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 811-03090
MFS SERIES TRUST VII
(Exact name of registrant as specified in charter)
111 Huntington Avenue, Boston, Massachusetts 02199 (Address of principal executive offices) (Zip code)
Christopher R. Bohane
Massachusetts Financial Services Company
111Huntington Avenue Boston, Massachusetts 02199
(Name and address of agents for service)
Registrant's telephone number, including area code: (617) 954-5000
Date of fiscal year end: July 31
Date of reporting period: January 31, 2024
ITEM 1. REPORTS TO STOCKHOLDERS.
Item 1(a):
1 | |
2 | |
4 | |
9 | |
11 | |
12 | |
13 | |
22 | |
33 | |
33 | |
33 | |
33 | |
33 |
back cover |
Microsoft Corp. | 5.3% |
Apple, Inc. | 3.7% |
JPMorgan Chase & Co. | 3.3% |
Alphabet, Inc., “A” | 2.8% |
Cigna Group | 2.4% |
Target Corp. | 2.3% |
Wells Fargo & Co. | 2.3% |
McKesson Corp. | 2.2% |
Lam Research Corp. | 2.2% |
Home Depot, Inc. | 2.0% |
Financials | 20.8% |
Information Technology | 15.9% |
Health Care | 14.7% |
Industrials | 11.0% |
Consumer Staples | 6.6% |
Communication Services | 6.5% |
Energy | 6.3% |
Consumer Discretionary | 5.5% |
Materials | 4.3% |
Utilities | 3.4% |
Real Estate | 3.1% |
Convertible Debt | 0.4% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
August 1, 2023 through January 31, 2024
Share Class | Annualized Expense Ratio | Beginning Account Value 8/01/23 | Ending Account Value 1/31/24 | Expenses Paid During Period (p) 8/01/23-1/31/24 | |
A | Actual | 0.87% | $1,000.00 | $1,050.73 | $4.48 |
Hypothetical (h) | 0.87% | $1,000.00 | $1,020.76 | $4.42 | |
B | Actual | 1.62% | $1,000.00 | $1,046.71 | $8.33 |
Hypothetical (h) | 1.62% | $1,000.00 | $1,016.99 | $8.21 | |
C | Actual | 1.62% | $1,000.00 | $1,046.27 | $8.33 |
Hypothetical (h) | 1.62% | $1,000.00 | $1,016.99 | $8.21 | |
I | Actual | 0.62% | $1,000.00 | $1,051.58 | $3.20 |
Hypothetical (h) | 0.62% | $1,000.00 | $1,022.02 | $3.15 | |
R1 | Actual | 1.62% | $1,000.00 | $1,046.35 | $8.33 |
Hypothetical (h) | 1.62% | $1,000.00 | $1,016.99 | $8.21 | |
R2 | Actual | 1.12% | $1,000.00 | $1,048.92 | $5.77 |
Hypothetical (h) | 1.12% | $1,000.00 | $1,019.51 | $5.69 | |
R3 | Actual | 0.87% | $1,000.00 | $1,050.62 | $4.48 |
Hypothetical (h) | 0.87% | $1,000.00 | $1,020.76 | $4.42 | |
R4 | Actual | 0.62% | $1,000.00 | $1,051.55 | $3.20 |
Hypothetical (h) | 0.62% | $1,000.00 | $1,022.02 | $3.15 | |
R6 | Actual | 0.55% | $1,000.00 | $1,052.08 | $2.84 |
Hypothetical (h) | 0.55% | $1,000.00 | $1,022.37 | $2.80 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 97.3% | ||||
Aerospace & Defense – 2.5% | ||||
General Dynamics Corp. | 36,162 | $9,582,568 | ||
Honeywell International, Inc. | 10,864 | 2,197,353 | ||
$11,779,921 | ||||
Biotechnology – 0.8% | ||||
Gilead Sciences, Inc. | 46,039 | $3,603,012 | ||
Broadcasting – 1.4% | ||||
Omnicom Group, Inc. | 71,623 | $6,473,287 | ||
Brokerage & Asset Managers – 3.5% | ||||
Apollo Global Management, Inc. | 22,004 | $2,209,201 | ||
Bank of New York Mellon Corp. | 99,757 | 5,532,523 | ||
Citigroup, Inc. | 123,234 | 6,922,054 | ||
TPG, Inc. | 50,320 | 2,094,822 | ||
$16,758,600 | ||||
Business Services – 2.0% | ||||
Accenture PLC, “A” | 6,115 | $2,225,126 | ||
Insperity, Inc. | 31,883 | 3,656,662 | ||
Verisk Analytics, Inc., “A” | 14,506 | 3,503,634 | ||
$9,385,422 | ||||
Cable TV – 1.6% | ||||
Comcast Corp., “A” | 163,809 | $7,623,671 | ||
Computer Software – 5.3% | ||||
Microsoft Corp. | 63,835 | $25,379,519 | ||
Computer Software - Systems – 4.3% | ||||
Apple, Inc. | 95,964 | $17,695,762 | ||
Hitachi Ltd. | 38,100 | 2,992,777 | ||
$20,688,539 | ||||
Construction – 0.6% | ||||
Compagnie de Saint-Gobain S.A. | 42,130 | $2,983,411 | ||
Consumer Products – 2.9% | ||||
Colgate-Palmolive Co. | 31,470 | $2,649,774 | ||
Kenvue, Inc. | 35,304 | 732,911 | ||
Kimberly-Clark Corp. | 65,509 | 7,924,624 | ||
Newell Brands, Inc. | 274,575 | 2,284,464 | ||
$13,591,773 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Electrical Equipment – 0.4% | ||||
Johnson Controls International PLC | 33,733 | $1,777,392 | ||
Electronics – 5.7% | ||||
Applied Materials, Inc. | 46,062 | $7,567,986 | ||
Lam Research Corp. | 12,511 | 10,323,702 | ||
NXP Semiconductors N.V. | 16,375 | 3,448,084 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 49,751 | 5,619,873 | ||
$26,959,645 | ||||
Energy - Independent – 3.9% | ||||
EOG Resources, Inc. | 18,392 | $2,092,826 | ||
Phillips 66 | 61,205 | 8,832,493 | ||
Valero Energy Corp. | 56,361 | 7,828,543 | ||
$18,753,862 | ||||
Energy - Integrated – 2.0% | ||||
Eni S.p.A. | 297,816 | $4,763,415 | ||
Suncor Energy, Inc. | 74,688 | 2,473,212 | ||
TotalEnergies SE | 37,383 | 2,434,682 | ||
$9,671,309 | ||||
Food & Beverages – 0.8% | ||||
PepsiCo, Inc. | 23,879 | $4,024,328 | ||
Gaming & Lodging – 0.5% | ||||
International Game Technology PLC | 36,099 | $937,130 | ||
Las Vegas Sands Corp. | 30,237 | 1,479,194 | ||
$2,416,324 | ||||
Health Maintenance Organizations – 2.4% | ||||
Cigna Group | 37,940 | $11,418,043 | ||
Insurance – 5.6% | ||||
Ameriprise Financial, Inc. | 23,339 | $9,028,225 | ||
Equitable Holdings, Inc. | 268,111 | 8,764,549 | ||
Hartford Financial Services Group, Inc. | 22,317 | 1,940,686 | ||
Manulife Financial Corp. | 154,137 | 3,407,305 | ||
MetLife, Inc. | 52,830 | 3,662,176 | ||
$26,802,941 | ||||
Internet – 2.8% | ||||
Alphabet, Inc., “A” (a) | 94,990 | $13,308,099 | ||
Leisure & Toys – 0.7% | ||||
Nintendo Co. Ltd. | 59,900 | $3,350,569 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Machinery & Tools – 2.4% | ||||
AGCO Corp. | 25,704 | $3,144,370 | ||
Finning International, Inc. | 104,145 | 3,014,082 | ||
Volvo Group | 217,249 | 5,188,094 | ||
$11,346,546 | ||||
Major Banks – 8.3% | ||||
Bank of America Corp. | 161,871 | $5,505,233 | ||
BNP Paribas | 37,454 | 2,518,437 | ||
Goldman Sachs Group, Inc. | 6,349 | 2,438,080 | ||
JPMorgan Chase & Co. | 89,861 | 15,668,164 | ||
Morgan Stanley | 27,452 | 2,394,912 | ||
Wells Fargo & Co. | 214,818 | 10,779,567 | ||
$39,304,393 | ||||
Medical & Health Technology & Services – 2.2% | ||||
McKesson Corp. | 20,919 | $10,457,199 | ||
Medical Equipment – 0.5% | ||||
Medtronic PLC | 26,724 | $2,339,419 | ||
Metals & Mining – 3.2% | ||||
Glencore PLC | 958,487 | $5,107,167 | ||
Mitsui & Co. Ltd. | 39,800 | 1,612,289 | ||
Rio Tinto PLC | 122,677 | 8,555,437 | ||
$15,274,893 | ||||
Natural Gas - Pipeline – 0.3% | ||||
Energy Transfer LP | 98,256 | $1,405,061 | ||
Network & Telecom – 0.3% | ||||
InterDigital, Inc. | 15,020 | $1,577,851 | ||
Other Banks & Diversified Financials – 3.4% | ||||
American Express Co. | 22,276 | $4,471,684 | ||
M&T Bank Corp. | 43,918 | 6,065,076 | ||
Visa, Inc., “A” | 19,893 | 5,435,961 | ||
$15,972,721 | ||||
Pharmaceuticals – 8.9% | ||||
AbbVie, Inc. | 55,290 | $9,089,676 | ||
Eli Lilly & Co. | 5,661 | 3,654,798 | ||
Johnson & Johnson | 26,387 | 4,192,894 | ||
Organon & Co. | 442,989 | 7,375,767 | ||
Pfizer, Inc. | 338,005 | 9,153,175 | ||
Roche Holding AG | 18,222 | 5,206,348 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Pharmaceuticals – continued | ||||
Sanofi | 35,383 | $3,552,864 | ||
$42,225,522 | ||||
Railroad & Shipping – 2.2% | ||||
CSX Corp. | 224,072 | $7,999,371 | ||
Union Pacific Corp. | 9,867 | 2,406,857 | ||
$10,406,228 | ||||
Real Estate – 3.1% | ||||
Extra Space Storage, Inc., REIT | 16,570 | $2,393,371 | ||
Kimco Realty Corp., REIT | 282,650 | 5,709,530 | ||
Prologis, Inc., REIT | 53,108 | 6,728,252 | ||
Realty Income Corp., REIT | 0 | 14 | ||
$14,831,167 | ||||
Restaurants – 1.4% | ||||
Sodexo | 41,966 | $4,743,889 | ||
Starbucks Corp. | 19,855 | 1,847,110 | ||
$6,590,999 | ||||
Specialty Chemicals – 1.0% | ||||
Chemours Co. | 165,194 | $4,983,903 | ||
Specialty Stores – 5.4% | ||||
Amazon.com, Inc. (a) | 26,772 | $4,155,014 | ||
Gap, Inc. | 66,165 | 1,236,624 | ||
Home Depot, Inc. | 27,420 | 9,678,163 | ||
Target Corp. | 77,763 | 10,815,278 | ||
$25,885,079 | ||||
Tobacco – 1.1% | ||||
Altria Group, Inc. | 75,894 | $3,044,867 | ||
British American Tobacco PLC | 76,966 | 2,272,755 | ||
$5,317,622 | ||||
Trucking – 0.5% | ||||
United Parcel Service, Inc., “B” | 16,864 | $2,393,002 | ||
Utilities - Electric Power – 3.4% | ||||
Duke Energy Corp. | 37,654 | $3,608,383 | ||
Edison International | 68,027 | 4,590,462 | ||
Iberdrola S.A. | 329,448 | 3,969,280 | ||
National Grid PLC | 165,921 | 2,208,595 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Utilities - Electric Power – continued | ||||
Vistra Corp. | 45,867 | $1,881,923 | ||
$16,258,643 | ||||
Total Common Stocks (Identified Cost, $362,983,851) | $463,319,915 | |||
Preferred Stocks – 0.8% | ||||
Computer Software - Systems – 0.4% | ||||
Samsung Electronics Co. Ltd. | 42,134 | $1,834,319 | ||
Metals & Mining – 0.4% | ||||
Gerdau S.A. | 446,130 | $1,894,594 | ||
Total Preferred Stocks (Identified Cost, $3,866,407) | $3,728,913 | |||
Convertible Bonds – 0.4% | ||||
Utilities - Electric Power – 0.4% | ||||
Pacific Gas and Electric Corp., 4.25%, 12/01/2027 (n) (Identified Cost, $1,678,000) | $ | 1,678,000 | $1,707,365 | |
Investment Companies (h) – 1.1% | ||||
Money Market Funds – 1.1% | ||||
MFS Institutional Money Market Portfolio, 5.4% (v) (Identified Cost, $5,471,058) | 5,470,166 | $5,470,713 | ||
Other Assets, Less Liabilities – 0.4% | 1,734,846 | |||
Net Assets – 100.0% | $475,961,752 |
(a) | Non-income producing security. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $5,470,713 and $468,756,193, respectively. | |||
(n) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $1,707,365, representing 0.4% of net assets. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
Assets | |
Investments in unaffiliated issuers, at value (identified cost, $368,528,258) | $468,756,193 |
Investments in affiliated issuers, at value (identified cost, $5,471,058) | 5,470,713 |
Foreign currency, at value (identified cost, $5) | 5 |
Receivables for | |
Investments sold | 21,976,017 |
Fund shares sold | 3,591,899 |
Interest and dividends | 624,189 |
Receivable from investment adviser | 5,596 |
Other assets | 40,432 |
Total assets | $500,465,044 |
Liabilities | |
Payables for | |
Investments purchased | $23,776,766 |
Fund shares reacquired | 579,074 |
Payable to affiliates | |
Administrative services fee | 431 |
Shareholder servicing costs | 80,566 |
Distribution and service fees | 5,259 |
Payable for independent Trustees' compensation | 1,137 |
Accrued expenses and other liabilities | 60,059 |
Total liabilities | $24,503,292 |
Net assets | $475,961,752 |
Net assets consist of | |
Paid-in capital | $372,661,658 |
Total distributable earnings (loss) | 103,300,094 |
Net assets | $475,961,752 |
Shares of beneficial interest outstanding | 23,868,579 |
Net assets | Shares outstanding | Net asset value per share (a) | |
Class A | $306,196,521 | 15,374,696 | $19.92 |
Class B | 2,935,388 | 147,180 | 19.94 |
Class C | 13,830,442 | 693,569 | 19.94 |
Class I | 89,788,468 | 4,505,496 | 19.93 |
Class R1 | 1,093,944 | 54,747 | 19.98 |
Class R2 | 410,014 | 20,525 | 19.98 |
Class R3 | 2,459,439 | 123,241 | 19.96 |
Class R4 | 2,725,351 | 136,735 | 19.93 |
Class R6 | 56,522,185 | 2,812,390 | 20.10 |
(a) | Maximum offering price per share was equal to the net asset value per share for all share classes, except for Class A, for which the maximum offering price per share was $21.14 [100 / 94.25 x $19.92]. On sales of $50,000 or more, the maximum 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. Redemption price per share was equal to the net asset value per share for Classes I, R1, R2, R3, R4, and R6. |
Net investment income (loss) | |
Income | |
Dividends | $5,694,238 |
Dividends from affiliated issuers | 152,741 |
Interest | 11,592 |
Other | 9,859 |
Income on securities loaned | 1,994 |
Foreign taxes withheld | (90,451) |
Total investment income | $5,779,973 |
Expenses | |
Management fee | $1,082,690 |
Distribution and service fees | 443,617 |
Shareholder servicing costs | 170,448 |
Administrative services fee | 35,976 |
Independent Trustees' compensation | 4,217 |
Custodian fee | 19,206 |
Shareholder communications | 15,540 |
Audit and tax fees | 31,466 |
Legal fees | 1,041 |
Miscellaneous | 98,278 |
Total expenses | $1,902,479 |
Reduction of expenses by investment adviser | (128,311) |
Net expenses | $1,774,168 |
Net investment income (loss) | $4,005,805 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $1,985,430 |
Affiliated issuers | 914 |
Foreign currency | 12,937 |
Net realized gain (loss) | $1,999,281 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $18,339,816 |
Affiliated issuers | (318) |
Translation of assets and liabilities in foreign currencies | (23,247) |
Net unrealized gain (loss) | $18,316,251 |
Net realized and unrealized gain (loss) | $20,315,532 |
Change in net assets from operations | $24,321,337 |
Six months ended | Year ended | |
1/31/24 (unaudited) | 7/31/23 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $4,005,805 | $8,031,297 |
Net realized gain (loss) | 1,999,281 | 10,508,356 |
Net unrealized gain (loss) | 18,316,251 | 25,152,581 |
Change in net assets from operations | $24,321,337 | $43,692,234 |
Total distributions to shareholders | $(13,650,302) | $(20,923,760) |
Change in net assets from fund share transactions | $47,173,967 | $47,323,989 |
Total change in net assets | $57,845,002 | $70,092,463 |
Net assets | ||
At beginning of period | 418,116,750 | 348,024,287 |
At end of period | $475,961,752 | $418,116,750 |
Class A | Six months ended | Year ended | ||||
1/31/24 (unaudited) | 7/31/23 | 7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | |
Net asset value, beginning of period | $19.54 | $18.56 | $20.45 | $15.29 | $15.40 | $16.05 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.17 | $0.39 | $0.34 | $0.33 | $0.31 | $0.30 |
Net realized and unrealized gain (loss) | 0.80 | 1.67 | (0.60) | 5.42 | (0.06) | 0.00(w) |
Total from investment operations | $0.97 | $2.06 | $(0.26) | $5.75 | $0.25 | $0.30 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.16) | $(0.33) | $(0.31) | $(0.30) | $(0.32) | $(0.31) |
From net realized gain | (0.43) | (0.75) | (1.32) | (0.29) | (0.04) | (0.64) |
Total distributions declared to shareholders | $(0.59) | $(1.08) | $(1.63) | $(0.59) | $(0.36) | $(0.95) |
Net asset value, end of period (x) | $19.92 | $19.54 | $18.56 | $20.45 | $15.29 | $15.40 |
Total return (%) (r)(s)(t)(x) | 5.07(n) | 11.69 | (1.60) | 38.34 | 1.69 | 2.56 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.93(a) | 0.96 | 0.97 | 0.99 | 1.02 | 1.02 |
Expenses after expense reductions | 0.87(a) | 0.88 | 0.88 | 0.88 | 0.89 | 0.89 |
Net investment income (loss) | 1.80(a) | 2.13 | 1.72 | 1.81 | 2.05 | 1.97 |
Portfolio turnover | 25(n) | 42 | 42 | 43 | 42 | 39 |
Net assets at end of period (000 omitted) | $306,197 | $283,793 | $233,755 | $200,391 | $139,563 | $138,043 |
Class B | Six months ended | Year ended | ||||
1/31/24 (unaudited) | 7/31/23 | 7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | |
Net asset value, beginning of period | $19.56 | $18.57 | $20.45 | $15.29 | $15.39 | $16.03 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.10 | $0.25 | $0.19 | $0.19 | $0.20 | $0.19 |
Net realized and unrealized gain (loss) | 0.79 | 1.67 | (0.59) | 5.42 | (0.06) | 0.00(w) |
Total from investment operations | $0.89 | $1.92 | $(0.40) | $5.61 | $0.14 | $0.19 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.08) | $(0.18) | $(0.16) | $(0.16) | $(0.20) | $(0.19) |
From net realized gain | (0.43) | (0.75) | (1.32) | (0.29) | (0.04) | (0.64) |
Total distributions declared to shareholders | $(0.51) | $(0.93) | $(1.48) | $(0.45) | $(0.24) | $(0.83) |
Net asset value, end of period (x) | $19.94 | $19.56 | $18.57 | $20.45 | $15.29 | $15.39 |
Total return (%) (r)(s)(t)(x) | 4.62(n) | 10.87 | (2.32) | 37.26 | 0.92 | 1.86 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.68(a) | 1.71 | 1.72 | 1.74 | 1.77 | 1.77 |
Expenses after expense reductions | 1.62(a) | 1.63 | 1.63 | 1.63 | 1.64 | 1.64 |
Net investment income (loss) | 1.08(a) | 1.38 | 0.97 | 1.07 | 1.32 | 1.21 |
Portfolio turnover | 25(n) | 42 | 42 | 43 | 42 | 39 |
Net assets at end of period (000 omitted) | $2,935 | $3,326 | $3,307 | $3,911 | $3,534 | $4,604 |
Class C | Six months ended | Year ended | ||||
1/31/24 (unaudited) | 7/31/23 | 7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | |
Net asset value, beginning of period | $19.56 | $18.56 | $20.45 | $15.29 | $15.39 | $16.03 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.10 | $0.25 | $0.19 | $0.19 | $0.20 | $0.19 |
Net realized and unrealized gain (loss) | 0.79 | 1.68 | (0.60) | 5.42 | (0.06) | 0.00(w) |
Total from investment operations | $0.89 | $1.93 | $(0.41) | $5.61 | $0.14 | $0.19 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.08) | $(0.18) | $(0.16) | $(0.16) | $(0.20) | $(0.19) |
From net realized gain | (0.43) | (0.75) | (1.32) | (0.29) | (0.04) | (0.64) |
Total distributions declared to shareholders | $(0.51) | $(0.93) | $(1.48) | $(0.45) | $(0.24) | $(0.83) |
Net asset value, end of period (x) | $19.94 | $19.56 | $18.56 | $20.45 | $15.29 | $15.39 |
Total return (%) (r)(s)(t)(x) | 4.63(n) | 10.92 | (2.37) | 37.27 | 0.95 | 1.84 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.68(a) | 1.71 | 1.71 | 1.74 | 1.77 | 1.77 |
Expenses after expense reductions | 1.62(a) | 1.63 | 1.63 | 1.63 | 1.64 | 1.64 |
Net investment income (loss) | 1.06(a) | 1.39 | 0.97 | 1.07 | 1.31 | 1.21 |
Portfolio turnover | 25(n) | 42 | 42 | 43 | 42 | 39 |
Net assets at end of period (000 omitted) | $13,830 | $14,066 | $14,440 | $16,922 | $15,705 | $19,000 |
Class I | Six months ended | Year ended | ||||
1/31/24 (unaudited) | 7/31/23 | 7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | |
Net asset value, beginning of period | $19.56 | $18.57 | $20.46 | $15.30 | $15.41 | $16.06 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.19 | $0.44 | $0.39 | $0.37 | $0.35 | $0.34 |
Net realized and unrealized gain (loss) | 0.79 | 1.67 | (0.60) | 5.43 | (0.06) | 0.00(w) |
Total from investment operations | $0.98 | $2.11 | $(0.21) | $5.80 | $0.29 | $0.34 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.18) | $(0.37) | $(0.36) | $(0.35) | $(0.36) | $(0.35) |
From net realized gain | (0.43) | (0.75) | (1.32) | (0.29) | (0.04) | (0.64) |
Total distributions declared to shareholders | $(0.61) | $(1.12) | $(1.68) | $(0.64) | $(0.40) | $(0.99) |
Net asset value, end of period (x) | $19.93 | $19.56 | $18.57 | $20.46 | $15.30 | $15.41 |
Total return (%) (r)(s)(t)(x) | 5.16(n) | 12.02 | (1.36) | 38.66 | 1.95 | 2.82 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.68(a) | 0.71 | 0.72 | 0.73 | 0.77 | 0.77 |
Expenses after expense reductions | 0.62(a) | 0.63 | 0.63 | 0.63 | 0.64 | 0.64 |
Net investment income (loss) | 1.99(a) | 2.40 | 1.97 | 2.05 | 2.31 | 2.20 |
Portfolio turnover | 25(n) | 42 | 42 | 43 | 42 | 39 |
Net assets at end of period (000 omitted) | $89,788 | $59,721 | $52,365 | $40,722 | $21,344 | $23,261 |
Class R1 | Six months ended | Year ended | ||||
1/31/24 (unaudited) | 7/31/23 | 7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | |
Net asset value, beginning of period | $19.60 | $18.62 | $20.54 | $15.36 | $15.47 | $16.11 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.10 | $0.25 | $0.18 | $0.19 | $0.19 | $0.19 |
Net realized and unrealized gain (loss) | 0.79 | 1.68 | (0.58) | 5.45 | (0.05) | 0.01 |
Total from investment operations | $0.89 | $1.93 | $(0.40) | $5.64 | $0.14 | $0.20 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.08) | $(0.20) | $(0.20) | $(0.17) | $(0.21) | $(0.20) |
From net realized gain | (0.43) | (0.75) | (1.32) | (0.29) | (0.04) | (0.64) |
Total distributions declared to shareholders | $(0.51) | $(0.95) | $(1.52) | $(0.46) | $(0.25) | $(0.84) |
Net asset value, end of period (x) | $19.98 | $19.60 | $18.62 | $20.54 | $15.36 | $15.47 |
Total return (%) (r)(s)(t)(x) | 4.63(n) | 10.85 | (2.32) | 37.27 | 0.92 | 1.85 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.68(a) | 1.71 | 1.73 | 1.73 | 1.77 | 1.77 |
Expenses after expense reductions | 1.62(a) | 1.63 | 1.63 | 1.63 | 1.64 | 1.64 |
Net investment income (loss) | 1.05(a) | 1.37 | 0.93 | 1.06 | 1.28 | 1.21 |
Portfolio turnover | 25(n) | 42 | 42 | 43 | 42 | 39 |
Net assets at end of period (000 omitted) | $1,094 | $1,023 | $740 | $177 | $121 | $103 |
Class R2 | Six months ended | Year ended | ||||
1/31/24 (unaudited) | 7/31/23 | 7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | |
Net asset value, beginning of period | $19.62 | $18.62 | $20.51 | $15.34 | $15.44 | $16.08 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.14 | $0.35 | $0.29 | $0.28 | $0.28 | $0.26 |
Net realized and unrealized gain (loss) | 0.80 | 1.68 | (0.60) | 5.43 | (0.06) | 0.01 |
Total from investment operations | $0.94 | $2.03 | $(0.31) | $5.71 | $0.22 | $0.27 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.15) | $(0.28) | $(0.26) | $(0.25) | $(0.28) | $(0.27) |
From net realized gain | (0.43) | (0.75) | (1.32) | (0.29) | (0.04) | (0.64) |
Total distributions declared to shareholders | $(0.58) | $(1.03) | $(1.58) | $(0.54) | $(0.32) | $(0.91) |
Net asset value, end of period (x) | $19.98 | $19.62 | $18.62 | $20.51 | $15.34 | $15.44 |
Total return (%) (r)(s)(t)(x) | 4.89(n) | 11.49 | (1.89) | 37.92 | 1.46 | 2.38 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.18(a) | 1.21 | 1.21 | 1.24 | 1.27 | 1.27 |
Expenses after expense reductions | 1.12(a) | 1.13 | 1.13 | 1.13 | 1.14 | 1.14 |
Net investment income (loss) | 1.41(a) | 1.89 | 1.45 | 1.57 | 1.80 | 1.69 |
Portfolio turnover | 25(n) | 42 | 42 | 43 | 42 | 39 |
Net assets at end of period (000 omitted) | $410 | $189 | $128 | $242 | $210 | $369 |
Class R3 | Six months ended | Year ended | ||||
1/31/24 (unaudited) | 7/31/23 | 7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | |
Net asset value, beginning of period | $19.58 | $18.59 | $20.48 | $15.32 | $15.43 | $16.08 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.17 | $0.38 | $0.33 | $0.33 | $0.31 | $0.31 |
Net realized and unrealized gain (loss) | 0.80 | 1.68 | (0.59) | 5.43 | (0.06) | (0.01) |
Total from investment operations | $0.97 | $2.06 | $(0.26) | $5.76 | $0.25 | $0.30 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.16) | $(0.32) | $(0.31) | $(0.31) | $(0.32) | $(0.31) |
From net realized gain | (0.43) | (0.75) | (1.32) | (0.29) | (0.04) | (0.64) |
Total distributions declared to shareholders | $(0.59) | $(1.07) | $(1.63) | $(0.60) | $(0.36) | $(0.95) |
Net asset value, end of period (x) | $19.96 | $19.58 | $18.59 | $20.48 | $15.32 | $15.43 |
Total return (%) (r)(s)(t)(x) | 5.06(n) | 11.72 | (1.61) | 38.29 | 1.69 | 2.57 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.93(a) | 0.96 | 0.97 | 0.97 | 1.02 | 1.02 |
Expenses after expense reductions | 0.87(a) | 0.88 | 0.88 | 0.87 | 0.89 | 0.89 |
Net investment income (loss) | 1.81(a) | 2.05 | 1.73 | 1.74 | 2.05 | 2.04 |
Portfolio turnover | 25(n) | 42 | 42 | 43 | 42 | 39 |
Net assets at end of period (000 omitted) | $2,459 | $2,435 | $1,918 | $806 | $201 | $182 |
Class R4 | Six months ended | Year ended | ||||
1/31/24 (unaudited) | 7/31/23 | 7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | |
Net asset value, beginning of period | $19.56 | $18.57 | $20.47 | $15.31 | $15.42 | $16.06 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.20 | $0.43 | $0.30 | $0.39 | $0.35 | $0.34 |
Net realized and unrealized gain (loss) | 0.78 | 1.68 | (0.52) | 5.41 | (0.06) | 0.01 |
Total from investment operations | $0.98 | $2.11 | $(0.22) | $5.80 | $0.29 | $0.35 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.18) | $(0.37) | $(0.36) | $(0.35) | $(0.36) | $(0.35) |
From net realized gain | (0.43) | (0.75) | (1.32) | (0.29) | (0.04) | (0.64) |
Total distributions declared to shareholders | $(0.61) | $(1.12) | $(1.68) | $(0.64) | $(0.40) | $(0.99) |
Net asset value, end of period (x) | $19.93 | $19.56 | $18.57 | $20.47 | $15.31 | $15.42 |
Total return (%) (r)(s)(t)(x) | 5.16(n) | 12.02 | (1.40) | 38.64 | 1.95 | 2.88 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.68(a) | 0.71 | 0.73 | 0.72 | 0.77 | 0.77 |
Expenses after expense reductions | 0.62(a) | 0.63 | 0.64 | 0.63 | 0.64 | 0.64 |
Net investment income (loss) | 2.05(a) | 2.37 | 1.61 | 2.09 | 2.29 | 2.25 |
Portfolio turnover | 25(n) | 42 | 42 | 43 | 42 | 39 |
Net assets at end of period (000 omitted) | $2,725 | $2,510 | $2,187 | $424 | $101 | $88 |
Class R6 | Six months ended | Year ended | ||||
1/31/24 (unaudited) | 7/31/23 | 7/31/22 | 7/31/21 | 7/31/20 | 7/31/19 | |
Net asset value, beginning of period | $19.72 | $18.72 | $20.61 | $15.41 | $15.52 | $16.15 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.20 | $0.45 | $0.41 | $0.39 | $0.36 | $0.36 |
Net realized and unrealized gain (loss) | 0.80 | 1.68 | (0.60) | 5.46 | (0.06) | 0.01 |
Total from investment operations | $1.00 | $2.13 | $(0.19) | $5.85 | $0.30 | $0.37 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.19) | $(0.38) | $(0.38) | $(0.36) | $(0.37) | $(0.36) |
From net realized gain | (0.43) | (0.75) | (1.32) | (0.29) | (0.04) | (0.64) |
Total distributions declared to shareholders | $(0.62) | $(1.13) | $(1.70) | $(0.65) | $(0.41) | $(1.00) |
Net asset value, end of period (x) | $20.10 | $19.72 | $18.72 | $20.61 | $15.41 | $15.52 |
Total return (%) (r)(s)(t)(x) | 5.21(n) | 12.07 | (1.28) | 38.76 | 2.03 | 3.02 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.61(a) | 0.63 | 0.64 | 0.65 | 0.68 | 0.68 |
Expenses after expense reductions | 0.55(a) | 0.55 | 0.55 | 0.55 | 0.55 | 0.55 |
Net investment income (loss) | 2.12(a) | 2.46 | 2.05 | 2.14 | 2.39 | 2.31 |
Portfolio turnover | 25(n) | 42 | 42 | 43 | 42 | 39 |
Net assets at end of period (000 omitted) | $56,522 | $51,053 | $39,184 | $33,049 | $24,451 | $25,922 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities: | ||||
United States | $387,345,434 | $— | $— | $387,345,434 |
United Kingdom | 13,662,604 | 4,481,350 | — | 18,143,954 |
France | 4,743,889 | 11,489,394 | — | 16,233,283 |
Canada | 8,894,599 | — | — | 8,894,599 |
Japan | — | 7,955,635 | — | 7,955,635 |
Taiwan | 5,619,873 | — | — | 5,619,873 |
Switzerland | — | 5,206,348 | — | 5,206,348 |
Sweden | — | 5,188,094 | — | 5,188,094 |
Italy | — | 4,763,415 | — | 4,763,415 |
Other Countries | 1,894,594 | 5,803,599 | — | 7,698,193 |
U.S. Corporate Bonds | — | 1,707,365 | — | 1,707,365 |
Mutual Funds | 5,470,713 | — | — | 5,470,713 |
Total | $427,631,706 | $46,595,200 | $— | $474,226,906 |
Year ended 7/31/23 | |
Ordinary income (including any short-term capital gains) | $6,618,802 |
Long-term capital gains | 14,304,958 |
Total distributions | $20,923,760 |
As of 1/31/24 | |
Cost of investments | $375,149,037 |
Gross appreciation | 106,306,501 |
Gross depreciation | (7,228,632) |
Net unrealized appreciation (depreciation) | $99,077,869 |
As of 7/31/23 | |
Undistributed ordinary income | 1,870,658 |
Undistributed long-term capital gain | 9,930,686 |
Other temporary differences | 14,144 |
Net unrealized appreciation (depreciation) | 80,813,571 |
Six months ended 1/31/24 | Year ended 7/31/23 | ||
Class A | $8,764,766 | $14,275,859 | |
Class B | 76,973 | 168,638 | |
Class C | 347,834 | 687,507 | |
Class I | 2,550,461 | 3,032,760 | |
Class R1 | 26,992 | 48,636 | |
Class R2 | 12,263 | 7,445 | |
Class R3 | 73,633 | 127,077 | |
Class R4 | 80,541 | 132,550 | |
Class R6 | 1,716,839 | 2,443,288 | |
Total | $13,650,302 | $20,923,760 |
Up to $1 billion | 0.50% |
In excess of $1 billion and up to $2.5 Billion | 0.475% |
In excess of $2.5 billion | 0.45% |
Classes | ||||||||
A | B | C | I | R1 | R2 | R3 | R4 | R6 |
0.89% | 1.64% | 1.64% | 0.64% | 1.64% | 1.14% | 0.89% | 0.64% | 0.55% |
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | |
Class A | — | 0.25% | 0.25% | 0.25% | $ 353,493 |
Class B | 0.75% | 0.25% | 1.00% | 1.00% | 14,913 |
Class C | 0.75% | 0.25% | 1.00% | 1.00% | 66,306 |
Class R1 | 0.75% | 0.25% | 1.00% | 1.00% | 5,056 |
Class R2 | 0.25% | 0.25% | 0.50% | 0.50% | 880 |
Class R3 | — | 0.25% | 0.25% | 0.25% | 2,969 |
Total Distribution and Service Fees | $443,617 |
(d) | In accordance with the distribution plan for certain classes, the fund pays distribution and/or service fees equal to these annual percentage rates of each class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting period. Any rate changes, if applicable, are detailed below. |
(e) | The annual effective rates represent actual fees incurred under the distribution plan for the six months ended January 31, 2024 based on each class's average daily net assets. MFD has voluntarily agreed to rebate a portion of each class's 0.25% service fee attributable to accounts for which there is no financial intermediary specified on the account except for accounts attributable to MFS or its affiliates' seed money. There were no service fee rebates for the six months ended January 31, 2024. |
Amount | |
Class A | $1,255 |
Class B | 351 |
Class C | 85 |
Six months ended 1/31/24 | Year ended 7/31/23 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Class A | 1,509,997 | $28,579,020 | 3,001,125 | $54,703,352 | |
Class B | 2,808 | 52,185 | 27,425 | 485,794 | |
Class C | 119,276 | 2,257,545 | 182,814 | 3,323,811 | |
Class I | 2,154,811 | 40,546,441 | 2,450,291 | 44,483,503 | |
Class R1 | 1,740 | 33,541 | 15,755 | 281,633 | |
Class R2 | 13,327 | 253,996 | 2,821 | 51,470 | |
Class R3 | 6,010 | 113,566 | 61,273 | 1,104,943 | |
Class R4 | 8,079 | 156,818 | 13,639 | 250,241 | |
Class R6 | 576,475 | 10,981,170 | 906,549 | 16,614,297 | |
4,392,523 | $82,974,282 | 6,661,692 | $121,299,044 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Class A | 452,951 | $8,759,962 | 800,823 | $14,265,528 | |
Class B | 3,945 | 76,665 | 9,449 | 168,638 | |
Class C | 17,903 | 347,821 | 38,514 | 687,292 | |
Class I | 130,607 | 2,529,392 | 167,972 | 2,991,937 | |
Class R1 | 1,386 | 26,992 | 2,719 | 48,636 | |
Class R2 | 632 | 12,263 | 416 | 7,445 | |
Class R3 | 3,800 | 73,633 | 7,117 | 127,077 | |
Class R4 | 4,165 | 80,541 | 7,437 | 132,550 | |
Class R6 | 85,552 | 1,667,278 | 130,687 | 2,348,242 | |
700,941 | $13,574,547 | 1,165,134 | $20,777,345 |
Six months ended 1/31/24 | Year ended 7/31/23 | ||||
Shares | Amount | Shares | Amount | ||
Shares reacquired | |||||
Class A | (1,108,736) | $(21,055,974) | (1,877,071) | $(34,169,155) | |
Class B | (29,616) | (552,483) | (44,914) | (821,739) | |
Class C | (162,869) | (3,068,107) | (280,051) | (5,117,545) | |
Class I | (833,330) | (16,114,942) | (2,384,594) | (43,522,547) | |
Class R1 | (548) | (10,613) | (6,057) | (111,767) | |
Class R2 | (3,088) | (60,628) | (481) | (8,895) | |
Class R3 | (10,926) | (211,082) | (47,164) | (835,261) | |
Class R4 | (3,828) | (74,449) | (10,482) | (190,051) | |
Class R6 | (438,592) | (8,226,584) | (541,996) | (9,975,440) | |
(2,591,533) | $(49,374,862) | (5,192,810) | $(94,752,400) | ||
Net change | |||||
Class A | 854,212 | $16,283,008 | 1,924,877 | $34,799,725 | |
Class B | (22,863) | (423,633) | (8,040) | (167,307) | |
Class C | (25,690) | (462,741) | (58,723) | (1,106,442) | |
Class I | 1,452,088 | 26,960,891 | 233,669 | 3,952,893 | |
Class R1 | 2,578 | 49,920 | 12,417 | 218,502 | |
Class R2 | 10,871 | 205,631 | 2,756 | 50,020 | |
Class R3 | (1,116) | (23,883) | 21,226 | 396,759 | |
Class R4 | 8,416 | 162,910 | 10,594 | 192,740 | |
Class R6 | 223,435 | 4,421,864 | 495,240 | 8,987,099 | |
2,501,931 | $47,173,967 | 2,634,016 | $47,323,989 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $3,440,607 | $50,912,595 | $48,883,085 | $914 | $(318) | $5,470,713 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $152,741 | $— |
Equity Research Fund
Equity Research Fund
1 | |
3 | |
5 | |
9 | |
11 | |
12 | |
13 | |
21 | |
32 | |
32 | |
32 | |
32 | |
32 |
back cover |
Taiwan Semiconductor Manufacturing Co. Ltd. | 10.5% |
Samsung Electronics Co. Ltd. | 7.2% |
Reliance Industries Ltd. | 3.3% |
Tencent Holdings Ltd. | 3.0% |
Techtronic Industries Co. Ltd. | 2.4% |
PT Bank Negara Indonesia (Persero) Tbk | 2.4% |
Gruma S.A.B. de C.V. | 2.1% |
Galp Energia SGPS S.A., “B” | 2.1% |
Kotak Mahindra Bank Ltd. | 2.1% |
Midea Group Co. Ltd., “A” | 2.1% |
Financials | 23.5% |
Information Technology | 20.1% |
Consumer Staples | 10.6% |
Communication Services | 9.4% |
Consumer Discretionary | 9.3% |
Energy | 8.7% |
Industrials | 7.7% |
Materials | 5.8% |
Health Care | 1.4% |
Utilities | 1.4% |
China | 22.2% |
India | 15.6% |
South Korea | 11.5% |
Taiwan | 10.5% |
Brazil | 9.0% |
Mexico | 5.2% |
Hong Kong | 4.4% |
Indonesia | 3.8% |
Portugal | 2.9% |
Other Countries | 14.9% |
Hong Kong Dollar | 15.9% |
Indian Rupee | 15.6% |
South Korean Won | 11.5% |
Taiwan Dollar | 10.5% |
Brazilian Real | 9.0% |
Chinese Renminbi | 8.8% |
Euro | 7.4% |
United States Dollar | 5.7% |
Mexican Peso | 5.2% |
Other Currencies | 10.4% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
(x) | Represents the portfolio’s exposure to issuer countries as a percentage of a portfolio’s net assets. For purposes of this presentation, United States includes Cash & Cash Equivalents. |
(y) | Represents the portfolio’s exposure to a particular currency as a percentage of a portfolio's net assets. For purposes of this presentation, United States Dollar includes Cash & Cash Equivalents. |
August 1, 2023 through January 31, 2024
Share Class | Annualized Expense Ratio | Beginning Account Value 8/01/23 | Ending Account Value 1/31/24 | Expenses Paid During Period (p) 8/01/23-1/31/24 | |
A | Actual | 1.25% | $1,000.00 | $920.02 | $6.03 |
Hypothetical (h) | 1.25% | $1,000.00 | $1,018.85 | $6.34 | |
C | Actual | 2.00% | $1,000.00 | $916.44 | $9.63 |
Hypothetical (h) | 2.00% | $1,000.00 | $1,015.08 | $10.13 | |
I | Actual | 1.01% | $1,000.00 | $922.30 | $4.88 |
Hypothetical (h) | 1.01% | $1,000.00 | $1,020.06 | $5.13 | |
R1 | Actual | 2.00% | $1,000.00 | $916.41 | $9.63 |
Hypothetical (h) | 2.00% | $1,000.00 | $1,015.08 | $10.13 | |
R2 | Actual | 1.50% | $1,000.00 | $918.78 | $7.23 |
Hypothetical (h) | 1.50% | $1,000.00 | $1,017.60 | $7.61 | |
R3 | Actual | 1.25% | $1,000.00 | $921.19 | $6.04 |
Hypothetical (h) | 1.25% | $1,000.00 | $1,018.85 | $6.34 | |
R4 | Actual | 1.00% | $1,000.00 | $921.13 | $4.83 |
Hypothetical (h) | 1.00% | $1,000.00 | $1,020.11 | $5.08 | |
R6 | Actual | 0.99% | $1,000.00 | $921.20 | $4.78 |
Hypothetical (h) | 0.99% | $1,000.00 | $1,020.16 | $5.03 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 97.9% | ||||
Airlines – 1.2% | ||||
Grupo Aeroportuario del Sureste S.A.B. de C.V., ADR | 1,131 | $32,970 | ||
Alcoholic Beverages – 3.7% | ||||
Ambev S.A. | 9,200 | $24,289 | ||
China Resources Beer Holdings Co. Ltd. | 8,000 | 28,805 | ||
Kweichow Moutai Co. Ltd. | 200 | 44,466 | ||
$97,560 | ||||
Automotive – 3.4% | ||||
BYD Co. Ltd. | 2,000 | $44,590 | ||
Mahindra & Mahindra Ltd. | 2,365 | 46,829 | ||
$91,419 | ||||
Brokerage & Asset Managers – 1.4% | ||||
B3 S.A. - Brasil Bolsa Balcao | 13,800 | $36,461 | ||
Moscow Exchange MICEX-RTS PJSC (a)(u) | 15,769 | 0 | ||
$36,461 | ||||
Business Services – 2.4% | ||||
Infosys Ltd. | 1,275 | $25,449 | ||
Tata Consultancy Services Ltd. | 824 | 37,864 | ||
$63,313 | ||||
Chemicals – 1.4% | ||||
UPL Ltd. | 5,897 | $38,071 | ||
Computer Software – 0.8% | ||||
Kingsoft Corp. Ltd. | 9,000 | $21,804 | ||
Computer Software - Systems – 7.2% | ||||
Samsung Electronics Co. Ltd. | 3,573 | $193,745 | ||
Construction – 5.4% | ||||
Anhui Conch Cement Co. Ltd. | 12,000 | $24,068 | ||
Midea Group Co. Ltd., “A” | 6,900 | 55,982 | ||
Techtronic Industries Co. Ltd. | 6,000 | 64,098 | ||
$144,148 | ||||
Consumer Products – 0.8% | ||||
Amorepacific Corp. (a) | 259 | $22,650 | ||
Consumer Services – 1.6% | ||||
Localiza Rent a Car S.A. | 3,925 | $42,875 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Electronics – 10.5% | ||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 14,000 | $280,462 | ||
Energy - Independent – 3.3% | ||||
Reliance Industries Ltd. | 2,545 | $87,176 | ||
Energy - Integrated – 4.0% | ||||
Galp Energia SGPS S.A., “B” | 3,614 | $56,679 | ||
LUKOIL PJSC (a)(u) | 471 | 0 | ||
Petroleo Brasileiro S.A., ADR | 1,509 | 25,759 | ||
Petroleo Brasileiro S.A., ADR | 1,453 | 23,829 | ||
$106,267 | ||||
Engineering - Construction – 1.0% | ||||
Doosan Bobcat, Inc. | 720 | $27,080 | ||
Food & Beverages – 3.5% | ||||
Gruma S.A.B. de C.V. | 3,067 | $57,414 | ||
Inner Mongolia Yili Industrial Group Co. Ltd., “A” | 9,800 | 36,859 | ||
$94,273 | ||||
Food & Drug Stores – 0.8% | ||||
Jeronimo Martins, SGPS, S.A. | 929 | $21,164 | ||
Forest & Paper Products – 1.0% | ||||
Suzano S.A. | 2,600 | $27,089 | ||
Gaming & Lodging – 0.6% | ||||
Sands China Ltd. (a) | 5,600 | $14,684 | ||
Insurance – 3.5% | ||||
AIA Group Ltd. | 5,000 | $38,878 | ||
Ping An Insurance Co. of China Ltd., “H” | 8,000 | 33,757 | ||
Samsung Fire & Marine Insurance Co. Ltd. (a) | 105 | 20,707 | ||
$93,342 | ||||
Internet – 4.4% | ||||
NetEase, Inc., ADR | 385 | $37,591 | ||
Tencent Holdings Ltd. | 2,300 | 79,994 | ||
$117,585 | ||||
Major Banks – 5.2% | ||||
Banco Bradesco S.A., ADR | 10,021 | $31,065 | ||
Bandhan Bank Ltd. | 13,353 | 36,619 | ||
Erste Group Bank AG | 984 | 42,590 | ||
National Bank of Greece S.A. (a) | 3,714 | 28,216 | ||
$138,490 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Medical Equipment – 0.8% | ||||
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., “A” | 600 | $22,424 | ||
Metals & Mining – 3.9% | ||||
Industries Qatar Q.S.C. | 11,435 | $37,688 | ||
PT United Tractors Tbk | 26,600 | 38,686 | ||
Vale S.A., ADR | 2,115 | 28,954 | ||
$105,328 | ||||
Natural Gas - Distribution – 1.4% | ||||
China Resources Gas Group Ltd. | 13,300 | $37,597 | ||
Other Banks & Diversified Financials – 13.5% | ||||
China Merchants Bank Co. Ltd. “A” | 9,400 | $40,266 | ||
Credicorp Ltd. | 222 | 32,952 | ||
Emirates NBD Bank PJSC | 6,514 | 31,391 | ||
HDFC Bank Ltd. | 2,230 | 39,034 | ||
IndusInd Bank Ltd. | 1,850 | 34,041 | ||
Kasikornbank PLC | 6,200 | 20,796 | ||
KB Financial Group, Inc. | 1,033 | 43,808 | ||
Kotak Mahindra Bank Ltd. | 2,574 | 56,379 | ||
PT Bank Negara Indonesia (Persero) Tbk | 172,900 | 63,002 | ||
Sberbank of Russia PJSC (a)(u) | 11,152 | 0 | ||
$361,669 | ||||
Pharmaceuticals – 0.6% | ||||
Sun Pharmaceutical Industries Ltd. | 917 | $15,663 | ||
Precious Metals & Minerals – 1.4% | ||||
Gold Fields Ltd., ADR | 1,612 | $23,858 | ||
Polymetal International PLC (a) | 3,376 | 12,896 | ||
$36,754 | ||||
Restaurants – 1.9% | ||||
Yum China Holdings, Inc. | 1,463 | $50,605 | ||
Specialty Stores – 3.1% | ||||
PDD Holdings, Inc., ADR (a) | 276 | $35,016 | ||
Walmart de Mexico S.A.B. de C.V. | 11,865 | 49,021 | ||
$84,037 | ||||
Telecommunications - Wireless – 2.4% | ||||
Advanced Info Service Public Co. Ltd. | 7,300 | $44,857 | ||
Etihad Etisalat Co. | 1,316 | 18,283 | ||
$63,140 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Telephone Services – 1.8% | ||||
Hellenic Telecommunications Organization S.A. | 3,471 | $48,202 | ||
Total Common Stocks (Identified Cost, $2,961,114) | $2,618,047 |
Strike Price | First Exercise | |||
Rights – 0.0% | ||||
Consumer Services – 0.0% | ||||
Localiza Rent a Car S.A. (1 share for 1 right, Expiration 2/29/2024) (a) (Identified Cost, $0) | BRL 45.35 | 2/29/24 | 14 | $26 |
Investment Companies (h) – 3.1% | ||||
Money Market Funds – 3.1% | ||||
MFS Institutional Money Market Portfolio, 5.4% (v) (Identified Cost, $82,913) | 82,903 | $82,911 | ||
Other Assets, Less Liabilities – (1.0)% | (26,564) | |||
Net Assets – 100.0% | $2,674,420 |
(a) | Non-income producing security. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $82,911 and $2,618,073, respectively. | |||
(u) | The security was valued using significant unobservable inputs and is considered level 3 under the fair value hierarchy. For further information about the fund’s level 3 holdings, please see Note 2 in the Notes to Financial Statements. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below: | |
BRL | Brazilian Real |
Assets | |
Investments in unaffiliated issuers, at value (identified cost, $2,961,114) | $2,618,073 |
Investments in affiliated issuers, at value (identified cost, $82,913) | 82,911 |
Receivables for | |
Fund shares sold | 55 |
Dividends | 4,002 |
Receivable from investment adviser | 16,122 |
Other assets | 100 |
Total assets | $2,721,263 |
Liabilities | |
Payable to affiliates | |
Administrative services fee | $96 |
Shareholder servicing costs | 199 |
Distribution and service fees | 10 |
Payable for independent Trustees' compensation | 520 |
Deferred foreign capital gains tax expense payable | 4,206 |
Accrued expenses and other liabilities | 41,812 |
Total liabilities | $46,843 |
Net assets | $2,674,420 |
Net assets consist of | |
Paid-in capital | $3,553,877 |
Total distributable earnings (loss) | (879,457) |
Net assets | $2,674,420 |
Shares of beneficial interest outstanding | 373,429 |
Net assets | Shares outstanding | Net asset value per share (a) | |
Class A | $160,489 | 22,409 | $7.16 |
Class C | 48,120 | 6,754 | 7.12 |
Class I | 113,625 | 15,875 | 7.16 |
Class R1 | 53,062 | 7,459 | 7.11 |
Class R2 | 51,376 | 7,181 | 7.15 |
Class R3 | 51,703 | 7,223 | 7.16 |
Class R4 | 52,032 | 7,265 | 7.16 |
Class R6 | 2,144,013 | 299,263 | 7.16 |
(a) | Maximum offering price per share was equal to the net asset value per share for all share classes, except for Class A, for which the maximum offering price per share was $7.60 [100 / 94.25 x $7.16]. On sales of $50,000 or more, the maximum offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A and Class C shares. Redemption price per share was equal to the net asset value per share for Classes I, R1, R2, R3, R4, and R6. |
Net investment income (loss) | |
Income | |
Dividends | $20,168 |
Non-cash dividends | 8,115 |
Dividends from affiliated issuers | 1,975 |
Other | 77 |
Foreign taxes withheld | (3,240) |
Total investment income | $27,095 |
Expenses | |
Management fee | $12,652 |
Distribution and service fees | 893 |
Shareholder servicing costs | 865 |
Administrative services fee | 8,797 |
Independent Trustees' compensation | 1,509 |
Custodian fee | 13,317 |
Shareholder communications | 3,900 |
Audit and tax fees | 41,356 |
Legal fees | 7 |
Registration fees | 93,327 |
Miscellaneous | 14,518 |
Total expenses | $191,141 |
Fees paid indirectly | (19) |
Reduction of expenses by investment adviser | (176,980) |
Net expenses | $14,142 |
Net investment income (loss) | $12,953 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers (includes $444 foreign capital gains tax) | $(125,947) |
Affiliated issuers | (10) |
Foreign currency | 113 |
Net realized gain (loss) | $(125,844) |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (includes $1,193 increase in deferred foreign capital gains tax) | $(110,917) |
Affiliated issuers | (2) |
Translation of assets and liabilities in foreign currencies | (18) |
Net unrealized gain (loss) | $(110,937) |
Net realized and unrealized gain (loss) | $(236,781) |
Change in net assets from operations | $(223,828) |
Six months ended | Year ended | |
1/31/24 (unaudited) | 7/31/23 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $12,953 | $69,123 |
Net realized gain (loss) | (125,844) | (276,697) |
Net unrealized gain (loss) | (110,937) | 483,035 |
Change in net assets from operations | $(223,828) | $275,461 |
Total distributions to shareholders | $(78,501) | $(28,099) |
Change in net assets from fund share transactions | $138,531 | $134,711 |
Total change in net assets | $(163,798) | $382,073 |
Net assets | ||
At beginning of period | 2,838,218 | 2,456,145 |
At end of period | $2,674,420 | $2,838,218 |
Class A | Six months ended | Year ended | ||
1/31/24 (unaudited) | 7/31/23 | 7/31/22 | 7/31/21(c) | |
Net asset value, beginning of period | $8.00 | $7.32 | $9.22 | $10.00 |
Income (loss) from investment operations | ||||
Net investment income (loss) (d) | $0.03 | $0.18 | $0.08 | $0.04 |
Net realized and unrealized gain (loss) | (0.66) | 0.57 | (1.93) | (0.82) |
Total from investment operations | $(0.63) | $0.75 | $(1.85) | $(0.78) |
Less distributions declared to shareholders | ||||
From net investment income | $(0.21) | $(0.07) | $(0.02) | $— |
From net realized gain | — | — | (0.03) | — |
Total distributions declared to shareholders | $(0.21) | $(0.07) | $(0.05) | $— |
Net asset value, end of period (x) | $7.16 | $8.00 | $7.32 | $9.22 |
Total return (%) (r)(s)(t)(x) | (8.00)(n) | 10.29 | (20.10) | (7.80)(n) |
Ratios (%) (to average net assets) and Supplemental data: | ||||
Expenses before expense reductions (f) | 14.47(a) | 11.53 | 9.91 | 9.75(a) |
Expenses after expense reductions (f) | 1.25(a) | 1.25 | 1.25 | 1.25(a) |
Net investment income (loss) | 0.77(a)(l) | 2.48 | 0.95 | 0.97(a) |
Portfolio turnover | 15(n) | 59 | 39 | 17(n) |
Net assets at end of period (000 omitted) | $160 | $158 | $135 | $166 |
Class C | Six months ended | Year ended | ||
1/31/24 (unaudited) | 7/31/23 | 7/31/22 | 7/31/21(c) | |
Net asset value, beginning of period | $7.92 | $7.26 | $9.19 | $10.00 |
Income (loss) from investment operations | ||||
Net investment income (loss) (d) | $0.00(w) | $0.12 | $0.02 | $0.01 |
Net realized and unrealized gain (loss) | (0.66) | 0.56 | (1.92) | (0.82) |
Total from investment operations | $(0.66) | $0.68 | $(1.90) | $(0.81) |
Less distributions declared to shareholders | ||||
From net investment income | $(0.14) | $(0.02) | $— | $— |
From net realized gain | — | — | (0.03) | — |
Total distributions declared to shareholders | $(0.14) | $(0.02) | $(0.03) | $— |
Net asset value, end of period (x) | $7.12 | $7.92 | $7.26 | $9.19 |
Total return (%) (r)(s)(t)(x) | (8.36)(n) | 9.41 | (20.70) | (8.10)(n) |
Ratios (%) (to average net assets) and Supplemental data: | ||||
Expenses before expense reductions (f) | 15.30(a) | 12.22 | 10.69 | 10.51(a) |
Expenses after expense reductions (f) | 2.00(a) | 2.00 | 2.00 | 2.00(a) |
Net investment income (loss) | 0.01(a)(l) | 1.72 | 0.22 | 0.20(a) |
Portfolio turnover | 15(n) | 59 | 39 | 17(n) |
Net assets at end of period (000 omitted) | $48 | $52 | $43 | $47 |
Class I | Six months ended | Year ended | ||
1/31/24 (unaudited) | 7/31/23 | 7/31/22 | 7/31/21(c) | |
Net asset value, beginning of period | $8.00 | $7.32 | $9.23 | $10.00 |
Income (loss) from investment operations | ||||
Net investment income (loss) (d) | $0.04 | $0.20 | $0.10 | $0.05 |
Net realized and unrealized gain (loss) | (0.66) | 0.56 | (1.94) | (0.82) |
Total from investment operations | $(0.62) | $0.76 | $(1.84) | $(0.77) |
Less distributions declared to shareholders | ||||
From net investment income | $(0.22) | $(0.08) | $(0.04) | $— |
From net realized gain | — | — | (0.03) | — |
Total distributions declared to shareholders | $(0.22) | $(0.08) | $(0.07) | $— |
Net asset value, end of period (x) | $7.16 | $8.00 | $7.32 | $9.23 |
Total return (%) (r)(s)(t)(x) | (7.77)(n) | 10.58 | (20.02) | (7.70)(n) |
Ratios (%) (to average net assets) and Supplemental data: | ||||
Expenses before expense reductions (f) | 14.10(a) | 11.11 | 9.83 | 9.51(a) |
Expenses after expense reductions (f) | 1.01(a) | 1.00 | 1.00 | 1.00(a) |
Net investment income (loss) | 1.01(a)(l) | 2.71 | 1.22 | 1.20(a) |
Portfolio turnover | 15(n) | 59 | 39 | 17(n) |
Net assets at end of period (000 omitted) | $114 | $101 | $48 | $47 |
Class R1 | Six months ended | Year ended | ||
1/31/24 (unaudited) | 7/31/23 | 7/31/22 | 7/31/21(c) | |
Net asset value, beginning of period | $7.92 | $7.26 | $9.19 | $10.00 |
Income (loss) from investment operations | ||||
Net investment income (loss) (d) | $0.00(w) | $0.12 | $0.02 | $0.01 |
Net realized and unrealized gain (loss) | (0.66) | 0.56 | (1.92) | (0.82) |
Total from investment operations | $(0.66) | $0.68 | $(1.90) | $(0.81) |
Less distributions declared to shareholders | ||||
From net investment income | $(0.15) | $(0.02) | $— | $— |
From net realized gain | — | — | (0.03) | — |
Total distributions declared to shareholders | $(0.15) | $(0.02) | $(0.03) | $— |
Net asset value, end of period (x) | $7.11 | $7.92 | $7.26 | $9.19 |
Total return (%) (r)(s)(t)(x) | (8.36)(n) | 9.43 | (20.70) | (8.10)(n) |
Ratios (%) (to average net assets) and Supplemental data: | ||||
Expenses before expense reductions (f) | 15.33(a) | 12.32 | 10.66 | 10.51(a) |
Expenses after expense reductions (f) | 2.00(a) | 2.00 | 2.00 | 2.00(a) |
Net investment income (loss) | 0.01(a)(l) | 1.70 | 0.19 | 0.21(a) |
Portfolio turnover | 15(n) | 59 | 39 | 17(n) |
Net assets at end of period (000 omitted) | $53 | $55 | $36 | $46 |
Class R2 | Six months ended | Year ended | ||
1/31/24 (unaudited) | 7/31/23 | 7/31/22 | 7/31/21(c) | |
Net asset value, beginning of period | $7.98 | $7.31 | $9.21 | $10.00 |
Income (loss) from investment operations | ||||
Net investment income (loss) (d) | $0.02 | $0.16 | $0.06 | $0.03 |
Net realized and unrealized gain (loss) | (0.66) | 0.56 | (1.93) | (0.82) |
Total from investment operations | $(0.64) | $0.72 | $(1.87) | $(0.79) |
Less distributions declared to shareholders | ||||
From net investment income | $(0.19) | $(0.05) | $(0.00)(w) | $— |
From net realized gain | — | — | (0.03) | — |
Total distributions declared to shareholders | $(0.19) | $(0.05) | $(0.03) | $— |
Net asset value, end of period (x) | $7.15 | $7.98 | $7.31 | $9.21 |
Total return (%) (r)(s)(t)(x) | (8.12)(n) | 9.98 | (20.31) | (7.90)(n) |
Ratios (%) (to average net assets) and Supplemental data: | ||||
Expenses before expense reductions (f) | 14.79(a) | 11.82 | 10.16 | 10.01(a) |
Expenses after expense reductions (f) | 1.50(a) | 1.50 | 1.50 | 1.50(a) |
Net investment income (loss) | 0.54(a)(l) | 2.20 | 0.69 | 0.70(a) |
Portfolio turnover | 15(n) | 59 | 39 | 17(n) |
Net assets at end of period (000 omitted) | $51 | $56 | $37 | $46 |
Class R3 | Six months ended | Year ended | ||
1/31/24 (unaudited) | 7/31/23 | 7/31/22 | 7/31/21(c) | |
Net asset value, beginning of period | $7.99 | $7.32 | $9.22 | $10.00 |
Income (loss) from investment operations | ||||
Net investment income (loss) (d) | $0.03 | $0.18 | $0.08 | $0.04 |
Net realized and unrealized gain (loss) | (0.65) | 0.56 | (1.93) | (0.82) |
Total from investment operations | $(0.62) | $0.74 | $(1.85) | $(0.78) |
Less distributions declared to shareholders | ||||
From net investment income | $(0.21) | $(0.07) | $(0.02) | $— |
From net realized gain | — | — | (0.03) | — |
Total distributions declared to shareholders | $(0.21) | $(0.07) | $(0.05) | $— |
Net asset value, end of period (x) | $7.16 | $7.99 | $7.32 | $9.22 |
Total return (%) (r)(s)(t)(x) | (7.88)(n) | 10.20 | (20.11) | (7.80)(n) |
Ratios (%) (to average net assets) and Supplemental data: | ||||
Expenses before expense reductions (f) | 14.54(a) | 11.57 | 9.91 | 9.76(a) |
Expenses after expense reductions (f) | 1.25(a) | 1.25 | 1.25 | 1.25(a) |
Net investment income (loss) | 0.79(a)(l) | 2.45 | 0.94 | 0.95(a) |
Portfolio turnover | 15(n) | 59 | 39 | 17(n) |
Net assets at end of period (000 omitted) | $52 | $56 | $37 | $46 |
Class R4 | Six months ended | Year ended | ||
1/31/24 (unaudited) | 7/31/23 | 7/31/22 | 7/31/21(c) | |
Net asset value, beginning of period | $8.01 | $7.33 | $9.23 | $10.00 |
Income (loss) from investment operations | ||||
Net investment income (loss) (d) | $0.04 | $0.20 | $0.10 | $0.05 |
Net realized and unrealized gain (loss) | (0.67) | 0.56 | (1.93) | (0.82) |
Total from investment operations | $(0.63) | $0.76 | $(1.83) | $(0.77) |
Less distributions declared to shareholders | ||||
From net investment income | $(0.22) | $(0.08) | $(0.04) | $— |
From net realized gain | — | — | (0.03) | — |
Total distributions declared to shareholders | $(0.22) | $(0.08) | $(0.07) | $— |
Net asset value, end of period (x) | $7.16 | $8.01 | $7.33 | $9.23 |
Total return (%) (r)(s)(t)(x) | (7.89)(n) | 10.57 | (19.91) | (7.70)(n) |
Ratios (%) (to average net assets) and Supplemental data: | ||||
Expenses before expense reductions (f) | 14.29(a) | 11.32 | 9.66 | 9.51(a) |
Expenses after expense reductions (f) | 1.00(a) | 1.00 | 1.00 | 1.00(a) |
Net investment income (loss) | 1.05(a)(l) | 2.71 | 1.19 | 1.19(a) |
Portfolio turnover | 15(n) | 59 | 39 | 17(n) |
Net assets at end of period (000 omitted) | $52 | $56 | $37 | $46 |
Class R6 | Six months ended | Year ended | ||
1/31/24 (unaudited) | 7/31/23 | 7/31/22 | 7/31/21(c) | |
Net asset value, beginning of period | $8.01 | $7.33 | $9.23 | $10.00 |
Income (loss) from investment operations | ||||
Net investment income (loss) (d) | $0.04 | $0.20 | $0.10 | $0.05 |
Net realized and unrealized gain (loss) | (0.67) | 0.56 | (1.93) | (0.82) |
Total from investment operations | $(0.63) | $0.76 | $(1.83) | $(0.77) |
Less distributions declared to shareholders | ||||
From net investment income | $(0.22) | $(0.08) | $(0.04) | $— |
From net realized gain | — | — | (0.03) | — |
Total distributions declared to shareholders | $(0.22) | $(0.08) | $(0.07) | $— |
Net asset value, end of period (x) | $7.16 | $8.01 | $7.33 | $9.23 |
Total return (%) (r)(s)(t)(x) | (7.88)(n) | 10.58 | (19.91) | (7.70)(n) |
Ratios (%) (to average net assets) and Supplemental data: | ||||
Expenses before expense reductions (f) | 14.30(a) | 11.32 | 9.57 | 9.50(a) |
Expenses after expense reductions (f) | 0.99(a) | 0.99 | 0.99 | 0.99(a) |
Net investment income (loss) | 1.04(a)(l) | 2.73 | 1.19 | 1.20(a) |
Portfolio turnover | 15(n) | 59 | 39 | 17(n) |
Net assets at end of period (000 omitted) | $2,144 | $2,303 | $2,083 | $1,615 |
(a) | Annualized. |
(c) | For the period from the commencement of the fund’s investment operations, February 23, 2021, through the stated period end. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. See Note 2 in the Notes to Financial Statements for additional information. |
(l) | Recognition of net investment income by the fund may be affected by the timing of the declaration of dividends by companies in which the fund invests and the actual annual net investment income ratio may differ. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities: | ||||
China | $358,482 | $235,342 | $— | $593,824 |
India | 53,527 | 363,598 | — | 417,125 |
South Korea | 43,808 | 264,182 | — | 307,990 |
Taiwan | — | 280,462 | — | 280,462 |
Brazil | 240,347 | — | — | 240,347 |
Mexico | 139,405 | — | — | 139,405 |
Hong Kong | 14,684 | 102,976 | — | 117,660 |
Indonesia | 101,688 | — | — | 101,688 |
Portugal | 21,164 | 56,679 | — | 77,843 |
Other Countries | 341,729 | — | 0 | 341,729 |
Mutual Funds | 82,911 | — | — | 82,911 |
Total | $1,397,745 | $1,303,239 | $0 | $2,700,984 |
Equity Securities | |
Balance as of 7/31/23 | $0 |
Realized gain (loss) | (11,505) |
Change in unrealized appreciation or depreciation | 17,484 |
Sales | (5,979) |
Balance as of 1/31/24 | $0 |
Year ended 7/31/23 | |
Ordinary income (including any short-term capital gains) | $28,099 |
As of 1/31/24 | |
Cost of investments | $3,175,235 |
Gross appreciation | 51,318 |
Gross depreciation | (525,569) |
Net unrealized appreciation (depreciation) | $(474,251) |
As of 7/31/23 | |
Undistributed ordinary income | 67,948 |
Capital loss carryforwards | (276,967) |
Other temporary differences | (571) |
Net unrealized appreciation (depreciation) | (367,538) |
Short-Term | $(83,829) |
Long-Term | (193,138) |
Total | $(276,967) |
Six months ended 1/31/24 | Year ended 7/31/23 | ||
Class A | $4,104 | $1,218 | |
Class C | 939 | 159 | |
Class I | 2,800 | 582 | |
Class R1 | 1,109 | 155 | |
Class R2 | 1,308 | 369 | |
Class R3 | 1,443 | 477 | |
Class R4 | 1,579 | 587 | |
Class R6 | 65,219 | 24,552 | |
Total | $78,501 | $28,099 |
Up to $1 billion | 0.95% |
In excess of $1 billion and up to $2.5 billion | 0.90% |
In excess of $2.5 billion and up to $5 billion | 0.85% |
In excess of $5 billion | 0.825% |
Classes | |||||||
A | C | I | R1 | R2 | R3 | R4 | R6 |
1.31% | 2.06% | 1.06% | 2.06% | 1.56% | 1.31% | 1.06% | 0.99% |
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | |
Class A | — | 0.25% | 0.25% | 0.25% | $ 188 |
Class C | 0.75% | 0.25% | 1.00% | 1.00% | 243 |
Class R1 | 0.75% | 0.25% | 1.00% | 1.00% | 266 |
Class R2 | 0.25% | 0.25% | 0.50% | 0.50% | 130 |
Class R3 | — | 0.25% | 0.25% | 0.25% | 66 |
Total Distribution and Service Fees | $893 |
(d) | In accordance with the distribution plan for certain classes, the fund pays distribution and/or service fees equal to these annual percentage rates of each class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting period. Any rate changes, if applicable, are detailed below. |
(e) | The annual effective rates represent actual fees incurred under the distribution plan for the six months ended January 31, 2024 based on each class's average daily net assets. MFD has voluntarily agreed to rebate a portion of each class's 0.25% service fee attributable to accounts for which there is no financial intermediary specified on the account except for accounts attributable to MFS or its affiliates' seed money. There were no service fee rebates for the six months ended January 31, 2024. |
Six months ended 1/31/24 | Year ended 7/31/23 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Class A | 2,147 | $15,777 | 1,144 | $8,252 | |
Class C | 87 | 632 | 2,363 | 16,905 | |
Class I | 3,122 | 22,737 | 6,073 | 46,612 | |
Class R1 | 323 | 2,357 | 1,944 | 14,000 | |
Class R2 | — | — | 1,931 | 14,000 | |
Class R3 | — | — | 1,929 | 14,000 | |
Class R4 | — | — | 1,926 | 14,000 | |
Class R6 | 2,887 | 21,387 | 67,104 | 487,932 | |
8,566 | $62,890 | 84,414 | $615,701 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Class A | 558 | $4,104 | 171 | $1,218 | |
Class C | 128 | 939 | 22 | 159 | |
Class I | 382 | 2,800 | 82 | 582 | |
Class R1 | 152 | 1,109 | 22 | 155 | |
Class R2 | 178 | 1,308 | 52 | 369 | |
Class R3 | 196 | 1,443 | 67 | 477 | |
Class R4 | 215 | 1,579 | 82 | 587 | |
Class R6 | 8,873 | 65,219 | 3,448 | 24,552 | |
10,682 | $78,501 | 3,946 | $28,099 | ||
Shares reacquired | |||||
Class A | (95) | $(695) | (21) | $(148) | |
Class C | (6) | (45) | (1,807) | (13,594) | |
Class I | (282) | (2,115) | — | — | |
Class R1 | (1) | (5) | — | — | |
Class R6 | — | — | (67,172) | (495,347) | |
(384) | $(2,860) | (69,000) | $(509,089) |
Six months ended 1/31/24 | Year ended 7/31/23 | ||||
Shares | Amount | Shares | Amount | ||
Net change | |||||
Class A | 2,610 | $19,186 | 1,294 | $9,322 | |
Class C | 209 | 1,526 | 578 | 3,470 | |
Class I | 3,222 | 23,422 | 6,155 | 47,194 | |
Class R1 | 474 | 3,461 | 1,966 | 14,155 | |
Class R2 | 178 | 1,308 | 1,983 | 14,369 | |
Class R3 | 196 | 1,443 | 1,996 | 14,477 | |
Class R4 | 215 | 1,579 | 2,008 | 14,587 | |
Class R6 | 11,760 | 86,606 | 3,380 | 17,137 | |
18,864 | $138,531 | 19,360 | $134,711 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $121,368 | $366,226 | $404,671 | $(10) | $(2) | $82,911 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,975 | $— |
1 | |
2 | |
4 | |
9 | |
11 | |
12 | |
13 | |
18 | |
28 | |
28 | |
28 | |
28 | |
28 |
back cover |
Microsoft Corp. | 5.8% |
Cadence Design Systems, Inc. | 3.2% |
Mastercard, Inc., “A” | 2.8% |
Colgate-Palmolive Co. | 2.6% |
Charles Schwab Corp. | 2.2% |
Analog Devices, Inc. | 2.2% |
Agilent Technologies, Inc. | 2.1% |
Synopsys, Inc. | 2.1% |
Costco Wholesale Corp. | 2.0% |
Salesforce, Inc. | 2.0% |
Information Technology | 28.6% |
Financials | 19.1% |
Industrials | 18.0% |
Materials | 9.2% |
Consumer Staples | 7.0% |
Health Care | 6.9% |
Energy | 3.0% |
Consumer Discretionary | 2.6% |
Communication Services | 1.9% |
Real Estate | 1.3% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
August 1, 2023 through January 31, 2024
Share Class | Annualized Expense Ratio | Beginning Account Value 8/01/23 | Ending Account Value 1/31/24 | Expenses Paid During Period (p) 8/01/23-1/31/24 | |
A | Actual | 0.89% | $1,000.00 | $1,059.87 | $4.61 |
Hypothetical (h) | 0.89% | $1,000.00 | $1,020.66 | $4.52 | |
C | Actual | 1.64% | $1,000.00 | $1,056.09 | $8.48 |
Hypothetical (h) | 1.64% | $1,000.00 | $1,016.89 | $8.31 | |
I | Actual | 0.64% | $1,000.00 | $1,060.64 | $3.32 |
Hypothetical (h) | 0.64% | $1,000.00 | $1,021.92 | $3.25 | |
R1 | Actual | 1.65% | $1,000.00 | $1,055.13 | $8.52 |
Hypothetical (h) | 1.65% | $1,000.00 | $1,016.84 | $8.36 | |
R2 | Actual | 1.14% | $1,000.00 | $1,057.83 | $5.90 |
Hypothetical (h) | 1.14% | $1,000.00 | $1,019.41 | $5.79 | |
R3 | Actual | 0.89% | $1,000.00 | $1,059.22 | $4.61 |
Hypothetical (h) | 0.89% | $1,000.00 | $1,020.66 | $4.52 | |
R4 | Actual | 0.64% | $1,000.00 | $1,060.57 | $3.31 |
Hypothetical (h) | 0.64% | $1,000.00 | $1,021.92 | $3.25 | |
R6 | Actual | 0.62% | $1,000.00 | $1,060.79 | $3.21 |
Hypothetical (h) | 0.62% | $1,000.00 | $1,022.02 | $3.15 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 97.6% | ||||
Aerospace & Defense – 1.0% | ||||
Honeywell International, Inc. | 233 | $47,126 | ||
Alcoholic Beverages – 1.2% | ||||
Diageo PLC | 829 | $29,817 | ||
Pernod Ricard S.A. | 143 | 23,535 | ||
$53,352 | ||||
Apparel Manufacturers – 1.1% | ||||
LVMH Moet Hennessy Louis Vuitton SE | 32 | $26,614 | ||
NIKE, Inc., “B” | 235 | 23,860 | ||
$50,474 | ||||
Brokerage & Asset Managers – 3.7% | ||||
Charles Schwab Corp. | 1,602 | $100,798 | ||
CME Group, Inc. | 325 | 66,898 | ||
$167,696 | ||||
Business Services – 5.6% | ||||
Accenture PLC, “A” | 230 | $83,693 | ||
Equifax, Inc. | 124 | 30,298 | ||
Ferguson PLC | 277 | 52,037 | ||
Morningstar, Inc. | 108 | 30,165 | ||
TransUnion | 395 | 27,330 | ||
Verisk Analytics, Inc., “A” | 129 | 31,157 | ||
$254,680 | ||||
Computer Software – 16.7% | ||||
Adobe Systems, Inc. (a) | 71 | $43,862 | ||
ANSYS, Inc. (a) | 113 | 37,045 | ||
Autodesk, Inc. (a) | 191 | 48,478 | ||
Cadence Design Systems, Inc. (a) | 503 | 145,095 | ||
LiveRamp Holdings, Inc. (a) | 216 | 8,528 | ||
Microsoft Corp. | 666 | 264,788 | ||
PTC, Inc. (a) | 145 | 26,194 | ||
Salesforce, Inc. (a) | 327 | 91,917 | ||
Synopsys, Inc. (a) | 175 | 93,336 | ||
$759,243 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Computer Software - Systems – 2.3% | ||||
Capgemini | 254 | $56,876 | ||
Workday, Inc. (a) | 161 | 46,862 | ||
$103,738 | ||||
Construction – 8.5% | ||||
CRH PLC | 619 | $44,419 | ||
Martin Marietta Materials, Inc. | 154 | 78,297 | ||
Otis Worldwide Corp. | 724 | 64,031 | ||
Sherwin-Williams Co. | 106 | 32,264 | ||
Simpson Manufacturing Co., Inc. | 151 | 27,329 | ||
Vulcan Materials Co. | 384 | 86,788 | ||
Watsco, Inc. | 141 | 55,128 | ||
$388,256 | ||||
Consumer Products – 3.8% | ||||
Colgate-Palmolive Co. | 1,432 | $120,575 | ||
Kenvue, Inc. | 2,540 | 52,730 | ||
$173,305 | ||||
Electrical Equipment – 3.2% | ||||
Hubbell, Inc. | 70 | $23,490 | ||
Johnson Controls International PLC | 862 | 45,419 | ||
Rockwell Automation, Inc. | 208 | 52,682 | ||
TE Connectivity Ltd. | 158 | 22,466 | ||
$144,057 | ||||
Electronics – 7.3% | ||||
Analog Devices, Inc. | 524 | $100,797 | ||
Applied Materials, Inc. | 227 | 37,296 | ||
KLA Corp. | 88 | 52,276 | ||
Lam Research Corp. | 58 | 47,860 | ||
Micron Technology, Inc. | 279 | 23,924 | ||
Silicon Laboratories, Inc. (a) | 181 | 22,328 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 419 | 47,330 | ||
$331,811 | ||||
Energy - Independent – 1.8% | ||||
ConocoPhillips | 723 | $80,882 | ||
Energy - Integrated – 1.2% | ||||
TotalEnergies SE | 825 | $53,731 | ||
Forest & Paper Products – 0.5% | ||||
Rayonier, Inc., REIT | 744 | $22,543 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Insurance – 5.4% | ||||
Aon PLC | 255 | $76,100 | ||
Arthur J. Gallagher & Co. | 308 | 71,505 | ||
Marsh & McLennan Cos., Inc. | 289 | 56,020 | ||
Willis Towers Watson PLC | 173 | 42,610 | ||
$246,235 | ||||
Internet – 0.9% | ||||
Alphabet, Inc., “A” (a) | 299 | $41,890 | ||
Leisure & Toys – 0.9% | ||||
Electronic Arts, Inc. | 185 | $25,453 | ||
Take-Two Interactive Software, Inc. (a) | 110 | 18,142 | ||
$43,595 | ||||
Machinery & Tools – 8.0% | ||||
Graco, Inc. | 252 | $21,496 | ||
IDEX Corp. | 163 | 34,474 | ||
Ingersoll Rand, Inc. | 639 | 51,031 | ||
MSA Safety Inc. | 178 | 29,375 | ||
RBC Bearings, Inc. (a) | 111 | 29,808 | ||
Regal Rexnord Corp. | 126 | 16,816 | ||
Trane Technologies PLC | 250 | 63,012 | ||
Wabtec Corp. | 277 | 36,445 | ||
Watts Water Technologies, “A” | 415 | 82,174 | ||
$364,631 | ||||
Major Banks – 2.1% | ||||
Bank of America Corp. | 2,272 | $77,271 | ||
Resona Holdings, Inc. | 3,500 | 19,422 | ||
$96,693 | ||||
Medical & Health Technology & Services – 0.9% | ||||
ICON PLC (a) | 156 | $40,696 | ||
Medical Equipment – 6.0% | ||||
Agilent Technologies, Inc. | 725 | $94,322 | ||
Bio-Techne Corp. | 156 | 10,970 | ||
Bruker BioSciences Corp. | 1,156 | 82,666 | ||
Danaher Corp. | 221 | 53,020 | ||
Envista Holdings Corp. (a) | 1,211 | 28,458 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 790 | 4,582 | ||
$274,018 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Other Banks & Diversified Financials – 7.3% | ||||
AIB Group PLC | 4,937 | $21,646 | ||
Mastercard, Inc., “A” | 288 | 129,378 | ||
Moody's Corp. | 202 | 79,192 | ||
Northern Trust Corp. | 441 | 35,121 | ||
S&P Global, Inc. | 145 | 65,011 | ||
$330,348 | ||||
Precious Metals & Minerals – 2.6% | ||||
Franco-Nevada Corp. | 405 | $43,818 | ||
Royal Gold, Inc. | 349 | 39,922 | ||
Wheaton Precious Metals Corp. | 709 | 33,229 | ||
$116,969 | ||||
Real Estate – 0.8% | ||||
CBRE Group, Inc., “A” (a) | 424 | $36,595 | ||
Specialty Chemicals – 1.3% | ||||
Corteva, Inc. | 758 | $34,474 | ||
RPM International, Inc. | 218 | 23,252 | ||
$57,726 | ||||
Specialty Stores – 3.5% | ||||
Amazon.com, Inc. (a) | 431 | $66,891 | ||
Costco Wholesale Corp. | 134 | 93,114 | ||
$160,005 | ||||
Total Common Stocks (Identified Cost, $3,892,793) | $4,440,295 | |||
Investment Companies (h) – 2.6% | ||||
Money Market Funds – 2.6% | ||||
MFS Institutional Money Market Portfolio, 5.4% (v) (Identified Cost, $120,513) | 120,501 | $120,513 | ||
Other Assets, Less Liabilities – (0.2)% | (11,006) | |||
Net Assets – 100.0% | $4,549,802 |
(a) | Non-income producing security. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $120,513 and $4,440,295, respectively. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
Assets | |
Investments in unaffiliated issuers, at value (identified cost, $3,892,793) | $4,440,295 |
Investments in affiliated issuers, at value (identified cost, $120,513) | 120,513 |
Receivables for | |
Investments sold | 26,424 |
Fund shares sold | 2,200 |
Dividends | 1,890 |
Receivable from investment adviser | 12,612 |
Other assets | 97 |
Total assets | $4,604,031 |
Liabilities | |
Payables for | |
Investments purchased | $18,599 |
Payable to affiliates | |
Administrative services fee | 95 |
Shareholder servicing costs | 258 |
Distribution and service fees | 34 |
Payable for independent Trustees' compensation | 518 |
Accrued expenses and other liabilities | 34,725 |
Total liabilities | $54,229 |
Net assets | $4,549,802 |
Net assets consist of | |
Paid-in capital | $4,068,371 |
Total distributable earnings (loss) | 481,431 |
Net assets | $4,549,802 |
Shares of beneficial interest outstanding | 413,387 |
Net assets | Shares outstanding | Net asset value per share (a) | |
Class A | $1,107,042 | 100,682 | $11.00 |
Class C | 224,226 | 20,542 | 10.92 |
Class I | 1,016,984 | 92,329 | 11.01 |
Class R1 | 62,738 | 5,748 | 10.91 |
Class R2 | 63,351 | 5,755 | 11.01 |
Class R3 | 63,655 | 5,780 | 11.01 |
Class R4 | 62,776 | 5,696 | 11.02 |
Class R6 | 1,949,030 | 176,855 | 11.02 |
(a) | Maximum offering price per share was equal to the net asset value per share for all share classes, except for Class A, for which the maximum offering price per share was $11.67 [100 / 94.25 x $11.00]. On sales of $50,000 or more, the maximum offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A and Class C shares. Redemption price per share was equal to the net asset value per share for Classes I, R1, R2, R3, R4, and R6. |
Net investment income (loss) | |
Income | |
Dividends | $27,252 |
Dividends from affiliated issuers | 3,114 |
Other | 1 |
Foreign taxes withheld | (438) |
Total investment income | $29,929 |
Expenses | |
Management fee | $12,143 |
Distribution and service fees | 2,564 |
Shareholder servicing costs | 1,203 |
Administrative services fee | 8,797 |
Independent Trustees' compensation | 1,509 |
Custodian fee | 2,343 |
Shareholder communications | 4,240 |
Audit and tax fees | 31,744 |
Legal fees | 9 |
Registration fees | 93,861 |
Miscellaneous | 13,657 |
Total expenses | $172,070 |
Fees paid indirectly | (1) |
Reduction of expenses by investment adviser | (156,722) |
Net expenses | $15,347 |
Net investment income (loss) | $14,582 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $5,530 |
Affiliated issuers | 9 |
Foreign currency | 59 |
Net realized gain (loss) | $5,598 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $242,534 |
Net realized and unrealized gain (loss) | $248,132 |
Change in net assets from operations | $262,714 |
Six months ended | Year ended | |
1/31/24 (unaudited) | 7/31/23 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $14,582 | $15,921 |
Net realized gain (loss) | 5,598 | (52,408) |
Net unrealized gain (loss) | 242,534 | 444,411 |
Change in net assets from operations | $262,714 | $407,924 |
Total distributions to shareholders | $(21,250) | $(11,550) |
Change in net assets from fund share transactions | $518,619 | $912,149 |
Total change in net assets | $760,083 | $1,308,523 |
Net assets | ||
At beginning of period | 3,789,719 | 2,481,196 |
At end of period | $4,549,802 | $3,789,719 |
Class A | Six months ended | Year ended | |
1/31/24 (unaudited) | 7/31/23 | 7/31/22(c) | |
Net asset value, beginning of period | $10.42 | $9.36 | $10.00 |
Income (loss) from investment operations | |||
Net investment income (loss) (d) | $0.03 | $0.04 | $0.01 |
Net realized and unrealized gain (loss) | 0.59 | 1.05 | (0.65) |
Total from investment operations | $0.62 | $1.09 | $(0.64) |
Less distributions declared to shareholders | |||
From net investment income | $(0.04) | $(0.03) | $— |
Net asset value, end of period (x) | $11.00 | $10.42 | $9.36 |
Total return (%) (r)(s)(t)(x) | 5.99(n) | 11.72 | (6.40)(n) |
Ratios (%) (to average net assets) and Supplemental data: | |||
Expenses before expense reductions (f) | 8.63(a) | 7.80 | 7.90(a) |
Expenses after expense reductions (f) | 0.89(a) | 0.89 | 0.88(a) |
Net investment income (loss) | 0.58(a) | 0.39 | 0.15(a) |
Portfolio turnover | 8(n) | 18 | 7(n) |
Net assets at end of period (000 omitted) | $1,107 | $678 | $154 |
Class C | Six months ended | Year ended | |
1/31/24 (unaudited) | 7/31/23 | 7/31/22(c) | |
Net asset value, beginning of period | $10.34 | $9.32 | $10.00 |
Income (loss) from investment operations | |||
Net investment income (loss) (d) | $(0.01) | $(0.03) | $(0.03) |
Net realized and unrealized gain (loss) | 0.59 | 1.05 | (0.65) |
Total from investment operations | $0.58 | $1.02 | $(0.68) |
Less distributions declared to shareholders | |||
From net investment income | $— | $— | $— |
Net asset value, end of period (x) | $10.92 | $10.34 | $9.32 |
Total return (%) (r)(s)(t)(x) | 5.61(n) | 10.94 | (6.80)(n) |
Ratios (%) (to average net assets) and Supplemental data: | |||
Expenses before expense reductions (f) | 9.44(a) | 7.99 | 8.46(a) |
Expenses after expense reductions (f) | 1.64(a) | 1.64 | 1.63(a) |
Net investment income (loss) | (0.16)(a) | (0.37) | (0.59)(a) |
Portfolio turnover | 8(n) | 18 | 7(n) |
Net assets at end of period (000 omitted) | $224 | $161 | $56 |
Class I | Six months ended | Year ended | |
1/31/24 (unaudited) | 7/31/23 | 7/31/22(c) | |
Net asset value, beginning of period | $10.44 | $9.37 | $10.00 |
Income (loss) from investment operations | |||
Net investment income (loss) (d) | $0.04 | $0.06 | $0.02 |
Net realized and unrealized gain (loss) | 0.59 | 1.05 | (0.65) |
Total from investment operations | $0.63 | $1.11 | $(0.63) |
Less distributions declared to shareholders | |||
From net investment income | $(0.06) | $(0.04) | $— |
Net asset value, end of period (x) | $11.01 | $10.44 | $9.37 |
Total return (%) (r)(s)(t)(x) | 6.06(n) | 11.93 | (6.30)(n) |
Ratios (%) (to average net assets) and Supplemental data: | |||
Expenses before expense reductions (f) | 8.42(a) | 7.60 | 7.34(a) |
Expenses after expense reductions (f) | 0.64(a) | 0.64 | 0.63(a) |
Net investment income (loss) | 0.84(a) | 0.62 | 0.37(a) |
Portfolio turnover | 8(n) | 18 | 7(n) |
Net assets at end of period (000 omitted) | $1,017 | $875 | $444 |
Class R1 | Six months ended | Year ended | |
1/31/24 (unaudited) | 7/31/23 | 7/31/22(c) | |
Net asset value, beginning of period | $10.34 | $9.32 | $10.00 |
Income (loss) from investment operations | |||
Net investment income (loss) (d) | $(0.01) | $(0.03) | $(0.03) |
Net realized and unrealized gain (loss) | 0.58 | 1.05 | (0.65) |
Total from investment operations | $0.57 | $1.02 | $(0.68) |
Less distributions declared to shareholders | |||
From net investment income | $— | $— | $— |
Net asset value, end of period (x) | $10.91 | $10.34 | $9.32 |
Total return (%) (r)(s)(t)(x) | 5.51(n) | 10.94 | (6.80)(n) |
Ratios (%) (to average net assets) and Supplemental data: | |||
Expenses before expense reductions (f) | 9.40(a) | 9.14 | 8.71(a) |
Expenses after expense reductions (f) | 1.65(a) | 1.64 | 1.63(a) |
Net investment income (loss) | (0.16)(a) | (0.37) | (0.59)(a) |
Portfolio turnover | 8(n) | 18 | 7(n) |
Net assets at end of period (000 omitted) | $63 | $59 | $47 |
Class R2 | Six months ended | Year ended | |
1/31/24 (unaudited) | 7/31/23 | 7/31/22(c) | |
Net asset value, beginning of period | $10.42 | $9.35 | $10.00 |
Income (loss) from investment operations | |||
Net investment income (loss) (d) | $0.02 | $0.01 | $(0.01) |
Net realized and unrealized gain (loss) | 0.58 | 1.06 | (0.64) |
Total from investment operations | $0.60 | $1.07 | $(0.65) |
Less distributions declared to shareholders | |||
From net investment income | $(0.01) | $(0.00)(w) | $— |
Net asset value, end of period (x) | $11.01 | $10.42 | $9.35 |
Total return (%) (r)(s)(t)(x) | 5.78(n) | 11.49 | (6.50)(n) |
Ratios (%) (to average net assets) and Supplemental data: | |||
Expenses before expense reductions (f) | 8.90(a) | 8.64 | 8.21(a) |
Expenses after expense reductions (f) | 1.14(a) | 1.14 | 1.13(a) |
Net investment income (loss) | 0.34(a) | 0.12 | (0.11)(a) |
Portfolio turnover | 8(n) | 18 | 7(n) |
Net assets at end of period (000 omitted) | $63 | $60 | $47 |
Class R3 | Six months ended | Year ended | |
1/31/24 (unaudited) | 7/31/23 | 7/31/22(c) | |
Net asset value, beginning of period | $10.43 | $9.36 | $10.00 |
Income (loss) from investment operations | |||
Net investment income (loss) (d) | $0.03 | $0.03 | $0.01 |
Net realized and unrealized gain (loss) | 0.59 | 1.06 | (0.65) |
Total from investment operations | $0.62 | $1.09 | $(0.64) |
Less distributions declared to shareholders | |||
From net investment income | $(0.04) | $(0.02) | $— |
Net asset value, end of period (x) | $11.01 | $10.43 | $9.36 |
Total return (%) (r)(s)(t)(x) | 5.92(n) | 11.71 | (6.40)(n) |
Ratios (%) (to average net assets) and Supplemental data: | |||
Expenses before expense reductions (f) | 8.64(a) | 8.38 | 7.95(a) |
Expenses after expense reductions (f) | 0.89(a) | 0.89 | 0.88(a) |
Net investment income (loss) | 0.59(a) | 0.38 | 0.13(a) |
Portfolio turnover | 8(n) | 18 | 7(n) |
Net assets at end of period (000 omitted) | $64 | $60 | $47 |
Class R4 | Six months ended | Year ended | |
1/31/24 (unaudited) | 7/31/23 | 7/31/22(c) | |
Net asset value, beginning of period | $10.45 | $9.37 | $10.00 |
Income (loss) from investment operations | |||
Net investment income (loss) (d) | $0.04 | $0.06 | $0.02 |
Net realized and unrealized gain (loss) | 0.59 | 1.06 | (0.65) |
Total from investment operations | $0.63 | $1.12 | $(0.63) |
Less distributions declared to shareholders | |||
From net investment income | $(0.06) | $(0.04) | $— |
Net asset value, end of period (x) | $11.02 | $10.45 | $9.37 |
Total return (%) (r)(s)(t)(x) | 6.06(n) | 12.04 | (6.30)(n) |
Ratios (%) (to average net assets) and Supplemental data: | |||
Expenses before expense reductions (f) | 8.40(a) | 8.13 | 7.70(a) |
Expenses after expense reductions (f) | 0.64(a) | 0.64 | 0.63(a) |
Net investment income (loss) | 0.85(a) | 0.63 | 0.39(a) |
Portfolio turnover | 8(n) | 18 | 7(n) |
Net assets at end of period (000 omitted) | $63 | $59 | $47 |
Class R6 | Six months ended | Year ended | |
1/31/24 (unaudited) | 7/31/23 | 7/31/22(c) | |
Net asset value, beginning of period | $10.45 | $9.37 | $10.00 |
Income (loss) from investment operations | |||
Net investment income (loss) (d) | $0.04 | $0.06 | $0.02 |
Net realized and unrealized gain (loss) | 0.59 | 1.06 | (0.65) |
Total from investment operations | $0.63 | $1.12 | $(0.63) |
Less distributions declared to shareholders | |||
From net investment income | $(0.06) | $(0.04) | $— |
Net asset value, end of period (x) | $11.02 | $10.45 | $9.37 |
Total return (%) (r)(s)(t)(x) | 6.08(n) | 12.04 | (6.30)(n) |
Ratios (%) (to average net assets) and Supplemental data: | |||
Expenses before expense reductions (f) | 8.37(a) | 8.12 | 7.69(a) |
Expenses after expense reductions (f) | 0.62(a) | 0.62 | 0.62(a) |
Net investment income (loss) | 0.86(a) | 0.64 | 0.40(a) |
Portfolio turnover | 8(n) | 18 | 7(n) |
Net assets at end of period (000 omitted) | $1,949 | $1,837 | $1,639 |
(a) | Annualized. |
(c) | For the period from the commencement of the fund’s investment operations, February 8, 2022, through the stated period end. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. See Note 2 in the Notes to Financial Statements for additional information. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(t) | Total returns do not include any applicable sales charges. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities: | ||||
United States | $4,039,858 | $— | $— | $4,039,858 |
France | 56,876 | 103,880 | — | 160,756 |
Canada | 77,047 | — | — | 77,047 |
United Kingdom | 44,419 | 29,817 | — | 74,236 |
Taiwan | 47,330 | — | — | 47,330 |
Ireland | — | 21,646 | — | 21,646 |
Japan | — | 19,422 | — | 19,422 |
Mutual Funds | 120,513 | — | — | 120,513 |
Total | $4,386,043 | $174,765 | $— | $4,560,808 |
Year ended 7/31/23 | |
Ordinary income (including any short-term capital gains) | $11,550 |
As of 1/31/24 | |
Cost of investments | $4,045,290 |
Gross appreciation | 648,494 |
Gross depreciation | (132,976) |
Net unrealized appreciation (depreciation) | $515,518 |
As of 7/31/23 | |
Undistributed ordinary income | 8,564 |
Capital loss carryforwards | (41,585) |
Other temporary differences | 4 |
Net unrealized appreciation (depreciation) | 272,984 |
Short-Term | $(39,639) |
Long-Term | (1,946) |
Total | $(41,585) |
Six months ended 1/31/24 | Year ended 7/31/23 | |
Class A | $3,885 | $1,651 |
Class I | 5,577 | 2,172 |
Class R2 | 71 | 22 |
Class R3 | 211 | 129 |
Class R4 | 347 | 233 |
Class R6 | 11,159 | 7,343 |
Total | $21,250 | $11,550 |
Up to $1 billion | 0.60% |
In excess of $1 billion and up to $2.5 billion | 0.55% |
In excess of $2.5 billion and up to $5 billion | 0.45% |
In excess of $5 billion and up to $10 billion | 0.42% |
In excess of $10 billion | 0.40% |
Classes | ||||||||
A | C | I | R1 | R2 | R3 | R4 | R6 | |
0.94% | 1.69% | 0.69% | 1.69% | 1.19% | 0.94% | 0.69% | 0.62% |
Distribution Fee Rate (d) | Service Fee Rate (d) | Total Distribution Plan (d) | Annual Effective Rate (e) | Distribution and Service Fee | |
Class A | — | 0.25% | 0.25% | 0.25% | $ 1,082 |
Class C | 0.75% | 0.25% | 1.00% | 1.00% | 963 |
Class R1 | 0.75% | 0.25% | 1.00% | 1.00% | 295 |
Class R2 | 0.25% | 0.25% | 0.50% | 0.50% | 149 |
Class R3 | — | 0.25% | 0.25% | 0.25% | 75 |
Total Distribution and Service Fees | $2,564 |
(d) | In accordance with the distribution plan for certain classes, the fund pays distribution and/or service fees equal to these annual percentage rates of each class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting period. Any rate changes, if applicable, are detailed below. |
(e) | The annual effective rates represent actual fees incurred under the distribution plan for the six months ended January 31, 2024 based on each class's average daily net assets. MFD has voluntarily agreed to rebate a portion of each class's 0.25% service fee attributable to accounts for which there is no financial intermediary specified on the account except for accounts attributable to MFS or its affiliates' seed money. There were no service fee rebates for the six months ended January 31, 2024. |
Share Class | Shares | Amount |
Class R1 | 748 | $7,000 |
Class R2 | 746 | 7,000 |
Class R3 | 746 | 7,000 |
Class R4 | 638 | 6,000 |
Six months ended 1/31/24 | Year ended 7/31/23 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Class A | 36,604 | $379,343 | 50,211 | $461,547 | |
Class C | 5,356 | 54,205 | 9,699 | 91,459 | |
Class I | 8,518 | 87,306 | 36,102 | 340,614 | |
Class R1 | — | — | 748 | 7,000 | |
Class R2 | — | — | 746 | 7,000 | |
Class R3 | — | — | 746 | 7,000 | |
Class R4 | — | — | 638 | 6,000 | |
50,478 | $520,854 | 98,890 | $920,620 |
Six months ended 1/31/24 | Year ended 7/31/23 | ||||
Shares | Amount | Shares | Amount | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Class A | 363 | $3,885 | 183 | $1,651 | |
Class I | 520 | 5,577 | 241 | 2,172 | |
Class R2 | 6 | 71 | 3 | 22 | |
Class R3 | 20 | 211 | 14 | 129 | |
Class R4 | 32 | 347 | 26 | 233 | |
Class R6 | 1,041 | 11,159 | 814 | 7,343 | |
1,982 | $21,250 | 1,281 | $11,550 | ||
Shares reacquired | |||||
Class A | (1,361) | $(14,691) | (1,791) | $(17,972) | |
Class C | (347) | (3,837) | (200) | (2,006) | |
Class I | (491) | (4,957) | (5) | (43) | |
(2,199) | $(23,485) | (1,996) | $(20,021) | ||
Net change | |||||
Class A | 35,606 | $368,537 | 48,603 | $445,226 | |
Class C | 5,009 | 50,368 | 9,499 | 89,453 | |
Class I | 8,547 | 87,926 | 36,338 | 342,743 | |
Class R1 | — | — | 748 | 7,000 | |
Class R2 | 6 | 71 | 749 | 7,022 | |
Class R3 | 20 | 211 | 760 | 7,129 | |
Class R4 | 32 | 347 | 664 | 6,233 | |
Class R6 | 1,041 | 11,159 | 814 | 7,343 | |
50,261 | $518,619 | 98,175 | $912,149 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $150,640 | $698,724 | $728,860 | $9 | $— | $120,513 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $3,114 | $— |
Item 1(b):
Not applicable.
ITEM 2. CODE OF ETHICS.
During the period covered by this report, the Registrant has not amended any provision in its Code of Ethics (the "Code") that relates to an element of the Code's definition enumerated in paragraph (b) of Item 2 of this Form N-CSR. During the period covered by this report, the Registrant did not grant a waiver, including an implicit waiver, from any provision of the Code.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to the Registrant.
ITEM 6. INVESTMENTS
A schedule of investments for each series covered by this Form N-CSR is included as part of the report to shareholders of such series under Item 1(a) of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the Registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There were no material changes to the procedures by which shareholders may send recommendations to the Board for nominees to the Registrant's Board since the Registrant last provided disclosure as to such procedures in response to the requirements of Item 407 (c)(2)(iv) of Regulation S-K or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a)Based upon their evaluation of the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) as conducted within 90 days of the filing date of this report on Form N-CSR, the Registrant's principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the Registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b)There were no changes in the Registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by the report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 13. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.
Not Applicable.
ITEM 14. EXHIBITS.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable.
(2)A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto as EX-99.302CERT.
(3)Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable.
(4)Change in the registrant's independent public accountant. Not applicable.
(b)If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for the purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Attached hereto as EX-99.906CERT.
Notice
A copy of the Amended and Restated Declaration of Trust, as amended, of the Registrant is on file with the Secretary of State of The Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and the obligations of or arising out of this instrument are not binding upon any of the Trustees or shareholders individually, but are binding only upon the assets and property of the respective constituent series of the Registrant.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) MFS SERIES TRUST VII
By (Signature and Title)*
/S/ DAVID L. DILORENZO
David L. DiLorenzo, President
Date: March 14, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)*
/S/ DAVID L. DILORENZO
David L. DiLorenzo, President (Principal Executive Officer)
Date: March 14, 2024
By (Signature and Title)*
/S/ JAMES O. YOST
James O. Yost, Treasurer (Principal Financial Officer and Accounting Officer) Date: March 14, 2024
* Print name and title of each signing officer under his or her signature.