------------------------------------------------------------------------------
New York Fund 2,000 11,506
- --------------------------------------------------------------------------------
Pennsylvania Fund 3,000 17,259
- --------------------------------------------------------------------------------
Description - Agreement with Goldman Sachs terminating November 12, 2003 to pay
the difference between the notional value and the market value of a bond with a
4.9% coupon maturing on 11/12/23 priced at a yield to maturity equal to the MMD
general obligation yield curve for the designated maturity year as of the close
of business on the termination date, if negative (received if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000) ($)
- --------------------------------------------------------------------------------
North Carolina Fund 12,000 (538,185)
- --------------------------------------------------------------------------------
Description - Agreement with Merrill Lynch terminating December 3, 2003 to pay
the difference between the notional value and the market value of a bond with a
4.248% coupon maturing on 12/3/23 priced at a yield to maturity equal to the MMD
general obligation yield curve rate for the designated maturity year as of the
close of business on the termination date, if negative (received if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF APPRECIATION
FUND CONTRACT (000) ($)
- --------------------------------------------------------------------------------
Mississippi Fund 1,000 44,707
- --------------------------------------------------------------------------------
Pennsylvania Fund 3,000 134,120
- --------------------------------------------------------------------------------
Description - Agreement with Goldman Sachs terminating December 9, 2003 to pay
the difference between the notional value and the market value of a bond with a
3.46% coupon maturing on 12/9/15 priced at a yield to maturity equal to the MMD
general obligation yield curve rate for the designated maturity year as of the
close of business on the termination date, if negative (received if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF APPRECIATION
FUND CONTRACT (000) ($)
- --------------------------------------------------------------------------------
Mississippi Fund 1,500 48,741
- --------------------------------------------------------------------------------
New York Fund 1,500 48,741
- --------------------------------------------------------------------------------
North Carolina Fund 2,000 64,988
- --------------------------------------------------------------------------------
Pennsylvania Fund 850 27,620
- --------------------------------------------------------------------------------
South Carolina Fund 1,500 48,741
- --------------------------------------------------------------------------------
Tennessee Fund 1,000 32,494
- --------------------------------------------------------------------------------
Virginia Fund 2,500 81,235
- --------------------------------------------------------------------------------
West Virginia Fund 2,650 86,109
- --------------------------------------------------------------------------------
Description - Agreement with Goldman Sachs terminating December 10, 2003 to pay
the difference between the notional value and the market value of a bond with a
4.78% coupon maturing on 12/10/23 priced at a yield to maturity equal to the MMD
general obligation yield curve rate for the designated maturity year as of the
close of business on the termination date, if negative (received if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000) ($)
- --------------------------------------------------------------------------------
Mississippi Fund 750 (18,596)
- --------------------------------------------------------------------------------
New York Fund 1,000 (24,794)
- --------------------------------------------------------------------------------
North Carolina Fund 2,500 (61,985)
- --------------------------------------------------------------------------------
Pennsylvania Fund 750 (18,596)
- --------------------------------------------------------------------------------
South Carolina Fund 1,000 (24,794)
- --------------------------------------------------------------------------------
Description - Agreement with Merrill Lynch terminating January 7, 2004 to pay
the difference between the notional value and the market value of a bond with a
4.285% coupon maturing on 1/7/19 priced at a yield to maturity equal to the MMD
general obligation yield curve rate for the designated maturity year as of the
close of business on the termination date, if negative (received if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000) ($)
- --------------------------------------------------------------------------------
Mississippi Fund 200 (2,578)
- --------------------------------------------------------------------------------
New York Fund 350 (4,511)
- --------------------------------------------------------------------------------
North Carolina Fund 800 (10,311)
- --------------------------------------------------------------------------------
Pennsylvania Fund 200 (2,578)
- --------------------------------------------------------------------------------
South Carolina Fund 350 (4,511)
- --------------------------------------------------------------------------------
Description - Agreement with Merrill Lynch terminating January 14, 2004 to pay
the difference between the notional value and the market value of a bond with a
4.029% coupon maturing on 1/14/16 priced at a yield to maturity equal to the MMD
general obligation yield curve rate for the designated maturity year as of the
close of business on the termination date, if negative (received if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000) ($)
- --------------------------------------------------------------------------------
New York Fund 1,750 (19,797)
- --------------------------------------------------------------------------------
South Carolina Fund 1,500 (16,969)
- --------------------------------------------------------------------------------
Tennessee Fund 1,250 (14,141)
- --------------------------------------------------------------------------------
Virginia Fund 2,500 (28,282)
- --------------------------------------------------------------------------------
West Virginia Fund 1,500 (16,969)
- --------------------------------------------------------------------------------
Description - Agreement with Merrill Lynch terminating January 15, 2004 to pay
the difference between the notional value and the market value of a bond with a
4.029% coupon maturing on 1/15/16 priced at a yield to maturity equal to the MMD
general obligation yield curve rate for the designated maturity year as of the
close of business on the termination date, if negative (received if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000) ($)
- --------------------------------------------------------------------------------
New York Fund 1,750 (19,627)
- --------------------------------------------------------------------------------
South Carolina Fund 1,500 (16,823)
- --------------------------------------------------------------------------------
Tennessee Fund 1,250 (14,019)
- --------------------------------------------------------------------------------
Virginia Fund 2,500 (28,038)
- --------------------------------------------------------------------------------
West Virginia Fund 1,500 (16,823)
- --------------------------------------------------------------------------------
Description - Agreement with Merrill Lynch terminating January 20, 2004 to pay
the difference between the notional value and the market value of a bond with a
4.403% coupon maturing on 1/20/19 priced at a yield to maturity equal to the MMD
general obligation yield curve rate for the designated maturity year as of the
close of business on the termination date, if negative (received if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000) ($)
- --------------------------------------------------------------------------------
Pennsylvania Fund 1,000 (24,393)
- --------------------------------------------------------------------------------
South Carolina Fund 1,000 (24,393)
- --------------------------------------------------------------------------------
Description - Agreement with Merrill Lynch terminating February 11, 2004 to pay
the difference between the notional value and the market value of a bond with a
4.35% coupon maturing on 2/11/19 priced at a yield to maturity equal to the MMD
general obligation yield curve rate for the designated maturity year as of the
close of business on the termination date, if negative (received if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000) ($)
- --------------------------------------------------------------------------------
Mississippi Fund 750 (12,023)
- --------------------------------------------------------------------------------
New York Fund 1,000 (16,030)
- --------------------------------------------------------------------------------
North Carolina Fund 2,000 (32,061)
- --------------------------------------------------------------------------------
Pennsylvania Fund 675 (10,820)
- --------------------------------------------------------------------------------
South Carolina Fund 1,000 (16,031)
- --------------------------------------------------------------------------------
West Virginia Fund 845 (13,546)
- --------------------------------------------------------------------------------
Description - Agreement with Merrill Lynch terminating March 2, 2004 to pay the
difference between the notional value and the market value of a bond with a
5.179% coupon maturing on 3/2/24 priced at a yield to maturity equal to the MMD
general obligation yield curve rate for the designated maturity year as of the
close of business on the termination date, if negative (received if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000) ($)
- --------------------------------------------------------------------------------
Pennsylvania Fund 1,000 (66,981)
- --------------------------------------------------------------------------------
Total Unrealized Appreciation (Depreciation) on Rate Lock Swaps
UNREALIZED
DEPRECIATION
FUND ($)
- --------------------------------------------------------------------------------
Mississippi Fund (80,604)
- --------------------------------------------------------------------------------
New York Fund (239,659)
- --------------------------------------------------------------------------------
North Carolina Fund (1,047,685)
- --------------------------------------------------------------------------------
Pennsylvania Fund (113,569)
- --------------------------------------------------------------------------------
South Carolina Fund (267,337)
- --------------------------------------------------------------------------------
Tennessee Fund (78,871)
- --------------------------------------------------------------------------------
Virginia Fund (214,301)
- --------------------------------------------------------------------------------
West Virginia Fund (61,492)
- --------------------------------------------------------------------------------
At September 30, 2003, the funds had sufficient cash and/or securities to cover
any commitments under these contracts.
(8) RESTRICTED SECURITIES
Each fund may invest not more than 15% of its net assets in securities which are
subject to legal or contractual restrictions on resale. At September 30, 2003,
the funds owned the following restricted securities, excluding securities issued
under Rule 144A, which may not be publicly sold without registration under the
Securities Act of 1933. Each fund does not have the right to demand that such
securities be registered.. The value of these securities is determined by
valuations furnished by dealers or by a pricing service, or if not available, in
good faith at the direction of the Trustees.
DATE OF SHARE/PAR
FUND DESCRIPTION ACQUISITION AMOUNT COST VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
Mississippi Fund Commonwealth of Puerto Rico, RITES, FGIC,
9.29s, 2016 8/5/02 3,110,000 $4,023,905 $4,162,175
- -----------------------------------------------------------------------------------------------------------------------------------
Guam Power Authority Rev., RITES, AMBAC
8.636s, 2013 5/20/99 1,000,000 1,072,720 1,227,940
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency,
RITES, FSA, 9.145s, 2017 1/6/00 750,000 703,620 928,170
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES,
AMBAC, 8.915s, 2013 9/30/99 500,000 509,110 653,940
- -----------------------------------------------------------------------------------------------------------------------------------
$6,972,225
- --------------------------------------------------------------------------------------------------
New York Fund Commonwealth of Puerto Rico, ROLs, XLCA
9.756s, 2017 10/22/01 1,350,000 $1,634,526 $1,777,680
- -----------------------------------------------------------------------------------------------------------------------------------
Guam Power Authority Rev., RITES, AMBAC
9.198s, 2014 5/20/99 500,000 531,950 609,360
- -----------------------------------------------------------------------------------------------------------------------------------
Niagara Falls, NY, Bridge Commission Toll
Rev., RITES, FGIC, 9.178s, 2015 5/21/99 3,500,000 3,755,920 4,498,060
- -----------------------------------------------------------------------------------------------------------------------------------
Triborough Bridge & Tunnel Authority Rev.,
NY, RITES, 9.668s, 2017 4/18/00 5,000,000 5,018,300 6,606,200
- -----------------------------------------------------------------------------------------------------------------------------------
$13,491,300
- -----------------------------------------------------------------------------------------------------------------------------------
North Carolina Fund Commonwealth of Puerto Rico, Highway &
Transportation Authority Rev., RITES, FSA,
10.708s, 2018 2/26/99 5,425,000 $7,037,418 $7,823,826
- -----------------------------------------------------------------------------------------------------------------------------------
North Carolina Eastern Municipal Power
Agency, RITES, AMBAC, 10.659s, 2018 5/26/00 6,500,000 6,552,130 9,190,480
- -----------------------------------------------------------------------------------------------------------------------------------
North Carolina Municipal Power Agency, ROLs,
MBIA, 9.299s, 2019 3/3/03 5,000,000 5,726,600 5,768,500
- -----------------------------------------------------------------------------------------------------------------------------------
North Carolina Municipal Power Agency, ROLs,
9.299s, 2020 3/3/03 3,000,000 3,376,680 3,456,360
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES,
AMBAC, 9.458s, 2016 9/30/99 1,500,000 1,471,890 1,967,490
- -----------------------------------------------------------------------------------------------------------------------------------
$28,206,656
- -----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania Fund Commonwealth of Puerto Rico, ROLs, FGIC,
9.846s, 2015 8/5/2002 1,000,000 $1,292,920 $1,337,780
- -----------------------------------------------------------------------------------------------------------------------------------
Commonwealth of Puerto Rico, ROLs, XLCA
9.756s, 2017 10/22/2001 1,000,000 1,210,760 1,316,800
- -----------------------------------------------------------------------------------------------------------------------------------
Commonwealth of Puerto Rico, Highway &
Transportation ROLs, MBIA, 9.846s, 2020 4/25/2003 1,500,000 1,969,560 1,989,300
- -----------------------------------------------------------------------------------------------------------------------------------
Guam Power Authority Rev., RITES, AMBAC,
9.198s, 2014 5/20/1999 2,170,000 2,308,663 2,644,622
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES,
AMBAC, 9.458s, 2013 9/30/1999 500,000 509,110 653,940
- -----------------------------------------------------------------------------------------------------------------------------------
$7,942,442
- -----------------------------------------------------------------------------------------------------------------------------------
South Carolina Fund Commonwealth of Puerto Rico, RITES,
9.78s, 2018 10/5/00 2,000,000 $2,066,433 $2,521,560
- -----------------------------------------------------------------------------------------------------------------------------------
Commonwealth of Puerto Rico, RITES,
9.78s, 2019 10/5/00 1,750,000 1,794,108 2,183,160
- -----------------------------------------------------------------------------------------------------------------------------------
Commonwealth of Puerto Rico, RITES, MBIA,
10.28s, 2020 3/30/00 2,000,000 2,043,232 2,728,920
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority,
RITES, FSA, 9.207s, 2015 9/30/99 1,000,000 976,500 1,183,780
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency,
RITES, FSA, 10.831s, 2016 1/6/00 850,000 882,124 1,145,885
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES,
AMBAC, 9.507s, 2013 9/30/99 1,375,000 1,398,793 1,798,335
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES,
AMBAC, 9.507s, 2019 3/31/99 1,300,000 1,470,326 1,696,526
- -----------------------------------------------------------------------------------------------------------------------------------
$13,258,166
- -----------------------------------------------------------------------------------------------------------------------------------
Virginia Fund Guam Power Authority Rev., RITES, AMBAC,
9.198s, 2015 5/20/99 1,010,000 $1,058,642 $1,230,907
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority,
RITES, FSA, 10.228s, 2017 8/28/00 2,500,000 2,770,600 3,452,750
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority,
RITES, FSA, 9.978s, 2019 8/28/00 1,270,000 1,345,006 1,603,629
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority,
RITES, FSA, 9.328s, 2020 8/28/00 1,250,000 1,240,075 1,451,700
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency,
RITES, FSA, 10.781s, 2016 1/6/00 1,105,000 1,148,670 1,489,651
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency,
RITES, FSA, 9.773s, 2017 1/6/00 615,000 576,968 761,099
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp.,
RITES, AMBAC, 9.458s, 2013 9/30/99 2,000,000 2,036,440 2,615,760
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp.,
RITES, AMBAC, 9.458s, 2016 3/31/99 500,000 560,030 655,830
- -----------------------------------------------------------------------------------------------------------------------------------
$13,261,326
- -----------------------------------------------------------------------------------------------------------------------------------
West Virginia Fund Commonwealth of Puerto Rico, Public
Improvement, RITES, MBIA, 10.228s, 2019 3/30/00 3,000,000 $3,090,720 $4,093,380
- -----------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency,
RITES, FSA, 9.773s, 2017 1/6/00 900,000 844,344 1,113,804
- -----------------------------------------------------------------------------------------------------------------------------------
West Virginia Building Commission, "A",
RITES, AMBAC, 9.379s, 2018 5/5/99 4,520,000 4,888,561 5,806,482
- -----------------------------------------------------------------------------------------------------------------------------------
West Virginia Building Commission, "B",
RITES, AMBAC, 9.379s, 2018 5/5/99 1,250,000 1,351,925 1,605,775
- -----------------------------------------------------------------------------------------------------------------------------------
$12,619,441
- -----------------------------------------------------------------------------------------------------------------------------------
At September 30, 2003, restricted securities constituted the following percentages of each fund's net assets:
MISSISSIPPI NEW YORK NORTH CAROLINA PENNSYLVANIA SOUTH CAROLINA VIRGINIA WEST VIRGINIA
FUND FUND FUND FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------------------------------
6.8% 6.9% 7.0% 6.4% 7.7% 3.9% 8.1%
- ---------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------------------------------------
The following tables present certain information regarding the Trustees and officers of MFS Municipal Series
Trust, of which each fund is a series, including their principal occupations, which, unless specific dates are
shown, are of more than five years' duration, although the titles may not have been the same throughout.
The Trust does not hold annual shareholder meetings for the purpose of electing Trustees, and Trustees are not
elected for fixed terms. This means that each Trustee will be elected to hold office until his or her
successor is chosen and qualified or until his or her earlier death, resignation, retirement or removal. Each
officer will hold office until his or her successor is chosen and qualified, or until he or she retires,
resigns or is removed from office.
Messrs. Shames, Cohn, Gibbons, Sherrat and Smith, and Ms. O'Neill, have served in their capacity as Trustee of
the Trust continuously since originally elected or appointed. Messrs. Ballen, Gutow, Ives, Perera and Poorvu,
and Ms. Smith, were elected by shareholders and have served as Trustees of the Trust since January 1, 2002.
Mr. Parke has served as Trustee of the Trust since January 1, 2002.
Each of the Trust's Trustees and officers holds comparable positions with certain other funds of which MFS or
a subsidiary is the investment adviser or distributor and, in the case of the officers, with certain
affiliates of MFS. Each Trustee serves as a board member of 110 funds within the MFS Family of Funds.
The Statement of Additional Information contains further information about the Trustees and is available
without charge upon request, by calling 1-800-225-2606.
Name, age, position with Trust, principal occupation, and other directorships(1)
INTERESTED TRUSTEES OFFICERS
JEFFREY L. SHAMES(2) (born 06/02/55) JOHN W. BALLEN (born 09/12/59)
Chairman Trustee and President
Massachusetts Financial Services Company, Chairman Massachusetts Financial Services Company, Chief
Executive Officer and Director
JOHN W. BALLEN(2) (born 09/12/59)
Trustee and President JAMES R. BORDEWICK, JR. (born 03/06/59)
Massachusetts Financial Services Company, Chief Assistant Secretary and Assistant Clerk
Executive Officer and Director Massachusetts Financial Services Company, Senior
Vice President and Associate General Counsel
KEVIN R. PARKE(2) (born 12/14/59)
Trustee STEPHEN E. CAVAN (born 11/06/53)
Massachusetts Financial Services Company, Secretary and Clerk
President, Chief Investment Officer and Director Massachusetts Financial Services Company, Senior
Vice President, General Counsel and Secretary
INDEPENDENT TRUSTEES
STEPHANIE A. DESISTO (born 10/01/53)
LAWRENCE H. COHN, M.D. (born 03/11/37) Assistant Treasurer
Trustee Massachusetts Financial Services Company, Vice
Brigham and Women's Hospital, Chief of Cardiac President (since April 2003); Brown Brothers
Surgery; Harvard Medical School, Professor of Harriman & Co., Senior Vice President (November
Surgery 2002 to April 2003); ING Groep N.V./Aeltus
Investment Management, Senior Vice President
WILLIAM R. GUTOW (born 09/27/41) (prior to November 2002)
Trustee
Private investor and real estate consultant; ROBERT R. FLAHERTY (born 09/18/63)
Capitol Entertainment Management Company (video Assistant Treasurer
franchise), Vice Chairman Massachusetts Financial Services Company, Vice
President (since August 2000); UAM Fund Services,
J. ATWOOD IVES (born 05/01/36) Senior Vice President (prior to August 2000)
Trustee
Private investor; KeySpan Corporation (energy RICHARD M. HISEY (born 08/29/58)
related services), Director; Eastern Enterprises Treasurer
(diversified services company), Chairman, Trustee Massachusetts Financial Services Company, Senior
and Chief Executive Officer (until November 2000) Vice President (since July 2002); The Bank of New
York, Senior Vice President (September 2000 to
ABBY M. O'NEILL (born 04/27/28) July 2002); Lexington Global Asset Managers, Inc.,
Trustee Executive Vice President and Chief Financial
Private investor; Rockefeller Financial Services, Officer (prior to September 2000); Lexington
Inc. (investment advisers), Chairman and Chief Funds, Treasurer (prior to September 2000)
Executive Officer
ELLEN MOYNIHAN (born 11/13/57)
LAWRENCE T. PERERA (born 06/23/35) Assistant Treasurer
Trustee Massachusetts Financial Services Company, Vice
Hemenway & Barnes (attorneys), Partner President
WILLIAM J. POORVU (born 04/10/35) JAMES O. YOST (born 06/12/60)
Trustee Assistant Treasurer
Private investor; Harvard University Graduate Massachusetts Financial Services Company, Senior
School of Business Administration, Class of 1961 Vice President
Adjunct Professor in Entrepreneurship Emeritus;
CBL & Associates Properties, Inc. (real estate
investment trust), Director
J. DALE SHERRATT (born 09/23/38)
Trustee
Insight Resources, Inc. (acquisition planning
specialists), President; Wellfleet Investments
(investor in health care companies), Managing
General Partner (since 1993); Cambridge
Nutraceuticals (professional nutritional
products), Chief Executive Officer (until May
2001)
ELAINE R. SMITH (born 04/25/46)
Trustee
Independent health care industry consultant
WARD SMITH (born 09/13/30)
Trustee
Private investor
(1) Directorships or trusteeships of companies required to report to the Securities and Exchange Commission
(i.e., "public companies").
* "Interested person" of MFS 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 Trust. The address of MFS is
500 Boylston Street, Boston, Massachusetts 02116.
INVESTMENT ADVISER
Massachusetts Financial Services Company
500 Boylston Street, Boston, MA 02116-3741
DISTRIBUTOR
MFS Fund Distributors, Inc.
500 Boylston Street, Boston, MA 02116-3741
PORTFOLIO MANAGERS
Michael L. Dawson(1)
Geoffrey L. Schechter(1)
CUSTODIANS
State Street Bank and Trust Company
225 Franklin Street, Boston, MA 02110
(1) MFS Investment Management
- -------------------------------------------------------------------------------
MONEY MANAGEMENT FOR ALL TYPES OF INVESTORS
- -------------------------------------------------------------------------------
YOUR GOALS ARE IMPORTANT
MFS offers a complete range of investments and investment services to address
specific financial needs over time. When your investing goals change, you can
easily stay with MFS for the products you need, when you need them. Whether
you're investing for college or retirement expenses or for tax management or
estate planning, MFS will be there.
Ask your investment professional how MFS can help you move toward the goals
you've set.
MFS FAMILY OF FUNDS(R)
More than 50 portfolios offer domestic and international equity and fixed-
income investment across the full risk spectrum
VARIABLE ANNUITIES
A selection of annuity products with advantages for building and preserving
wealth
MFS 401(k) AND IRA SUITES
Retirement plans for businesses and individuals
MFS COLLEGE SAVINGS PLANS
Investment products to help meet education expenses
MFS PRIVATE PORTFOLIO SERVICES
Investment advisory services that provide custom products for high-net-worth
individuals
You can obtain a prospectus for any MFS product from your investment
professional. The prospectus contains complete information on the fees and risks
associated with investing. Read the prospectus carefully before investing or
sending money.
Variable annuities are offered through MFS/Sun Life Financial Distributors, Inc.
- -------------------------------------------------------------------------------
CONTACT INFORMATION
- -------------------------------------------------------------------------------
INVESTOR INFORMATION
For information on MFS mutual funds, call your investment professional or, for
an information kit, call toll free: 1-800-225-2606 any business day from 8 a.m.
to 8 p.m. Eastern time.
A general description of the MFS Funds proxy voting policies is available
without charge, upon request, by calling 1-800-225-2606, by visiting the About
MFS section of mfs.com or by visiting the SEC's website at http:// www.sec.gov.
INVESTOR SERVICE
Write to us at:
MFS Service Center, Inc.
P.O. Box 2281
Boston, MA 02107-9906
Type of Information Phone number Hours, Eastern Time
- --------------------------------------------------------------------------------
General information 1-800-225-2606 8 a.m. to 8 p.m., any
business day
- --------------------------------------------------------------------------------
Speech- or hearing-impaired 1-800-637-6576 9 a.m. to 5 p.m., any
business day
- --------------------------------------------------------------------------------
Shares prices, account 1-800-MFS-TALK
balances exchanges (1-800-637-8255) 24 hours a day,
or stock and bond outlooks touch-tone required 365 days a year
- --------------------------------------------------------------------------------
WORLD WIDE WEB
Go to WWW.MFS.COM for a clear view of market events, investor education, account
access, and product and performance insights.
Go paperless with EDELIVERY: Join your fellow shareholders who are already
taking advantage of this great new benefit from MFS. With eDelivery, we send you
prospectuses, reports, and proxies electronically. You get timely information
without mailbox clutter (and help your fund save printing and postage costs).
SIGN-UP instructions: If your account is registered with us, go to www.mfs.com,
log in to your account via MFS Access, and select the eDelivery sign up options.
If you own your MFS fund shares through a financial institution or through a
retirement plan, MFS Talk, MFS Access, and eDelivery may not be available to
you.
[logo] M F S(R)
INVESTMENT MANAGEMENT
500 Boylston Street
Boston, MA 02116-3741
(C) 2003 MFS Investment Management(R)
MFS(R) investment products are offered through MFS Fund Distributors, Inc.
500 Boylston Street, Boston, MA 02116
MSTB-SEM-11/03 58M
MFS(R) Mutual Funds
SEMIANNUAL REPORT 9/30/03
MFS(R) MUNICIPAL SERIES TRUST
For the States of: Alabama,
Arkansas, California, Florida,
Georgia, Maryland, Massachusetts
[graphic omitted]
A parth for pursuing opportunity
[logo] M F S(R)
INVESTMENT MANAGEMENT
- -------------------------------------------------------------------------------
MFS(R) PRIVACY POLICY: A COMMITMENT TO YOU
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Privacy is a concern for every investor today. At MFS Investment Management(R)
and the MFS funds, we take this concern very seriously. We want you to
understand our policies about every MFS investment product and service that we
offer and how we protect the nonpublic personal information of investors who
have a direct relationship with us and our wholly owned subsidiaries.
Throughout our business relationship, you provide us with personal information;
we maintain information and records about you, your investments, and the
services you use. Examples of the nonpublic personal information we maintain
include
o data from investment applications and other forms
o share balances and transactional history with us, our affiliates, or others
o facts from a consumer reporting agency
We do not disclose any nonpublic personal information about our customers or
former customers to anyone except as permitted by law. We may share information
with companies or financial institutions that perform marketing services on our
behalf or to other financial institutions with which we have joint marketing
arrangements.
Access to your nonpublic personal information is limited to appropriate
personnel who provide products, services, or information to you. We maintain
physical, electronic, and procedural safeguards that comply with applicable
federal regulations.
If you have any questions about MFS' privacy policy, please call 1-800-225-2606
any business day between 8 a.m. and 8 p.m. Eastern time.
Note: If you own MFS products or receive MFS services in the name of a third
party such as a bank or broker-dealer, their privacy policy may apply to you
instead of ours.
- -------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE NOT A DEPOSIT
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
- --------------------------------------------------------------------------------
MFS(R) MUNICIPAL SERIES TRUST
The investment objective of each fund is to seek current income exempt from
federal income taxes and personal income tax, if any, of the state to which
its name refers.
TABLE OF CONTENTS
- ----------------------------------------------------
MFS PRIVACY POLICY
- ----------------------------------------------------
LETTER FROM THE CHAIRMAN 1
- ----------------------------------------------------
MFS ORIGINAL RESEARCH(R) 3
- ----------------------------------------------------
MANAGEMENT REVIEW 4
- ----------------------------------------------------
PERFORMANCE SUMMARY 7
- ----------------------------------------------------
PORTFOLIO OF INVESTMENTS 15
- ----------------------------------------------------
FINANCIAL STATEMENTS 51
- ----------------------------------------------------
NOTES TO FINANCIAL STATEMENTS 76
- ----------------------------------------------------
TRUSTEES AND OFFICERS 90
- ----------------------------------------------------
MONEY MANAGEMENT FOR ALL TYPES
OF INVESTORS 91
- ----------------------------------------------------
CONTACT INFORMATION 92
- ----------------------------------------------------
ASSET ALLOCATION 93
- --------------------------------------------------------------------------------
LETTER FROM THE CHAIRMAN
- --------------------------------------------------------------------------------
[Photo of Jeffrey L. Shames]
Dear Shareholders,
Our firm was built on the philosophy that bottom-up fundamental research is the
best means of achieving superior long-term investment performance. When you're
managing billions of dollars for investors, we think you have an obligation to
have in-depth, firsthand knowledge of every company owned, anywhere in the
world.
We have structured our equity and fixed-income investment teams to capitalize
on the strength of our investment process and the global reach of our analysts
based around the world. Our global research team is composed of 45 equity
research analysts, 27 based in the United States and 18 based abroad, and 26
credit research analysts. Each analyst is assigned one or more specific
industries and then charged with identifying the most attractive investment
ideas within these industries. Our U.S. and non-U.S. equity research analysts
are unified into one team that emphasizes a collaborative process in analyzing
securities around the globe. Credit analysts also share their expertise in
each segment of the fixed-income market and work as part of the same team
ensuring that every member has access to information that may have a material
effect on their investment decisions. As MFS(R) continues to grow and as
markets become more complex, we believe our structure will enable us
to maintain a consistent investment process with the goal of providing strong,
long-term investment performance across market capitalizations, investment
disciplines, and country borders for our investors.
THINKING GLOBALLY
More companies than ever compete globally and, therefore, we must make
investment decisions knowing what is occurring outside of a company's local
market. This trend plays to the strength of our environment of collaboration
between our analysts and portfolio managers around the globe. The analysts know
the most details about individual companies in specific industries and
geographic regions. The portfolio managers have broader, cross-industry
insights and a wider perspective on companies and industries. Our goal is to
make sure those two sets of perspectives coordinate and work well together. As
the world's markets become more interdependent, we believe our collaborative
environment allows us to produce solid investment ideas for our portfolios.
BUILDING A NETWORK
Simply put, we believe our structure assures that our analysts maintain their
peripheral vision rather than becoming too immersed in a specific segment of
the market. We do not believe that analysts and portfolio managers - no matter
how talented they may be - can succeed by working in a vacuum.
Through the latest technology available, our entire research team meets
frequently via video and telephone teleconferences, e-mail, and PDAs (personal
digital assistants). When we hire new analysts, we require them to spend an
average of one year in Boston to learn MFS' culture and to build relationships
with their peers. We believe the interaction among our analysts is the key to
making our collaborative process work toward delivering superior long-term
investment performance for our investors. Our analysts work out of four
research offices in Boston, London, Singapore, and Tokyo, and are assigned to
specific regions and industries. They meet regularly with their colleagues to
discuss world trends affecting the companies they cover.
In addition, our equity and fixed-income analysts often visit company
managements as a team. This collaboration is vital because of the different
perspectives they bring to their analysis. Because a company's stock price has
tended to follow its earnings over time, our equity research analysts tend to
focus on gauging earnings potential, a company's position within its industry,
and its ability to grow its market share. Conversely, our fixed-income
analysts will look at stability of a company's cash flow, the value of its
assets, and its capital structure to gauge whether the company can generate
enough free cash flow to pay off its debt. As a result of their collaboration,
we believe we're able to see a more complete view of a company.
WORKING TOGETHER
Our portfolio managers also work closely with the analysts to select the most
appropriate securities for their portfolios from the various recommendations
made by the analysts. Opinions are exchanged and ideas are challenged so that
each member of our team is involved in our investment process. In fact, our
portfolio managers will be the first ones to tell you that many of their best
ideas start with the research analysts. We believe our collaborative approach
also provides us with an effective way to assess risk. Our portfolio managers
are not discouraged from taking on an appropriate level of risk; however, we
have rigorous guidelines to assure that the level of risk is measured and
monitored and consistent with the investment philosophies of each of our
portfolios. All told, we believe our culture empowers the members of our
investment team to continue to do their best work and allows them to make
better investment decisions.
As always, we appreciate your confidence in MFS and welcome any questions or
comments you may have.
Respectfully,
/s/ Jeffrey L. Shames
Jeffrey L. Shames
Chairman
MFS Investment Management(R)
October 21, 2003
The opinions expressed in this letter are those of MFS and no forecasts can be
guaranteed.
- -------------------------------------------------------------------------------
MFS ORIGINAL RESEARCH(R)
- -------------------------------------------------------------------------------
THE HUMAN SIDE OF MONEY MANAGEMENT
For nearly 80 years MFS has been offering investors clear paths to pursuing
specific investment objectives. Today, millions of individuals and thousands
of institutions all over the world look to MFS to manage their assets with
insight and care.
Our success, we believe, has to do with the fact that we see investors as
people with plans, not just dollars to invest.
Which means, when you invest with MFS, you invest with a company dedicated to
helping you realize your long-term financial goals.
INVESTORS CHOOSE MFS FOR OUR
o global asset management expertise across all asset classes
o time-tested money management process for pursuing consistent results
o full spectrum of investment products backed by MFS Original Research(R)
o resources and services that match real-life needs
INFORMATION INTO OPPORTUNITY
Sound investments begin with sound information. MFS has been doing its own
research and analyzing findings in-house for decades. The process we use to
uncover opportunity is called MFS Original Research(R).
MFS ORIGINAL RESEARCH INVOLVES:
o meeting with the management of 3,000 companies each year to assess their
business plans and the managers' ability to execute those plans
o making onsite visits to more than 2,000 companies annually to gain
first-hand knowledge of their operations and products
o analyzing financial statements and balance sheets
o talking extensively with companies' customers and competitors
o developing our own proprietary estimates of companies' earnings
- -------------------------------------------------------------------------------
MANAGEMENT REVIEW
- -------------------------------------------------------------------------------
MARKET ENVIRONMENT
For the six-month period as a whole, long-term municipal interest rates were
virtually unchanged, while rates on shorter-maturity issues (maturities of
less than 15 years) declined modestly. Those facts, however, belie the
tremendous volatility in the bond market over that time. In early 2003 and
into the first half of the period, we saw a confluence of factors that were
positive for bond prices. Geopolitical uncertainty, the hangover from
corporate scandals in 2002, and a weak U.S. economy were among the factors
that prompted a "flight to quality" by many investors and pushed interest
rates down to four-decade lows by spring 2003.
In late June, however, the bond market reversed direction as fixed-income
investors became concerned that the economic recovery was accelerating faster
than expected. Although stocks had been rising since late March, the catalyst
for the bond market appeared to be the Federal Reserve Board's decision on
June 25 to lower rates by one-quarter percent rather than one-half percent as
many investors had expected. From that date through the end of August, bond
rates rose sharply. Rates came back down slightly in the final weeks of the
period.
Municipal bonds in general slightly outperformed Treasuries over the period,
as municipal bond yields were largely unchanged or modestly lower, while
Treasury yields were generally higher across the yield curve. (The principal
value and interest on U.S. Treasury securities are guaranteed by the U.S.
government if held to maturity.)
HOW WE MANAGE THE FUNDS
All of the MFS state municipal funds are managed with a common investment
strategy. There are four key elements to our management strategy: duration,
yield curve positioning, credit quality, and sector allocation.
DURATION is a measure of a fund's sensitivity to changes in interest rates. In
most market environments, we strive to be neutral in duration relative to our
Lipper peers, as we believe that trying to predict the direction of interest
rates is a relatively risky investment strategy. However, at times when we
believe that interest rates have become excessively low - as we felt they did
over the period - and may be about to reverse direction, we may try to protect
a fund's principal by making the fund modestly short on duration relative to
its Lipper peers.
A YIELD CURVE for bonds shows the relationship between yield and time to
maturity. In a majority of market environments, longer-maturity bonds offer
higher yields but are more exposed to duration risk - the risk that a change
in interest rates may adversely affect a bond's price. In managing the funds,
we try to pick what we believe is the optimal spot on the yield curve - a time
to maturity that optimizes the combination of yield and risk. Our research for
some time has indicated that the 15- to 20-year part of the yield curve is
that optimal spot. For example, in our experience, a 20-year bond typically
has paid 98% of the yield of a similar 30-year bond but carried only 75%-80%
of the duration risk of that 30-year bond. For that reason, the funds have
tended to be overweighted in bonds with maturities in the 15- to 20-year
range.
CREDIT QUALITY refers to the perceived ability of a bond issuer to make
interest payments and repay a bond's principal. Major credit-rating agencies
rate bonds on a scale that usually runs from "AAA" down to "BBB" for
investment-grade bonds, and "BB" and below for lower-quality,
noninvestment-grade or so-called "junk" bonds. In general, lower-rated bonds
pay higher rates of interest to compensate investors for taking on additional
risk. The funds historically have focused on using our bottom-up research to
seek out bonds that offer higher yields than average "AAA"-rated insured bonds,
yet also offer what we believe is reasonable safety of principal and interest
payments to maturity.
SECTOR ALLOCATION refers to a fund's weightings in various types of municipal
bond issues, including bonds from industries such as health care, utilities,
and airlines. Our research analysts constantly seek out sectors, and
individual bonds within those sectors, that we believe will benefit in a given
market environment.
FACTORS THAT AFFECTED PERFORMANCE
For the six-month period ended September 30, 2003, the following charts
indicate the effects of the four factors mentioned above on individual fund
performance. Note that these factors may affect fund performance in different
ways during other periods, depending on market conditions.
The first chart depicts performance relative to the fund's benchmark, the
Lehman Brothers Municipal Bond Index (the Lehman Index).
o The DURATION column indicates that the fund's duration had a positive effect
("pos"), a negative effect ("neg"), or no meaningful contribution to
relative performance ("neutral"). For the period, all of the funds were
short on duration, relative to the Lehman Index, in anticipation of rising
rates. Because short- term interest rates fell slightly while long-term
rates were relatively stable, being short on duration modestly hurt
performance of all the funds.
o YIELD CURVE indicates the effect of the fund's yield curve positioning on
performance. Over the period, bonds in the middle part of the yield curve --
10 to 20 years to maturity -- saw the strongest performance. For that
reason, the funds' overweighting in the 15- to 20-year area, relative to the
Lehman Index, helped performance of all funds.
o The average CREDIT QUALITY of most of the funds was similar to that of the
Lehman Index over the period. The effect of credit quality on relative
performance was therefore neutral. The Massachusetts fund, however, was
overweighted in higher-quality bonds, which outperformed over the period.
For that fund, credit quality had a positive effect on relative performance.
Conversely, the Maryland fund was underweighted in higher-quality bonds, and
that underweighting hurt relative performance.
o In the area of SECTOR ALLOCATION, funds that were overweighted in
credit-enhanced, or insured, bonds saw a positive effect on relative
performance. Insured bonds generally pay a lower rate of interest but have a
high credit rating because the payment of interest and principal is
guaranteed by a highly rated insurance firm as well as by the original
issuer. Most of the insured bonds in the portfolios are "AAA" rated.
KEY FACTORS IN FUND PERFORMANCE RELATIVE TO BENCHMARK
(THE LEHMAN BROTHERS MUNICIPAL BOND INDEX)
- -----------------------------------------------------------------------------
YIELD CREDIT SECTOR
STATE FUND DURATION CURVE QUALITY ALLOCATION
- -----------------------------------------------------------------------------
ALABAMA neg pos neutral pos
- -----------------------------------------------------------------------------
ARKANSAS neg pos neutral neutral
- -----------------------------------------------------------------------------
CALIFORNIA neg pos neutral neg
- -----------------------------------------------------------------------------
FLORIDA neg pos neutral pos
- -----------------------------------------------------------------------------
GEORGIA neg pos neutral pos
- -----------------------------------------------------------------------------
MARYLAND neg pos neg pos
- -----------------------------------------------------------------------------
MASSACHUSETTS neg pos pos neutral
- -----------------------------------------------------------------------------
The second chart depicts performance relative to each fund's Lipper peer
group, which consists of other state municipal funds within the same state or
group of states. (Please see the Performance Summary for each fund's actual
Lipper category.)
o Funds that had a positive DURATION effect were somewhat longer in duration
(more sensitive to interest rate changes) than their peers and benefited
from the modest decline in short-term interest rates. Conversely, funds that
were negatively affected by duration were short relative to their peers and
benefited less, or not at all, from the fall in rates. Neutral indicates no
meaningful effect on performance relative to a fund's peers.
o As mentioned earlier, the intermediate part of the YIELD CURVE saw the
strongest performance over the period. Funds that were overweighted in that
part of the curve, relative to their peers, saw a benefit from yield curve
positioning. Funds that were underweighted in that area were hurt by their
positioning on the curve.
o As with performance against the Lehman Index, an overweighting in bonds of
higher CREDIT QUALITY was positive for performance, while an underweighting
in that area hurt relative performance.
o Credit-enhanced (insured) bonds were among the strongest performers over the
period. Funds that were overweighted in this SECTOR, relative to their
peers, saw a positive effect on performance.
KEY FACTORS IN FUND PERFORMANCE
RELATIVE TO LIPPER PEER GROUPS (OTHER FUNDS IN SAME STATE)
- -----------------------------------------------------------------------------
YIELD CREDIT SECTOR
STATE FUND DURATION CURVE QUALITY ALLOCATION
- -----------------------------------------------------------------------------
ALABAMA neutral pos neutral neutral
- -----------------------------------------------------------------------------
ARKANSAS pos pos neg pos
- -----------------------------------------------------------------------------
CALIFORNIA neutral neutral neutral neutral
- -----------------------------------------------------------------------------
FLORIDA neutral neg neutral pos
- -----------------------------------------------------------------------------
GEORGIA neutral neutral neg neutral
- -----------------------------------------------------------------------------
MARYLAND neg pos neutral pos
- -----------------------------------------------------------------------------
MASSACHUSETTS neg neg neutral neutral
- -----------------------------------------------------------------------------
/s/ Michael L. Dawson /s/ Geoffrey L. Schechter
Michael L. Dawson Geoffrey L. Schechter
Portfolio Manager Portfolio Manager
The opinions expressed in this report are those of the portfolio managers and
are current only through the end of the period of the report as stated on the
cover. These views are subject to change at any time based on market and other
conditions, and no forecasts can be guaranteed.
The portfolios are actively managed, and current holdings may be different.
- --------------------------------------------------------------------------------
PERFORMANCE SUMMARY THROUGH 9/30/03 MFS(R) ALABAMA MUNICIPAL BOND FUND
- --------------------------------------------------------------------------------
Because mutual funds are designed for investors with long-term goals, we have
provided cumulative results as well as the average annual total returns for
each fund over the applicable time periods. Performance results reflect the
percentage change in net asset value, including the reinvestment of dividends
and capital gains distributions. Each fund's results have been compared to the
average relevant state municipal debt fund tracked by Lipper Inc., an
independent firm that reports mutual fund performance. For those states where
Lipper does not track state-specific fund performance, we have provided the
average "other state" municipal debt fund returns. Each fund's results have
also been compared to the Lehman Brothers Municipal Bond Index, a broad measure
of the municipal bond market. However, while this index is considered the
benchmark for the performance of municipal bond funds, it is comprised of
municipal bonds issued nationwide, while each of the funds is limited to
investing in the bonds of a particular state. PAST PERFORMANCE IS NO GUARANTEE
OF FUTURE RESULTS. (See Notes to Performance Summary.) It is not possible to
invest directly in an index.
TOTAL RETURNS
- --------------------
Average annual
without sales charge
- --------------------
Share class Inception date 6-mo 1-yr 3-yr 5-yr 10-yr
- ------------------------------------------------------------------------------
A 2/1/1990 -- 3.78% 7.55% 5.40% 5.61%
- ------------------------------------------------------------------------------
B 9/7/1993 -- 2.91% 6.72% 4.59% 4.79%
- ------------------------------------------------------------------------------
- --------------------
Average annual
- --------------------
Comparative Benchmarks
- ------------------------------------------------------------------------------
Average Alabama municipal debt
fund+ 2.68% 3.82% 7.16% 4.62% 4.96%
- ------------------------------------------------------------------------------
Lehman Brothers Municipal Bond
Index# 2.66% 3.89% 7.71% 5.67% 6.03%
- ------------------------------------------------------------------------------
- --------------------
Average annual
with sales charge
- --------------------
- ------------------------------------------------------------------------------
A -- -1.15% 5.82% 4.38% 5.10%
- ------------------------------------------------------------------------------
B -- -1.05% 5.83% 4.26% 4.79%
- ------------------------------------------------------------------------------
- --------------------
Cumulative
without sales charge
- --------------------
- ------------------------------------------------------------------------------
A 2.83% 3.78% 24.41% 30.06% 72.67%
- ------------------------------------------------------------------------------
B 2.35% 2.91% 21.53% 25.16% 59.65%
- ------------------------------------------------------------------------------
Periods less than one year are actual, not annualized.
+ Source: Lipper Inc.
# Source: Standard & Poor's Micropal, Inc.
- -------------------------------------------------------------------------------
PERFORMANCE SUMMARY THROUGH 9/30/03 MFS(R) ARKANSAS MUNICIPAL BOND FUND
- -------------------------------------------------------------------------------
TOTAL RETURNS
- ----------------------
Average annual
without sales charge
- ----------------------
Share class Inception date 6-mo 1-yr 3-yr 5-yr 10-yr
- ------------------------------------------------------------------------------
A 2/3/1992 -- 3.18% 7.48% 5.30% 5.24%
- ------------------------------------------------------------------------------
B 9/7/1993 -- 2.34% 6.63% 4.50% 4.38%
- ------------------------------------------------------------------------------
Comparative Benchmarks
- ----------------------
Average annual
- ----------------------
- ------------------------------------------------------------------------------
Average "other state"
municipal debt fund+ 2.01% 2.39% 6.21% 4.17% 4.73%
- ------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index# 2.66% 3.89% 7.71% 5.67% 6.03%
- ------------------------------------------------------------------------------
- ----------------------
Average annual
with sales charge
- ----------------------
- ------------------------------------------------------------------------------
A -- -1.72% 5.75% 4.28% 4.73%
- ------------------------------------------------------------------------------
B -- -1.61% 5.74% 4.16% 4.38%
- ------------------------------------------------------------------------------
- ----------------------
Cumulative without
sales charge
- ----------------------
- ------------------------------------------------------------------------------
A 2.22% 3.18% 24.17% 29.47% 66.60%
- ------------------------------------------------------------------------------
B 1.80% 2.34% 21.24% 24.63% 53.47%
- ------------------------------------------------------------------------------
Periods less than one year are actual, not annualized.
+ Source: Lipper Inc.
# Source: Standard & Poor's Micropal, Inc.
- ------------------------------------------------------------------------------
PERFORMANCE SUMMARY THROUGH 9/30/03 MFS(R) CALIFORNIA MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------
TOTAL RETURNS
- -----------------------
Average annual
without sales charge
- -----------------------
Share class Inception date 6-mo 1-yr 3-yr 5-yr 10-yr
- ------------------------------------------------------------------------------
A 6/18/1985 -- 2.01% 6.94% 4.98% 5.31%
- ------------------------------------------------------------------------------
B 9/7/1993 -- 1.37% 6.16% 4.19% 4.43%
- ------------------------------------------------------------------------------
C 1/3/1994 -- 1.11% 6.03% 4.06% 4.35%
- ------------------------------------------------------------------------------
- -----------------------
Average annual
- -----------------------
Comparative Benchmarks
- ------------------------------------------------------------------------------
Average California municipal debt
fund+ 1.93% 1.60% 6.07% 4.25% 5.20%
- ------------------------------------------------------------------------------
Lehman Brothers Municipal Bond
Index# 2.66% 3.89% 7.71% 5.67% 6.03%
- ------------------------------------------------------------------------------
- -----------------------
Average annual
with sales charge
- -----------------------
- ------------------------------------------------------------------------------
A -- -2.83% 5.22% 3.96% 4.80%
- ------------------------------------------------------------------------------
B -- -2.53% 5.26% 3.85% 4.43%
- ------------------------------------------------------------------------------
C -- 0.13% 6.03% 4.06% 4.35%
- ------------------------------------------------------------------------------
- -----------------------
Cumulative without
sales charge
- -----------------------
- ------------------------------------------------------------------------------
A 1.90% 2.01% 22.29% 27.49% 67.76%
- ------------------------------------------------------------------------------
B 1.66% 1.37% 19.63% 22.76% 54.31%
- ------------------------------------------------------------------------------
C 1.44% 1.11% 19.19% 22.00% 53.11%
- ------------------------------------------------------------------------------
Periods less than one year are actual, not annualized.
+ Source: Lipper Inc.
# Source: Standard & Poor's Micropal, Inc.
- ------------------------------------------------------------------------------
PERFORMANCE SUMMARY THROUGH 9/30/03 MFS(R) FLORIDA MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------
TOTAL RETURNS
- -----------------------
Average annual
without sales charge
- -----------------------
Share class Inception date 6-mo 1-yr 3-yr 5-yr 10-yr
- ------------------------------------------------------------------------------
A 2/3/1992 -- 3.26% 7.43% 5.04% 5.00%
- ------------------------------------------------------------------------------
B 9/7/1993 -- 2.42% 6.57% 4.20% 4.12%
- ------------------------------------------------------------------------------
- -----------------------
Average annual
- -----------------------
Comparative Benchmarks
- ------------------------------------------------------------------------------
Average Florida municipal
debt fund+ 1.98% 2.77% 6.52% 4.21% 4.97%
- ------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index# 2.66% 3.89% 7.71% 5.67% 6.03%
- ------------------------------------------------------------------------------
- -----------------------
Average annual
with sales charge
- -----------------------
- ------------------------------------------------------------------------------
A -- -1.65% 5.70% 4.03% 4.49%
- ------------------------------------------------------------------------------
B -- -1.52% 5.68% 3.86% 4.12%
- ------------------------------------------------------------------------------
- -----------------------
Cumulative without
sales charge
- -----------------------
- ------------------------------------------------------------------------------
A 2.52% 3.26% 23.98% 27.89% 62.91%
- ------------------------------------------------------------------------------
B 2.10% 2.42% 21.03% 22.84% 49.69%
- ------------------------------------------------------------------------------
Periods less than one year are actual, not annualized.
+ Source: Lipper Inc.
# Source: Standard & Poor's Micropal, Inc.
- ------------------------------------------------------------------------------
PERFORMANCE SUMMARY THROUGH 9/30/03 MFS(R) GEORGIA MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------
TOTAL RETURNS
- -----------------------
Average annual
without sales charge
- -----------------------
Share class Inception date 6-mo 1-yr 3-yr 5-yr 10-yr
- ------------------------------------------------------------------------------
A 6/6/1988 -- 2.88% 7.38% 5.01% 5.10%
- ------------------------------------------------------------------------------
B 9/7/1993 -- 2.12% 6.57% 4.22% 4.30%
- ------------------------------------------------------------------------------
- -----------------------
Average annual
- -----------------------
Comparative Benchmarks
- ------------------------------------------------------------------------------
Average Georgia municipal
debt fund+ 2.51% 2.93% 6.81% 4.45% 5.06%
- ------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index# 2.66% 3.89% 7.71% 5.67% 6.03%
- ------------------------------------------------------------------------------
- -----------------------
Average annual
with sales charge
- -----------------------
- ------------------------------------------------------------------------------
A -- -2.00% 5.65% 3.99% 4.59%
- ------------------------------------------------------------------------------
B -- -1.82% 5.68% 3.88% 4.30%
- ------------------------------------------------------------------------------
- -----------------------
Cumulative without
sales charge
- -----------------------
- ------------------------------------------------------------------------------
A 2.32% 2.88% 23.81% 27.66% 64.51%
- ------------------------------------------------------------------------------
B 1.94% 2.12% 21.04% 22.95% 52.37%
- ------------------------------------------------------------------------------
Periods less than one year are actual, not annualized.
+ Source: Lipper Inc.
# Source: Standard & Poor's Micropal, Inc.
- ------------------------------------------------------------------------------
PERFORMANCE SUMMARY THROUGH 9/30/03 MFS(R) MARYLAND MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------
TOTAL RETURNS
- -----------------------
Average annual
without sales charge
- -----------------------
Share class Inception date 6-mo 1-yr 3-yr 5-yr 10-yr
- ------------------------------------------------------------------------------
A 10/31/1984 -- 3.55% 7.38% 4.89% 4.99%
- ------------------------------------------------------------------------------
B 9/7/1993 -- 2.88% 6.66% 4.21% 4.29%
- ------------------------------------------------------------------------------
- -----------------------
Average annual
- -----------------------
Comparative Benchmarks
- ------------------------------------------------------------------------------
Average Maryland municipal
debt fund+ 2.02% 2.82% 6.48% 4.35% 4.91%
- ------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index# 2.66% 3.89% 7.71% 5.67% 6.03%
- ------------------------------------------------------------------------------
- -----------------------
Average annual
with sales charge
- -----------------------
- ------------------------------------------------------------------------------
A -- -1.37% 5.65% 3.87% 4.48%
- ------------------------------------------------------------------------------
B -- -1.08% 5.77% 3.87% 4.29%
- ------------------------------------------------------------------------------
- -----------------------
Cumulative without
sales charge
- -----------------------
- ------------------------------------------------------------------------------
A 2.60% 3.55% 23.82% 26.96% 62.77%
- ------------------------------------------------------------------------------
B 2.27% 2.88% 21.34% 22.93% 52.24%
- ------------------------------------------------------------------------------
Periods less than one year are actual, not annualized.
+ Source: Lipper Inc.
# Source: Standard & Poor's Micropal, Inc.
- ------------------------------------------------------------------------------
PERFORMANCE SUMMARY FUND THROUGH 9/30/03 MFS(R) MASSACHUSETTS MUNICIPAL BOND
- ------------------------------------------------------------------------------
TOTAL RETURNS
- -----------------------
Average annual
without sales charge
- -----------------------
Share class Inception date 6-mo 1-yr 3-yr 5-yr 10-yr
- ------------------------------------------------------------------------------
A 4/9/1985 -- 3.04% 7.44% 4.98% 5.17%
- ------------------------------------------------------------------------------
B 9/7/1993 -- 2.46% 6.80% 4.32% 4.48%
- ------------------------------------------------------------------------------
- -----------------------
Average annual
- -----------------------
Comparative Benchmarks
- ------------------------------------------------------------------------------
Average Massachusetts municipal
debt fund+ 2.19% 2.63% 6.88% 4.46% 5.11%
- ------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index# 2.66% 3.89% 7.71% 5.67% 6.03%
- ------------------------------------------------------------------------------
- -----------------------
Average annual
with sales charge
- -----------------------
- ------------------------------------------------------------------------------
A -- -1.85% 5.71% 3.96% 4.66%
- ------------------------------------------------------------------------------
B -- -1.48% 5.92% 3.98% 4.48%
- ------------------------------------------------------------------------------
- -----------------------
Cumulative without
sales charge
- -----------------------
- ------------------------------------------------------------------------------
A 2.18% 3.04% 24.03% 27.52% 65.52%
- ------------------------------------------------------------------------------
B 1.85% 2.46% 21.84% 23.53% 54.98%
- ------------------------------------------------------------------------------
Periods less than one year are actual, not annualized.
+ Source: Lipper Inc.
# Source: Standard & Poor's Micropal, Inc.
- -------------------------------------------------------------------------------
NOTES TO PERFORMANCE SUMMARY AND RISK CONSIDERATIONS
- -------------------------------------------------------------------------------
NOTES TO PERFORMANCE SUMMARY
Class A share performance, including sales charge, reflects the deduction of
the maximum 4.75% sales charge. Class B results, including sales charge,
reflects the deduction of the applicable contingent deferred sales charge
(CDSC), which declines over six years from 4% to 0%.
For those funds listed above that offer Class C shares, Class C results,
including sales charge, redeemed within one year from the end of the calendar
month of purchase reflects the deduction of the 1% CDSC.
Performance for share classes initially offered after Class A shares includes
the performance of the funds' Class A shares for periods prior to their
offering. Blended class performance has been adjusted to take into account
differences in sales loads, if any, applicable to these share classes, but has
not been adjusted to take into account differences in class specific operating
expenses (such as Rule 12b-1 fees). Compared to performance these share
classes would have experienced had they been offered for the entire period,
the use of blended performance generally results in higher performance
for share classes with higher operating expenses than the initial share class,
and lower performance for share classes with lower operating expenses than the
initial share class.
All performance results reflect any applicable expense subsidies and waivers
in effect during the periods shown; without these, the results would have been
less favorable. See the prospectus and financial statements for details. All
results are historical and assume the reinvestment of dividends and capital
gains.
INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. PAST PERFORMANCE
IS NO GUARANTEE OF FUTURE RESULTS, AND THE PERFORMANCE SHOWN DOES NOT REFLECT
THE DEDUCTION OF TAXES, IF ANY, THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES.
MARKET VOLATILITY CAN SIGNIFICANTLY AFFECT SHORT-TERM PERFORMANCE, AND MORE
RECENT RETURNS MAY BE DIFFERENT FROM THOSE SHOWN. VISIT WWW.MFS.COM FOR MORE
CURRENT PERFORMANCE RESULTS.
RISK CONSIDERATIONS
A small portion of income may be subject to state, federal and/or alternative
minimum tax. Capital gains, if any, are subject to a capital gains tax.
If you are not a resident of the state to which the fund is targeted, the
state tax exemption will not apply.
Investments in high yield or lower-rated securities may provide greater
returns but are subject to greater-than-average risk.
By concentrating in one state, the portfolio is more susceptible to adverse
economic, political or regulatory developments affecting that state than is a
portfolio that invests more broadly.
Because the portfolio invests in a limited number of companies a change in one
security's value may have a more significant effect on the portfolio's value.
These risks may increase share price volatility. Please see the prospectus for
further information regarding these and other risk considerations.
This report is prepared for the general information of shareholders. It is
authorized for distribution to prospective investors only when preceded or
accompanied by a current prospectus.
- -----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited) - 9/30/03 MFS(R) ALABAMA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------------------------------------------------------
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset
classes.
Municipal Bonds - 97.6%
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
ISSUER (000 Omitted) $ VALUE
- -----------------------------------------------------------------------------------------------------------------------------
Airport and Port Alabama Docks Department Facilities Rev.,
Revenue - 3.2% MBIA, 5.375s, 2017 $1,000 $1,082,830
- -----------------------------------------------------------------------------------------------------------------------------
Alabama Docks Department Facilities Rev.,
MBIA, 5.5s, 2022 1,000 1,092,950
- -----------------------------------------------------------------------------------------------------------------------------
Alabama Port Authority Docks Facility,
MBIA, 5.25s, 2026 1,000 1,029,000
- -----------------------------------------------------------------------------------------------------------------------------
$3,204,780
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - General
Purpose - 9.8% Birmingham, AL, Series A, FSA, 5.5s, 2013 $1,140 $1,322,343
- -----------------------------------------------------------------------------------------------------------------------------
Hoover, AL, Series B, 6s, 2017 500 567,215
- -----------------------------------------------------------------------------------------------------------------------------
Houston County, AL, AMBAC, 6.25s, 2019 750 887,408
- -----------------------------------------------------------------------------------------------------------------------------
Huntsville, AL, School Warrants, Series F,
5s, 2012 1,000 1,100,930
- -----------------------------------------------------------------------------------------------------------------------------
Huntsville, AL, Series A, 5.5s, 2020 1,000 1,059,840
- -----------------------------------------------------------------------------------------------------------------------------
Mobile County, AL, 6s, 2014 1,345 1,571,632
- -----------------------------------------------------------------------------------------------------------------------------
Russell County, AL, Warrants, Series A,
AMBAC, 5s, 2017 1,000 1,079,260
- -----------------------------------------------------------------------------------------------------------------------------
Saraland, AL, Warrants, MBIA, 5.25s, 2012 1,000 1,117,600
- -----------------------------------------------------------------------------------------------------------------------------
Tuscaloosa, AL, 5.7s, 2018 1,000 1,116,060
- -----------------------------------------------------------------------------------------------------------------------------
$9,822,288
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Improvement Birmingham, AL, Refunding & Capital
- - 7.2% Improvement, Series B, AMBAC,
5.25s, 2022 $1,000 $1,067,660
- -----------------------------------------------------------------------------------------------------------------------------
Birmingham, AL, Series A, 5.75s, 2017 1,000 1,147,440
- -----------------------------------------------------------------------------------------------------------------------------
Birmingham, AL, Series B, 5.75s, 2019 2,000 2,251,900
- -----------------------------------------------------------------------------------------------------------------------------
Jefferson County, AL, Capital Improvement
& Refunding Warrants, Series A, MBIA, 5s, 2023 1,000 1,030,870
- -----------------------------------------------------------------------------------------------------------------------------
Montgomery, AL, MBIA, 5.1s, 2021 1,005 1,052,496
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency,
RITES, FSA, 9.773s, 2017(++)+ 500 618,780
- -----------------------------------------------------------------------------------------------------------------------------
$7,169,146
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Alabama Public School & College, Capital
Schools - 6.9% Improvement, FSA, 5.125s, 2013 $1,000 $1,105,370
- -----------------------------------------------------------------------------------------------------------------------------
Bessemer, AL, AMBAC, 5.5s, 2020 2,015 2,207,654
- -----------------------------------------------------------------------------------------------------------------------------
Jefferson County, AL, FSA, 5.5s, 2020 1,750 1,908,358
- -----------------------------------------------------------------------------------------------------------------------------
Phenix City, AL, AMBAC, 5.65s, 2021 1,500 1,655,175
- -----------------------------------------------------------------------------------------------------------------------------
$6,876,557
- -----------------------------------------------------------------------------------------------------------------------------
Health/Hospitals - 15.2% Alabama Special Care Facilities Financing
Authority (Daughters of Charity), AMBAC,
5s, 2025 $1,500 $1,534,335
- -----------------------------------------------------------------------------------------------------------------------------
Baldwin County, AL, Eastern Shore Health
Care (Thomas Hospital), 6.75s, 2015 500 515,710
- -----------------------------------------------------------------------------------------------------------------------------
Birmingham Medical Center East Alabama
Special, Health Care Facility Eastern
Health Systems, Series B, 5s, 2018 500 483,000
- -----------------------------------------------------------------------------------------------------------------------------
Birmingham, AL, Baptist Health Systems,
Series A (Baptist Medical Center), 5.625s, 2015 300 319,848
- -----------------------------------------------------------------------------------------------------------------------------
Birmingham, AL, Special Care Facilities,
Series B, AMBAC, 5s, 2016 1,005 1,090,626
- -----------------------------------------------------------------------------------------------------------------------------
Cullman, AL, Medical Park South Clinic,
Series A, 6.5s, 2023 1,000 1,008,590
- -----------------------------------------------------------------------------------------------------------------------------
DCH Health Care Authority, Alabama
Facilities Rev., 5.25s, 2016 1,000 1,035,030
- -----------------------------------------------------------------------------------------------------------------------------
Houston County, AL, Health Care Authority,
AMBAC, 6.125s, 2022 1,000 1,146,540
- -----------------------------------------------------------------------------------------------------------------------------
Huntsville, AL, Health Care Authority
Rev., Series A, MBIA, 5s, 2023 1,000 1,021,430
- -----------------------------------------------------------------------------------------------------------------------------
Huntsville, AL, Health Care Authority
Rev., Series A, 5.625s, 2026 950 970,093
- -----------------------------------------------------------------------------------------------------------------------------
Lauderdale County & Florence, AL, Health
Care Authority Rev. (Eliza Coffee Memorial
Hospital), MBIA, 5.75s, 2008(+++) 1,000 1,164,950
- -----------------------------------------------------------------------------------------------------------------------------
Lauderdale County & Florence, AL, Health
Care Authority Rev., Series A (Coffee
Health Group), MBIA, 5.75s, 2014 1,000 1,138,740
- -----------------------------------------------------------------------------------------------------------------------------
Marshall County, AL, Health Care Authority
Rev., Series A, 5.75s, 2032 1,000 1,018,960
- -----------------------------------------------------------------------------------------------------------------------------
Montgomery, AL, Medical Clinic Board Rev.
(Jackson Hospital & Clinic), AMBAC,
5.875s, 2016 1,000 1,101,540
- -----------------------------------------------------------------------------------------------------------------------------
Montgomery, AL, Special Care Facilities
Financing Authority Rev., Series C
(Baptist Health), FSA, 5.375s, 2019 1,150 1,242,057
- -----------------------------------------------------------------------------------------------------------------------------
Valley, AL, Special Care Facilities
Financing Authority, Series A (Lanier
Memorial Hospital), 5.65s, 2022 475 430,483
- -----------------------------------------------------------------------------------------------------------------------------
$15,221,932
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Mobile County, AL, Industrial Development
Metals - 0.5% Authority Rev. (Ipsco, Inc.),
6.875s, 2030 $500 $495,200
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Fairfield, AL, Environment Improvement
Other - 0.4% Rev. (USX Corp.), 5.4s, 2016 $400 $429,588
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Butler, AL, Solid Waste Disposal Rev.
Paper - 3.0% (James River Corp.), 8s, 2028 $150 $150,482
- -----------------------------------------------------------------------------------------------------------------------------
Camden, AL, Industrial Development Board
Exempt Rev. (Weyerhaeuser),
Series B, 6.375s, 2024 500 517,045
- -----------------------------------------------------------------------------------------------------------------------------
Mobile, AL, Industrial Development Board
Improvement Rev., Series A (International
Paper Co.), 6.35s, 2016 650 692,516
- -----------------------------------------------------------------------------------------------------------------------------
Mobile, AL, Industrial Development Board
Improvement Rev., Series B (International
Paper Co.), 6.45s, 2019 350 366,639
- -----------------------------------------------------------------------------------------------------------------------------
Phenix City, AL, Enviromental Improvement
Rev. (MeadWestvaco Co.),
6.35s, 2035 750 771,630
- -----------------------------------------------------------------------------------------------------------------------------
Selma, AL, Industrial Development Board,
Series A (International Paper Co.), 6.7s, 2018 500 532,290
- -----------------------------------------------------------------------------------------------------------------------------
$3,030,602
- -----------------------------------------------------------------------------------------------------------------------------
Miscellaneous Revenue - Birmingham, AL, Downtown Redevelopment
Other - 3.7% Authority Rev. (Social Security
Administration Building), 12.5s, 2010 $1,920 $2,644,378
- -----------------------------------------------------------------------------------------------------------------------------
East Central, AL, Industrial Development
Authority, Rev., AMBAC, 5.4s, 2015 1,000 1,100,840
- -----------------------------------------------------------------------------------------------------------------------------
$3,745,218
- -----------------------------------------------------------------------------------------------------------------------------
Multi-Family Housing Alabama Housing Finance Authority, Multi-
Revenue - 2.7% Family Residential Development Rev. (St.
Jude), FHA, 7.25s, 2023 $1,205 $1,221,942
- -----------------------------------------------------------------------------------------------------------------------------
Alabama Housing Finance Authority, Multi-
Family Residential Developement Rev.
(South Bay Apartments), Series K, FNMA,
5.875s, 2021 960 1,013,146
- -----------------------------------------------------------------------------------------------------------------------------
Birmingham, AL, Multi-Family Housing Rev.,
Series C (Beaconview Apartments), 8s, 2030** 395 196,501
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Housing Finance Corp., Multi-
Family Mortgage Rev., LOC, 7.5s, 2015 235 241,225
- -----------------------------------------------------------------------------------------------------------------------------
$2,672,814
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - Alabama Housing Finance Authority,
State - 3.3% Collateral Home Mortgage Bond Program II,
Series B, 5.15s, 2019 $400 $411,896
- -----------------------------------------------------------------------------------------------------------------------------
Alabama Housing Finance Authority, Single
Family Mortgage Rev., Collateral Home
Mortgage Bond Program II, Series B, 5.15s, 2019 410 422,193
- -----------------------------------------------------------------------------------------------------------------------------
Alabama Housing Finance Authority, Single
Family Mortgage Rev., Series A, GNMA,
6.55s, 2014 595 612,237
- -----------------------------------------------------------------------------------------------------------------------------
Alabama Housing Finance Authority, Single
Family Mortgage Rev., Series A, GNMA,
5.4s, 2022 925 949,633
- -----------------------------------------------------------------------------------------------------------------------------
Alabama Housing Finance Authority, Single
Family Mortgage Rev., Series B,
5.7s, 2015 830 874,148
- -----------------------------------------------------------------------------------------------------------------------------
$3,270,107
- -----------------------------------------------------------------------------------------------------------------------------
State and Local Alabama Building Renovation Authority,
Appropriation - 6.4% AMBAC, 6s, 2014 $1,515 $1,794,790
- -----------------------------------------------------------------------------------------------------------------------------
Alabama Public School & College, Capital
Improvement, Series C, 5.75s, 2017 1,000 1,134,430
- -----------------------------------------------------------------------------------------------------------------------------
Alabama Public School & College, Capital
Improvement, Series C, 5.75s, 2018 1,035 1,171,227
- -----------------------------------------------------------------------------------------------------------------------------
Jefferson County, AL, Board of Education,
Series A, FSA, 5.8s, 2020 865 959,397
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES,
AMBAC, 9.458s, 2013(++)+ 500 653,940
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES,
AMBAC, 9.458s, 2016(++)+ 500 655,830
- -----------------------------------------------------------------------------------------------------------------------------
$6,369,614
- -----------------------------------------------------------------------------------------------------------------------------
Tax - Other - 1.0% Virgin Islands Public Finance Authority,
Series A, ASST GTY, 5.5s, 2018 $1,000 $1,043,280
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco - 0.4% Childrens Trust Fund, Settlement Rev.,
5.375s, 2033 $485 $433,406
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Colleges - 5.2% Alabama Board of Education Rev. (Shelton
State Community College), MBIA,
6s, 2004(+++) $1,000 $1,070,200
- -----------------------------------------------------------------------------------------------------------------------------
Alabama Public Schools & College, Series
A, 5s, 2019 500 522,650
- -----------------------------------------------------------------------------------------------------------------------------
Alabama State Board of Education Rev.,
Refunding & Improvement Southern Union
Community, MBIA, 5s, 2022 1,000 1,037,690
- -----------------------------------------------------------------------------------------------------------------------------
Auburn University, Alabama General Fee
Rev., AMBAC, 5.25s, 2016 750 832,740
- -----------------------------------------------------------------------------------------------------------------------------
Auburn University, Alabama University
Rev., Capital Appreciation Athletic
Series A, FSA, 0s, 2012 1,600 1,151,440
- -----------------------------------------------------------------------------------------------------------------------------
University Alabama, University Rev.,
General Fee, FGIC, 5s, 2021 525 550,777
- -----------------------------------------------------------------------------------------------------------------------------
$5,165,497
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Municipal Alabama Municipal Power Electric
Owned - 10.4% Authority, Series A, MBIA, 5s, 2023 $1,000 $1,029,260
- -----------------------------------------------------------------------------------------------------------------------------
DeKalb & Cherokee County, AL, Gas Rev.,
AMBAC, 5.4s, 2016 2,000 2,197,380
- -----------------------------------------------------------------------------------------------------------------------------
Guam Power Authority Rev., RITES, AMBAC,
9.198s, 2013(++)+ 500 613,970
- -----------------------------------------------------------------------------------------------------------------------------
Guam Power Authority Rev., RITES, AMBAC,
8.698s, 2018(++)+ 4,500 5,064,930
- -----------------------------------------------------------------------------------------------------------------------------
Southeast Alabama Gas District Systems
Rev., Series A, AMBAC, 5.5s, 2020 1,000 1,096,070
- -----------------------------------------------------------------------------------------------------------------------------
Tuskegee, AL, Utilities Board, AMBAC,
5.5s, 2022 400 428,104
- -----------------------------------------------------------------------------------------------------------------------------
$10,429,714
- -----------------------------------------------------------------------------------------------------------------------------
Water and Sewer Utility Revenue - Alabama Drinking Water Finance Authority,
18.3% Series A, AMBAC, 6s, 2021 $725 $830,980
- -----------------------------------------------------------------------------------------------------------------------------
Alabama Drinking Water Finance Authority,
Series C, AMBAC, 5.75s, 2018 1,000 1,129,140
- -----------------------------------------------------------------------------------------------------------------------------
Alabama Water Pollution Control Authority,
AMBAC, 5.75s, 2019 1,000 1,121,610
- -----------------------------------------------------------------------------------------------------------------------------
Alabama Water Pollution Control Authority,
Refunding Revolving Fund Loan, Series B,
AMBAC, 5.25s, 2010 1,000 1,137,400
- -----------------------------------------------------------------------------------------------------------------------------
Alabama Water Pollution Control Authority,
Revolving Fund Loan, Series A, AMBAC, 5s, 2009 500 563,685
- -----------------------------------------------------------------------------------------------------------------------------
Alabama Water Pollution Control Authority,
Series B, AMBAC, 5.5s, 2016 1,000 1,100,250
- -----------------------------------------------------------------------------------------------------------------------------
Alabama Water Pollution Control Authority,
Series B, AMBAC, 5.5s, 2020 1,380 1,502,185
- -----------------------------------------------------------------------------------------------------------------------------
Bessemer, AL, Water Rev., Series A, AMBAC,
5.75s, 2026 1,000 1,087,810
- -----------------------------------------------------------------------------------------------------------------------------
Jasper, AL, Waterworks & Sewer Board,
Series A, AMBAC, 5.2s, 2020 750 798,518
- -----------------------------------------------------------------------------------------------------------------------------
Jefferson County, AL, Sewer Rev., Series
D, FGIC, 5.7s, 2007(+++) 1,000 1,137,610
- -----------------------------------------------------------------------------------------------------------------------------
Jefferson County, AL, Sewer Rev., Capital
Improvement Warrants Series A, FGIC,
5.375s, 2009(+++) 1,000 1,152,380
- -----------------------------------------------------------------------------------------------------------------------------
Limestone County, AL, Water Authority,
FGIC, 5.5s, 2026 2,650 2,823,999
- -----------------------------------------------------------------------------------------------------------------------------
Madison, AL, Water & Waste Board, MBIA,
5.5s, 2019 1,000 1,091,750
- -----------------------------------------------------------------------------------------------------------------------------
Mobile, AL, Water & Sewer Commission,
FGIC, 5s, 2011 1,570 1,739,764
- -----------------------------------------------------------------------------------------------------------------------------
Mobile, AL, Water & Sewer Commission,
FGIC, 5.25s, 2016 1,000 1,105,720
- -----------------------------------------------------------------------------------------------------------------------------
$18,322,801
- -----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Identified Cost, $89,176,710) $97,702,544
- -----------------------------------------------------------------------------------------------------------------------------
Floating Rate Demand Note - 0.9%
- -----------------------------------------------------------------------------------------------------------------------------
Jefferson County, AL, Sewer Rev., due 10/
01/03, at Amortized Cost and Value $935 $935,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $90,111,710) $98,637,544
- -----------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 1.5% 1,517,930
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - 100.0% $100,155,474
- -----------------------------------------------------------------------------------------------------------------------------
See portfolio footnotes and notes to financial statements.
- -----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited) - 9/30/03 MFS(R) ARKANSAS MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------------------------------------------------------
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset
classes.
Municipal Bonds - 98.1%
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
ISSUER (000 Omitted) $ VALUE
- -----------------------------------------------------------------------------------------------------------------------------
Airport and Port Little Rock, AR, Airport Rev., Series A,
Revenue - 1.3% FSA, 5.25s, 2019 $800 $846,256
- -----------------------------------------------------------------------------------------------------------------------------
Virgin Island Port Authority Marine Rev.,
Series A, FSA, 5.25s, 2018 1,000 1,069,260
- -----------------------------------------------------------------------------------------------------------------------------
$1,915,516
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - General Arkansas, Federal Highway Grant
Purpose - 3.9% Anticipation, Series A, 5.25s, 2011 $570 $644,043
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas, Federal Highway Grant
Anticipation, Series A, 5.5s, 2011 850 968,915
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas College Savings, 0s, 2017 1,840 1,019,820
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Puerto Rico,
Infrastructure, RITES, 9.728s, 2019(++)+ 1,250 1,559,400
- -----------------------------------------------------------------------------------------------------------------------------
Sebastian County, AR, Refunding &
Improvement, AMBAC, 5.6s, 2007(+++) 1,500 1,710,690
- -----------------------------------------------------------------------------------------------------------------------------
$5,902,868
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Improvement Arkansas, Federal Highway Grant
- - 7.8% Anticipation Tax Rev., 5s, 2014 $1,500 $1,654,470
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Puerto Rico, RITES, MBIA,
10.228s, 2020(++)+ 3,000 4,093,380
- -----------------------------------------------------------------------------------------------------------------------------
Little Rock, AR, School District, Series
C, FSA, 5s, 2017 1,000 1,059,060
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency,
RITES, FSA, 9.773s, 2017(++)+ 735 909,606
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency,
RITES, FSA, 9.773s, 2018(++)+ 3,250 3,985,540
- -----------------------------------------------------------------------------------------------------------------------------
$11,702,056
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Arkansas College Savings, Capital
Schools - 3.9% Appreciation, Series B, 0s, 2012 $1,200 $863,904
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas College Savings, Capital
Appreciation, Series B, 0s, 2013 1,000 684,700
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas College Savings, Capital
Appreciation, Series B, 0s, 2014 1,150 748,547
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas College Savings, Capital
Appreciation, Series B, 0s, 2015 1,600 991,328
- -----------------------------------------------------------------------------------------------------------------------------
Little Rock, AR, School District, Series
A, FSA, 5.5s, 2005 490 517,126
- -----------------------------------------------------------------------------------------------------------------------------
Little Rock, AR, School District, Series
A, FSA, 5.4s, 2017 1,000 1,085,590
- -----------------------------------------------------------------------------------------------------------------------------
Rogers, AR, School District, Number 030,
Refunding & Construction, Series A, AMBAC,
5s, 2027 1,000 1,007,200
- -----------------------------------------------------------------------------------------------------------------------------
$5,898,395
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Long Term Arkansas Development Finance Authority
Care - 1.0% (Evangelical Lutheran), Series B, AMBAC,
5.375s, 2019 $1,315 $1,435,441
- -----------------------------------------------------------------------------------------------------------------------------
Health/Hospitals - 11.2% Arkansas Development Finance Authority,
Health Facilities Rev. (Sisters of Mercy),
MBIA, 5s, 2013 $4,340 $4,774,347
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas Development Finance Authority,
Health Facilities Rev. (Sisters of Mercy),
MBIA, 5s, 2019 4,000 4,057,680
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas Development Finance Authority
(Washington Regional Medical Center),
7.25s, 2020 500 541,315
- -----------------------------------------------------------------------------------------------------------------------------
Baxter County, AR, Hospital Rev.,
Refunding & Improvement, Series B,
5.6s, 2021 1,500 1,522,560
- -----------------------------------------------------------------------------------------------------------------------------
Crittenden County, AR, 7.15s, 2025 750 827,993
- -----------------------------------------------------------------------------------------------------------------------------
Jefferson County, AR, Hospital Rev.,
Refunding and Improvement (Regional
Medical Center), 5.8s, 2021 1,000 1,046,530
- -----------------------------------------------------------------------------------------------------------------------------
Little Rock, AR, Health Facilities Board
(Baptist Medical Center), 6.9s, 2009 400 473,344
- -----------------------------------------------------------------------------------------------------------------------------
Little Rock, AR, Health Facility Board,
Baptist Health-Bri Project, 5s, 2014 500 528,510
- -----------------------------------------------------------------------------------------------------------------------------
North Little Rock, AR, Baptist Health
Facilities, 5.7s, 2022 500 520,015
- -----------------------------------------------------------------------------------------------------------------------------
Pulaski County, AR, Hospital Rev.
(Arkansas Childerens Hospital), Series B,
5.25s, 2015 500 522,245
- -----------------------------------------------------------------------------------------------------------------------------
Pulaski County, AR, Hospital Rev.
(Arkansas Childrens Hospital), Series B,
5.25s, 2016 1,000 1,037,700
- -----------------------------------------------------------------------------------------------------------------------------
Sebastian County, AR, Health Facilities
Improvement (Sparks Regional Medical
Center), Series A, 5.25s, 2021 1,000 1,011,150
- -----------------------------------------------------------------------------------------------------------------------------
$16,863,389
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Jonesboro, AR, Industrial Development Rev.
Other - 0.7% (Anheuser Busch Project), 4.6s, 2012 $1,000 $1,057,040
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Arkansas State Development Finance
Paper - 1.3% Authority, Industrial Facilities Rev.
(Potlatch Corp.), 7.75s, 2025 $250 $265,292
- -----------------------------------------------------------------------------------------------------------------------------
Camden, AR, Environmental Improvement Rev.
(International Paper Co.),
Series A, 7.625s, 2018 1,000 1,049,900
- -----------------------------------------------------------------------------------------------------------------------------
Pine Bluff, AR, Environmental Improvement
Rev. (International Paper Co.),
Series A, 6.7s, 2020 300 322,365
- -----------------------------------------------------------------------------------------------------------------------------
Pine Bluff, AR, Environmental Improvement
Rev. (International Paper Co.),
Series A, 5.55s, 2022 250 253,203
- -----------------------------------------------------------------------------------------------------------------------------
$1,890,760
- -----------------------------------------------------------------------------------------------------------------------------
Multi-Family Housing Fort Smith, AR, Residential Housing
Revenue - 2.0% (Gorman Towers), Series A, GNMA,
5.45s, 2037 $1,000 $1,026,420
- -----------------------------------------------------------------------------------------------------------------------------
Pulaski County, AR, Public Facilities
Board Rev., Series A, GNMA, 5.75s, 2034 1,925 1,984,810
- -----------------------------------------------------------------------------------------------------------------------------
$3,011,230
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - Harrison, AR, Residential Housing
Local - 7.1% Facilities Board, Single Family Mortgage
Rev., FGIC, 7.4s, 2011 $4,000 $5,111,080
- -----------------------------------------------------------------------------------------------------------------------------
Jefferson County, AR, Health Care &
Residential Facilities Board, 7.25s, 2011 135 135,575
- -----------------------------------------------------------------------------------------------------------------------------
Lonoke County, AR, Residential Housing
Facilities Board, FNMA, 7.9s, 2011 216 228,689
- -----------------------------------------------------------------------------------------------------------------------------
North Little Rock, AR, Residential Housing
Facilities Board, 0s, 2010 2,095 1,277,719
- -----------------------------------------------------------------------------------------------------------------------------
Pulaski County, AR, Public Facilities
Board Rev., Series C, FNMA, 0s, 2014 2,750 1,646,865
- -----------------------------------------------------------------------------------------------------------------------------
Sherwood, AR, Residential Housing,
Facilities Board Single Family Rev., MBIA,
7.5s, 2010(+++) 1,250 1,591,900
- -----------------------------------------------------------------------------------------------------------------------------
West Memphis, AR, Public Facilities Board,
Series 1, Class 2, AMBAC, 0s, 2011 1,090 666,393
- -----------------------------------------------------------------------------------------------------------------------------
$10,658,221
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - Arkansas Housing Development Agency,
State - 9.0% Single Family Mortgage Rev.,
8.375s, 2011 $1,000 $1,358,980
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas State Development Finance
Authority, 5.3s, 2023 890 924,087
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas State Development Finance
Authority, 5.85s, 2024 1,615 1,721,881
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas State Development Finance
Authority, Mortgage Backed Securities
Program, Series B, GNMA, 4.45s, 2034 1,935 1,987,264
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas State Development Finance
Authority, Mortgage Backed Securities
Program, Series C, GNMA, 5.35s, 2027 2,000 2,027,760
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas State Development Finance
Authority, Mortgage Backed Securities
Program, Series E, GNMA, 5.4s, 2034 1,000 1,017,340
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas State Development Finance
Authority, Single Family Mortgage Backed
Securities Program, Series B, GNMA, 6.7s, 2027 1,690 1,763,110
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas State Development Finance
Authority, Single Family Mortgage Rev.,
Series F, GNMA, 7.45s, 2027 488 501,174
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas State Development Finance
Authority Single Family, Mortgage Backed
Securities Program, Series B, 5s, 2029 335 334,497
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas State Develpment Finance
Authority, Single Family Housing, Mortgage
Backed, Series I, GNMA, 5.3s, 2033 805 815,554
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Housing Finance Authority,
Mortgage Backed Securities, Series A,
4.375s, 2017 1,000 1,002,300
- -----------------------------------------------------------------------------------------------------------------------------
$13,453,947
- -----------------------------------------------------------------------------------------------------------------------------
State and Local Arkansas Development Finance Authority,
Appropriation - 2.4% Series 1, 0s, 2011 $1,245 $686,381
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas Development Finance Authority,
Series B, AMBAC, 5.8s, 2020 500 543,590
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas Development Finance Authority,
Economic Development Rev., ADFA Guaranty
Program, Series B, 5s, 2018 175 179,473
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority
Rev., Refunding Government Facilities
Series F, XLCA, 5.25s, 2025 2,000 2,212,900
- -----------------------------------------------------------------------------------------------------------------------------
$3,622,344
- -----------------------------------------------------------------------------------------------------------------------------
Student Loan Revenue - 1.4% Arkansas Student Loan Authority Rev.,
Series B, 6.25s, 2010 $2,000 $2,120,700
- -----------------------------------------------------------------------------------------------------------------------------
Tax - Other - 3.0% Little Rock, AR, Hotel & Restaurant, Gross
Receipts Tax Rev., 7.375s, 2015 $2,790 $3,541,459
- -----------------------------------------------------------------------------------------------------------------------------
Virgin Islands, Public Finance Authority
Rev., Series A, 5.5s, 2022 1,000 1,020,260
- -----------------------------------------------------------------------------------------------------------------------------
$4,561,719
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco - 0.2% Childrens Trust Fund, Settlement Rev.,
5.375s, 2033 $245 $218,937
- -----------------------------------------------------------------------------------------------------------------------------
Toll Roads - 0.4% Puerto Rico Commonwealth Highway, Series
G, FGIC, 5s, 2022 $500 $525,340
- -----------------------------------------------------------------------------------------------------------------------------
Transportation - Special Commonwealth of Puerto Rico, Highway &
Tax - 3.4% Transportation Authority, Series B, MBIA,
5.875s, 2021 $2,000 $2,288,580
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway &
Transportation Rev., Series G, 5s, 2023 750 764,085
- -----------------------------------------------------------------------------------------------------------------------------
University Arkansas University Rev.,
Variable Facility (Fayetteville Campus),
FGIC, 5.5s, 2016 1,765 2,010,600
- -----------------------------------------------------------------------------------------------------------------------------
$5,063,265
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Colleges - 7.6% Arkansas State University, Student Fee-ASU
Newport Campus, AMBAC, 5s, 2028 $700 $706,797
- -----------------------------------------------------------------------------------------------------------------------------
Conway, AR, Public Facilities Rev.
(Hendrix College), 5.85s, 2016 1,000 1,071,840
- -----------------------------------------------------------------------------------------------------------------------------
Siloam Springs, AR, Public Education
Facilities (John Brown University), AMBAC,
5.35s, 2020 500 537,470
- -----------------------------------------------------------------------------------------------------------------------------
University Arkansas University Rev., FGIC,
5s, 2021 1,000 1,049,520
- -----------------------------------------------------------------------------------------------------------------------------
University Arkansas University Rev.,
Various Facility (Fayetteville Campus),
FGIC, 5.5s, 2020 2,870 3,179,788
- -----------------------------------------------------------------------------------------------------------------------------
University Arkansas University Rev.,
Various Facility (Fayetteville Campus),
FGIC, 5s, 2027 2,000 2,046,120
- -----------------------------------------------------------------------------------------------------------------------------
University Arkansas University Rev.,
Various Facility (Fayetteville Campus),
FGIC, 5s, 2032 500 510,030
- -----------------------------------------------------------------------------------------------------------------------------
University Arkansas University Rev.,
Various Facility (Fayetteville Campus),
Series A, FSA, 5s, 2008 1,035 1,168,401
- -----------------------------------------------------------------------------------------------------------------------------
University of Central Arkansas, Series A,
AMBAC, 5s, 2023 1,100 1,126,565
- -----------------------------------------------------------------------------------------------------------------------------
$11,396,531
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Arkansas State University, Housing
Dormatories - 2.2% Systems, AMBAC, 5.15s, 2021 $1,240 $1,300,673
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas Tech University, Housing Systems,
AMBAC, 5.2s, 2026 1,000 1,040,170
- -----------------------------------------------------------------------------------------------------------------------------
Pope County, AR, Residential Housing
Facilities Board (Arkansas Tech
University), 6s, 2027 1,000 980,170
- -----------------------------------------------------------------------------------------------------------------------------
$3,321,013
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Investor Jefferson County, AR, Pollution Control
Owned - 0.7% Rev. (Arkansas Power & Light Co.),
6.3s, 2018 $1,050 $1,079,001
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Municipal Benton, AR, Utilities Rev., AMBAC, 5s,
Owned - 7.5% 2030 $470 $479,908
- -----------------------------------------------------------------------------------------------------------------------------
North Little Rock, AR, Electric Rev.,
Series A, MBIA, 6.5s, 2010 2,000 2,388,200
- -----------------------------------------------------------------------------------------------------------------------------
North Little Rock, AR, Electric Rev.,
Series A, MBIA, 6.5s, 2015 6,000 7,353,960
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority,
Series NN, 5.125s, 2024 1,000 1,022,170
- -----------------------------------------------------------------------------------------------------------------------------
$11,244,238
- -----------------------------------------------------------------------------------------------------------------------------
Water and Sewer Utility Revenue - Arkansas Community Public Water Systems,
20.1% Series B, MBIA, 5s, 2017 $1,400 $1,498,770
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas State Development Finance
Authority, Economic Development Rev.,
Series I, AMBAC, 5.65s, 2014 375 407,074
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas State Development Finance
Authority Waste, Revolving Loan Fund,
Series A, 5.85s, 2006(+++) 2,130 2,404,429
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas State Development Finance
Authority Waste, Revolving Loan Fund,
Series A, 5s, 2011 1,000 1,117,270
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas State Development Finance
Authority Waste, Revolving Loan Fund,
Series A, 5s, 2012 1,500 1,684,365
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas State Development Finance
Authority Waste, Revolving Loan Fund,
Series A, 5.5s, 2015 1,500 1,738,170
- -----------------------------------------------------------------------------------------------------------------------------
Arkansas State Development Finance
Authority Waste, Revolving Loan Fund,
Series A, 5.5s, 2018 1,750 2,050,528
- -----------------------------------------------------------------------------------------------------------------------------
Beaver, AR, Water District Rev., AMBAC,
5s, 2016 2,400 2,592,072
- -----------------------------------------------------------------------------------------------------------------------------
Beaver, AR, Water District Rev., AMBAC,
5s, 2017 1,000 1,071,310
- -----------------------------------------------------------------------------------------------------------------------------
Fort Smith, AR, Water & Sewer Rev., MBIA,
6s, 2004(+++) 2,250 2,328,885
- -----------------------------------------------------------------------------------------------------------------------------
Fort Smith, AR, Water & Sewer Rev., FSA,
5s, 2008 1,000 1,124,950
- -----------------------------------------------------------------------------------------------------------------------------
Fort Smith, AR, Water & Sewer Rev., AMBAC,
5.65s, 2019 1,000 1,111,240
- -----------------------------------------------------------------------------------------------------------------------------
Fort Smith, AR, Water & Sewer Rev., FSA,
5.25s, 2020 1,315 1,425,131
- -----------------------------------------------------------------------------------------------------------------------------
Fort Smith, AR, Water & Sewer Rev.,
Refunding & Construction, Series A, FSA,
5s, 2019 2,125 2,241,195
- -----------------------------------------------------------------------------------------------------------------------------
Fort Smith, AR, Water & Sewer Rev.,
Refunding & Construction, Series A, FSA,
5s, 2021 2,250 2,345,040
- -----------------------------------------------------------------------------------------------------------------------------
Little Rock, AR, Sewer Rev., Refunding &
Construction, 5s, 2022 1,750 1,795,605
- -----------------------------------------------------------------------------------------------------------------------------
Paragould, AR, Water & Sewer Rev., AMBAC,
5.6s, 2020 765 844,070
- -----------------------------------------------------------------------------------------------------------------------------
South Sebastian County, AR, Water Users
Assn., MBIA, 5s, 2038 1,000 1,006,120
- -----------------------------------------------------------------------------------------------------------------------------
Virgin Islands Water & Power Authority
Rev., ASST GTY, 5.3s, 2018 1,250 1,351,412
- -----------------------------------------------------------------------------------------------------------------------------
$30,137,636
- -----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Identified Cost, $133,961,969) $147,079,587
- -----------------------------------------------------------------------------------------------------------------------------
Floating Rate Demand Notes - 1.2%
- -----------------------------------------------------------------------------------------------------------------------------
Jackson County, MS, Pollution Control Rev.
Chevron USA, Inc., due 10/01/03 $150 $150,000
- -----------------------------------------------------------------------------------------------------------------------------
New Castle, PA, Area Hospital Authority
Jameson Memorial Hospital,
due 10/01/03 300 300,000
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Municipal Water & Sewer
Finance Authority Rev.,
due 10/01/03 700 700,000
- -----------------------------------------------------------------------------------------------------------------------------
Pinellas County, FL, Health Facility
Authority, Pooled Hospital Loan Program,
due 10/01/03 700 700,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Floating Rate Demand Notes (Identified Cost, $1,850,000) $1,850,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $135,811,969) $148,929,587
- -----------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 0.7% 1,046,615
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - 100.0% $149,976,202
- -----------------------------------------------------------------------------------------------------------------------------
See portfolio footnotes and notes to financial statements.
- -----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited) - 9/30/03 MFS(R) CALIFORNIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------------------------------------------------------
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset
classes.
Municipal Bonds - 98.6%
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
ISSUER (000 Omitted) $ VALUE
- -----------------------------------------------------------------------------------------------------------------------------
Airport and Port Revenue - 5.8% Long Beach, CA, Harbor Rev., FGIC, 6s, 2017 $2,570 $3,054,471
- -----------------------------------------------------------------------------------------------------------------------------
Long Beach, CA, Harbor Rev., FGIC, 5.25s, 2018 3,500 3,759,735
- -----------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA, Department of Airport
Rev. (Ontario International Airport),
FGIC, 6s, 2017 4,100 4,453,748
- -----------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA, Harbor Department Rev.,
5.375s, 2023 3,000 3,071,160
- -----------------------------------------------------------------------------------------------------------------------------
Port Oakland, CA, Port Rev., "K", FGIC,
5.75s, 2020 4,000 4,367,200
- -----------------------------------------------------------------------------------------------------------------------------
San Francisco, CA, City & County Airport
Commission, International Airport Rev.,
FSA, 5s, 2018 3,000 3,106,650
- -----------------------------------------------------------------------------------------------------------------------------
San Francisco, CA, City & County Airport
Commission, International Airport Rev.,
FGIC, 6.5s, 2019 4,000 4,175,920
- -----------------------------------------------------------------------------------------------------------------------------
$25,988,884
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - General Oakland, CA, Series A, Measure Dd, MBIA,
Purpose - 3.8% 5s, 2025 $2,845 $2,887,732
- -----------------------------------------------------------------------------------------------------------------------------
State of California, 10s, 2007 1,055 1,357,732
- -----------------------------------------------------------------------------------------------------------------------------
State of California, AMBAC, 7.2s, 2008 1,600 1,937,040
- -----------------------------------------------------------------------------------------------------------------------------
State of California, AMBAC, 6.3s, 2010 3,000 3,589,230
- -----------------------------------------------------------------------------------------------------------------------------
State of California, AMBAC, 7s, 2010 2,000 2,484,600
- -----------------------------------------------------------------------------------------------------------------------------
State of California, 5.5s, 2016 3,000 3,239,850
- -----------------------------------------------------------------------------------------------------------------------------
State of California, RITES, 10.139s, 2017(++)+ 1,250 1,523,375
- -----------------------------------------------------------------------------------------------------------------------------
$17,019,559
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Improvement
- - 2.9% Los Angeles, CA, RITES, 9.159s, 2014(++)+ $5,405 $6,852,891
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth, ROLS, Series II
R 124B, XLCA, 9.716s, 2017(++)+ 1,500 1,975,200
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth, ROLS, Series II
R 184C, FGIC, 8.639s, 2020(++)+ 3,300 4,416,456
- -----------------------------------------------------------------------------------------------------------------------------
$13,244,547
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Antelope Valley California Union High
Schools - 17.1% School, Series A, MBIA, 5s, 2027 $1,500 $1,518,960
- -----------------------------------------------------------------------------------------------------------------------------
Butte Glenn Community College, Series A,
MBIA, 5s, 2026 1,885 1,910,297
- -----------------------------------------------------------------------------------------------------------------------------
Campbell, CA (Union High School), FSA, 5s, 2021 1,280 1,327,002
- -----------------------------------------------------------------------------------------------------------------------------
Capistrano, CA, Unified School District,
FGIC, 5.875s, 2020 1,185 1,326,359
- -----------------------------------------------------------------------------------------------------------------------------
Centinela Valley California Union Hgh
School, Election 2000 Series C, FGIC,
5.2s, 2032 1,000 1,022,130
- -----------------------------------------------------------------------------------------------------------------------------
Chaffey California Union High School
District, Series C, FSA, 5s, 2027 1,000 1,012,390
- -----------------------------------------------------------------------------------------------------------------------------
Colton California Joint Unified School
District, Series A, FGIC, 5.375s, 2026 1,200 1,270,728
- -----------------------------------------------------------------------------------------------------------------------------
Coronada, CA, Unified School District,
5.7s, 2020 1,285 1,412,806
- -----------------------------------------------------------------------------------------------------------------------------
Escondido California Union School
District, Series A, FSA, 5s, 2026 1,000 1,012,220
- -----------------------------------------------------------------------------------------------------------------------------
Fresno, CA, Unified School District, MBIA,
5.9s, 2019 1,960 2,326,304
- -----------------------------------------------------------------------------------------------------------------------------
Glendale, CA, Unified School District,
FSA, 5.5s, 2018 4,275 4,714,769
- -----------------------------------------------------------------------------------------------------------------------------
Inglewood, CA, Unified School District,
FGIC, 6s, 2019 1,695 1,942,911
- -----------------------------------------------------------------------------------------------------------------------------
Little Lake, CA, City School District,
FSA, 6.125s, 2025 1,035 1,166,517
- -----------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA, Unified School District,
Election Of 1997, Series E, MBIA, 5.125s, 2027 5,000 5,126,300
- -----------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA, Unified School District,
RITES, Pennsylvania 1115, FSA,
9.159s, 2020(++)+ 5,000 5,761,400
- -----------------------------------------------------------------------------------------------------------------------------
Manhattan Beach, CA, Election Of 2000,
FGIC, 5.625s, 2018 2,165 2,434,737
- -----------------------------------------------------------------------------------------------------------------------------
Manhattan Beach, CA, Election Of 2000,
FGIC, 5.625s, 2019 1,405 1,569,849
- -----------------------------------------------------------------------------------------------------------------------------
Manhattan Beach, CA, Election Of 2000,
FGIC, 0s, 2020 2,415 1,049,366
- -----------------------------------------------------------------------------------------------------------------------------
Montebello, CA, Unified School District,
FSA, 5s, 2019 1,135 1,198,197
- -----------------------------------------------------------------------------------------------------------------------------
Morgan Hill, CA, Unified School District,
FGIC, 5.5s, 2020 2,545 2,768,095
- -----------------------------------------------------------------------------------------------------------------------------
Oceanside, CA, Unified School District,
Election Of 2000, Series C, MBIA,
5.25s, 2032 1,940 2,003,904
- -----------------------------------------------------------------------------------------------------------------------------
Oxnard, CA, Union High School District,
Refunding Series A, MBIA, 5.8s, 2018 575 677,994
- -----------------------------------------------------------------------------------------------------------------------------
Rowland, CA, Unified School District, FSA,
5.5s, 2020 1,250 1,360,650
- -----------------------------------------------------------------------------------------------------------------------------
Sacramento, CA, School District, 5.875s, 2020(+++) 2,075 2,504,608
- -----------------------------------------------------------------------------------------------------------------------------
San Diego, CA, Unified School District,
Series C, FSA, 5s, 2026 2,150 2,178,638
- -----------------------------------------------------------------------------------------------------------------------------
San Gabriel, CA, Unified School District,
Series A, FSA, 5s, 2024 2,000 2,033,080
- -----------------------------------------------------------------------------------------------------------------------------
San Jose & Evergreen, CA, FGIC, 5.5s, 2020 1,425 1,540,396
- -----------------------------------------------------------------------------------------------------------------------------
San Ysidro, CA, School District, AMBAC,
6.125s, 2021 960 1,108,080
- -----------------------------------------------------------------------------------------------------------------------------
Santa Clara, CA, Unified School District,
FGIC, 5.5s, 2019 2,210 2,415,530
- -----------------------------------------------------------------------------------------------------------------------------
Santa Maria, CA (Joint Union High School),
FSA, 5.375s, 2020 1,120 1,228,315
- -----------------------------------------------------------------------------------------------------------------------------
Santa Maria, CA (Joint Union High School),
FSA, 5.375s, 2021 1,210 1,307,441
- -----------------------------------------------------------------------------------------------------------------------------
Sweetwater, CA (Union High School), FSA,
5s, 2020 1,715 1,806,015
- -----------------------------------------------------------------------------------------------------------------------------
Sweetwater, CA (Union High School), FSA,
5s, 2021 2,750 2,862,117
- -----------------------------------------------------------------------------------------------------------------------------
Tehachapi, CA, Unified School District,
FGIC, 5.625s, 2020 1,100 1,210,242
- -----------------------------------------------------------------------------------------------------------------------------
Visalia, CA, Utility Systems Department,
Certificates of Participation, MBIA,
0s, 2005 4,655 4,510,928
- -----------------------------------------------------------------------------------------------------------------------------
Vista, CA, Unified School District, Series
A, FSA, 5s, 2023 3,000 3,067,020
- -----------------------------------------------------------------------------------------------------------------------------
Walnut Valley, CA, AMBAC, 6s, 2011 1,600 1,930,112
- -----------------------------------------------------------------------------------------------------------------------------
Washington, CA, Unified School District,
FGIC, 5.625s, 2021 1,000 1,102,250
- -----------------------------------------------------------------------------------------------------------------------------
$76,718,657
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Long Term California Health Facilities Financing,
Care - 0.6% Insured NCROC Paradise Valley Estates,
5.125s, 2022 $1,000 $976,080
- -----------------------------------------------------------------------------------------------------------------------------
Louisiana Verne, CA, Certificates
Participation, Brethren Hillcrest Homes,
B, 6.625s, 2025 1,000 1,012,150
- -----------------------------------------------------------------------------------------------------------------------------
Millbrae, CA, Residential Facilities Rev.
(Magnolia of Millbrae), 7.375s, 2027 490 508,713
- -----------------------------------------------------------------------------------------------------------------------------
$2,496,943
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Abag, CA, Public Finance Authority Rev.
Other - 0.5% (Rhoda Haas Goldman Plaza), CALIF HL,
5.125s, 2015 $2,000 $2,087,400
- -----------------------------------------------------------------------------------------------------------------------------
Health/Hospitals - 7.5% Abag Finance Authority, San Diego Hospital
Associates, Series C, 5.375s, 2020 $1,000 $992,600
- -----------------------------------------------------------------------------------------------------------------------------
California Health Facilities Financing
Authority Rev., 5.25s, 2018 1,000 1,026,900
- -----------------------------------------------------------------------------------------------------------------------------
California Health Facilities Financing
Authority Rev., Health Facility Adventist
Health Systems, A, 5s, 2033 2,000 1,888,920
- -----------------------------------------------------------------------------------------------------------------------------
California Statewide Community Development
Authority (Children's Hospital Los
Angeles), 5.125s, 2019 4,000 4,121,760
- -----------------------------------------------------------------------------------------------------------------------------
California Statewide Community Development
Authority (St. Joseph's Hospital), 6.625s,
2021(+++) 2,000 2,124,460
- -----------------------------------------------------------------------------------------------------------------------------
California Statewide Community Development
Authority, Certificates of Participation,
California Health Facilities Construction
Loan Program, 0s, 2007 3,645 3,348,370
- -----------------------------------------------------------------------------------------------------------------------------
California Statewide Community Development
Authority, Certificates of Participation,
California Health Facilities Construction
Loan Program, 0s, 2008 6,345 5,626,365
- -----------------------------------------------------------------------------------------------------------------------------
California Statewide Community Development
Authority, Health Facility Memorial Health
Services, Series A, 6s, 2023 1,500 1,587,585
- -----------------------------------------------------------------------------------------------------------------------------
California Statewide Community Development
Authority, Kaiser Permanente, Series A,
5.5s, 2032 2,000 2,029,200
- -----------------------------------------------------------------------------------------------------------------------------
California Statewide Community Development
Authority, Series B, 5.625s, 2042 4,000 4,097,840
- -----------------------------------------------------------------------------------------------------------------------------
California Statewide Community Development
Authority Rev. (Henry Mayo Newhall
Memorial Hospital), 5s, 2018 2,000 2,030,520
- -----------------------------------------------------------------------------------------------------------------------------
Central California Joint Powers Health
Financing, Community Hospitals of Central
California, 5.625s, 2021 1,000 1,006,340
- -----------------------------------------------------------------------------------------------------------------------------
Corona, CA, Certificates of Participation
(Corona Community Hospital),
8s, 2015(+++) 585 642,231
- -----------------------------------------------------------------------------------------------------------------------------
Riverside County, CA (Riverside County
Hospital), MBIA, 5s, 2019 1,000 1,046,900
- -----------------------------------------------------------------------------------------------------------------------------
Tahoe Forest, CA, Hospital District Rev.,
5.85s, 2022 1,000 1,016,080
- -----------------------------------------------------------------------------------------------------------------------------
Washington Township, CA, Health Care Rev.,
5s, 2018 1,000 1,008,300
- -----------------------------------------------------------------------------------------------------------------------------
$33,594,371
- -----------------------------------------------------------------------------------------------------------------------------
Human Services - 0.4% California Statewide Community Development
Authority, 7.125s, 2016 $1,900 $1,916,549
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - California Pollution Control Financing
Environmental Services - 0.7% Authority, Pollution Control Rev.
(Laidlaw, Inc.), 6.7s, 2007** $2,750 $123,750
- -----------------------------------------------------------------------------------------------------------------------------
California Pollution Control Financing
Authority, Solid Waste Disposal Rev.
(Browning Ferris, Inc.), 5.8s, 2016 2,000 1,819,420
- -----------------------------------------------------------------------------------------------------------------------------
California Statewide Communities, Solid
Waste Disposal Rev. (Republic Services,
Inc.), 4.95s, 2012 1,000 1,002,560
- -----------------------------------------------------------------------------------------------------------------------------
$2,945,730
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - California Pollution Control, Financing
Other - 0.2% Authority Rev. (Frito-Lay, Inc.),
6.375s, 2004 $1,025 $1,033,907
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Los Angeles County, CA, Certificates,
Paper - 1.1% Antelope Valley Courthouse Set A, AMBAC,
5.25s, 2027 $3,000 $3,099,990
- -----------------------------------------------------------------------------------------------------------------------------
Sacramento, CA, City Financing Authority,
City Hall & Redevelopment Projects, Series
A, FSA, 5s, 2032 2,000 2,016,400
- -----------------------------------------------------------------------------------------------------------------------------
$5,116,390
- -----------------------------------------------------------------------------------------------------------------------------
Miscellaneous Revenue -
Entertainment & Tourism - 0.6% DelMar, CA, Race Track Authority, 6.2s, 2011 $1,365 $1,472,958
- -----------------------------------------------------------------------------------------------------------------------------
DelMar, CA, Race Track Authority, 6.45s, 2013 1,350 1,353,361
- -----------------------------------------------------------------------------------------------------------------------------
$2,826,319
- -----------------------------------------------------------------------------------------------------------------------------
Miscellaneous Revenue - California Infrastructure & Economic
Other - 1.7% Development, MBIA, 5.5s, 2019 $1,000 $1,095,170
- -----------------------------------------------------------------------------------------------------------------------------
California State Department Water
Resources, Series A, XLCA, 5.375s, 2017 3,000 3,289,320
- -----------------------------------------------------------------------------------------------------------------------------
South Coast Air Quality Management
District Rev., AMBAC, 0s, 2005 3,480 3,388,685
- -----------------------------------------------------------------------------------------------------------------------------
$7,773,175
- -----------------------------------------------------------------------------------------------------------------------------
Multi-Family Housing California Housing Finance Agency Rev.,
Revenue - 3.5% 6.7s, 2015 $2,750 $2,782,835
- -----------------------------------------------------------------------------------------------------------------------------
California Statewide Community Development
Authority Rev. (Irvine Apartments), 1s, 2025 6,000 6,377,700
- -----------------------------------------------------------------------------------------------------------------------------
California Statewide Community Development
Authority Rev. (Irvine Apartments), 5.1s, 2025 2,000 2,124,820
- -----------------------------------------------------------------------------------------------------------------------------
Palmdale, CA, Multi-Family Housing Rev.,
FNMA, 7.375s, 2024 1,000 1,024,810
- -----------------------------------------------------------------------------------------------------------------------------
San Bernardino County, CA, Housing
Authority Rev. (Equity Residential
Redlands), 1s, 2029 3,000 3,222,810
- -----------------------------------------------------------------------------------------------------------------------------
$15,532,975
- -----------------------------------------------------------------------------------------------------------------------------
Parking - 0.3% San Francisco, CA, Union Square, MBIA, 6s, 2020 $1,000 $1,148,360
- -----------------------------------------------------------------------------------------------------------------------------
Sales and Excise Tax Contra Costa, CA, Sales Tax Rev., 6.875s,
Revenue - 0.3% 2007 $1,350 $1,505,196
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - California Rural Home Mortgage Finance
Local - 1.3% Authority Rev., GNMA, 6.35s, 2029 $335 $345,405
- -----------------------------------------------------------------------------------------------------------------------------
California Rural Home Mortgage Finance
Authority Rev., GNMA, 7.3s, 2031 280 307,709
- -----------------------------------------------------------------------------------------------------------------------------
Pomona, CA, Single Family Mortgage Rev.,
GNMA, 7.375s, 2010 1,805 2,145,676
- -----------------------------------------------------------------------------------------------------------------------------
Pomona, CA, Single Family Mortgage Rev.,
GNMA, 7.5s, 2023 2,000 2,822,240
- -----------------------------------------------------------------------------------------------------------------------------
San Bernardino County, CA, Single Family
Mortgage Rev., GNMA, 7.375s, 2020 180 187,668
- -----------------------------------------------------------------------------------------------------------------------------
San Bernardino County, CA, Single Family
Mortgage Rev., GNMA, 7.65s, 2023 20 20,552
- -----------------------------------------------------------------------------------------------------------------------------
$5,829,250
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - California Housing Finance Agency Rev.,
State - 1.0% Home Mortgage, FSA, 0s, 2019 $5,095 $1,997,291
- -----------------------------------------------------------------------------------------------------------------------------
California Housing Finance Agency Rev.,
Home Mortgage, MBIA, 0s, 2028 8,855 2,514,908
- -----------------------------------------------------------------------------------------------------------------------------
$4,512,199
- -----------------------------------------------------------------------------------------------------------------------------
Solid Waste Revenue - 1.1% California Pollution Control Financing
Authority, Solid Waste Disposal Rev.
(West Co. Resource Recovery), 5.125s, 2014 $1,000 $1,024,930
- -----------------------------------------------------------------------------------------------------------------------------
South Bayside Waste Management, Solid
Waste Systems Rev., AMBAC,
5.75s, 2020 2,100 2,338,917
- -----------------------------------------------------------------------------------------------------------------------------
Sunnyvale, CA, Solid Waste Revenue,
Refunding, AMBAC, 5.5s, 2016 790 872,136
- -----------------------------------------------------------------------------------------------------------------------------
Sunnyvale, CA, Solid Waste Revenue,
Refunding, AMBAC, 5.5s, 2017 690 755,247
- -----------------------------------------------------------------------------------------------------------------------------
$4,991,230
- -----------------------------------------------------------------------------------------------------------------------------
State and Local Anaheim, CA, Public Finance Authority
Appropriation - 13.3% Rev., FSA, 6s, 2024 $1,000 $1,178,000
- -----------------------------------------------------------------------------------------------------------------------------
Banning, CA, Certificates of
Participation, Water System Improvement,
AMBAC, 8s, 2019 1,000 1,344,560
- -----------------------------------------------------------------------------------------------------------------------------
California Public Works Board, Department
of Corrections, 7.4s, 2010 5,000 6,223,150
- -----------------------------------------------------------------------------------------------------------------------------
California Public Works Board, Department
of Justice, 5.25s, 2020 1,565 1,614,971
- -----------------------------------------------------------------------------------------------------------------------------
Fortuna, Parlier & Susanville, CA,
Certificates of Participation, "B",
7.375s, 2017 720 737,921
- -----------------------------------------------------------------------------------------------------------------------------
Golden State Tobacco Securitizations,
Enhanced Series B, 5.625s, 2038 5,000 4,929,450
- -----------------------------------------------------------------------------------------------------------------------------
Grossmont, CA, Union High School District,
Certificates of Participation, MBIA, 0s, 2006 6,000 5,686,380
- -----------------------------------------------------------------------------------------------------------------------------
Los Angeles County, CA, Public Works,
AMBAC, 5.5s, 2020 2,970 3,235,964
- -----------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA, Convention & Exhibition
Center Authority, Certificates of
Participation, AMBAC, 0s, 2005 2,400 2,335,704
- -----------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA, Convention & Exhibition
Center Authority, Certificates of
Participation, 9s, 2010(+++) 1,900 2,217,395
- -----------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA Certificates
Participation, Real Property Program AQ,
AMBAC, 5.3s, 2027 3,000 3,159,780
- -----------------------------------------------------------------------------------------------------------------------------
Pasadena, CA, Certificates of
Participation (Pasadena Parking
Facilities), 6.25s, 2018 3,460 4,038,754
- -----------------------------------------------------------------------------------------------------------------------------
Pomona, CA, Public Financing Authority
Rev., 6.25s, 2010 4,020 4,620,266
- -----------------------------------------------------------------------------------------------------------------------------
Sacramento County, CA, Certificates of
Participation, AMBAC, 5.75s, 2018 1,500 1,692,645
- -----------------------------------------------------------------------------------------------------------------------------
Sacramento, CA, City Financing Authority,
5.5s, 2021 1,635 1,750,889
- -----------------------------------------------------------------------------------------------------------------------------
Salinas, CA, 5.7s, 2028 2,200 2,299,330
- -----------------------------------------------------------------------------------------------------------------------------
San Francisco California City & County,
San Bruno Jail Number 3, AMBAC, 5.25s, 2033 3,930 4,047,939
- -----------------------------------------------------------------------------------------------------------------------------
Santa Ana, CA, Financing Authority Rev.
(South Harbor Boulevard), MBIA, 5.125s, 2019 4,815 5,145,309
- -----------------------------------------------------------------------------------------------------------------------------
Sweetwater, CA, Union High School, FSA,
5s, 2022 3,495 3,618,478
- -----------------------------------------------------------------------------------------------------------------------------
$59,876,885
- -----------------------------------------------------------------------------------------------------------------------------
Tax Assessment - 7.2% Brea, CA, Public Finance Authority Rev.,
MBIA, 0s, 2005 $2,235 $2,176,353
- -----------------------------------------------------------------------------------------------------------------------------
Brea, CA, Public Finance Authority Rev.,
MBIA, 0s, 2006 2,415 2,300,191
- -----------------------------------------------------------------------------------------------------------------------------
Chico, CA, Public Financing Authority
Rev., MBIA, 5s, 2018 1,000 1,061,280
- -----------------------------------------------------------------------------------------------------------------------------
Chico, CA, Public Financing Authority
Rev., MBIA, 5s, 2019 1,365 1,438,642
- -----------------------------------------------------------------------------------------------------------------------------
Concord, CA, Redevelopment Agency, Tax
Allocation, MBIA, 8s, 2018 40 40,635
- -----------------------------------------------------------------------------------------------------------------------------
Duarte, CA, Redevelopment Agency, 6.7s, 2014 650 713,128
- -----------------------------------------------------------------------------------------------------------------------------
Fontana, CA, Redevelopment Agency (Jurupa
Hills), 5.5s, 2027 3,350 3,314,959
- -----------------------------------------------------------------------------------------------------------------------------
La Mirada, CA, Redevelopment Agency, 5.7s, 2020 1,500 1,485,675
- -----------------------------------------------------------------------------------------------------------------------------
Modesto, CA, Irrigation District, 5.3s, 2022 1,845 1,846,771
- -----------------------------------------------------------------------------------------------------------------------------
Modesto, CA, Public Financing Authority
(John Thurman Field Renovation), 6.125s, 2016 1,470 1,573,621
- -----------------------------------------------------------------------------------------------------------------------------
Orange County, CA, Community Facilities
District (Rancho Santa Margarita), 5.55s, 2017 1,000 1,005,890
- -----------------------------------------------------------------------------------------------------------------------------
Pomona, CA, Public Financing Authority,
5.75s, 2020(+++) 505 522,973
- -----------------------------------------------------------------------------------------------------------------------------
Pomona, CA, Public Financing Authority,
5.75s, 2020 1,140 1,172,490
- -----------------------------------------------------------------------------------------------------------------------------
Poway, CA, Community Facilities District,
6.5s, 2010 715 773,308
- -----------------------------------------------------------------------------------------------------------------------------
Poway, CA, Community Facilities District,
6.75s, 2015 1,775 1,909,918
- -----------------------------------------------------------------------------------------------------------------------------
Riverside County, CA, Public Financing
Authority, 5.25s, 2016 3,120 3,212,695
- -----------------------------------------------------------------------------------------------------------------------------
San Diego, CA, Redevelopment Agency,
AMBAC, 5.3s, 2020 1,250 1,341,850
- -----------------------------------------------------------------------------------------------------------------------------
Torrance, CA, Redevelopment Agency, MBIA,
5.45s, 2018 5,740 6,379,953
- -----------------------------------------------------------------------------------------------------------------------------
$32,270,332
- -----------------------------------------------------------------------------------------------------------------------------
Tax - Other - 2.7% Glendale, CA, Redevelopment Agency Tax
Allocation, Central Glendale Redevelopment
Project, MBIA, 5.25s, 2021 $2,605 $2,790,658
- -----------------------------------------------------------------------------------------------------------------------------
Irvine, CA, School District, AMBAC, 5.8s, 2020 3,500 3,949,855
- -----------------------------------------------------------------------------------------------------------------------------
Santa Cruz County, CA, Redevelopment
Agency (Oak/Soquel Community), 5.6s, 2017 1,455 1,567,239
- -----------------------------------------------------------------------------------------------------------------------------
Virgin Islands, Public Finance Authority
Rev., Series A, 5.5s, 2022 2,000 2,040,520
- -----------------------------------------------------------------------------------------------------------------------------
Virgin Islands Public Finance Authority
Rev., 5.875s, 2018 1,600 1,648,800
- -----------------------------------------------------------------------------------------------------------------------------
$11,997,072
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco - 0.7% Golden State Tobacco Securitization, Asset
Backed, Series A 1, 6.25s, 2033 $800 $693,248
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco Securitization Authority, 5s, 2028 1,500 1,199,955
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco Securitization Authority, 5.25s, 2031 1,500 1,178,655
- -----------------------------------------------------------------------------------------------------------------------------
$3,071,858
- -----------------------------------------------------------------------------------------------------------------------------
Toll Roads - 0.6% Foothill/Eastern Transportation Corridor
Agency, CA, 0s, 2011(+++) $2,500 $2,889,975
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Colleges - 6.9% California Education Facilities Authority
Rev., 6.625s, 2020 $1,000 $1,081,020
- -----------------------------------------------------------------------------------------------------------------------------
California Education Facilities Authority
Rev. (College & University), 6s, 2012 1,400 1,499,050
- -----------------------------------------------------------------------------------------------------------------------------
California Education Facilities Authority
Rev. (College & University), 6.3s, 2021 1,000 1,073,380
- -----------------------------------------------------------------------------------------------------------------------------
California Education Facilities Authority
Rev. (Fresno Pacific University),
6.75s, 2019 2,000 2,176,660
- -----------------------------------------------------------------------------------------------------------------------------
California Education Facilities Authority
Rev. (L.A. College of Chiropractic),
5.6s, 2017 2,100 1,916,586
- -----------------------------------------------------------------------------------------------------------------------------
California Education Facilities Authority
Rev. (Loyola Marymount), MBIA,
0s, 2014(+++) 2,500 1,595,525
- -----------------------------------------------------------------------------------------------------------------------------
California Education Facilities Authority
Rev. (Pomona College), 5.875s, 2019 2,000 2,267,940
- -----------------------------------------------------------------------------------------------------------------------------
California Education Facilities Authority
Rev., Refunding, 5s, 2023 1,000 983,760
- -----------------------------------------------------------------------------------------------------------------------------
California Education Facilities Authority
Rev., Santa Clara University, Series A,
MBIA, 5s, 2027 1,340 1,354,619
- -----------------------------------------------------------------------------------------------------------------------------
California Infrastructure, Claremont
University Consortium, 5.125s, 2024 1,595 1,624,667
- -----------------------------------------------------------------------------------------------------------------------------
California Statewide Communities, Notre
Dame De Namur University,
6.625s, 2033 1,000 977,100
- -----------------------------------------------------------------------------------------------------------------------------
De Anza, CA, Community College, Electric
1999, Series B, FGIC, 0s, 2024 6,000 1,981,800
- -----------------------------------------------------------------------------------------------------------------------------
Foothill De Anza, CA, Community College,
Electric 1999, Series B, FGIC,
0s, 2025 1,500 466,800
- -----------------------------------------------------------------------------------------------------------------------------
Long Beach, CA, Industrial Development
Rev., 5.25s, 2023 1,450 1,427,308
- -----------------------------------------------------------------------------------------------------------------------------
San Diego County, CA (Burnham Institute),
6.25s, 2029 2,300 2,389,102
- -----------------------------------------------------------------------------------------------------------------------------
University of California Certificates
Participation, San Diego Campus Projects,
Series A, 5.25s, 2032 1,840 1,872,053
- -----------------------------------------------------------------------------------------------------------------------------
University of California Rev., RITES,
MBIA, 8.909s, 2016(++)+ 5,705 6,491,149
- -----------------------------------------------------------------------------------------------------------------------------
$31,178,519
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Secondary Schools California Statewide Community Development
- - 0.7% Authority (Escondido Charter High School),
7.5s, 2036 $1,000 $1,011,270
- -----------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA, Certificates of
Participation, 5.7s, 2018 1,900 1,987,742
- -----------------------------------------------------------------------------------------------------------------------------
$2,999,012
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Investor California Pollution Control Financing
Owned - 1.0% Authority, Pollution Control Rev. (Pacific
Gas & Electric Co.), MBIA, 5.35s, 2016 $3,500 $3,765,475
- -----------------------------------------------------------------------------------------------------------------------------
California Pollution Control Financing
Authority, Pollution Control Rev. (Pacific
Gas & Electric Co.), 5.85s, 2023 400 389,260
- -----------------------------------------------------------------------------------------------------------------------------
California Pollution Control Financing
Authority, Pollution Control Rev.
(Southern California Edison Co.), 6.4s, 2024 500 500,165
- -----------------------------------------------------------------------------------------------------------------------------
$4,654,900
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Municipal Glendale, CA, Electric Works Rev., MBIA,
Owned - 6.5% 5.75s, 2019 $1,420 $1,590,584
- -----------------------------------------------------------------------------------------------------------------------------
Glendale, CA, Electric Works Rev., MBIA,
5.75s, 2020 1,160 1,288,946
- -----------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA, Electric Plant Rev.,
MBIA, 4.75s, 2019 2,000 2,018,340
- -----------------------------------------------------------------------------------------------------------------------------
Northern California Power Agency, Public
Power Rev., 5.85s, 2010 880 994,787
- -----------------------------------------------------------------------------------------------------------------------------
Sacramento, CA, Power Authority, MBIA,
5.875s, 2015 5,500 6,160,880
- -----------------------------------------------------------------------------------------------------------------------------
San Diego, CA, Industrial Development Rev.
(San Diego Gas & Electric Co.), MBIA,
6.1s, 2018 6,000 6,080,160
- -----------------------------------------------------------------------------------------------------------------------------
Shasta, CA, Joint Powers Financing
Authority, County Administration Building
Project, A, MBIA, 5.25s, 2023 1,000 1,050,650
- -----------------------------------------------------------------------------------------------------------------------------
Southern California Public Power Authority
Rev. (Southern Transmission Project), 0s, 2005 4,205 4,099,623
- -----------------------------------------------------------------------------------------------------------------------------
Southern California Public Power
Transmission Rev., "A", 0s, 2005 3,795 3,719,859
- -----------------------------------------------------------------------------------------------------------------------------
Trinity County, CA, Public Utilities
District, Electric Distribution
Facilities, AMBAC, 5.5s, 2017 525 574,744
- -----------------------------------------------------------------------------------------------------------------------------
Trinity County, CA, Public Utilities
District, Electric Distribution
Facilities, AMBAC, 5.5s, 2018 555 600,371
- -----------------------------------------------------------------------------------------------------------------------------
Vernon, CA, Electric Systems Rev., Malburg
Generating Station Project,
5.5s, 2033 1,000 1,001,900
- -----------------------------------------------------------------------------------------------------------------------------
$29,180,844
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Other - 0.5% Virgin Islands Water & Power Authority,
5.125s, 2013 $1,000 $1,019,520
- -----------------------------------------------------------------------------------------------------------------------------
Virgin Islands Water & Power Authority,
5.3s, 2018 250 248,655
- -----------------------------------------------------------------------------------------------------------------------------
Virgin Islands Water & Power Authority
Rev., 5.5s, 2017 800 823,440
- -----------------------------------------------------------------------------------------------------------------------------
$2,091,615
- -----------------------------------------------------------------------------------------------------------------------------
Water and Sewer Utility Revenue - California State Department Water
8.1% Resources, Series X, FGIC, 5s, 2029 $2,000 $2,020,820
- -----------------------------------------------------------------------------------------------------------------------------
California State Department Water
Resources, Water Systems J 3 Prerefunded,
7s, 2012 405 521,502
- -----------------------------------------------------------------------------------------------------------------------------
California State Department Water
Resources, Water Systems J 3 Unrefunded,
7s, 2012 1,090 1,373,651
- -----------------------------------------------------------------------------------------------------------------------------
Castalic Lake Water Agency California
Rev., Water Systems Improvement Project,
AMBAC, 5.125s, 2030 1,725 1,750,013
- -----------------------------------------------------------------------------------------------------------------------------
Culver City, CA, Wastewater Facilities
Rev., FGIC, 5.6s, 2019 1,000 1,119,410
- -----------------------------------------------------------------------------------------------------------------------------
El Monte, CA, Water Authority Rev., AMBAC,
6s, 2019 1,065 1,225,506
- -----------------------------------------------------------------------------------------------------------------------------
Fairfield-Suisun, CA, Sewer District Rev.,
MBIA, 0s, 2006 2,080 1,992,203
- -----------------------------------------------------------------------------------------------------------------------------
Huntington Park, CA, 6.2s, 2025 2,000 2,039,000
- -----------------------------------------------------------------------------------------------------------------------------
Livermore Amador Valley Water Management,
Series A, AMBAC, 5s, 2031 4,875 4,912,586
- -----------------------------------------------------------------------------------------------------------------------------
Long Beach, CA, Water Rev., Refunding
Series A, MBIA, 5s, 2024 5,135 5,217,982
- -----------------------------------------------------------------------------------------------------------------------------
Mojave, CA, Water Agency, FGIC, 5.75s,
2015 2,625 2,962,759
- -----------------------------------------------------------------------------------------------------------------------------
San Diego, CA, Public Facilities Financing
Authority, Subordinated, MBIA,
5s, 2023 1,560 1,594,850
- -----------------------------------------------------------------------------------------------------------------------------
Southern California Metropolitan Water
District, RITES, 10.159s, 2018(++)+ 5,000 6,820,750
- -----------------------------------------------------------------------------------------------------------------------------
West Sacramento, CA, Financing Authority,
Water Systems Improvement Project, FGIC,
5s, 2032 2,750 2,776,180
- -----------------------------------------------------------------------------------------------------------------------------
$36,327,212
- -----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Identified Cost, $413,649,507) $442,819,865
- -----------------------------------------------------------------------------------------------------------------------------
Floating Rate Demand Notes - 1.0%
- -----------------------------------------------------------------------------------------------------------------------------
Bay Area Toll Authority, due 10/01/03 $100 $100,000
- -----------------------------------------------------------------------------------------------------------------------------
California Statewide Community Development
Authority, Sutter Health, due 10/01/03 400 400,000
- -----------------------------------------------------------------------------------------------------------------------------
MSR Public Power Agency, CA, due 10/01/03 3,900 3,900,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Floating Rate Demand Notes (Identified Cost, $4,400,000) $4,400,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $418,049,507) $447,219,865
- -----------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 0.4% 1,581,557
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - 100.0% $448,801,422
- -----------------------------------------------------------------------------------------------------------------------------
See portfolio footnotes and notes to financial statements.
- -----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited) - 9/30/03 MFS(R) FLORIDA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------------------------------------------------------
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset
classes.
Municipal Bonds - 94.7%
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
ISSUER (000 Omitted) $ VALUE
- -----------------------------------------------------------------------------------------------------------------------------
Airport and Port Florida Capital Projects Finance Authority
Revenue - 4.3% Rev., Series I, MBIA, 5s, 2020 $500 $520,760
- -----------------------------------------------------------------------------------------------------------------------------
Greater Orlando Aviation Authority Rev.,
Series A, FGIC, 5.25s, 2018 1,000 1,053,760
- -----------------------------------------------------------------------------------------------------------------------------
Hillsborough County, FL, Aviation
Authority Rev. (Tampa International
Airport), Series A, FGIC, 5.875s, 2015 750 820,268
- -----------------------------------------------------------------------------------------------------------------------------
Lee County, FL, Airport Rev., Series A,
FSA, 5.875s, 2018 1,000 1,111,330
- -----------------------------------------------------------------------------------------------------------------------------
Miami-Dade County, FL, Florida Aviation
Rev., Series C, MBIA, 5.25s, 2018 500 528,490
- -----------------------------------------------------------------------------------------------------------------------------
Pensacola, FL, Airport Rev., Series B,
MBIA, 5.625s, 2014 500 545,835
- -----------------------------------------------------------------------------------------------------------------------------
$4,580,443
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - General Florida Board of Public Education, Capital
Purpose - 5.6% Outlay, Series A, 5.25s, 2024 $1,000 $1,038,290
- -----------------------------------------------------------------------------------------------------------------------------
Miami-Dade County, FL, Educational
Facilities Authority, Series A, AMBAC,
5.5s, 2018 1,400 1,555,302
- -----------------------------------------------------------------------------------------------------------------------------
State of Florida, RITES, 8.639s, 2017(++)+ 3,000 3,370,560
- -----------------------------------------------------------------------------------------------------------------------------
$5,964,152
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Improvement Commonwealth of Puerto Rico, RITES, MBIA,
- - 3.0% 10.228s, 2019(++)+ $1,000 $1,364,460
- -----------------------------------------------------------------------------------------------------------------------------
Dade County, FL, AMBAC, 7.125s, 2015 1,380 1,812,299
- -----------------------------------------------------------------------------------------------------------------------------
$3,176,759
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Florida Board of Education, Capital
Schools - 5.7% Outlay, 9.125s, 2014 $400 $560,864
- -----------------------------------------------------------------------------------------------------------------------------
Florida Board of Education, Capital
Outlay, Unrefunded Balance, 9.125s, 2014 2,600 3,572,114
- -----------------------------------------------------------------------------------------------------------------------------
Osceola County, FL, School Board
Certificates, Series A, AMBAC, 5.25s, 2027 1,950 2,023,808
- -----------------------------------------------------------------------------------------------------------------------------
$6,156,786
- -----------------------------------------------------------------------------------------------------------------------------
Health/Hospitals - 15.5% Brevard County, FL, Health Facilities
Authority Rev. (Wuesthoff Memorial),
Series A, MBIA, 6.5s, 2007 $825 $836,038
- -----------------------------------------------------------------------------------------------------------------------------
Citrus County, FL, Hospital Development
Authority Rev. (Citrus Memorial Hospital),
6.25s, 2023 498 506,252
- -----------------------------------------------------------------------------------------------------------------------------
Denver, CO, Health & Hospital Auth. Rev.,
Series A, 6s, 2023 500 508,710
- -----------------------------------------------------------------------------------------------------------------------------
District of Columbia, Health & Hospital
Authority Rev. (Medstar University
Hospital), Series D, 6.875s, 2031 225 242,892
- -----------------------------------------------------------------------------------------------------------------------------
Highlands County, FL, Health Facilities
Authority Rev. (Adventist Health Systems),
5.25s, 2013 500 528,610
- -----------------------------------------------------------------------------------------------------------------------------
Hillsborough County, FL, Industrial
Development (Tampa General Hospital
Project), Series A, 5s, 2018 500 493,550
- -----------------------------------------------------------------------------------------------------------------------------
Hillsborough County, FL, Industrial
Development Rev. (University Community
Hospital), MBIA, 6.5s, 2019 1,000 1,265,810
- -----------------------------------------------------------------------------------------------------------------------------
Indiana Health Facility Financing
Authority (Munster Medical Research
Foundation, Inc.), 6.375s, 2031 500 501,540
- -----------------------------------------------------------------------------------------------------------------------------
Jacksonville, FL, Hospital Rev.
(University Medical Center), CONNIE LEE,
6.6s, 2013 500 506,125
- -----------------------------------------------------------------------------------------------------------------------------
Jacksonville, FL, Health Facilities,
Ascencion Health, Series A, 5.25s, 2032 1,000 1,010,760
- -----------------------------------------------------------------------------------------------------------------------------
Lakeland, FL, Hospital Systems Rev.,
Lakeland Regional Health Systems,
5.5s, 2032 1,000 1,008,260
- -----------------------------------------------------------------------------------------------------------------------------
Leesburg, FL, Hospital Rev. (Leesburg
Regional Medical Center Project),
5.5s, 2032 1,000 1,004,310
- -----------------------------------------------------------------------------------------------------------------------------
Marion County, FL, Hospital District Rev.,
5.5s, 2014 1,000 1,063,150
- -----------------------------------------------------------------------------------------------------------------------------
Marshall County, AL, Health Care, Series
A, 6.25s, 2022 500 530,805
- -----------------------------------------------------------------------------------------------------------------------------
Martin County, FL, Health Facilities
(Martin Memorial Medical Center), Series
B, 5.75s, 2022 500 499,475
- -----------------------------------------------------------------------------------------------------------------------------
New Hampshire Health & Educational
Facilities Rev., 6s, 2024 500 525,945
- -----------------------------------------------------------------------------------------------------------------------------
Orange County, FL, Health Facilities
Authority Rev. (Orlando Hospital Regional
Healthcare), 5.75s, 2032 1,000 1,024,630
- -----------------------------------------------------------------------------------------------------------------------------
Rhode Island Health & Education Building
Rev., Hospital Financing (Lifespan
Obligation Group), 6.5s, 2032 500 510,525
- -----------------------------------------------------------------------------------------------------------------------------
South Carolina Jobs & Economic Development
Authority (Bon Secours Health Systems,
Inc.), Series A, 5.625s, 2030 500 509,260
- -----------------------------------------------------------------------------------------------------------------------------
South Dakota Health & Education Facilities
Authority Rev. (Prairie Lakes Health Care
System), 5.625s, 2032 500 499,660
- -----------------------------------------------------------------------------------------------------------------------------
St. Petersburg, FL, Health Facilities
Authority (All Children Hospital), AMBAC,
5.5s, 2018 1,000 1,105,110
- -----------------------------------------------------------------------------------------------------------------------------
Steubenville, OH, Hospital Rev. (Trinity
Health), 6.375s, 2020 500 531,625
- -----------------------------------------------------------------------------------------------------------------------------
Tallahassee, FL, Health Facilities Rev.
(Tallahassee Memorial Healthcare),
6.25s, 2020 300 298,281
- -----------------------------------------------------------------------------------------------------------------------------
Tallahassee, FL, Health Facilities Rev.
(Tallahassee Memorial Regional Medical
Center), MBIA, 6.625s, 2013 1,000 1,077,310
- -----------------------------------------------------------------------------------------------------------------------------
$16,588,633
- -----------------------------------------------------------------------------------------------------------------------------
Human Services - 0.3% Orange County, FL, Health Facilities
Authority. Rev., 8.875s, 2021 $300 $300,435
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Brazos River Texas Harbor Navigation
Chemicals - 1.1% District (Dow Chemical Co. Project),
Series A7, 6.625s, 2033 $500 $534,500
- -----------------------------------------------------------------------------------------------------------------------------
Red River Authority of Texas, Pollution
Control Rev. (CNA Holdings, Inc.),
6.7s, 2030 375 398,576
- -----------------------------------------------------------------------------------------------------------------------------
Sweetwater County, WY, Solid Waste
Disposal Rev. (FMC Corp.), Series A,
7s, 2024 200 200,214
- -----------------------------------------------------------------------------------------------------------------------------
$1,133,290
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Nevada Department of Business (Republic
Environmental Services - 0.3% Services, Inc.), 5.625s, 2026 $300 $308,769
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Tooele County, UT, Hazardous Waste
Other - 0.5% Treatment Rev. (Union Pacific Corp.),
5.7s, 2026 $500 $506,170
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Delta County, MI, Economic Development
Paper - 2.1% Corp. Rev. (Mead Westvaco Escanaba),
Series A, 6.25s, 2027 $500 $514,050
- -----------------------------------------------------------------------------------------------------------------------------
Escambia County, FL, Industrial
Development Rev. (Champion International
Corp.), 6.8s, 2012 750 768,698
- -----------------------------------------------------------------------------------------------------------------------------
Escambia County, FL, Pollution Control
Rev. (Champion International Corp.),
6.95s, 2012 1,000 1,013,180
- -----------------------------------------------------------------------------------------------------------------------------
$2,295,928
- -----------------------------------------------------------------------------------------------------------------------------
Miscellaneous Revenue - Capital Trust Agency of Florida Rev.
Entertainment & Tourism - 1.8% (Seminole Tribe Convention), 10s, 2033 $200 $235,586
- -----------------------------------------------------------------------------------------------------------------------------
Clearwater, FL, Rev. (Spring Training
Facility), MBIA, 5.375s, 2020 555 631,057
- -----------------------------------------------------------------------------------------------------------------------------
Palm Beach County, FL, Industrial
Development Rev. (South Florida Fair
Project), MBIA, 5.5s, 2020 1,000 1,091,760
- -----------------------------------------------------------------------------------------------------------------------------
$1,958,403
- -----------------------------------------------------------------------------------------------------------------------------
Multi-Family Housing Collier County, FL, Housing Finance
Revenue - 2.3% Authority (Goodlette Arms Housing
Project), Series, A, FNMA, 4.9s, 2032 $500 $531,170
- -----------------------------------------------------------------------------------------------------------------------------
Florida Housing Finance Corp. Rev.
(Augustine Apartments), Series D, MBIA,
5.5s, 2020 500 526,815
- -----------------------------------------------------------------------------------------------------------------------------
Florida Housing Finance Corp. Rev.
(Crossing at University Apartments),
AMBAC, 5.1s, 2018 1,250 1,279,262
- -----------------------------------------------------------------------------------------------------------------------------
Palm Beach County, FL, Housing Finance
Rev. (Westlake Apartments Project), Phase
II, FSA, 4.3s, 2012 170 174,735
- -----------------------------------------------------------------------------------------------------------------------------
$2,511,982
- -----------------------------------------------------------------------------------------------------------------------------
Sales and Excise Tax Escambia County, FL, Sales Tax Rev.,
Revenue - 5.0% AMBAC, 5s, 2021 $1,000 $1,042,730
- -----------------------------------------------------------------------------------------------------------------------------
Escambia County, FL, Sales Tax Rev.,
AMBAC, 5s, 2022 1,160 1,201,980
- -----------------------------------------------------------------------------------------------------------------------------
Jacksonville, FL, Excise Taxes Rev., FGIC,
0s, 2010 1,000 783,270
- -----------------------------------------------------------------------------------------------------------------------------
Jacksonville, FL, Excise Taxes Rev., FGIC,
0s, 2011 1,000 736,550
- -----------------------------------------------------------------------------------------------------------------------------
Pasco County, FL, Sales Tax Rev., Half
Central, AMBAC, 5s, 2023 1,000 1,030,870
- -----------------------------------------------------------------------------------------------------------------------------
Taylor County, FL, Sales Tax Rev., FGIC,
5.5s, 2020 500 548,255
- -----------------------------------------------------------------------------------------------------------------------------
$5,343,655
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - Brevard County, FL, Housing Finance
Local - 4.2% Authority, Series B, GNMA, 6.5s, 2022 $121 $133,159
- -----------------------------------------------------------------------------------------------------------------------------
Lee County, FL, Housing Finance Authority
Rev., Series A, GNMA, 7s, 2031 340 354,362
- -----------------------------------------------------------------------------------------------------------------------------
Lee County, FL, Housing Finance Authority
Rev., Series A, GNMA, 7.2s, 2033 150 153,970
- -----------------------------------------------------------------------------------------------------------------------------
Manatee County, FL, Housing Finance
Mortgage, Series 3, GNMA, 5.3s, 2028 200 215,770
- -----------------------------------------------------------------------------------------------------------------------------
Miami Dade County, FL, Housing Finance
Authority Rev. (Home Ownership Mortgage),
Series A, GNMA, 5.2s, 2031 670 704,116
- -----------------------------------------------------------------------------------------------------------------------------
Palm Beach County, FL, Series B, GNMA,
5.5s, 2022 600 615,660
- -----------------------------------------------------------------------------------------------------------------------------
Pinellas County, FL, Housing Finance
Authority Rev. (Multi-County Program),
Series B, GNMA, 7.25s, 2029 500 520,980
- -----------------------------------------------------------------------------------------------------------------------------
Pinellas County, FL, Housing Finance
Authority Rev. (Multi-County Program),
Series B, GNMA, 6.2s, 2031 710 742,838
- -----------------------------------------------------------------------------------------------------------------------------
Pinellas County, FL, Housing Finance
Authority Rev. (Multi-County Program),
Series A, GNMA, 5.45s, 2034 1,000 1,081,360
- -----------------------------------------------------------------------------------------------------------------------------
$4,522,215
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - Florida Housing Finance Corp. Rev.,
State - 0.8% Homeowner Mortgage, Series 4, FSA,
5.85s, 2031 $825 $871,192
- -----------------------------------------------------------------------------------------------------------------------------
Solid Waste Revenue - 0.2% Delaware County, PA, Industrial
Development Authority Rev., Series A,
6.2s, 2019 $200 $205,942
- -----------------------------------------------------------------------------------------------------------------------------
State and Local Florida Municipal Loan Council Rev.,
Appropriation - 3.8% Series B, MBIA, 5.625s, 2019 $1,000 $1,111,790
- -----------------------------------------------------------------------------------------------------------------------------
Florida Municipal Loan Council Rev.,
Series A, MBIA, 5.625s, 2020 1,000 1,113,180
- -----------------------------------------------------------------------------------------------------------------------------
Florida Municipal Loan Council Rev.,
Series C, MBIA, 5.25s, 2022 1,000 1,067,310
- -----------------------------------------------------------------------------------------------------------------------------
Palm Beach County, FL, School Board,
Series A, AMBAC, 5.5s, 2021 750 827,895
- -----------------------------------------------------------------------------------------------------------------------------
$4,120,175
- -----------------------------------------------------------------------------------------------------------------------------
Tax Assessment - 1.7% Arbor Greene, FL, Community Development
District, 5.75s, 2006 $116 $117,462
- -----------------------------------------------------------------------------------------------------------------------------
Fishawk Community Development District II,
Series B, 5s, 2007 195 195,640
- -----------------------------------------------------------------------------------------------------------------------------
Greyhawk Landing Community Development,
Series B, 6.25s, 2009 185 187,830
- -----------------------------------------------------------------------------------------------------------------------------
Heritage Harbour South Community, Capital
Improvement, Series B, 5.4s, 2008 450 452,826
- -----------------------------------------------------------------------------------------------------------------------------
Heritage Isles, FL, Community Development
District, Special Assesment Rev., Series
A, 5.75s, 2005 370 369,874
- -----------------------------------------------------------------------------------------------------------------------------
Panther Trace, FL, Development District
Rev., Special Assessement, 5.4s, 2008 170 168,896
- -----------------------------------------------------------------------------------------------------------------------------
Panther Trace, FL, Special Assessment,
Series B, 6.5s, 2009 155 156,913
- -----------------------------------------------------------------------------------------------------------------------------
Renaissance Community Development, Series
B, 6.25s, 2008 170 173,630
- -----------------------------------------------------------------------------------------------------------------------------
$1,823,071
- -----------------------------------------------------------------------------------------------------------------------------
Tax - Other - 1.5% Orange County, FL, Tourist Development Tax
Rev., Subordinated, AMBAC, 5.25s, 2027 $1,500 $1,548,990
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco - 0.4% Iowa Tobacco Settlement Authority, Series
B, 5.3s, 2025 $250 $196,798
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corp., Asset
Backed, Series B, 5.875s, 2039 250 196,902
- -----------------------------------------------------------------------------------------------------------------------------
$393,700
- -----------------------------------------------------------------------------------------------------------------------------
Toll Roads - 6.8% Florida Mid Bay Bridge Authority Rev.,
Series A, AMBAC, 0s, 2018 $1,000 $484,070
- -----------------------------------------------------------------------------------------------------------------------------
Florida Turnpike Authority, Turnpike Rev.
(Department of Transportation),
Series A, 5.75s, 2018 2,000 2,281,460
- -----------------------------------------------------------------------------------------------------------------------------
Miami-Dade County, FL, Expressway
Authority, FGIC, 6s, 2010(+++) 1,000 1,203,670
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway &
Transportation, ROLS,
Railroad II R 227 1, MBIA, 9.806s, 2020(++)+ 2,500 3,315,500
- -----------------------------------------------------------------------------------------------------------------------------
$7,284,700
- -----------------------------------------------------------------------------------------------------------------------------
Transportation - Special Lee County, FL, Transportation Facilities
Tax - 2.8% Rev., Series A, AMBAC, 5.5s, 2013 $1,150 $1,320,718
- -----------------------------------------------------------------------------------------------------------------------------
Orlando & Orange County, FL, Expressway,
Series A, AMBAC, 5.25s, 2016 500 555,775
- -----------------------------------------------------------------------------------------------------------------------------
Polk County, FL, Transportation
Improvement Rev., FSA, 5.625s, 2017 1,000 1,136,670
- -----------------------------------------------------------------------------------------------------------------------------
$3,013,163
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Colleges - 0.3% Illinois Educational Facilities Authority
(Augustana College), Series A,
5.625s, 2022 $300 $308,040
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Florida Board of Regents, Housing Rev.,
Dormatories - 3.1% MBIA, 5.3s, 2020 $610 $654,719
- -----------------------------------------------------------------------------------------------------------------------------
Florida Board of Regents, Housing Rev.
(University of Central Florida), FGIC,
5.25s, 2020 1,185 1,270,841
- -----------------------------------------------------------------------------------------------------------------------------
Florida Finance Authority, Capital
Projects, Series F, MBIA, 5.125s, 2021 1,340 1,400,863
- -----------------------------------------------------------------------------------------------------------------------------
$3,326,423
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Secondary Schools Michigan Municipal Bond Authority Rev.,
- - 0.1% YMCA Service Learning Academy, 7.625s, 2021 $100 $101,029
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Investor Port Morrow, OR, Pollution Control Rev.
Owned - 0.2% (Portland General Electric), 5.2s, 2033 $200 $205,734
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Municipal Escambia County, FL, Utility Systems Rev.,
Owned - 8.7% Series B, FGIC, 6.25s, 2016 $1,500 $1,834,860
- -----------------------------------------------------------------------------------------------------------------------------
Kissimmee, FL, Electric Utility Authority,
AMBAC, 5s, 2013 1,500 1,646,160
- -----------------------------------------------------------------------------------------------------------------------------
Marion County, FL, Utility Systems Rev.,
Series A, MBIA, 5s, 2023 1,000 1,030,870
- -----------------------------------------------------------------------------------------------------------------------------
Port St. Lucie, FL, Utility Rev., Capital
Appreciation, Series A, FGIC, 0s, 2006
(+++) 1,405 549,411
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority, FSA,
6s, 2016 2,000 2,115,220
- -----------------------------------------------------------------------------------------------------------------------------
Tampa, FL, Utility Tax & Special Rev.,
Series A, AMBAC, 5.25s, 2020 1,000 1,086,750
- -----------------------------------------------------------------------------------------------------------------------------
Tampa, FL, Utility Tax & Special Rev.,
Series A, AMBAC, 5.25s, 2021 1,000 1,075,270
- -----------------------------------------------------------------------------------------------------------------------------
$9,338,541
- -----------------------------------------------------------------------------------------------------------------------------
Water and Sewer Utility Revenue - Bay County, FL, Water Systems Rev., AMBAC,
12.6% 5.625s, 2019 $1,000 $1,124,230
- -----------------------------------------------------------------------------------------------------------------------------
Florida Community Services Corp., AMBAC,
5.5s, 2018 1,125 1,252,271
- -----------------------------------------------------------------------------------------------------------------------------
Lee County, FL, Industrial Development
Authority Rev. (Bonita Springs Utilities
Project), MBIA, 6.05s, 2015 1,000 1,108,740
- -----------------------------------------------------------------------------------------------------------------------------
Miami Beach, FL, Stormwater Rev., FGIC,
5.25s, 2020 1,000 1,071,750
- -----------------------------------------------------------------------------------------------------------------------------
Miramar, FL, Wastewater Improvement Rev.,
FGIC, 6.75s, 2004(+++) 955 1,019,653
- -----------------------------------------------------------------------------------------------------------------------------
Orlando, FL, Utility Commission, Water &
Electric Rev., Series D, 6.75s, 2017 1,500 1,887,525
- -----------------------------------------------------------------------------------------------------------------------------
Polk County, FL, Utility Systems Rev.,
FGIC, 5s, 2023 1,000 1,030,510
- -----------------------------------------------------------------------------------------------------------------------------
Sebring, FL, Water & Wastewater Rev.,
FGIC, 5.25s, 2016 1,290 1,427,669
- -----------------------------------------------------------------------------------------------------------------------------
Seminole County, FL, Water & Sewer Rev.,
MBIA, 6s, 2019 3,000 3,619,661
- -----------------------------------------------------------------------------------------------------------------------------
$13,542,009
- -----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Identified Cost, $93,974,244) $101,430,329
- -----------------------------------------------------------------------------------------------------------------------------
Floating Rate Demand Notes - 1.1%
- -----------------------------------------------------------------------------------------------------------------------------
Gulf Breeze, FL, due 10/01/03 $250 $250,000
- -----------------------------------------------------------------------------------------------------------------------------
Pinellas County, FL, Health Facility
Authority, Pooled Hospital Loan Program,
due 10/01/03 940 940,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Floating Rate Demand Notes (Identified Cost, $1,190,000) $1,190,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $95,164,244) $102,620,329
- -----------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 4.2% 4,547,419
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - 100.0% $107,167,748
- -----------------------------------------------------------------------------------------------------------------------------
See portfolio footnotes and notes to financial statements.
- -----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited) - 9/30/03 MFS(R) GEORGIA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------------------------------------------------------
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset
classes.
Municipal Bonds - 95.1%
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
ISSUER (000 Omitted) $ VALUE
- -----------------------------------------------------------------------------------------------------------------------------
Airport and Port Atlanta, GA, Airport Facilities Rev.,
Revenue - 4.0% AMBAC, 0s, 2010 $4,000 $2,893,160
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - General Columbia County, GA (Courthouse/Detention
Purpose - 3.7% Center), 5.625s, 2020 $1,490 $1,618,453
- -----------------------------------------------------------------------------------------------------------------------------
Macon-Bibb County, GA, Urban Development
Authority Rev. (Bibb County Public
Facilities), 5.5s, 2022 1,000 1,094,340
- -----------------------------------------------------------------------------------------------------------------------------
$2,712,793
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Improvement Elberton, GA, Combined Utility Systems,
- - 2.8% Refunding & Improvement, AMBAC, 5.5s, 2019 $550 $609,174
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency,
RITES, FSA, 10.781s, 2016(++)+ 500 674,050
- -----------------------------------------------------------------------------------------------------------------------------
Suwanee, GA, MBIA, 5.25s, 2032 750 781,620
- -----------------------------------------------------------------------------------------------------------------------------
$2,064,844
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Forsyth County, GA, School District,
Schools - 7.9% 6s, 2015 $750 $886,425
- -----------------------------------------------------------------------------------------------------------------------------
Fulton County, GA, School District,
6.375s, 2010 2,000 2,401,640
- -----------------------------------------------------------------------------------------------------------------------------
Fulton County, GA, School District,
6.375s, 2012 1,000 1,218,460
- -----------------------------------------------------------------------------------------------------------------------------
Fulton County, GA, School District,
6.375s, 2016 1,000 1,258,880
- -----------------------------------------------------------------------------------------------------------------------------
$5,765,405
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Long Term Richmond County, GA, Development
Care - 1.7% Authority, Nursing Home Rev. (Beverly
Enterprises), 8.75s, 2011 $1,190 $1,218,239
- -----------------------------------------------------------------------------------------------------------------------------
Health/Hospitals - 6.3% Athens-Clarke County, GA (Unified Catholic
Health East Issue), 5.5s, 2032 $500 $506,595
- -----------------------------------------------------------------------------------------------------------------------------
Chatham County, GA, Hospital Authority
Rev., 6s, 2017 350 377,709
- -----------------------------------------------------------------------------------------------------------------------------
Cobb County, GA, Hospital Authority
Revolving, Refunding & Improvement Rev.,
Anticipation Certificates, AMBAC, 5.25s, 2023 750 784,020
- -----------------------------------------------------------------------------------------------------------------------------
Gainsville & Hall County, GA, Hospital
Authority Rev., Northeast, GA, Health
Systems, Inc., 5.5s, 2031 500 503,050
- -----------------------------------------------------------------------------------------------------------------------------
Royston, GA, Hospital Authority Rev. (Ty
Cobb Healthcare Systems, Inc.),
6.125s, 2009 330 331,436
- -----------------------------------------------------------------------------------------------------------------------------
Tift County, GA, Hospital Authority Rev.,
Anticipation Certificates, AMBAC,
5s, 2022 2,000 2,061,740
- -----------------------------------------------------------------------------------------------------------------------------
$4,564,550
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Cartersville, GA, Development Authority
Other - 1.8% Waste, Refunding Anheuser Busch Project,
5.95s, 2032 $750 $790,883
- -----------------------------------------------------------------------------------------------------------------------------
De Kalb County, GA, Development Authority
(Refunding General Motors Corp.), 6s, 2021 500 517,575
- -----------------------------------------------------------------------------------------------------------------------------
$1,308,458
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Effingham County, GA, Development
Paper - 2.1% Authority (Fort James), 5.625s, 2018 $150 $128,479
- -----------------------------------------------------------------------------------------------------------------------------
Savannah, GA, Economic Development
Authority Rev. (Stone Container Corp.),
7.4s, 2026 300 303,348
- -----------------------------------------------------------------------------------------------------------------------------
Savannah, GA, Economic Development
Authority Rev. (Union Camp Corp.), 6.15s, 2017 1,000 1,089,370
- -----------------------------------------------------------------------------------------------------------------------------
$1,521,197
- -----------------------------------------------------------------------------------------------------------------------------
Multi-Family Housing Clayton County, GA, Housing Authority,
Revenue - 4.6% GNMA, 5.5s, 2032 $995 $1,034,243
- -----------------------------------------------------------------------------------------------------------------------------
De Kalb County, GA, Housing Authority Rev.
(Collateral Castaways Apartments), Series
A, GNMA, 5.4s, 2029 600 621,396
- -----------------------------------------------------------------------------------------------------------------------------
Hinesville, GA, Leased Housing Corp. Rev.
(Baytree Apartments), FHA, 6.7s, 2017 900 918,036
- -----------------------------------------------------------------------------------------------------------------------------
Savannah, GA, Housing Authority (Refunding
Chatham Gardens Project), FNMA, 5.625s, 2031 750 810,945
- -----------------------------------------------------------------------------------------------------------------------------
$3,384,620
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - Georgia Housing & Finance Authority Rev.,
State - 5.5% 6.05s, 2019 $85 $85,704
- -----------------------------------------------------------------------------------------------------------------------------
Georgia Housing & Finance Authority Rev.,
5.2s, 2020 585 603,211
- -----------------------------------------------------------------------------------------------------------------------------
Georgia Housing & Finance Authority Rev.,
5.8s, 2021 750 784,448
- -----------------------------------------------------------------------------------------------------------------------------
Georgia Housing & Finance Authority Rev.,
5.5s, 2032 1,000 1,022,470
- -----------------------------------------------------------------------------------------------------------------------------
Georgia Housing & Finance Authority Rev.,
Single Family Mortgage, 5.1s, 2022 750 765,915
- -----------------------------------------------------------------------------------------------------------------------------
Georgia Housing & Finance Authority Rev.,
Single Family Mortgage, 5.6s, 2032 745 764,556
- -----------------------------------------------------------------------------------------------------------------------------
$4,026,304
- -----------------------------------------------------------------------------------------------------------------------------
State and Local Athens, GA, Housing Authority, University
Appropriation - 8.4% of Georgia East Campus, AMBAC, 5.25s, 2022 $1,000 $1,070,000
- -----------------------------------------------------------------------------------------------------------------------------
Clayton County, GA, Development Authority
Rev., 6.25s, 2020 500 584,645
- -----------------------------------------------------------------------------------------------------------------------------
Fayette County, GA, Public Facilities
Authority Rev. (Criminal Justice Center),
6.25s, 2010(+++) 755 918,526
- -----------------------------------------------------------------------------------------------------------------------------
Fulton County, GA, Facilities Corp.,
AMBAC, 5.5s, 2018 1,195 1,337,133
- -----------------------------------------------------------------------------------------------------------------------------
Fulton County, GA, Facilities Corp.,
AMBAC, 5.9s, 2019 1,000 1,158,580
- -----------------------------------------------------------------------------------------------------------------------------
Rockland County, GA, Hospital Authority
Rev. (Ty Cobb Healthcare Systems, Inc.),
AMBAC, 5.625s, 2020 500 554,225
- -----------------------------------------------------------------------------------------------------------------------------
Savannah, GA, Economic Development
Authority, GTREP Project, MBIA, 5s, 2022 500 519,080
- -----------------------------------------------------------------------------------------------------------------------------
$6,142,189
- -----------------------------------------------------------------------------------------------------------------------------
Tax - Other - 1.5% Virgin Islands Public Finance Authority
Rev., ASST GTY, 5.5s, 2018 $1,000 $1,098,560
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco - 0.5% Childrens Trust Fund, Settlement Rev.,
5.375s, 2033 $390 $348,512
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Colleges - 8.5% Fulton County, GA, Development Authority
Rev. (Georgia Tech Foundation), 5.75s, 2017 $1,000 $1,146,750
- -----------------------------------------------------------------------------------------------------------------------------
Fulton County, GA, Development Authority
Rev. (Morehouse College), AMBAC, 6.25s, 2021 980 1,151,676
- -----------------------------------------------------------------------------------------------------------------------------
Georgia Private Colleges & University
Authority Rev. (Emory University),
5.75s, 2016 1,000 1,142,630
- -----------------------------------------------------------------------------------------------------------------------------
Georgia Private Colleges & University
Authority Rev. (Emory University),
5.75s, 2018 1,000 1,145,840
- -----------------------------------------------------------------------------------------------------------------------------
Georgia Private Colleges & University
Authority Rev. (Mercer University
Project), 5.75s, 2021 500 530,205
- -----------------------------------------------------------------------------------------------------------------------------
Private Colleges & University Authority
(Spelman College), 5.25s, 2021 500 534,125
- -----------------------------------------------------------------------------------------------------------------------------
Savannah, GA, Economic Development
Authority Rev. (College of Art & Design,
Inc.), 6.2s, 2009 500 562,595
- -----------------------------------------------------------------------------------------------------------------------------
$6,213,821
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Bulloch County, GA, Development Authority
Dormatories - 4.8% (Southern University Project), AMBAC, 5s, 2021 $1,000 $1,045,170
- -----------------------------------------------------------------------------------------------------------------------------
Georgia Private Colleges & University
Authority Rev., Mercer Housing Corp.,
6s, 2021 500 521,260
- -----------------------------------------------------------------------------------------------------------------------------
Marietta, GA, Development Authority Rev.
(Southern Polytech University),
6.25s, 2027 1,000 869,530
- -----------------------------------------------------------------------------------------------------------------------------
Milledgeville Baldwin County, GA, Georgia
College & State University Foundation, 1s, 2032 1,000 1,028,500
- -----------------------------------------------------------------------------------------------------------------------------
$3,464,460
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Municipal Appling County, GA, Development Authority
Owned - 8.0% Rev. (Ogelthorpe Power Corp.), MBIA,
7.15s, 2021 $1,400 $1,433,474
- -----------------------------------------------------------------------------------------------------------------------------
Georgia Municipal Electric Authority,
Power Rev., MBIA, 6.5s, 2020 1,250 1,577,587
- -----------------------------------------------------------------------------------------------------------------------------
Griffin, GA, Combined Public Utility,
Refunding & Improvement, AMBAC,
5s, 2021 1,500 1,575,825
- -----------------------------------------------------------------------------------------------------------------------------
Monroe County, GA, Development Authority,
Pollution Control Rev. (Oglethorpe Power),
6.8s, 2012 1,000 1,217,560
- -----------------------------------------------------------------------------------------------------------------------------
$5,804,446
- -----------------------------------------------------------------------------------------------------------------------------
Water and Sewer Utility Revenue - Alanta, GA, Water & Wastewater Rev.,
23.0% RITES, FGIC, 9.639s, 2016(++)+ $4,000 $5,381,120
- -----------------------------------------------------------------------------------------------------------------------------
Clayton County, GA, Water & Sewage
Authority Rev., 6.25s, 2017 1,000 1,183,840
- -----------------------------------------------------------------------------------------------------------------------------
Columbia County, GA, Water & Sewage Rev.,
FGIC, 6.25s, 2010(+++) 470 567,892
- -----------------------------------------------------------------------------------------------------------------------------
Coweta County, GA, Development Authority
Rev. (Newnan Water Sewage & Light
Commission), AMBAC, 5.75s, 2016 1,000 1,144,080
- -----------------------------------------------------------------------------------------------------------------------------
Fairburn, GA, Utility Rev., 5.75s, 2020 500 546,480
- -----------------------------------------------------------------------------------------------------------------------------
Forsyth County, GA, Water & Sewage
Authority, 6.25s, 2010(+++) 1,105 1,339,172
- -----------------------------------------------------------------------------------------------------------------------------
Fulton County, GA, Water & Sewage Rev.,
FGIC, 6.375s, 2014 3,150 3,833,581
- -----------------------------------------------------------------------------------------------------------------------------
Fulton County, GA, Water & Sewage Rev.,
FGIC, 6.375s, 2014 100 120,809
- -----------------------------------------------------------------------------------------------------------------------------
Gainesville, GA, Water & Sewage Authority
Rev., FGIC, 5.625s, 2019 1,000 1,112,950
- -----------------------------------------------------------------------------------------------------------------------------
Jackson County, GA, Water & Sewage
Authority Rev., AMBAC, 5.75s, 2017 1,000 1,156,870
- -----------------------------------------------------------------------------------------------------------------------------
Summerville, GA, Public Utility Rev.,
Refunding & Improvement, 5.75s, 2026 350 363,517
- -----------------------------------------------------------------------------------------------------------------------------
$16,750,311
- -----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Identified Cost, $62,801,590) $69,281,869
- -----------------------------------------------------------------------------------------------------------------------------
Floating Rate Demand Notes - 0.7%
- -----------------------------------------------------------------------------------------------------------------------------
Lincoln County, WY, Pollution Control Rev.
(Exxon), due 10/01/03 $100 $100,000
- -----------------------------------------------------------------------------------------------------------------------------
MSR Public Power Agency, CA, due 10/01/03 100 100,000
- -----------------------------------------------------------------------------------------------------------------------------
Oregon State, due 10/01/03 200 200,000
- -----------------------------------------------------------------------------------------------------------------------------
Pinellas County, FL, Health Facility
Authority, Pooled Hospital Loan Program,
due 10/01/03 100 100,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Floating Rate Demand Notes (Identified Cost, $500,000) $500,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $63,301,590) $69,781,869
- -----------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 4.2% 3,035,074
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - 100.0% $72,816,943
- -----------------------------------------------------------------------------------------------------------------------------
See portfolio footnotes and notes to financial statements.
- -----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited) - 9/30/03 MFS(R) MARYLAND MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------------------------------------------------------
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset
classes.
Municipal Bonds - 98.2%
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
ISSUER (000 Omitted) $ VALUE
- -----------------------------------------------------------------------------------------------------------------------------
Airport and Port Maryland Transport Authority, Baltimore/
Revenue - 2.4% Washington International Airport, "A",
AMBAC, 5s, 2027 $1,000 $1,020,700
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Transport Authority Airport Park
Rev., Baltimore/Washington International
Airport, "B", AMBAC, 5.25s, 2009 2,840 3,171,400
- -----------------------------------------------------------------------------------------------------------------------------
$4,192,100
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - General Baltimore, MD, Consolidated Public
Purpose - 5.8% Improvement, 7.15s, 2009 $2,120 $2,626,913
- -----------------------------------------------------------------------------------------------------------------------------
Frederick County, MD, Public Facilities,
5.2s, 2019 1,700 1,842,834
- -----------------------------------------------------------------------------------------------------------------------------
Prince Georges County, MD, Consolidated
Public Improvement, "A", 5s, 2020 1,550 1,657,570
- -----------------------------------------------------------------------------------------------------------------------------
Prince Georges County, MD, Consolidated
Public Improvement, "A", 5s, 2023 2,000 2,082,180
- -----------------------------------------------------------------------------------------------------------------------------
State of Maryland, 5.75s, 2014 1,550 1,816,786
- -----------------------------------------------------------------------------------------------------------------------------
$10,026,283
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Improvement
- - 18.1% Anne Arundel County, MD, 5s, 2015 $2,000 $2,181,380
- -----------------------------------------------------------------------------------------------------------------------------
Baltimore, MD, FGIC, 5.5s, 2018(+++) 1,700 2,007,139
- -----------------------------------------------------------------------------------------------------------------------------
Baltimore, MD, Consolidated Public
Improvement, MBIA, 7s, 2009 1,000 1,248,030
- -----------------------------------------------------------------------------------------------------------------------------
Frederick County, MD, Public Facilities,
5.25s, 2016 2,000 2,210,660
- -----------------------------------------------------------------------------------------------------------------------------
Howard County, MD, Consolidated Public
Improvement, "A", 5.5s, 2019 1,000 1,094,020
- -----------------------------------------------------------------------------------------------------------------------------
Howard County, MD, Consolidated Public
Improvement, "A", 5.5s, 2020 2,000 2,180,380
- -----------------------------------------------------------------------------------------------------------------------------
Howard County, MD, Metropolitan District,
0s, 2008 1,000 889,560
- -----------------------------------------------------------------------------------------------------------------------------
Maryland State, State & Local Facilities
Loan, Capital Improvement, "A",
5.5s, 2015 1,500 1,762,665
- -----------------------------------------------------------------------------------------------------------------------------
Montgomery County, MD, Consolidated Public
Improvement, 5.75s, 2018(+++) 2,000 2,352,580
- -----------------------------------------------------------------------------------------------------------------------------
Montgomery County, MD, Consolidated Public
Improvement, 5s, 2021 500 527,715
- -----------------------------------------------------------------------------------------------------------------------------
Prince George's County, MD, 0s, 2007 5,110 4,723,786
- -----------------------------------------------------------------------------------------------------------------------------
Prince George's County, MD, Consolidated
Public Improvement, FSA,
5.375s, 2015 1,500 1,670,685
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency,
RITES, FSA, 9.773s, 2019(++)+ 1,000 1,215,140
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., MBIA,
5.5s, 2018 1,000 1,121,500
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., MBIA,
5s, 2021 1,000 1,048,870
- -----------------------------------------------------------------------------------------------------------------------------
Washington, MD, Suburban Sanitation
District, 5.25s, 2016 865 925,403
- -----------------------------------------------------------------------------------------------------------------------------
Worcester County, MD, Public Improvement,
5.625s, 2013 1,620 1,826,064
- -----------------------------------------------------------------------------------------------------------------------------
Worcester County, MD, Public Improvement,
5.625s, 2015 2,030 2,327,253
- -----------------------------------------------------------------------------------------------------------------------------
$31,312,830
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations -
Schools - 0.6% Montgomery County, MD, 5s, 2020 $1,000 $1,062,590
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Hospitals - Maryland Health & Higher Education
13.7% Facilities Authority Rev., Adventist
Healthcare, Series A, 5.75s, 2025 $1,000 $1,001,240
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev., Union Hospital
Of Cecil County Issue, 5.625s, 2032 1,000 1,024,850
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev. (Carroll County
General Hospital), 6s, 2037 1,000 1,042,330
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev. (Catholic Health
Initiatives), 6s, 2020 1,000 1,112,360
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev. (Doctors
Community Hospital), 5.5s, 2024 1,000 966,160
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev. (Frederick
Memorial Hospital), FGIC, 5.25s, 2013 2,850 3,232,385
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev. (Frederick
Memorial Hospital), 5.125s, 2035 1,000 1,009,720
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev. (Good Samaritan
Hospital), 5.7s, 2009 1,085 1,267,768
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev. (Howard County
General Hospital), 5.5s, 2021 4,000 4,103,280
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev. (Johns Hopkins
University), 5s, 2021 750 770,580
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev. (Mercy Medical
Center), FSA, 5.625s, 2017 1,800 1,965,186
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev. (North Arundel
Hospital), 6.5s, 2026 500 541,190
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev. (University of
Maryland Medical System), 6.625s, 2020 1,000 1,111,200
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev. (Upper
Chesapeake Hospital), FSA, 5.5s, 2020 2,000 2,144,920
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Industrial Development Finance
Authority, Economic Development Rev., RIBS
(Bon Secours Health System), FSA, 10.56s, 2022(++) 1,400 1,942,920
- -----------------------------------------------------------------------------------------------------------------------------
Montgomery County, MD, Economic
Development, Trinity Health Credit Group,
5.125s, 2022 500 510,600
- -----------------------------------------------------------------------------------------------------------------------------
$23,746,689
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Long Term Maryland Health & Higher Education
Care - 0.6% Facilities Authoritiy Rev., Mercy Ridge,
"A", 6s, 2035 $150 $146,508
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev. (Bradford Oaks
Center), 6.375s, 2027 1,000 933,710
- -----------------------------------------------------------------------------------------------------------------------------
$1,080,218
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Baltimore, MD, Port Facilities Rev.
Chemicals - 0.9% (duPont (E.I.) de Nemours), 6.5s, 2011 $1,500 $1,535,070
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Northeast Maryland Waste Disposal
Environmental Services - 0.4% Authority, Resources Recovery Rev.
(Baltimore Resco Retrofit), 5s, 2012 $690 $675,889
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Upper Potomac, MD, River Commission,
Paper - 0.4% Pollution Control Rev. (Westvaco), 10.5s, 2004 $150 $150,824
- -----------------------------------------------------------------------------------------------------------------------------
Upper Potomac, MD, River Commission,
Pollution Control Rev. (Westvaco), 9.125s, 2015 500 501,685
- -----------------------------------------------------------------------------------------------------------------------------
$652,509
- -----------------------------------------------------------------------------------------------------------------------------
Miscellaneous Revenue - Maryland Industrial Authority Economic
Entertainment & Development, Baltimore Aquarium Project,
Tourism - 0.6% 5.2s, 2026 $1,000 $1,011,700
- -----------------------------------------------------------------------------------------------------------------------------
Miscellaneous Revenue - Maryland Industrial Development Finance
Other - 1.9% Authority Rev. (YMCA/Baltimore),
8s, 2012(+++) $2,825 $3,391,751
- -----------------------------------------------------------------------------------------------------------------------------
Multi-Family Housing Baltimore, MD, City Housing, FHA,
Revenue - 3.5% 7.75s, 2009 $580 $580,481
- -----------------------------------------------------------------------------------------------------------------------------
Baltimore, MD, City Housing, FHA, 7.25s, 2023 1,110 1,095,959
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Community Development
Administration, Multi Family Housing
Insured Mortgage, "B", 5.6s, 2032 1,250 1,298,362
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Community Development
Administration (Waters Landing
Apartments), GNMA, 5.875s, 2033 1,500 1,584,825
- -----------------------------------------------------------------------------------------------------------------------------
Prince George's County, MD, Housing
Authority, Fairview & Hillside Projects,
"A", GNMA, 4.85s, 2032 1,500 1,505,415
- -----------------------------------------------------------------------------------------------------------------------------
$6,065,042
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue -
Local - 1.0% Prince George's County, MD, 7.4s, 2032 $495 $504,841
- -----------------------------------------------------------------------------------------------------------------------------
Prince George's County, MD, Housing
Authority Rev., GNMA, 5.375s, 2018 695 723,613
- -----------------------------------------------------------------------------------------------------------------------------
Prince George's County, MD, Housing
Sinking Fund (Collateral, Series A), GNMA,
5.6s, 2034 510 548,994
- -----------------------------------------------------------------------------------------------------------------------------
$1,777,448
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - Maryland Community Development
State - 7.1% Administration, 5.875s, 2016 $1,615 $1,711,593
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Community Development
Administration, 5.15s, 2018 2,000 2,068,440
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Community Development
Administration, 6.05s, 2020 2,045 2,158,743
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Community Development
Administration, 6.2s, 2020 2,390 2,395,784
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Community Development
Administration, 6.75s, 2026 780 800,608
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Community Development
Administration, Single Family Program,
Second Series, 4.5s, 2024 1,135 1,142,922
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Housing Finance Authority,
Amount Mortgage Backed Securities, "A",
4.375s, 2017 1,500 1,503,450
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Housing Finance Authority,
Amount Mortgage Backed Securities, "A",
4.75s, 2023 500 499,970
- -----------------------------------------------------------------------------------------------------------------------------
$12,281,510
- -----------------------------------------------------------------------------------------------------------------------------
Solid Waste Revenue - 4.0% Northeast Maryland Waste Disposal
Authority Rev. (Montgomery County),
6s, 2006 $1,100 $1,207,294
- -----------------------------------------------------------------------------------------------------------------------------
Northeast Maryland Waste Disposal
Authority Rev. (Southwest County Resource
Recovery), MBIA, 7.2s, 2005 1,000 1,034,610
- -----------------------------------------------------------------------------------------------------------------------------
Northeast Maryland Waste Disposal Solid,
AMBAC, 5.5s, 2016 1,000 1,082,560
- -----------------------------------------------------------------------------------------------------------------------------
Prince George's County, MD (Solid Waste
Management), FSA, 5.25s, 2013 3,500 3,580,430
- -----------------------------------------------------------------------------------------------------------------------------
$6,904,894
- -----------------------------------------------------------------------------------------------------------------------------
State and Local Howard County, MD, Certificates of
Appropriation - 9.6% Participation, "A", 8s, 2019 $805 $1,157,993
- -----------------------------------------------------------------------------------------------------------------------------
Howard County, MD, Certificates of
Participation, "B", 8s, 2019 385 553,823
- -----------------------------------------------------------------------------------------------------------------------------
Howard County, MD, Certificates of
Participation, "B", 8.15s, 2021 450 653,512
- -----------------------------------------------------------------------------------------------------------------------------
Howard County, MD, Certificates of
Participation, "C", 8s, 2019 680 978,180
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Stadium Authority, Sports
Facilities Leasing Rev., AMBAC,
5.875s, 2012 1,000 1,072,590
- -----------------------------------------------------------------------------------------------------------------------------
Prince George's County, MD, Certificates
of Participation, MBIA, 0s, 2005 2,495 2,435,943
- -----------------------------------------------------------------------------------------------------------------------------
Prince George's County, MD, Certificates
of Participation, MBIA, 0s, 2006 2,490 2,383,553
- -----------------------------------------------------------------------------------------------------------------------------
Prince George's County, MD, Industrial
Development Authority, MBIA, 0s, 2004 980 971,052
- -----------------------------------------------------------------------------------------------------------------------------
Prince George's County, MD, Industrial
Development Authority, MBIA, 0s, 2009 1,500 1,273,890
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., AMBAC,
5.375s, 2018 1,000 1,151,310
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., 5.7s, 2025 1,235 1,317,696
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES,
AMBAC, 9.458s, 2013(++)+ 500 653,940
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES,
AMBAC, 9.458s, 2016(++)+ 1,520 1,993,723
- -----------------------------------------------------------------------------------------------------------------------------
$16,597,205
- -----------------------------------------------------------------------------------------------------------------------------
Tax - Other - 1.2% Virgin Islands Public Finance Authority
Rev., 5.875s, 2018 $1,000 $1,030,500
- -----------------------------------------------------------------------------------------------------------------------------
Virgin Islands Public Finance Authority
Rev., Series A, 5.5s, 2022 1,000 1,020,260
- -----------------------------------------------------------------------------------------------------------------------------
$2,050,760
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco - 0.4% Childrens Trust Fund, Settlement Rev.,
5.375s, 2033 $245 $218,937
- -----------------------------------------------------------------------------------------------------------------------------
Guam Economic Development Authority, 5.5s, 2041 400 345,964
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corp., 5s, 2021 260 218,707
- -----------------------------------------------------------------------------------------------------------------------------
$783,608
- -----------------------------------------------------------------------------------------------------------------------------
Transportation - Special Maryland State Department Transportation
Tax - 1.3% Consolidated, 5.25s, 2014 $2,000 $2,285,460
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Colleges - 11.4% Annapolis, MD, Economic Development Rev.
(St. John's College), 5.5s, 2018 750 784,665
- -----------------------------------------------------------------------------------------------------------------------------
Anne Arundel County, MD, Economic
Development, Community College Project,
5.25s, 2028 1,600 1,624,512
- -----------------------------------------------------------------------------------------------------------------------------
Frederick County, MD, Educational
Facilities Rev. (Mount St. Mary's
College), 5.7s, 2020 850 876,869
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev. (Johns Hopkins
University), 5.125s, 2020 1,500 1,588,725
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev. (Johns Hopkins
University), 5.625s, 2027 1,400 1,496,362
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev. (Johns Hopkins
University), Series "A", 5s, 2032 3,000 3,040,620
- -----------------------------------------------------------------------------------------------------------------------------
Maryland Health & Higher Education
Facilities Authority Rev. (Loyola
College), MBIA, 5.5s, 2016 3,000 3,314,730
- -----------------------------------------------------------------------------------------------------------------------------
Morgan State University, MD, Academic,
Series A, FGIC, 5s, 2020 500 529,830
- -----------------------------------------------------------------------------------------------------------------------------
Morgan State University, MD, Academic,
Series B, FGIC, 5s, 2022 350 366,317
- -----------------------------------------------------------------------------------------------------------------------------
Morgan, MD, State University Academic &
Auxiliary Facilities & Fees Rev., MBIA,
0s, 2006 1,135 1,088,499
- -----------------------------------------------------------------------------------------------------------------------------
Morgan, MD, State University Academic &
Auxiliary Facilities & Fees Rev., MBIA,
0s, 2008 1,400 1,245,496
- -----------------------------------------------------------------------------------------------------------------------------
Morgan, MD, State University Academic &
Auxiliary Facilities & Fees Rev., MBIA,
6.05s, 2015 1,500 1,832,940
- -----------------------------------------------------------------------------------------------------------------------------
University of Maryland, Auxillary
Facilities & Tuition Rev., 0s, 2004 1,000 988,470
- -----------------------------------------------------------------------------------------------------------------------------
Westminster, MD, Education Facilities
Rev., McDaniel College, 5.5s, 2032 1,000 1,000,150
- -----------------------------------------------------------------------------------------------------------------------------
$19,778,185
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Maryland State Economic Development Corp.,
Dormatories - 2.9% Senior Morgan State University Project,
Series A, 6s, 2034 $1,000 $1,006,970
- -----------------------------------------------------------------------------------------------------------------------------
Maryland State Economic Development Corp.,
Student Housing Rev. (Salisbury
University), 6s, 2019 1,000 1,027,690
- -----------------------------------------------------------------------------------------------------------------------------
Maryland State Economic Development Corp.,
Student Housing Rev. (Towson University),
5.75s, 2029 1,000 971,230
- -----------------------------------------------------------------------------------------------------------------------------
Maryland State Economic Development Corp.
(University of Maryland), AMBAC, 5s, 2019 1,850 1,952,064
- -----------------------------------------------------------------------------------------------------------------------------
$4,957,954
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Municipal Guam Power Authority Rev., RITES, AMBAC,
Owned - 5.2% 9.198s, 2015(++)+ $1,680 $2,047,450
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority Rev.,
FSA, 5.125s, 2016 2,500 2,721,100
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority Rev.,
RITES, FSA, 9.158s, 2015(++)+ 1,400 1,657,292
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority Rev.,
Series NN, 5.125s, 2024 1,500 1,533,255
- -----------------------------------------------------------------------------------------------------------------------------
Virgin Islands Water & Power Authority,
AMBAC, 5s, 2017 1,000 1,086,310
- -----------------------------------------------------------------------------------------------------------------------------
$9,045,407
- -----------------------------------------------------------------------------------------------------------------------------
Water and Sewer Utility Baltimore, MD, Wastewater Rev., FGIC,
Revenue - 5.2% 6s, 2015 $1,000 $1,212,970
- -----------------------------------------------------------------------------------------------------------------------------
Baltimore, MD, Wastewater Rev., MBIA,
5.65s, 2020 2,000 2,312,400
- -----------------------------------------------------------------------------------------------------------------------------
Baltimore, MD, Wastewater Rev., MBIA,
11.02s, 2020(++) 3,000 3,944,700
- -----------------------------------------------------------------------------------------------------------------------------
Baltimore, MD, Project Revenue, Refunding
Water Projects, "A", FGIC, 5.125s, 2032 1,000 1,022,380
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Aqueduct & Sewer Authority
Rev., 10.25s, 2009 355 445,621
- -----------------------------------------------------------------------------------------------------------------------------
$8,938,071
- -----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Identified Cost, $154,994,786) $170,153,173
- -----------------------------------------------------------------------------------------------------------------------------
Floating Rate Demand Notes - 0.6%
- -----------------------------------------------------------------------------------------------------------------------------
New York City, NY, Municipal Water & Sewer
Finance Authority Rev.,
due 10/01/03 $200 $200,000
- -----------------------------------------------------------------------------------------------------------------------------
Sevier County, TN, Public Building
Authority, due 10/01/03 800 800,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Floating Rate Demand Notes (Identified Cost, $1,000,000) $1,000,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $155,994,786) $171,153,173
- -----------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 1.2% 2,017,084
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - 100.0% $173,170,257
- -----------------------------------------------------------------------------------------------------------------------------
See portfolio footnotes and notes to financial statements.
- -----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (Unaudited) - 9/30/03 MFS(R) MASSACHUSETTS MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------------------------------------------------------
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset
classes.
Municipal Bonds - 97.1%
- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT
ISSUER (000 Omitted) $ VALUE
- -----------------------------------------------------------------------------------------------------------------------------
Airport and Port
Revenue - 4.4% Massachusetts Port Authority, 6s, 2015 $1,000 $1,156,860
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Port Authority, FSA, 5.125s, 2017 1,275 1,345,801
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Port Authority (Delta
Airlines, Inc.), AMBAC, 5.5s, 2019 2,000 2,101,480
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Port Authority (US Airways),
MBIA, 5.875s, 2016 1,900 2,066,022
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Port Authority (USAIR),
MBIA, 5.625s, 2011 1,140 1,233,354
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Port Authority Rev., 13s, 2013 745 1,161,284
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Port Authority Rev., 6.125s, 2017 1,460 1,675,160
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Port Authority Rev., Series
A, MBIA, 5s, 2033 1,500 1,516,485
- -----------------------------------------------------------------------------------------------------------------------------
$12,256,446
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - General
Purpose - 19.9% Boston, MA, Series A, 5.75s, 2010(+++) $3,645 $4,264,431
- -----------------------------------------------------------------------------------------------------------------------------
Brookline, MA, 5.375s, 2019 1,800 1,975,824
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Massachusetts, ETM, 0s, 2004 8,170 8,061,911
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Massachusetts, 0s, 2004 1,080 1,064,729
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Massachusetts, ETM, 0s, 2005 2,000 1,932,700
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Massachusetts, FGIC, 7s, 2009 1,150 1,414,810
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Massachusetts, 5.875s, 2009(+++) 1,000 1,191,180
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Massachusetts, 6s, 2010(+++) 125 149,091
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Massachusetts, 6s, 2010(+++) 3,000 3,578,190
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Massachusetts, 5.75s, 2010(+++) 2,000 2,337,820
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Massachusetts,
Consolidated Loan Series B, 5.625s, 2010(+++) 2,000 2,327,880
- -----------------------------------------------------------------------------------------------------------------------------
Commonwealth of Massachusetts,
Consolidated Loan Series B, 5.75s, 2010(+++) 1,000 1,178,090
- -----------------------------------------------------------------------------------------------------------------------------
Greater Lawrence, MA, San District, MBIA,
5.625s, 2020 1,940 2,165,098
- -----------------------------------------------------------------------------------------------------------------------------
Lynn, MA, AMBAC, 5.125s, 2018 3,690 3,971,731
- -----------------------------------------------------------------------------------------------------------------------------
Mansfield, MA, FSA, 5.375s, 2017 1,170 1,281,969
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State, MBIA, 5s, 2022 1,000 1,034,050
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State, A 2003, MBIA, 7.5s, 2004 105 109,556
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State, Consolidated Loan A,
MBIA, 7.5s, 2004 920 959,919
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State, Consolidated Loan,
Series D, MBIA, 5s, 2021 1,380 1,433,999
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State, Consolidated Loan,
Series E, FSA, 5.25s, 2020 1,000 1,078,440
- -----------------------------------------------------------------------------------------------------------------------------
Middleborough, MA, FGIC, 5.6s, 2014 75 84,185
- -----------------------------------------------------------------------------------------------------------------------------
Salisbury, MA, MBIA, 5.25s, 2031 2,790 2,891,668
- -----------------------------------------------------------------------------------------------------------------------------
Sutton, MA, MBIA, 5.5s, 2017 1,000 1,114,610
- -----------------------------------------------------------------------------------------------------------------------------
Sutton, MA, MBIA, 5.5s, 2019 1,000 1,101,780
- -----------------------------------------------------------------------------------------------------------------------------
Wakefield, MA, FGIC, 5s, 2021 1,070 1,123,971
- -----------------------------------------------------------------------------------------------------------------------------
Westford, MA, FGIC, 5.25s, 2020 2,250 2,414,700
- -----------------------------------------------------------------------------------------------------------------------------
Weymouth, MA, MBIA, 5.375s, 2020 1,250 1,355,738
- -----------------------------------------------------------------------------------------------------------------------------
Worcester, MA, FSA, 6s, 2016 2,955 3,458,975
- -----------------------------------------------------------------------------------------------------------------------------
$55,057,045
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations - Massachusetts Bay Transit Authority,
Improvement - 4.0% Pennsylvania 675A 1, RITES,
10.965s, 2016(++)+ $4,835 $6,765,132
- -----------------------------------------------------------------------------------------------------------------------------
Maynard, MA, MBIA, 5.5s, 2021 1,000 1,112,330
- -----------------------------------------------------------------------------------------------------------------------------
Springfield, MA, Municipal Purpose Loan,
FSA, 6.25s, 2019 2,600 3,052,348
- -----------------------------------------------------------------------------------------------------------------------------
$10,929,810
- -----------------------------------------------------------------------------------------------------------------------------
General Obligations -
Schools - 4.4% Belmont, MA, 5s, 2015 $2,165 $2,274,592
- -----------------------------------------------------------------------------------------------------------------------------
Dudley-Charlton, MA, Regional School
District, RITES, FGIC, 9.208s, 2015(++)+ 1,365 1,743,624
- -----------------------------------------------------------------------------------------------------------------------------
Dudley-Charlton, MA, Regional School
District, RITES, FGIC, 9.208s, 2016(++)+ 1,430 1,828,570
- -----------------------------------------------------------------------------------------------------------------------------
Dudley-Charlton, MA, Regional School
District, RITES, FGIC, 9.208s, 2018(++)+ 1,565 1,981,352
- -----------------------------------------------------------------------------------------------------------------------------
Narragansett, MA, Regional School
District, AMBAC, 6s, 2019 1,720 1,994,942
- -----------------------------------------------------------------------------------------------------------------------------
Tantasqua, MA, Regional School District,
FSA, 5.375s, 2016 2,000 2,213,180
- -----------------------------------------------------------------------------------------------------------------------------
$12,036,260
- -----------------------------------------------------------------------------------------------------------------------------
Health Care Revenue - Long Term Boston, MA, Industrial Development Finance
Care - 1.0% Authority Rev. (Alzheimers Center), FHA,
5.5s, 2012 $375 $405,893
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Beverly Enterprises), 8.375s, 2009 1,895 1,936,671
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Evanswood), 0s, 2014** 497 50
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Development Finance
Agency, First Mortgage Loomis Cmntys
Project A, 6.9s, 2032 530 544,087
- -----------------------------------------------------------------------------------------------------------------------------
$2,886,701
- -----------------------------------------------------------------------------------------------------------------------------
Health/Hospitals - 11.0% Massachusetts Development Finance Agency,
Massachusetts Biomedical Research, 6.375s, 2016 $50 $56,899
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (Anna Jaques
Hospital), 6.875s, 2012 685 693,069
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (Berkshire
Health Systems), 6.25s, 2031 1,350 1,388,084
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (Caritas Christi
Obligation), 6.5s, 2012 500 517,230
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (Caritas Christi
Obligation), 5.7s, 2015 500 475,320
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (Jordan
Hospital), 5.25s, 2018 1,930 1,620,968
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (North Adams
Regional Hospital), 6.625s, 2018 1,010 979,165
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (Partners Health
care), 5.75s, 2021 100 106,608
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (Milford-
Whitinsville Regional), 5.25s, 2018 1,500 1,401,660
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (Milton
Hospital), 5.5s, 2016 800 819,736
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (Newton Wellsley
College), MBIA, 6.125s, 2015 1,000 1,140,780
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (Partners
Healthcare), MBIA, 5.375s, 2018 2,000 2,126,940
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (South Shore
Hospital), 5.625s, 2019 2,000 2,056,160
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (University of
Massachusetts), 6.5s, 2021 1,000 1,037,400
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (Milford-
Whitinsville Hospital), 6.35s, 2032 50 50,304
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Massachusetts Biomedical Research),
0s, 2004 5,000 4,945,450
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Massachusetts Biomedical Research),
0s, 2010 5,300 4,161,401
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Health & Educational
(Baystate Medical Center), Series F,
5.75s, 2033 2,000 2,072,740
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Health & Educational
(Caritas Christi Obligation), Series B,
6.25s, 2022 20 19,474
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Health & Educational
(Catholic Health East Issue),
5.5s, 2032 1,575 1,579,930
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Health & Educational
(New England Medical Center Hospital),
Series H, FGIC, 5.375s, 2019 815 875,864
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Health & Educational
(New England Medical Center) Hospital,
Series H, FGIC, 5.375s, 2018 1,000 1,083,670
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Health & Educational,
Healthcare Systems (Covenant Health),
6.5s, 2017 75 82,615
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Health & Educational,
Healthcare Systems (Covenant Health), 6s, 2031 1,000 1,036,160
- -----------------------------------------------------------------------------------------------------------------------------
$30,327,627
- -----------------------------------------------------------------------------------------------------------------------------
Human Services - 0.6% Massachusetts Health & Education
Facilities Authority Rev. (Learning Center
for Deaf Children), 6.1s, 2019 $1,000 $996,380
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Vinfen Corp.), 7.1s, 2003(+++) 570 585,493
- -----------------------------------------------------------------------------------------------------------------------------
$1,581,873
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Massachusetts Development Finance Agency
Environmental Services - 0.4% Rev., Resource Recovery Rev. (Waste
Management, Inc.), 6.9s, 2029 $1,000 $1,107,150
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Massachusetts Development Finance Agency
Other - 1.4% Rev. (Springfield Resources Recovery),
5.625s, 2019 $1,675 $1,740,961
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Welch Foods, Inc.), 5.6s, 2017 2,100 2,210,439
- -----------------------------------------------------------------------------------------------------------------------------
$3,951,400
- -----------------------------------------------------------------------------------------------------------------------------
Industrial Revenue - Route 3 North Transport Improvement, MA,
Paper - 1.2% MBIA, 5.375s, 2010(+++) $2,900 $3,353,183
- -----------------------------------------------------------------------------------------------------------------------------
Miscellaneous Revenue - Massachusetts State Development Finance
Other - 1.5% Agency (Comb Jewish Philathropies) A,
5.25s, 2022 $1,000 $1,060,790
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Development Finance
Agency, WGBH Educational Foundation,
Series A, AMBAC, 5.375s, 2042 3,000 3,107,280
- -----------------------------------------------------------------------------------------------------------------------------
$4,168,070
- -----------------------------------------------------------------------------------------------------------------------------
Multi-Family Housing Massachusetts Housing Finance Agency Rev.,
Revenue - 1.2% AMBAC, 5.7s, 2020 $1,515 $1,573,994
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Housing Finance Agency Rev.,
FNMA, 6.9s, 2025 1,700 1,745,798
- -----------------------------------------------------------------------------------------------------------------------------
$3,319,792
- -----------------------------------------------------------------------------------------------------------------------------
Parking - 0.5% Rail Connections, Inc., MA (Route 128
Parking Garage), 6s, 2009(+++) $450 $543,465
- -----------------------------------------------------------------------------------------------------------------------------
Rail Connections, Inc., MA (Route 128
Parking Garage), 6s, 2009(+++) 500 603,850
- -----------------------------------------------------------------------------------------------------------------------------
Rail Connections, Inc., MA (Route 128
Parking Garage), 6s, 2009(+++) 250 301,925
- -----------------------------------------------------------------------------------------------------------------------------
$1,449,240
- -----------------------------------------------------------------------------------------------------------------------------
Sales and Excise Tax Route 3 North Transport Improvement
Revenue - 0.6% Associates, MBIA, 5.625s, 2010(+++) $1,500 $1,757,175
- -----------------------------------------------------------------------------------------------------------------------------
Single Family Housing Revenue - Massachusetts Housing Finance Agency Rev.,
State - 2.4% 6.6s, 2026 $420 $433,599
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Housing Finance Agency Rev.,
Amt Single Family, Series 79, FSA, 5.85s, 2021 585 615,157
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev., MBIA, 6.35s, 2022 1,205 1,258,719
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Housing Finance
Agency, Amt Single Family, Series 93,
5.05s, 2020 1,240 1,260,770
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Housing Finance
Agency, Single Family, Series 91,
5.5s, 2031 2,895 2,963,525
- -----------------------------------------------------------------------------------------------------------------------------
$6,531,770
- -----------------------------------------------------------------------------------------------------------------------------
Solid Waste Revenue - 1.4% Massachusetts Development Finance Agency
Rev., Resources Recovery Rev. (Ogden
Haverhill), 6.7s, 2014 $600 $632,358
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Development Finance Agency
Rev., Semass Systems, Series B, MBIA,
5.625s, 2016 1,125 1,257,266
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Ogden Haverhill), 5.5s, 2013 25 24,422
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev., Resources Recovery Rev. (Ogden
Haverhill), 5.6s, 2019 1,925 1,818,182
- -----------------------------------------------------------------------------------------------------------------------------
$3,732,228
- -----------------------------------------------------------------------------------------------------------------------------
State and Local Massachusetts Bay Transportation
Appropriation - 3.8% Authority, 5.75s, 2018 $3,780 $4,291,774
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Development Finance Agency
Rev. (Visual & Performing Arts),
6s, 2015 1,235 1,491,608
- -----------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES,
AMBAC, 9.458s, 2016(++)+ 2,500 3,279,150
- -----------------------------------------------------------------------------------------------------------------------------
University of Massachusetts, Building
Authority, AMBAC, 5.5s, 2018 1,400 1,555,708
- -----------------------------------------------------------------------------------------------------------------------------
$10,618,240
- -----------------------------------------------------------------------------------------------------------------------------
Student Loan Revenue - 2.4% Massachusetts Educational Financing
Authority, AMBAC, 5.3s, 2016 $2,050 $2,177,305
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Educational Financing
Authority, MBIA, 6.05s, 2017 90 96,779
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Educational Financing
Authority, Refunding Series E, AMBAC,
4.6s, 2010 3,000 3,150,390
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Educational Financing
Authority, Refunding Series E, AMBAC,
5s, 2013 1,000 1,058,420
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Educational Financing
Authority, Refunding Series E, AMBAC,
5s, 2015 100 103,644
- -----------------------------------------------------------------------------------------------------------------------------
$6,586,538
- -----------------------------------------------------------------------------------------------------------------------------
Tax - Other - 1.6% Virgin Islands Public Finance Authority
Rev., Series A, 5.5s, 2022 $2,950 $3,009,767
- -----------------------------------------------------------------------------------------------------------------------------
Virgin Islands Public Finance Authority
Rev., 5.875s, 2018 1,420 1,463,310
- -----------------------------------------------------------------------------------------------------------------------------
$4,473,077
- -----------------------------------------------------------------------------------------------------------------------------
Tobacco - 0.2% Childrens Trust Fund, Settlement Rev.,
5.375s, 2033 $725 $647,875
- -----------------------------------------------------------------------------------------------------------------------------
Transportation - Special Massachusetts Bay Transportation
Tax - 3.4% Authority, XLCA, 7s, 2021 $5,000 $6,494,650
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Bay Transportation
Authority, Assessment, Series A, 5.25s, 2030 2,930 3,014,941
- -----------------------------------------------------------------------------------------------------------------------------
$9,509,591
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Colleges - 18.9% Commonwealth of Massachusetts, College
Building, MBIA, 5.625s, 2016 $1,650 $1,937,826
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Development Finance Agency
Rev. (Eastern Nazarine College), 5.625s, 2019 1,800 1,477,836
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Development Finance Agency
Rev. (Higher Education Smith College),
5.375s, 2010(+++) 1,335 1,555,943
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Development Finance Agency
Rev. (Higher Education Smith College),
5.5s, 2010(+++) 1,210 1,419,487
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Development Finance Agency
Rev. (Massachusetts College of Pharmacy),
6.625s, 2020 50 54,220
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Development Finance Agency
Rev. (Mount Holyoke College), 5.125s, 2021 1,000 1,052,540
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Development Finance Agency
Rev. (Suffolk University),
5.75s, 2019 1,000 1,053,480
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Development Finance Agency
Rev. (Suffolk University),
5.85s, 2029 1,000 1,033,490
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (Wheelock
College), MBIA, 5.5s, 2021 3,375 3,685,601
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (University of
Massachusetts), FGIC, 5.625s, 2018 2,170 2,449,453
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (Boston
College), 5.25s, 2018 35 35,831
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (Boston
College), 5.25s, 2023 4,350 4,447,875
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (Simmons
College), AMBAC, 6.05s, 2020 1,745 2,104,993
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (University of
Massachusetts), FGIC, 5.125s, 2019 1,780 1,904,831
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (University of
Massachusetts), FGIC, 5.75s, 2019 2,395 2,732,959
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (University of
Massachusetts), FGIC, 5.85s, 2020 1,300 1,482,754
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Health & Education
Facilities Authority Rev. (Wheaton
College), 5.25s, 2019 1,000 1,040,060
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Curry College), 8s, 2004(+++) 1,475 1,565,639
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Brandeis University), MBIA,
0s, 2004 1,000 988,470
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Brandeis University), MBIA,
0s, 2009 1,000 838,250
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Brandeis University), MBIA,
0s, 2010 1,000 794,680
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Brandeis University), MBIA,
0s, 2011 500 375,885
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Curry College), 8s, 2004(+++) 350 374,906
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Lesley College), CONNIE LEE, 6.3s, 2025 2,000 2,193,680
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State College Building,
Refunding Xl Capital Assurance, Series A,
XLCA, 5.25s, 2023 1,000 1,043,880
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Development Finance
Agency (Boston University), XLCA,
6s, 2059 1,500 1,683,360
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Development Finance
Agency (Massachusetts College Of
Pharmacy), Series C, 5.75s, 2033 1,000 1,000,240
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Development Finance
Agency (Western New England), 6.125s, 2032 1,115 1,130,387
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Development Finance
Agency, College Issue, Series B, XLCA,
5.25s, 2033 3,000 3,074,250
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Health & Educational
(Simmons College), Series F, FGIC,
5s, 2021 1,260 1,324,235
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Health & Educational
(Simmons College), Series F, FGIC,
5s, 2023 500 512,835
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Health & Educational
(Wellseley College), Series H, 5s, 2021 1,175 1,235,501
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts State Health & Educational
(Worcester City University) Massachusetts
Project C, MBIA, 5.25s, 2031 3,000 3,096,120
- -----------------------------------------------------------------------------------------------------------------------------
University of Massachusetts Building
Authority Project, Refunding Senior,
Series 1, AMBAC, 5.25s, 2023 1,500 1,574,760
- -----------------------------------------------------------------------------------------------------------------------------
$52,276,257
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Massachusetts Development Finance Agency
Dormatories - 0.2% Rev., Education Middlesex School Project,
5.125s, 2023 $500 $519,655
- -----------------------------------------------------------------------------------------------------------------------------
Universities - Secondary Massachusetts Development Finance Agency
Schools - 4.4% Rev. (Williston Northampton School), 6.5s, 2028 1,300 1,357,577
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Development Finance Agency
Rev. (Xaverian Brothers High School),
5.55s, 2019 1,000 1,051,780
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Development Finance Agency
Rev. (Xaverian Brothers High School),
5.65s, 2029 1,000 1,014,940
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Dana Hall School), 5.9s, 2027 1,340 1,370,914
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Belmont Hill School),
5.625s, 2020 1,150 1,228,349
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Concord Academy), 5.5s, 2027 2,000 2,025,560
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Groton School), 5s, 2018 2,960 3,129,223
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Industrial Finance Agency
Rev. (Tabor Academy), 5.4s, 2018 1,000 1,044,540
- -----------------------------------------------------------------------------------------------------------------------------
$12,222,883
- -----------------------------------------------------------------------------------------------------------------------------
Utilities - Municipal Massachusetts Development Finance Agency
Owned - 0.3% Rev. (Devens Electric Systems), 5.625s, 2016 $725 $781,876
- -----------------------------------------------------------------------------------------------------------------------------
Water and Sewer Utility Massachusetts Water Pollution Abatement,
Revenue - 6.0% 5.75s, 2017 $1,125 $1,279,800
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Water Pollution Abatement
Trust, 5.5s, 2013 25 28,396
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Water Pollution Rev., 5.25s, 2018 2,000 2,158,400
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Water Resources Authority,
MBIA, 5.25s, 2004(+++) 50 53,465
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Water Resources Authority,
AMBAC, 5.25s, 2015 1,500 1,708,290
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Water Resources Authority,
MBIA, 5s, 2016 1,000 1,070,950
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Water Resources Authority,
MBIA, 5.25s, 2020 1,535 1,586,683
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Water Resources Authority,
FGIC, 6s, 2021 1,000 1,153,290
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Water Resources Authority,
General Series J, FSA, 5s, 2023 500 511,530
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Water Resources Authority,
RITES, FGIC, 11.482s, 2019(++)+ 4,010 5,942,740
- -----------------------------------------------------------------------------------------------------------------------------
Springfield, MA, Street & Sewer
Commission, General Series A, AMBAC,
5s, 2021 1,000 1,052,450
- -----------------------------------------------------------------------------------------------------------------------------
$16,545,994
- -----------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds (Identified Cost, $246,625,736) $268,627,756
- -----------------------------------------------------------------------------------------------------------------------------
Floating Rate Demand Notes - 0.9%
- -----------------------------------------------------------------------------------------------------------------------------
Massachusetts Water Resources Authority,
due 10/01/03 $900 $900,000
- -----------------------------------------------------------------------------------------------------------------------------
MSR Public Power Agency, CA, due 10/01/03 800 800,000
- -----------------------------------------------------------------------------------------------------------------------------
Sevier County, TN, Public Building
Authority, due 10/01/03 400 400,000
- -----------------------------------------------------------------------------------------------------------------------------
Uinta County, WY, Pollution Control Rev.
Chevron USA, Inc., due 10/01/03 300 300,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Floating Rate Demand Notes (Identified Cost, $2,400,000) $2,400,000
- -----------------------------------------------------------------------------------------------------------------------------
Total Investments (Identified Cost, $249,025,736) $271,027,756
- -----------------------------------------------------------------------------------------------------------------------------
Other Assets, Less Liabilities - 2.0% 5,480,263
- -----------------------------------------------------------------------------------------------------------------------------
Net assets - 100.0% $276,508,019
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio Footnotes:
(++) Inverse floating rate security.
(+++) Refunded bond.
+ Restricted security.
** Non-income producing security in default.
The following abbreviations for insurers and inverse floaters are used in the Portfolio of Investments and are defined
as such:
Insurers: Inverse Floaters:
AMBAC -- AMBAC Indemnity Corp. RIBS -- Residential Interest Bonds
ASST GTY -- Asset Guaranty Insurance Co. RITES -- Residual Interest Tax-Exempt Securities
CONNIE LEE -- Connie Lee Insurance Co. ROLS -- Residual Option Longs
ETM -- Escrowed to Maturity
FGIC -- Financial Guaranty Insurance Co.
FHA -- Federal Housing Administration
FNMA -- Federal National Mortgage Assn.
FSA -- Financial Security Assurance, Inc.
GNMA -- Government National Mortgage Assn.
LOC -- Letter of Credit
MBIA -- Municipal Bond Investors Assurance Corp.
XLCA -- XL Capital Insurance Co.
See notes to financial statements.
- ---------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)
- ---------------------------------------------------------------------------------------------------------------------------
This is your fund's balance sheet. It shows the value of what the fund owns, how much it owes, and its resulting net assets.
ALABAMA ARKANSAS CALIFORNIA FLORIDA
At 9/30/03 FUND FUND FUND FUND
ASSETS
Investments -
Identified cost $90,111,710 $135,811,969 $418,049,507 $95,164,244
- ---------------------------------------------------------------------------------------------------------------------------
Unrealized appreciation 8,525,834 13,117,618 29,170,358 7,456,085
- ---------------------------------------------------------------------------------------------------------------------------
Total investments, at value $98,637,544 $148,929,587 $447,219,865 $102,620,329
- ---------------------------------------------------------------------------------------------------------------------------
Cash 40,086 96,491 72,347 90,665
- ---------------------------------------------------------------------------------------------------------------------------
Receivable for investments sold 310,000 831,365 20,491 4,635,378
- ---------------------------------------------------------------------------------------------------------------------------
Receivable for fund shares sold 209,707 19,723 227,036 96,879
- ---------------------------------------------------------------------------------------------------------------------------
Interest receivable 1,523,923 2,153,612 5,578,810 1,994,012
- ---------------------------------------------------------------------------------------------------------------------------
Other assets 3,303 -- 1,779 1,282
- ---------------------------------------------------------------------------------------------------------------------------
Total assets $100,724,563 $152,030,778 $453,120,328 $109,438,545
- ---------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Distributions payable $357,154 $524,510 $1,695,130 $399,403
- ---------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased -- 1,004,500 -- --
- ---------------------------------------------------------------------------------------------------------------------------
Payable for fund shares
reacquired 95,127 84,440 1,515,750 1,605,766
- ---------------------------------------------------------------------------------------------------------------------------
Interest payable on swaps 3,394 4,339 14,232 2,058
- ---------------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on
interest rate swaps 31,763 42,019 137,231 22,578
- ---------------------------------------------------------------------------------------------------------------------------
Unrealized depreciation on rate
lock swaps 29,253 294,048 734,961 178,950
- ---------------------------------------------------------------------------------------------------------------------------
Payable to affiliates -
Management fee 947 1,419 4,269 1,031
- ---------------------------------------------------------------------------------------------------------------------------
Shareholder servicing agent fee 298 447 1,342 323
- ---------------------------------------------------------------------------------------------------------------------------
Distribution and service fee 1,032 11,632 83,335 8,793
- ---------------------------------------------------------------------------------------------------------------------------
Accrued expenses and other
liabilities 50,121 87,222 132,656 51,895
- ---------------------------------------------------------------------------------------------------------------------------
Total liabilities $569,089 $2,054,576 $4,318,906 $2,270,797
- ---------------------------------------------------------------------------------------------------------------------------
Net assets $100,155,474 $149,976,202 $448,801,422 $107,167,748
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF
Paid-in capital $92,261,822 $143,805,137 $423,934,096 $102,370,094
- ---------------------------------------------------------------------------------------------------------------------------
Unrealized appreciation on
investments 8,464,818 12,781,551 28,298,166 7,254,557
- ---------------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on
investments (302,104) (6,264,935) (1,979,891) (2,264,675)
- ---------------------------------------------------------------------------------------------------------------------------
Accumulated distributions in
excess of net investment income (269,062) (345,551) (1,450,949) (192,228)
- ---------------------------------------------------------------------------------------------------------------------------
Total net assets $100,155,474 $149,976,202 $448,801,422 $107,167,748
- ---------------------------------------------------------------------------------------------------------------------------
Statements of Assets and Liabilities (Unaudited) - continued
ALABAMA ARKANSAS CALIFORNIA FLORIDA
FUND FUND FUND FUND
Shares of beneficial interest outstanding
Class A 7,597,056 13,192,394 53,821,871 8,231,173
- ---------------------------------------------------------------------------------------------------------------------------
Class B 1,611,446 1,231,367 15,534,211 2,266,401
- ---------------------------------------------------------------------------------------------------------------------------
Class C -- -- 6,240,421 --
- ---------------------------------------------------------------------------------------------------------------------------
Total shares of beneficial
interest outstanding 9,208,502 14,423,761 75,596,503 10,497,574
- ---------------------------------------------------------------------------------------------------------------------------
Net assets
Class A $82,635,489 $137,160,496 $319,422,587 $84,032,711
- ---------------------------------------------------------------------------------------------------------------------------
Class B 17,519,985 12,815,706 92,220,281 23,135,037
- ---------------------------------------------------------------------------------------------------------------------------
Class C -- -- 37,158,554 --
- ---------------------------------------------------------------------------------------------------------------------------
Total net assets $100,155,474 $149,976,202 $448,801,422 $107,167,748
- ---------------------------------------------------------------------------------------------------------------------------
Class A shares
Net asset value per share
(net assets/shares of beneficial
interest outstanding) $10.88 $10.40 $5.93 $10.21
- ---------------------------------------------------------------------------------------------------------------------------
Offering price per share
(100/95.25 of net asset value per share) $11.42 $10.92 $6.23 $10.72
- ---------------------------------------------------------------------------------------------------------------------------
Class B shares
Net asset value and offering price per
share (net assets/shares of beneficial
interest outstanding) $10.87 $10.41 $5.94 $10.21
- ---------------------------------------------------------------------------------------------------------------------------
Class C shares
Net asset value and offering price per
share (net assets/shares of beneficial
interest outstanding) $-- $-- $5.95 $--
- ---------------------------------------------------------------------------------------------------------------------------
On sales of $100,000 or more, the offering price of Class A shares is reduced.
A contingent deferred sales charge may be imposed on redemptions of Class A, Class B, and Class C shares.
See notes to financial statements.
Statements of Assets and Liabilities (Unaudited) - continued
GEORGIA MARYLAND MASSACHUSETTS
At 9/30/03 FUND FUND FUND
ASSETS
Investments -
Identified cost $63,301,590 $155,994,786 $249,025,736
- ----------------------------------------------------------------------------------------------------------------
Unrealized appreciation 6,480,279 15,158,387 22,002,020
- ----------------------------------------------------------------------------------------------------------------
Total investments, at value $69,781,869 $171,153,173 $271,027,756
- ----------------------------------------------------------------------------------------------------------------
Cash 54,142 38,205 46,419
- ----------------------------------------------------------------------------------------------------------------
Receivable for investments sold 2,723,090 687,588 3,697,464
- ----------------------------------------------------------------------------------------------------------------
Receivable for fund shares sold 315 45,978 123,767
- ----------------------------------------------------------------------------------------------------------------
Interest receivable 1,199,510 2,290,507 3,864,767
- ----------------------------------------------------------------------------------------------------------------
Other assets 472 974 3,386
- ----------------------------------------------------------------------------------------------------------------
Total assets $73,759,398 $174,216,425 $278,763,559
- ----------------------------------------------------------------------------------------------------------------
LIABILITIES
Distributions payable $258,929 $618,227 $996,986
- ----------------------------------------------------------------------------------------------------------------
Payable for investments purchased -- -- 509,296
- ----------------------------------------------------------------------------------------------------------------
Payable for fund shares reacquired 342,766 192,663 93,816
- ----------------------------------------------------------------------------------------------------------------
Interest payable on swaps 2,379 3,300 8,167
- ----------------------------------------------------------------------------------------------------------------
Unrealized depreciation on interest rate swaps 22,674 36,870 79,177
- ----------------------------------------------------------------------------------------------------------------
Unrealized depreciation on rate lock swaps 263,699 117,962 477,956
- ----------------------------------------------------------------------------------------------------------------
Payable to affiliates -
Management fee 691 1,641 2,619
- ----------------------------------------------------------------------------------------------------------------
Shareholder servicing agent fee 217 515 823
- ----------------------------------------------------------------------------------------------------------------
Distribution and service fee 841 2,233 3,464
- ----------------------------------------------------------------------------------------------------------------
Accrued expenses and other liabilities 50,259 72,757 83,236
- ----------------------------------------------------------------------------------------------------------------
Total liabilities $942,455 $1,046,168 $2,255,540
- ----------------------------------------------------------------------------------------------------------------
Net assets $72,816,943 $173,170,257 $276,508,019
- ----------------------------------------------------------------------------------------------------------------
NET ASSETS CONSIST OF
Paid-in capital $67,384,577 $161,843,874 $257,458,017
- ----------------------------------------------------------------------------------------------------------------
Unrealized appreciation on investments 6,193,906 15,003,555 21,444,887
- ----------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (553,143) (3,247,632) (1,512,607)
- ----------------------------------------------------------------------------------------------------------------
Accumulated distributions in excess of net
investment income (208,397) (429,540) (882,278)
- ----------------------------------------------------------------------------------------------------------------
Total net assets $72,816,943 $173,170,257 $276,508,019
- ----------------------------------------------------------------------------------------------------------------
Statements of Assets and Liabilities (Unaudited) - continued
GEORGIA MARYLAND MASSACHUSETTS
FUND FUND FUND
Shares of beneficial interest outstanding
Class A 4,987,142 11,895,580 19,906,811
- ----------------------------------------------------------------------------------------------------------------
Class B 1,526,022 2,872,042 4,170,418
- ----------------------------------------------------------------------------------------------------------------
Total shares of beneficial interest
outstanding 6,513,164 14,767,622 24,077,229
- ----------------------------------------------------------------------------------------------------------------
Net assets
Class A $55,743,631 $139,507,426 $228,553,129
- ----------------------------------------------------------------------------------------------------------------
Class B 17,073,312 33,662,831 47,954,890
- ----------------------------------------------------------------------------------------------------------------
Total net assets $72,816,943 $173,170,257 $276,508,019
- ----------------------------------------------------------------------------------------------------------------
Class A shares
Net asset value per share (net assets/shares
of beneficial interest outstanding) $11.18 $11.73 $11.48
- ----------------------------------------------------------------------------------------------------------------
Offering price per share (100/95.25 of net
asset value per share) $11.74 $12.31 $12.05
- ----------------------------------------------------------------------------------------------------------------
Class B shares
Net asset value and offering price per share
(net assets/shares of beneficial interest
outstanding) $11.19 $11.72 $11.50
- ----------------------------------------------------------------------------------------------------------------
On sales of $100,000 or more, the offering price of Class A shares is reduced.
A contingent deferred sales charge may be imposed on redemptions of Class A
and Class B shares.
See notes to financial statements.
- -----------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS STATEMENTS OF OPERATIONS (Unaudited)
- -----------------------------------------------------------------------------------------------------------------------------
This is a summary of the investment income your fund earned as well as gains
and (losses) for the period. Fund expenses are spelled out.
ALABAMA ARKANSAS CALIFORNIA FLORIDA
FUND FUND FUND FUND
For six months ended 9/30/03
NET INVESTMENT INCOME
Interest income $2,636,813 $3,711,535 $12,467,161 $2,897,227
- -----------------------------------------------------------------------------------------------------------------------------
Expenses -
Management fee $276,618 $410,909 $1,284,703 $307,660
- -----------------------------------------------------------------------------------------------------------------------------
Trustees' compensation 3,252 3,219 6,155 3,196
- -----------------------------------------------------------------------------------------------------------------------------
Shareholder servicing agent fee 55,105 81,867 255,893 61,288
- -----------------------------------------------------------------------------------------------------------------------------
Distribution and service fee (Class A) 104,088 68,172 163,333 --
- -----------------------------------------------------------------------------------------------------------------------------
Distribution and service fee (Class B) 84,599 57,850 444,786 100,276
- -----------------------------------------------------------------------------------------------------------------------------
Distribution and service fee (Class C) -- -- 205,212 --
- -----------------------------------------------------------------------------------------------------------------------------
Administrative fee 5,556 8,164 25,933 6,175
- -----------------------------------------------------------------------------------------------------------------------------
Custodian fee 24,018 34,348 99,014 25,720
- -----------------------------------------------------------------------------------------------------------------------------
Printing 3,530 6,031 19,502 4,026
- -----------------------------------------------------------------------------------------------------------------------------
Postage 668 1,282 4,113 814
- -----------------------------------------------------------------------------------------------------------------------------
Auditing fees 17,020 17,086 17,020 17,020
- -----------------------------------------------------------------------------------------------------------------------------
Legal fees 991 510 5,806 807
- -----------------------------------------------------------------------------------------------------------------------------
Miscellaneous 39,904 91,229 97,331 47,651
- -----------------------------------------------------------------------------------------------------------------------------
Total expenses $615,349 $780,667 $2,628,801 $574,633
- -----------------------------------------------------------------------------------------------------------------------------
Fees paid indirectly (1,522) (1,820) (4,672) (1,321)
- -----------------------------------------------------------------------------------------------------------------------------
Reduction of expenses by investment
adviser (101,285) (150,422) (470,499) (112,651)
- -----------------------------------------------------------------------------------------------------------------------------
Net expenses $512,542 $628,425 $2,153,630 $460,661
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income $2,124,271 $3,083,110 $10,313,531 $2,436,566
- -----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) (identified cost basis) -
Investment transactions $(75,900) $(497,573) $474,829 $85,280
- -----------------------------------------------------------------------------------------------------------------------------
Swap transactions (236,745) -- (178,848) (40,241)
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on
investments $(312,645) $(497,573) $295,981 $45,039
- -----------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) -
Investments $730,352 $763,960 $(2,149,920) $194,804
- -----------------------------------------------------------------------------------------------------------------------------
Swap transactions 118,929 (262,192) (338,125) (91,589)
- -----------------------------------------------------------------------------------------------------------------------------
Net unrealized gain (loss) on
investments $849,281 $501,768 $(2,488,045) $103,215
- -----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments $536,636 $4,195 $(2,192,064) $148,254
- -----------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
operations $2,660,907 $3,087,305 $8,121,467 $2,584,820
- -----------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
Statements of Operations (Unaudited) - continued
GEORGIA MARYLAND MASSACHUSETTS
FUND FUND FUND
For six months ended 9/30/03
NET INVESTMENT INCOME
Interest income $1,967,534 $4,625,772 $7,469,135
- -------------------------------------------------------------------------------------------------------------------
Expenses -
Management fee $205,320 $478,014 $772,130
- -------------------------------------------------------------------------------------------------------------------
Trustees' compensation 2,211 3,500 6,046
- -------------------------------------------------------------------------------------------------------------------
Shareholder servicing agent fee 40,897 95,228 153,811
- -------------------------------------------------------------------------------------------------------------------
Distribution and service fee (Class A) 70,943 243,620 405,604
- -------------------------------------------------------------------------------------------------------------------
Distribution and service fee (Class B) 88,019 169,657 239,418
- -------------------------------------------------------------------------------------------------------------------
Administrative fee 4,129 9,534 15,527
- -------------------------------------------------------------------------------------------------------------------
Custodian fee 18,024 39,754 64,361
- -------------------------------------------------------------------------------------------------------------------
Printing 3,410 8,421 12,079
- -------------------------------------------------------------------------------------------------------------------
Postage 535 1,974 2,571
- -------------------------------------------------------------------------------------------------------------------
Auditing fees 17,016 17,020 17,020
- -------------------------------------------------------------------------------------------------------------------
Legal fees 965 1,025 8,308
- -------------------------------------------------------------------------------------------------------------------
Miscellaneous 33,318 65,184 72,899
- -------------------------------------------------------------------------------------------------------------------
Total expenses $484,787 $1,132,931 $1,769,774
- -------------------------------------------------------------------------------------------------------------------
Fees paid indirectly (1,301) (1,841) (2,985)
- -------------------------------------------------------------------------------------------------------------------
Reduction of expenses by investment adviser (75,193) (175,014) (282,730)
- -------------------------------------------------------------------------------------------------------------------
Net expenses $408,293 $956,076 $1,484,059
- -------------------------------------------------------------------------------------------------------------------
Net investment income $1,559,241 $3,669,696 $5,985,076
- -------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) (identified cost basis) -
Investment transactions $41,311 $39,086 $624,208
- -------------------------------------------------------------------------------------------------------------------
Swap transactions (127,316) (259,102) (102,838)
- -------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments $(86,005) $(220,016) $521,370
- -------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) -
Investments $281,719 $762,554 $(338,474)
- -------------------------------------------------------------------------------------------------------------------
Swap transactions (127,308) 77,263 (249,881)
- -------------------------------------------------------------------------------------------------------------------
Net unrealized gain (loss) on investments $154,411 $839,817 $(588,355)
- -------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on
investments $68,406 $619,801 $(66,985)
- -------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations $1,627,647 $4,289,497 $5,918,091
- -------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
- -----------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS STATEMENTS OF CHANGES IN NET ASSETS (Unaudited)
- -----------------------------------------------------------------------------------------------------------------
This Statement gives you a summary of income and gains (losses) separated by share class.
ALABAMA ARKANSAS CALIFORNIA FLORIDA
FUND FUND FUND FUND
For six months ended 9/30/03
OPERATIONS
Net investment income $2,124,271 $3,083,110 $10,313,531 $2,436,566
- -------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on
investments (312,645) (497,573) 295,981 45,039
- -------------------------------------------------------------------------------------------------------------------------
Net unrealized gain (loss) on
investments 849,281 501,768 (2,488,045) 103,215
- -------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations $2,660,907 $3,087,305 $8,121,467 $2,584,820
- -------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income
Class A $(1,870,691) $(3,013,444) $(7,839,509) $(2,001,177)
- -------------------------------------------------------------------------------------------------------------------------
Class B (315,876) (223,658) (1,937,512) (463,851)
- -------------------------------------------------------------------------------------------------------------------------
Class C -- -- (798,048) --
- -------------------------------------------------------------------------------------------------------------------------
Total distributions declared to
shareholders $(2,186,567) $(3,237,102) $(10,575,069) $(2,465,028)
- -------------------------------------------------------------------------------------------------------------------------
FUND SHARE (PRINCIPAL) TRANSACTIONS
Net proceeds from sale of shares $7,382,625 $8,983,608 $35,804,162 $7,090,633
- -------------------------------------------------------------------------------------------------------------------------
Net asset value of shares issued
to shareholders in reinvestment
of distributions 1,308,584 1,919,007 5,926,815 1,154,487
- -------------------------------------------------------------------------------------------------------------------------
Cost of shares reacquired (9,647,501) (7,346,885) (63,517,342) (12,417,869)
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net
assets from fund share transactions $(956,292) $3,555,730 $(21,786,365) $(4,172,749)
- -------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net
assets $(481,952) $3,405,933 $(24,239,967) $(4,052,957)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of period 100,637,426 146,570,269 473,041,389 111,220,705
- -------------------------------------------------------------------------------------------------------------------------
At end of period $100,155,474 $149,976,202 $448,801,422 $107,167,748
- -------------------------------------------------------------------------------------------------------------------------
Accumulated distributions in excess
of net investment income included
in net assets at end of period $(269,062) $(345,551) $(1,450,949) $(192,228)
- -------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
Statements of Changes in Net Assets (Unaudited) - continued
GEORGIA MARYLAND MASSACHUSETTS
FUND FUND FUND
For six months ended 9/30/03
OPERATIONS
Net investment income $1,559,241 $3,669,696 $5,985,076
- ---------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (86,005) (220,016) 521,370
- ---------------------------------------------------------------------------------------------------------------
Net unrealized gain (loss) on investments 154,411 839,817 (588,355
- ---------------------------------------------------------------------------------------------------------------
Increase in net assets from operations $1,627,647 $4,289,497 $5,918,091
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income
Class A $(1,256,575) $(3,118,627) $(5,223,830)
- ---------------------------------------------------------------------------------------------------------------
Class B (323,195) (648,710) (921,901)
- ---------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $(1,579,770) $(3,767,337) $(6,145,731)
- ---------------------------------------------------------------------------------------------------------------
FUND SHARE (PRINCIPAL) TRANSACTIONS
Net proceeds from sale of shares $4,557,613 $7,382,767 $15,721,803
- ---------------------------------------------------------------------------------------------------------------
Net asset value of shares issued to shareholders
in reinvestment of distributions 1,013,942 2,301,956 3,088,321
- ---------------------------------------------------------------------------------------------------------------
Cost of shares reacquired (8,515,317) (9,735,365) (23,186,434)
- ---------------------------------------------------------------------------------------------------------------
Net decrease in net assets from fund share
transactions $(2,943,762) $(50,642) $(4,376,310)
- ---------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets $(2,895,885) $471,518 $(4,603,950)
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of period 75,712,828 172,698,739 281,111,969
- ---------------------------------------------------------------------------------------------------------------
At end of period $72,816,943 $173,170,257 $276,508,019
- ---------------------------------------------------------------------------------------------------------------
Accumulated distributions in excess of net
investment income included in
net assets at end of period $(208,397) $(429,540) $(882,278)
- ---------------------------------------------------------------------------------------------------------------
See notes to financial statements.
Statements of Changes in Net Assets - continued
ALABAMA ARKANSAS CALIFORNIA FLORIDA
FUND FUND FUND FUND
For year ended 3/31/03
OPERATIONS
Net investment income $4,315,172 $6,249,872 $20,643,925 $4,654,968
- -------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments 43,290 449,903 2,048,802 (24,359)
- -------------------------------------------------------------------------------------------------------------------------
Net unrealized gain on investments 4,951,882 5,537,435 18,507,096 4,096,366
- -------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations $9,310,344 $12,237,210 $41,199,823 $8,726,975
- -------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income
Class A $(3,888,526) $(6,237,037) $(15,987,815) $(3,878,441)
- -------------------------------------------------------------------------------------------------------------------------
Class B (602,448) (413,995) (3,807,377) (1,009,895)
- -------------------------------------------------------------------------------------------------------------------------
Class C -- -- (1,632,498) --
- -------------------------------------------------------------------------------------------------------------------------
From net realized gain on investments
Class A (88,213) -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Class B (17,098) -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Total distributions declared to
shareholders $(4,596,285) $(6,651,032) $(21,427,690) $(4,888,336)
- -------------------------------------------------------------------------------------------------------------------------
FUND SHARE (PRINCIPAL) TRANSACTIONS
Net proceeds from sale of shares $17,945,102 $23,428,402 $104,546,628 $35,587,519
- -------------------------------------------------------------------------------------------------------------------------
Net asset value of shares issued to
shareholders in reinvestment
of distributions 2,724,678 3,731,803 11,607,493 2,200,811
- -------------------------------------------------------------------------------------------------------------------------
Cost of shares reacquired (21,471,437) (14,204,886) (87,728,801) (22,516,757)
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from fund share transactions $(801,657) $12,955,319 $28,425,320 $15,271,573
- -------------------------------------------------------------------------------------------------------------------------
Total increase in net assets $3,912,402 $18,541,497 $48,197,453 $19,110,212
- -------------------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of period 96,725,024 128,028,772 424,843,936 92,110,493
- -------------------------------------------------------------------------------------------------------------------------
At end of period $100,637,426 $146,570,269 $473,041,389 $111,220,705
- -------------------------------------------------------------------------------------------------------------------------
Accumulated distributions in excess
of net investment income included in
net assets at end of period $(206,766) $(191,559) $(1,189,411) $(163,766)
- -------------------------------------------------------------------------------------------------------------------------
See notes to financial statements.
Statements of Changes in Net Assets - continued
GEORGIA MARYLAND MASSACHUSETTS
FUND FUND FUND
For year ended 3/31/03
OPERATIONS
Net investment income $3,141,171 $7,346,733 $11,932,377
- ---------------------------------------------------------------------------------------------------------------
Net realized gain on investments 423,201 173,271 111,495
- ---------------------------------------------------------------------------------------------------------------
Net unrealized gain on investments 3,279,309 6,851,740 13,663,176
- ---------------------------------------------------------------------------------------------------------------
Increase in net assets from operations $6,843,681 $14,371,744 $25,707,048
- ---------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income
Class A $(2,599,347) $(6,249,737) $(10,462,169)
- ---------------------------------------------------------------------------------------------------------------
Class B (643,566) (1,319,733) (1,744,658)
- ---------------------------------------------------------------------------------------------------------------
Total distributions declared to shareholders $(3,242,913) $(7,569,470) $(12,206,827)
- ---------------------------------------------------------------------------------------------------------------
FUND SHARE (PRINCIPAL) TRANSACTIONS
Net proceeds from sale of shares $11,386,532 $18,299,728 $51,342,873
- ---------------------------------------------------------------------------------------------------------------
Net asset value of shares issued to
shareholders in reinvestment
of distributions 2,137,662 4,625,111 6,030,522
- ---------------------------------------------------------------------------------------------------------------
Cost of shares reacquired (11,622,400) (17,320,343) (37,517,245)
- ---------------------------------------------------------------------------------------------------------------
Net increase in net assets from fund share
transactions $1,901,794 $5,604,496 $19,856,150
- ---------------------------------------------------------------------------------------------------------------
Total increase in net assets $5,502,562 $12,406,770 $33,356,371
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS
At beginning of period 70,210,266 160,291,969 247,755,598
- ---------------------------------------------------------------------------------------------------------------
At end of period $75,712,828 $172,698,739 $281,111,969
- ---------------------------------------------------------------------------------------------------------------
Accumulated distributions in excess of net
investment income included in
net assets at end of period $(187,868) $(331,899) $(721,623)
- ---------------------------------------------------------------------------------------------------------------
See notes to financial statements.
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) ALABAMA MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------
The Financial Highlights table is intended to help you understand the fund's financial performance for the past 5 years (or,
if shorter, the period of the fund's operation). Certain information reflects financial results for a single fund share. The
total returns in the table represent the rate by which an investor would have earned (or lost) on an investment in the fund
(assuming reinvestment of all distributions).
Six months Year ended 3/31
ended -------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS A (unaudited)
Net asset value, beginning of
period $10.82 $10.31 $10.53 $10.00 $10.76 $10.80
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.24 $0.48 $0.51 $0.54 $0.54 $0.54
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 0.06 0.54 (0.19) 0.53 (0.64) (0.01)
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.30 $1.02 $0.32 $1.07 $(0.10) $0.53
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.24) $(0.50) $(0.54) $(0.54) $(0.54) $(0.54)
- ------------------------------------------------------------------------------------------------------------------------------
From net realized gain on
investments -- (0.01) -- -- (0.12) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------
In excess of net investment
income -- -- (0.00)+++ -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
In excess of net realized
gain on investments -- -- -- -- (0.00)+++ --
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions declared
to shareholders $(0.24) $(0.51) $(0.54) $(0.54) $(0.66) $(0.57)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period $10.88 $10.82 $10.31 $10.53 $10.00 $10.76
- ------------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 2.83++ 10.06 3.05 11.00 (0.82) 5.03
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 0.89+ 0.88 0.88 0.86 0.89 0.95
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.33+ 4.49 4.87 5.25 5.28 5.04
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 6 21 20 17 44 23
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period
(000 Omitted) $82,635 $84,474 $83,146 $81,615 $72,736 $73,851
- ------------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser voluntarily waived a portion of its fee, for certain of the periods indicated. If this fee had
been incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.22 $0.46 $0.49 $0.52 $0.52 $0.53
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS
Expenses## 1.09+ 1.08 1.08 1.06 1.07 1.07
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.13+ 4.29 4.67 5.05 5.10 4.92
- ------------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of net
investment income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods prior
to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
(+) Total returns for Class A shares do not include the applicable sales charge. If the charge had been included, the
results would have been lower.
See notes to financial statements.
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) ALABAMA MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended -------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS B (unaudited)
Net asset value, beginning of
period $10.82 $10.31 $10.53 $10.00 $10.76 $10.80
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.19 $0.40 $0.43 $0.46 $0.46 $0.46
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 0.06 0.54 (0.19) 0.53 (0.64) (0.01)
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.25 $0.94 $0.24 $0.99 $(0.18) $0.45
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.20) $(0.42) $(0.46) $(0.46) $(0.46) $(0.46)
- ------------------------------------------------------------------------------------------------------------------------------
From net realized gain on
investments -- (0.01) -- -- (0.12) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------
In excess of net investment
income -- -- (0.00)+++ -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
In excess of net realized
gain on investments -- -- -- -- (0.00)+++ --
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions declared
to shareholders $(0.20) $(0.43) $(0.46) $(0.46) $(0.58) $(0.49)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period $10.87 $10.82 $10.31 $10.53 $10.00 $10.76
- ------------------------------------------------------------------------------------------------------------------------------
Total return (%) 2.35++ 9.14 2.38 10.17 (1.56) 4.25
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.64+ 1.63 1.63 1.61 1.64 1.69
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.58+ 3.74 4.09 4.50 4.53 4.29
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 6 21 20 17 44 23
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period
(000 Omitted) $17,520 $16,163 $13,579 $12,531 $10,926 $11,452
- ------------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser voluntarily waived a portion of its fee, for certain of the periods indicated. If this fee had
been incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.18 $0.38 $0.41 $0.46 $0.44 $0.45
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS
Expenses## 1.84+ 1.83 1.83 1.81 1.82 1.81
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.38+ 3.54 3.89 4.30 4.35 4.17
- ------------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of net
investment income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods prior
to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) ARKANSAS MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended ------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS A (unaudited)
Net asset value,
beginning of period $10.40 $9.97 $10.08 $9.61 $10.14 $10.18
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.22 $0.47 $0.51 $0.51 $0.50 $0.50
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 0.01 0.46 (0.11) 0.47 (0.53) (0.04)
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.23 $0.93 $0.40 $0.98 $(0.03) $0.46
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment
income $(0.23) $(0.50) $(0.51) $(0.51) $(0.50) $(0.50)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period $10.40 $10.40 $9.97 $10.08 $9.61 $10.14
- ------------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 2.22++ 9.51 4.06 10.45 (0.24) 4.60
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 0.77+ 0.73 0.72 0.70 0.72 0.77
- ------------------------------------------------------------------------------------------------------------------------------
Net investment
income(S) 4.18+ 4.59 5.05 5.25 5.14 4.92
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 10 15 15 12 28 12
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $137,160 $134,521 $119,328 $113,928 $107,111 $124,644
- ------------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser voluntarily waived a portion of its fees for certain of the periods indicated. If these fees had
been incurred by the fund, the net investment income per share and the ratios would have been:
Net investment
income(S)(S) $0.21 $0.45 $0.49 $0.49 $0.48 $0.49
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS
Expenses## 0.97+ 0.93 0.92 0.90 0.90 0.89
- ------------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 3.98+ 4.39 4.85 5.05 4.96 4.80
- ------------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of net
investment income to average net assets increased by 0.02%. Per share, ratios, and supplemental data for periods prior
to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect expense reductions from fees paid indirectly.
(+) Total returns for Class A shares do not include the applicable sales charge. If the charge had been included, the
results would have been lower.
See notes to financial statements.
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) ARKANSAS MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------
Year ended 3/31
Six months
ended --------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS B (unaudited)
Net asset value, beginning of
period $10.41 $9.98 $10.09 $9.62 $10.14 $10.18
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.18 $0.39 $0.43 $0.44 $0.42 $0.43
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 0.01 0.46 (0.11) 0.46 (0.53) (0.04)
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.19 $0.85 $0.32 $0.90 $(0.11) $0.39
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.19) $(0.42) $(0.43) $(0.43) $(0.41) $(0.43)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period $10.41 $10.41 $9.98 $10.09 $9.62 $10.14
- ------------------------------------------------------------------------------------------------------------------------------
Total return (%) 1.80++ 8.62 3.24 9.59 (1.02) 3.91
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.59+ 1.54 1.50 1.47 1.62 1.43
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S) 3.35+ 3.77 4.26 4.49 4.33 4.26
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 10 15 15 12 28 12
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period
(000 Omitted) $12,816 $12,049 $8,700 $9,822 $9,227 $10,609
- ------------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser voluntarily waived a portion of its fees for certain of the periods indicated. If these fees had
been incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.16 $0.37 $0.41 $0.42 $0.40 $0.42
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS
Expenses## 1.79+ 1.74 1.70 1.67 1.80 1.55
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.15+ 3.57 4.06 4.29 4.15 4.14
- ------------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended
March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains and losses
per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of net investment
income to average net assets increased by 0.02%. Per share, ratios, and supplemental data for periods prior to April 1, 2001
have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect expense reductions from fees paid indirectly.
See notes to financial statements.
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) CALIFORNIA MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended -------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS A (unaudited)
Net asset value,
beginning of period $5.96 $5.70 $5.81 $5.52 $5.89 $5.80
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment
income(S) $0.14 $0.28 $0.28 $0.28 $0.29 $0.29
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments and
foreign currency (0.03) 0.27 (0.10) 0.30 (0.38) 0.09
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.11 $0.55 $0.18 $0.58 $(0.09) $0.38
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment
income $(0.14) $(0.29) $(0.28) $(0.29) $(0.28) $(0.29)
- ------------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- (0.01) -- -- (0.00)+++
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to
shareholders $(0.14) $(0.29) $(0.29) $(0.29) $(0.28) $(0.29)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period $5.93 $5.96 $5.70 $5.81 $5.52 $5.89
- ------------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 1.90++ 9.79 3.11 10.78 (1.41) 6.59
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 0.67+ 0.67 0.67 0.62 0.51 0.60
- ------------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 4.65+ 4.73 4.87 5.08 5.21 4.82
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 5 22 12 21 40 26
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $319,423 $333,350 $305,699 $293,137 $196,828 $226,903
- ------------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser voluntarily waived a portion of its fee, for certain of the periods indicated. If this fee had
been incurred by the fund, the net investment income per share and the ratios would have been:
Net investment
income(S)(S) $0.13 $0.27 $0.27 $0.27 $0.27 $0.27
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS
Expenses## 0.87+ 0.87 0.87 0.87 0.86 0.77
- ------------------------------------------------------------------------------------------------------------------------------
Net investment
income(S)(S) 4.45+ 4.53 4.67 4.83 4.86 4.65
- ------------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of net
investment income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods prior
to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
(+) Total returns for Class A shares do not include the applicable sales charge. If the charge had been included, the
results would have been lower.
See notes to financial statements.
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) CALIFORNIA MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS B (unaudited)
Net asset value, beginning of
period $5.96 $5.70 $5.81 $5.52 $5.89 $5.80
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.12 $0.23 $0.24 $0.24 $0.25 $0.24
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments
and foreign currency (0.02) 0.27 (0.11) 0.30 (0.38) 0.09
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.10 $0.50 $0.13 $0.54 $(0.13) $0.33
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.12) $(0.24) $(0.23) $(0.25) $(0.24) $(0.24)
- ------------------------------------------------------------------------------------------------------------------------------
In excess of net investment
income -- -- (0.01) -- -- (0.00)+++
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions declared
to shareholders $(0.12) $(0.24) $(0.24) $(0.25) $(0.24) $(0.24)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $5.94 $5.96 $5.70 $5.81 $5.52 $5.89
- ------------------------------------------------------------------------------------------------------------------------------
Total return (%) 1.66++ 8.93 2.30 9.93 (2.21) 5.74
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.48+ 1.46 1.45 1.39 1.31 1.39
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.84+ 3.94 4.09 4.31 4.38 4.02
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 5 22 12 21 40 26
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period
(000 Omitted) $92,220 $98,888 $84,123 $80,473 $60,367 $61,458
- ------------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser voluntarily waived a portion of its fee, for certain of the periods indicated. If this fee had
been incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.11 $0.22 $0.23 $0.23 $0.23 $0.22
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS
Expenses## 1.68+ 1.66 1.65 1.64 1.66 1.56
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.64+ 3.74 3.89 4.06 4.03 3.85
- ------------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of net
investment income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods prior
to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) CALIFORNIA MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS C (unaudited)
Net asset value, beginning of
period $5.98 $5.72 $5.83 $5.53 $5.90 $5.81
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.11 $0.23 $0.23 $0.23 $0.24 $0.23
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments
and foreign currency (0.02) 0.27 (0.10) 0.31 (0.38) 0.09
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.09 $0.50 $0.13 $0.54 $(0.14) $0.32
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.12) $(0.24) $(0.23) $(0.24) $(0.23) $(0.23)
- ------------------------------------------------------------------------------------------------------------------------------
In excess of net investment
income -- -- (0.01) -- -- (0.00)+++
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions declared
to shareholders $(0.12) $(0.24) $(0.24) $(0.24) $(0.23) $(0.23)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period $5.95 $5.98 $5.72 $5.83 $5.53 $5.90
- ------------------------------------------------------------------------------------------------------------------------------
Total return (%) 1.44++ 8.78 2.17 9.96 (2.29) 5.54
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.57+ 1.57 1.57 1.52 1.41 1.56
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.75+ 3.83 3.97 4.21 4.32 3.84
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 5 22 12 21 40 26
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period
(000 Omitted) $37,159 $40,804 $35,022 $33,056 $10,482 $10,178
- ------------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser voluntarily waived a portion of its fee, for certain of the periods indicated. If this fee had
been incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.11 $0.22 $0.22 $0.22 $0.22 $0.21
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS:
Expenses## 1.77+ 1.77 1.77 1.77 1.76 1.74
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.55+ 3.63 3.77 3.96 3.97 3.66
- ------------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of net
investment income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods prior
to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) FLORIDA MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS A (unaudited)
Net asset value, beginning of
period $10.19 $9.78 $9.95 $9.47 $10.12 $10.10
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.23 $0.48 $0.50 $0.50 $0.50 $0.50
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments
and foreign currency 0.02 0.44 (0.16) 0.49 (0.65) 0.02
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.25 $0.92 $0.34 $0.99 $(0.15) $0.52
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.23) $(0.51) $(0.51) $(0.51) $(0.50) $(0.50)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.21 $10.19 $9.78 $9.95 $9.47 $10.12
- ------------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 2.52++ 9.40 3.41 10.72 (1.38) 5.25
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 0.65+ 0.62 0.63 0.63 0.66 0.69
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.52+ 4.78 5.09 5.23 5.21 4.96
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 17 27 16 18 52 23
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period
(000 Omitted) $84,033 $86,045 $69,959 $66,807 $64,107 $77,628
- ------------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser voluntarily waived a portion of its fee, for certain of the periods indicated. If this fee had
been incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.22 $0.46 $0.48 $0.48 $0.48 $0.49
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS
Expenses## 0.85+ 0.82 0.83 0.83 0.84 0.81
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.32+ 4.58 4.89 5.03 5.03 4.84
- ------------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended
March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains and losses
per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of net investment
income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods prior to April 1, 2001
have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
(+) Total returns for Class A shares do not include the applicable sales charge. If the charge had been included, the
results would have been lower.
See notes to financial statements.
- -----------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) FLORIDA MUNICIPAL BOND FUND
- -----------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS B (unaudited)
Net asset value, beginning of
period $10.19 $9.78 $9.95 $9.47 $10.11 $10.09
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.19 $0.40 $0.43 $0.42 $0.43 $0.42
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments
and foreign currency 0.02 0.43 (0.17) 0.49 (0.64) 0.02
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.21 $0.83 $0.26 $0.91 $(0.21) $0.44
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.19) $(0.42) $(0.43) $(0.43) $(0.43) $(0.42)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $10.21 $10.19 $9.78 $9.95 $9.47 $10.11
- ------------------------------------------------------------------------------------------------------------------------------
Total return (%) 2.10++ 8.64 2.58 9.84 (2.07) 4.42
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.46+ 1.42 1.43 1.43 1.45 1.49
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.71+ 3.97 4.29 4.43 4.42 4.16
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 17 27 16 18 52 23
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period
(000 Omitted) $23,135 $25,175 $22,151 $23,820 $19,999 $20,813
- ------------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser voluntarily waived a portion of its fee, for certain of the periods indicated. If this fee had
been incurred by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.18 $0.38 $0.41 $0.41 $0.41 $0.41
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS
Expenses## 1.66+ 1.62 1.63 1.63 1.63 1.61
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.51+ 3.77 4.09 4.23 4.24 4.04
- ------------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended
March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains and losses
per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of net investment
income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods prior to April 1, 2001
have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) GEORGIA MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS A (unaudited)
Net asset value, beginning of
period $11.17 $10.63 $10.82 $10.26 $10.93 $10.95
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.24 $0.49 $0.50 $0.52 $0.52 $0.55
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 0.02 0.55 (0.17) 0.56 (0.67) (0.02)
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.26 $1.04 $0.33 $1.08 $(0.15) $0.53
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.25) $(0.50) $(0.51) $(0.52) $(0.52) $(0.55)
- ------------------------------------------------------------------------------------------------------------------------------
In excess of net investment
income -- -- (0.01) -- -- (0.00)+++
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions declared
to shareholders $(0.25) $(0.50) $(0.52) $(0.52) $(0.52) $(0.55)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.18 $11.17 $10.63 $10.82 $10.26 $10.93
- ------------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 2.32++ 9.97 3.03 10.80 (1.32) 4.09
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 0.92+ 0.92 0.93 0.90 0.93 0.97
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.34+ 4.43 4.67 4.95 4.98 4.97
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 1 25 19 24 39 35
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period
(000 Omitted) $55,744 $57,636 $54,179 $52,236 $48,054 $56,886
- ------------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser voluntarily waived a portion of its fee for the periods indicated. If this fee had been incurred
by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.23 $0.47 $0.48 $0.50 $0.50 $0.54
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS
Expenses## 1.12+ 1.12 1.13 1.10 1.11 1.09
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.14+ 4.23 4.47 4.75 4.80 4.85
- ------------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to decrease net investment income per share and increase net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of net
investment income to average net assets decreased by 0.03%. Per share, ratios, and supplemental data for periods prior
to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
(+) Total returns for Class A shares do not include the applicable sales charge. If the charge had been included, the
results would have been lower.
See notes to financial statements.
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) GEORGIA MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS B (unaudited)
Net asset value, beginning of
period $11.18 $10.64 $10.83 $10.27 $10.93 $10.95
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.20 $0.40 $0.42 $0.45 $0.44 $0.47
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 0.01 0.56 (0.18) 0.55 (0.66) (0.02)
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.21 $0.96 $0.24 $1.00 $(0.22) $0.45
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.20) $(0.42) $(0.42) $(0.44) $(0.44) $(0.47)
- ------------------------------------------------------------------------------------------------------------------------------
In excess of net investment
income -- -- (0.01) -- -- (0.00)+++
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions declared
to shareholders $(0.20) $(0.42) $(0.43) $(0.44) $(0.44) $(0.47)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.19 $11.18 $10.64 $10.83 $10.27 $10.93
- ------------------------------------------------------------------------------------------------------------------------------
Total return (%) 1.94++ 9.15 2.26 9.97 (2.06) 4.22
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.66+ 1.67 1.68 1.65 1.68 1.72
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.59+ 3.68 3.91 4.25 4.24 4.22
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 1 25 19 24 39 35
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period
(000 Omitted) $17,073 $18,077 $16,031 $17,376 $14,777 $14,591
- ------------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser voluntarily waived a portion of its fee for the period indicated. If this fee had been incurred by
the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.19 $0.38 $0.40 $0.43 $0.42 $0.45
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS
Expenses## 1.86+ 1.87 1.88 1.85 1.86 1.84
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.39+ 3.48 3.71 4.05 4.06 4.10
- ------------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended
March 31, 2002, was to decrease net investment income per share and increase net realized and unrealized gains and losses
per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of net investment
income to average net assets decreased by 0.03%. Per share, ratios, and supplemental data for periods prior to April 1, 2001
have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) MARYLAND MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended -------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS A (unaudited)
Net asset value,
beginning of period $11.69 $11.21 $11.35 $10.81 $11.49 $11.47
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.25 $0.52 $0.54 $0.54 $0.53 $0.54
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments 0.05 0.50 (0.14) 0.54 (0.68) 0.02
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.30 $1.02 $0.40 $1.08 $(0.15) $0.56
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.26) $(0.54) $(0.54) $(0.54) $(0.53) $(0.54)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period $11.73 $11.69 $11.21 $11.35 $10.81 $11.49
- ------------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 2.60++ 9.21 3.59 10.26 (1.27) 4.94
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 0.97+ 0.95 0.95 0.95 0.96 1.03
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.33+ 4.51 4.73 4.96 4.85 4.67
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 9 12 8 14 24 14
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $139,507 $138,666 $128,750 $125,316 $114,957 $131,261
- ------------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser voluntarily waived a portion of its fee for the periods indicated. If this fee had been incurred
by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.24 $0.50 $0.52 $0.52 $0.51 $0.53
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS
Expenses## 1.17+ 1.15 1.15 1.15 1.14 1.15
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.13+ 4.31 4.53 4.76 4.67 4.55
- ------------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of net
investment income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods prior
to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
(+) Total returns for Class A shares do not include the applicable sales charge. If the charge had been included, the
results would have been lower.
See notes to financial statements.
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) MARYLAND MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS B (unaudited)
Net asset value, beginning of
period $11.68 $11.20 $11.34 $10.81 $11.48 $11.47
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.22 $0.45 $0.46 $0.47 $0.46 $0.45
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 0.04 0.49 (0.13) 0.53 (0.67) 0.02
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.26 $0.94 $0.33 $1.00 $(0.21) $0.47
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.22) $(0.46) $(0.47) $(0.47) $(0.46) $(0.46)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period $11.72 $11.68 $11.20 $11.34 $10.81 $11.48
- ------------------------------------------------------------------------------------------------------------------------------
Total return (%) 2.27++ 8.52 2.92 9.46 (1.82) 4.18
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.62+ 1.60 1.60 1.60 1.61 1.68
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.68+ 3.86 4.08 4.30 4.21 4.01
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 9 12 8 14 24 14
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period
(000 Omitted) $33,663 $34,033 $31,542 $28,859 $26,845 $28,902
- ------------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser voluntarily waived a portion of its fee for the periods indicated. If this fee had been incurred
by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.20 $0.42 $0.44 $0.47 $0.44 $0.45
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS
Expenses## 1.82+ 1.80 1.80 1.80 1.79 1.80
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.48+ 3.66 3.88 4.10 4.03 3.89
- ------------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of net
investment income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods prior
to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) MASSACHUSETTS MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended -------------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS A (unaudited)
Net asset value,
beginning of period $11.49 $10.90 $11.11 $10.60 $11.35 $11.34
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.25 $0.52 $0.53 $0.55 $0.57 $0.58
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss)
on investments (0.00)+++ 0.60 (0.21) 0.52 (0.76) (0.01)
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment
operations $0.25 $1.12 $0.32 $1.07 $(0.19) $0.57
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.26) $(0.53) $(0.52) $(0.56) $(0.56) $(0.56)
- ------------------------------------------------------------------------------------------------------------------------------
In excess of net
investment income -- -- (0.01) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions
declared to shareholders $(0.26) $(0.53) $(0.53) $(0.56) $(0.56) $(0.56)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of
period $11.48 $11.49 $10.90 $11.11 $10.60 $11.35
- ------------------------------------------------------------------------------------------------------------------------------
Total return (%)(+) 2.18++ 10.42 2.93 10.44 (1.57) 5.11
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 0.95+ 0.92 0.92 0.92 0.92 1.00
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.36+ 4.56 4.73 5.10 5.29 5.08
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 6 15 13 22 35 28
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of
period (000 Omitted) $228,553 $233,500 $210,269 $216,272 $207,228 $239,980
- ------------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser voluntarily waived a portion of its fee for the periods indicated. If these fees had been incurred
by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.24 $0.49 $0.51 $0.53 $0.55 $0.57
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS
Expenses## 1.15+ 1.12 1.12 1.12 1.10 1.12
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 4.16+ 4.36 4.53 4.90 5.11 4.96
- ------------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of net
investment income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods prior
to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
(+) Total returns for Class A shares do not include the applicable sales charge. If the charge had been included, the
results would have been lower.
See notes to financial statements.
- ------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS FINANCIAL HIGHLIGHTS, MFS(R) MASSACHUSETTS MUNICIPAL BOND FUND
- ------------------------------------------------------------------------------------------------------------------------------
Six months Year ended 3/31
ended --------------------------------------------------------------------------
9/30/03 2003 2002 2001 2000 1999
CLASS B (unaudited)
Net asset value, beginning of
period $11.51 $10.92 $11.12 $10.60 $11.35 $11.35
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS#(S)(S)
Net investment income(S) $0.21 $0.44 $0.46 $0.48 $0.50 $0.50
- ------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments (0.00)+++ 0.60 (0.20) 0.53 (0.76) (0.01)
- ------------------------------------------------------------------------------------------------------------------------------
Total from investment operations $0.21 $1.04 $0.26 $1.01 $(0.26) $0.49
- ------------------------------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS DECLARED TO SHAREHOLDERS
From net investment income $(0.22) $(0.45) $(0.45) $(0.49) $(0.49) $(0.49)
- ------------------------------------------------------------------------------------------------------------------------------
In excess of net investment
income -- -- (0.01) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions declared
to shareholders $(0.22) $(0.45) $(0.46) $(0.49) $(0.49) $(0.49)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $11.50 $11.51 $10.92 $11.12 $10.60 $11.35
- ------------------------------------------------------------------------------------------------------------------------------
Total return (%) 1.85++ 9.69 2.35 (9.82) (2.30) 4.43
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS AND
SUPPLEMENTAL DATA(S):
Expenses## 1.59+ 1.57 1.57 1.57 1.57 1.64
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.71+ 3.91 4.13 4.45 4.64 4.43
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover 6 15 13 22 35 28
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period
(000 Omitted) $47,955 $47,612 $37,487 $30,057 $25,743 $25,616
- ------------------------------------------------------------------------------------------------------------------------------
(S) The investment adviser voluntarily waived a portion of its fee for the periods indicated. If these fees had been incurred
by the fund, the net investment income per share and the ratios would have been:
Net investment income(S)(S) $0.20 $0.42 $0.44 $0.46 $0.48 $0.49
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS (%) TO AVERAGE NET ASSETS
Expenses## 1.79+ 1.77 1.77 1.77 1.75 1.76
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income(S)(S) 3.51+ 3.71 3.93 4.25 4.46 4.31
- ------------------------------------------------------------------------------------------------------------------------------
(S)(S) As required, effective April 1, 2001, the fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies and began accreting market discount on debt securities. The effect of this change for the year
ended March 31, 2002, was to increase net investment income per share and decrease net realized and unrealized gains
and losses per share. The impact of this change calculates to less than $0.01 per share. In addition, the ratio of net
investment income to average net assets increased by 0.01%. Per share, ratios, and supplemental data for periods prior
to April 1, 2001 have not been restated to reflect this change in presentation.
+ Annualized.
++ Not annualized.
+++ Per share amount was less than $0.01.
# Per share data are based on average shares outstanding.
## Ratios do not reflect reductions from fees paid indirectly.
See notes to financial statements.
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- -------------------------------------------------------------------------------
(1) BUSINESS AND ORGANIZATION
MFS Alabama Municipal Bond Fund (Alabama Fund), MFS Arkansas Municipal Bond
Fund (Arkansas Fund), MFS California Municipal Bond Fund (California Fund),
MFS Florida Municipal Bond Fund (Florida Fund), MFS Georgia Municipal Bond
Fund (Georgia Fund), MFS Maryland Municipal Bond Fund (Maryland Fund), and MFS
Massachusetts Municipal Bond Fund (Massachusetts Fund) are each a non-
diversified series of MFS Municipal Series Trust (the trust). The trust is
organized as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company.
(2) SIGNIFICANT ACCOUNTING POLICIES
GENERAL - The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates. Because each fund invests primarily in the
securities of a single state and its political subdivisions, each fund is
vulnerable to the effects of changes in the legal and economic environment of
the particular state.
INVESTMENT VALUATIONS - Bonds and other fixed income securities (other than
short-term obligations) of U.S. issuers in each fund's portfolio are valued at
an evaluated bid price on the basis of quotes from brokers and dealers or on
the basis of valuations furnished by a pricing service. Prices obtained from
pricing services utilize both dealer-supplied valuations and electronic data
processing techniques which take into account appropriate factors such as
institutional-size trading in similar groups of securities, yield, quality,
coupon rate, maturity, type of issue, trading characteristics and other market
data without exclusive reliance upon quoted prices or exchange or over-the-
counter prices, since such valuations are believed to reflect more accurately
the fair value of such securities. All other securities (other than short-term
obligations) and futures contracts in each fund's portfolio for which the
principal market is one or more securities or commodities exchanges (whether
domestic or foreign) will be valued at the last reported sale price or at the
settlement price prior to the determination (or if there has been no current
sale, at the closing bid price) on the primary exchange on which such
securities and futures contracts are traded; but if a securities exchange is
not the principal market for securities, such securities will, if market
quotations are readily available, be valued at current bid prices. Short-term
obligations in each fund's portfolio are valued at amortized cost, which
constitutes fair value as determined by the Board of Trustees. Short-term
obligations with a remaining maturity in excess of 60 days will be valued upon
dealer-supplied valuations. Portfolio investments for which market quotations
are not readily available, or whose values have been materially affected by
events occurring after the close of their primary markets, are valued at fair
value as determined in good faith by or at the direction of the Board of
Trustees.
FUTURES CONTRACTS - Each fund may enter into futures contracts for the delayed
delivery of securities or currency, or contracts based on financial indices at
a fixed price on a future date. In entering such contracts, each fund is
required to deposit with the broker either in cash or securities an amount
equal to a certain percentage of the contract amount. Subsequent payments are
made or received by the fund each day, depending on the daily fluctuations in
the value of the contract, and are recorded for financial statement purposes
as unrealized gains or losses by the fund. Each fund's investment in futures
contracts is designed to hedge against anticipated future changes in interest
rates or securities prices. Investments in interest rate futures for purposes
other than hedging may be made to modify the duration of the portfolio without
incurring the additional transaction costs involved in buying and selling the
underlying securities. Investments in currency futures for purposes other than
hedging may be made to change the fund's relative position in one or more
currencies without buying and selling portfolio assets. Should interest rates
or securities prices move unexpectedly, the fund may not achieve the
anticipated benefits of the futures contracts and may realize a loss.
SWAP AGREEMENTS - Each fund may enter into swap agreements. A swap is an
exchange of cash payments between the fund and another party, which is based
on a specific financial index. Cash payments are exchanged at specified
intervals and the expected income or expense is recorded on the accrual basis.
The value of the swap is adjusted daily and the change in value is recorded as
unrealized appreciation or depreciation. Risks may arise upon entering into
these agreements from the potential inability of counterparties to meet the
terms of their contract and from unanticipated changes in the value of the
financial index on which the swap agreement is based. The fund uses swaps for
both hedging and non-hedging purposes. For hedging purposes, the fund may use
swaps to reduce its exposure to interest and foreign exchange rate
fluctuations. For non-hedging purposes, the fund may use swaps to take a
position on anticipated changes in the underlying financial index.
RATE LOCK SWAPS - Each fund may enter into rate lock swaps, which are used to
reduce the interest rate risk of the portfolio. A rate lock swap is a payment
or receipt of cash on a specified future date, calculated as the difference
between the strike rate and a specific index yield on that date. The payment
received or made at the end of the measurement period is recorded as a
realized gain or loss in the Statement of Operations. The value of the swap is
adjusted daily and the change in value is recorded as unrealized appreciation
or depreciation.
INVESTMENT TRANSACTIONS AND INCOME - Investment transactions are recorded on
the trade date. Interest income is recorded on the accrual basis. All premium
and discount is amortized or accreted for financial statement purposes in
accordance with accounting principles generally accepted in the United States
of America. All premium and original issue discount is amortized or accreted
for tax reporting purposes as required by federal income tax regulations.
Interest payments received in additional securities are recorded on the ex-
dividend or ex-interest date in an amount equal to the value of the security on
such date. Some securities may be purchased on a "when-issued" or "forward
delivery" basis, which means that the securities will be delivered to the fund
at a future date, usually beyond customary settlement time.
Legal fees and other related expenses incurred to preserve and protect the
value of a security owned are added to the cost of the security; other legal
fees are expensed. Capital infusions made directly to the security issuer,
which are generally non-recurring, incurred to protect or enhance the value of
high-yield debt securities, are reported as additions to the cost basis of the
security. Costs that are incurred to negotiate the terms or conditions of
capital infusions or that are expected to result in a plan of reorganization
are reported as realized losses. Ongoing costs incurred to protect or enhance
an investment, or costs incurred to pursue other claims or legal actions, are
expensed.
FEES PAID INDIRECTLY - Each fund's custody fee is reduced according to an
arrangement that measures the value of cash deposited with the custodian by
the fund. This amount is shown as a reduction of total expenses on the
Statement of Operations.
TAX MATTERS AND DISTRIBUTIONS - Each fund's policy is to comply with the
provisions of the Internal Revenue Code (the Code) applicable to regulated
investment companies and to distribute to shareholders all of its net tax-
exempt and taxable net income, including any net realized gain on investments.
Accordingly, no provision for federal income or excise tax is provided.
Distributions paid by each fund from net interest received on tax-exempt
municipal bonds are not includable by shareholders as gross income for federal
income tax purposes because each fund intends to meet certain requirements of
the Code applicable to regulated investment companies, which will enable each
fund to pay exempt-interest dividends. The portion of such interest, if any,
earned on private activity bonds issued after August 7, 1986 may be considered
a tax-preference item to shareholders.
Distributions to shareholders are recorded on the ex-dividend date. Each fund
distinguishes between distributions on a tax basis and a financial reporting
basis and only distributions in excess of tax basis earnings and profits are
reported in the financial statements as distributions from paid-in capital.
Differences in the recognition or classification of income between the
financial statements and tax earnings and profits, which result in temporary
over-distributions for financial statement purposes, are classified as
distributions in excess of net investment income or net realized gains. Common
types of book and tax differences that could occur include differences in
accounting for derivatives, defaulted bonds, capital losses, and amortization
and accretion on debt securities.
The tax character of distributions paid for the years ended March 31, 2003 and
March 31, 2002 was as follows:
ALABAMA ARKANSAS CALIFORNIA FLORIDA GEORGIA MARYLAND MASSACHUSETTS
YEAR ENDED 3/31/03 FUND FUND FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
Distributions declared from:
Tax-exempt income $4,493,757 $6,651,032 $21,427,690 $4,888,336 $3,242,913 $7,569,470 $12,206,827
- ----------------------------------------------------------------------------------------------------------------------------------
Ordinary income 59,140 -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Long-term capital gain 43,388 -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total distributions
declared $4,596,285 $6,651,032 $21,427,690 $4,888,336 $3,242,913 $7,569,470 $12,206,827
- ----------------------------------------------------------------------------------------------------------------------------------
ALABAMA ARKANSAS CALIFORNIA FLORIDA GEORGIA MARYLAND MASSACHUSETTS
YEAR ENDED 3/31/02 FUND FUND FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
Distributions declared from:
Tax-exempt income $4,758,547 $6,302,057 $19,837,666 $4,458,917 $3,177,134 $7,408,434 $11,779,280
- ----------------------------------------------------------------------------------------------------------------------------------
As of March 31, 2003, the components of distributable earnings (accumulated losses) on a tax basis were as follows:
ALABAMA ARKANSAS CALIFORNIA FLORIDA GEORGIA MARYLAND MASSACHUSETTS
FUND FUND FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
Undistributed ordinary
income $-- $72,577 $-- $2,788 $-- $-- $347,786
- ----------------------------------------------------------------------------------------------------------------------------------
Undistributed tax-exempt
income 201,686 304,037 730,939 271,128 99,793 320,752 --
- ----------------------------------------------------------------------------------------------------------------------------------
Capital loss carryforward -- (5,905,030) (2,356,457) (2,357,905) (467,715) (3,168,445) (2,389,170)
- ----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain 7,659,991 12,417,451 30,866,796 7,199,533 6,040,072 14,320,849 22,388,435
- ----------------------------------------------------------------------------------------------------------------------------------
Other temporary
differences (442,365) (568,173) (1,920,350) (437,682) (287,661) (668,933) (1,069,409)
- ----------------------------------------------------------------------------------------------------------------------------------
At March 31, 2003, the following funds, for federal income tax purposes, had a capital loss carryforward which may be applied
against any net taxable realized gains of each succeeding year until the earlier of its utilization or expiration on:
ALABAMA ARKANSAS CALIFORNIA FLORIDA GEORGIA MARYLAND MASSACHUSETTS
FUND FUND FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
March 31, 2004 $-- $5,673,302 $-- $-- $-- $1,712,779 $1,451,396
- ----------------------------------------------------------------------------------------------------------------------------------
March 31, 2005 -- 215,971 369,004 1,290,661 -- 1,055,172 405,183
- ----------------------------------------------------------------------------------------------------------------------------------
March 31, 2006 -- -- -- 781,761 -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
March 31, 2007 -- -- -- -- -- -- 242,062
- ----------------------------------------------------------------------------------------------------------------------------------
March 31, 2008 -- 15,757 87,023 -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
March 31, 2009 -- -- 1,900,430 -- 467,715 400,494 --
- ----------------------------------------------------------------------------------------------------------------------------------
March 31, 2010 -- -- -- 164,025 -- -- 290,529
- ----------------------------------------------------------------------------------------------------------------------------------
March 31, 2011 -- -- -- 121,458 -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total $-- $5,905,030 $2,356,457 $2,357,905 $467,715 $3,168,445 $2,389,170
- ----------------------------------------------------------------------------------------------------------------------------------
MULTIPLE CLASSES OF SHARES OF BENEFICIAL INTEREST - Each fund offers multiple
classes of shares, which differ in their respective distribution and service
fees. All shareholders bear the common expenses of the fund based on daily net
assets of each class, without distinction between share classes. Dividends are
declared separately for each class. Differences in per share dividend rates
are generally due to differences in separate class expenses. Class B shares
will convert to Class A shares approximately eight years after purchase.
(3) TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISER - The Trust has an investment advisory agreement with
Massachusetts Financial Services Company (MFS) to provide overall investment
advisory and administrative services, and general office facilities. The
management fee is computed daily and paid monthly at an annual rate of 0.55%
of each fund's average daily net assets. The investment adviser has
voluntarily agreed to waive a portion of its fee, which is shown as a
reduction of total expenses in the Statement of Operations. Management fees
incurred for the six months ended September 30, 2003 were 0.35% of average
daily net assets on an annualized basis.
Each fund pays compensation to the Independent Trustees ("Trustees") in the
form of both a retainer and attendance fees, and pays no compensation directly
to its Trustees who are officers of the investment adviser, or to officers of
each fund, all of whom receive remuneration for their services to each fund
from MFS. Certain officers and Trustees of each fund are officers or directors
of MFS, MFS Fund Distributors, Inc. (MFD), and MFS Service Center, Inc. (MFSC).
The fund has an unfunded, defined benefit plan for inactive Trustees. Included
in Trustees' compensation is a pension expense for inactive trustees for the
six months ended September 30, 2003:
ALABAMA ARKANSAS CALIFORNIA FLORIDA GEORGIA MARYLAND MASSACHUSETTS
FUND FUND FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
Pension Expense $1,785 $702 $1,059 $699 $745 $988 $1,004
- ----------------------------------------------------------------------------------------------------------------------------------
ADMINISTRATOR - The trust has an administrative services agreement with MFS to
provide each fund with certain financial, legal, shareholder communications,
compliance, and other administrative services. As a partial reimbursement for
the cost of providing these services, each fund pays MFS an administrative fee
not to exceed the following annual percentage rates of each fund's average
daily net assets:
First $2 billion 0.0175%
- ------------------------------------------------------------------------------
Next $2.5 billion 0.0130%
- ------------------------------------------------------------------------------
Next $2.5 billion 0.0005%
- ------------------------------------------------------------------------------
In excess of $7 billion 0.0000%
- ------------------------------------------------------------------------------
DISTRIBUTOR - MFD, a wholly owned subsidiary of MFS, as distributor, received
the following amounts as its portion of the sales charge on sales of Class A
shares for the six months ended September 30, 2003:
ALABAMA ARKANSAS CALIFORNIA FLORIDA GEORGIA MARYLAND MASSACHUSETTS
FUND FUND FUND FUND FUND FUND FUND
- --------------------------------------------------------------------------------
$21,570 $49,186 $74,700 $25,982 $12,452 $19,731 $39,557
- --------------------------------------------------------------------------------
The Trustees have adopted a distribution plan for Class A, Class B, and Class
C shares pursuant to Rule 12b-1 of the Investment Company Act of 1940 as
follows:
Each fund's distribution plan provides that the fund will pay MFD up to 0.35%
per annum of its average daily net assets attributable to Class A shares in
order that MFD may pay expenses on behalf of the fund related to the
distribution and servicing of its shares. These expenses include a service fee
paid to each securities dealer that enters into a sales agreement with MFD of
up to 0.25% per annum of each fund's average daily net assets attributable to
Class A shares which are attributable to that securities dealer and a
distribution fee to MFD of up to 0.10% per annum of each fund's average daily
net assets attributable to Class A shares. For the six months ended September
30, 2003, MFD retained the following service fees for accounts not
attributable to a securities dealer:
ALABAMA ARKANSAS CALIFORNIA FLORIDA GEORGIA MARYLAND MASSACHUSETTS
FUND FUND FUND FUND FUND FUND FUND
- --------------------------------------------------------------------------------
$903 $681 $1,937 $-- $447 $3,331 $34,558
- --------------------------------------------------------------------------------
During the six months ended September 30, 2003, fees incurred under the
distribution plan as a percentage of each fund's average daily net assets
attributable to Class A shares on an annualized basis were as follows:
ALABAMA ARKANSAS CALIFORNIA FLORIDA GEORGIA MARYLAND MASSACHUSETTS
FUND FUND FUND FUND FUND FUND FUND
- --------------------------------------------------------------------------------
0.25% 0.10% 0.10% 0.00% 0.25% 0.35% 0.35%
- --------------------------------------------------------------------------------
Payments of the 0.10% per annum Class A distribution fee will be implemented
on such date as the Trustees of the trust may determine for the Alabama,
Arkansas, California, Florida, and Georgia funds. Payment of the 0.25% per
annum Class A service fee by the Florida Fund will commence on such date as
the Trustees of the trust may determine. In the case of the Arkansas and
California Funds, a portion of the service fee is currently being paid by each
fund; payment of the remaining portion of the Class A service fee will become
payable on such date as the Trustees of the trust may determine.
Each fund's distribution plan provides that the fund will pay MFD a
distribution fee of 0.75% per annum, and a service fee of up to 0.25% per
annum, of the fund's average daily net assets attributable to Class B and
Class C shares. MFD will pay to securities dealers that enter into a sales
agreement with MFD all or a portion of the service fee attributable to Class B
and Class C shares, and will pay to such securities dealers all of the
distribution fee attributable to Class C shares. The service fee is intended
to be consideration for services rendered by the dealer with respect to Class
B and Class C shares. MFD retains the service fee for accounts not
attributable to a securities dealer. Class B and Class C service fees during
the six months ended September 30, 2003 were as follows:
ALABAMA ARKANSAS CALIFORNIA FLORIDA GEORGIA MARYLAND MASSACHUSETTS
FUND FUND FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
Class B $41 $6 $269 $-- $10 $78 $161
- ----------------------------------------------------------------------------------------------------------------------------------
Class C N/A N/A $230 N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------------------
During the six months ended September 30, 2003, fees incurred under the
distribution plan as a percentage of average daily net assets attributable to
Class B and Class C shares on an annualized basis were as follows:
ALABAMA ARKANSAS CALIFORNIA FLORIDA GEORGIA MARYLAND MASSACHUSETTS
FUND FUND FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
Class B 1.00% 0.92% 0.90% 0.81% 1.00% 1.00% 1.00%
- ----------------------------------------------------------------------------------------------------------------------------------
Class C N/A N/A 1.00% N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------------------------------------------
Except in the case of the 0.25% per annum first year Class B shares service
fee, payments by the Florida Fund will be suspended until such date as the
Trustees of the trust may determine. In the case of the Arkansas and
California funds, the 0.25% per annum first year Class B shares service fee is
currently 0.10% per annum on Class B shares held over one year.
Certain Class A and Class C shares are subject to a contingent deferred sales
charge in the event of a shareholder redemption within, for Class A shares, 12
months following purchase, and for Class C shares, the first year from the end
of the calendar month of the purchase. A contingent deferred sales charge is
imposed on shareholder redemptions of Class B shares in the event of a
shareholder redemption within six years from the end of the calendar month of
purchase. MFD receives all contingent deferred sales charges. Contingent
deferred sales charges imposed during the six months ended September 30, 2003,
were as follows:
ALABAMA ARKANSAS CALIFORNIA FLORIDA GEORGIA MARYLAND MASSACHUSETTS
CDSC IMPOSED FUND FUND FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
Class A $-- $-- $11,526 $1,000 $-- $-- $8,120
- ----------------------------------------------------------------------------------------------------------------------------------
Class B 21,270 5,463 165,835 42,208 35,912 37,251 51,621
- ----------------------------------------------------------------------------------------------------------------------------------
Class C -- -- 19,155 -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
SHAREHOLDER SERVICING AGENT - MFSC, a wholly owned subsidiary of MFS, earns a
fee for its services as shareholder servicing agent. The fee is calculated as
a percentage of each fund's average daily net assets at an annual rate of
0.11%. Prior to April 1, 2003, the fee was 0.10% of each fund's average daily
net assets.
(4) PORTFOLIO SECURITIES
Purchases and sales of investments, other than U.S. government securities,
purchased option transactions, and short-term obligations were as follows:
ALABAMA ARKANSAS CALIFORNIA FLORIDA GEORGIA MARYLAND MASSACHUSETTS
FUND FUND FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
Purchases $6,103,625 $23,635,057 $22,559,337 $18,121,588 $1,058,930 $16,993,932 $16,583,184
- ----------------------------------------------------------------------------------------------------------------------------------
Sales 5,590,159 14,392,251 44,983,310 19,220,878 6,005,200 15,815,498 21,655,230
- ----------------------------------------------------------------------------------------------------------------------------------
The cost and unrealized appreciation and depreciation in the value of the
investments owned by each fund, as computed on a federal income tax basis, are
as follows:
ALABAMA ARKANSAS CALIFORNIA FLORIDA GEORGIA MARYLAND MASSACHUSETTS
FUND FUND FUND FUND FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------------------
Aggregate cost $90,070,571 $135,663,979 $417,958,542 $95,114,156 $63,300,607 $155,826,827 $248,640,910
- ----------------------------------------------------------------------------------------------------------------------------------
Gross unrealized
appreciation $8,905,659 $13,412,270 $33,137,679 $7,663,826 $6,627,779 $15,594,048 $23,763,403
- ----------------------------------------------------------------------------------------------------------------------------------
Gross unrealized
depreciation (338,686) (146,662) (3,876,356) (157,653) (146,517) (267,702) (1,376,557)
- ----------------------------------------------------------------------------------------------------------------------------------
Net unrealized
appreciation $8,566,973 $13,265,608 $29,261,323 $7,506,173 $6,481,262 $15,326,346 $22,386,846
- ----------------------------------------------------------------------------------------------------------------------------------
(5) SHARES OF BENEFICIAL INTEREST
The Trust's Declaration permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest. Transactions in fund shares
were as follows:
ALABAMA ARKANSAS CALIFORNIA FLORIDA
- ------------------------------------------------------------------------------------------------------------------------------------
Six months ended 9/30/03
(000 Omitted) SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
CLASS A SHARES
Shares sold 452 $4,916 725 $7,592 3,725 $22,200 544 $5,558
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 105 1,137 173 1,794 719 4,278 94 953
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (765) (8,305) (642) (6,615) (6,535) (38,810) (850) (8,624)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) (208) $(2,252) 256 $2,771 (2,091) $(12,332) (212) $(2,113)
- ------------------------------------------------------------------------------------------------------------------------------------
Year ended 3/31/03
(000 Omitted)
Shares sold 1,153 $12,281 1,835 $18,905 10,049 $59,243 2,604 $26,400
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 223 2,376 341 3,504 1,455 8,573 176 1,772
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (1,634) (17,350) (1,205) (12,416) (9,209) (54,405) (1,487) (15,017)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) (258) $(2,693) 971 $9,993 2,295 $13,411 1,293 $13,155
- ------------------------------------------------------------------------------------------------------------------------------------
ALABAMA ARKANSAS CALIFORNIA FLORIDA
- ------------------------------------------------------------------------------------------------------------------------------------
Six months ended 9/30/03
(000 Omitted) SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
CLASS B SHARES
Shares sold 227 $2,467 132 $1,391 1,376 $8,275 150 $1,533
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 16 172 12 126 190 1,127 20 201
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (125) (1,343) (70) (732) (2,614) (15,474) (374) (3,794)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) 118 $1,296 74 $785 (1,048) $(6,072) (204) $(2,060)
- ------------------------------------------------------------------------------------------------------------------------------------
Year ended 3/31/03
(000 Omitted)
Shares sold 528 $5,663 437 $4,523 4,864 $28,766 909 $9,188
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 33 349 22 228 345 2,030 42 429
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (385) (4,121) (174) (1,789) (3,379) (19,889) (745) (7,500)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase 176 $1,891 285 $2,962 1,830 $10,907 206 $2,117
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA
- ------------------------------------------------------------------------------------------------------------------------------------
Six months ended 9/30/03 (000 Omitted) SHARES AMOUNT
CLASS C
Shares sold 888 $5,329
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 87 522
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (1,555) (9,233)
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease (580) $(3,382)
- ------------------------------------------------------------------------------------------------------------------------------------
Year ended 3/31/03 (000 Omitted)
Shares sold 2,792 $16,538
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 170 1,004
- ------------------------------------------------------------------------------------------------------------------------------------
Shares reacquired (2,264) (13,435)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase 698 $4,107
- ------------------------------------------------------------------------------------------------------------------------------------
GEORGIA MARYLAND MASSACHUSETTS
- ------------------------------------------------------------------------------------------------------------------------------------
Six months ended 9/30/03 (000 Omitted) SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
CLASS A SHARES
Shares sold 270 $2,993 449 $5,254 922 $10,600
- ------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 75 839 166 1,940 220 2,522
- ------------------------------------------------------------------------------------------------------------------------
Shares reacquired (517) (5,777) (583) (6,779) (1,559) (17,875)
- ------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) (172) $(1,945) 32 $415 (417) $(4,753)
- ------------------------------------------------------------------------------------------------------------------------
Year ending 3/31/03 (000 Omitted)
Shares sold 649 $7,160 1,049 $12,130 3,172 $36,120
- ------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 163 1,794 337 3,890 440 4,975
- ------------------------------------------------------------------------------------------------------------------------
Shares reacquired (750) (8,271) (1,005) (11,574) (2,576) (29,224)
- ------------------------------------------------------------------------------------------------------------------------
Net increase 62 $683 381 $4,446 1,036 $11,871
- ------------------------------------------------------------------------------------------------------------------------
GEORGIA MARYLAND MASSACHUSETTS
- ------------------------------------------------------------------------------------------------------------------------
Six months ended 9/30/03 (000 Omitted) SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
CLASS B
Shares sold 138 $1,564 182 $2,128 443 $5,121
- ------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 16 175 31 362 49 566
- ------------------------------------------------------------------------------------------------------------------------
Shares reacquired (245) (2,738) (254) (2,956) (460) (5,310)
- ------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) (91) $(999) (41) $(466) 32 $377
- ------------------------------------------------------------------------------------------------------------------------
Year ended 3/31/03 (000 Omitted)
Shares sold 384 $4,226 533 $6,170 1,340 $15,222
- ------------------------------------------------------------------------------------------------------------------------
Shares issued to
shareholders in
reinvestment of
distributions 31 344 64 735 93 1,056
- ------------------------------------------------------------------------------------------------------------------------
Shares reacquired (305) (3,351) (499) (5,746) (729) (8,293)
- ------------------------------------------------------------------------------------------------------------------------
Net increase 110 $1,219 98 $1,159 704 $7,985
- ------------------------------------------------------------------------------------------------------------------------
(6) LINE OF CREDIT
The trust and other affiliated funds participate in an $800 million unsecured
line of credit provided by a syndication of banks under a line of credit
agreement. Borrowings may be made for temporary financing needs. Interest is
charged to each fund, based on its borrowings, at a rate equal to the bank's
base rate. In addition, a commitment fee, based on the average daily unused
portion of the line of credit, is allocated among the participating funds at
the end of each quarter. The commitment fee allocated to each fund for the six
months ended September 30, 2003, ranged from $238 to $1,620. The trust had no
borrowings during the period.
(7) FINANCIAL INSTRUMENTS
The trust trades financial instruments with off-balance-sheet risk in the
normal course of its investing activities in order to manage exposure to
market risks such as interest rates. These financial instruments include swap
agreements. The notional or contractual amounts of these instruments represent
the investment the fund has in particular classes of financial instruments and
does not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
Swap Agreements
Interest Rate Swaps
NOTIONAL PRINCIPAL CASH FLOWS
AMOUNT OF RECEIVED BY CASH FLOWS PAID UNREALIZED
FUND EXPIRATION CONTRACT (000 OMITTED) THE FUND BY THE FUND DEPRECIATION
- ----------------------------------------------------------------------------------------------------------------------------------
Alabama Fund Floating -- 3M LIBOR Floating -- 7 Day BMA
10/31/12 1,000 X 78.875% Swap Index $(2,678)
- ----------------------------------------------------------------------------------------------------------------------------------
Floating -- 7 Day BMA Fixed -- 2 Year BMA
11/15/04 2,500 Swap Index Swap Index (1.945%) (22,964)
- ----------------------------------------------------------------------------------------------------------------------------------
Alabama Fund (cont.) Floating -- 3M LIBOR Floating -- 7 Day
12/18/12 2,000 X 78.75% BMA Swap Index (6,121)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Alabama Fund $(31,763)
- ----------------------------------------------------------------------------------------------------------------------------------
Arkansas Fund Floating -- 7 Day BMA
Floating -- 3M LIBOR Swap
10/31/12 1,400 X 78.875% Index $(3,750)
- ----------------------------------------------------------------------------------------------------------------------------------
Floating -- 7 Day BMA Fixed -- 2 Year BMA
Swap Swap
11/15/04 3,200 Index Index, (1.945%) (29,394)
- ----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
12/18/12 2,900 X 78.75% Swap Index (8,875)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Arkansas Fund $(42,019)
- ----------------------------------------------------------------------------------------------------------------------------------
California Fund Floating -- 3M LIBOR Floating -- 7 Day BMA
10/31/12 4,600 X 78.875% Swap Index $(12,320)
- ----------------------------------------------------------------------------------------------------------------------------------
Fixed -- 2 Year BMA
Floating -- 7 Day BMA Swap
11/15/04 10,500 Swap Index Index, (1.945%) (96,449)
- ----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
12/18/12 9,300 X 78.75% Swap Index (28,462)
- ----------------------------------------------------------------------------------------------------------------------------------
Total California Fund $(137,231)
- ----------------------------------------------------------------------------------------------------------------------------------
Florida Fund Floating -- 3M LIBOR Floating -- 7 Day BMA
10/31/12 1,000 X 78.875% Swap Index $(2,678)
- ----------------------------------------------------------------------------------------------------------------------------------
Fixed -- 2 Year BMA
Floating -- 7 Day BMA Swap
11/15/04 1,500 Swap Index Index, (1.945%) (13,779)
- ----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
12/18/12 2,000 X 78.75% Swap Index (6,121)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Florida Fund $(22,578)
- ----------------------------------------------------------------------------------------------------------------------------------
Georgia Fund Floating -- 3M LIBOR Floating -- 7 Day BMA
10/31/12 750 X 78.875% Swap Index $(2,009)
- ----------------------------------------------------------------------------------------------------------------------------------
Fixed -- 2 Year BMA
Floating -- 7 Day BMA Swap
11/15/04 1,750 Swap Index Index, (1.945%) (16,075)
- ----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
12/18/12 1,500 X 78.75% Swap Index (4,590)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Georgia Fund $(22,674)
- ----------------------------------------------------------------------------------------------------------------------------------
Maryland Fund Floating -- 3M LIBOR Floating -- 7 Day BMA
10/31/12 1,650 X 78.875% Swap Index $(4,419)
- ----------------------------------------------------------------------------------------------------------------------------------
Fixed -- 2 Year BMA
Floating -- 7 Day BMA Swap
11/15/04 2,400 Swap Index Index, (1.945%) (22,045)
- ----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
12/18/12 3,400 X 78.75% Swap Index (10,406)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Maryland Fund $(36,870)
- ----------------------------------------------------------------------------------------------------------------------------------
Massachusetts Fund Floating -- 3M LIBOR Floating -- 7 Day BMA
10/31/12 2,700 X 78.875% Swap Index $(7,231)
- ----------------------------------------------------------------------------------------------------------------------------------
Fixed -- 2 Year BMA
Floating -- 7 Day BMA Swap
11/15/04 6,000 Swap Index Index, (1.945%) (55,113)
- ----------------------------------------------------------------------------------------------------------------------------------
Floating -- 3M LIBOR Floating -- 7 Day BMA
12/18/12 5,500 X 78.75% Swap Index (16,833)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Massachusetts Fund $(79,177)
- ----------------------------------------------------------------------------------------------------------------------------------
Rate Lock Swaps
DESCRIPTION - Agreement with Goldman Sachs terminating October 1, 2003 to pay
the difference between the notional value and the market value of a bond with
a 4.22% coupon maturing on 10/01/16 priced at a yield to maturity equal to the
Municipal Market Data (MMD) general obligation yield curve rate for the
designated maturity year as of the close of business on the termination date,
if negative (receive if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000 OMITTED) ($)
- -------------------------------------------------------------------------------
Florida Fund 1,750 (72,804)
- -------------------------------------------------------------------------------
Georgia Fund 1,250 (52,003)
- -------------------------------------------------------------------------------
Maryland Fund 2,600 (108,167)
- -------------------------------------------------------------------------------
Massachusetts Fund 4,500 (187,213)
- -------------------------------------------------------------------------------
DESCRIPTION - Agreement with Merrill Lynch terminating March 2, 2004 to pay
the difference between the notional value and the market value of a bond with
a 5.179% coupon maturing on 3/02/24 priced at a yield to maturity equal to the
MMD general obligation curve rate for the designed maturity year as of the
close of business on the termination date, if negative (receive if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000 OMITTED) ($)
- -------------------------------------------------------------------------------
Arkansas Fund 4,000 (267,924)
- -------------------------------------------------------------------------------
Georgia Fund 2,000 (133,962)
- -------------------------------------------------------------------------------
DESCRIPTION - Agreement with Merrill Lynch terminating December 3, 2003 to pay
the difference between 4.248% coupon maturing on 12/02/23 priced at a yield to
maturity and the MMD general obligation yield curve rate for the designated
maturity year as of the close of business on the termination date times, if
negative (receive if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF APPRECIATION
FUND CONTRACT (000 OMITTED) ($)
- -------------------------------------------------------------------------------
Alabama Fund 2,000 89,414
- -------------------------------------------------------------------------------
Georgia Fund 1,000 44,707
- -------------------------------------------------------------------------------
Maryland Fund 2,000 89,413
- -------------------------------------------------------------------------------
DESCRIPTION - Agreement with Merrill Lynch terminating November 12, 2003 to
pay the difference between 4.60% and the MMD general obligation yield curve
rate for the designated maturity year as of the close of business on the
termination date times the notional amount times 10.75, if positive (receive
if negative):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000 OMITTED) ($)
- -------------------------------------------------------------------------------
Georgia Fund 1,500 (78,569)
- -------------------------------------------------------------------------------
DESCRIPTION - Agreement with Goldman Sachs terminating October 16, 2003 to pay
the difference between the notional value and the market value of a bond with
a 4.65% coupon maturing on 10/16/18 priced at a yield to maturity equal to the
MMD general obligation yield curve rate for the designated maturity year as of
the close of business on the termination date, if negative (receive if
positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000 OMITTED) ($)
- -------------------------------------------------------------------------------
Alabama Fund 800 (53,999)
- -------------------------------------------------------------------------------
California Fund 4,000 (269,997)
- -------------------------------------------------------------------------------
Florida Fund 900 (60,749)
- -------------------------------------------------------------------------------
Georgia Fund 600 (40,500)
- -------------------------------------------------------------------------------
Maryland Fund 1,300 (87,749)
- -------------------------------------------------------------------------------
Massachusetts Fund 2,300 (155,249)
- -------------------------------------------------------------------------------
DESCRIPTION - Agreement with Goldman Sachs terminating December 10, 2003 to
pay the difference between the notional value and the market value of a bond
with a 4.78% coupon maturing on 12/10/23 priced at a yield to maturity equal
to the MMD general obligation yield curve rate for the designated maturity
year as of the close of business on the termination date, if negative (receive
if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000 OMITTED) ($)
- -------------------------------------------------------------------------------
California Fund 3,500 (86,779)
- -------------------------------------------------------------------------------
Florida Fund 750 (18,596)
- -------------------------------------------------------------------------------
Georgia Fund 750 (18,595)
- -------------------------------------------------------------------------------
Maryland Fund 1,000 (24,794)
- -------------------------------------------------------------------------------
Massachusetts Fund 2,000 (49,588)
- -------------------------------------------------------------------------------
DESCRIPTION - Agreement with Merrill Lynch terminating January 14, 2004 to pay
the difference between 4.029% coupon maturing on 1/14/16 priced at a yield to
maturity equal to the MMD general obligation yield curve rate for the
designated maturity year as of the close of business on the termination date,
if negative (receive if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000 OMITTED) ($)
- -------------------------------------------------------------------------------
California Fund 4,400 (49,775)
- -------------------------------------------------------------------------------
Maryland Fund 1,400 (15,838)
- -------------------------------------------------------------------------------
Massachusetts Fund 2,700 (30,544)
- -------------------------------------------------------------------------------
DESCRIPTION - Agreement with Goldman Sachs terminating October 1, 2003 to pay
the difference between the notional value and the market value of a bond with
a 4.39% coupon maturing on 10/01/18 priced at a yield to maturity equal to the
MMD general obligation yield curve rate for the designated maturity year as of
the close of business on the termination date, if negative (receive if
positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000 OMITTED) ($)
- -------------------------------------------------------------------------------
Alabama Fund 1,500 (60,158)
- -------------------------------------------------------------------------------
Arkansas Fund 2,000 (80,211)
- -------------------------------------------------------------------------------
DESCRIPTION - Agreement with Goldman Sachs terminating October 1, 2003 to pay
the difference between the notional value and the market value of a bond with
a 4.04% coupon maturing on 10/01/14 priced at a yield to maturity equal to the
MMD general obligation yield curve rate for the designated maturity year as of
the close of business on the termination date, if negative (receive if
positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000 OMITTED) ($)
- -------------------------------------------------------------------------------
California Fund 9,000 (364,299)
- -------------------------------------------------------------------------------
DESCRIPTION - Agreement with Merrill Lynch terminating January 20, 2004 to pay
the difference between the notional value and the market value of a bond with
a 4.403% coupon maturing on 1/20/19 priced to yield to maturity equal to the
MMD general obligation yield curve rate for the designated maturity year as of
the close of business on the termination date, if negative (received if
positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000 OMITTED) ($)
- -------------------------------------------------------------------------------
Alabama Fund 750 (18,295)
- -------------------------------------------------------------------------------
Florida Fund 1,000 (24,393)
- -------------------------------------------------------------------------------
Massachusetts Fund 1,750 (42,688)
- -------------------------------------------------------------------------------
DESCRIPTION - Agreement with Merrill Lynch terminating February 11, 2004 to
pay the difference between the notional value and the market value of a bond
with a 4.35% coupon maturing on 2/11/19 priced at a yield to maturity equal to
the MMD general obligation yield curve for the designated maturity year as of
the close of business on the termination date, if positive (received if
negative):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000 OMITTED) ($)
- -------------------------------------------------------------------------------
Alabama Fund 500 (8,007)
- -------------------------------------------------------------------------------
Arkansas Fund 680 (10,901)
- -------------------------------------------------------------------------------
Florida Fund 600 (9,618)
- -------------------------------------------------------------------------------
Georgia Fund 450 (7,214)
- -------------------------------------------------------------------------------
Massachusetts Fund 1,500 (24,045)
- -------------------------------------------------------------------------------
DESCRIPTION - Agreement with Merrill Lynch terminating January 7, 2004 to pay
the difference between the notional value and the market value of a bond with
a 4.285% coupon maturing on 1/07/19 priced at a yield to maturity equal to the
MMD general obligation yield curve rate for the designated maturity year as of
the close of business on the termination date, if negative (received if
positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000 OMITTED) ($)
- -------------------------------------------------------------------------------
Alabama Fund 200 (2,578)
- -------------------------------------------------------------------------------
California Fund 950 (12,245)
- -------------------------------------------------------------------------------
Florida Fund 200 (2,578)
- -------------------------------------------------------------------------------
Georgia Fund 150 (1,933)
- -------------------------------------------------------------------------------
Maryland Fund 300 (3,867)
- -------------------------------------------------------------------------------
Massachusetts Fund 550 (7,089)
- -------------------------------------------------------------------------------
DESCRIPTION - Agreement with Merrill Lynch terminating January 15, 2004 to pay
the difference between the notional value and the market value of a bond with
a 4.029% coupon maturing on 1/15/16 priced at a yield to maturity equal to the
MMD general obligation yield curve rate for the designated maturity year as of
the close of business on the termination date, if negative (received if
possible):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000 OMITTED) ($)
- -------------------------------------------------------------------------------
California Fund 4,400 (49,347)
- -------------------------------------------------------------------------------
Maryland Fund 1,400 (15,701)
- -------------------------------------------------------------------------------
Massachusetts Fund 2,700 (30,281)
- -------------------------------------------------------------------------------
DESCRIPTION - Agreement with Merrill Lynch terminating October 8, 2003 to pay
the difference between the notional value and the market value of a bond with
a 4.54% coupon maturing on 10/08/20 priced at a yield to maturity equal to the
MMD general obligation yield curve rate for the designated maturity year as of
the close of business on the termination date, if negative (received if
positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF DEPRECIATION
FUND CONTRACT (000 OMITTED) ($)
- -------------------------------------------------------------------------------
Florida Fund 3,000 (92,613)
- -------------------------------------------------------------------------------
DESCRIPTION - Agreement with Goldman Sachs terminating December 9, 2003 to pay
the difference between the notional value and the market value of a bond with
a 3.46% coupon maturing on 12/09/15 priced at a yield to maturity equal to the
MMD general obligation yield curve rate for the designated maturity year as of
the close of business on the termination date, if negative (received if
positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF APPRECIATION
FUND CONTRACT (000 OMITTED) ($)
- -------------------------------------------------------------------------------
Alabama Fund 750 24,370
- -------------------------------------------------------------------------------
Arkansas Fund 2,000 64,988
- -------------------------------------------------------------------------------
California Fund 3,000 97,481
- -------------------------------------------------------------------------------
Florida Fund 2,000 64,987
- -------------------------------------------------------------------------------
Georgia Fund 750 24,370
- -------------------------------------------------------------------------------
Maryland Fund 1,500 48,741
- -------------------------------------------------------------------------------
Massachusetts Fund 1,500 48,741
- -------------------------------------------------------------------------------
DESCRIPTION - Agreement with Goldman Sachs terminating November 19, 2003 to
pay the difference between the notional value and the market value of a bond
with a 3.915% coupon maturing on 11/19/18 priced at a yield to maturity equal
to the MMD general obligation yield curve rate for the designated maturity
year as of the close of business on the termination date, if negative
(received if positive):
NOTIONAL PRINCIPAL UNREALIZED
AMOUNT OF APPRECIATION
FUND CONTRACT (000 OMITTED) ($)
- -------------------------------------------------------------------------------
Florida Fund 2,000 37,414
- -------------------------------------------------------------------------------
Total Unrealized Depreciation on Rate Lock Swaps
UNREALIZED
DEPRECIATION
FUND ($)
- -------------------------------------------------------------------------------
Alabama Fund (29,253)
- -------------------------------------------------------------------------------
Arkansas Fund (294,048)
- -------------------------------------------------------------------------------
California Fund (734,961)
- -------------------------------------------------------------------------------
Florida Fund (178,950)
- -------------------------------------------------------------------------------
Georgia Fund (263,699)
- -------------------------------------------------------------------------------
Maryland Fund (117,962)
- -------------------------------------------------------------------------------
Massachusetts Fund (477,956)
- -------------------------------------------------------------------------------
At September 30, 2003 each fund had sufficient cash and/or securities to cover
any commitments under these contracts.
(8) RESTRICTED SECURITIES
Each fund may invest not more than 15% of its total assets in securities,
which are subject to legal or contractual restrictions on resale. At September
30, 2003 the funds owned the following restricted securities, excluding
securities issued under Rule 144A, which may not be publicly sold without
registration under the Securities Act of 1933. Each fund does not have the
right to demand that such securities be registered. The value of these
securities is determined by valuations furnished by dealers or by a pricing
service, or if not available, in good faith by the Trustees.
DATE OF SHARE/PAR
FUND DESCRIPTION ACQUISITION AMOUNT COST VALUE
- ------------------------------------------------------------------------------------------------------------------------------------
Alabama Fund Guam Power Authority Rev., RITES
AMBAC, 9.198s, 2013 5/20/99 500,000 $536,360 $613,970
- ------------------------------------------------------------------------------------------------------------------------------------
Guam Power Authority Rev., RITES
AMBAC, 8.698s, 2018 5/20/99 4,500,000 4,376,790 5,064,930
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency, RITES, FSA, 9.773s, 2017 1/06/00 500,000 469,080 618,780
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES, AMBAC, 9.458s, 2013 9/30/99 500,000 509,110 653,940
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES, AMBAC, 9.458s, 2016 3/31/99 500,000 569,030 655,830
- ------------------------------------------------------------------------------------------------------------------------------------
$7,607,450
- ------------------------------------------------------------------------------------------------------------------------------------
Arkansas Fund Commonwealth of Puerto Rico, RITES, MBIA, 10.228s, 2020 3/30/00 3,000,000 $3,067,320 $4,093,380
- ------------------------------------------------------------------------------------------------------------------------------------
Commonwealth of Puerto Rico Infrastructure, RITES, 9.728s, 2019 10/5/00 1,250,000 1,282,225 1,559,400
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency, RITES, FSA, 9.773s, 2017 1/06/00 735,000 689,548 909,606
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency, RITES, FSA, 9.773s, 2018 1/06/00 3,250,000 3,060,835 3,985,540
- ------------------------------------------------------------------------------------------------------------------------------------
$10,547,926
- ------------------------------------------------------------------------------------------------------------------------------------
California Fund Los Angeles, CA, RITES, 9.159s 2014 7/20/99 5,405,000 $5,672,548 $6,852,891
- ------------------------------------------------------------------------------------------------------------------------------------
Los Angeles, CA, Unified School District, RITES,
Pennsylvania 1115, FSA, 9.159s, 2020 3/04/03 5,000,000 5,808,100 5,761,400
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth, ROLS, Series II R 124B, XLCA,
9.716s, 2017 10/22/01 1,500,000 1,816,140 1,975,200
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth, ROLS, Series II R 184C, FGIC,
8.639s, 2020 8/05/02 3,300,000 4,269,738 4,416,456
- ------------------------------------------------------------------------------------------------------------------------------------
Southern California Metropolitan Water District,
RITES, 10.159s, 2018 5/07/01 5,000,000 5,819,300 6,820,750
- ------------------------------------------------------------------------------------------------------------------------------------
State of California, RITES, 10.139s, 2017 1/03/00 1,250,000 1,230,275 1,523,375
- ------------------------------------------------------------------------------------------------------------------------------------
University of California Rev., RITES, MBIA, 8.909s, 2016 5/21/99 5,705,000 5,783,273 6,491,149
- ------------------------------------------------------------------------------------------------------------------------------------
$33,841,221
- ------------------------------------------------------------------------------------------------------------------------------------
Florida Fund Commonwealth of Puerto Rico, RITES, MBIA, 10.228s, 2019 3/30/00 1,000,000 $1,030,240 $1,364,460
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway & Transportation,
ROLS, Railroad II R 227 1, MBIA, 9.806s, 2020 4/25/03 2,500,000 3,282,600 3,315,500
- ------------------------------------------------------------------------------------------------------------------------------------
State of Florida, RITES, 8.639s, 2017 4/09/99 3,000,000 3,042,840 3,370,560
- ------------------------------------------------------------------------------------------------------------------------------------
$8,050,520
- ------------------------------------------------------------------------------------------------------------------------------------
Georgia Fund Atlanta, GA, Water & Wastewater Rev., RITES,
FGIC, 9.639s, 2016 4/20/99 4,000,000 $4,668,400 $5,381,120
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico, Municipal Finance Agency, RITES,
FSA, 10.781s, 2016 1/06/00 500,000 519,760 674,050
- ------------------------------------------------------------------------------------------------------------------------------------
$6,055,170
- ------------------------------------------------------------------------------------------------------------------------------------
Maryland Fund Guam Power Authority Rev., RITES, AMBAC, 9.198s, 2015 5/20/99 1,680,000 $1,760,909 $2,047,450
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority Rev., RITES,
FSA, 9.158s, 2015 9/16/99 1,400,000 1,367,100 1,657,292
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency, RITES,
FSA, 9.773s, 2019 1/06/00 1,000,000 905,080 1,215,140
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES, AMBAC, 9.458s, 2013 9/30/99 500,000 509,110 653,940
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES, AMBAC, 9.458s, 2016 3/31/99 1,520,000 1,729,851 1,993,723
- ------------------------------------------------------------------------------------------------------------------------------------
$7,567,545
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts Fund Dudley-Charlton, MA, Regional School District, RITES, FGIC,
9.208s, 2015 5/05/99 1,365,000 $1,501,582 $1,743,624
- ------------------------------------------------------------------------------------------------------------------------------------
Dudley-Charlton, MA, Regional School District, RITES, FGIC,
9.208s, 2016 5/05/99 1,430,000 1,558,414 1,828,570
- ------------------------------------------------------------------------------------------------------------------------------------
Dudley-Charlton, MA, Regional School District, RITES, FGIC,
9.208s, 2018 5/05/99 1,565,000 1,687,884 1,981,352
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts Bay Transit Authority, Pennsylvania 675A 1,
RITES, 10.965s, 2016 4/19/00 4,835,000 5,484,534 6,765,132
- ------------------------------------------------------------------------------------------------------------------------------------
Massachusetts Water Resources Authority, RITES,
FGIC, 11.482, 2019 3/16/00 4,010,000 4,742,707 5,942,740
- ------------------------------------------------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corp., RITES, AMBAC, 9.458s, 2016 3/31/99 2,500,000 2,845,150 3,279,150
- ------------------------------------------------------------------------------------------------------------------------------------
$21,540,568
- ------------------------------------------------------------------------------------------------------------------------------------
At September 30, 2003, restricted securities constituted the following percentages of each fund's net assets:
ALABAMA ARKANSAS CALIFORNIA FLORIDA GEORGIA MARYLAND MASSACHUSETTS
FUND FUND FUND FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
7.60% 7.03% 7.54% 7.51% 8.32% 4.37% 7.79%
- ------------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------
TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------------------------------------
The following tables present certain information regarding the Trustees and officers of MFS Municipal Series
Trust, of which each fund is a series, including their principal occupations, which, unless specific dates are
shown, are of more than five years' duration, although the titles may not have been the same throughout.
The Trust does not hold annual shareholder meetings for the purpose of electing Trustees, and Trustees are not
elected for fixed terms. This means that each Trustee will be elected to hold office until his or her
successor is chosen and qualified or until his or her earlier death, resignation, retirement or removal. Each
officer will hold office until his or her successor is chosen and qualified, or until he or she retires,
resigns or is removed from office.
Messrs. Shames, Cohn, Sherrat and Smith, and Ms. O'Neill, have served in their capacity as Trustee of the
Trust continuously since originally elected or appointed. Messrs. Ballen, Gutow, Ives, Perera and Poorvu, and
Ms. Smith, were elected by shareholders and have served as Trustees of the Trust since January 1, 2002. Mr.
Parke has served as Trustee of the Trust since January 1, 2002.
Each of the Trust's Trustees and officers holds comparable positions with certain other funds of which MFS or
a subsidiary is the investment adviser or distributor and, in the case of the officers, with certain
affiliates of MFS. Each Trustee serves as a board member of 110 funds within the MFS Family of Funds.
The Statement of Additional Information contains further information about the Trustees and is available
without charge upon request, by calling 1-800-225-2606.
Name, age, position with Trust, principal occupation, and other directorships(1)
INTERESTED TRUSTEES
JEFFREY L. SHAMES(2) (born 06/02/55) OFFICERS
Chairman JOHN W. BALLEN (born 09/12/59)
Massachusetts Financial Services Company, Trustee and President
Chairman Massachusetts Financial Services Company, Chief
Executive Officer and Director
JOHN W. BALLEN(2) (born 09/12/59)
Trustee and President JAMES R. BORDEWICK, JR. (born 03/06/59)
Massachusetts Financial Services Company, Assistant Secretary and Assistant Clerk
Chief Executive Officer and Director Massachusetts Financial Services Company, Senior
Vice President and Associate General Counsel
KEVIN R. PARKE(2) (born 12/14/59)
Trustee STEPHEN E. CAVAN (born 11/06/53)
Massachusetts Financial Services Company, Secretary and Clerk
President, Chief Investment Officer and Director Massachusetts Financial Services Company, Senior
Vice President, General Counsel and Secretary
INDEPENDENT TRUSTEES
STEPHANIE A. DESISTO (born 10/01/53)
LAWRENCE H. COHN, M.D. (born 03/11/37) Assistant Treasurer
Trustee Massachusetts Financial Services Company, Vice
Brigham and Women's Hospital, Chief of Cardiac President (since April 2003); Brown Brothers
Surgery; Harvard Medical School, Professor of Harriman & Co., Senior Vice President (November
Surgery 2002 to April 2003); ING Groep N.V./Aeltus
Investment Management, Senior Vice President
WILLIAM R. GUTOW (born 09/27/41) (prior to November 2002)
Trustee
Private investor and real estate consultant; ROBERT R. FLAHERTY (born 09/18/63)
Capitol Entertainment Management Company Assistant Treasurer
(video franchise), Vice Chairman Massachusetts Financial Services Company, Vice
President (since August 2000); UAM Fund Services,
J. ATWOOD IVES (born 05/01/36) Senior Vice President (prior to August 2000)
Trustee
Private investor; KeySpan Corporation (energy RICHARD M. HISEY (born 08/29/58)
related services), Director; Eastern Enterprises Treasurer
(diversified services company), Chairman, Trustee Massachusetts Financial Services Company, Senior
and Chief Executive Officer (until November 2000) Vice President (since July 2002); The Bank of New
York, Senior Vice President (September 2000 to
ABBY M. O'NEILL (born 04/27/28) July 2002); Lexington Global Asset Managers, Inc.,
Trustee Executive Vice President and Chief Financial
Private investor; Rockefeller Financial Services, Officer (prior to September 2000); Lexington
Inc. (investment advisers), Chairman and Chief Funds, Treasurer (prior to September 2000)
Executive Officer
ELLEN MOYNIHAN (born 11/13/57)
LAWRENCE T. PERERA (born 06/23/35) Assistant Treasurer
Trustee Massachusetts Financial Services Company,
Hemenway & Barnes (attorneys), Partner Vice President
WILLIAM J. POORVU (born 04/10/35) JAMES O. YOST (born 06/12/60)
Trustee Assistant Treasurer
Private investor; Harvard University Graduate Massachusetts Financial Services Company, Senior
School of Business Administration, Class of 1961 Vice President
Adjunct Professor in Entrepreneurship Emeritus;
CBL & Associates Properties, Inc. (real estate
investment trust), Director
J. DALE SHERRATT (born 09/23/38)
Trustee
Insight Resources, Inc. (acquisition planning
specialists), President; Wellfleet Investments
(investor in health care companies), Managing
General Partner (since 1993); Cambridge
Nutraceuticals (professional nutritional
products), Chief Executive Officer (until May
2001)
ELAINE R. SMITH (born 04/25/46)
Trustee
Independent health care industry consultant
WARD SMITH (born 09/13/30)
Trustee
Private investor
(1) Directorships or trusteeships of companies required to report to the Securities and Exchange Commission
(i.e., "public companies").
(2) "Interested person" of MFS 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 Trust. The address of MFS
is 500 Boylston Street, Boston, Massachusetts 02116.
INVESTMENT ADVISER
Massachusetts Financial Services Company
500 Boylston Street, Boston, MA 02116-3741
DISTRIBUTOR
MFS Fund Distributors, Inc.
500 Boylston Street, Boston, MA 02116-3741
PORTFOLIO MANAGERS
Michael L. Dawson(1)
Geoffrey L. Schechter(1)
CUSTODIAN
State Street Bank and Trust Company
225 Franklin Street, Boston, MA 02110
(1) MFS Investment Management
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MONEY MANAGEMENT FOR ALL TYPES OF INVESTORS
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YOUR GOALS ARE IMPORTANT
MFS offers a complete range of investments and investment services to address
specific financial needs over time. When your investing goals change, you can
easily stay with MFS for the products you need, when you need them. Whether
you're investing for college or retirement expenses or for tax management or
estate planning, MFS will be there.
Ask your investment professional how MFS can help you move toward the goals
you've set.
MFS FAMILY OF FUNDS(R)
More than 50 portfolios offer domestic and international equity and fixed-income
investment across the full risk spectrum
VARIABLE ANNUITIES
A selection of annuity products
with advantages for building and preserving wealth
MFS 401(k) AND IRA SUITES
Retirement plans for businesses
and individuals
MFS COLLEGE SAVINGS PLANS
Investment products to help meet education expenses
MFS PRIVATE PORTFOLIO SERVICES
Investment advisory services that provide custom products for high-net-worth
individuals
You can obtain a prospectus for any MFS product from your investment
professional. The prospectus contains complete information on the fees and
risks associated with investing. Read the prospectus carefully before
investing or sending money.
Variable annuities are offered
through MFS/Sun Life Financial Distributors, Inc.
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CONTACT INFORMATION
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INVESTOR INFORMATION
For information on MFS mutual funds, call your investment professional or, for
an information kit, call toll free: 1-800-225-2606 any business day from 8 a.m.
to 8 p.m. Eastern time.
A general description of the MFS Funds proxy voting policies is available
without charge, upon request, by calling 1-800-225-2606, by visiting the About
MFS section of mfs.com or by visiting the SEC's website at http://www.sec.gov.
INVESTOR SERVICE
Write to us at:
MFS Service Center, Inc.
P.O. Box 2281
Boston, MA 02107-9906
Type of Information Phone number Hours, Eastern Time
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General information 1-800-225-2606 8 a.m. to 8 p.m., any
business day
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Speech- or hearing-impaired 1-800-637-6576 9 a.m. to 5 p.m., any
business day
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Shares prices, account 1-800-MFS-TALK
balances exchanges (1-800-637-8255) 24 hours a day,
or stock and bond outlooks touch-tone required 365 days a year
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WORLD WIDE WEB
Go to WWW.MFS.COM for a clear view of market events, investor education,
account access, and product and performance insights.
Go paperless with EDELIVERY: Join your fellow shareholders who are already
taking advantage of this great new benefit from MFS. With eDelivery, we send
you prospectuses, reports, and proxies electronically. You get timely
information without mailbox clutter (and help your fund save printing and
postage costs).
SIGN-UP instructions: If your account is registered with us, go to
www.mfs.com, log in to your account via MFS Access, and select the eDelivery
sign up options.
If you own your MFS fund shares through a financial institution or through a
retirement plan, MFS Talk, MFS Access, and eDelivery may not be available to
you.
[logo] M F S(R)
INVESTMENT MANAGEMENT
500 Boylston Street
Boston, MA 02116-3741
(C) 2003 MFS Investment Management(R)
MFS(R) investment products are offered through MFS Fund Distributors, Inc.
500 Boylston Street, Boston, MA 02116
MSTA-SEM-11/03 44M
ITEM 2. CODE OF ETHICS.
The Registrant has adopted a Code of Ethics pursuant to Section 406 of the
Sarbanes-Oxley Act and as defined in the instructions to Form N-CSR that applies
to the Registrant's principal executive officer and principal financial and
accounting officer.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Messrs. J. Atwood Ives and Ward Smith, 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 the instructions to Form N-CSR. In addition, Messrs. Ives and Smith
are both "independent" members of the Audit Committee as defined in the
instructions to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time. Applicable for annual reports filed for the first
fiscal year ending after December 15, 2003.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
If applicable, not applicable at this time. Applicable for annual reports
covering periods ending on or after the compliance date for the listing
standards applicable to the particular issuer. Listed issuers must be in
compliance with the new listing rules by the earlier of the registrant's first
annual shareholders meeting after January 15, 2004 or October 31, 2004.
ITEM 6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Applicable for annual reports filed on or after July 1, 2003.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant's disclosure controls and
procedures as conducted within 90 days of the filing date of this 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 registrant's last fiscal half-year (the registrant's second fiscal
half-year in the case of an annual report) that has materially affected, or
is reasonably likely to materially affect, the registrant's internal control
over financial reporting.
ITEM 10. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(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: Code of
Ethics attached hereto.
(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2
under the Act (17 CFR 270.30a-2): Attached hereto.
(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 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
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 MUNICIPAL SERIES TRUST
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By (Signature and Title)* /s/ JOHN W. BALLEN
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John W. Ballen, President
Date: November 21, 2003
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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/ JOHN W. BALLEN
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John W. Ballen, President
(Principal Executive Officer)
Date: November 21, 2003
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By (Signature and Title)* /s/ RICHARD M. HISEY
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Richard M. Hisey, Treasurer
(Principal Financial Officer and Accounting Officer)
Date: November 21, 2003
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* Print name and title of each signing officer under his or her signature.