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 811-3732
MFS VARIABLE INSURANCE TRUST II
(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
111 Huntington Avenue
Boston, Massachusetts 02199
(Name and address of agents for service)
Registrant’s telephone number, including area code: (617) 954-5000
Date of fiscal year end: December 31
Date of reporting period: June 30, 2021
ITEM 1. | REPORTS TO STOCKHOLDERS. |
Item 1(a): |
Core Equity Portfolio
1 | |
2 | |
3 | |
4 | |
7 | |
8 | |
9 | |
10 | |
12 | |
18 | |
19 | |
19 | |
19 | |
19 |
Microsoft Corp. | 7.1% |
Apple, Inc. | 5.2% |
Amazon.com, Inc. | 4.9% |
Alphabet, Inc., “C” | 2.9% |
Alphabet, Inc., “A” | 2.6% |
Facebook, Inc., “A” | 2.4% |
Johnson & Johnson | 2.4% |
Applied Materials, Inc. | 2.1% |
Adobe Systems, Inc. | 2.0% |
PayPal Holdings, Inc. | 1.9% |
Information Technology | 27.6% |
Health Care | 13.6% |
Consumer Discretionary | 11.8% |
Communication Services | 11.2% |
Financials | 10.5% |
Industrials | 8.1% |
Consumer Staples | 6.5% |
Real Estate | 3.3% |
Energy | 2.4% |
Materials | 2.3% |
Utilities | 2.0% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
January 1, 2021 through June 30, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/21 | Ending Account Value 6/30/21 | Expenses Paid During Period (p) 1/01/21-6/30/21 | |
Initial Class | Actual | 0.43% | $1,000.00 | $1,173.88 | $2.32 |
Hypothetical (h) | 0.43% | $1,000.00 | $1,022.66 | $2.16 | |
Service Class | Actual | 0.68% | $1,000.00 | $1,172.37 | $3.66 |
Hypothetical (h) | 0.68% | $1,000.00 | $1,021.42 | $3.41 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.3% | ||||
Aerospace & Defense – 1.2% | ||||
Huntington Ingalls Industries, Inc. | 6,264 | $ 1,320,138 | ||
Northrop Grumman Corp. | 13,210 | 4,800,910 | ||
$6,121,048 | ||||
Apparel Manufacturers – 0.2% | ||||
NIKE, Inc., “B” | 5,678 | $ 877,194 | ||
Automotive – 1.4% | ||||
Lear Corp. | 29,909 | $ 5,242,450 | ||
Tesla, Inc. (a) | 2,923 | 1,986,763 | ||
$7,229,213 | ||||
Biotechnology – 1.4% | ||||
Biogen, Inc. (a) | 7,168 | $ 2,482,063 | ||
Gilead Sciences, Inc. | 26,892 | 1,851,783 | ||
Incyte Corp. (a) | 6,526 | 549,033 | ||
Vertex Pharmaceuticals, Inc. (a) | 13,282 | 2,678,050 | ||
$7,560,929 | ||||
Broadcasting – 0.1% | ||||
Discovery Communications, Inc., “A” (a)(l) | 22,116 | $ 678,519 | ||
Brokerage & Asset Managers – 0.2% | ||||
Jefferies Financial Group, Inc. | 38,046 | $ 1,301,173 | ||
Business Services – 4.8% | ||||
Accenture PLC, “A” | 28,652 | $ 8,446,323 | ||
Amdocs Ltd. | 76,060 | 5,884,002 | ||
Fiserv, Inc. (a) | 3,841 | 410,564 | ||
Global Payments, Inc. | 2,537 | 475,789 | ||
PayPal Holdings, Inc. (a) | 33,872 | 9,873,011 | ||
$25,089,689 | ||||
Cable TV – 2.2% | ||||
Charter Communications, Inc., “A” (a) | 9,288 | $ 6,700,828 | ||
Comcast Corp., “A” | 82,200 | 4,687,044 | ||
$11,387,872 | ||||
Chemicals – 1.0% | ||||
Eastman Chemical Co. | 44,072 | $ 5,145,406 | ||
Computer Software – 9.3% | ||||
Adobe Systems, Inc. (a) | 17,513 | $ 10,256,313 | ||
Atlassian Corp. PLC, “A” (a) | 3,918 | 1,006,378 | ||
Cadence Design Systems, Inc. (a) | 2,684 | 367,225 | ||
Microsoft Corp. | 137,019 | 37,118,447 | ||
$48,748,363 | ||||
Computer Software - Systems – 6.8% | ||||
Apple, Inc. | 197,008 | $ 26,982,216 | ||
HP, Inc. | 174,194 | 5,258,917 | ||
ServiceNow, Inc. (a) | 5,979 | 3,285,759 | ||
$35,526,892 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Construction – 1.5% | ||||
D.R. Horton, Inc. | 61,279 | $ 5,537,783 | ||
Sherwin-Williams Co. | 3,932 | 1,071,274 | ||
Toll Brothers, Inc. | 19,194 | 1,109,605 | ||
$7,718,662 | ||||
Consumer Products – 2.2% | ||||
Colgate-Palmolive Co. | 78,418 | $ 6,379,305 | ||
Kimberly-Clark Corp. | 37,985 | 5,081,633 | ||
$11,460,938 | ||||
Electrical Equipment – 0.5% | ||||
Johnson Controls International PLC | 7,976 | $ 547,393 | ||
TE Connectivity Ltd. | 16,960 | 2,293,161 | ||
$2,840,554 | ||||
Electronics – 5.7% | ||||
Applied Materials, Inc. | 76,239 | $ 10,856,434 | ||
Intel Corp. | 153,361 | 8,609,686 | ||
NVIDIA Corp. | 668 | 534,467 | ||
NXP Semiconductors N.V. | 2,972 | 611,400 | ||
Texas Instruments, Inc. | 47,147 | 9,066,368 | ||
$29,678,355 | ||||
Energy - Independent – 1.5% | ||||
ConocoPhillips | 43,076 | $ 2,623,329 | ||
EOG Resources, Inc. | 15,710 | 1,310,842 | ||
Valero Energy Corp. | 52,937 | 4,133,321 | ||
$8,067,492 | ||||
Engineering - Construction – 0.4% | ||||
Quanta Services, Inc. | 20,144 | $ 1,824,442 | ||
Food & Beverages – 2.1% | ||||
General Mills, Inc. | 22,704 | $ 1,383,355 | ||
J.M. Smucker Co. | 13,556 | 1,756,451 | ||
Mondelez International, Inc. | 63,526 | 3,966,563 | ||
PepsiCo, Inc. | 26,920 | 3,988,736 | ||
$11,095,105 | ||||
Food & Drug Stores – 1.3% | ||||
Wal-Mart Stores, Inc. | 47,407 | $ 6,685,335 | ||
Forest & Paper Products – 0.7% | ||||
Weyerhaeuser Co., REIT | 101,569 | $ 3,496,005 | ||
Gaming & Lodging – 0.2% | ||||
Marriott International, Inc., “A” (a) | 8,683 | $ 1,185,403 | ||
Health Maintenance Organizations – 1.2% | ||||
Cigna Corp. | 7,397 | $ 1,753,606 | ||
Humana, Inc. | 8,965 | 3,968,985 | ||
UnitedHealth Group, Inc. | 1,195 | 478,526 | ||
$6,201,117 | ||||
Insurance – 2.7% | ||||
Berkshire Hathaway, Inc., “B” (a) | 7,983 | $ 2,218,635 | ||
Everest Re Group Ltd. | 17,491 | 4,407,907 | ||
MetLife, Inc. | 117,580 | 7,037,163 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Insurance – continued | ||||
Reinsurance Group of America, Inc. | 4,162 | $ 474,468 | ||
$14,138,173 | ||||
Internet – 7.9% | ||||
Alphabet, Inc., “A” (a) | 5,561 | $ 13,578,794 | ||
Alphabet, Inc., “C” (a) | 6,062 | 15,193,312 | ||
Facebook, Inc., “A” (a) | 36,447 | 12,672,986 | ||
$41,445,092 | ||||
Leisure & Toys – 0.8% | ||||
Brunswick Corp. | 14,292 | $ 1,423,769 | ||
Electronic Arts, Inc. | 16,152 | 2,323,142 | ||
Mattel, Inc. (a) | 21,596 | 434,080 | ||
$4,180,991 | ||||
Machinery & Tools – 3.3% | ||||
AGCO Corp. | 37,975 | $ 4,951,181 | ||
Dover Corp. | 3,401 | 512,191 | ||
Eaton Corp. PLC | 62,685 | 9,288,663 | ||
PACCAR, Inc. | 13,487 | 1,203,715 | ||
Regal Beloit Corp. | 10,340 | 1,380,493 | ||
$17,336,243 | ||||
Major Banks – 4.5% | ||||
Bank of America Corp. | 121,354 | $ 5,003,425 | ||
Goldman Sachs Group, Inc. | 23,278 | 8,834,699 | ||
JPMorgan Chase & Co. | 52,836 | 8,218,112 | ||
PNC Financial Services Group, Inc. | 3,192 | 608,906 | ||
State Street Corp. | 7,720 | 635,202 | ||
$23,300,344 | ||||
Medical & Health Technology & Services – 2.9% | ||||
HCA Healthcare, Inc. | 32,697 | $ 6,759,778 | ||
Laboratory Corp. of America Holdings (a) | 12,410 | 3,423,298 | ||
McKesson Corp. | 25,962 | 4,964,973 | ||
$15,148,049 | ||||
Medical Equipment – 2.9% | ||||
Abbott Laboratories | 13,707 | $ 1,589,053 | ||
Boston Scientific Corp. (a) | 20,884 | 893,000 | ||
Danaher Corp. | 6,279 | 1,685,032 | ||
Medtronic PLC | 55,955 | 6,945,694 | ||
Thermo Fisher Scientific, Inc. | 7,632 | 3,850,115 | ||
$14,962,894 | ||||
Natural Gas - Pipeline – 0.8% | ||||
Cheniere Energy, Inc. (a) | 4,831 | $ 419,041 | ||
ONEOK, Inc. | 66,093 | 3,677,414 | ||
$4,096,455 | ||||
Oil Services – 0.1% | ||||
NOV, Inc. (a) | 36,945 | $ 565,997 | ||
Other Banks & Diversified Financials – 3.2% | ||||
American Express Co. | 4,848 | $ 801,035 | ||
Citigroup, Inc. | 94,026 | 6,652,339 | ||
Mastercard, Inc., “A” | 4,677 | 1,707,526 | ||
Moody's Corp. | 1,026 | 371,792 | ||
SLM Corp. | 101,145 | 2,117,976 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Other Banks & Diversified Financials – continued | ||||
Synchrony Financial | 76,600 | $ 3,716,632 | ||
Visa, Inc., “A” | 4,113 | 961,702 | ||
Zions Bancorp NA | 8,760 | 463,054 | ||
$16,792,056 | ||||
Pharmaceuticals – 5.2% | ||||
Eli Lilly & Co. | 29,895 | $ 6,861,500 | ||
Johnson & Johnson | 76,304 | 12,570,321 | ||
Merck & Co., Inc. | 96,417 | 7,498,350 | ||
Organon & Co. (a) | 9,642 | 291,767 | ||
$27,221,938 | ||||
Pollution Control – 0.3% | ||||
Republic Services, Inc. | 11,997 | $ 1,319,790 | ||
Railroad & Shipping – 1.9% | ||||
CSX Corp. | 124,367 | $ 3,989,693 | ||
Kansas City Southern Co. | 20,954 | 5,937,735 | ||
$9,927,428 | ||||
Real Estate – 3.0% | ||||
Extra Space Storage, Inc., REIT | 40,348 | $ 6,609,809 | ||
Omega Healthcare Investors, Inc., REIT | 61,716 | 2,239,674 | ||
Spirit Realty Capital, Inc., REIT | 33,782 | 1,616,131 | ||
Starwood Property Trust, Inc., REIT | 81,020 | 2,120,293 | ||
STORE Capital Corp., REIT | 90,340 | 3,117,634 | ||
$15,703,541 | ||||
Restaurants – 1.3% | ||||
Starbucks Corp. | 46,250 | $ 5,171,212 | ||
Texas Roadhouse, Inc. | 16,018 | 1,540,932 | ||
$6,712,144 | ||||
Specialty Chemicals – 1.1% | ||||
Corteva, Inc. | 52,056 | $ 2,308,684 | ||
DuPont de Nemours, Inc. | 11,906 | 921,643 | ||
Linde PLC | 8,048 | 2,326,677 | ||
$5,557,004 | ||||
Specialty Stores – 7.1% | ||||
Amazon.com, Inc. (a) | 7,400 | $ 25,457,184 | ||
AutoZone, Inc. (a) | 1,016 | 1,516,096 | ||
Home Depot, Inc. | 26,454 | 8,435,916 | ||
Ross Stores, Inc. | 13,261 | 1,644,364 | ||
$37,053,560 | ||||
Telecommunications - Wireless – 0.5% | ||||
T-Mobile USA, Inc. (a) | 18,806 | $ 2,723,673 | ||
Tobacco – 0.9% | ||||
Altria Group, Inc. | 65,435 | $ 3,119,941 | ||
Philip Morris International, Inc. | 18,379 | 1,821,542 | ||
$4,941,483 | ||||
Trucking – 1.0% | ||||
J.B. Hunt Transport Services, Inc. | 10,842 | $ 1,766,704 | ||
Knight-Swift Transportation Holdings, Inc. | 11,539 | 524,563 | ||
United Parcel Service, Inc., “B” | 13,059 | 2,715,880 | ||
$5,007,147 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Utilities - Electric Power – 2.0% | ||||
CenterPoint Energy, Inc. | 88,762 | $ 2,176,444 | ||
Edison International | 29,986 | 1,733,791 | ||
Exelon Corp. | 84,046 | 3,724,078 | ||
NRG Energy, Inc. | 27,637 | 1,113,771 | ||
PG&E Corp. (a) | 74,934 | 762,079 | ||
Sempra Energy | 6,387 | 846,150 | ||
$10,356,313 | ||||
Total Common Stocks (Identified Cost, $315,779,464) | $518,410,021 |
Issuer | Shares/Par | Value ($) | ||
Investment Companies (h) – 0.3% | ||||
Money Market Funds – 0.3% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $1,523,710) | 1,523,710 | $ 1,523,710 | ||
Other Assets, Less Liabilities – 0.4% | 2,131,522 | |||
Net Assets – 100.0% | $522,065,253 |
(a) | Non-income producing security. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $1,523,710 and $518,410,021, respectively. | |||
(l) | A portion of this security is on loan. See Note 2 for additional information. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
REIT | Real Estate Investment Trust |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value, including $215,374 of securities on loan (identified cost, $315,779,464) | $518,410,021 |
Investments in affiliated issuers, at value (identified cost, $1,523,710) | 1,523,710 |
Cash | 7,574 |
Receivables for | |
Investments sold | 2,587,069 |
Interest and dividends | 476,121 |
Other assets | 2,088 |
Total assets | $523,006,583 |
Liabilities | |
Payables for | |
Fund shares reacquired | $864,061 |
Payable to affiliates | |
Investment adviser | 11,064 |
Administrative services fee | 432 |
Shareholder servicing costs | 93 |
Distribution and/or service fees | 2,957 |
Accrued expenses and other liabilities | 62,723 |
Total liabilities | $941,330 |
Net assets | $522,065,253 |
Net assets consist of | |
Paid-in capital | $242,681,027 |
Total distributable earnings (loss) | 279,384,226 |
Net assets | $522,065,253 |
Shares of beneficial interest outstanding | 7,802,558 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $305,833,864 | 4,548,428 | $67.24 |
Service Class | 216,231,389 | 3,254,130 | 66.45 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $3,822,262 |
Other | 6,490 |
Income on securities loaned | 812 |
Dividends from affiliated issuers | 699 |
Foreign taxes withheld | (254) |
Total investment income | $3,830,009 |
Expenses | |
Management fee | $990,825 |
Distribution and/or service fees | 254,132 |
Shareholder servicing costs | 8,795 |
Administrative services fee | 37,205 |
Independent Trustees' compensation | 4,241 |
Custodian fee | 9,224 |
Shareholder communications | 10,401 |
Audit and tax fees | 27,895 |
Legal fees | 1,634 |
Miscellaneous | 12,603 |
Total expenses | $1,356,955 |
Reduction of expenses by investment adviser | (29,680) |
Net expenses | $1,327,275 |
Net investment income (loss) | $2,502,734 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $34,547,076 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $42,457,523 |
Net realized and unrealized gain (loss) | $77,004,599 |
Change in net assets from operations | $79,507,333 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/21 (unaudited) | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $2,502,734 | $5,213,358 |
Net realized gain (loss) | 34,547,076 | 34,962,421 |
Net unrealized gain (loss) | 42,457,523 | 22,756,111 |
Change in net assets from operations | $79,507,333 | $62,931,890 |
Total distributions to shareholders | $— | $(29,241,138) |
Change in net assets from fund share transactions | $(29,781,537) | $(33,385,390) |
Total change in net assets | $49,725,796 | $305,362 |
Net assets | ||
At beginning of period | 472,339,457 | 472,034,095 |
At end of period | $522,065,253 | $472,339,457 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $57.28 | $53.06 | $45.29 | $54.23 | $46.62 | $48.56 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.34 | $0.67 | $0.80 | $0.74 | $0.68 | $0.74(c) |
Net realized and unrealized gain (loss) | 9.62 | 7.21 | 11.74 | (4.12) | 8.80 | 3.24 |
Total from investment operations | $9.96 | $7.88 | $12.54 | $(3.38) | $9.48 | $3.98 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.88) | $(0.79) | $(0.77) | $(0.78) | $(0.72) |
From net realized gain | — | (2.78) | (3.98) | (4.79) | (1.09) | (5.20) |
Total distributions declared to shareholders | $— | $(3.66) | $(4.77) | $(5.56) | $(1.87) | $(5.92) |
Net asset value, end of period (x) | $67.24 | $57.28 | $53.06 | $45.29 | $54.23 | $46.62 |
Total return (%) (k)(r)(s)(x) | 17.39(n) | 15.34 | 29.17 | (7.74) | 20.76 | 8.45(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.44(a) | 0.45 | 0.45 | 0.45 | 0.46 | 0.49(c) |
Expenses after expense reductions (f) | 0.43(a) | 0.44 | 0.44 | 0.44 | 0.45 | 0.44(c) |
Net investment income (loss) | 1.11(a) | 1.30 | 1.58 | 1.39 | 1.35 | 1.56(c) |
Portfolio turnover | 24(n) | 56 | 46 | 54 | 51 | 49 |
Net assets at end of period (000 omitted) | $305,834 | $280,679 | $285,654 | $256,439 | $320,384 | $306,368 |
Service Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $56.68 | $52.54 | $44.87 | $53.79 | $46.26 | $48.26 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.26 | $0.54 | $0.67 | $0.61 | $0.55 | $0.61(c) |
Net realized and unrealized gain (loss) | 9.51 | 7.12 | 11.64 | (4.11) | 8.73 | 3.22 |
Total from investment operations | $9.77 | $7.66 | $12.31 | $(3.50) | $9.28 | $3.83 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.74) | $(0.66) | $(0.63) | $(0.66) | $(0.63) |
From net realized gain | — | (2.78) | (3.98) | (4.79) | (1.09) | (5.20) |
Total distributions declared to shareholders | $— | $(3.52) | $(4.64) | $(5.42) | $(1.75) | $(5.83) |
Net asset value, end of period (x) | $66.45 | $56.68 | $52.54 | $44.87 | $53.79 | $46.26 |
Total return (%) (k)(r)(s)(x) | 17.24(n) | 15.06 | 28.87 | (7.99) | 20.47 | 8.17(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.69(a) | 0.70 | 0.70 | 0.70 | 0.71 | 0.74(c) |
Expenses after expense reductions (f) | 0.68(a) | 0.69 | 0.69 | 0.69 | 0.70 | 0.69(c) |
Net investment income (loss) | 0.86(a) | 1.05 | 1.33 | 1.14 | 1.10 | 1.30(c) |
Portfolio turnover | 24(n) | 56 | 46 | 54 | 51 | 49 |
Net assets at end of period (000 omitted) | $216,231 | $191,661 | $186,380 | $157,522 | $182,103 | $169,622 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 | $518,410,021 | $— | $— | $518,410,021 |
Mutual Funds | 1,523,710 | — | — | 1,523,710 |
Total | $519,933,731 | $— | $— | $519,933,731 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $6,680,112 |
Long-term capital gains | 22,561,026 |
Total distributions | $29,241,138 |
As of 6/30/21 | |
Cost of investments | $318,206,849 |
Gross appreciation | 203,684,503 |
Gross depreciation | (1,957,621) |
Net unrealized appreciation (depreciation) | $201,726,882 |
As of 12/31/20 | |
Undistributed ordinary income | 8,022,598 |
Undistributed long-term capital gain | 32,193,902 |
Net unrealized appreciation (depreciation) | 159,660,393 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $17,686,199 | |
Service Class | — | 11,554,939 | |
Total | $— | $29,241,138 |
Up to $1 billion | 0.40% |
In excess of $1 billion and up to $2.5 billion | 0.375% |
In excess of $2.5 billion | 0.35% |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 28,476 | $1,762,958 | 63,891 | $3,132,327 | |
Service Class | 126,735 | 7,994,487 | 183,279 | 8,493,425 | |
155,211 | $9,757,445 | 247,170 | $11,625,752 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 326,069 | $17,421,868 | |
Service Class | — | — | 218,389 | 11,554,939 | |
— | $— | 544,458 | $28,976,807 | ||
Shares reacquired | |||||
Initial Class | (380,118) | $(23,687,919) | (873,552) | $(45,226,511) | |
Service Class | (254,253) | (15,851,063) | (567,361) | (28,761,438) | |
(634,371) | $(39,538,982) | (1,440,913) | $(73,987,949) | ||
Net change | |||||
Initial Class | (351,642) | $(21,924,961) | (483,592) | $(24,672,316) | |
Service Class | (127,518) | (7,856,576) | (165,693) | (8,713,074) | |
(479,160) | $(29,781,537) | (649,285) | $(33,385,390) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $2,205,534 | $29,152,469 | $29,834,293 | $— | $— | $1,523,710 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $699 | $— |
1 | |
2 | |
3 | |
4 | |
11 | |
12 | |
13 | |
14 | |
16 | |
23 | |
24 | |
24 | |
24 | |
24 |
Investment Grade Corporates | 77.6% |
High Yield Corporates | 13.5% |
Emerging Markets Bonds | 4.1% |
Municipal Bonds | 1.5% |
Commercial Mortgage-Backed Securities | 0.4% |
Asset-Backed Securities (o) | 0.0% |
Mortgage-Backed Securities (o) | 0.0% |
U.S. Treasury Securities | (3.5)% |
AAA | 0.8% |
AA | 3.2% |
A | 18.9% |
BBB | 60.0% |
BB | 11.8% |
B | 2.3% |
C | 0.1% |
U.S. Government | 1.2% |
Federal Agencies (o) | 0.0% |
Not Rated | (4.7)% |
Cash & Cash Equivalents | 1.7% |
Other | 4.7% |
Average Duration (d) | 8.2 |
Average Effective Maturity (m) | 11.3 yrs. |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 ratings agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities. Not Rated includes fixed income securities and fixed income derivatives that have not been rated by any rating agency. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening device (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity. |
(o) | Less than 0.1%. |
January 1, 2021 through June 30, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/21 | Ending Account Value 6/30/21 | Expenses Paid During Period (p) 1/01/21-6/30/21 | |
Initial Class | Actual | 0.63% | $1,000.00 | $986.63 | $3.10 |
Hypothetical (h) | 0.63% | $1,000.00 | $1,021.67 | $3.16 | |
Service Class | Actual | 0.88% | $1,000.00 | $984.85 | $4.33 |
Hypothetical (h) | 0.88% | $1,000.00 | $1,020.43 | $4.41 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Bonds – 97.4% | ||||
Aerospace & Defense – 1.8% | ||||
Boeing Co., 5.15%, 5/01/2030 | $ | 855,000 | $ 1,012,453 | |
Boeing Co., 3.75%, 2/01/2050 | 342,000 | 352,756 | ||
Huntington Ingalls Industries, Inc., 3.483%, 12/01/2027 | 630,000 | 687,716 | ||
Raytheon Technologies Corp., 4.125%, 11/16/2028 | 517,000 | 594,839 | ||
TransDigm, Inc., 6.25%, 3/15/2026 (n) | 609,000 | 642,495 | ||
TransDigm, Inc., 4.625%, 1/15/2029 (n) | 633,000 | 633,222 | ||
$3,923,481 | ||||
Apparel Manufacturers – 0.1% | ||||
Tapestry, Inc., 4.125%, 7/15/2027 | $ | 210,000 | $ 230,209 | |
Asset-Backed & Securitized – 0.4% | ||||
Bayview Financial Revolving Mortgage Loan Trust, FLR, 1.695% (LIBOR - 1mo. + 1.6%), 12/28/2040 (n) | $ | 82,992 | $ 89,249 | |
Benchmark Mortgage Trust, 2021-B27, “XA”, 1.273%, 7/15/2054 (i) | 7,074,821 | 713,373 | ||
JPMorgan Chase Commercial Mortgage Securities Corp., 5.788%, 7/15/2042 (n) | 108,821 | 89,778 | ||
Lehman Brothers Commercial Conduit Mortgage Trust, 1.099%, 2/18/2030 (i) | 13,491 | 0 | ||
$892,400 | ||||
Automotive – 2.7% | ||||
Hyundai Capital America, 3%, 2/10/2027 (n) | $ | 1,274,000 | $ 1,349,682 | |
Hyundai Capital America, 2%, 6/15/2028 (n) | 1,255,000 | 1,244,368 | ||
Hyundai Capital America, 6.375%, 4/08/2030 (n) | 352,000 | 456,343 | ||
Lear Corp., 3.8%, 9/15/2027 | 1,276,000 | 1,406,407 | ||
Toyota Motor Credit Corp., 3.375%, 4/01/2030 | 693,000 | 776,978 | ||
Volkswagen Group of America Finance LLC, 3.35%, 5/13/2025 (n) | 604,000 | 651,781 | ||
$5,885,559 | ||||
Broadcasting – 2.0% | ||||
Discovery, Inc., 4.125%, 5/15/2029 | $ | 373,000 | $ 417,625 | |
Discovery, Inc., 5.3%, 5/15/2049 | 600,000 | 758,816 | ||
Prosus N.V., 3.832%, 2/08/2051 (n) | 542,000 | 504,375 | ||
Walt Disney Co., 3.5%, 5/13/2040 | 1,825,000 | 2,034,692 | ||
Walt Disney Co., 3.6%, 1/13/2051 | 593,000 | 672,170 | ||
$4,387,678 | ||||
Brokerage & Asset Managers – 1.0% | ||||
Intercontinental Exchange, Inc., 2.1%, 6/15/2030 | $ | 1,456,000 | $ 1,445,837 | |
Intercontinental Exchange, Inc., 1.85%, 9/15/2032 | 412,000 | 389,903 | ||
Intercontinental Exchange, Inc., 3%, 9/15/2060 | 413,000 | 398,183 | ||
$2,233,923 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Building – 1.9% | ||||
CRH America Finance, Inc., 4.5%, 4/04/2048 (n) | $ | 896,000 | $ 1,092,560 | |
Martin Marietta Materials, Inc., 4.25%, 7/02/2024 | 850,000 | 926,510 | ||
Martin Marietta Materials, Inc., 3.5%, 12/15/2027 | 747,000 | 822,292 | ||
Vulcan Materials Co., 3.5%, 6/01/2030 | 671,000 | 739,644 | ||
Vulcan Materials Co., 4.5%, 6/15/2047 | 447,000 | 540,484 | ||
$4,121,490 | ||||
Business Services – 4.2% | ||||
Equinix, Inc., 2.625%, 11/18/2024 | $ | 838,000 | $ 881,728 | |
Equinix, Inc., 2.5%, 5/15/2031 | 934,000 | 949,904 | ||
Equinix, Inc., 3%, 7/15/2050 | 661,000 | 634,661 | ||
Fiserv, Inc., 2.25%, 6/01/2027 | 817,000 | 847,500 | ||
Fiserv, Inc., 4.4%, 7/01/2049 | 711,000 | 857,581 | ||
Global Payments, Inc., 2.9%, 5/15/2030 | 963,000 | 1,003,316 | ||
IHS Markit Ltd., 4.25%, 5/01/2029 | 465,000 | 538,098 | ||
NXP B.V./NXP Funding LLC/NXP USA, Inc., 3.15%, 5/01/2027 (n) | 379,000 | 405,427 | ||
NXP B.V./NXP Funding LLC/NXP USA, Inc., 2.5%, 5/11/2031 (n) | 753,000 | 760,448 | ||
NXP B.V./NXP Funding LLC/NXP USA, Inc., 3.25%, 5/11/2041 (n) | 646,000 | 664,198 | ||
Visa, Inc., 3.65%, 9/15/2047 | 865,000 | 1,012,961 | ||
Western Union Co., 2.85%, 1/10/2025 | 495,000 | 523,316 | ||
$9,079,138 | ||||
Cable TV – 3.5% | ||||
CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 8/15/2030 (n) | $ | 304,000 | $ 316,529 | |
CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 5/01/2032 | 305,000 | 316,056 | ||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 6.384%, 10/23/2035 | 58,000 | 77,527 | ||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 5.375%, 5/01/2047 | 1,079,000 | 1,322,218 | ||
Comcast Corp., 1.95%, 1/15/2031 | 371,000 | 365,740 | ||
Comcast Corp., 2.8%, 1/15/2051 | 1,333,000 | 1,282,519 | ||
Cox Communications, Inc., 3.5%, 8/15/2027 (n) | 803,000 | 881,511 | ||
Sirius XM Radio, Inc., 5.375%, 7/15/2026 (n) | 353,000 | 364,473 | ||
Sirius XM Radio, Inc., 5%, 8/01/2027 (n) | 594,000 | 622,363 | ||
Sirius XM Radio, Inc., 5.5%, 7/01/2029 (n) | 292,000 | 318,192 | ||
Sirius XM Radio, Inc., 4.125%, 7/01/2030 (n) | 644,000 | 649,719 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Cable TV – continued | ||||
Time Warner Cable, Inc., 4.5%, 9/15/2042 | $ | 955,000 | $ 1,061,527 | |
$7,578,374 | ||||
Chemicals – 0.5% | ||||
Alpek SAB de C.V., 3.25%, 2/25/2031 (n) | $ | 548,000 | $ 554,582 | |
Sherwin-Williams Co., 4.5%, 6/01/2047 | 500,000 | 625,404 | ||
$1,179,986 | ||||
Computer Software – 1.2% | ||||
Dell International LLC/EMC Corp., 4.9%, 10/01/2026 | $ | 1,456,000 | $ 1,680,346 | |
Microsoft Corp., 2.525%, 6/01/2050 | 1,047,000 | 1,028,658 | ||
$2,709,004 | ||||
Computer Software - Systems – 1.0% | ||||
Apple, Inc., 2.05%, 9/11/2026 | $ | 2,000,000 | $ 2,093,218 | |
Conglomerates – 2.0% | ||||
Carrier Global Corp., 2.722%, 2/15/2030 | $ | 918,000 | $ 951,706 | |
Carrier Global Corp., 3.377%, 4/05/2040 | 608,000 | 637,746 | ||
Otis Worldwide Corp., 2.565%, 2/15/2030 | 765,000 | 792,270 | ||
Westinghouse Air Brake Technologies Corp., 3.2%, 6/15/2025 | 1,501,000 | 1,596,313 | ||
Westinghouse Air Brake Technologies Corp., 4.95%, 9/15/2028 | 330,000 | 382,796 | ||
$4,360,831 | ||||
Consumer Products – 1.5% | ||||
Mattel, Inc., 3.75%, 4/01/2029 (n) | $ | 1,102,000 | $ 1,146,080 | |
Reckitt Benckiser Treasury Services PLC, 3%, 6/26/2027 (n) | 1,876,000 | 2,029,567 | ||
$3,175,647 | ||||
Consumer Services – 1.1% | ||||
Booking Holdings, Inc., 3.6%, 6/01/2026 | $ | 1,761,000 | $ 1,951,926 | |
Booking Holdings, Inc., 3.55%, 3/15/2028 | 334,000 | 372,671 | ||
$2,324,597 | ||||
Containers – 0.7% | ||||
Ball Corp., 4.875%, 3/15/2026 | $ | 587,000 | $ 653,777 | |
Ball Corp., 2.875%, 8/15/2030 | 878,000 | 861,862 | ||
$1,515,639 | ||||
Electrical Equipment – 1.0% | ||||
Arrow Electronics, Inc., 3.875%, 1/12/2028 | $ | 1,979,000 | $ 2,215,906 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Electronics – 2.1% | ||||
Broadcom Corp./Broadcom Cayman Finance Ltd., 3.875%, 1/15/2027 | $ | 484,000 | $ 534,809 | |
Broadcom Corp./Broadcom Cayman Finance Ltd., 3.5%, 1/15/2028 | 976,000 | 1,070,729 | ||
Broadcom, Inc., 4.3%, 11/15/2032 | 1,056,000 | 1,202,494 | ||
Broadcom, Inc., 3.469%, 4/15/2034 (n) | 512,000 | 541,571 | ||
Sensata Technologies, Inc., 4.375%, 2/15/2030 (n) | 1,150,000 | 1,211,918 | ||
$4,561,521 | ||||
Emerging Market Quasi-Sovereign – 0.8% | ||||
Ecopetrol S.A., 5.375%, 6/26/2026 | $ | 301,000 | $ 331,883 | |
Ecopetrol S.A., 6.875%, 4/29/2030 | 451,000 | 544,361 | ||
Qatar Petroleum, 3.125%, 7/12/2041 (n) | 781,000 | 778,118 | ||
$1,654,362 | ||||
Emerging Market Sovereign – 0.4% | ||||
Republic of Panama, 2.252%, 9/29/2032 | $ | 901,000 | $ 863,653 | |
Energy - Independent – 0.5% | ||||
Diamondback Energy, Inc., 3.125%, 3/24/2031 | $ | 612,000 | $ 634,250 | |
Hess Corp., 5.8%, 4/01/2047 | 297,000 | 387,000 | ||
$1,021,250 | ||||
Energy - Integrated – 1.5% | ||||
Cenovus Energy, Inc., 5.375%, 7/15/2025 | $ | 996,000 | $ 1,139,457 | |
Eni S.p.A., 4.75%, 9/12/2028 (n) | 761,000 | 891,075 | ||
Eni S.p.A., 4.25%, 5/09/2029 (n) | 650,000 | 739,431 | ||
Total Capital International S.A., 3.127%, 5/29/2050 | 437,000 | 442,977 | ||
$3,212,940 | ||||
Entertainment – 0.5% | ||||
Royal Caribbean Cruises, 4.25%, 7/01/2026 (n) | $ | 1,093,000 | $ 1,091,634 | |
Financial Institutions – 2.2% | ||||
AerCap Ireland Capital DAC, 4.875%, 1/16/2024 | $ | 434,000 | $ 472,470 | |
AerCap Ireland Capital DAC, 3.65%, 7/21/2027 | 1,576,000 | 1,683,613 | ||
Avolon Holdings Funding Ltd., 2.125%, 2/21/2026 (n) | 294,000 | 292,783 | ||
Avolon Holdings Funding Ltd., 4.25%, 4/15/2026 (n) | 243,000 | 263,333 | ||
Avolon Holdings Funding Ltd., 4.375%, 5/01/2026 (n) | 624,000 | 678,281 | ||
Avolon Holdings Funding Ltd., 3.25%, 2/15/2027 (n) | 621,000 | 640,259 | ||
Avolon Holdings Funding Ltd., 2.75%, 2/21/2028 (n) | 841,000 | 832,127 | ||
$4,862,866 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Food & Beverages – 3.9% | ||||
Anheuser-Busch InBev Worldwide, Inc., 3.5%, 6/01/2030 | $ | 594,000 | $ 660,757 | |
Anheuser-Busch InBev Worldwide, Inc., 4.375%, 4/15/2038 | 527,000 | 630,066 | ||
Anheuser-Busch InBev Worldwide, Inc., 5.55%, 1/23/2049 | 566,000 | 778,160 | ||
Anheuser-Busch InBev Worldwide, Inc., 4.75%, 4/15/2058 | 444,000 | 556,702 | ||
Aramark Services, Inc., 6.375%, 5/01/2025 (n) | 534,000 | 567,375 | ||
Aramark Services, Inc., 5%, 2/01/2028 (n) | 539,000 | 564,441 | ||
Constellation Brands, Inc., 4.25%, 5/01/2023 | 586,000 | 625,076 | ||
Constellation Brands, Inc., 2.875%, 5/01/2030 | 168,000 | 176,174 | ||
Constellation Brands, Inc., 3.75%, 5/01/2050 | 242,000 | 267,800 | ||
Diageo Capital PLC, 2.375%, 10/24/2029 | 1,023,000 | 1,058,959 | ||
JBS USA LLC/JBS USA Finance, Inc., 6.75%, 2/15/2028 (n) | 630,000 | 692,212 | ||
JBS USA Lux S.A./JBS USA Finance, Inc., 6.5%, 4/15/2029 (n) | 714,000 | 802,365 | ||
JBS USA Lux S.A./JBS USA Finance, Inc., 5.5%, 1/15/2030 (n) | 308,000 | 344,461 | ||
JBS USA Lux S.A./JBS USA Finance, Inc., 3.75%, 12/01/2031 (n) | 308,000 | 315,161 | ||
SYSCO Corp., 2.4%, 2/15/2030 | 148,000 | 150,279 | ||
SYSCO Corp., 4.45%, 3/15/2048 | 268,000 | 320,327 | ||
$8,510,315 | ||||
Gaming & Lodging – 2.2% | ||||
GLP Capital LP/GLP Financing II, Inc., 5.75%, 6/01/2028 | $ | 1,365,000 | $ 1,624,157 | |
Hilton Domestic Operating Co., Inc., 4.875%, 1/15/2030 | 922,000 | 984,235 | ||
Hilton Domestic Operating Co., Inc., 3.625%, 2/15/2032 (n) | 588,000 | 580,650 | ||
Marriott International, Inc., 4%, 4/15/2028 | 1,026,000 | 1,127,542 | ||
Marriott International, Inc., 2.85%, 4/15/2031 | 325,000 | 330,034 | ||
Sands China Ltd., 3.8%, 1/08/2026 | 220,000 | 234,953 | ||
$4,881,571 | ||||
Industrial – 0.1% | ||||
American Homes 4 Rent, L.P., 2.375%, 7/15/2031 | $ | 99,000 | $ 97,528 | |
American Homes 4 Rent, L.P., 3.375%, 7/15/2051 | 140,000 | 137,147 | ||
$234,675 | ||||
Insurance - Health – 1.3% | ||||
Centene Corp., 2.45%, 7/15/2028 | $ | 600,000 | $ 608,100 | |
UnitedHealth Group, Inc., 4.625%, 7/15/2035 | 1,690,000 | 2,134,749 | ||
$2,742,849 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Insurance - Property & Casualty – 2.0% | ||||
Aon Corp., 3.75%, 5/02/2029 | $ | 1,376,000 | $ 1,548,364 | |
Fairfax Financial Holdings Ltd., 3.375%, 3/03/2031 (n) | 347,000 | 361,626 | ||
Hartford Financial Services Group, Inc., 3.6%, 8/19/2049 | 874,000 | 958,285 | ||
Marsh & McLennan Cos., Inc., 4.75%, 3/15/2039 | 740,000 | 944,894 | ||
Marsh & McLennan Cos., Inc., 4.35%, 1/30/2047 | 471,000 | 588,591 | ||
$4,401,760 | ||||
Machinery & Tools – 0.8% | ||||
CNH Industrial Capital LLC, 4.2%, 1/15/2024 | $ | 515,000 | $ 557,273 | |
CNH Industrial Capital LLC, 1.875%, 1/15/2026 | 288,000 | 292,883 | ||
CNH Industrial Capital LLC, 3.85%, 11/15/2027 | 905,000 | 1,002,010 | ||
$1,852,166 | ||||
Major Banks – 11.3% | ||||
Australia and New Zealand Banking Group Ltd., 2.57%, 11/25/2035 (n) | $ | 827,000 | $ 803,331 | |
Bank of America Corp., 4.125%, 1/22/2024 | 1,142,000 | 1,243,390 | ||
Bank of America Corp., 3.5%, 4/19/2026 | 2,000,000 | 2,203,318 | ||
Bank of America Corp., 3.419% to 12/20/2027, FLR (LIBOR - 3mo. + 1.04%) to 12/20/2028 | 351,000 | 382,277 | ||
Bank of America Corp., 2.676% to 6/19/2040, FLR (SOFR + 1.93%) to 6/19/2041 | 721,000 | 699,730 | ||
Bank of America Corp., 3.311% to 4/22/2041, FLR (SOFR + 1.58%) to 4/22/2042 | 1,498,000 | 1,585,034 | ||
Commonwealth Bank of Australia, 3.61% to 9/12/2029, FLR (CMT - 1yr. + 2.05%) to 9/12/2034 (n) | 431,000 | 456,188 | ||
Commonwealth Bank of Australia, 3.305%, 3/11/2041 (n) | 849,000 | 864,403 | ||
Credit Agricole S.A., 1.247% to 1/26/2026, FLR (SOFR + 0.89162%) to 1/26/2027 (n) | 447,000 | 440,086 | ||
Credit Suisse Group AG, 4.194% to 4/01/2030, FLR (SOFR + 3.73%), to 4/01/2031 (n) | 694,000 | 779,937 | ||
Credit Suisse Group AG, 3.091% to 5/14/2031, FLR (SOFR + 1.73%) to 5/14/2032 (n) | 250,000 | 257,563 | ||
Credit Suisse Group AG, 4.5% to 3/03/2031, FLR (CMT - 1yr. + 3.554%) to 6/09/2070 (n) | 452,000 | 448,565 | ||
Goldman Sachs Group, Inc., 2.6%, 2/07/2030 | 565,000 | 586,290 | ||
HSBC Holdings PLC, 2.357% to 8/18/2030, FLR (SOFR + 1.947%) to 8/18/2031 | 1,345,000 | 1,345,918 | ||
HSBC Holdings PLC, 5.25%, 3/14/2044 | 293,000 | 379,716 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Major Banks – continued | ||||
JPMorgan Chase & Co., 3.125%, 1/23/2025 | $ | 688,000 | $ 738,299 | |
JPMorgan Chase & Co., 3.54%, 5/01/2028 | 1,709,000 | 1,878,985 | ||
JPMorgan Chase & Co., 3.897% to 1/23/2048, FLR (LIBOR - 3mo. + 1.22%) to 1/23/2049 | 1,111,000 | 1,291,109 | ||
Morgan Stanley, 4.431% to 1/23/2029, FLR (LIBOR - 3mo. + 1.63%) to 1/23/2030 | 439,000 | 514,021 | ||
Morgan Stanley, 2.699% to 1/22/2030, FLR (SOFR + 1.143%) to 1/22/2031 | 2,000,000 | 2,093,605 | ||
Morgan Stanley, 3.622% to 4/01/2030, FLR (SOFR + 3.12%) to 4/01/2031 | 2,049,000 | 2,287,205 | ||
Morgan Stanley, 3.217% to 4/22/2041, FLR (SOFR + 1.485%) to 4/22/2042 | 459,000 | 486,560 | ||
Sumitomo Mitsui Financial Group, Inc., 1.71%, 1/12/2031 | 1,054,000 | 1,025,843 | ||
UBS Group AG, 3.126% to 8/13/2029, FLR (LIBOR - 3mo. + 1.468%) to 8/13/2030 (n) | 454,000 | 486,560 | ||
UBS Group AG, 4.375% to 2/10/2031, FLR (CMT - 1yr. + 3.313%) to 8/10/2069 (n) | 961,000 | 981,854 | ||
UniCredit S.p.A., 2.569% to 9/22/2025, FLR (CMT - 1yr. + 2.3%) to 9/22/2026 (n) | 350,000 | 354,846 | ||
$24,614,633 | ||||
Medical & Health Technology & Services – 4.5% | ||||
Alcon, Inc., 2.6%, 5/27/2030 (n) | $ | 1,215,000 | $ 1,240,784 | |
Alcon, Inc., 3.8%, 9/23/2049 (n) | 492,000 | 546,737 | ||
Becton, Dickinson and Co., 3.734%, 12/15/2024 | 161,000 | 175,321 | ||
Becton, Dickinson and Co., 4.685%, 12/15/2044 | 847,000 | 1,054,075 | ||
Becton, Dickinson and Co., 4.669%, 6/06/2047 | 955,000 | 1,189,742 | ||
HCA, Inc., 4.75%, 5/01/2023 | 910,000 | 975,050 | ||
HCA, Inc., 5.25%, 6/15/2026 | 978,000 | 1,132,093 | ||
HCA, Inc., 5.875%, 2/01/2029 | 807,000 | 974,452 | ||
HCA, Inc., 3.5%, 9/01/2030 | 122,000 | 129,975 | ||
HCA, Inc., 5.125%, 6/15/2039 | 207,000 | 258,569 | ||
IQVIA Holdings, Inc., 5%, 5/15/2027 (n) | 856,000 | 896,660 | ||
Laboratory Corp. of America Holdings, 3.25%, 9/01/2024 | 591,000 | 632,472 | ||
Thermo Fisher Scientific, Inc., 2.95%, 9/19/2026 | 555,000 | 598,489 | ||
$9,804,419 | ||||
Medical Equipment – 1.1% | ||||
Boston Scientific Corp., 3.75%, 3/01/2026 | $ | 548,000 | $ 607,614 | |
Boston Scientific Corp., 2.65%, 6/01/2030 | 339,000 | 350,631 | ||
Danaher Corp., 2.6%, 10/01/2050 | 1,245,000 | 1,190,455 | ||
Teleflex, Inc., 4.625%, 11/15/2027 | 125,000 | 133,149 | ||
Teleflex, Inc., 4.25%, 6/01/2028 (n) | 191,000 | 199,117 | ||
$2,480,966 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Metals & Mining – 2.8% | ||||
Anglo American Capital PLC, 2.25%, 3/17/2028 (n) | $ | 389,000 | $ 393,308 | |
Anglo American Capital PLC, 2.625%, 9/10/2030 (n) | 827,000 | 830,128 | ||
Anglo American Capital PLC, 2.875%, 3/17/2031 (n) | 454,000 | 464,110 | ||
FMG Resources Ltd., 4.375%, 4/01/2031 (n) | 897,000 | 959,638 | ||
Freeport-McMoRan Copper & Gold, Inc., 4.625%, 8/01/2030 | 817,000 | 894,615 | ||
Glencore Funding LLC, 4.125%, 5/30/2023 (n) | 863,000 | 917,919 | ||
Glencore Funding LLC, 2.5%, 9/01/2030 (n) | 293,000 | 292,284 | ||
Glencore Funding LLC, 2.85%, 4/27/2031 (n) | 611,000 | 621,347 | ||
Novelis Corp., 4.75%, 1/30/2030 (n) | 781,000 | 820,050 | ||
$6,193,399 | ||||
Midstream – 4.8% | ||||
Cheniere Corpus Christi Holdings LLC, 3.7%, 11/15/2029 | $ | 512,000 | $ 559,248 | |
DT Midstream, Inc., 4.125%, 6/15/2029 (n) | 461,000 | 468,067 | ||
DT Midstream, Inc., 4.375%, 6/15/2031 (n) | 461,000 | 471,045 | ||
Energy Transfer LP, 3.75%, 5/15/2030 | 307,000 | 333,490 | ||
Energy Transfer Operating Co., 5%, 5/15/2050 | 378,000 | 436,898 | ||
Enterprise Products Operating LLC, 3.7%, 1/31/2051 | 1,201,000 | 1,287,976 | ||
Galaxy Pipeline Assets Bidco Ltd., 1.75%, 9/30/2027 (n) | 1,365,000 | 1,378,601 | ||
Galaxy Pipeline Assets Bidco Ltd., 2.16%, 3/31/2034 (n) | 489,000 | 479,855 | ||
MPLX LP, 4.5%, 4/15/2038 | 1,197,000 | 1,373,504 | ||
MPLX LP, 4.7%, 4/15/2048 | 61,000 | 70,864 | ||
Plains All American Pipeline, 4.9%, 2/15/2045 | 309,000 | 335,815 | ||
Plains All American Pipeline LP/PAA Finance Corp., 4.65%, 10/15/2025 | 301,000 | 336,754 | ||
Plains All American Pipeline LP/PAA Finance Corp., 3.55%, 12/15/2029 | 476,000 | 501,239 | ||
Sabine Pass Liquefaction LLC, 5.625%, 3/01/2025 | 133,000 | 152,011 | ||
Sabine Pass Liquefaction LLC, 5.875%, 6/30/2026 | 289,000 | 342,106 | ||
Sabine Pass Liquefaction LLC, 5%, 3/15/2027 | 414,000 | 478,063 | ||
Sabine Pass Liquefaction LLC, 4.2%, 3/15/2028 | 1,021,000 | 1,153,046 | ||
Sabine Pass Liquefaction LLC, 4.5%, 5/15/2030 | 203,000 | 234,273 | ||
$10,392,855 | ||||
Mortgage-Backed – 0.0% | ||||
Freddie Mac, 3.244%, 8/25/2027 | $ | 69,000 | $ 76,807 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Municipals – 1.4% | ||||
Florida State Board of Administration Finance Corp. Rev., “A”, 1.705%, 7/01/2027 | $ | 1,146,000 | $ 1,164,550 | |
New Jersey Economic Development Authority State Pension Funding Rev., “A”, NPFG, 7.425%, 2/15/2029 | 1,500,000 | 1,945,263 | ||
$3,109,813 | ||||
Natural Gas - Distribution – 2.8% | ||||
NiSource Finance Corp., 4.8%, 2/15/2044 | $ | 761,000 | $ 934,310 | |
NiSource, Inc., 2.95%, 9/01/2029 | 1,371,000 | 1,452,224 | ||
NiSource, Inc., 5.65%, 2/01/2045 | 475,000 | 654,691 | ||
Sempra Energy, 3.25%, 6/15/2027 | 2,779,000 | 3,014,433 | ||
$6,055,658 | ||||
Natural Gas - Pipeline – 0.8% | ||||
APT Pipelines Ltd., 5%, 3/23/2035 (n) | $ | 1,375,000 | $ 1,686,472 | |
Network & Telecom – 1.8% | ||||
AT&T, Inc., 2.75%, 6/01/2031 | $ | 741,000 | $ 770,261 | |
AT&T, Inc., 2.55%, 12/01/2033 (n) | 753,000 | 745,953 | ||
AT&T, Inc., 3.55%, 9/15/2055 (n) | 577,000 | 578,935 | ||
Verizon Communications, Inc., 2.1%, 3/22/2028 | 159,000 | 162,326 | ||
Verizon Communications, Inc., 3.15%, 3/22/2030 | 310,000 | 334,729 | ||
Verizon Communications, Inc., 4.812%, 3/15/2039 | 247,000 | 312,869 | ||
Verizon Communications, Inc., 3.4%, 3/22/2041 | 580,000 | 613,549 | ||
Verizon Communications, Inc., 4.522%, 9/15/2048 | 310,000 | 383,489 | ||
$3,902,111 | ||||
Oils – 0.8% | ||||
Puma International Financing S.A., 5%, 1/24/2026 | $ | 604,000 | $ 609,134 | |
Valero Energy Corp., 4.9%, 3/15/2045 | 950,000 | 1,187,123 | ||
$1,796,257 | ||||
Other Banks & Diversified Financials – 0.6% | ||||
Groupe BPCE S.A., 4.5%, 3/15/2025 (n) | $ | 760,000 | $ 837,366 | |
Mizrahi Tefahot Bank Ltd., 3.077% to 4/07/2026, FLR (CMT - 5yr. + 2.25%) to 4/07/2031 (n) | 416,000 | 420,160 | ||
$1,257,526 | ||||
Pollution Control – 0.6% | ||||
Republic Services, Inc., 3.95%, 5/15/2028 | $ | 1,100,000 | $ 1,251,347 | |
Real Estate - Office – 0.8% | ||||
Boston Properties, Inc., REIT, 2.55%, 4/01/2032 | $ | 1,068,000 | $ 1,074,620 | |
Corporate Office Property LP, 2.75%, 4/15/2031 | 594,000 | 598,482 | ||
$1,673,102 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Real Estate - Other – 0.2% | ||||
Sun Communities, Inc., 2.7%, 7/15/2031 | $ | 482,000 | $ 481,951 | |
Real Estate - Retail – 1.2% | ||||
Brixmor Operating Partnership LP, REIT, 4.125%, 5/15/2029 | $ | 114,000 | $ 127,718 | |
Brixmor Operating Partnership LP, REIT, 4.05%, 7/01/2030 | 418,000 | 467,682 | ||
National Retail Properties, Inc., REIT, 3.5%, 4/15/2051 | 284,000 | 297,222 | ||
Spirit Realty, LP, 4.45%, 9/15/2026 | 303,000 | 337,910 | ||
Spirit Realty, LP, 3.2%, 2/15/2031 | 368,000 | 383,526 | ||
STORE Capital Corp., 4.5%, 3/15/2028 | 119,000 | 134,435 | ||
STORE Capital Corp., 4.625%, 3/15/2029 | 179,000 | 203,593 | ||
VEREIT Operating Partnership LP, REIT, 3.1%, 12/15/2029 | 573,000 | 611,677 | ||
$2,563,763 | ||||
Restaurants – 0.3% | ||||
Yum! Brands, Inc., 4.625%, 1/31/2032 | $ | 608,000 | $ 638,400 | |
Retailers – 2.3% | ||||
Alimentation Couche-Tard, Inc., 3.8%, 1/25/2050 (n) | $ | 1,055,000 | $ 1,130,699 | |
Home Depot, Inc., 3.3%, 4/15/2040 | 1,070,000 | 1,172,021 | ||
Home Depot, Inc., 4.875%, 2/15/2044 | 760,000 | 1,014,989 | ||
Kohl's Corp., 3.375%, 5/01/2031 | 827,000 | 856,165 | ||
MercadoLibre, Inc., 3.125%, 1/14/2031 | 790,000 | 774,232 | ||
$4,948,106 | ||||
Specialty Stores – 0.3% | ||||
Nordstrom, Inc., 4.25%, 8/01/2031 (n) | $ | 605,000 | $ 630,107 | |
Telecommunications - Wireless – 4.8% | ||||
American Tower Corp., REIT, 3%, 6/15/2023 | $ | 1,049,000 | $ 1,099,350 | |
American Tower Corp., REIT, 4%, 6/01/2025 | 1,000,000 | 1,101,705 | ||
American Tower Corp., REIT, 3.6%, 1/15/2028 | 1,133,000 | 1,246,176 | ||
American Tower Corp., REIT, 3.8%, 8/15/2029 | 553,000 | 616,164 | ||
Cellnex Finance Co. S.A., 3.875%, 7/07/2041 (n) | 793,000 | 790,589 | ||
Crown Castle International Corp., 3.15%, 7/15/2023 | 878,000 | 921,745 | ||
Crown Castle International Corp., 4.45%, 2/15/2026 | 338,000 | 381,913 | ||
Crown Castle International Corp., 3.7%, 6/15/2026 | 533,000 | 586,119 | ||
Millicom International Cellular S.A., 4.5%, 4/27/2031 (n) | 556,000 | 575,460 | ||
T-Mobile USA, Inc., 2.625%, 4/15/2026 | 597,000 | 610,433 | ||
T-Mobile USA, Inc., 2.05%, 2/15/2028 | 795,000 | 807,060 | ||
T-Mobile USA, Inc., 4.5%, 4/15/2050 | 613,000 | 729,919 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Telecommunications - Wireless – continued | ||||
Vodafone Group PLC, 4.125% to 6/4/2031, FLR (CMT - 5yr. + 2.767%) to 6/4/2051, FLR (CMT - 5yr. + 3.517%) to 6/04/2081 | $ | 1,064,000 | $ 1,062,404 | |
$10,529,037 | ||||
Telephone Services – 0.5% | ||||
Deutsche Telekom AG, 3.625%, 1/21/2050 (n) | $ | 959,000 | $ 1,012,391 | |
Transportation - Services – 0.5% | ||||
ERAC USA Finance LLC, 3.85%, 11/15/2024 (n) | $ | 272,000 | $ 296,510 | |
ERAC USA Finance LLC, 7%, 10/15/2037 (n) | 421,000 | 628,077 | ||
ERAC USA Finance LLC, 4.5%, 2/15/2045 (n) | 201,000 | 245,151 | ||
$1,169,738 | ||||
U.S. Treasury Obligations – 1.2% | ||||
U.S. Treasury Bonds, 3.5%, 2/15/2039 (f) | $ | 1,243,000 | $ 1,554,867 | |
U.S. Treasury Bonds, 3%, 2/15/2048 | 802,500 | 956,605 | ||
$2,511,472 | ||||
Utilities - Electric Power – 7.1% | ||||
Berkshire Hathaway Energy Co., 4.5%, 2/01/2045 | $ | 597,000 | $ 735,422 | |
Berkshire Hathaway Energy Co., 4.25%, 10/15/2050 | 195,000 | 237,368 | ||
CenterPoint Energy, Inc., 2.65%, 6/01/2031 | 613,000 | 624,435 | ||
Duke Energy Corp., 3.3%, 6/15/2041 | 310,000 | 317,543 | ||
Duke Energy Corp., 3.75%, 9/01/2046 | 1,234,000 | 1,318,007 | ||
Duke Energy Progress LLC, 3.45%, 3/15/2029 | 582,000 | 644,688 | ||
Enel Finance International N.V., 2.65%, 9/10/2024 | 1,077,000 | 1,132,082 | ||
Enel Finance International N.V., 3.625%, 5/25/2027 (n) | 471,000 | 517,373 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Utilities - Electric Power – continued | ||||
Enel Finance International N.V., 4.75%, 5/25/2047 (n) | $ | 460,000 | $ 564,766 | |
Evergy, Inc., 2.9%, 9/15/2029 | 1,510,000 | 1,600,172 | ||
FirstEnergy Corp., 4.4%, 7/15/2027 | 707,000 | 768,863 | ||
FirstEnergy Corp., 3.4%, 3/01/2050 | 1,264,000 | 1,235,560 | ||
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n) | 614,000 | 623,266 | ||
NextEra Energy Capital Holdings, Inc., 3.15%, 4/01/2024 | 1,283,000 | 1,363,622 | ||
NextEra Energy Operating Co., 4.5%, 9/15/2027 (n) | 1,000,000 | 1,082,150 | ||
Pacific Gas & Electric Co., 2.1%, 8/01/2027 | 544,000 | 528,324 | ||
Pacific Gas & Electric Co., 2.5%, 2/01/2031 | 458,000 | 429,396 | ||
Pacific Gas & Electric Co., 4.95%, 7/01/2050 | 305,177 | 313,895 | ||
Southern California Edison Co.'s First & Refunding Mortgage Bonds, 3.65%, 2/01/2050 | 795,000 | 795,067 | ||
Virginia Electric & Power Co., 2.875%, 7/15/2029 | 579,000 | 621,935 | ||
$15,453,934 | ||||
Total Bonds (Identified Cost, $198,673,799) | $ 212,032,906 | |||
Investment Companies (h) – 1.8% | ||||
Money Market Funds – 1.8% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $3,810,272) | 3,810,272 | $ 3,810,272 | ||
Other Assets, Less Liabilities – 0.8% | 1,825,247 | |||
Net Assets – 100.0% | $ 217,668,425 |
(f) | All or a portion of the security has been segregated as collateral for open futures contracts. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $3,810,272 and $212,032,906, respectively. | |||
(i) | Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security. | |||
(n) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $56,874,171, representing 26.1% 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: | |
CMT | Constant Maturity Treasury |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
LIBOR | London Interbank Offered Rate |
NPFG | National Public Finance Guarantee Corp. |
REIT | Real Estate Investment Trust |
SOFR | Secured Overnight Financing Rate |
Derivative Contracts at 6/30/21 | ||||||
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Ultra Bond | Long | USD | 42 | $8,092,875 | September – 2021 | $312,218 |
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 10 yr | Short | USD | 131 | $17,357,500 | September – 2021 | $(67,008) |
U.S. Treasury Note 2 yr | Long | USD | 53 | 11,676,977 | September – 2021 | (20,743) |
U.S. Treasury Ultra Note 10 yr | Short | USD | 86 | 12,659,469 | September – 2021 | (170,723) |
$(258,474) |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $198,673,799) | $212,032,906 |
Investments in affiliated issuers, at value (identified cost, $3,810,272) | 3,810,272 |
Receivables for | |
Investments sold | 2,994,423 |
Fund shares sold | 4,035 |
Interest | 1,926,668 |
Receivable from investment adviser | 2,454 |
Other assets | 1,008 |
Total assets | $220,771,766 |
Liabilities | |
Payables for | |
Net daily variation margin on open futures contracts | $23,850 |
Investments purchased | 2,942,326 |
Fund shares reacquired | 62,574 |
Payable to affiliates | |
Administrative services fee | 215 |
Shareholder servicing costs | 44 |
Distribution and/or service fees | 2,232 |
Accrued expenses and other liabilities | 72,100 |
Total liabilities | $3,103,341 |
Net assets | $217,668,425 |
Net assets consist of | |
Paid-in capital | $187,078,184 |
Total distributable earnings (loss) | 30,590,241 |
Net assets | $217,668,425 |
Shares of beneficial interest outstanding | 17,553,371 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $54,464,741 | 4,342,025 | $12.54 |
Service Class | 163,203,684 | 13,211,346 | 12.35 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Interest | $3,534,808 |
Dividends from affiliated issuers | 1,712 |
Other | 39 |
Total investment income | $3,536,559 |
Expenses | |
Management fee | $652,136 |
Distribution and/or service fees | 203,076 |
Shareholder servicing costs | 4,322 |
Administrative services fee | 19,403 |
Independent Trustees' compensation | 2,574 |
Custodian fee | 7,336 |
Shareholder communications | 6,731 |
Audit and tax fees | 38,670 |
Legal fees | 811 |
Miscellaneous | 15,878 |
Total expenses | $950,937 |
Reduction of expenses by investment adviser | (62,663) |
Net expenses | $888,274 |
Net investment income (loss) | $2,648,285 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $5,103,885 |
Futures contracts | (424,312) |
Net realized gain (loss) | $4,679,573 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(10,620,352) |
Futures contracts | 107,808 |
Net unrealized gain (loss) | $(10,512,544) |
Net realized and unrealized gain (loss) | $(5,832,971) |
Change in net assets from operations | $(3,184,686) |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/21 (unaudited) | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $2,648,285 | $5,813,824 |
Net realized gain (loss) | 4,679,573 | 4,504,182 |
Net unrealized gain (loss) | (10,512,544) | 9,420,324 |
Change in net assets from operations | $(3,184,686) | $19,738,330 |
Total distributions to shareholders | $— | $(7,693,047) |
Change in net assets from fund share transactions | $(7,519,384) | $(3,220,009) |
Total change in net assets | $(10,704,070) | $8,825,274 |
Net assets | ||
At beginning of period | 228,372,495 | 219,547,221 |
At end of period | $217,668,425 | $228,372,495 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $12.71 | $11.94 | $10.81 | $11.64 | $11.36 | $11.16 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.16 | $0.36 | $0.39 | $0.38 | $0.39 | $0.41(c) |
Net realized and unrealized gain (loss) | (0.33) | 0.89 | 1.19 | (0.72) | 0.33 | 0.31 |
Total from investment operations | $(0.17) | $1.25 | $1.58 | $(0.34) | $0.72 | $0.72 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.44) | $(0.45) | $(0.44) | $(0.44) | $(0.50) |
From net realized gain | — | (0.04) | — | (0.05) | — | (0.02) |
Total distributions declared to shareholders | $— | $(0.48) | $(0.45) | $(0.49) | $(0.44) | $(0.52) |
Net asset value, end of period (x) | $12.54 | $12.71 | $11.94 | $10.81 | $11.64 | $11.36 |
Total return (%) (k)(r)(s)(x) | (1.34)(n) | 10.57 | 14.65 | (3.00) | 6.39 | 6.28(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.69(a) | 0.70 | 0.69 | 0.68 | 0.68 | 0.65(c) |
Expenses after expense reductions (f) | 0.63(a) | 0.63 | 0.63 | 0.63 | 0.63 | 0.60(c) |
Net investment income (loss) | 2.62(a) | 2.90 | 3.33 | 3.44 | 3.37 | 3.52(c) |
Portfolio turnover | 30(n) | 41 | 34 | 32 | 36 | 31 |
Net assets at end of period (000 omitted) | $54,465 | $59,133 | $57,714 | $56,506 | $65,445 | $66,858 |
Service Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $12.54 | $11.78 | $10.66 | $11.49 | $11.22 | $11.03 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.14 | $0.32 | $0.35 | $0.35 | $0.36 | $0.37(c) |
Net realized and unrealized gain (loss) | (0.33) | 0.89 | 1.19 | (0.72) | 0.32 | 0.30 |
Total from investment operations | $(0.19) | $1.21 | $1.54 | $(0.37) | $0.68 | $0.67 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.41) | $(0.42) | $(0.41) | $(0.41) | $(0.46) |
From net realized gain | — | (0.04) | — | (0.05) | — | (0.02) |
Total distributions declared to shareholders | $— | $(0.45) | $(0.42) | $(0.46) | $(0.41) | $(0.48) |
Net asset value, end of period (x) | $12.35 | $12.54 | $11.78 | $10.66 | $11.49 | $11.22 |
Total return (%) (k)(r)(s)(x) | (1.52)(n) | 10.34 | 14.46 | (3.31) | 6.11 | 5.98(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.94(a) | 0.95 | 0.94 | 0.93 | 0.93 | 0.90(c) |
Expenses after expense reductions (f) | 0.88(a) | 0.88 | 0.88 | 0.88 | 0.88 | 0.85(c) |
Net investment income (loss) | 2.37(a) | 2.65 | 3.08 | 3.18 | 3.12 | 3.27(c) |
Portfolio turnover | 30(n) | 41 | 34 | 32 | 36 | 31 |
Net assets at end of period (000 omitted) | $163,204 | $169,239 | $161,833 | $154,370 | $194,337 | $188,440 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | $— | $2,511,472 | $— | $2,511,472 |
Non - U.S. Sovereign Debt | — | 2,518,015 | — | 2,518,015 |
Municipal Bonds | — | 3,109,813 | — | 3,109,813 |
U.S. Corporate Bonds | — | 155,039,773 | — | 155,039,773 |
Residential Mortgage-Backed Securities | — | 76,807 | — | 76,807 |
Commercial Mortgage-Backed Securities | — | 803,151 | — | 803,151 |
Asset-Backed Securities (including CDOs) | — | 89,249 | — | 89,249 |
Foreign Bonds | — | 47,884,626 | — | 47,884,626 |
Mutual Funds | 3,810,272 | — | — | 3,810,272 |
Total | $3,810,272 | $212,032,906 | $— | $215,843,178 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $312,218 | $— | $— | $312,218 |
Futures Contracts – Liabilities | (258,474) | — | — | (258,474) |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Interest Rate Futures | $312,218 | $(258,474) |
Risk | Futures Contracts |
Interest Rate | $(424,312) |
Risk | Futures Contracts |
Interest Rate | $107,808 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $7,393,039 |
Long-term capital gains | 300,008 |
Total distributions | $7,693,047 |
As of 6/30/21 | |
Cost of investments | $202,680,391 |
Gross appreciation | 14,104,275 |
Gross depreciation | (941,488) |
Net unrealized appreciation (depreciation) | $13,162,787 |
As of 12/31/20 | |
Undistributed ordinary income | 5,900,606 |
Undistributed long-term capital gain | 4,198,267 |
Net unrealized appreciation (depreciation) | 23,676,054 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $2,184,264 | |
Service Class | — | 5,508,783 | |
Total | $— | $7,693,047 |
Up to $1 billion | 0.60% |
In excess of $1 billion | 0.50% |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 131,503 | $1,621,890 | 512,275 | $6,356,882 | |
Service Class | 1,015,512 | 12,177,158 | 2,413,646 | 29,610,213 | |
1,147,015 | $13,799,048 | 2,925,921 | $35,967,095 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 177,294 | $2,184,264 | |
Service Class | — | — | 453,025 | 5,508,783 | |
— | $— | 630,319 | $7,693,047 | ||
Shares reacquired | |||||
Initial Class | (440,478) | $(5,444,114) | (873,200) | $(10,710,012) | |
Service Class | (1,303,832) | (15,874,318) | (3,109,400) | (36,170,139) | |
(1,744,310) | $(21,318,432) | (3,982,600) | $(46,880,151) | ||
Net change | |||||
Initial Class | (308,975) | $(3,822,224) | (183,631) | $(2,168,866) | |
Service Class | (288,320) | (3,697,160) | (242,729) | (1,051,143) | |
(597,295) | $(7,519,384) | (426,360) | $(3,220,009) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $4,930,371 | $49,999,955 | $51,120,054 | $— | $— | $3,810,272 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,712 | $— |
1 | |
2 | |
3 | |
4 | |
8 | |
9 | |
10 | |
11 | |
13 | |
19 | |
20 | |
20 | |
20 | |
20 |
Apple, Inc. | 5.6% |
Microsoft Corp. | 5.4% |
Amazon.com, Inc. | 4.2% |
Alphabet, Inc., “A” | 3.7% |
Facebook, Inc., “A” | 2.0% |
Visa, Inc., “A” | 1.7% |
Adobe Systems, Inc. | 1.6% |
Bank of America Corp. | 1.5% |
T-Mobile USA, Inc. | 1.4% |
Johnson & Johnson | 1.4% |
Technology | 32.2% |
Financial Services | 14.7% |
Capital Goods | 13.6% |
Health Care (s) | 13.6% |
Consumer Cyclicals | 12.8% |
Energy | 5.0% |
Consumer Staples | 4.4% |
Telecommunications and Cable Television (s) | 3.0% |
(k) | The sectors set forth above and the associated portfolio composition are based on MFS’ own custom sector classification methodology. |
(s) | Includes securities sold short. |
January 1, 2021 through June 30, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/21 | Ending Account Value 6/30/21 | Expenses Paid During Period (p) 1/01/21-6/30/21 | |
Initial Class | Actual | 0.84% | $1,000.00 | $1,147.78 | $4.47 |
Hypothetical (h) | 0.84% | $1,000.00 | $1,020.63 | $4.21 | |
Service Class | Actual | 1.09% | $1,000.00 | $1,146.91 | $5.80 |
Hypothetical (h) | 1.09% | $1,000.00 | $1,019.39 | $5.46 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.9% | ||||
Aerospace & Defense – 2.3% | ||||
CACI International, Inc., “A” (a) | 1,014 | $ 258,692 | ||
Curtiss-Wright Corp. | 3,461 | 411,028 | ||
Honeywell International, Inc. | 8,702 | 1,908,784 | ||
Howmet Aerospace, Inc. (a) | 14,445 | 497,919 | ||
L3Harris Technologies, Inc. | 3,219 | 695,787 | ||
Northrop Grumman Corp. | 1,355 | 492,448 | ||
Parsons Corp. (a) | 4,882 | 192,155 | ||
Raytheon Technologies Corp. | 19,338 | 1,649,725 | ||
$6,106,538 | ||||
Alcoholic Beverages – 0.3% | ||||
Constellation Brands, Inc., “A” | 3,224 | $ 754,061 | ||
Apparel Manufacturers – 0.4% | ||||
NIKE, Inc., “B” | 2,883 | $ 445,395 | ||
Skechers USA, Inc., “A” (a) | 13,114 | 653,470 | ||
$1,098,865 | ||||
Automotive – 1.0% | ||||
Aptiv PLC (a) | 6,175 | $ 971,512 | ||
LKQ Corp. (a) | 33,981 | 1,672,545 | ||
$2,644,057 | ||||
Biotechnology – 1.3% | ||||
Biogen, Inc. (a) | 2,678 | $ 927,311 | ||
Illumina, Inc. (a) | 1,576 | 745,779 | ||
Vertex Pharmaceuticals, Inc. (a) | 8,775 | 1,769,303 | ||
$3,442,393 | ||||
Broadcasting – 0.5% | ||||
Discovery Communications, Inc., “C” (a) | 7,968 | $ 230,913 | ||
Netflix, Inc. (a) | 1,968 | 1,039,517 | ||
$1,270,430 | ||||
Brokerage & Asset Managers – 1.7% | ||||
Cboe Global Markets, Inc. | 8,413 | $ 1,001,568 | ||
Charles Schwab Corp. | 28,781 | 2,095,544 | ||
Invesco Ltd. | 50,112 | 1,339,494 | ||
$4,436,606 | ||||
Business Services – 2.8% | ||||
Accenture PLC, “A” | 2,952 | $ 870,220 | ||
Amdocs Ltd. | 7,063 | 546,394 | ||
Clarivate PLC (a) | 39,903 | 1,098,530 | ||
Fidelity National Information Services, Inc. | 7,439 | 1,053,883 | ||
Fiserv, Inc. (a) | 7,616 | 814,074 | ||
Global Payments, Inc. | 4,381 | 821,613 | ||
PayPal Holdings, Inc. (a) | 8,184 | 2,385,472 | ||
$7,590,186 | ||||
Cable TV – 1.1% | ||||
Cable One, Inc. | 142 | $ 271,619 | ||
Liberty Broadband Corp. (a) | 15,781 | 2,740,528 | ||
$3,012,147 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Chemicals – 0.5% | ||||
Element Solutions, Inc. | 37,906 | $ 886,242 | ||
FMC Corp. | 3,459 | 374,264 | ||
$1,260,506 | ||||
Computer Software – 10.5% | ||||
Adobe Systems, Inc. (a) | 7,442 | $ 4,358,333 | ||
Atlassian Corp. PLC, “A” (a) | 7,408 | 1,902,819 | ||
Cadence Design Systems, Inc. (a) | 13,987 | 1,913,702 | ||
Dragoneer Growth Opportunities Corp. (SPAC) (a) | 56,268 | 560,429 | ||
Eventbrite, Inc. (a) | 38,913 | 739,347 | ||
Everbridge, Inc. (a) | 6,223 | 846,826 | ||
Microsoft Corp. (s) | 53,748 | 14,560,333 | ||
Ping Identity Holding Corp. (a) | 12,519 | 286,685 | ||
salesforce.com, inc. (a) | 12,408 | 3,030,902 | ||
$28,199,376 | ||||
Computer Software - Systems – 8.3% | ||||
Apple, Inc. (s) | 109,838 | $ 15,043,412 | ||
EPAM Systems, Inc. (a) | 1,900 | 970,824 | ||
Rapid7, Inc. (a) | 7,416 | 701,776 | ||
ServiceNow, Inc. (a) | 2,950 | �� 1,621,173 | ||
Square, Inc., “A” (a) | 4,394 | 1,071,257 | ||
TransUnion | 14,924 | 1,638,804 | ||
Zebra Technologies Corp., “A” (a) | 2,014 | 1,066,393 | ||
$22,113,639 | ||||
Construction – 1.6% | ||||
AvalonBay Communities, Inc., REIT | 4,081 | $ 851,664 | ||
AZEK Co. LLC (a) | 11,878 | 504,340 | ||
D.R. Horton, Inc. | 2,369 | 214,087 | ||
Masco Corp. | 15,271 | 899,615 | ||
Otis Worldwide Corp. | 7,481 | 611,721 | ||
Sherwin-Williams Co. | 1,410 | 384,154 | ||
Vulcan Materials Co. | 4,046 | 704,287 | ||
$4,169,868 | ||||
Consumer Products – 1.3% | ||||
Colgate-Palmolive Co. | 13,651 | $ 1,110,509 | ||
International Flavors & Fragrances, Inc. | 3,143 | 469,564 | ||
Kimberly-Clark Corp. | 6,439 | 861,409 | ||
Procter & Gamble Co. | 8,217 | 1,108,720 | ||
$3,550,202 | ||||
Consumer Services – 0.8% | ||||
Bright Horizons Family Solutions, Inc. (a) | 3,608 | $ 530,773 | ||
Grand Canyon Education, Inc. (a) | 8,725 | 784,988 | ||
Uber Technologies, Inc. (a) | 17,700 | 887,124 | ||
$2,202,885 | ||||
Containers – 0.3% | ||||
Ball Corp. | 8,686 | $ 703,740 | ||
Electrical Equipment – 1.1% | ||||
AMETEK, Inc. | 5,348 | $ 713,958 | ||
Amphenol Corp., “A” | 1,839 | 125,806 | ||
Johnson Controls International PLC | 10,108 | 693,712 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Electrical Equipment – continued | ||||
Sensata Technologies Holding PLC (a) | 20,044 | $ 1,161,951 | ||
TE Connectivity Ltd. | 2,629 | 355,467 | ||
$3,050,894 | ||||
Electronics – 4.3% | ||||
Advanced Micro Devices (a) | 15,221 | $ 1,429,709 | ||
Applied Materials, Inc. | 16,845 | 2,398,728 | ||
Broadcom, Inc. | 4,374 | 2,085,698 | ||
Intel Corp. | 25,187 | 1,413,998 | ||
Lam Research Corp. | 2,191 | 1,425,684 | ||
Monolithic Power Systems, Inc. | 1,503 | 561,295 | ||
NXP Semiconductors N.V. | 2,384 | 490,437 | ||
Silicon Laboratories, Inc. (a) | 1,453 | 222,672 | ||
Texas Instruments, Inc. | 8,081 | 1,553,976 | ||
$11,582,197 | ||||
Energy - Independent – 0.9% | ||||
ConocoPhillips | 14,822 | $ 902,660 | ||
Diamondback Energy, Inc. | 5,770 | 541,745 | ||
Pioneer Natural Resources Co. | 3,180 | 516,814 | ||
Valero Energy Corp. | 6,961 | 543,515 | ||
$2,504,734 | ||||
Energy - Integrated – 0.8% | ||||
Chevron Corp. | 20,355 | $ 2,131,983 | ||
Engineering - Construction – 0.3% | ||||
APi Group, Inc. (a) | 26,046 | $ 544,101 | ||
Comfort Systems USA, Inc. | 2,550 | 200,914 | ||
$745,015 | ||||
Food & Beverages – 2.3% | ||||
Archer Daniels Midland Co. | 11,869 | $ 719,261 | ||
Coca-Cola Co. | 7,207 | 389,971 | ||
Coca-Cola Europacific Partners PLC | 6,851 | 406,401 | ||
Hostess Brands, Inc. (a) | 23,162 | 374,993 | ||
J.M. Smucker Co. | 2,961 | 383,657 | ||
Mondelez International, Inc. | 25,427 | 1,587,662 | ||
Nomad Foods Ltd. (a) | 19 | 537 | ||
Oatly Group AB, ADR (a) | 11,747 | 287,332 | ||
PepsiCo, Inc. | 13,430 | 1,989,923 | ||
$6,139,737 | ||||
Food & Drug Stores – 1.0% | ||||
Wal-Mart Stores, Inc. | 18,996 | $ 2,678,816 | ||
Forest & Paper Products – 0.5% | ||||
Rayonier, Inc., REIT | 34,528 | $ 1,240,591 | ||
Gaming & Lodging – 0.6% | ||||
Marriott International, Inc., “A” (a) | 5,822 | $ 794,819 | ||
Penn National Gaming, Inc. (a) | 2,022 | 154,663 | ||
Wyndham Hotels & Resorts, Inc. | 9,240 | 667,960 | ||
$1,617,442 | ||||
General Merchandise – 0.9% | ||||
Dollar General Corp. | 10,730 | $ 2,321,865 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Health Maintenance Organizations – 1.5% | ||||
Cigna Corp. | 10,297 | $ 2,441,110 | ||
Humana, Inc. | 3,582 | 1,585,823 | ||
$4,026,933 | ||||
Insurance – 3.2% | ||||
Aon PLC | 11,200 | $ 2,674,112 | ||
Arthur J. Gallagher & Co. | 9,533 | 1,335,383 | ||
Assurant, Inc. | 4,978 | 777,464 | ||
Chubb Ltd. | 8,236 | 1,309,030 | ||
Everest Re Group Ltd. | 1,581 | 398,428 | ||
Hartford Financial Services Group, Inc. | 13,320 | 825,440 | ||
MetLife, Inc. | 10,983 | 657,332 | ||
Reinsurance Group of America, Inc. | 3,310 | 377,340 | ||
SiriusPoint Ltd. (a) | 28,165 | 283,622 | ||
$8,638,151 | ||||
Internet – 5.7% | ||||
Alphabet, Inc., “A” (a) | 4,047 | $ 9,881,924 | ||
Facebook, Inc., “A” (a) | 15,230 | 5,295,623 | ||
$15,177,547 | ||||
Leisure & Toys – 0.8% | ||||
Electronic Arts, Inc. | 11,702 | $ 1,683,099 | ||
Roblox Corp., “A” (a) | 5,786 | 520,624 | ||
$2,203,723 | ||||
Machinery & Tools – 2.5% | ||||
Caterpillar, Inc. | 4,515 | $ 982,599 | ||
Eaton Corp. PLC | 6,745 | 999,474 | ||
IDEX Corp. | 1,898 | 417,655 | ||
Ingersoll Rand, Inc. (a) | 17,121 | 835,676 | ||
PACCAR, Inc. | 9,610 | 857,693 | ||
Regal Beloit Corp. | 4,492 | 599,727 | ||
Roper Technologies, Inc. | 2,863 | 1,346,183 | ||
Trane Technologies PLC | 3,965 | 730,115 | ||
$6,769,122 | ||||
Major Banks – 3.7% | ||||
Bank of America Corp. | 97,734 | $ 4,029,573 | ||
Goldman Sachs Group, Inc. | 8,971 | 3,404,764 | ||
PNC Financial Services Group, Inc. | 13,220 | 2,521,847 | ||
$9,956,184 | ||||
Medical & Health Technology & Services – 2.0% | ||||
Guardant Health, Inc. (a) | 1,841 | $ 228,634 | ||
ICON PLC (a) | 13,890 | 2,871,202 | ||
IDEXX Laboratories, Inc. (a) | 422 | 266,514 | ||
LifeStance Health Group, Inc. (a) | 16,500 | 459,690 | ||
McKesson Corp. | 8,167 | 1,561,857 | ||
$5,387,897 | ||||
Medical Equipment – 4.5% | ||||
Align Technology, Inc. (a) | 1,061 | $ 648,271 | ||
Becton, Dickinson and Co. | 6,098 | 1,482,973 | ||
Boston Scientific Corp. (a) | 40,443 | 1,729,343 | ||
Danaher Corp. | 5,442 | 1,460,415 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 23,985 | 1,000,894 | ||
Medtronic PLC | 19,434 | 2,412,342 | ||
PerkinElmer, Inc. | 5,622 | 868,093 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Medical Equipment – continued | ||||
Quidel Corp. (a) | 5,700 | $ 730,284 | ||
STERIS PLC | 8,793 | 1,813,996 | ||
$12,146,611 | ||||
Natural Gas - Pipeline – 0.3% | ||||
Cheniere Energy, Inc. (a) | 3,808 | $ 330,306 | ||
Enterprise Products Partners LP | 19,795 | 477,653 | ||
$807,959 | ||||
Network & Telecom – 0.5% | ||||
Equinix, Inc., REIT | 1,803 | $ 1,447,088 | ||
Oil Services – 0.5% | ||||
Cactus, Inc., “A” | 10,315 | $ 378,767 | ||
ChampionX Corp. (a) | 35,512 | 910,883 | ||
$1,289,650 | ||||
Other Banks & Diversified Financials – 4.5% | ||||
American Express Co. | 6,895 | $ 1,139,261 | ||
Bank OZK | 18,014 | 759,470 | ||
Moody's Corp. | 2,929 | 1,061,382 | ||
Northern Trust Corp. | 6,309 | 729,447 | ||
SVB Financial Group (a) | 714 | 397,291 | ||
Truist Financial Corp. | 38,533 | 2,138,581 | ||
U.S. Bancorp | 15,997 | 911,349 | ||
United Community Bank, Inc. | 6,788 | 217,284 | ||
Visa, Inc., “A” | 19,840 | 4,638,989 | ||
$11,993,054 | ||||
Pharmaceuticals – 4.7% | ||||
Eli Lilly & Co. | 10,140 | $ 2,327,333 | ||
Johnson & Johnson | 23,187 | 3,819,826 | ||
Merck & Co., Inc. | 42,703 | 3,321,012 | ||
Organon & Co. (a) | 21,100 | 638,486 | ||
Zoetis, Inc. | 13,183 | 2,456,784 | ||
$12,563,441 | ||||
Pollution Control – 0.3% | ||||
GFL Environmental, Inc. | 19,789 | $ 631,665 | ||
U.S. Ecology, Inc. (a) | 4,888 | 183,398 | ||
$815,063 | ||||
Printing & Publishing – 0.1% | ||||
Warner Music Group Corp. | 6,708 | $ 241,756 | ||
Railroad & Shipping – 1.3% | ||||
Canadian Pacific Railway Ltd. | 21,315 | $ 1,639,337 | ||
Kansas City Southern Co. | 6,717 | 1,903,396 | ||
$3,542,733 | ||||
Real Estate – 1.3% | ||||
Broadstone Net Lease, Inc. | 24,872 | $ 582,253 | ||
Empire State Realty Trust, REIT, “A” | 46,693 | 560,316 | ||
Extra Space Storage, Inc., REIT | 4,960 | 812,547 | ||
Lexington Realty Trust, REIT | 27,814 | 332,377 | ||
STORE Capital Corp., REIT | 22,223 | 766,916 | ||
Sun Communities, Inc., REIT | 1,847 | 316,576 | ||
$3,370,985 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Real Estate - Other – 0.3% | ||||
EPR Properties, REIT (a) | 16,194 | $ 853,100 | ||
Restaurants – 1.2% | ||||
Performance Food Group Co. (a) | 7,169 | $ 347,625 | ||
Starbucks Corp. | 18,267 | 2,042,433 | ||
Wendy's Co. | 33,712 | 789,535 | ||
$3,179,593 | ||||
Specialty Chemicals – 1.9% | ||||
Air Products & Chemicals, Inc. | 2,530 | $ 727,830 | ||
Ashland Global Holdings, Inc. | 7,284 | 637,350 | ||
Atotech, Ltd. (a) | 22,378 | 571,310 | ||
Avient Corp. | 13,601 | 668,625 | ||
Axalta Coating Systems Ltd. (a) | 21,104 | 643,461 | ||
Diversey Holdings Ltd. (a) | 34,439 | 616,803 | ||
DuPont de Nemours, Inc. | 10,775 | 834,093 | ||
Univar Solutions, Inc. (a) | 14,434 | 351,901 | ||
$5,051,373 | ||||
Specialty Stores – 6.5% | ||||
Amazon.com, Inc. (a)(s) | 3,266 | $ 11,235,562 | ||
Burlington Stores, Inc. (a) | 2,116 | 681,331 | ||
Farfetch Ltd., “A” (a) | 12,896 | 649,443 | ||
Home Depot, Inc. | 10,794 | 3,442,099 | ||
Petco Health & Wellness Co., Inc. (a) | 18,540 | 415,481 | ||
Ross Stores, Inc. | 5,880 | 729,120 | ||
ThredUp, Inc. (a) | 2,983 | 86,746 | ||
Urban Outfitters, Inc. (a) | 6,836 | 281,780 | ||
$17,521,562 | ||||
Telecommunications - Wireless – 2.1% | ||||
SBA Communications Corp., REIT | 5,280 | $ 1,682,736 | ||
T-Mobile USA, Inc. (a) | 26,558 | 3,846,395 | ||
$5,529,131 | ||||
Tobacco – 0.5% | ||||
Philip Morris International, Inc. | 12,350 | $ 1,224,008 | ||
Trucking – 0.1% | ||||
J.B. Hunt Transport Services, Inc. | 2,434 | $ 396,620 | ||
Utilities - Electric Power – 2.5% | ||||
American Electric Power Co., Inc. | 7,504 | $ 634,763 | ||
CenterPoint Energy, Inc. | 30,509 | 748,081 | ||
DTE Energy Co. | 2,719 | 352,382 | ||
Duke Energy Corp. | 4,493 | 443,549 | ||
Evergy, Inc. | 7,565 | 457,153 | ||
Exelon Corp. | 15,819 | 700,940 | ||
NextEra Energy, Inc. | 21,416 | 1,569,365 | ||
PG&E Corp. (a) | 50,087 | 509,385 | ||
Pinnacle West Capital Corp. | 3,794 | 310,994 | ||
Southern Co. | 8,189 | 495,516 | ||
Xcel Energy, Inc. | 8,411 | 554,117 | ||
$6,776,245 | ||||
Total Common Stocks (Identified Cost, $157,450,811) | $ 267,478,302 |
Issuer | Shares/Par | Value ($) | ||
Investment Companies (h) – 0.8% | ||||
Money Market Funds – 0.8% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $2,219,319) | 2,219,319 | $ 2,219,319 | ||
Securities Sold Short – (0.6)% | ||||
Medical & Health Technology & Services – (0.4)% | ||||
Healthcare Services Group, Inc. | (36,581) | $ (1,154,862) | ||
Telecommunications - Wireless – (0.2)% | ||||
Crown Castle International Corp., REIT | (2,286) | $ (445,999) | ||
Total Securities Sold Short (Proceeds Received, $1,340,382) | $ (1,600,861) | |||
Other Assets, Less Liabilities – (0.1)% | (343,948) | |||
Net Assets – 100.0% | $ 267,752,812 |
(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 $2,219,319 and $267,478,302, respectively. | |||
(s) | Security or a portion of the security was pledged to cover collateral requirements for securities sold short. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
SPAC | Special Purpose Acquisition Company |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $157,450,811) | $267,478,302 |
Investments in affiliated issuers, at value (identified cost, $2,219,319) | 2,219,319 |
Cash | 2,333 |
Deposits with brokers for | |
Securities sold short | 31,450 |
Receivables for | |
Investments sold | 290,519 |
Fund shares sold | 307,642 |
Dividends | 166,739 |
Other assets | 1,184 |
Total assets | $270,497,488 |
Liabilities | |
Payables for | |
Securities sold short, at value (proceeds received, $1,340,382) | $1,600,861 |
Investments purchased | 671,449 |
Fund shares reacquired | 392,050 |
Payable to affiliates | |
Investment adviser | 10,820 |
Administrative services fee | 251 |
Shareholder servicing costs | 107 |
Distribution and/or service fees | 956 |
Accrued expenses and other liabilities | 68,182 |
Total liabilities | $2,744,676 |
Net assets | $267,752,812 |
Net assets consist of | |
Paid-in capital | $125,877,897 |
Total distributable earnings (loss) | 141,874,915 |
Net assets | $267,752,812 |
Shares of beneficial interest outstanding | 8,398,810 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $197,965,613 | 6,185,905 | $32.00 |
Service Class | 69,787,199 | 2,212,905 | 31.54 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $1,427,408 |
Other | 8,296 |
Dividends from affiliated issuers | 5,436 |
Income on securities loaned | 20 |
Foreign taxes withheld | (1,797) |
Total investment income | $1,439,363 |
Expenses | |
Management fee | $928,444 |
Distribution and/or service fees | 75,760 |
Shareholder servicing costs | 9,660 |
Administrative services fee | 21,326 |
Independent Trustees' compensation | 2,673 |
Custodian fee | 5,128 |
Shareholder communications | 13,559 |
Audit and tax fees | 29,292 |
Legal fees | 1,339 |
Dividend and interest expense on securities sold short | 27,444 |
Interest expense and fees | 434 |
Miscellaneous | 15,101 |
Total expenses | $1,130,160 |
Reduction of expenses by investment adviser | (14,820) |
Net expenses | $1,115,340 |
Net investment income (loss) | $324,023 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $11,685,721 |
Securities sold short | (325,119) |
Foreign currency | 45 |
Net realized gain (loss) | $11,360,647 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $22,608,176 |
Securities sold short | (24,231) |
Translation of assets and liabilities in foreign currencies | (19) |
Net unrealized gain (loss) | $22,583,926 |
Net realized and unrealized gain (loss) | $33,944,573 |
Change in net assets from operations | $34,268,596 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/21 (unaudited) | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $324,023 | $1,048,577 |
Net realized gain (loss) | 11,360,647 | 19,666,571 |
Net unrealized gain (loss) | 22,583,926 | 16,236,950 |
Change in net assets from operations | $34,268,596 | $36,952,098 |
Total distributions to shareholders | $— | $(11,731,291) |
Change in net assets from fund share transactions | $1,095,192 | $(7,064,004) |
Total change in net assets | $35,363,788 | $18,156,803 |
Net assets | ||
At beginning of period | 232,389,024 | 214,232,221 |
At end of period | $267,752,812 | $232,389,024 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $27.88 | $24.81 | $21.68 | $25.21 | $21.67 | $21.28 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.05 | $0.14 | $0.18 | $0.20 | $0.17 | $0.21(c) |
Net realized and unrealized gain (loss) | 4.07 | 4.38 | 6.59 | (0.78) | 5.04 | 2.16 |
Total from investment operations | $4.12 | $4.52 | $6.77 | $(0.58) | $5.21 | $2.37 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.18) | $(0.21) | $(0.18) | $(0.23) | $(0.17) |
From net realized gain | — | (1.27) | (3.43) | (2.77) | (1.44) | (1.81) |
Total distributions declared to shareholders | $— | $(1.45) | $(3.64) | $(2.95) | $(1.67) | $(1.98) |
Net asset value, end of period (x) | $32.00 | $27.88 | $24.81 | $21.68 | $25.21 | $21.67 |
Total return (%) (k)(r)(s)(x) | 14.78(n) | 18.71 | 33.19 | (3.83) | 24.82 | 11.38(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.85(a) | 0.87 | 0.88 | 0.87 | 0.87 | 0.84(c) |
Expenses after expense reductions (f) | 0.84(a) | 0.86 | 0.87 | 0.86 | 0.86 | 0.82(c) |
Net investment income (loss) | 0.32(a) | 0.56 | 0.75 | 0.79 | 0.72 | 1.00(c) |
Portfolio turnover | 19(n) | 46 | 37 | 40 | 39 | 60 |
Net assets at end of period (000 omitted) | $197,966 | $177,571 | $167,488 | $144,991 | $171,038 | $156,040 |
Supplemental Ratios (%): | ||||||
Ratios of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees (f) | 0.82(a) | 0.83 | 0.83 | 0.83 | 0.84 | 0.80(c) |
Service Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $27.50 | $24.50 | $21.44 | $24.96 | $21.47 | $21.10 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.01 | $0.08 | $0.12 | $0.14 | $0.11 | $0.16(c) |
Net realized and unrealized gain (loss) | 4.03 | 4.31 | 6.51 | (0.78) | 4.99 | 2.13 |
Total from investment operations | $4.04 | $4.39 | $6.63 | $(0.64) | $5.10 | $2.29 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.12) | $(0.14) | $(0.11) | $(0.17) | $(0.11) |
From net realized gain | — | (1.27) | (3.43) | (2.77) | (1.44) | (1.81) |
Total distributions declared to shareholders | $— | $(1.39) | $(3.57) | $(2.88) | $(1.61) | $(1.92) |
Net asset value, end of period (x) | $31.54 | $27.50 | $24.50 | $21.44 | $24.96 | $21.47 |
Total return (%) (k)(r)(s)(x) | 14.69(n) | 18.39 | 32.87 | (4.07) | 24.50 | 11.07(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.10(a) | 1.12 | 1.13 | 1.12 | 1.12 | 1.09(c) |
Expenses after expense reductions (f) | 1.09(a) | 1.11 | 1.12 | 1.11 | 1.11 | 1.07(c) |
Net investment income (loss) | 0.08(a) | 0.32 | 0.50 | 0.54 | 0.47 | 0.75(c) |
Portfolio turnover | 19(n) | 46 | 37 | 40 | 39 | 60 |
Net assets at end of period (000 omitted) | $69,787 | $54,818 | $46,744 | $41,195 | $46,453 | $42,883 |
Supplemental Ratios (%): | ||||||
Ratios of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees (f) | 1.07(a) | 1.08 | 1.08 | 1.08 | 1.09 | 1.06(c) |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. Excluding the effect of the proceeds received from a non-recurring litigation settlement against Household International, Inc., the total return for the year ended December 31, 2017 would have been lower by approximately 0.78%. |
(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 | $267,478,302 | $— | $— | $267,478,302 |
Mutual Funds | 2,219,319 | — | — | 2,219,319 |
Total | $269,697,621 | $— | $— | $269,697,621 |
Securities Sold Short | $(1,600,861) | $— | $— | $(1,600,861) |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $3,863,247 |
Long-term capital gains | 7,868,044 |
Total distributions | $11,731,291 |
As of 6/30/21 | |
Cost of investments | $160,190,593 |
Gross appreciation | 110,894,263 |
Gross depreciation | (1,387,235) |
Net unrealized appreciation (depreciation) | $109,507,028 |
As of 12/31/20 | |
Undistributed ordinary income | 2,101,522 |
Undistributed long-term capital gain | 18,669,766 |
Other temporary differences | 172,427 |
Net unrealized appreciation (depreciation) | 86,662,604 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $9,114,275 | |
Service Class | — | 2,617,016 | |
Total | $— | $11,731,291 |
Up to $1 billion | 0.75% |
In excess of $1 billion and up to $2.5 billion | 0.65% |
In excess of $2.5 billion | 0.60% |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 394,454 | $11,888,071 | 328,117 | $8,057,874 | |
Service Class | 459,070 | 13,688,409 | 404,275 | 9,377,983 | |
853,524 | $25,576,480 | 732,392 | $17,435,857 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 354,090 | $9,114,275 | |
Service Class | — | — | 102,951 | 2,617,016 | |
— | $— | 457,041 | $11,731,291 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares reacquired | |||||
Initial Class | (578,420) | $(17,460,148) | (1,063,282) | $(26,098,196) | |
Service Class | (239,207) | (7,021,140) | (422,060) | (10,132,956) | |
(817,627) | $(24,481,288) | (1,485,342) | $(36,231,152) | ||
Net change | |||||
Initial Class | (183,966) | $(5,572,077) | (381,075) | $(8,926,047) | |
Service Class | 219,863 | 6,667,269 | 85,166 | 1,862,043 | |
35,897 | $1,095,192 | (295,909) | $(7,064,004) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $1,489,118 | $30,541,316 | $29,811,115 | $— | $— | $2,219,319 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $5,436 | $— |
Equity Portfolio
1 | |
2 | |
3 | |
4 | |
6 | |
7 | |
8 | |
9 | |
11 | |
17 | |
18 | |
18 | |
18 | |
18 |
Taiwan Semiconductor Manufacturing Co. Ltd. | 8.5% |
Samsung Electronics Co. Ltd. | 6.6% |
Alibaba Group Holding Ltd., ADR | 6.0% |
Tencent Holdings Ltd. | 3.9% |
Prosus N.V. | 3.6% |
Sberbank of Russia | 2.9% |
Yum China Holdings, Inc. | 2.8% |
NetEase.com, Inc., ADR | 2.5% |
AIA Group Ltd. | 2.4% |
Tata Consultancy Services Ltd. | 2.4% |
Consumer Discretionary | 20.5% |
Financials | 19.6% |
Information Technology | 19.1% |
Communication Services | 11.5% |
Consumer Staples | 10.8% |
Materials | 6.7% |
Industrials | 3.9% |
Energy | 2.7% |
Real Estate | 2.5% |
Health Care | 1.4% |
Utilities | 0.3% |
China | 28.4% |
South Korea | 13.3% |
India | 10.4% |
Taiwan | 10.2% |
Russia | 7.9% |
Brazil | 6.3% |
Hong Kong | 5.7% |
Netherlands | 3.6% |
Mexico | 2.6% |
Other Countries | 11.6% |
Hong Kong Dollar | 24.0% |
South Korean Won | 13.3% |
Taiwan Dollar | 10.2% |
Indian Rupee | 9.2% |
Russian Ruble | 7.4% |
Chinese Renminbi | 7.3% |
Brazilian Real | 6.3% |
United States Dollar | 5.7% |
Euro | 5.5% |
Other Currencies | 11.1% |
(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 the portfolio’s net assets. For purposes of this presentation, United States (included in Other Countries) 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. |
January 1, 2021 through June 30, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/21 | Ending Account Value 6/30/21 | Expenses Paid During Period (p) 1/01/21-6/30/21 | |
Initial Class | Actual | 1.23% | $1,000.00 | $1,048.61 | $6.25 |
Hypothetical (h) | 1.23% | $1,000.00 | $1,018.70 | $6.16 | |
Service Class | Actual | 1.48% | $1,000.00 | $1,047.06 | $7.51 |
Hypothetical (h) | 1.48% | $1,000.00 | $1,017.46 | $7.40 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.0% | ||||
Airlines – 0.6% | ||||
Shanghai International Air Co., Ltd. | 40,500 | $ 301,676 | ||
Alcoholic Beverages – 4.4% | ||||
Ambev S.A., ADR | 195,211 | $ 671,526 | ||
China Resources Beer Holdings Co. Ltd. | 76,000 | 682,740 | ||
Kweichow Moutai Co. Ltd., “A” | 2,500 | 795,758 | ||
$2,150,024 | ||||
Automotive – 3.6% | ||||
Hero MotoCorp Ltd. | 9,708 | $ 379,099 | ||
Mahindra & Mahindra Ltd. | 72,459 | 758,124 | ||
PT United Tractors Tbk | 444,400 | 620,628 | ||
$1,757,851 | ||||
Biotechnology – 0.8% | ||||
Hugel, Inc. (a) | 1,900 | $ 404,245 | ||
Brokerage & Asset Managers – 2.7% | ||||
B3 Brasil Bolsa Balcao S.A. | 159,800 | $ 540,399 | ||
Moscow Exchange MICEX-RTS PJSC | 325,017 | 758,662 | ||
$1,299,061 | ||||
Business Services – 2.4% | ||||
Tata Consultancy Services Ltd. | 25,365 | $ 1,141,732 | ||
Chemicals – 1.4% | ||||
UPL Ltd. | 63,561 | $ 677,981 | ||
Computer Software - Systems – 7.8% | ||||
Hon Hai Precision Industry Co. Ltd. | 142,000 | $ 570,803 | ||
Samsung Electronics Co. Ltd. | 44,351 | 3,178,196 | ||
$3,748,999 | ||||
Construction – 3.2% | ||||
Gree Electric Appliances, Inc. | 128,600 | $ 1,036,928 | ||
Techtronic Industries Co. Ltd. | 30,000 | 523,937 | ||
$1,560,865 | ||||
Consumer Services – 3.1% | ||||
51job, Inc., ADR (a) | 8,828 | $ 686,554 | ||
MakeMyTrip Ltd. (a) | 19,146 | 575,337 | ||
New Oriental Education & Technology Group, Inc. (a) | 27,714 | 226,978 | ||
$1,488,869 | ||||
Electronics – 8.5% | ||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 191,258 | $ 4,084,289 | ||
Energy - Integrated – 1.4% | ||||
LUKOIL PJSC, ADR | 7,346 | $ 680,387 | ||
Engineering - Construction – 0.8% | ||||
Doosan Bobcat, Inc. (a) | 9,078 | $ 386,932 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Food & Beverages – 4.5% | ||||
Gruma S.A.B. de C.V. | 36,453 | $ 407,449 | ||
Inner Mongolia Yili Industrial Group Co. Ltd., “A” | 125,541 | 715,579 | ||
Orion Corp. | 5,552 | 584,213 | ||
Tingyi (Cayman Islands) Holding Corp. | 228,000 | 455,160 | ||
$2,162,401 | ||||
Forest & Paper Products – 0.7% | ||||
Suzano S.A. (a) | 26,300 | $ 316,258 | ||
Gaming & Lodging – 0.5% | ||||
Kangwon Land, Inc. (a) | 10,506 | $ 250,954 | ||
General Merchandise – 3.0% | ||||
Bim Birlesik Magazalar A.S. | 52,634 | $ 375,709 | ||
Lojas Renner S.A. | 75,852 | 674,521 | ||
Walmart de Mexico S.A.B. de C.V. | 126,783 | 413,854 | ||
$1,464,084 | ||||
Insurance – 5.4% | ||||
AIA Group Ltd. | 92,000 | $ 1,143,438 | ||
Ping An Insurance Co. of China Ltd., “H” | 81,000 | 793,381 | ||
Samsung Fire & Marine Insurance Co. Ltd. | 3,319 | 649,860 | ||
$2,586,679 | ||||
Internet – 14.4% | ||||
Alibaba Group Holding Ltd., ADR (a) | 12,823 | $ 2,908,000 | ||
NAVER Corp. | 2,597 | 962,791 | ||
NetEase.com, Inc., ADR | 10,415 | 1,200,329 | ||
Tencent Holdings Ltd. | 24,800 | 1,865,358 | ||
$6,936,478 | ||||
Leisure & Toys – 3.6% | ||||
Prosus N.V. | 17,941 | $ 1,754,429 | ||
Major Banks – 2.3% | ||||
ABSA Group Ltd. (a) | 44,944 | $ 427,157 | ||
China Construction Bank Corp. | 876,670 | 689,882 | ||
$1,117,039 | ||||
Metals & Mining – 2.3% | ||||
Alrosa PJSC | 213,790 | $ 392,877 | ||
Lundin Mining Corp. | 26,418 | 238,265 | ||
Vale S.A., ADR | 20,924 | 477,276 | ||
$1,108,418 | ||||
Network & Telecom – 0.5% | ||||
VTech Holdings Ltd. | 22,400 | $ 235,849 | ||
Other Banks & Diversified Financials – 9.2% | ||||
Banco de Chile | 2,327,818 | $ 229,774 | ||
Credicorp Ltd. (a) | 2,454 | 297,204 | ||
E.Sun Financial Holding Co. Ltd. | 265,769 | 250,865 | ||
Grupo Financiero Inbursa S.A. de C.V. (a) | 170,624 | 168,792 | ||
HDFC Bank Ltd. | 25,005 | 503,901 | ||
Housing Development Finance Corp. Ltd. | 25,646 | 854,033 | ||
Komercni Banka A.S. (a) | 9,804 | 345,085 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Other Banks & Diversified Financials – continued | ||||
Public Bank Berhad | 138,800 | $ 137,413 | ||
Sberbank of Russia | 336,423 | 1,406,375 | ||
Tisco Financial Group PLC | 85,500 | 236,092 | ||
$4,429,534 | ||||
Pharmaceuticals – 0.6% | ||||
Genomma Lab Internacional S.A., “B” (a) | 269,576 | $ 278,177 | ||
Precious Metals & Minerals – 1.6% | ||||
Gold Fields Ltd., ADR | 58,748 | $ 522,857 | ||
Polymetal International PLC | 11,677 | 251,095 | ||
$773,952 | ||||
Real Estate – 2.5% | ||||
ESR Cayman Ltd. (a) | 123,800 | $ 417,753 | ||
Hang Lung Properties Ltd. | 104,000 | 252,623 | ||
Multiplan Empreendimentos Imobiliarios S.A. | 80,111 | 378,505 | ||
Swire Properties Ltd. | 56,000 | 166,969 | ||
$1,215,850 | ||||
Restaurants – 2.8% | ||||
Yum China Holdings, Inc. | 20,254 | $ 1,341,828 | ||
Specialty Chemicals – 0.8% | ||||
PTT Global Chemical PLC | 197,600 | $ 363,757 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Telecommunications - Wireless – 0.7% | ||||
Mobile TeleSystems PJSC, ADR | 36,692 | $ 339,768 | ||
Telephone Services – 2.4% | ||||
Hellenic Telecommunications Organization S.A. | 54,671 | $ 917,290 | ||
PT Telekom Indonesia | 1,134,800 | 246,525 | ||
$1,163,815 | ||||
Tobacco – 0.2% | ||||
PT Hanjaya Mandala Sampoerna Tbk | 1,272,450 | $ 106,623 | ||
Utilities - Electric Power – 0.3% | ||||
CESC Ltd. | 14,042 | $ 145,445 | ||
Total Common Stocks (Identified Cost, $30,404,943) | $47,774,249 | |||
Investment Companies (h) – 1.1% | ||||
Money Market Funds – 1.1% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $553,741) | 553,741 | $ 553,741 | ||
Other Assets, Less Liabilities – (0.1)% | (46,793) | |||
Net Assets – 100.0% | $48,281,197 |
(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 $553,741 and $47,774,249, respectively. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $30,404,943) | $47,774,249 |
Investments in affiliated issuers, at value (identified cost, $553,741) | 553,741 |
Cash | 29,590 |
Foreign currency, at value (identified cost, $9) | 8 |
Receivables for | |
Investments sold | 82,559 |
Fund shares sold | 3,196 |
Dividends | 119,130 |
Receivable from investment adviser | 10,442 |
Other assets | 437 |
Total assets | $48,573,352 |
Liabilities | |
Payables for | |
Investments purchased | $37,637 |
Fund shares reacquired | 47,953 |
Payable to affiliates | |
Administrative services fee | 96 |
Shareholder servicing costs | 43 |
Distribution and/or service fees | 357 |
Deferred country tax expense payable | 109,909 |
Accrued expenses and other liabilities | 96,160 |
Total liabilities | $292,155 |
Net assets | $48,281,197 |
Net assets consist of | |
Paid-in capital | $28,450,595 |
Total distributable earnings (loss) | 19,830,602 |
Net assets | $48,281,197 |
Shares of beneficial interest outstanding | 2,690,429 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $22,320,264 | 1,231,877 | $18.12 |
Service Class | 25,960,933 | 1,458,552 | 17.80 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $648,429 |
Other | 5,827 |
Dividends from affiliated issuers | 222 |
Foreign taxes withheld | (81,495) |
Total investment income | $572,983 |
Expenses | |
Management fee | $246,034 |
Distribution and/or service fees | 32,365 |
Shareholder servicing costs | 4,022 |
Administrative services fee | 8,679 |
Independent Trustees' compensation | 1,511 |
Custodian fee | 47,287 |
Shareholder communications | 5,049 |
Audit and tax fees | 40,011 |
Legal fees | 192 |
Miscellaneous | 11,697 |
Total expenses | $396,847 |
Reduction of expenses by investment adviser | (75,987) |
Net expenses | $320,860 |
Net investment income (loss) | $252,123 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers (net of $4,054 country tax) | $2,899,588 |
Foreign currency | (4,060) |
Net realized gain (loss) | $2,895,528 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (net of $5,489 increase in deferred country tax) | $(936,575) |
Translation of assets and liabilities in foreign currencies | (473) |
Net unrealized gain (loss) | $(937,048) |
Net realized and unrealized gain (loss) | $1,958,480 |
Change in net assets from operations | $2,210,603 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/21 (unaudited) | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $252,123 | $339,255 |
Net realized gain (loss) | 2,895,528 | 489,572 |
Net unrealized gain (loss) | (937,048) | 3,857,039 |
Change in net assets from operations | $2,210,603 | $4,685,866 |
Total distributions to shareholders | $— | $(3,615,028) |
Change in net assets from fund share transactions | $92,272 | $(1,773,884) |
Total change in net assets | $2,302,875 | $(703,046) |
Net assets | ||
At beginning of period | 45,978,322 | 46,681,368 |
At end of period | $48,281,197 | $45,978,322 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $17.28 | $17.04 | $14.75 | $17.19 | $12.59 | $11.59 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.11 | $0.14 | $0.28 | $0.11 | $0.06 | $0.15(c) |
Net realized and unrealized gain (loss) | 0.73 | 1.47 | 2.63 | (2.49) | 4.71 | 0.93 |
Total from investment operations | $0.84 | $1.61 | $2.91 | $(2.38) | $4.77 | $1.08 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.50) | $(0.11) | $(0.06) | $(0.17) | $(0.08) |
From net realized gain | — | (0.87) | (0.51) | — | — | — |
Total distributions declared to shareholders | $— | $(1.37) | $(0.62) | $(0.06) | $(0.17) | $(0.08) |
Net asset value, end of period (x) | $18.12 | $17.28 | $17.04 | $14.75 | $17.19 | $12.59 |
Total return (%) (k)(r)(s)(x) | 4.86(n) | 10.63 | 20.45 | (13.89) | 37.98 | 9.28(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.55(a) | 1.73 | 1.55 | 1.50 | 1.53 | 1.34(c) |
Expenses after expense reductions (f) | 1.23(a) | 1.23 | 1.29 | 1.37 | 1.40 | 1.13(c) |
Net investment income (loss) | 1.22(a) | 0.94 | 1.76 | 0.65 | 0.41 | 1.29(c) |
Portfolio turnover | 19(n) | 48 | 21 | 31 | 27 | 47 |
Net assets at end of period (000 omitted) | $22,320 | $20,335 | $21,065 | $20,887 | $28,026 | $22,605 |
Service Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $16.99 | $16.78 | $14.53 | $16.94 | $12.41 | $11.42 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.08 | $0.11 | $0.24 | $0.07 | $0.02 | $0.12(c) |
Net realized and unrealized gain (loss) | 0.73 | 1.43 | 2.58 | (2.46) | 4.64 | 0.91 |
Total from investment operations | $0.81 | $1.54 | $2.82 | $(2.39) | $4.66 | $1.03 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.46) | $(0.06) | $(0.02) | $(0.13) | $(0.04) |
From net realized gain | — | (0.87) | (0.51) | — | — | — |
Total distributions declared to shareholders | $— | $(1.33) | $(0.57) | $(0.02) | $(0.13) | $(0.04) |
Net asset value, end of period (x) | $17.80 | $16.99 | $16.78 | $14.53 | $16.94 | $12.41 |
Total return (%) (k)(r)(s)(x) | 4.77(n) | 10.33 | 20.11 | (14.13) | 37.66 | 9.04(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.80(a) | 1.98 | 1.80 | 1.75 | 1.78 | 1.58(c) |
Expenses after expense reductions (f) | 1.48(a) | 1.48 | 1.54 | 1.62 | 1.65 | 1.37(c) |
Net investment income (loss) | 0.96(a) | 0.71 | 1.52 | 0.40 | 0.16 | 1.02(c) |
Portfolio turnover | 19(n) | 48 | 21 | 31 | 27 | 47 |
Net assets at end of period (000 omitted) | $25,961 | $25,643 | $25,616 | $23,973 | $29,665 | $24,307 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 | $13,700,151 | $— | $— | $13,700,151 |
South Korea | 6,417,191 | — | — | 6,417,191 |
India | 5,035,652 | — | — | 5,035,652 |
Taiwan | 4,905,957 | — | — | 4,905,957 |
Russia | 1,271,250 | 2,557,914 | — | 3,829,164 |
Brazil | 3,058,485 | — | — | 3,058,485 |
Hong Kong | 2,740,569 | — | — | 2,740,569 |
Netherlands | 1,754,429 | — | — | 1,754,429 |
Mexico | 1,268,272 | — | — | 1,268,272 |
Other Countries | 4,464,530 | 599,849 | — | 5,064,379 |
Mutual Funds | 553,741 | — | — | 553,741 |
Total | $45,170,227 | $3,157,763 | $— | $48,327,990 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $1,860,481 |
Long-term capital gains | 1,754,547 |
Total distributions | $3,615,028 |
As of 6/30/21 | |
Cost of investments | $32,347,599 |
Gross appreciation | 17,166,575 |
Gross depreciation | (1,186,184) |
Net unrealized appreciation (depreciation) | $15,980,391 |
As of 12/31/20 | |
Undistributed ordinary income | 171,727 |
Capital loss carryforwards | (9,363) |
Other temporary differences | (20,326) |
Net unrealized appreciation (depreciation) | 17,477,961 |
Long-Term | $(9,363) |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $1,583,859 | |
Service Class | — | 2,031,169 | |
Total | $— | $3,615,028 |
Up to $500 million | 1.05% |
In excess of $500 million | 1.00% |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 173,081 | $3,132,388 | 79,334 | $1,140,804 | |
Service Class | 81,120 | 1,447,058 | 264,438 | 3,399,163 | |
254,201 | $4,579,446 | 343,772 | $4,539,967 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 105,240 | $1,583,859 | |
Service Class | — | — | 137,148 | 2,031,169 | |
— | $— | 242,388 | $3,615,028 | ||
Shares reacquired | |||||
Initial Class | (118,169) | $(2,150,885) | (243,942) | $(3,723,611) | |
Service Class | (131,504) | (2,336,289) | (419,024) | (6,205,268) | |
(249,673) | $(4,487,174) | (662,966) | $(9,928,879) | ||
Net change | |||||
Initial Class | 54,912 | $981,503 | (59,368) | $(998,948) | |
Service Class | (50,384) | (889,231) | (17,438) | (774,936) | |
4,528 | $92,272 | (76,806) | $(1,773,884) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $506,370 | $7,265,713 | $7,218,342 | $— | $— | $553,741 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $222 | $— |
Governments Portfolio
1 | |
2 | |
4 | |
5 | |
11 | |
12 | |
13 | |
14 | |
16 | |
24 | |
25 | |
25 | |
25 | |
25 |
Non-U.S. Government Bonds | 53.3% |
U.S. Treasury Securities | 27.5% |
Emerging Markets Bonds | 11.8% |
Municipal Bonds | 1.4% |
Commercial Mortgage-Backed Securities | 0.6% |
U.S. Government Agencies | 0.4% |
Investment Grade Corporates | 0.3% |
Collateralized Debt Obligations | 0.1% |
Mortgage-Backed Securities (o) | 0.0% |
AAA | 6.8% |
AA | 11.1% |
A | 13.0% |
BBB | 24.1% |
BB | 9.4% |
B | 0.1% |
U.S. Government | 27.5% |
Federal Agencies | 0.4% |
Not Rated | 3.0% |
Cash & Cash Equivalents | 2.4% |
Other | 2.2% |
Average Duration (d) | 7.9 |
Average Effective Maturity (m) | 9.8 yrs. |
United States | 34.9% |
Italy | 17.6% |
Japan | 14.1% |
Greece | 8.2% |
Spain | 5.7% |
Belgium | 3.8% |
United Kingdom | 3.4% |
Sweden | 2.3% |
Australia | 2.1% |
Other Countries | 7.9% |
United States Dollar | 42.9% |
Euro | 22.7% |
Japanese Yen | 17.7% |
British Pound Sterling | 7.3% |
Canadian Dollar | 2.4% |
Norwegian Krone | 2.0% |
Australian Dollar | 1.9% |
South Korean Won | 0.5% |
Swedish Krona | (0.7)% |
Other Currencies | 3.3% |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 ratings agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities. Not Rated includes fixed income securities and fixed income derivatives that have not been rated by any rating agency. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening device (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity. |
(o) | Less than 0.1%. |
(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 and Other. |
(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. |
January 1, 2021 through June 30, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/21 | Ending Account Value 6/30/21 | Expenses Paid During Period (p) 1/01/21-6/30/21 | |
Initial Class | Actual | 0.76% | $1,000.00 | $950.39 | $3.68 |
Hypothetical (h) | 0.76% | $1,000.00 | $1,021.03 | $3.81 | |
Service Class | Actual | 1.01% | $1,000.00 | $949.39 | $4.88 |
Hypothetical (h) | 1.01% | $1,000.00 | $1,019.79 | $5.06 |
(h) | 5% fund return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Bonds – 97.2% | ||||
Foreign Bonds – 67.0% | ||||
Australia – 2.1% | ||||
Commonwealth of Australia, 5.5%, 4/21/2023 | AUD | 750,000 | $ 617,450 | |
Commonwealth of Australia, 1%, 12/21/2030 | 1,850,000 | 1,331,259 | ||
Commonwealth of Australia, 1.75%, 6/21/2051 | 995,000 | 658,944 | ||
$2,607,653 | ||||
Belgium – 3.8% | ||||
Kingdom of Belgium, 1%, 6/22/2026 | EUR | 2,000,000 | $ 2,545,316 | |
Kingdom of Belgium, 0.4%, 6/22/2040 (n) | 1,775,000 | 2,024,201 | ||
Kingdom of Belgium, 1.6%, 6/22/2047 | 155,000 | 216,886 | ||
$4,786,403 | ||||
Brazil – 0.7% | ||||
Federative Republic of Brazil, 10%, 1/01/2023 | BRL | 4,389,000 | $ 916,066 | |
Canada – 2.5% | ||||
Government of Canada, 0.25%, 8/01/2022 | CAD | 3,850,000 | $ 3,104,723 | |
China – 1.6% | ||||
Republic of China, 2.68%, 5/21/2030 | CNY | 8,500,000 | $ 1,265,900 | |
Republic of China, 3.81%, 9/14/2050 | 4,500,000 | 714,247 | ||
$1,980,147 | ||||
Cote d'Ivoire – 0.1% | ||||
Republic of Cote d'Ivoire, 6.875%, 10/17/2040 | EUR | 100,000 | $ 129,353 | |
Cyprus – 0.9% | ||||
Republic of Cyprus, 0%, 2/09/2026 | EUR | 1,000,000 | $ 1,191,679 | |
France – 0.2% | ||||
Republic of France, 4%, 4/25/2055 (n) | EUR | 115,000 | $ 258,132 | |
Germany – 0.2% | ||||
Landwirtschaftliche Rentenbank (Federal Republic of Germany), 0.5%, 5/27/2025 | $ | 300,000 | $ 297,399 | |
Greece – 8.1% | ||||
Hellenic Republic (Republic of Greece), 4.375%, 8/01/2022 | EUR | 1,500,000 | $ 1,869,862 | |
Hellenic Republic (Republic of Greece), 3.45%, 4/02/2024 | 1,000,000 | 1,307,380 | ||
Hellenic Republic (Republic of Greece), 3.875%, 3/12/2029 | 3,250,000 | 4,814,381 | ||
Hellenic Republic (Republic of Greece), 0.75%, 6/18/2031 (n) | 1,935,000 | 2,277,966 | ||
$10,269,589 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Foreign Bonds – continued | ||||
Ireland – 0.5% | ||||
Republic of Ireland, 3.9%, 3/20/2023 | EUR | 500,000 | $ 638,588 | |
Italy – 17.5% | ||||
Republic of Italy, 2.15%, 12/15/2021 | EUR | 2,000,000 | $ 2,400,978 | |
Republic of Italy, 0.95%, 3/15/2023 | 1,500,000 | 1,818,844 | ||
Republic of Italy, 0.35%, 2/01/2025 | 6,200,000 | 7,470,895 | ||
Republic of Italy, 2%, 2/01/2028 | 2,730,000 | 3,579,194 | ||
Republic of Italy, 3.5%, 3/01/2030 | 2,585,000 | 3,805,714 | ||
Republic of Italy, 1.65%, 3/01/2032 | 500,000 | 639,954 | ||
Republic of Italy, 2.45%, 9/01/2033 | 1,000,000 | 1,378,183 | ||
Republic of Italy, 2.25%, 9/01/2036 | 190,000 | 256,469 | ||
Republic of Italy, 5%, 9/01/2040 | 328,000 | 617,219 | ||
Republic of Italy, 3.25%, 9/01/2046 | 110,000 | 171,167 | ||
$22,138,617 | ||||
Japan – 14.1% | ||||
Government of Japan, 1%, 3/20/2022 | JPY | 100,000,000 | $ 907,250 | |
Government of Japan, 0.8%, 6/20/2023 | 60,000,000 | 549,746 | ||
Government of Japan, 2.9%, 11/20/2030 | 235,000,000 | 2,682,103 | ||
Government of Japan, 1.7%, 12/20/2031 | 497,000,000 | 5,224,014 | ||
Government of Japan, 0.4%, 9/20/2040 | 610,000,000 | 5,457,961 | ||
Government of Japan, 0.6%, 9/20/2050 | 150,000,000 | 1,320,424 | ||
Government of Japan, 0.4%, 3/20/2056 | 90,000,000 | 727,866 | ||
Japan Bank for International Cooperation, 0.625%, 7/15/2025 | $ | 300,000 | 296,889 | |
Japan Finance Organization for Municipalities, 0.625%, 9/02/2025 (n) | 250,000 | 245,727 | ||
Japan International Cooperation Agency, 1%, 7/22/2030 | 250,000 | 235,655 | ||
Tokyo Metropolitan Government , 0.75%, 7/16/2025 (n) | 250,000 | 247,382 | ||
$17,895,017 | ||||
New Zealand – 0.5% | ||||
Government of New Zealand, 5.5%, 4/15/2023 | NZD | 800,000 | $ 608,706 | |
Norway – 1.0% | ||||
City of Oslo, 1.6%, 5/05/2022 | NOK | 6,000,000 | $ 702,385 | |
Kingdom of Norway, 2%, 5/24/2023 (n) | 5,000,000 | 595,457 | ||
$1,297,842 | ||||
Portugal – 0.5% | ||||
Republic of Portugal, 4.95%, 10/25/2023 | EUR | 500,000 | $ 669,612 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Foreign Bonds – continued | ||||
Romania – 0.1% | ||||
Republic of Romania, 2.625%, 12/02/2040 (n) | EUR | 100,000 | $ 117,486 | |
Saudi Arabia – 0.2% | ||||
Kingdom of Saudi Arabia, 2.25%, 2/02/2033 (n) | $ | 200,000 | $ 194,290 | |
Serbia – 0.1% | ||||
Republic of Serbia, 2.125%, 12/01/2030 (n) | $ | 200,000 | $ 189,500 | |
South Africa – 0.2% | ||||
Republic of South Africa, 8.25%, 3/31/2032 | ZAR | 5,000,000 | $ 319,756 | |
Spain – 5.7% | ||||
Kingdom of Spain, 0.4%, 4/30/2022 | EUR | 1,000,000 | $ 1,195,274 | |
Kingdom of Spain, 0.35%, 7/30/2023 | 1,600,000 | 1,930,435 | ||
Kingdom of Spain, 3.8%, 4/30/2024 | 1,000,000 | 1,328,929 | ||
Kingdom of Spain, 4.7%, 7/30/2041 | 215,000 | 421,196 | ||
Kingdom of Spain, 5.15%, 10/31/2044 | 370,000 | 792,330 | ||
Spanish Govermnent Bonds, 0.1%, 4/30/2031 (n) | 1,300,000 | 1,494,266 | ||
$7,162,430 | ||||
Supranational – 0.4% | ||||
Corporacion Andina de Fomento, 1.625%, 9/23/2025 | $ | 300,000 | $ 302,316 | |
Inter-American Development Bank, 0.625%, 7/15/2025 | 250,000 | 248,866 | ||
$551,182 | ||||
Sweden – 2.3% | ||||
Kingdom of Sweden, 0.75%, 11/12/2029 | SEK | 18,845,000 | $ 2,295,020 | |
Kommuninvest I Sverige AB, 0.375%, 2/16/2024 (n) | $ | 300,000 | 299,160 | |
Swedish Export Credit Corp., 0.625%, 5/14/2025 | 300,000 | 297,566 | ||
$2,891,746 | ||||
United Kingdom – 3.4% | ||||
United Kingdom Treasury, 4.75%, 12/07/2030 | GBP | 590,000 | $ 1,115,596 | |
United Kingdom Treasury, 1.75%, 9/07/2037 | 225,000 | 340,300 | ||
United Kingdom Treasury, 3.25%, 1/22/2044 | 330,000 | 638,807 | ||
United Kingdom Treasury, 4.25%, 12/07/2046 | 275,000 | 630,340 | ||
United Kingdom Treasury, 3.75%, 7/22/2052 | 214,000 | 489,006 | ||
United Kingdom Treasury, 4%, 1/22/2060 | 195,000 | 507,097 | ||
United Kingdom Treasury, 3.5%, 7/22/2068 | 230,000 | 593,891 | ||
$4,315,037 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Foreign Bonds – continued | ||||
Uruguay – 0.3% | ||||
Oriental Republic of Uruguay, 8.25%, 5/21/2031 | UYU | 14,000,000 | $ 327,453 | |
Total Foreign Bonds | $ 84,858,406 | |||
U.S. Bonds – 30.2% | ||||
Asset-Backed & Securitized – 0.7% | ||||
Cantor Commercial Real Estate, 2019-CF3, “A4”, 3.005%, 1/15/2053 | $ | 315,000 | $ 337,651 | |
Citigroup Commercial Mortgage Trust, 2019-C7, “A4”, 3.102%, 12/15/2072 | 233,275 | 253,657 | ||
Commercial Mortgage Pass-Through Certificates, 2019-BN24, “A3”, 2.96%, 11/15/2062 | 170,384 | 183,405 | ||
Galaxy CLO Ltd., 2018-29A, “A”, FLR, 0.945% (LIBOR - 3mo. + 0.79%), 11/15/2026 (n) | 123,660 | 123,603 | ||
$898,316 | ||||
Consumer Services – 0.2% | ||||
Conservation Fund, 3.474%, 12/15/2029 | $ | 158,000 | $ 169,077 | |
Industrial – 0.1% | ||||
Howard University, Washington D.C., 2.638%, 10/01/2021 | $ | 26,000 | $ 26,138 | |
Howard University, Washington D.C., 2.738%, 10/01/2022 | 28,000 | 28,672 | ||
Howard University, Washington D.C., 2.801%, 10/01/2023 | 30,000 | 30,692 | ||
Howard University, Washington D.C., AGM, 2.416%, 10/01/2024 | 33,000 | 33,873 | ||
Howard University, Washington D.C., AGM, 2.516%, 10/01/2025 | 42,000 | 43,246 | ||
$162,621 | ||||
Mortgage-Backed – 0.0% | ||||
Freddie Mac, 1.262%, 9/25/2030 (i) | $ | 329,805 | $ 32,648 | |
Municipals – 1.4% | ||||
California Earthquake Authority Rev., “B”, 1.227%, 7/01/2021 | $ | 25,000 | $ 25,000 | |
California Earthquake Authority Rev., “B”, 1.327%, 7/01/2022 | 80,000 | 80,794 | ||
California Earthquake Authority Rev., “B”, 1.477%, 7/01/2023 | 60,000 | 61,157 | ||
Chicago, IL, Board of Education, “E”, BAM, 6.138%, 12/01/2039 | 250,000 | 334,309 | ||
Florida State Board of Administration Finance Corp. Rev., “A”, 1.705%, 7/01/2027 | 236,000 | 239,820 | ||
Illinois Sales Tax Securitization Corp., Second Lien, “B”, BAM, 3.411%, 1/01/2043 | 240,000 | 259,343 | ||
Massachusetts Educational Financing Authority, Education Loan Rev., “A”, 2.562%, 7/01/2026 | 20,000 | 20,906 | ||
Massachusetts Educational Financing Authority, Education Loan Rev., “A”, 2.682%, 7/01/2027 | 100,000 | 104,456 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Bonds – continued | ||||
Municipals – continued | ||||
Michigan Finance Authority Hospital Rev. (Trinity Health Credit Group), 3.384%, 12/01/2040 | $ | 285,000 | $ 311,531 | |
Port Authority of NY & NJ, “AAA”, 1.086%, 7/01/2023 | 210,000 | 212,673 | ||
West Virginia Tobacco Settlement Financing Authority Asset-Backed Refunding, “A-1”, 1.497%, 6/01/2024 | 80,000 | 81,094 | ||
West Virginia Tobacco Settlement Financing Authority Asset-Backed Refunding, “A-1”, 1.647%, 6/01/2025 | 65,000 | 65,796 | ||
$1,796,879 | ||||
U.S. Government Agencies and Equivalents – 0.4% | ||||
Small Business Administration, 4.57%, 6/01/2025 | $ | 1,983 | $ 2,077 | |
Small Business Administration, 5.09%, 10/01/2025 | 1,910 | 2,019 | ||
Small Business Administration, 5.21%, 1/01/2026 | 26,592 | 28,274 | ||
Small Business Administration, 2.22%, 3/01/2033 | 353,581 | 365,507 | ||
Tennessee Valley Authority, 0.75%, 5/15/2025 | 96,000 | 96,574 | ||
$494,451 | ||||
U.S. Treasury Obligations – 27.4% | ||||
U.S. Treasury Bonds, 4.5%, 8/15/2039 | $ | 2,546,400 | $ 3,590,225 | |
U.S. Treasury Bonds, 2.75%, 11/15/2042 | 2,061,000 | 2,320,799 | ||
U.S. Treasury Bonds, 3.625%, 2/15/2044 | 1,940,000 | 2,507,526 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Bonds – continued | ||||
U.S. Treasury Obligations – continued | ||||
U.S. Treasury Bonds, 3%, 2/15/2048 | $ | 505,000 | $ 601,976 | |
U.S. Treasury Bonds, 3%, 2/15/2049 | 3,580,000 | 4,286,071 | ||
U.S. Treasury Note, 2.875%, 8/15/2028 | 850,000 | 945,326 | ||
U.S. Treasury Notes, 1.625%, 4/30/2023 | 6,000,000 | 6,151,875 | ||
U.S. Treasury Notes, 0.125%, 1/15/2024 | 6,200,000 | 6,162,461 | ||
U.S. Treasury Notes, 2.125%, 5/15/2025 | 7,120,700 | 7,518,736 | ||
U.S. Treasury Notes, 1.5%, 8/15/2026 (f) | 520,000 | 535,437 | ||
$34,620,432 | ||||
Total U.S. Bonds | $ 38,174,424 | |||
Total Bonds (Identified Cost, $119,607,163) | $ 123,032,830 | |||
Investment Companies (h) – 2.3% | ||||
Money Market Funds – 2.3% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $2,941,480) | 2,941,479 | $ 2,941,480 | ||
Other Assets, Less Liabilities – 0.5% | 601,031 | |||
Net Assets – 100.0% | $ 126,575,341 |
(f) | All or a portion of the security has been segregated as collateral for open futures contracts. |
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $2,941,480 and $123,032,830, respectively. |
(i) | Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security. |
(n) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $8,067,170, representing 6.4% 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: | |
AGM | Assured Guaranty Municipal |
BAM | Build America Mutual |
CLO | Collateralized Loan Obligation |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
LIBOR | London Interbank Offered Rate |
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: | |
AUD | Australian Dollar |
BRL | Brazilian Real |
CAD | Canadian Dollar |
CLP | Chilean Peso |
CNH | Chinese Yuan Renminbi (Offshore) |
CNY | China Yuan Renminbi |
CZK | Czech Koruna |
DKK | Danish Krone |
EUR | Euro |
GBP | British Pound |
HUF | Hungarian Forint |
JPY | Japanese Yen |
KRW | South Korean Won |
MXN | Mexican Peso |
NOK | Norwegian Krone |
NZD | New Zealand Dollar |
PLN | Polish Zloty |
SEK | Swedish Krona |
THB | Thai Baht |
UYU | Uruguayan Peso |
ZAR | South African Rand |
Derivative Contracts at 6/30/21 | ||||||
Forward Foreign Currency Exchange Contracts | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives | ||||||
BRL | 1,590,000 | USD | 316,603 | Citibank N.A. | 8/03/2021 | $ 1,988 |
BRL | 1,604,000 | USD | 317,762 | Goldman Sachs International | 8/03/2021 | 3,634 |
CAD | 1,591,000 | USD | 1,273,972 | Brown Brothers Harriman | 7/16/2021 | 9,493 |
CAD | 802,000 | USD | 642,697 | JPMorgan Chase Bank N.A. | 7/16/2021 | 4,280 |
CNY | 1,567,000 | USD | 239,610 | Barclays Bank PLC | 9/10/2021 | 1,766 |
GBP | 2,917,461 | USD | 4,025,683 | Merrill Lynch International | 7/16/2021 | 10,214 |
GBP | 1,092,902 | USD | 1,509,322 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | 2,553 |
KRW | 717,084,000 | USD | 634,116 | JPMorgan Chase Bank N.A. | 8/17/2021 | 2,500 |
MXN | 1,267,000 | USD | 62,906 | HSBC Bank | 7/16/2021 | 544 |
NOK | 5,412,000 | USD | 624,887 | Deutsche Bank AG | 7/16/2021 | 3,718 |
USD | 2,095,354 | AUD | 2,694,924 | Deutsche Bank AG | 7/16/2021 | 74,147 |
USD | 221,371 | AUD | 286,077 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | 6,812 |
USD | 1,371,029 | AUD | 1,765,240 | State Street Bank Corp. | 7/16/2021 | 47,089 |
USD | 528,623 | CAD | 650,576 | Deutsche Bank AG | 7/16/2021 | 3,800 |
USD | 1,874,076 | CAD | 2,270,449 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | 42,497 |
USD | 634,440 | EUR | 521,000 | Barclays Bank PLC | 7/16/2021 | 16,483 |
USD | 824,918 | EUR | 676,811 | Barclays Bank PLC | 8/12/2021 | 21,717 |
USD | 79,578 | EUR | 65,000 | BNP Paribas S.A. | 7/16/2021 | 2,481 |
USD | 637,383 | EUR | 522,000 | Brown Brothers Harriman | 7/16/2021 | 18,239 |
USD | 636,583 | EUR | 530,117 | Citibank N.A. | 7/16/2021 | 7,812 |
USD | 7,556,865 | EUR | 6,252,699 | Deutsche Bank AG | 7/16/2021 | 140,542 |
USD | 9,386,360 | EUR | 7,864,398 | JPMorgan Chase Bank N.A. | 7/16/2021 | 58,405 |
USD | 2,390,229 | EUR | 1,966,310 | Merrill Lynch International | 7/16/2021 | 57,990 |
USD | 5,187,428 | EUR | 4,338,837 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | 41,137 |
USD | 366,890 | EUR | 302,000 | State Street Bank Corp. | 7/16/2021 | 8,688 |
USD | 865,896 | GBP | 613,315 | Deutsche Bank AG | 7/16/2021 | 17,462 |
USD | 1,919,990 | GBP | 1,386,836 | JPMorgan Chase Bank N.A. | 7/16/2021 | 1,497 |
USD | 636,090 | GBP | 459,000 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | 1,128 |
USD | 649,012 | GBP | 458,000 | State Street Bank Corp. | 7/16/2021 | 15,434 |
USD | 114,115 | JPY | 12,462,000 | Brown Brothers Harriman | 7/16/2021 | 1,928 |
USD | 1,320,740 | JPY | 144,857,458 | Citibank N.A. | 7/16/2021 | 16,689 |
USD | 273,548 | JPY | 29,859,669 | JPMorgan Chase Bank N.A. | 7/16/2021 | 4,743 |
Forward Foreign Currency Exchange Contracts - continued | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives - continued | ||||||
USD | 1,329,104 | JPY | 145,847,778 | State Street Bank Corp. | 7/16/2021 | $ 16,137 |
USD | 942,523 | NOK | 7,860,000 | Brown Brothers Harriman | 7/16/2021 | 29,582 |
USD | 643,462 | NOK | 5,355,000 | Citibank N.A. | 7/16/2021 | 21,478 |
USD | 1,381,412 | NZD | 1,935,507 | Deutsche Bank AG | 7/16/2021 | 28,521 |
USD | 954,176 | NZD | 1,338,000 | State Street Bank Corp. | 7/16/2021 | 18,934 |
USD | 1,584,708 | SEK | 13,458,000 | Brown Brothers Harriman | 7/16/2021 | 11,954 |
USD | 1,085,881 | SEK | 9,162,719 | JPMorgan Chase Bank N.A. | 7/16/2021 | 15,090 |
USD | 628,882 | SEK | 5,309,000 | Merrill Lynch International | 7/16/2021 | 8,452 |
USD | 626,998 | SEK | 5,230,819 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | 15,704 |
USD | 626,282 | SEK | 5,202,808 | State Street Bank Corp. | 7/16/2021 | 18,262 |
USD | 617,033 | THB | 19,381,000 | JPMorgan Chase Bank N.A. | 7/21/2021 | 12,353 |
USD | 133,266 | ZAR | 1,846,168 | State Street Bank Corp. | 7/16/2021 | 4,208 |
$ 848,085 | ||||||
Liability Derivatives | ||||||
AUD | 818,000 | USD | 629,736 | Goldman Sachs International | 7/16/2021 | $ (16,231) |
AUD | 1,260,000 | USD | 981,004 | JPMorgan Chase Bank N.A. | 7/16/2021 | (35,998) |
AUD | 2,005,860 | USD | 1,549,534 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | (45,128) |
AUD | 364,783 | USD | 283,698 | State Street Bank Corp. | 7/16/2021 | (10,109) |
CAD | 351,000 | USD | 291,755 | Brown Brothers Harriman | 7/16/2021 | (8,602) |
CAD | 3,804,868 | USD | 3,130,070 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | (60,671) |
CLP | 221,841,000 | USD | 310,055 | Citibank N.A. | 8/13/2021 | (8,297) |
CNH | 2,045,000 | USD | 317,644 | NatWest Markets PLC | 7/16/2021 | (1,712) |
CZK | 13,549,000 | USD | 632,206 | Brown Brothers Harriman | 7/16/2021 | (2,259) |
DKK | 2,939,237 | USD | 474,406 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | (5,599) |
EUR | 1,090,000 | USD | 1,316,823 | Brown Brothers Harriman | 7/16/2021 | (23,975) |
EUR | 708,225 | USD | 850,115 | Citibank N.A. | 7/16/2021 | (10,089) |
EUR | 2,990,510 | USD | 3,635,279 | Deutsche Bank AG | 7/16/2021 | (88,236) |
EUR | 885,430 | USD | 1,071,991 | HSBC Bank | 7/16/2021 | (21,784) |
EUR | 84,000 | USD | 101,175 | JPMorgan Chase Bank N.A. | 7/16/2021 | (1,542) |
EUR | 1,293,099 | USD | 1,567,976 | State Street Bank Corp. | 7/16/2021 | (34,232) |
GBP | 759,741 | USD | 1,070,245 | Brown Brothers Harriman | 7/16/2021 | (19,250) |
GBP | 451,000 | USD | 638,280 | Citibank N.A. | 7/16/2021 | (14,385) |
GBP | 473,000 | USD | 667,609 | Goldman Sachs International | 7/16/2021 | (13,280) |
GBP | 402,000 | USD | 562,020 | NatWest Markets PLC | 7/16/2021 | (5,910) |
GBP | 429,000 | USD | 609,545 | State Street Bank Corp. | 7/16/2021 | (16,084) |
HUF | 186,646,000 | USD | 636,453 | State Street Bank Corp. | 7/16/2021 | (6,730) |
JPY | 772,729,081 | USD | 7,118,488 | Citibank N.A. | 7/16/2021 | (162,144) |
JPY | 170,298,178 | USD | 1,568,624 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | (35,547) |
MXN | 6,279,000 | USD | 316,009 | State Street Bank Corp. | 7/16/2021 | (1,564) |
NOK | 12,677,161 | USD | 1,518,189 | Brown Brothers Harriman | 7/16/2021 | (45,735) |
NOK | 5,406,000 | USD | 634,751 | Citibank N.A. | 7/16/2021 | (6,843) |
NZD | 448,000 | USD | 320,105 | Brown Brothers Harriman | 7/16/2021 | (6,960) |
NZD | 878,000 | USD | 640,299 | Citibank N.A. | 7/16/2021 | (26,591) |
NZD | 965,875 | USD | 694,434 | Deutsche Bank AG | 7/16/2021 | (19,301) |
NZD | 966,929 | USD | 703,687 | State Street Bank Corp. | 7/16/2021 | (27,818) |
PLN | 2,398,000 | USD | 634,629 | Brown Brothers Harriman | 7/16/2021 | (5,679) |
SEK | 2,633,000 | USD | 318,150 | Brown Brothers Harriman | 7/16/2021 | (10,447) |
SEK | 2,542,000 | USD | 306,838 | JPMorgan Chase Bank N.A. | 7/16/2021 | (9,770) |
SEK | 5,356,000 | USD | 643,421 | State Street Bank Corp. | 7/16/2021 | (17,498) |
USD | 278,130 | BRL | 1,395,378 | Banco Santander S.A | 8/03/2021 | (1,464) |
USD | 655,912 | BRL | 3,447,605 | JPMorgan Chase Bank N.A. | 8/03/2021 | (34,890) |
USD | 2,265,278 | CAD | 2,834,281 | Merrill Lynch International | 7/16/2021 | (21,146) |
Forward Foreign Currency Exchange Contracts - continued | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Liability Derivatives - continued | ||||||
USD | 656,258 | CAD | 823,000 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | $ (7,659) |
USD | 815,842 | CNY | 5,325,000 | Barclays Bank PLC | 9/10/2021 | (4,405) |
USD | 1,379,411 | CNY | 9,105,000 | JPMorgan Chase Bank N.A. | 9/10/2021 | (23,096) |
USD | 2,253 | GBP | 1,635 | JPMorgan Chase Bank N.A. | 7/16/2021 | (8) |
USD | 39,497 | GBP | 28,655 | State Street Bank Corp. | 7/16/2021 | (143) |
USD | 62,561 | MXN | 1,265,866 | Goldman Sachs International | 7/16/2021 | (832) |
USD | 196,736 | ZAR | 2,865,681 | JPMorgan Chase Bank N.A. | 7/16/2021 | (3,594) |
$(923,237) |
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
Canadian Treasury Bond 10 yr | Short | CAD | 25 | $2,934,818 | September - 2021 | $(30,334) |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $119,607,163) | $123,032,830 |
Investments in affiliated issuers, at value (identified cost, $2,941,480) | 2,941,480 |
Restricted cash for | |
Forward foreign currency exchange contracts | 70,000 |
Receivables for | |
Forward foreign currency exchange contracts | 848,085 |
Fund shares sold | 17,767 |
Interest | 652,614 |
Receivable from investment adviser | 7,586 |
Other assets | 738 |
Total assets | $127,571,100 |
Liabilities | |
Payables for | |
Forward foreign currency exchange contracts | $923,237 |
Net daily variation margin on open futures contracts | 6,032 |
Fund shares reacquired | 4,211 |
Payable to affiliates | |
Administrative services fee | 150 |
Shareholder servicing costs | 10 |
Distribution and/or service fees | 11 |
Accrued expenses and other liabilities | 62,108 |
Total liabilities | $995,759 |
Net assets | $126,575,341 |
Net assets consist of | |
Paid-in capital | $121,493,634 |
Total distributable earnings (loss) | 5,081,707 |
Net assets | $126,575,341 |
Shares of beneficial interest outstanding | 11,395,457 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $125,782,636 | 11,322,568 | $11.11 |
Service Class | 792,705 | 72,889 | 10.88 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Interest | $751,199 |
Dividends from affiliated issuers | 1,567 |
Other | 29 |
Foreign taxes withheld | (2,761) |
Total investment income | $750,034 |
Expenses | |
Management fee | $475,731 |
Distribution and/or service fees | 982 |
Shareholder servicing costs | 1,031 |
Administrative services fee | 13,617 |
Independent Trustees' compensation | 2,004 |
Custodian fee | 11,613 |
Shareholder communications | 2,934 |
Audit and tax fees | 37,462 |
Legal fees | 511 |
Miscellaneous | 16,391 |
Total expenses | $562,276 |
Reduction of expenses by investment adviser | (78,525) |
Net expenses | $483,751 |
Net investment income (loss) | $266,283 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers (net of $514 country tax) | $1,921,673 |
Futures contracts | 24,025 |
Forward foreign currency exchange contracts | (514,467) |
Foreign currency | 17,932 |
Net realized gain (loss) | $1,449,163 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(8,362,265) |
Futures contracts | (22,039) |
Forward foreign currency exchange contracts | 105,155 |
Translation of assets and liabilities in foreign currencies | (34,473) |
Net unrealized gain (loss) | $(8,313,622) |
Net realized and unrealized gain (loss) | $(6,864,459) |
Change in net assets from operations | $(6,598,176) |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/21 (unaudited) | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $266,283 | $565,320 |
Net realized gain (loss) | 1,449,163 | 4,900,087 |
Net unrealized gain (loss) | (8,313,622) | 6,923,550 |
Change in net assets from operations | $(6,598,176) | $12,388,957 |
Total distributions to shareholders | $— | $(1,660,302) |
Change in net assets from fund share transactions | $2,931,693 | $(10,857,191) |
Total change in net assets | $(3,666,483) | $(128,536) |
Net assets | ||
At beginning of period | 130,241,824 | 130,370,360 |
At end of period | $126,575,341 | $130,241,824 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $11.69 | $10.71 | $10.34 | $10.56 | $9.87 | $9.84 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.02 | $0.05 | $0.11 | $0.11 | $0.08 | $0.07(c) |
Net realized and unrealized gain (loss) | (0.60) | 1.08 | 0.53 | (0.23) | 0.61 | (0.04)(g) |
Total from investment operations | $(0.58) | $1.13 | $0.64 | $(0.12) | $0.69 | $0.03 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.15) | $(0.27) | $(0.10) | $— | $— |
Net asset value, end of period (x) | $11.11 | $11.69 | $10.71 | $10.34 | $10.56 | $9.87 |
Total return (%) (k)(r)(s)(x) | (4.96)(n) | 10.60 | 6.08 | (1.11) | 6.99 | 0.30(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.89(a) | 0.90 | 0.88 | 0.87 | 0.86 | 0.83(c) |
Expenses after expense reductions (f) | 0.76(a) | 0.83 | 0.87 | 0.86 | 0.85 | 0.82(c) |
Net investment income (loss) | 0.42(a) | 0.46 | 1.01 | 1.05 | 0.77 | 0.66(c) |
Portfolio turnover | 76(n) | 98 | 107 | 79 | 67 | 75 |
Net assets at end of period (000 omitted) | $125,783 | $129,401 | $129,565 | $135,008 | $159,652 | $162,211 |
Service Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $11.46 | $10.50 | $10.14 | $10.34 | $9.69 | $9.69 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.01 | $0.02 | $0.08 | $0.08 | $0.05 | $0.04(c) |
Net realized and unrealized gain (loss) | (0.59) | 1.06 | 0.51 | (0.22) | 0.60 | (0.04)(g) |
Total from investment operations | $(0.58) | $1.08 | $0.59 | $(0.14) | $0.65 | $0.00(w) |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.12) | $(0.23) | $(0.06) | $— | $— |
Net asset value, end of period (x) | $10.88 | $11.46 | $10.50 | $10.14 | $10.34 | $9.69 |
Total return (%) (k)(r)(s)(x) | (5.06)(n) | 10.35 | 5.79 | (1.32) | 6.71 | 0.00(c)(w) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.14(a) | 1.15 | 1.13 | 1.12 | 1.11 | 1.08(c) |
Expenses after expense reductions (f) | 1.01(a) | 1.08 | 1.12 | 1.11 | 1.10 | 1.07(c) |
Net investment income (loss) | 0.17(a) | 0.20 | 0.76 | 0.80 | 0.52 | 0.41(c) |
Portfolio turnover | 76(n) | 98 | 107 | 79 | 67 | 75 |
Net assets at end of period (000 omitted) | $793 | $841 | $806 | $826 | $1,034 | $1,572 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(g) | The per share amount varies from the net realized and unrealized gain/loss for the period because of the timing of sales of fund shares and the per share amount of realized and unrealized gains and losses at such time. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(w) | Per share amount was less than $0.01 and total return or ratio was less than 0.01%, as applicable. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | $— | $35,114,883 | $— | $35,114,883 |
Non - U.S. Sovereign Debt | — | 83,609,479 | — | 83,609,479 |
Municipal Bonds | — | 1,796,879 | — | 1,796,879 |
U.S. Corporate Bonds | — | 331,698 | — | 331,698 |
Residential Mortgage-Backed Securities | — | 32,648 | — | 32,648 |
Commercial Mortgage-Backed Securities | — | 774,713 | — | 774,713 |
Asset-Backed Securities (including CDOs) | — | 123,603 | — | 123,603 |
Foreign Bonds | — | 1,248,927 | — | 1,248,927 |
Mutual Funds | 2,941,480 | — | — | 2,941,480 |
Total | $2,941,480 | $123,032,830 | $— | $125,974,310 |
Other Financial Instruments | ||||
Futures Contracts – Liabilities | $(30,334) | $— | $— | $(30,334) |
Forward Foreign Currency Exchange Contracts – Assets | — | 848,085 | — | 848,085 |
Forward Foreign Currency Exchange Contracts – Liabilities | — | (923,237) | — | (923,237) |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Interest Rate Futures | $— | $30,334 |
Foreign Exchange | Forward Foreign Currency Exchange Contracts | 848,085 | 923,237 |
Total | $848,085 | $953,569 |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $24,025 | $— |
Foreign Exchange | — | (514,467) |
Total | $24,025 | $(514,467) |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $(22,039) | $— |
Foreign Exchange | — | 105,155 |
Total | $(22,039) | $105,155 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $1,660,302 |
As of 6/30/21 | |
Cost of investments | $124,362,251 |
Gross appreciation | 3,028,389 |
Gross depreciation | (1,416,330) |
Net unrealized appreciation (depreciation) | $1,612,059 |
As of 12/31/20 | |
Undistributed ordinary income | 2,952,140 |
Capital loss carryforwards | (1,102,411) |
Other temporary differences | 31,173 |
Net unrealized appreciation (depreciation) | 9,798,981 |
Short-Term | $(300,608) |
Long-Term | (801,803) |
Total | $(1,102,411) |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $1,651,619 | |
Service Class | — | 8,683 | |
Total | $— | $1,660,302 |
Up to $300 million | 0.75% |
In excess of $300 million and up to $1 billion | 0.675% |
In excess of $1 billion | 0.625% |
Purchases | Sales | |
U.S. Government securities | $31,294,898 | $35,076,769 |
Non-U.S. Government securities | 66,679,143 | 57,874,096 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 382,466 | $4,391,453 | 1,052,245 | $11,850,341 | |
Service Class | 4,520 | 49,558 | 7,826 | 87,385 | |
386,986 | $4,441,011 | 1,060,071 | $11,937,726 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 145,517 | $1,651,619 | |
Service Class | — | — | 779 | 8,683 | |
— | $— | 146,296 | $1,660,302 | ||
Shares reacquired | |||||
Initial Class | (127,954) | $(1,453,589) | (2,224,850) | $(24,324,361) | |
Service Class | (4,998) | (55,729) | (11,946) | (130,858) | |
(132,952) | $(1,509,318) | (2,236,796) | $(24,455,219) | ||
Net change | |||||
Initial Class | 254,512 | $2,937,864 | (1,027,088) | $(10,822,401) | |
Service Class | (478) | (6,171) | (3,341) | (34,790) | |
254,034 | $2,931,693 | (1,030,429) | $(10,857,191) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $2,150,119 | $45,278,649 | $44,487,288 | $— | $— | $2,941,480 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,567 | $— |
1 | |
2 | |
3 | |
4 | |
6 | |
7 | |
8 | |
9 | |
11 | |
17 | |
18 | |
18 | |
18 | |
18 |
Alphabet, Inc., “A” | 5.8% |
Microsoft Corp. | 4.5% |
Alibaba Group Holding Ltd., ADR | 3.3% |
Apple, Inc. | 2.4% |
Accenture PLC, “A” | 2.3% |
Dollarama, Inc. | 2.2% |
Nestle S.A. | 1.9% |
Boston Scientific Corp. | 1.9% |
Tencent Holdings Ltd. | 1.9% |
American Tower Corp., REIT | 1.9% |
Information Technology | 22.8% |
Consumer Discretionary | 15.1% |
Health Care | 14.9% |
Communication Services | 12.3% |
Consumer Staples | 12.3% |
Industrials | 8.8% |
Financials | 8.8% |
Real Estate | 1.9% |
Materials | 1.8% |
Utilities | 0.6% |
United States | 62.0% |
China | 6.1% |
Canada | 5.4% |
Switzerland | 5.2% |
United Kingdom | 4.4% |
France | 3.3% |
Germany | 2.6% |
South Korea | 2.5% |
Japan | 2.2% |
Other Countries | 6.3% |
United States Dollar | 65.8% |
Euro | 6.8% |
Swiss Franc | 5.2% |
Hong Kong Dollar | 5.2% |
British Pound Sterling | 5.2% |
Canadian Dollar | 3.2% |
South Korean Won | 2.5% |
Japanese Yen | 2.2% |
Indian Rupee | 1.6% |
Other Currencies | 2.3% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
(x) | Represents the portfolio’s exposure to issuer countries as a percentage of a portfolio’s net assets. For purposes of this presentation, United States includes Cash & Cash Equivalents. |
(y) | Represents the portfolio’s exposure to a particular currency as a percentage of a portfolio's net assets. For purposes of this presentation, United States Dollar includes Cash & Cash Equivalents. |
January 1, 2021 through June 30, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/21 | Ending Account Value 6/30/21 | Expenses Paid During Period (p) 1/01/21-6/30/21 | |
Initial Class | Actual | 1.00% | $1,000.00 | $1,111.43 | $5.24 |
Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 | |
Service Class | Actual | 1.25% | $1,000.00 | $1,109.86 | $6.54 |
Hypothetical (h) | 1.25% | $1,000.00 | $1,018.60 | $6.26 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.3% | ||||
Alcoholic Beverages – 3.5% | ||||
Diageo PLC | 20,644 | $ 988,353 | ||
Kweichow Moutai Co. Ltd., “A” | 1,700 | 541,115 | ||
Pernod Ricard S.A. | 2,579 | 572,467 | ||
$2,101,935 | ||||
Apparel Manufacturers – 6.1% | ||||
Adidas AG | 3,066 | $ 1,141,187 | ||
Burberry Group PLC | 25,204 | 720,305 | ||
LVMH Moet Hennessy Louis Vuitton SE | 1,130 | 886,074 | ||
NIKE, Inc., “B” | 6,239 | 963,863 | ||
$3,711,429 | ||||
Brokerage & Asset Managers – 2.4% | ||||
Blackstone Group, Inc. | 4,898 | $ 475,792 | ||
Charles Schwab Corp. | 13,256 | 965,169 | ||
$1,440,961 | ||||
Business Services – 9.1% | ||||
Accenture PLC, “A” | 4,701 | $ 1,385,808 | ||
CGI, Inc. (a) | 7,011 | 635,662 | ||
Cognizant Technology Solutions Corp., “A” | 6,141 | 425,326 | ||
Equifax, Inc. | 3,528 | 844,991 | ||
Fidelity National Information Services, Inc. | 4,591 | 650,407 | ||
Fiserv, Inc. (a) | 10,068 | 1,076,168 | ||
Verisk Analytics, Inc., “A” | 3,066 | 535,692 | ||
$5,554,054 | ||||
Cable TV – 1.2% | ||||
Charter Communications, Inc., “A” (a) | 1,034 | $ 745,979 | ||
Computer Software – 4.5% | ||||
Microsoft Corp. | 10,179 | $ 2,757,491 | ||
Computer Software - Systems – 3.1% | ||||
Apple, Inc. | 10,479 | $ 1,435,204 | ||
Samsung Electronics Co. Ltd. | 6,550 | 469,373 | ||
$1,904,577 | ||||
Construction – 2.0% | ||||
Otis Worldwide Corp. | 7,567 | $ 618,754 | ||
Sherwin-Williams Co. | 2,296 | 625,545 | ||
$1,244,299 | ||||
Consumer Products – 6.0% | ||||
Church & Dwight Co., Inc. | 6,176 | $ 526,319 | ||
Colgate-Palmolive Co. | 7,079 | 575,876 | ||
Estee Lauder Cos., Inc., “A” | 1,529 | 486,344 | ||
KOSE Corp. | 6,000 | 944,057 | ||
L'Oréal | 729 | 324,846 | ||
Reckitt Benckiser Group PLC | 9,183 | 812,601 | ||
$3,670,043 | ||||
Electrical Equipment – 3.5% | ||||
Amphenol Corp., “A” | 13,577 | $ 928,802 | ||
Fortive Corp. | 8,323 | 580,446 | ||
TE Connectivity Ltd. | 4,537 | 613,448 | ||
$2,122,696 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Electronics – 3.3% | ||||
Analog Devices, Inc. | 3,336 | $ 574,326 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 7,258 | 872,121 | ||
Texas Instruments, Inc. | 2,968 | 570,746 | ||
$2,017,193 | ||||
Food & Beverages – 2.8% | ||||
Danone S.A. | 3,566 | $ 251,039 | ||
Nestle S.A. | 9,422 | 1,173,307 | ||
PepsiCo, Inc. | 1,892 | 280,338 | ||
$1,704,684 | ||||
Gaming & Lodging – 0.8% | ||||
Flutter Entertainment PLC (a) | 2,652 | $ 482,226 | ||
General Merchandise – 2.2% | ||||
Dollarama, Inc. | 28,725 | $ 1,314,825 | ||
Health Maintenance Organizations – 0.8% | ||||
Cigna Corp. | 2,007 | $ 475,800 | ||
Insurance – 3.0% | ||||
Aon PLC | 4,703 | $ 1,122,888 | ||
Marsh & McLennan Cos., Inc. | 5,051 | 710,575 | ||
$1,833,463 | ||||
Internet – 12.7% | ||||
Alibaba Group Holding Ltd. (a) | 70,312 | $ 1,992,277 | ||
Alphabet, Inc., “A” (a) | 1,442 | 3,521,061 | ||
NAVER Corp. | 2,894 | 1,072,899 | ||
Tencent Holdings Ltd. | 15,200 | 1,143,284 | ||
$7,729,521 | ||||
Leisure & Toys – 1.7% | ||||
Electronic Arts, Inc. | 7,072 | $ 1,017,166 | ||
Machinery & Tools – 1.5% | ||||
Daikin Industries Ltd. | 2,100 | $ 391,098 | ||
Schindler Holding AG | 1,642 | 502,227 | ||
$893,325 | ||||
Medical & Health Technology & Services – 1.9% | ||||
ICON PLC (a) | 3,736 | $ 772,269 | ||
PRA Health Sciences, Inc. (a) | 2,178 | 359,827 | ||
$1,132,096 | ||||
Medical Equipment – 10.3% | ||||
Abbott Laboratories | 2,787 | $ 323,097 | ||
Agilent Technologies, Inc. | 4,228 | 624,941 | ||
Becton, Dickinson and Co. | 3,081 | 749,268 | ||
Boston Scientific Corp. (a) | 27,435 | 1,173,121 | ||
Danaher Corp. | 3,019 | 810,179 | ||
Medtronic PLC | 4,713 | 585,025 | ||
STERIS PLC | 2,775 | 572,482 | ||
Stryker Corp. | 3,050 | 792,176 | ||
Thermo Fisher Scientific, Inc. | 1,213 | 611,922 | ||
$6,242,211 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Other Banks & Diversified Financials – 5.8% | ||||
Credicorp Ltd. (a) | 1,426 | $ 172,703 | ||
HDFC Bank Ltd. | 47,726 | 961,775 | ||
Julius Baer Group Ltd. | 5,262 | 343,388 | ||
Mastercard, Inc., “A” | 1,136 | 414,742 | ||
Moody's Corp. | 1,578 | 571,820 | ||
Visa, Inc., “A” | 4,413 | 1,031,848 | ||
$3,496,276 | ||||
Pharmaceuticals – 2.0% | ||||
Bayer AG | 7,239 | $ 439,568 | ||
Roche Holding AG | 2,053 | 773,384 | ||
$1,212,952 | ||||
Printing & Publishing – 0.9% | ||||
Wolters Kluwer N.V. | 5,462 | $ 548,695 | ||
Railroad & Shipping – 2.2% | ||||
Canadian National Railway Co. | 3,896 | $ 411,106 | ||
Canadian Pacific Railway Ltd. | 12,065 | 927,919 | ||
$1,339,025 | ||||
Restaurants – 0.9% | ||||
Starbucks Corp. | 5,172 | $ 578,281 | ||
Specialty Chemicals – 0.8% | ||||
Croda International PLC | 1,259 | $ 128,319 | ||
Sika AG | 1,142 | 373,364 | ||
$501,683 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Specialty Stores – 1.8% | ||||
Ross Stores, Inc. | 4,511 | $ 559,364 | ||
TJX Cos., Inc. | 7,735 | 521,494 | ||
$1,080,858 | ||||
Telecommunications - Wireless – 1.9% | ||||
American Tower Corp., REIT | 4,226 | $ 1,141,612 | ||
Utilities - Electric Power – 0.6% | ||||
Xcel Energy, Inc. | 5,769 | $ 380,062 | ||
Total Common Stocks (Identified Cost, $30,812,093) | $60,375,418 | |||
Investment Companies (h) – 0.7% | ||||
Money Market Funds – 0.7% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $408,801) | 408,801 | $ 408,801 | ||
Other Assets, Less Liabilities – (0.0)% | (11,057) | |||
Net Assets – 100.0% | $60,773,162 |
(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 $408,801 and $60,375,418, 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 |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $30,812,093) | $60,375,418 |
Investments in affiliated issuers, at value (identified cost, $408,801) | 408,801 |
Foreign currency, at value (identified cost, $4,370) | 4,348 |
Receivables for | |
Fund shares sold | 13,131 |
Interest and dividends | 87,536 |
Receivable from investment adviser | 5,762 |
Other assets | 497 |
Total assets | $60,895,493 |
Liabilities | |
Payable to custodian | $857 |
Payables for | |
Fund shares reacquired | 31,986 |
Payable to affiliates | |
Administrative services fee | 104 |
Shareholder servicing costs | 20 |
Distribution and/or service fees | 81 |
Deferred country tax expense payable | 33,645 |
Accrued expenses and other liabilities | 55,638 |
Total liabilities | $122,331 |
Net assets | $60,773,162 |
Net assets consist of | |
Paid-in capital | $21,552,024 |
Total distributable earnings (loss) | 39,221,138 |
Net assets | $60,773,162 |
Shares of beneficial interest outstanding | 1,751,796 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $54,853,352 | 1,580,459 | $34.71 |
Service Class | 5,919,810 | 171,337 | 34.55 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $374,367 |
Other | 1,589 |
Dividends from affiliated issuers | 149 |
Income on securities loaned | 4 |
Foreign taxes withheld | (25,576) |
Total investment income | $350,533 |
Expenses | |
Management fee | $261,945 |
Distribution and/or service fees | 5,084 |
Shareholder servicing costs | 1,754 |
Administrative services fee | 9,227 |
Independent Trustees' compensation | 1,543 |
Custodian fee | 9,454 |
Shareholder communications | 2,741 |
Audit and tax fees | 37,875 |
Legal fees | 227 |
Miscellaneous | 11,552 |
Total expenses | $341,402 |
Reduction of expenses by investment adviser | (45,155) |
Net expenses | $296,247 |
Net investment income (loss) | $54,286 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers (net of $1,017 country tax) | $2,846,958 |
Foreign currency | (3,348) |
Net realized gain (loss) | $2,843,610 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (net of $3,275 decrease in deferred country tax) | $3,300,948 |
Translation of assets and liabilities in foreign currencies | (1,981) |
Net unrealized gain (loss) | $3,298,967 |
Net realized and unrealized gain (loss) | $6,142,577 |
Change in net assets from operations | $6,196,863 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/21 (unaudited) | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $54,286 | $43,748 |
Net realized gain (loss) | 2,843,610 | 6,924,262 |
Net unrealized gain (loss) | 3,298,967 | 2,933,827 |
Change in net assets from operations | $6,196,863 | $9,901,837 |
Total distributions to shareholders | $— | $(5,057,056) |
Change in net assets from fund share transactions | $(1,964,915) | $(1,323,240) |
Total change in net assets | $4,231,948 | $3,521,541 |
Net assets | ||
At beginning of period | 56,541,214 | 53,019,673 |
At end of period | $60,773,162 | $56,541,214 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $31.23 | $28.60 | $23.72 | $26.53 | $21.00 | $20.88 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.03 | $0.03 | $0.14 | $0.15 | $0.13 | $0.25(c) |
Net realized and unrealized gain (loss) | 3.45 | 5.57 | 8.00 | (1.23) | 6.51 | 1.08 |
Total from investment operations | $3.48 | $5.60 | $8.14 | $(1.08) | $6.64 | $1.33 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.14) | $(0.16) | $(0.14) | $(0.27) | $(0.13) |
From net realized gain | — | (2.83) | (3.10) | (1.59) | (0.84) | (1.08) |
Total distributions declared to shareholders | $— | $(2.97) | $(3.26) | $(1.73) | $(1.11) | $(1.21) |
Net asset value, end of period (x) | $34.71 | $31.23 | $28.60 | $23.72 | $26.53 | $21.00 |
Total return (%) (k)(r)(s)(x) | 11.14(n) | 20.76 | 36.01 | (4.83) | 32.14 | 6.07(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.16(a) | 1.21 | 1.21 | 1.17 | 1.17 | 0.72(c) |
Expenses after expense reductions (f) | 1.00(a) | 1.00 | 1.00 | 1.00 | 1.00 | 0.55(c) |
Net investment income (loss) | 0.20(a) | 0.10 | 0.53 | 0.56 | 0.55 | 1.18(c) |
Portfolio turnover | 10(n) | 34 | 22 | 22 | 21 | 25 |
Net assets at end of period (000 omitted) | $54,853 | $53,591 | $50,911 | $43,919 | $54,886 | $46,182 |
Service Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $31.13 | $28.52 | $23.65 | $26.44 | $20.94 | $20.82 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.00)(w) | $(0.04) | $0.07 | $0.09 | $0.07 | $0.20(c) |
Net realized and unrealized gain (loss) | 3.42 | 5.56 | 7.98 | (1.24) | 6.48 | 1.08 |
Total from investment operations | $3.42 | $5.52 | $8.05 | $(1.15) | $6.55 | $1.28 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.08) | $(0.08) | $(0.05) | $(0.21) | $(0.08) |
From net realized gain | — | (2.83) | (3.10) | (1.59) | (0.84) | (1.08) |
Total distributions declared to shareholders | $— | $(2.91) | $(3.18) | $(1.64) | $(1.05) | $(1.16) |
Net asset value, end of period (x) | $34.55 | $31.13 | $28.52 | $23.65 | $26.44 | $20.94 |
Total return (%) (k)(r)(s)(x) | 10.99(n) | 20.49 | 35.66 | (5.06) | 31.77 | 5.85(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.41(a) | 1.46 | 1.46 | 1.42 | 1.42 | 0.94(c) |
Expenses after expense reductions (f) | 1.25(a) | 1.25 | 1.25 | 1.25 | 1.25 | 0.77(c) |
Net investment income (loss) | (0.02)(a) | (0.16) | 0.26 | 0.34 | 0.31 | 0.94(c) |
Portfolio turnover | 10(n) | 34 | 22 | 22 | 21 | 25 |
Net assets at end of period (000 omitted) | $5,920 | $2,950 | $2,109 | $1,754 | $2,530 | $2,355 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 | $60,375,418 | $— | $— | $60,375,418 |
Mutual Funds | 408,801 | — | — | 408,801 |
Total | $60,784,219 | $— | $— | $60,784,219 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $556,052 |
Long-term capital gains | 4,501,004 |
Total distributions | $5,057,056 |
As of 6/30/21 | |
Cost of investments | $31,229,460 |
Gross appreciation | 29,826,030 |
Gross depreciation | (271,271) |
Net unrealized appreciation (depreciation) | $29,554,759 |
As of 12/31/20 | |
Undistributed ordinary income | 271,425 |
Undistributed long-term capital gain | 6,747,330 |
Other temporary differences | 4,532 |
Net unrealized appreciation (depreciation) | 26,000,988 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $4,835,637 | |
Service Class | — | 221,419 | |
Total | $— | $5,057,056 |
Up to $1 billion | 0.90% |
In excess of $1 billion and up to $2 billion | 0.75% |
In excess of $2 billion | 0.65% |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 17,076 | $546,737 | 63,657 | $1,741,046 | |
Service Class | 82,992 | 2,754,819 | 22,786 | 663,768 | |
100,068 | $3,301,556 | 86,443 | $2,404,814 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 172,148 | $4,835,637 | |
Service Class | — | — | 7,902 | 221,419 | |
— | $— | 180,050 | $5,057,056 | ||
Shares reacquired | |||||
Initial Class | (152,683) | $(5,053,023) | (299,956) | $(8,508,716) | |
Service Class | (6,443) | (213,448) | (9,827) | (276,394) | |
(159,126) | $(5,266,471) | (309,783) | $(8,785,110) |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Net change | |||||
Initial Class | (135,607) | $(4,506,286) | (64,151) | $(1,932,033) | |
Service Class | 76,549 | 2,541,371 | 20,861 | 608,793 | |
(59,058) | $(1,964,915) | (43,290) | $(1,323,240) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $461,131 | $5,840,312 | $5,892,642 | $— | $— | $408,801 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $149 | $— |
1 | |
2 | |
3 | |
4 | |
7 | |
8 | |
9 | |
10 | |
12 | |
18 | |
19 | |
19 | |
19 | |
19 |
Microsoft Corp. | 4.4% |
Amazon.com, Inc. | 3.0% |
Facebook, Inc., “A” | 2.1% |
Alphabet, Inc., “A” | 2.0% |
Taiwan Semiconductor Manufacturing Co. Ltd. | 1.9% |
Visa, Inc., “A” | 1.7% |
Adobe Systems, Inc. | 1.7% |
Tencent Holdings Ltd. | 1.7% |
salesforce.com, inc. | 1.6% |
Apple, Inc. | 1.5% |
Technology | 28.0% |
Financial Services | 17.0% |
Capital Goods | 17.0% |
Consumer Cyclicals | 11.9% |
Health Care | 11.3% |
Energy | 5.7% |
Consumer Staples | 5.7% |
Telecommunications/Cable Television | 3.0% |
United States | 63.3% |
Switzerland | 4.8% |
France | 4.8% |
China | 4.7% |
Japan | 2.7% |
Hong Kong | 2.5% |
Germany | 2.4% |
United Kingdom | 2.1% |
Canada | 1.9% |
Other Countries | 10.8% |
United States Dollar | 65.0% |
Euro | 10.8% |
Hong Kong Dollar | 5.9% |
Swiss Franc | 4.8% |
Japanese Yen | 2.7% |
British Pound Sterling | 2.7% |
Taiwan Dollar | 1.9% |
Canadian Dollar | 1.3% |
Indian Rupee | 1.2% |
Other Currencies | 3.7% |
(k) | The sectors set forth above and the associated portfolio composition are based on MFS’ own custom sector classification methodology. |
(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. |
January 1, 2021 through June 30, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/21 | Ending Account Value 6/30/21 | Expenses Paid During Period (p) 1/01/21-6/30/21 | |
Initial Class | Actual | 0.85% | $1,000.00 | $1,115.85 | $4.46 |
Hypothetical (h) | 0.85% | $1,000.00 | $1,020.58 | $4.26 | |
Service Class | Actual | 1.10% | $1,000.00 | $1,114.36 | $5.77 |
Hypothetical (h) | 1.10% | $1,000.00 | $1,019.34 | $5.51 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.6% | ||||
Aerospace & Defense – 3.0% | ||||
Honeywell International, Inc. | 4,877 | $ 1,069,770 | ||
Howmet Aerospace, Inc. (a) | 9,281 | 319,916 | ||
L3Harris Technologies, Inc. | 2,295 | 496,064 | ||
Northrop Grumman Corp. | 1,311 | 476,457 | ||
Raytheon Technologies Corp. | 7,817 | 666,868 | ||
$3,029,075 | ||||
Alcoholic Beverages – 1.8% | ||||
China Resources Beer Holdings Co. Ltd. | 40,000 | $ 359,337 | ||
Constellation Brands, Inc., “A” | 2,060 | 481,813 | ||
Diageo PLC | 14,261 | 682,760 | ||
Kweichow Moutai Co. Ltd., “A” | 900 | 286,473 | ||
$1,810,383 | ||||
Apparel Manufacturers – 3.1% | ||||
Adidas AG | 1,916 | $ 713,148 | ||
Burberry Group PLC | 13,521 | 386,416 | ||
LVMH Moet Hennessy Louis Vuitton SE | 1,359 | 1,065,642 | ||
NIKE, Inc., “B” | 5,830 | 900,677 | ||
$3,065,883 | ||||
Biotechnology – 0.5% | ||||
Illumina, Inc. (a) | 1,081 | $ 511,540 | ||
Brokerage & Asset Managers – 2.6% | ||||
Charles Schwab Corp. | 19,864 | $ 1,446,298 | ||
Euronext N.V. | 10,875 | 1,182,474 | ||
$2,628,772 | ||||
Business Services – 3.4% | ||||
Accenture PLC, “A” | 2,123 | $ 625,839 | ||
Fidelity National Information Services, Inc. | 6,779 | 960,381 | ||
Fiserv, Inc. (a) | 8,614 | 920,751 | ||
Global Payments, Inc. | 4,530 | 849,556 | ||
$3,356,527 | ||||
Cable TV – 0.8% | ||||
Comcast Corp., “A” | 14,647 | $ 835,172 | ||
Chemicals – 0.4% | ||||
FMC Corp. | 3,415 | $ 369,503 | ||
Computer Software – 9.0% | ||||
Adobe Systems, Inc. (a) | 2,980 | $ 1,745,207 | ||
Atlassian Corp. PLC, “A” (a) | 1,756 | 451,046 | ||
Cadence Design Systems, Inc. (a) | 5,808 | 794,651 | ||
Microsoft Corp. (s) | 16,437 | 4,452,783 | ||
salesforce.com, inc. (a) | 6,595 | 1,610,961 | ||
$9,054,648 | ||||
Computer Software - Systems – 3.1% | ||||
Apple, Inc. | 11,058 | $ 1,514,504 | ||
Constellation Software, Inc. | 588 | 890,543 | ||
EPAM Systems, Inc. (a) | 1,391 | 710,745 | ||
$3,115,792 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Construction – 2.7% | ||||
Masco Corp. | 7,739 | $ 455,904 | ||
Otis Worldwide Corp. | 6,813 | 557,099 | ||
Sherwin-Williams Co. | 2,242 | 610,833 | ||
Techtronic Industries Co. Ltd. | 35,000 | 611,259 | ||
Vulcan Materials Co. | 2,865 | 498,711 | ||
$2,733,806 | ||||
Consumer Products – 0.8% | ||||
Colgate-Palmolive Co. | 4,889 | $ 397,720 | ||
Kao Corp. | 5,700 | 350,687 | ||
$748,407 | ||||
Consumer Services – 0.2% | ||||
51job, Inc., ADR (a) | 2,940 | $ 228,644 | ||
Electrical Equipment – 2.2% | ||||
Johnson Controls International PLC | 9,815 | $ 673,603 | ||
Schneider Electric SE | 6,878 | 1,082,084 | ||
TE Connectivity Ltd. | 3,209 | 433,889 | ||
$2,189,576 | ||||
Electronics – 4.2% | ||||
Applied Materials, Inc. | 5,647 | $ 804,133 | ||
Lam Research Corp. | 712 | 463,298 | ||
NXP Semiconductors N.V. | 5,329 | 1,096,282 | ||
Taiwan Semiconductor Manufacturing Co. Ltd. | 87,000 | 1,857,874 | ||
$4,221,587 | ||||
Energy - Independent – 1.2% | ||||
ConocoPhillips | 11,187 | $ 681,289 | ||
Oil Search Ltd. | 73,662 | 210,475 | ||
Valero Energy Corp. | 4,013 | 313,335 | ||
$1,205,099 | ||||
Energy - Integrated – 0.4% | ||||
Galp Energia SGPS S.A., “B” | 39,266 | $ 426,114 | ||
Food & Beverages – 2.5% | ||||
Danone S.A. | 4,612 | $ 324,676 | ||
Mondelez International, Inc. | 9,373 | 585,250 | ||
Nestle S.A. | 7,660 | 953,888 | ||
PepsiCo, Inc. | 4,142 | 613,720 | ||
$2,477,534 | ||||
Food & Drug Stores – 1.0% | ||||
Wal-Mart Stores, Inc. | 6,883 | $ 970,641 | ||
Gaming & Lodging – 0.6% | ||||
Flutter Entertainment PLC (a) | 3,490 | $ 634,603 | ||
General Merchandise – 0.7% | ||||
Dollar General Corp. | 3,449 | $ 746,329 | ||
Health Maintenance Organizations – 1.0% | ||||
Cigna Corp. | 4,272 | $ 1,012,763 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Insurance – 3.7% | ||||
AIA Group Ltd. | 110,000 | $ 1,367,155 | ||
Aon PLC | 6,122 | 1,461,689 | ||
Chubb Ltd. | 5,445 | 865,428 | ||
$3,694,272 | ||||
Internet – 7.6% | ||||
Alphabet, Inc., “A” (a)(s) | 822 | $ 2,007,151 | ||
Facebook, Inc., “A” (a) | 5,986 | 2,081,392 | ||
NAVER Corp. | 2,810 | 1,041,757 | ||
NetEase.com, Inc., ADR | 6,562 | 756,271 | ||
Tencent Holdings Ltd. | 22,900 | 1,722,448 | ||
$7,609,019 | ||||
Leisure & Toys – 1.1% | ||||
Electronic Arts, Inc. | 4,856 | $ 698,439 | ||
Naspers Ltd. | 1,944 | 408,157 | ||
$1,106,596 | ||||
Machinery & Tools – 3.7% | ||||
GEA Group AG | 9,072 | $ 367,463 | ||
Ingersoll Rand, Inc. (a) | 13,715 | 669,429 | ||
Kubota Corp. (l) | 22,600 | 457,106 | ||
Roper Technologies, Inc. | 1,917 | 901,374 | ||
Schindler Holding AG | 1,541 | 471,335 | ||
SMC Corp. | 700 | 413,655 | ||
Trane Technologies PLC | 2,119 | 390,193 | ||
$3,670,555 | ||||
Major Banks – 2.8% | ||||
BNP Paribas | 17,720 | $ 1,110,878 | ||
Goldman Sachs Group, Inc. | 3,211 | 1,218,671 | ||
Mitsubishi UFJ Financial Group, Inc. | 93,400 | 504,517 | ||
$2,834,066 | ||||
Medical & Health Technology & Services – 0.8% | ||||
ICON PLC (a) | 4,093 | $ 846,064 | ||
Medical Equipment – 4.3% | ||||
Becton, Dickinson and Co. | 2,743 | $ 667,070 | ||
Boston Scientific Corp. (a) | 24,925 | 1,065,793 | ||
Danaher Corp. | 4,325 | 1,160,657 | ||
Medtronic PLC | 7,986 | 991,302 | ||
QIAGEN N.V. (a) | 9,181 | 444,177 | ||
$4,328,999 | ||||
Natural Gas - Distribution – 0.6% | ||||
China Resources Gas Group Ltd. | 98,000 | $ 588,179 | ||
Natural Gas - Pipeline – 0.4% | ||||
TC Energy Corp. | 8,967 | $ 443,720 | ||
Network & Telecom – 0.7% | ||||
Equinix, Inc., REIT | 859 | $ 689,433 | ||
Other Banks & Diversified Financials – 6.5% | ||||
HDFC Bank Ltd. | 59,546 | $ 1,199,972 | ||
Julius Baer Group Ltd. | 18,905 | 1,233,703 | ||
Macquarie Group Ltd. | 5,696 | 668,225 | ||
Moody's Corp. | 1,445 | 523,625 | ||
Truist Financial Corp. | 19,411 | 1,077,310 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Other Banks & Diversified Financials – continued | ||||
Visa, Inc., “A” | 7,513 | $ 1,756,690 | ||
$6,459,525 | ||||
Pharmaceuticals – 4.6% | ||||
Johnson & Johnson | 6,115 | $ 1,007,385 | ||
Merck & Co., Inc. | 11,059 | 860,058 | ||
Organon & Co. (a) | 1,105 | 33,437 | ||
Roche Holding AG | 3,832 | 1,443,549 | ||
Santen Pharmaceutical Co. Ltd. | 40,300 | 555,012 | ||
Zoetis, Inc. | 3,881 | 723,263 | ||
$4,622,704 | ||||
Printing & Publishing – 0.7% | ||||
Wolters Kluwer N.V. | 6,583 | $ 661,307 | ||
Railroad & Shipping – 0.6% | ||||
Canadian Pacific Railway Ltd. | 7,831 | $ 602,282 | ||
Real Estate – 1.5% | ||||
LEG Immobilien SE | 6,300 | $ 907,259 | ||
STORE Capital Corp., REIT | 16,064 | 554,369 | ||
$1,461,628 | ||||
Restaurants – 1.5% | ||||
Starbucks Corp. | 3,845 | $ 429,909 | ||
Wendy's Co. | 12,909 | 302,329 | ||
Yum China Holdings, Inc. | 10,904 | 722,390 | ||
$1,454,628 | ||||
Specialty Chemicals – 4.5% | ||||
Air Products & Chemicals, Inc. | 1,577 | $ 453,671 | ||
Akzo Nobel N.V. | 4,111 | 507,935 | ||
Axalta Coating Systems Ltd. (a) | 16,413 | 500,432 | ||
Croda International PLC | 6,747 | 687,665 | ||
DuPont de Nemours, Inc. | 7,953 | 615,642 | ||
Linde PLC | 3,339 | 963,476 | ||
Sika AG | 2,252 | 736,266 | ||
$4,465,087 | ||||
Specialty Stores – 3.0% | ||||
Amazon.com, Inc. (a)(s) | 874 | $ 3,006,700 | ||
Telecommunications - Wireless – 1.8% | ||||
Advanced Info Service Public Co. Ltd. | 66,400 | $ 354,272 | ||
Cellnex Telecom S.A. | 7,414 | 472,261 | ||
KDDI Corp. | 13,900 | 433,534 | ||
T-Mobile USA, Inc. (a) | 3,853 | 558,030 | ||
$1,818,097 | ||||
Telephone Services – 0.4% | ||||
Hellenic Telecommunications Organization S.A. | 22,776 | $ 382,144 | ||
Tobacco – 0.6% | ||||
British American Tobacco PLC | 7,586 | $ 293,824 | ||
Philip Morris International, Inc. | 3,393 | 336,280 | ||
$630,104 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Utilities - Electric Power – 3.0% | ||||
CLP Holdings Ltd. | 53,500 | $ 529,191 | ||
Iberdrola S.A. | 53,243 | 649,006 | ||
NextEra Energy, Inc. | 10,942 | 801,830 | ||
Orsted A/S (Kingdom of Denmark) | 3,523 | 494,358 | ||
Southern Co. | 9,448 | 571,698 | ||
$3,046,083 | ||||
Total Common Stocks (Identified Cost, $61,563,806) | $ 99,793,590 |
Issuer | Shares/Par | Value ($) | ||
Investment Companies (h) – 0.4% | ||||
Money Market Funds – 0.4% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $353,803) | 353,803 | $ 353,803 | ||
Other Assets, Less Liabilities – 0.0% | 32,842 | |||
Net Assets – 100.0% | $ 100,180,235 |
(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 $353,803 and $99,793,590, respectively. | |||
(l) | A portion of this security is on loan. See Note 2 for additional information. | |||
(s) | Security or a portion of the security was pledged to cover collateral requirements for certain derivative transactions. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value, including $125,599 of securities on loan (identified cost, $61,563,806) | $99,793,590 |
Investments in affiliated issuers, at value (identified cost, $353,803) | 353,803 |
Cash | 1,260 |
Foreign currency, at value (identified cost, $13,223) | 13,118 |
Deposits with brokers | 2,589 |
Receivables for | |
Interest and dividends | 188,670 |
Other assets | 648 |
Total assets | $100,353,678 |
Liabilities | |
Payables for | |
Fund shares reacquired | $70,075 |
Payable to affiliates | |
Investment adviser | 162 |
Administrative services fee | 132 |
Shareholder servicing costs | 3 |
Distribution and/or service fees | 108 |
Deferred country tax expense payable | 36,136 |
Accrued expenses and other liabilities | 66,827 |
Total liabilities | $173,443 |
Net assets | $100,180,235 |
Net assets consist of | |
Paid-in capital | $51,757,813 |
Total distributable earnings (loss) | 48,422,422 |
Net assets | $100,180,235 |
Shares of beneficial interest outstanding | 2,588,577 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $92,325,593 | 2,384,501 | $38.72 |
Service Class | 7,854,642 | 204,076 | 38.49 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $830,598 |
Income on securities loaned | 493 |
Dividends from affiliated issuers | 146 |
Other | 29 |
Foreign taxes withheld | (47,177) |
Total investment income | $784,089 |
Expenses | |
Management fee | $365,588 |
Distribution and/or service fees | 9,542 |
Shareholder servicing costs | 1,236 |
Administrative services fee | 11,735 |
Independent Trustees' compensation | 1,800 |
Custodian fee | 14,298 |
Shareholder communications | 5,413 |
Audit and tax fees | 30,299 |
Legal fees | 915 |
Miscellaneous | 14,127 |
Total expenses | $454,953 |
Reduction of expenses by investment adviser | (30,889) |
Net expenses | $424,064 |
Net investment income (loss) | $360,025 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers (net of $1,962 country tax) | $2,191,456 |
Foreign currency | (559) |
Net realized gain (loss) | $2,190,897 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (net of $2,509 decrease in deferred country tax) | $8,193,532 |
Translation of assets and liabilities in foreign currencies | (3,590) |
Net unrealized gain (loss) | $8,189,942 |
Net realized and unrealized gain (loss) | $10,380,839 |
Change in net assets from operations | $10,740,864 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/21 (unaudited) | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $360,025 | $584,760 |
Net realized gain (loss) | 2,190,897 | 7,007,762 |
Net unrealized gain (loss) | 8,189,942 | 6,103,129 |
Change in net assets from operations | $10,740,864 | $13,695,651 |
Total distributions to shareholders | $— | $(6,967,015) |
Change in net assets from fund share transactions | $(6,941,025) | $(3,519,648) |
Total change in net assets | $3,799,839 | $3,208,988 |
Net assets | ||
At beginning of period | 96,380,396 | 93,171,408 |
At end of period | $100,180,235 | $96,380,396 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $34.70 | $32.19 | $27.00 | $31.74 | $25.69 | $24.63 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.14 | $0.22 | $0.40 | $0.32 | $0.28 | $0.41(c) |
Net realized and unrealized gain (loss) | 3.88 | 4.87 | 7.88 | (2.82) | 6.24 | 0.93 |
Total from investment operations | $4.02 | $5.09 | $8.28 | $(2.50) | $6.52 | $1.34 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.42) | $(0.34) | $(0.33) | $(0.47) | $(0.28) |
From net realized gain | — | (2.16) | (2.75) | (1.91) | — | — |
Total distributions declared to shareholders | $— | $(2.58) | $(3.09) | $(2.24) | $(0.47) | $(0.28) |
Net asset value, end of period (x) | $38.72 | $34.70 | $32.19 | $27.00 | $31.74 | $25.69 |
Total return (%) (k)(r)(s)(x) | 11.59(n) | 16.49 | 31.96 | (8.83) | 25.51 | 5.44(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.91(a) | 0.95 | 0.94 | 0.93 | 0.92 | 0.78(c) |
Expenses after expense reductions (f) | 0.85(a) | 0.85 | 0.85 | 0.88 | 0.92 | 0.77(c) |
Net investment income (loss) | 0.76(a) | 0.69 | 1.29 | 1.01 | 0.97 | 1.64(c) |
Portfolio turnover | 6(n) | 32 | 27 | 22 | 33 | 40 |
Net assets at end of period (000 omitted) | $92,326 | $88,676 | $87,138 | $77,345 | $98,434 | $91,281 |
Service Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $34.54 | $32.06 | $26.89 | $31.61 | $25.59 | $24.52 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.09 | $0.13 | $0.32 | $0.24 | $0.21 | $0.34(c) |
Net realized and unrealized gain (loss) | 3.86 | 4.87 | 7.85 | (2.82) | 6.20 | 0.94 |
Total from investment operations | $3.95 | $5.00 | $8.17 | $(2.58) | $6.41 | $1.28 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.36) | $(0.25) | $(0.23) | $(0.39) | $(0.21) |
From net realized gain | — | (2.16) | (2.75) | (1.91) | — | — |
Total distributions declared to shareholders | $— | $(2.52) | $(3.00) | $(2.14) | $(0.39) | $(0.21) |
Net asset value, end of period (x) | $38.49 | $34.54 | $32.06 | $26.89 | $31.61 | $25.59 |
Total return (%) (k)(r)(s)(x) | 11.44(n) | 16.24 | 31.62 | (9.06) | 25.17 | 5.21(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.16(a) | 1.21 | 1.19 | 1.18 | 1.17 | 1.03(c) |
Expenses after expense reductions (f) | 1.10(a) | 1.10 | 1.10 | 1.13 | 1.17 | 1.02(c) |
Net investment income (loss) | 0.51(a) | 0.40 | 1.06 | 0.76 | 0.73 | 1.39(c) |
Portfolio turnover | 6(n) | 32 | 27 | 22 | 33 | 40 |
Net assets at end of period (000 omitted) | $7,855 | $7,705 | $6,034 | $5,519 | $7,312 | $7,415 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 | $99,793,590 | $— | $— | $99,793,590 |
Mutual Funds | 353,803 | — | — | 353,803 |
Total | $100,147,393 | $— | $— | $100,147,393 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $1,126,006 |
Long-term capital gains | 5,841,009 |
Total distributions | $6,967,015 |
As of 6/30/21 | |
Cost of investments | $62,045,077 |
Gross appreciation | 39,086,094 |
Gross depreciation | (983,778) |
Net unrealized appreciation (depreciation) | $38,102,316 |
As of 12/31/20 | |
Undistributed ordinary income | 1,327,630 |
Undistributed long-term capital gain | 6,275,090 |
Other temporary differences | 206,192 |
Net unrealized appreciation (depreciation) | 29,872,646 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $6,392,513 | |
Service Class | — | 574,502 | |
Total | $— | $6,967,015 |
Up to $300 million | 0.75% |
In excess of $300 million | 0.675% |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 15,571 | $572,313 | 26,914 | $846,212 | |
Service Class | 1,258 | 44,834 | 83,361 | 2,590,298 | |
16,829 | $617,147 | 110,275 | $3,436,510 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 199,517 | $6,392,513 | |
Service Class | — | — | 17,998 | 574,502 | |
— | $— | 217,515 | $6,967,015 | ||
Shares reacquired | |||||
Initial Class | (186,593) | $(6,827,631) | (378,252) | $(11,870,001) | |
Service Class | (20,276) | (730,541) | (66,439) | (2,053,172) | |
(206,869) | $(7,558,172) | (444,691) | $(13,923,173) | ||
Net change | |||||
Initial Class | (171,022) | $(6,255,318) | (151,821) | $(4,631,276) | |
Service Class | (19,018) | (685,707) | 34,920 | 1,111,628 | |
(190,040) | $(6,941,025) | (116,901) | $(3,519,648) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $365,105 | $6,696,274 | $6,707,576 | $— | $— | $353,803 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $146 | $— |
Allocation Portfolio
1 | |
2 | |
4 | |
5 | |
24 | |
25 | |
26 | |
27 | |
29 | |
42 | |
43 | |
43 | |
43 | |
43 |
Tactical Overlay (b) | |||||
Active Security Selection (a) | Long | Short | Net Market Exposure (c) | ||
Fixed Income | U.S. | 16.9% | 42.4% | (8.6)% | 50.7% |
Emerging Markets | 12.3% | 0.0% | 0.0% | 12.3% | |
United Kingdom | 3.1% | 3.1% | 0.0% | 6.2% | |
Asia/Pacific ex-Japan | 1.4% | 3.6% | 0.0% | 5.0% | |
North America ex-U.S. | (0.8)% | 4.7% | 0.0% | 3.9% | |
Europe ex-U.K. | 13.0% | 0.0% | (9.5)% | 3.5% | |
Supranational | 0.6% | 0.0% | 0.0% | 0.6% | |
Developed - Middle East/Africa | 0.2% | 0.0% | 0.0% | 0.2% | |
Japan | 4.0% | 0.0% | (7.9)% | (3.9)% | |
Total | 50.7% | 53.8% | (26.0)% | 78.5% | |
Equity | U.S. Large Cap | 15.2% | 0.0% | (2.1)% | 13.1% |
Europe ex-U.K. | 7.1% | 6.4% | (3.4)% | 10.1% | |
United Kingdom | 2.1% | 3.4% | 0.0% | 5.5% | |
Japan | 2.6% | 1.1% | 0.0% | 3.7% | |
Emerging Markets | 2.7% | 5.7% | (5.6)% | 2.8% | |
U.S. Small/Mid Cap | 3.3% | 0.0% | (2.7)% | 0.6% | |
Developed - Middle East/Africa | 0.0% | 0.0% | 0.0% | 0.0% | |
Asia/Pacific ex-Japan | 0.5% | 2.8% | (3.6)% | (0.3)% | |
North America ex-U.S. | 1.2% | 0.0% | (2.1)% | (0.9)% | |
Total | 34.7% | 19.4% | (19.5)% | 34.6% | |
Real Estate-related | U.S. | 1.4% | 0.0% | 0.0% | 1.4% |
Non-U.S. | 0.5% | 0.0% | 0.0% | 0.5% | |
Total | 1.9% | 0.0% | 0.0% | 1.9% | |
Cash | Cash & Cash Equivalents (d) | 2.4% | |||
Other (e) | (17.4)% | ||||
Total | (15.0)% | ||||
Total Net Exposure Summary | 100.0% |
Exposure Ranges
Asset Class | Target (w) | Ranges (z) |
Equities | 35% | 0 to 70% |
Fixed Income, Cash and Cash Equivalents | 65% | 30 to 100% |
USD Interest Rate Swap, Receive 0.25% - JUN 2022 | 30.1% |
USD Interest Rate Swap, Receive 1.58% - NOV 2024 | 12.3% |
Canadian Treasury Bond 10 yr Future - SEP 2021 | 4.3% |
U.S. Treasury Note 2 yr Future - SEP 2021 | 3.9% |
Australian Note 10 yr Future - SEP 2021 | 3.6% |
S&P/ASX 200 Index Future - MAR 2021 | (3.5)% |
U.S. Treasury Note 5 yr Future - SEP 2021 | (4.3)% |
USD Interest Rate Swap, Pay 1.7% - NOV 2029 | (6.1)% |
Japan Government Bond 10 yr Future - SEP 2021 | (7.9)% |
Euro-Bund 10 yr Future - SEP 2021 | (14.1)% |
(a) | Represents the actively managed portion of the portfolio and for purposes of this presentation, components include the value of securities, less any securities sold short. The bond component will include any accrued interest amounts. This also reflects the equivalent exposure of certain derivative positions. These amounts may be negative from time to time. |
(b) | Represents the tactical overlay portion of the portfolio which is how the fund manages its exposure to markets and currencies through the use of derivative positions. Percentages reflect the equivalent exposure of those derivative positions. |
(c) | For purposes of this presentation, the components include the value of securities, less any securities sold short, and reflect the impact of the equivalent exposure of all derivative positions. These amounts may be negative from time to time. The bond component will include any accrued interest amounts. |
(d) | Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities. |
(e) | Other includes currency derivatives and/or the offsetting of the leverage produced by the fund’s derivative positions, including payables and/or receivables of the finance leg of interest rate swaps and the unrealized gain or loss in connection with forward currency exchange contracts. |
(w) | The strategic asset class allocations have been selected for investment over longer time periods. The actual strategic asset class weightings can deviate due to market movements and cash flows. |
(z) | The fund’s net exposures to the asset classes referenced will normally fall within these ranges after taking into account the tactical overlay. |
January 1, 2021 through June 30, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/21 | Ending Account Value 6/30/21 | Expenses Paid During Period (p) 1/01/21-6/30/21 | |
Initial Class | Actual | 0.79% | $1,000.00 | $1,027.87 | $3.97 |
Hypothetical (h) | 0.79% | $1,000.00 | $1,020.88 | $3.96 | |
Service Class | Actual | 1.04% | $1,000.00 | $1,026.47 | $5.23 |
Hypothetical (h) | 1.04% | $1,000.00 | $1,019.64 | $5.21 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Bonds – 62.0% | ||||
Aerospace & Defense – 0.4% | ||||
Huntington Ingalls Industries, Inc., 3.844%, 5/01/2025 | $ | 254,000 | $ 276,789 | |
Huntington Ingalls Industries, Inc., 3.483%, 12/01/2027 | 350,000 | 382,064 | ||
L3Harris Technologies, Inc., 3.85%, 6/15/2023 | 475,000 | 504,883 | ||
Lockheed Martin Corp., 2.8%, 6/15/2050 | 594,000 | 596,452 | ||
Rolls-Royce Holdings PLC, 5.75%, 10/15/2027 | GBP | 375,000 | 567,748 | |
$2,327,936 | ||||
Airlines – 0.1% | ||||
EasyJet FinCo B.V., 1.875%, 3/03/2028 | EUR | 200,000 | $ 237,174 | |
National Express Group PLC, 4.25%, 11/26/2069 | GBP | 400,000 | 574,761 | |
$811,935 | ||||
Asset-Backed & Securitized – 4.4% | ||||
Arbor Multi-Family Mortgage Securities Trust, Inc., 2021-MF2, “A5”, 2.513%, 6/15/2054 (n) | $ | 612,000 | $ 632,075 | |
Arbor Realty Trust, Inc., CLO, 2019-FL2, “AS”, FLR, 1.574% (LIBOR - 1mo. + 1.45%), 9/15/2034 (n) | 600,000 | 600,187 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL2, “B”, 1.7%, 5/15/2036 (n) | 143,000 | 143,000 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL2, “C”, 2.05%, 5/15/2036 (n) | 426,500 | 427,294 | ||
Arbor Realty Trust, Inc., FLR, 1.572% (LIBOR - 1mo. + 1.5%), 12/15/2035 (n) | 214,500 | 214,567 | ||
Barclays Commercial Mortgage Securities LLC, 2020-C7, “XA”, 1.742%, 4/15/2053 (i) | 996,440 | 104,574 | ||
BBCMS Mortgage Trust, 2021-C10, “XA”, 1.434%, 7/15/2054 (i)(w) | 2,946,422 | 296,300 | ||
BBCMS Mortgage Trust, 2021-C9, “XA”, 1.769%, 2/15/2054 (i) | 6,720,004 | 841,311 | ||
Benchmark Mortgage Trust, 2021-B24, “XA”, 1.274%, 3/15/2054 (i) | 2,029,220 | 175,167 | ||
Benchmark Mortgage Trust, 2021-B25, “A5”, 2.577%, 4/15/2054 | 840,000 | 878,579 | ||
Benchmark Mortgage Trust, 2021-B26, “XA”, 0.999%, 6/15/2054 (i) | 5,583,555 | 385,548 | ||
Benchmark Mortgage Trust, 2021-B27, “XA”, 1.273%, 7/15/2054 (i) | 6,790,943 | 684,748 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
BPCRE Holder LLC, FLR, 1.631% (LIBOR - 1mo. + 1.55%), 2/15/2037 (n) | $ | 706,000 | $ 706,002 | |
Business Jet Securities LLC, 2020-1A, “A”, 2.981%, 11/15/2035 (n) | 266,546 | 271,359 | ||
Business Jet Securities LLC, 2021-1A, “A”, 2.162%, 4/15/2036 (n) | 241,780 | 243,639 | ||
BXMT Ltd., 2021-FL4, “AS”, FLR, 1.372% (LIBOR - 1mo. + 1.3%), 5/15/2038 (n) | 900,000 | 900,003 | ||
BXMT Ltd., 2021-FL4, “B”, FLR, 1.622% (LIBOR - 1mo. + 1.55%), 5/15/2038 (n) | 1,797,000 | 1,797,011 | ||
Capital Automotive, 2020-1A, “A4”, REIT, 3.19%, 2/15/2050 (n) | 261,521 | 269,248 | ||
CF Hippolyta Issuer LLC, 2020-1, “A1”, 1.69%, 7/15/2060 (n) | 209,291 | 212,668 | ||
Commercial Mortgage Pass-Through Certificates, 2020-BN28, “A4”, 1.844%, 3/15/2063 | 237,641 | 234,576 | ||
Commercial Mortgage Pass-Through Certificates, 2020-BN29, “A4”, 1.997%, 11/15/2053 | 1,033,946 | 1,031,711 | ||
Commercial Mortgage Pass-Through Certificates, 2021-BN32, “XA”, 0.893%, 4/15/2054 (i) | 1,241,684 | 74,630 | ||
Commercial Mortgage Pass-Through Certificates, 2021-BN34, “A5”, 2.438%, 6/15/2063 | 1,021,000 | 1,054,916 | ||
Commercial Mortgage Pass-Through Certificates, 2021-BN34, “XA”, 0.98%, 6/15/2063 (i) | 2,973,283 | 225,482 | ||
Credit Acceptance Auto Loan Trust, 2021-3A, “A”, 1%, 5/15/2030 (n) | 738,000 | 739,470 | ||
Fort CRE LLC, 2018-1A, “A1”, FLR, 1.445% (LIBOR - 1mo. + 1.35%), 11/16/2035 (n) | 448,939 | 448,939 | ||
FS Rialto 2019-FL1 Issuer Ltd., 2021-FL2, “AS”, FLR, 1.624% (LIBOR - 1mo. + 1.6%), 4/16/2028 (n) | 701,500 | 701,718 | ||
KKR Real Estate Financial Trust, Inc., 2018-FL1, “A”, FLR, 1.181% (LIBOR - 1mo. + 1.1%), 6/15/2036 (n) | 712,190 | 712,411 | ||
LoanCore Ltd., 2021-CRE5, “AS”, 1.823%, 7/15/2036 (n) | 865,000 | 865,809 | ||
LoanCore Ltd., 2021-CRE5, “B”, FLR, 2.072% (LIBOR - 1mo. + 2%), 7/15/2036 (n) | 367,000 | 367,344 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
MF1 CLO Ltd., 2019-FL2, “A”, FLR, 1.262% (LIBOR - 1mo. + 1.13%), 12/25/2034 (n) | $ | 185,525 | $ 185,524 | |
MF1 CLO Ltd., 2020-FL3, “AS”, FLR, 2.974% (LIBOR - 1mo. + 2.85%), 7/15/2035 (z) | 357,000 | 362,128 | ||
MF1 CLO Ltd., 2021-FL5, “AS”, FLR, 1.324% (LIBOR - 1mo. + 1.2%), 7/15/2036 (n) | 677,000 | 676,366 | ||
MF1 CLO Ltd., 2021-FL5, “B”, FLR, 1.574% (LIBOR - 1mo. + 1.45%), 7/15/2036 (n) | 847,500 | 846,705 | ||
MF1 CLO Ltd., 2021-FL5, “C”, FLR, 1.824% (LIBOR - 1mo. + 1.7%), 7/15/2036 (n) | 200,000 | 199,813 | ||
MF1 CLO Ltd., 2021-FL6, “AS”, 1.55% (LIBOR - 1mo. + 1.45%), 7/16/2036 (n) | 1,050,000 | 1,050,657 | ||
Morgan Stanley Capital I Trust, 2017-H1, “A5”, 3.53%, 6/15/2050 | 659,762 | 728,141 | ||
Morgan Stanley Capital I Trust, 2021-L5, “XA”, 1.425%, 5/15/2054 (i) | 2,265,803 | 222,060 | ||
Multi-Family Housing Mortgage, MF1-2021, FLR, “B”, 1.75% (LIBOR - 1mo. + 1.65%), 7/16/2036 (n) | 1,000,000 | 1,000,623 | ||
PFP III Ltd., 2021-7, “AS”, FLR, 1.222% (LIBOR - 1mo. + 1.15%), 4/14/2038 (n) | 612,500 | 610,976 | ||
PFP III Ltd., 2021-7, “B”, FLR, 1.474% (LIBOR - 1mo. + 1.4%), 4/14/2038 (n) | 240,000 | 239,403 | ||
Starwood Commercial Mortgage, 2021-FL2, “AS”, FLR, 1.532% (LIBOR - 1mo. + 1.45%), 4/18/2038 (n) | 700,000 | 700,877 | ||
Starwood Property Trust, Inc., REIT, FLR, 1.882% (LIBOR - 1mo. + 1.8%), 4/18/2038 (n) | 534,500 | 535,336 | ||
TPG Real Estate Finance, 2021-FL4, “A”, FLR, 1.281% (LIBOR - 1mo. + 1.2%), 3/15/2038 (n) | 325,500 | 325,805 | ||
TPG Real Estate Finance, 2021-FL4, “AS”, FLR, 1.481% (LIBOR - 1mo. + 1.4%), 3/15/2038 (n) | 350,000 | 350,328 | ||
Wells Fargo Commercial Mortgage Trust, 2020-C58, “A4”, 2.092%, 7/15/2053 | 418,000 | 420,530 | ||
$24,695,558 | ||||
Automotive – 0.9% | ||||
Daimler AG, 0.75%, 9/10/2030 | EUR | 225,000 | $ 274,413 | |
Daimler Finance North America LLC, 1.45%, 3/02/2026 (n) | $ | 817,000 | 820,655 | |
Ferrari N.V., 1.5%, 5/27/2025 | EUR | 560,000 | 689,578 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Automotive – continued | ||||
Hyundai Capital America, 2%, 6/15/2028 (n) | $ | 1,018,000 | $ 1,009,376 | |
Hyundai Capital America, 6.375%, 4/08/2030 (n) | 742,000 | 961,950 | ||
Volkswagen International Finance N.V., 3.5% to 3/20/2030, FLR (EUR Swap Rate - 15yr. + 3.06%) to 3/20/2050, FLR (EUR Swap Rate - 15yr. + 3.81%) to 12/29/2066 | EUR | 550,000 | 714,933 | |
Volkswagen International Finance N.V., 3.5% to 6/17/2025, FLR (EUR Swap Rate - 5yr. + 3.746%) to 6/17/2030, FLR (EUR Swap Rate - 5yr. + 3.996%) to 6/17/2045, FLR (EUR Swap Rate - 5yr. + 4.746%) to 6/17/2070 | 500,000 | 640,080 | ||
$5,110,985 | ||||
Broadcasting – 0.3% | ||||
Discovery, Inc., 4.125%, 5/15/2029 | $ | 664,000 | $ 743,441 | |
Prosus N.V., 1.539%, 8/03/2028 | EUR | 300,000 | 367,727 | |
Prosus N.V., 3.68%, 1/21/2030 (n) | $ | 200,000 | 213,582 | |
WPP Finance, 3.75%, 9/19/2024 | 374,000 | 406,765 | ||
$1,731,515 | ||||
Brokerage & Asset Managers – 0.2% | ||||
Intercontinental Exchange, Inc., 3%, 9/15/2060 | $ | 417,000 | $ 402,039 | |
London Stock Exchange Group PLC, 0.25%, 4/06/2028 | EUR | 310,000 | 366,476 | |
Low Income Investment Fund, 3.386%, 7/01/2026 | $ | 150,000 | 159,131 | |
Low Income Investment Fund, 3.711%, 7/01/2029 | 400,000 | 428,816 | ||
$1,356,462 | ||||
Building – 0.4% | ||||
CEMEX S.A.B. de C.V., 7.375%, 6/05/2027 (n) | $ | 200,000 | $ 225,760 | |
CRH America Finance, Inc., 4.5%, 4/04/2048 (n) | 347,000 | 423,123 | ||
Holcim Finance (Luxembourg) S.A., 0.625%, 4/06/2030 | EUR | 570,000 | 674,776 | |
Vantage Towers AG, 0.75%, 3/31/2030 | 200,000 | 236,572 | ||
Vulcan Materials Co., 3.5%, 6/01/2030 | $ | 453,000 | 499,342 | |
$2,059,573 | ||||
Business Services – 0.7% | ||||
Equinix, Inc., REIT, 1%, 3/15/2033 | EUR | 325,000 | $ 381,561 | |
Euronet Worldwide, Inc., 1.375%, 5/22/2026 | 800,000 | 960,788 | ||
Fiserv, Inc., 4.4%, 7/01/2049 | $ | 356,000 | 429,394 | |
Nexi S.p.A. , 2.125%, 4/30/2029 | EUR | 550,000 | 645,380 | |
NXP Semiconductors N.V., 3.4%, 5/01/2030 (n) | $ | 813,000 | 887,721 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Business Services – continued | ||||
Visa, Inc., 3.65%, 9/15/2047 | $ | 596,000 | $ 697,948 | |
$4,002,792 | ||||
Cable TV – 0.4% | ||||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 6.384%, 10/23/2035 | $ | 262,000 | $ 350,207 | |
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 4.8%, 3/01/2050 | 267,000 | 306,662 | ||
Eutelsat S.A., 2.25%, 7/13/2027 | EUR | 600,000 | 778,775 | |
Eutelsat S.A., 1.5%, 10/13/2028 | 300,000 | 371,206 | ||
Time Warner Cable, Inc., 4.5%, 9/15/2042 | $ | 388,000 | 431,280 | |
$2,238,130 | ||||
Chemicals – 0.1% | ||||
Alpek SAB de C.V., 3.25%, 2/25/2031 (n) | $ | 219,000 | $ 221,630 | |
LYB International Finance III, LLC, 4.2%, 5/01/2050 | 371,000 | 426,878 | ||
$648,508 | ||||
Computer Software – 0.5% | ||||
Dell International LLC/EMC Corp., 4.9%, 10/01/2026 | $ | 634,000 | $ 731,689 | |
Microsoft Corp., 2.525%, 6/01/2050 | 523,000 | 513,838 | ||
Microsoft Corp., 2.921%, 3/17/2052 | 455,000 | 482,913 | ||
Microsoft Corp., 2.675%, 6/01/2060 | 228,000 | 225,798 | ||
VeriSign, Inc., 4.75%, 7/15/2027 | 766,000 | 812,918 | ||
$2,767,156 | ||||
Computer Software - Systems – 0.2% | ||||
Apple, Inc., 4.5%, 2/23/2036 | $ | 947,000 | $ 1,194,123 | |
Conglomerates – 0.6% | ||||
Carrier Global Corp., 2.722%, 2/15/2030 | $ | 402,000 | $ 416,760 | |
Carrier Global Corp., 3.577%, 4/05/2050 | 822,000 | 871,703 | ||
Grupo KUO S.A.B. de C.V., 5.75%, 7/07/2027 (n) | 919,000 | 959,896 | ||
Westinghouse Air Brake Technologies Corp., 4.95%, 9/15/2028 | 746,000 | 865,350 | ||
$3,113,709 | ||||
Consumer Products – 0.1% | ||||
JAB Holdings B.V., 2.25%, 12/19/2039 | EUR | 300,000 | $ 373,508 | |
Reckitt Benckiser Treasury Services PLC, 3%, 6/26/2027 (n) | $ | 425,000 | 459,790 | |
$833,298 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Consumer Services – 0.0% | ||||
Booking Holdings, Inc., 0.5%, 3/08/2028 | EUR | 100,000 | $ 119,471 | |
Electronics – 0.3% | ||||
Broadcom Corp./Broadcom Cayman Finance Ltd., 3.875%, 1/15/2027 | $ | 174,000 | $ 192,266 | |
Broadcom, Inc., 4.15%, 11/15/2030 | 240,000 | 269,140 | ||
Broadcom, Inc., 3.469%, 4/15/2034 (n) | 377,000 | 398,773 | ||
Infineon Technologies AG, 1.625%, 6/24/2029 | EUR | 500,000 | 638,289 | |
$1,498,468 | ||||
Emerging Market Quasi-Sovereign – 3.6% | ||||
China Construction Bank Corp., Hong Kong Branch, 1.25%, 8/04/2025 | $ | 900,000 | $ 895,104 | |
China Development Bank, 3.45%, 9/20/2029 | CNY | 52,570,000 | 8,090,927 | |
Emirates Development Bank PJSC, 1.639%, 6/15/2026 | $ | 970,000 | 974,792 | |
Export-Import Bank of India, 3.375%, 8/05/2026 | 600,000 | 639,053 | ||
Export-Import Bank of India, 3.875%, 2/01/2028 | 600,000 | 649,115 | ||
First Abu Dhabi Bank PJSC, 0.125%, 2/16/2026 | EUR | 600,000 | 707,879 | |
MDGH - GMTN B.V. (United Arab Emirates), 2.5%, 11/07/2024 | $ | 398,000 | 417,900 | |
MDGH - GMTN B.V. (United Arab Emirates), 1%, 3/10/2034 | EUR | 760,000 | 898,431 | |
MDGH - GMTN RSC Ltd., 2.5%, 6/03/2031 | $ | 830,000 | 839,337 | |
Ooredoo International Finance Ltd. (State of Qatar), 2.625%, 4/08/2031 | 470,000 | 475,508 | ||
PT Pertamina (Persero) (Republic of Indonesia), 3.65%, 7/30/2029 | 550,000 | 586,385 | ||
PT Pertamina (Persero) (Republic of Indonesia), 6%, 5/03/2042 (n) | 2,084,000 | 2,553,234 | ||
Qatar Petroleum, 2.25%, 7/12/2031 | 664,000 | 656,942 | ||
Qatar Petroleum, 3.125%, 7/12/2041 | 436,000 | 434,391 | ||
State Grid Overseas Investment (2016) Ltd. (People's Republic of China), 3.5%, 5/04/2027 | 1,007,000 | 1,107,766 | ||
$19,926,764 | ||||
Emerging Market Sovereign – 5.7% | ||||
Arab Republic of Egypt, 7.052%, 1/15/2032 | $ | 300,000 | $ 307,350 | |
Dominican Republic, 4.875%, 9/23/2032 | 750,000 | 772,500 | ||
Federative Republic of Brazil, 10%, 1/01/2023 | BRL | 16,000,000 | 3,339,499 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Emerging Market Sovereign – continued | ||||
Hellenic Republic (Republic of Greece), 1.875%, 2/04/2035 | EUR | 1,047,000 | $ 1,383,535 | |
Hellenic Republic (Republic of Greece), 1.875%, 1/24/2052 (n) | 620,000 | 771,144 | ||
Kingdom of Morocco, 2.375%, 12/15/2027 | $ | 450,000 | 441,864 | |
Oriental Republic of Uruguay, 4.375%, 1/23/2031 | 1,309,000 | 1,523,035 | ||
Oriental Republic of Uruguay, 8.25%, 5/21/2031 | UYU | 77,430,000 | 1,811,051 | |
Republic of China, 2.68%, 5/21/2030 | CNY | 14,680,000 | 2,186,284 | |
Republic of China, 3.81%, 9/14/2050 | 39,860,000 | 6,326,639 | ||
Republic of Cote d'Ivoire, 6.875%, 10/17/2040 | EUR | 600,000 | 776,121 | |
Republic of Croatia, 1.5%, 6/17/2031 | 3,200,000 | 3,950,123 | ||
Republic of Paraguay, 6.1%, 8/11/2044 (n) | $ | 750,000 | 932,257 | |
Republic of Philippines, 1.2%, 4/28/2033 | EUR | 464,000 | 549,511 | |
Republic of South Africa, 8%, 1/31/2030 | ZAR | 39,000,000 | 2,589,836 | |
Republic of South Africa, 8.25%, 3/31/2032 | 20,000,000 | 1,279,023 | ||
State of Qatar, 4%, 3/14/2029 (n) | $ | 462,000 | 531,651 | |
State of Qatar, 4.4%, 4/16/2050 | 200,000 | 243,430 | ||
United Mexican States, 2.659%, 5/24/2031 | 1,246,000 | 1,217,205 | ||
United Mexican States, 3.771%, 5/24/2061 | 534,000 | 496,353 | ||
$31,428,411 | ||||
Energy - Independent – 0.3% | ||||
Energean Israel Finance Ltd., 4.875%, 3/30/2026 | $ | 325,000 | $ 332,725 | |
Tengizchevroil Finance Co. International Ltd., 4%, 8/15/2026 (n) | 1,200,000 | 1,302,432 | ||
$1,635,157 | ||||
Energy - Integrated – 0.5% | ||||
BP Capital Markets B.V., 0.933%, 12/04/2040 | EUR | 191,000 | $ 210,074 | |
Eni S.p.A., 0.375%, 6/14/2028 | 330,000 | 392,356 | ||
Eni S.p.A., 4.25%, 5/09/2029 (n) | $ | 578,000 | 657,525 | |
Eni S.p.A., 2.625% to 1/13/2026, FLR (EUR Swap Rate - 5yr. + 3.167%) to 1/13/2031, FLR (EUR Swap Rate - 5yr. + 3.417%) to 1/13/2046, FLR (EUR Swap Rate - 5yr. + 4.167%) to 1/13/2170 | EUR | 119,000 | 148,124 | |
Galp Energia SGPS S.A., 2%, 1/15/2026 | 800,000 | 997,493 | ||
OMV AG, 0.75%, 6/16/2030 | 193,000 | 234,920 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Energy - Integrated – continued | ||||
OMV AG, 2.5% to 9/01/2026, FLR (EUR Swap Rate - 5yr. + 2.82%) to 9/01/2030, FLR (EUR Swap Rate - 5yr. + 3.82%) to 9/01/2170 | EUR | 200,000 | $ 247,991 | |
$2,888,483 | ||||
Entertainment – 0.1% | ||||
Royal Caribbean Cruises Ltd., 3.7%, 3/15/2028 | $ | 525,000 | $ 501,422 | |
Financial Institutions – 1.7% | ||||
Adler Group S.A., 2.75%, 11/13/2026 | EUR | 400,000 | $ 479,636 | |
Adler Group S.A., 2.25%, 1/14/2029 | 500,000 | 574,348 | ||
ADLER Group S.A., 2.25%, 4/27/2027 | 600,000 | 700,418 | ||
ADO Properties S.A., 3.25%, 8/05/2025 | 500,000 | 611,633 | ||
AerCap Ireland Capital DAC, 3.65%, 7/21/2027 | $ | 1,173,000 | 1,253,096 | |
Atrium European Real Estate Ltd., 3.625%, 5/04/2170 | EUR | 425,000 | 493,235 | |
Atrium Finance Issuer B.V., 2.625%, 9/05/2027 | 200,000 | 256,062 | ||
Avolon Holdings Funding Ltd., 4.25%, 4/15/2026 (n) | $ | 263,000 | 285,007 | |
Avolon Holdings Funding Ltd., 4.375%, 5/01/2026 (n) | 266,000 | 289,139 | ||
Avolon Holdings Funding Ltd., 2.75%, 2/21/2028 (n) | 335,000 | 331,465 | ||
CTP B.V., 2.125%, 10/01/2025 | EUR | 1,013,000 | 1,269,852 | |
CTP B.V., 0.75%, 2/18/2027 | 200,000 | 233,831 | ||
CTP N.V., 1.25%, 6/21/2029 | 370,000 | 433,548 | ||
Encore Capital Group, Inc., 4.25%, 6/01/2028 | GBP | 200,000 | 276,660 | |
EXOR N.V., 0.875%, 1/19/2031 | EUR | 275,000 | 323,114 | |
GE Capital International Funding Co., 3.373%, 11/15/2025 | $ | 959,000 | 1,046,392 | |
Logicor Financing S.à r.l., 0.875%, 1/14/2031 | EUR | 200,000 | 229,300 | |
Samhallsbyggnadsbolaget i Norden AB, 2.625%, 3/14/2170 | 300,000 | 355,725 | ||
Tritax EuroBox PLC, 0.95%, 6/02/2026 | 165,000 | 195,266 | ||
$9,637,727 | ||||
Food & Beverages – 0.8% | ||||
Anheuser-Busch InBev Worldwide, Inc., 4.375%, 4/15/2038 | $ | 206,000 | $ 246,287 | |
Anheuser-Busch InBev Worldwide, Inc., 5.55%, 1/23/2049 | 513,000 | 705,293 | ||
Aramark Services, Inc., 6.375%, 5/01/2025 (n) | 400,000 | 425,000 | ||
Bacardi Ltd., 5.15%, 5/15/2038 (n) | 335,000 | 414,567 | ||
Constellation Brands, Inc., 4.4%, 11/15/2025 | 481,000 | 542,487 | ||
Constellation Brands, Inc., 3.15%, 8/01/2029 | 776,000 | 832,182 | ||
JDE Peet's N.V., 0.5%, 1/16/2029 | EUR | 340,000 | 400,303 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Food & Beverages – continued | ||||
PT Indofood CBP Sukses Makmur Tbk, 3.398%, 6/09/2031 | $ | 950,000 | $ 963,618 | |
$4,529,737 | ||||
Gaming & Lodging – 0.2% | ||||
Hilton Domestic Operating Co., Inc., 3.625%, 2/15/2032 (n) | $ | 450,000 | $ 444,375 | |
Marriott International, Inc., 2.85%, 4/15/2031 | 499,000 | 506,730 | ||
Whitbread Group PLC, 3%, 5/31/2031 | GBP | 225,000 | 320,315 | |
$1,271,420 | ||||
Industrial – 0.4% | ||||
American Homes 4 Rent, L.P., 2.375%, 7/15/2031 | $ | 153,000 | $ 150,725 | |
CPI Property Group S.A., 2.75%, 1/22/2028 | GBP | 250,000 | 353,616 | |
CPI Property Group S.A., 3.75% to 7/27/2028, FLR (EUR Swap Rate - 5yr. + 4.338%) to 7/27/2033, FLR (EUR Swap Rate - 5yr. + 4.588%) to 7/27/2048, FLR (EUR Swap Rate - 5yr. + 5.338%) to 1/27/2170 | EUR | 550,000 | 639,942 | |
Trustees of the University of Pennsylvania, 2.396%, 10/01/2050 | $ | 845,000 | 808,163 | |
$1,952,446 | ||||
Insurance – 0.6% | ||||
Aflac, Inc., 3.6%, 4/01/2030 | $ | 539,000 | $ 607,177 | |
Argentum Zurich Insurance, 3.5% to 10/01/2026, FLR (EURIBOR - 3mo. + 3.95%) to 10/01/2046 | EUR | 300,000 | 405,238 | |
Assicurazioni Generali S.p.A., 1.713%, 6/30/2032 | 370,000 | 438,728 | ||
Aviva PLC, 3.875% to 7/03/2024, FLR (EUR Swap Rate - 5yr. + 3.48%) to 7/03/2044 | 350,000 | 457,891 | ||
Aviva PLC, 4% to 6/03/2035, FLR (GBP Government Yield - 5yr. + 4.7%) to 6/03/2055 | GBP | 475,000 | 731,274 | |
Credit Agricole Assurances S.A., 2%, 7/17/2030 | EUR | 300,000 | 372,433 | |
Zurich Finance (Ireland) DAC, 1.875% to 9/17/2030, FLR (EURIBOR - 3mo. + 2.95%) to 9/17/2050 | 386,000 | 481,370 | ||
$3,494,111 | ||||
Insurance - Property & Casualty – 0.6% | ||||
Berkshire Hathaway, Inc., 0.5%, 1/15/2041 | EUR | 175,000 | $ 185,660 | |
Berkshire Hathaway, Inc., 4.5%, 2/11/2043 | $ | 355,000 | 451,633 | |
Fairfax Financial Holdings Ltd., 4.625%, 4/29/2030 | 454,000 | 520,142 | ||
Hartford Financial Services Group, Inc., 3.6%, 8/19/2049 | 626,000 | 686,369 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Insurance - Property & Casualty – continued | ||||
Marsh & McLennan Cos., Inc., 2.25%, 11/15/2030 | $ | 340,000 | $ 344,370 | |
Progressive Corp., 4.125%, 4/15/2047 | 562,000 | 688,517 | ||
Willis North America, Inc., 3.875%, 9/15/2049 | 621,000 | 697,600 | ||
$3,574,291 | ||||
International Market Quasi-Sovereign – 0.6% | ||||
Deutsche Bahn Finance GmbH (Federal Republic of Germany), 0.625%, 12/08/2050 | EUR | 175,000 | $ 185,897 | |
Electricite de France S.A., 2.75%, 12/29/2049 | 400,000 | 476,672 | ||
Electricite de France S.A., 2.875% to 3/15/2027, FLR (EUR Swap Rate - 5yr. + 3.373%) to 3/15/2031, FLR (EUR Swap Rate - 5yr. + 3.623%) to 3/15/2047, FLR (EUR Swap Rate - 5yr. + 4.373%) to 3/15/2070 | 600,000 | 733,126 | ||
Electricite de France S.A., 5.875% to 1/22/2029, FLR (GBP Swap Rate - 15yr. + 3.046%) to 1/22/2049, FLR (GBP Swap Rate - 15yr. + 3.796%) to 12/31/2165 | GBP | 400,000 | 627,686 | |
Islandsbanki (Republic of Iceland), 1.125% to 1/19/2023, FLR (EUR Swap Rate - 1yr. + 0.75%) to 1/19/2024 | EUR | 330,000 | 396,740 | |
La Banque Postale S.A. (Republic of France), 0.875% to 1/26/2026, FLR (EUR Swap Rate - 5yr. + 1.38%) to 1/26/2031 | 300,000 | 356,497 | ||
Landsbankinn Bank (Republic of Iceland), 0.375%, 5/23/2025 | 306,000 | 361,772 | ||
$3,138,390 | ||||
International Market Sovereign – 14.0% | ||||
Belgium Kingdom, 1.45%, 6/22/2037 | EUR | 1,100,000 | $ 1,504,349 | |
Commonwealth of Australia, 1.75%, 6/21/2051 | AUD | 3,208,000 | 2,124,514 | |
Government of Bermuda, 2.375%, 8/20/2030 (n) | $ | 220,000 | 219,450 | |
Government of Japan, 1.7%, 3/20/2032 | JPY | 527,800,000 | 5,561,628 | |
Government of Japan, 2.4%, 3/20/2037 | 22,200,000 | 264,446 | ||
Government of Japan, 2.3%, 3/20/2040 | 1,100,900,000 | 13,269,365 | ||
Government of Japan, 0.6%, 9/20/2050 | 253,450,000 | 2,231,076 | ||
Kingdom of Belgium, 0.4%, 6/22/2040 (n) | EUR | 1,626,000 | 1,854,283 | |
Kingdom of Spain, 1.25%, 10/31/2030 (n) | 3,389,000 | 4,350,476 | ||
Kingdom of Spain, 1.85%, 7/30/2035 | 1,970,000 | 2,667,863 | ||
Kingdom of Spain, 1.2%, 10/31/2040 (n) | 699,000 | 840,796 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
International Market Sovereign – continued | ||||
Kingdom of Sweden, 0.125%, 5/12/2031 (n) | SEK | 7,810,000 | $ 891,245 | |
Republic of Cyprus, 0%, 2/09/2026 | EUR | 1,479,000 | 1,762,493 | |
Republic of Cyprus, 1.25%, 1/21/2040 | 3,007,000 | 3,635,636 | ||
Republic of Iceland, 5%, 11/15/2028 | ISK | 383,237,000 | 3,420,973 | |
Republic of Iceland, 6.5%, 1/24/2031 | 85,000,000 | 849,588 | ||
Republic of Italy, 0%, 4/01/2026 | EUR | 12,144,000 | 14,334,803 | |
Republic of Italy, 1.65%, 3/01/2032 | 6,365,000 | 8,146,616 | ||
Republic of Italy, 1.45%, 3/01/2036 | 4,258,000 | 5,203,017 | ||
United Kingdom Treasury, 0.375%, 10/22/2030 | GBP | 1,398,000 | 1,868,102 | |
United Kingdom Treasury, 1.75%, 9/07/2037 | 1,577,000 | 2,385,126 | ||
United Kingdom Treasury, 1.75%, 1/22/2049 | 305,000 | 472,516 | ||
$77,858,361 | ||||
Leisure & Toys – 0.0% | ||||
Ubisoft Entertainment S.A., 0.878%, 11/24/2027 | EUR | 200,000 | $ 235,750 | |
Local Authorities – 0.2% | ||||
Province of Alberta, 4.5%, 12/01/2040 | CAD | 665,000 | $ 693,331 | |
Province of British Columbia, 2.95%, 6/18/2050 | 300,000 | 261,118 | ||
$954,449 | ||||
Machinery & Tools – 0.3% | ||||
CNH Industrial Capital LLC, 1.875%, 1/15/2026 | $ | 611,000 | $ 621,359 | |
Sarens Finance Co. N.V., 5.75%, 2/21/2027 | EUR | 800,000 | 944,130 | |
$1,565,489 | ||||
Major Banks – 3.6% | ||||
Australia and New Zealand Banking Group Ltd., 2.57%, 11/25/2035 (n) | $ | 528,000 | $ 512,889 | |
Banco de Sabadell S.A., 0.875% to 6/16/2027, FLR (EUR ICE Swap Rate - 1yr. + 1.15%) to 6/16/2028 | EUR | 300,000 | 350,196 | |
Banco de Sabadell S.A., 2%, 1/17/2030 | 600,000 | 702,557 | ||
Banco de Sabadell S.A., 2.5%, 4/15/2031 | 600,000 | 715,434 | ||
Bank of America Corp., 3.5%, 4/19/2026 | $ | 1,079,000 | 1,188,690 | |
Bank of America Corp., 3.419% to 12/20/2027, FLR (LIBOR - 3mo. + 1.04%) to 12/20/2028 | 279,000 | 303,862 | ||
Bank of America Corp., 0.694% to 3/22/2030, FLR (EURIBOR - 3mo. + 0.79%) to 3/22/2031 | EUR | 350,000 | 413,735 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Major Banks – continued | ||||
Bank of America Corp., 2.687% to 4/22/2031, FLR (SOFR + 1.32%) to 4/22/2032 | $ | 917,000 | $ 943,405 | |
Bank of Ireland PLC, 0.375% to 5/10/2026, FLR (GBP Government Yield - 5yr. + 0.77%) to 5/10/2027 | EUR | 350,000 | 412,653 | |
Bankinter S.A., 1.25% to 12/23/2027, FLR (EUR Swap Rate - 5yr. +1.45%) to 12/23/2032 | 400,000 | 475,187 | ||
Barclays PLC, 1.125% to 3/22/2026, FLR (EUR Swap Rate - 5yr. + 1.55%) to 3/22/2031 | 250,000 | 297,911 | ||
CaixaBank S.A., 2.75% to 7/14/2023, FLR (EUR Swap Rate - 5yr. + 2.35%) to 7/14/2028 | 500,000 | 618,958 | ||
Commonwealth Bank of Australia, 2.688%, 3/11/2031 (n) | $ | 735,000 | 734,816 | |
Credit Agricole S.A., 1.625% to 6/05/2025, FLR (EUR Swap Rate - 5yr. + 1.9%) to 6/05/2030 | EUR | 500,000 | 615,773 | |
Credit Suisse Group AG, 3.091% to 5/14/2031, FLR (SOFR + 1.73%) to 5/14/2032 (n) | $ | 250,000 | 257,563 | |
Deutsche Bank AG, 3.729% to 1/14/2031, FLR (SOFR + 2.757%) to 1/14/2032 | 618,000 | 628,896 | ||
Erste Group Bank AG, 3.375% to 4/15/2027, FLR (EUR Swap Rate - 5yr. + 3.433%) to 10/15/2070 | EUR | 800,000 | 933,185 | |
HSBC Holdings PLC, 2.099% to 6/04/2025, FLR (SOFR + 1.929%) to 6/04/2026 | $ | 535,000 | 549,802 | |
HSBC Holdings PLC, 4.375%, 11/23/2026 | 1,304,000 | 1,470,390 | ||
HSBC Holdings PLC, 4% to 9/09/2026, FLR (CMT - 1yr. + 3.222%) to 9/09/2169 | 417,000 | 423,776 | ||
JPMorgan Chase & Co., 3.54%, 5/01/2028 | 605,000 | 665,176 | ||
JPMorgan Chase & Co., 3.109% to 4/22/2050, FLR (SOFR + 2.44%) to 4/22/2051 | 669,000 | 690,211 | ||
Mitsubishi UFJ Financial Group, Inc., 1.412%, 7/17/2025 | 808,000 | 815,715 | ||
Morgan Stanley, 1.593% to 5/04/2026, FLR (SOFR + 0.879%) to 5/04/2027 | 1,146,000 | 1,154,108 | ||
Morgan Stanley, 3.622% to 4/01/2030, FLR (SOFR + 3.12%) to 4/01/2031 | 276,000 | 308,086 | ||
NatWest Group PLC, 2.105% to 11/28/2026, FLR (GBP Government Yield - 5yr. + 1.75%) to 11/28/2031 | GBP | 470,000 | 653,276 | |
Nordea Bank Abp, 0.625% to 8/18/2026, FLR (EUR Swap Rate - 5yr. + 0.92%) to 8/18/2031 | EUR | 620,000 | 733,355 | |
Royal Bank of Canada, 2.55%, 7/16/2024 | $ | 384,000 | 404,947 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Major Banks – continued | ||||
UBS Group AG, 4.375% to 2/10/2031, FLR (CMT - 1yr. + 3.313%) to 8/10/2069 (n) | $ | 650,000 | $ 664,105 | |
UniCredit S.p.A., 2.2% to 7/22/2026, FLR (EURIBOR - 3mo. + 2.55%) to 7/22/2027 | EUR | 787,000 | 991,892 | |
UniCredit S.p.A., 0.8%, 7/05/2029 | 225,000 | 267,333 | ||
$19,897,882 | ||||
Medical & Health Technology & Services – 0.7% | ||||
Alcon, Inc., 3.8%, 9/23/2049 (n) | $ | 626,000 | $ 695,644 | |
Becton Dickinson Euro Finance S.à r.l., 1.213%, 2/12/2036 | EUR | 100,000 | 117,308 | |
HCA, Inc., 5.25%, 6/15/2026 | $ | 559,000 | 647,076 | |
HCA, Inc., 5.125%, 6/15/2039 | 195,000 | 243,580 | ||
Laboratory Corp. of America Holdings, 3.6%, 2/01/2025 | 550,000 | 594,950 | ||
Memorial Sloan-Kettering Cancer Center, 2.955%, 1/01/2050 | 350,000 | 355,496 | ||
New York Society for the Relief of the Ruptured & Crippled, 2.667%, 10/01/2050 | 650,000 | 608,616 | ||
ProMedica Toledo Hospital, “B”, AGM, 6.015%, 11/15/2048 | 309,000 | 443,325 | ||
$3,705,995 | ||||
Metals & Mining – 0.2% | ||||
Anglo American Capital PLC, 5.625%, 4/01/2030 (n) | $ | 326,000 | $ 398,869 | |
Glencore Funding LLC, 2.85%, 4/27/2031 (n) | 590,000 | 599,992 | ||
$998,861 | ||||
Midstream – 0.7% | ||||
Enterprise Products Partners LP, 3.125%, 7/31/2029 | $ | 446,000 | $ 481,206 | |
Galaxy Pipeline Assets Bidco Ltd., 2.16%, 3/31/2034 (n) | 548,000 | 537,752 | ||
MPLX LP, 4.5%, 4/15/2038 | 523,000 | 600,119 | ||
Plains All American Pipeline LP/PAA Finance Corp., 3.55%, 12/15/2029 | 647,000 | 681,306 | ||
Sabine Pass Liquefaction LLC, 5%, 3/15/2027 | 356,000 | 411,088 | ||
Sabine Pass Liquefaction LLC, 4.2%, 3/15/2028 | 730,000 | 824,411 | ||
Sabine Pass Liquefaction LLC, 4.5%, 5/15/2030 | 335,000 | 386,608 | ||
$3,922,490 | ||||
Mortgage-Backed – 4.8% | ||||
Fannie Mae, 4.5%, 7/01/2023-2/01/2046 | $ | 3,953,925 | $ 4,379,123 | |
Fannie Mae, 5%, 3/01/2036-8/01/2040 | 1,285,111 | 1,463,729 | ||
Fannie Mae, 5.5%, 11/01/2036-4/01/2037 | 105,467 | 122,065 | ||
Fannie Mae, 6%, 9/01/2037-6/01/2038 | 152,838 | 179,210 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mortgage-Backed – continued | ||||
Fannie Mae, 4%, 11/01/2040-12/01/2040 | $ | 915,609 | $ 1,002,962 | |
Fannie Mae, 3.5%, 5/01/2043-12/01/2046 | 1,903,139 | 2,057,974 | ||
Fannie Mae, UMBS, 2.5%, 6/01/2050-7/01/2050 | 286,352 | 300,163 | ||
Fannie Mae, UMBS, 2%, 1/01/2051-2/01/2051 | 624,880 | 632,924 | ||
Freddie Mac, 4%, 7/01/2025 | 51,358 | 54,582 | ||
Freddie Mac, 1.481%, 3/25/2027 (i) | 809,000 | 59,247 | ||
Freddie Mac, 3.224%, 3/25/2027 | 4,000,000 | 4,428,560 | ||
Freddie Mac, 3.286%, 11/25/2027 | 1,303,000 | 1,455,968 | ||
Freddie Mac, 3.9%, 4/25/2028 | 400,000 | 463,517 | ||
Freddie Mac, 1.915%, 4/25/2030 (i) | 1,420,926 | 204,756 | ||
Freddie Mac, 1.984%, 4/25/2030 (i) | 1,365,340 | 205,526 | ||
Freddie Mac, 1.765%, 5/25/2030 (i) | 1,747,943 | 235,805 | ||
Freddie Mac, 1.906%, 5/25/2030 (i) | 3,920,368 | 571,675 | ||
Freddie Mac, 1.436%, 6/25/2030 (i) | 1,615,349 | 178,964 | ||
Freddie Mac, 1.704%, 8/25/2030 (i) | 1,436,842 | 191,453 | ||
Freddie Mac, 1.262%, 9/25/2030 (i) | 905,456 | 89,633 | ||
Freddie Mac, 1.172%, 11/25/2030 (i) | 1,823,916 | 169,362 | ||
Freddie Mac, 0.423%, 1/25/2031 (i) | 6,731,468 | 186,156 | ||
Freddie Mac, 0.625%, 3/25/2031 (i) | 8,193,498 | 370,936 | ||
Freddie Mac, 5.5%, 5/01/2034-7/01/2037 | 27,614 | 32,015 | ||
Freddie Mac, 5%, 10/01/2036-7/01/2041 | 396,618 | 452,407 | ||
Freddie Mac, 4.5%, 12/01/2039-5/01/2042 | 727,470 | 808,732 | ||
Freddie Mac, 3.5%, 1/01/2047 | 437,346 | 465,047 | ||
Freddie Mac, UMBS, 3%, 6/01/2050 | 63,107 | 67,044 | ||
Ginnie Mae, 5%, 5/15/2040 | 62,065 | 71,171 | ||
Ginnie Mae, 3.5%, 6/20/2043 | 647,964 | 695,688 | ||
Ginnie Mae, 2.5%, 6/20/2051-7/20/2051 | 500,000 | 518,447 | ||
Ginnie Mae, 3%, 6/20/2051 | 100,000 | 105,039 | ||
Ginnie Mae, TBA, 2.5%, 7/15/2051 | 475,000 | 491,551 | ||
Ginnie Mae, TBA, 2%, 7/21/2051 | 400,000 | 407,375 | ||
Ginnie Mae, TBA, 3%, 7/21/2051 | 275,000 | 286,929 | ||
UMBS, TBA, 2.5%, 7/14/2051 | 600,000 | 620,578 | ||
UMBS, TBA, 2%, 7/25/2051 | 1,000,000 | 1,009,688 | ||
UMBS, TBA, 3%, 7/25/2051-8/12/2051 | 1,800,000 | 1,875,789 | ||
$26,911,790 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Municipals – 0.7% | ||||
Commonwealth of Puerto Rico, Public Improvement, “C-7”, NPFG, 6%, 7/01/2027 | $ | 55,000 | $ 56,937 | |
Massachusetts Educational Financing Authority, Education Loan Subordinate Rev., “A”, 2.641%, 7/01/2037 (w) | 695,000 | 698,194 | ||
Michigan Finance Authority Hospital Rev. (Trinity Health Credit Group), 3.384%, 12/01/2040 | 480,000 | 524,684 | ||
New Jersey Economic Development Authority State Pension Funding Rev., “A”, NPFG, 7.425%, 2/15/2029 | 421,000 | 545,971 | ||
Oklahoma Development Finance Authority, Health System Rev. (OU Medicine Project), “C”, 5.45%, 8/15/2028 | 275,000 | 307,493 | ||
Oklahoma Development Finance Authority, Health System Rev. (OU Medicine Project), “C”, AGM, 4.65%, 8/15/2030 | 572,000 | 665,913 | ||
Puerto Rico Electric Power Authority Rev., “PP”, NPFG, 5%, 7/01/2022 | 245,000 | 248,801 | ||
State of Florida, “A”, 2.154%, 7/01/2030 | 650,000 | 662,690 | ||
$3,710,683 | ||||
Natural Gas - Distribution – 0.3% | ||||
National Grid PLC, 1.125%, 1/14/2033 | GBP | 487,000 | $ 615,618 | |
NiSource, Inc., 2.95%, 9/01/2029 | $ | 534,000 | 565,636 | |
NiSource, Inc., 3.6%, 5/01/2030 | 429,000 | 474,992 | ||
$1,656,246 | ||||
Natural Gas - Pipeline – 0.3% | ||||
APT Pipelines Ltd., 1.25%, 3/15/2033 | EUR | 725,000 | $ 853,608 | |
APT Pipelines Ltd., 5%, 3/23/2035 (n) | $ | 615,000 | 754,313 | |
$1,607,921 | ||||
Network & Telecom – 0.2% | ||||
AT&T, Inc., 3.5%, 9/15/2053 (n) | $ | 403,000 | $ 404,882 | |
Verizon Communications, Inc., 2.1%, 3/22/2028 | 291,000 | 297,087 | ||
Verizon Communications, Inc., 4%, 3/22/2050 | 349,000 | 400,797 | ||
$1,102,766 | ||||
Oil Services – 0.1% | ||||
Halliburton Co., 5%, 11/15/2045 | $ | 365,000 | $ 444,699 | |
Oils – 0.3% | ||||
PBF Holding Co. LLC/PBF Finance Corp., 7.25%, 6/15/2025 | $ | 575,000 | $ 437,000 | |
Phillips 66, 4.875%, 11/15/2044 | 290,000 | 360,549 | ||
Puma International Financing S.A., 5%, 1/24/2026 | 475,000 | 479,038 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Oils – continued | ||||
Valero Energy Corp., 4.9%, 3/15/2045 | $ | 506,000 | $ 632,299 | |
$1,908,886 | ||||
Other Banks & Diversified Financials – 1.8% | ||||
Alpha Bank, 4.25%, 2/13/2030 | EUR | 700,000 | $ 811,350 | |
Bank of Cyprus PCL, 2.5% to 6/24/2021, FLR (EUR Swap Rate - 5yr. + 2.785%) to 6/24/2027 | 790,000 | 918,195 | ||
Banque Fédérative du Crédit Mutuel, 0.625%, 11/03/2028 | 500,000 | 594,045 | ||
Deutsche Bank AG, 2.625%, 12/16/2024 | GBP | 400,000 | 577,651 | |
Deutsche Bank AG, 1.875% to 12/22/2027, FLR (SONIA + 1.634%) to 12/22/2028 | 100,000 | 138,025 | ||
Deutsche Bank AG, 1.375% to 2/17/2031, FLR (EURIBOR - 3mo. + 1.5%) to 2/17/2032 | EUR | 300,000 | 360,670 | |
Deutsche Bank AG, 4.625% to 4/30/2028, FLR (EUR Swap Rate - 5yr. + 4.74%) to 5/12/2170 | 800,000 | 985,850 | ||
Groupe BPCE S.A., 4.5%, 3/15/2025 (n) | $ | 584,000 | 643,450 | |
Intesa Sanpaolo S.p.A., 4.125%, 2/27/2070 | EUR | 350,000 | 404,118 | |
Macquarie Group Ltd., 0.35%, 3/03/2028 | 350,000 | 408,791 | ||
Macquarie Group Ltd., 0.95%, 5/21/2031 | 820,000 | 971,181 | ||
Mizrahi Tefahot Bank Ltd., 3.077% to 4/07/2026, FLR (CMT - 5yr. + 2.25%) to 4/07/2031 (n) | $ | 554,000 | 559,540 | |
Stichting AK Rabobank Certificaten, 2.188%, 3/29/2071 | EUR | 750,000 | 1,196,659 | |
UBS AG, 5.125%, 5/15/2024 | $ | 866,000 | 954,765 | |
Virgin Money UK PLC, 5.125% to 12/11/2025, FLR (GBP Government Yield - 5yr. + 5.25%) to 12/11/2030 | GBP | 475,000 | 732,500 | |
$10,256,790 | ||||
Printing & Publishing – 0.2% | ||||
Informa PLC, 3.125%, 7/05/2026 | GBP | 500,000 | $ 736,676 | |
Informa PLC, 1.25%, 4/22/2028 | EUR | 350,000 | 422,363 | |
$1,159,039 | ||||
Railroad & Shipping – 0.2% | ||||
Wabtec Transportation Netherlands B.V., 1.25%, 12/03/2027 | EUR | 825,000 | $ 986,109 | |
Real Estate – 0.4% | ||||
Canary Wharf Group, 3.375%, 4/23/2028 | GBP | 551,000 | $ 768,870 | |
VGP Group LLC, 1.5%, 4/08/2029 | EUR | 500,000 | 584,854 | |
Vonovia SE, 1.5%, 6/14/2041 | 500,000 | 598,092 | ||
$1,951,816 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Real Estate - Office – 0.3% | ||||
Boston Properties, Inc., REIT, 2.55%, 4/01/2032 | $ | 723,000 | $ 727,481 | |
Corporate Office Property LP, 2.25%, 3/15/2026 | 356,000 | 365,753 | ||
Corporate Office Property LP, 2.75%, 4/15/2031 | 490,000 | 493,698 | ||
$1,586,932 | ||||
Real Estate - Other – 0.3% | ||||
Lexington Realty Trust Co., 2.7%, 9/15/2030 | $ | 466,000 | $ 473,690 | |
Sun Communities, Inc., 2.7%, 7/15/2031 | 296,000 | 295,970 | ||
W.P. Carey, Inc., REIT, 2.4%, 2/01/2031 | 681,000 | 677,428 | ||
$1,447,088 | ||||
Real Estate - Retail – 0.6% | ||||
Brixmor Operating Partnership LP, REIT, 4.05%, 7/01/2030 | $ | 610,000 | $ 682,503 | |
Hammerson Ireland Finance DAC, 1.75%, 6/03/2027 | EUR | 437,000 | 518,820 | |
Regency Centers Corp., 3.7%, 6/15/2030 | $ | 745,000 | 824,120 | |
Spirit Realty, LP, 3.2%, 1/15/2027 | 268,000 | 285,010 | ||
STORE Capital Corp., 2.75%, 11/18/2030 | 786,000 | 791,200 | ||
$3,101,653 | ||||
Retailers – 0.6% | ||||
Best Buy Co., Inc., 1.95%, 10/01/2030 | $ | 702,000 | $ 680,900 | |
Home Depot, Inc., 3%, 4/01/2026 | 525,000 | 572,349 | ||
Home Depot, Inc., 4.875%, 2/15/2044 | 453,000 | 604,987 | ||
Kohl's Corp., 3.375%, 5/01/2031 | 539,000 | 558,009 | ||
MercadoLibre, Inc., 3.125%, 1/14/2031 | 683,000 | 669,367 | ||
$3,085,612 | ||||
Specialty Stores – 0.1% | ||||
Nordstrom, Inc., 4.25%, 8/01/2031 (n) | $ | 438,000 | $ 456,176 | |
Supermarkets – 0.1% | ||||
Loblaw Cos. Ltd., 4.86%, 9/12/2023 | CAD | 680,000 | $ 588,626 | |
Supranational – 0.6% | ||||
Corporacion Andina de Fomento, 1.625%, 9/23/2025 | $ | 530,000 | $ 534,093 | |
European Financial Stability Facility, 0.05%, 1/18/2052 | EUR | 653,000 | 648,428 | |
European Investment Bank, 0.05%, 1/27/2051 | 563,000 | 566,363 | ||
International Bank for Reconstruction and Development, 4.25%, 6/24/2025 | AUD | 465,000 | 395,790 | |
West African Development Bank, 4.7%, 10/22/2031 | $ | 900,000 | 972,720 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Supranational – continued | ||||
West African Development Bank, 2.75%, 1/22/2033 | EUR | 340,000 | $ 421,994 | |
$3,539,388 | ||||
Telecommunications - Wireless – 0.7% | ||||
American Tower Corp., REIT, 4.7%, 3/15/2022 | $ | 257,000 | $ 264,996 | |
American Tower Corp., REIT, 3.5%, 1/31/2023 | 662,000 | 693,518 | ||
American Tower Corp., REIT, 3.6%, 1/15/2028 | 301,000 | 331,067 | ||
Crown Castle International Corp., 1.35%, 7/15/2025 | 285,000 | 286,940 | ||
Crown Castle International Corp., 3.7%, 6/15/2026 | 345,000 | 379,383 | ||
Millicom International Cellular S.A., 4.5%, 4/27/2031 (n) | 400,000 | 414,000 | ||
Rogers Communications, Inc., 3.7%, 11/15/2049 | 316,000 | 336,395 | ||
Vodafone Group PLC, 3.25% to 9/4/2026, FLR (CMT - 5yr. + 2.447%) to 9/4/2031, FLR (CMT - 5yr. + 2.697%) to 9/4/2046, FLR (CMT - 5yr. + 3.447%) to 6/04/2081 | 1,223,000 | 1,230,093 | ||
$3,936,392 | ||||
Telephone Services – 0.3% | ||||
Iliad S.A., 2.375%, 6/17/2026 | EUR | 200,000 | $ 243,287 | |
Iliad S.A., 1.875%, 2/11/2028 | 300,000 | 350,073 | ||
TELUS Corp., 2.85%, 11/13/2031 | CAD | 1,000,000 | 808,955 | |
$1,402,315 | ||||
Tobacco – 0.1% | ||||
B.A.T. International Finance PLC, 2.25%, 6/26/2028 | GBP | 223,000 | $ 309,139 | |
Transportation - Services – 0.6% | ||||
Element Fleet Management Corp., 1.6%, 4/06/2024 (n) | $ | 1,059,000 | $ 1,076,229 | |
ERAC USA Finance LLC, 7%, 10/15/2037 (n) | 494,000 | 736,983 | ||
Promontoria Holding 264 B.V., 6.75%, 8/15/2023 | EUR | 700,000 | 817,699 | |
Vinci S.A., 3.75%, 4/10/2029 (n) | $ | 706,000 | 796,732 | |
$3,427,643 | ||||
U.S. Government Agencies and Equivalents – 0.1% | ||||
Small Business Administration, 5.31%, 5/01/2027 | $ | 23,789 | $ 25,639 | |
Small Business Administration, 2.22%, 3/01/2033 | 783,223 | 809,641 | ||
$835,280 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Treasury Obligations – 1.6% | ||||
U.S. Treasury Bonds, 2.25%, 8/15/2049 | $ | 369,300 | $ 382,572 | |
U.S. Treasury Bonds, 2.375%, 11/15/2049 (f) | 2,007,000 | 2,137,141 | ||
U.S. Treasury Notes, 1.25%, 3/31/2028 | 2,356,700 | 2,365,998 | ||
U.S. Treasury Notes, 1.125%, 8/15/2040 (f) | 4,795,000 | 4,125,198 | ||
$9,010,909 | ||||
Utilities - Electric Power – 2.3% | ||||
Adani Green Energy (UP) Ltd./Prayatna Developers Private Ltd., 6.25%, 12/10/2024 (n) | $ | 731,000 | $ 808,851 | |
American Electric Power Co., Inc., 2.3%, 3/01/2030 | 706,000 | 713,534 | ||
ContourGlobal Power Holdings S.A., 3.125%, 1/01/2028 | EUR | 475,000 | 570,131 | |
Duke Energy Corp., 2.55%, 6/15/2031 | $ | 920,000 | 930,969 | |
Enel Americas S.A., 4%, 10/25/2026 | 1,891,000 | 2,059,299 | ||
Enel Finance International N.V., 3.5%, 4/06/2028 (n) | 414,000 | 453,290 | ||
Enel Finance International N.V., 0.5%, 6/17/2030 | EUR | 500,000 | 592,594 | |
Enel Finance International N.V., 4.75%, 5/25/2047 (n) | $ | 343,000 | 421,119 | |
Enel S.p.A., 2.25% to 3/10/2027, FLR (EUR Swap Rate - 5yr. + 2.679%) to 3/10/2032, FLR (EUR Swap Rate - 5yr. + 2.929%) to 3/10/2047, FLR (EUR Swap Rate - 5yr. + 3.679%) to 3/10/2070 | EUR | 425,000 | 527,035 | |
Enel S.p.A., 1.875% to 9/08/2030, FLR (EUR Swap Rate - 5yr. + 2.011%) to 9/08/2035, FLR (EUR Swap Rate - 5yr. + 2.261%) to 9/08/2050, FLR (EUR Swap Rate - 5yr. + 3.011%) to 3/08/2170 | 525,000 | 611,625 | ||
ENGIE Energía Chile S.A., 4.5%, 1/29/2025 (n) | $ | 1,180,000 | 1,288,738 | |
Evergy, Inc., 2.9%, 9/15/2029 | 615,000 | 651,726 | ||
FirstEnergy Corp., 2.65%, 3/01/2030 | 566,000 | 563,719 | ||
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n) | 427,000 | 433,444 | ||
NextEra Energy Operating Co., 4.5%, 9/15/2027 (n) | 300,000 | 324,645 | ||
Southern California Edison Co.'s First & Refunding Mortgage Bonds, 3.65%, 2/01/2050 | 252,000 | 252,021 | ||
Virginia Electric & Power Co., 3.5%, 3/15/2027 | 1,005,000 | 1,112,684 | ||
Virginia Electric & Power Co., 2.875%, 7/15/2029 | 217,000 | 233,091 | ||
$12,548,515 | ||||
Total Bonds (Identified Cost, $336,802,680) | $344,599,668 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 34.5% | ||||
Aerospace & Defense – 1.0% | ||||
Honeywell International, Inc. (f) | 9,535 | $ 2,091,502 | ||
L3Harris Technologies, Inc. | 4,383 | 947,385 | ||
Lockheed Martin Corp. (f) | 3,782 | 1,430,920 | ||
Northrop Grumman Corp. | 2,402 | 872,959 | ||
$5,342,766 | ||||
Alcoholic Beverages – 0.9% | ||||
Diageo PLC | 38,513 | $ 1,843,849 | ||
Heineken N.V. | 12,028 | 1,457,597 | ||
Pernod Ricard S.A. | 6,797 | 1,508,747 | ||
$4,810,193 | ||||
Apparel Manufacturers – 0.5% | ||||
Adidas AG | 3,095 | $ 1,151,980 | ||
Compagnie Financiere Richemont S.A. | 12,376 | 1,497,426 | ||
$2,649,406 | ||||
Automotive – 0.8% | ||||
Aptiv PLC (a) | 5,864 | $ 922,583 | ||
Lear Corp. | 4,934 | 864,832 | ||
LKQ Corp. (a) | 21,618 | 1,064,038 | ||
Magna International, Inc. | 15,066 | 1,394,905 | ||
Yutong Bus Co. Ltd., “A” | 63,700 | 123,132 | ||
$4,369,490 | ||||
Biotechnology – 0.1% | ||||
Gilead Sciences, Inc. | 6,326 | $ 435,608 | ||
Brokerage & Asset Managers – 0.9% | ||||
BlackRock, Inc. | 1,227 | $ 1,073,588 | ||
Cboe Global Markets, Inc. | 8,198 | 975,972 | ||
Charles Schwab Corp. (f) | 28,511 | 2,075,886 | ||
IG Group Holdings PLC | 14,607 | 171,144 | ||
NASDAQ, Inc. | 5,517 | 969,888 | ||
$5,266,478 | ||||
Business Services – 1.6% | ||||
Accenture PLC, “A” (s) | 6,612 | $ 1,949,151 | ||
Amdocs Ltd. | 11,299 | 874,091 | ||
CGI, Inc. (a) | 13,436 | 1,218,193 | ||
Equifax, Inc. | 2,736 | 655,299 | ||
Experian PLC | 16,974 | 654,157 | ||
Fidelity National Information Services, Inc. | 7,192 | 1,018,891 | ||
Fiserv, Inc. (a)(f) | 9,898 | 1,057,997 | ||
Nomura Research Institute Ltd. | 19,200 | 635,132 | ||
Secom Co. Ltd. | 13,600 | 1,033,695 | ||
$9,096,606 | ||||
Cable TV – 0.5% | ||||
Comcast Corp., “A” (f) | 51,740 | $ 2,950,215 | ||
Chemicals – 0.7% | ||||
3M Co. (f) | 6,855 | $ 1,361,609 | ||
Eastman Chemical Co. | 4,111 | 479,959 | ||
PPG Industries, Inc. (f) | 12,348 | 2,096,320 | ||
$3,937,888 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Computer Software – 0.2% | ||||
Adobe Systems, Inc. (a) | 380 | $ 222,543 | ||
Microsoft Corp. | 4,415 | 1,196,024 | ||
$1,418,567 | ||||
Computer Software - Systems – 1.5% | ||||
Amadeus IT Group S.A. (a) | 16,699 | $ 1,174,586 | ||
Asustek Computer, Inc. | 13,000 | 173,333 | ||
Compal Electronics | 175,000 | 140,377 | ||
Fujitsu Ltd. | 9,600 | 1,797,380 | ||
Hitachi Ltd. | 37,900 | 2,170,052 | ||
Hon Hai Precision Industry Co. Ltd. | 176,000 | 707,474 | ||
Samsung Electronics Co. Ltd. | 29,440 | 2,109,673 | ||
$8,272,875 | ||||
Construction – 0.6% | ||||
D.R. Horton, Inc. | 1,719 | $ 155,346 | ||
Masco Corp. | 19,444 | 1,145,446 | ||
Stanley Black & Decker, Inc. | 4,979 | 1,020,645 | ||
Vulcan Materials Co. | 5,378 | 936,149 | ||
$3,257,586 | ||||
Consumer Products – 1.1% | ||||
Colgate-Palmolive Co. (f) | 33,443 | $ 2,720,588 | ||
Kimberly-Clark Corp. (f) | 13,477 | 1,802,953 | ||
Reckitt Benckiser Group PLC | 15,336 | 1,357,078 | ||
$5,880,619 | ||||
Containers – 0.1% | ||||
Graphic Packaging Holding Co. | 37,542 | $ 681,012 | ||
Electrical Equipment – 1.4% | ||||
Johnson Controls International PLC | 25,176 | $ 1,727,829 | ||
Legrand S.A. | 8,860 | 937,743 | ||
Schneider Electric SE | 29,270 | 4,604,912 | ||
Yokogawa Electric Corp. | 32,400 | 484,126 | ||
$7,754,610 | ||||
Electronics – 2.0% | ||||
Analog Devices, Inc. | 3,745 | $ 644,739 | ||
Intel Corp. | 36,015 | 2,021,882 | ||
Kyocera Corp. | 12,300 | 760,398 | ||
NXP Semiconductors N.V. | 6,147 | 1,264,561 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 31,933 | 3,837,069 | ||
Texas Instruments, Inc. (f) | 14,561 | 2,800,081 | ||
$11,328,730 | ||||
Energy - Independent – 0.4% | ||||
China Shenhua Energy Co. Ltd. | 201,500 | $ 394,991 | ||
ConocoPhillips | 17,814 | 1,084,873 | ||
Hess Corp. | 6,836 | 596,919 | ||
$2,076,783 | ||||
Energy - Integrated – 0.4% | ||||
China Petroleum & Chemical Corp. | 2,778,000 | $ 1,406,121 | ||
Eni S.p.A. | 42,955 | 523,091 | ||
LUKOIL PJSC, ADR | 1,131 | 104,753 | ||
$2,033,965 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Engineering - Construction – 0.0% | ||||
Quanta Services, Inc. | 2,640 | $ 239,105 | ||
Food & Beverages – 1.4% | ||||
Danone S.A. | 22,362 | $ 1,574,240 | ||
General Mills, Inc. (f) | 30,426 | 1,853,856 | ||
J.M. Smucker Co. | 13,690 | 1,773,813 | ||
Nestle S.A. | 21,557 | 2,684,461 | ||
$7,886,370 | ||||
Food & Drug Stores – 0.2% | ||||
Albertsons Cos., Inc., “A” (l) | 14,906 | $ 293,052 | ||
Tesco PLC | 356,519 | 1,099,529 | ||
$1,392,581 | ||||
General Merchandise – 0.1% | ||||
Bim Birlesik Magazalar A.S. | 40,728 | $ 290,722 | ||
Walmart de Mexico S.A.B. de C.V. | 110,467 | 360,595 | ||
$651,317 | ||||
Health Maintenance Organizations – 0.3% | ||||
Cigna Corp. | 7,295 | $ 1,729,426 | ||
Insurance – 2.1% | ||||
Aon PLC (s) | 12,167 | $ 2,904,993 | ||
Chubb Ltd. | 11,363 | 1,806,035 | ||
Equitable Holdings, Inc. | 20,097 | 611,954 | ||
Hartford Financial Services Group, Inc. | 6,594 | 408,630 | ||
Manulife Financial Corp. | 92,797 | 1,826,595 | ||
Marsh & McLennan Cos., Inc. | 6,600 | 928,488 | ||
MetLife, Inc. | 10,678 | 639,078 | ||
NN Group N.V. | 4,577 | 215,893 | ||
Samsung Fire & Marine Insurance Co. Ltd. | 3,677 | 719,956 | ||
Travelers Cos., Inc. | 8,707 | 1,303,525 | ||
Willis Towers Watson PLC | 1,451 | 333,759 | ||
$11,698,906 | ||||
Leisure & Toys – 0.1% | ||||
Brunswick Corp. | 3,212 | $ 319,979 | ||
Machinery & Tools – 1.1% | ||||
Eaton Corp. PLC | 24,073 | $ 3,567,137 | ||
Ingersoll Rand, Inc. (a) | 28,635 | 1,397,675 | ||
Kubota Corp. (l) | 55,800 | 1,128,607 | ||
$6,093,419 | ||||
Major Banks – 3.1% | ||||
Bank of America Corp. | 57,750 | $ 2,381,033 | ||
BNP Paribas | 19,713 | 1,235,820 | ||
China Construction Bank Corp. | 805,000 | 633,483 | ||
DBS Group Holdings Ltd. | 81,100 | 1,797,866 | ||
Goldman Sachs Group, Inc. (f) | 6,208 | 2,356,122 | ||
JPMorgan Chase & Co. (f) | 19,715 | 3,066,471 | ||
Mitsubishi UFJ Financial Group, Inc. | 220,400 | 1,190,531 | ||
NatWest Group PLC | 578,699 | 1,626,645 | ||
UBS Group AG | 200,353 | 3,066,197 | ||
$17,354,168 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Medical & Health Technology & Services – 0.3% | ||||
HCA Healthcare, Inc. | 3,041 | $ 628,696 | ||
Quest Diagnostics, Inc. | 6,143 | 810,692 | ||
$1,439,388 | ||||
Medical Equipment – 1.2% | ||||
Becton, Dickinson and Co. | 5,285 | $ 1,285,259 | ||
Boston Scientific Corp. (a) | 28,669 | 1,225,886 | ||
Danaher Corp. (f) | 4,405 | 1,182,126 | ||
Medtronic PLC | 16,045 | 1,991,666 | ||
Thermo Fisher Scientific, Inc. | 1,693 | 854,068 | ||
$6,539,005 | ||||
Metals & Mining – 0.4% | ||||
ArcelorMittal S.A. | 5,322 | $ 163,128 | ||
Fortescue Metals Group Ltd. | 37,597 | 658,092 | ||
MMC Norilsk Nickel PJSC, ADR | 4,533 | 154,439 | ||
POSCO | 438 | 135,350 | ||
Rio Tinto PLC | 13,365 | 1,099,839 | ||
Vale S.A. | 13,800 | 314,217 | ||
$2,525,065 | ||||
Natural Gas - Distribution – 0.1% | ||||
Italgas S.p.A. | 35,996 | $ 235,265 | ||
UGI Corp. | 3,021 | 139,902 | ||
$375,167 | ||||
Natural Gas - Pipeline – 0.1% | ||||
Enterprise Products Partners LP | 13,634 | $ 328,988 | ||
Other Banks & Diversified Financials – 0.9% | ||||
Citigroup, Inc. | 4,907 | $ 347,170 | ||
KB Financial Group, Inc. | 4,062 | 201,269 | ||
KBC Group N.V. | 12,149 | 926,285 | ||
Sberbank of Russia PJSC, ADR | 28,120 | 466,933 | ||
SLM Corp. | 16,749 | 350,724 | ||
Synchrony Financial | 3,940 | 191,169 | ||
Tisco Financial Group PLC | 118,300 | 326,663 | ||
Truist Financial Corp. | 35,751 | 1,984,181 | ||
$4,794,394 | ||||
Pharmaceuticals – 3.5% | ||||
Bayer AG | 28,774 | $ 1,747,222 | ||
Eli Lilly & Co. (f) | 5,981 | 1,372,759 | ||
Johnson & Johnson (f) | 34,586 | 5,697,698 | ||
Merck & Co., Inc. (f) | 33,426 | 2,599,540 | ||
Novartis AG | 10,298 | 938,479 | ||
Novo Nordisk A.S., “B” | 15,565 | 1,304,022 | ||
Organon & Co. (a)(f) | 3,342 | 101,138 | ||
Roche Holding AG | 14,467 | 5,449,849 | ||
Santen Pharmaceutical Co. Ltd. | 19,400 | 267,177 | ||
$19,477,884 | ||||
Printing & Publishing – 0.5% | ||||
RELX PLC | 31,925 | $ 850,982 | ||
Transcontinental, Inc., “A” | 4,131 | 77,581 | ||
Wolters Kluwer N.V. | 16,018 | 1,609,117 | ||
$2,537,680 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Railroad & Shipping – 0.5% | ||||
Canadian Pacific Railway Ltd. | 20,112 | $ 1,546,528 | ||
Union Pacific Corp. | 5,837 | 1,283,731 | ||
$2,830,259 | ||||
Real Estate – 0.2% | ||||
Extra Space Storage, Inc., REIT | 1,309 | $ 214,440 | ||
National Storage Affiliates Trust, REIT | 2,483 | 125,540 | ||
Omega Healthcare Investors, Inc., REIT | 6,034 | 218,974 | ||
Shimao Property Holdings Ltd. | 100,000 | 245,225 | ||
Starwood Property Trust, Inc., REIT | 13,093 | 342,644 | ||
$1,146,823 | ||||
Restaurants – 0.1% | ||||
Yum China Holdings, Inc. | 9,592 | $ 635,470 | ||
Specialty Chemicals – 0.3% | ||||
Akzo Nobel N.V. | 9,329 | $ 1,152,646 | ||
Axalta Coating Systems Ltd. (a) | 13,510 | 411,920 | ||
Nitto Denko Corp. | 2,700 | 201,476 | ||
$1,766,042 | ||||
Specialty Stores – 0.2% | ||||
Home Depot, Inc. | 3,966 | $ 1,264,718 | ||
Telecommunications - Wireless – 1.3% | ||||
KDDI Corp. | 127,900 | $ 3,989,140 | ||
Mobile TeleSystems PJSC, ADR | 15,959 | 147,780 | ||
T-Mobile USA, Inc. (a)(f) | 9,881 | 1,431,065 | ||
Turkcell Iletisim Hizmetleri A.S. | 61,354 | 113,452 | ||
Vodafone Group PLC | 900,460 | 1,511,419 | ||
$7,192,856 | ||||
Telephone Services – 0.2% | ||||
Hellenic Telecommunications Organization S.A. | 23,282 | $ 390,634 | ||
PT Telekom Indonesia | 576,300 | 125,196 | ||
Quebecor, Inc., “B” | 14,274 | 380,686 | ||
$896,516 | ||||
Tobacco – 0.7% | ||||
British American Tobacco PLC | 28,224 | $ 1,093,183 | ||
Imperial Tobacco Group PLC | 27,713 | 596,882 | ||
Japan Tobacco, Inc. (l) | 55,800 | 1,054,020 | ||
Philip Morris International, Inc. (s) | 14,282 | 1,415,489 | ||
$4,159,574 | ||||
Utilities - Electric Power – 0.9% | ||||
CLP Holdings Ltd. | 43,000 | $ 425,331 | ||
DTE Energy Co. | 1,433 | 185,717 | ||
Duke Energy Corp. | 12,281 | 1,212,380 | ||
E.ON SE | 127,120 | 1,470,245 | ||
Energias do Brasil S.A. | 27,043 | 96,128 | ||
ENGIE Energía Brasil S.A. | 19,100 | 150,341 | ||
Exelon Corp. | 16,428 | 727,925 | ||
Iberdrola S.A. | 49,733 | 606,221 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Utilities - Electric Power – continued | ||||
Terna Participacoes S.A., IEU | 45,383 | $ 336,691 | ||
$5,210,979 | ||||
Total Common Stocks (Identified Cost, $115,145,512) | $192,049,476 | |||
Preferred Stocks – 0.3% | ||||
Computer Software - Systems – 0.1% | ||||
Samsung Electronics Co. Ltd. | 4,697 | $ 307,391 | ||
Consumer Products – 0.2% | ||||
Henkel AG & Co. KGaA | 11,426 | $ 1,206,348 | ||
Total Preferred Stocks (Identified Cost, $704,239) | $ 1,513,739 | |||
Convertible Preferred Stocks – 0.1% | ||||
Medical Equipment – 0.0% | ||||
Boston Scientific Corp., 5.5% | 1,572 | $ 182,446 | ||
Danaher Corp., 4.75% | 101 | 181,660 | ||
$364,106 | ||||
Utilities - Electric Power – 0.1% | ||||
CenterPoint Energy, Inc., 7% | 9,867 | $ 447,173 | ||
Total Convertible Preferred Stocks (Identified Cost, $750,425) | $ 811,279 |
Issuer | Strike Price | First Exercise | Shares/Par | Value ($) |
Warrants – 0.0% | ||||
Apparel Manufacturers – 0.0% | ||||
Compagnie Financiere Richemont S.A. (1 share for 2 warrants, Expiration 12/04/23) (a) (Identified Cost, $0) | CHF 67.00 | 11/20/23 | 29,766 | $ 19,946 |
Investment Companies (h) – 2.3% | ||||
Money Market Funds – 2.3% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $12,589,073) | 12,589,073 | $ 12,589,073 |
Underlying/Expiration Date/Exercise Price | Put/Call | Counterparty | Notional Amount | Par Amount/ Number of Contracts | Value ($) |
Purchased Options – 0.2% | |||||
Market Index Securities – 0.0% | |||||
S&P 500 Index – July 2021 @ $3,300 | Put | Goldman Sachs International | $ 9,024,750 | 21 | $ 1,050 |
Other – 0.2% | |||||
U.S. Treasury 10 yr - Interest Rate Swap - Fund pays 1.75%, Fund receives FLR (3-month LIBOR) – September 2022 | Put | Merrill Lynch International | $ 39,000,000 | $ 39,000,000 | $ 997,804 |
Total Purchased Options (Premiums Paid, $383,615) | $ 998,854 | ||||
Collateral for Securities Loaned – 0.0% | |||||
State Street Navigator Securities Lending Government Money Market Portfolio, 0.02% (j) (Identified Cost, $133,455) | $ 133,455 | ||||
Other Assets, Less Liabilities – 0.6% | 3,195,124 | ||||
Net Assets – 100.0% | $555,910,614 |
(a) | Non-income producing security. |
(f) | All or a portion of the security has been segregated as collateral for open futures contracts and cleared swap agreements. |
(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 $12,589,073 and $540,126,417, respectively. |
(i) | Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security. |
(j) | The rate quoted is the annualized seven-day yield of the fund at period end. |
(l) | A portion of this security is on loan. See Note 2 for additional information. |
(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 $54,625,481, representing 9.8% of net assets. |
(s) | Security or a portion of the security was pledged to cover collateral requirements for certain derivative transactions. |
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
(w) | When-issued security. |
(z) | Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities: |
Restricted Securities | Acquisition Date | Cost | Value |
MF1 CLO Ltd., 2020-FL3, “AS”, FLR, 2.974% (LIBOR - 1mo. + 2.85%), 7/15/2035 | 6/12/2020 | $357,000 | $362,128 |
% of Net assets | 0.1% |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
AGM | Assured Guaranty Municipal |
CLO | Collateralized Loan Obligation |
CMT | Constant Maturity Treasury |
EURIBOR | Euro Interbank Offered Rate |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
ICE | Intercontinental Exchange |
IEU | International Equity Unit |
LIBOR | London Interbank Offered Rate |
NPFG | National Public Finance Guarantee Corp. |
PCL | Public Company Limited |
REIT | Real Estate Investment Trust |
SOFR | Secured Overnight Financing Rate |
SONIA | Sterling Overnight Index Average |
TBA | To Be Announced |
UMBS | Uniform Mortgage-Backed Security |
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: | |
AUD | Australian Dollar |
BRL | Brazilian Real |
CAD | Canadian Dollar |
CHF | Swiss Franc |
CLP | Chilean Peso |
CNH | Chinese Yuan Renminbi (Offshore) |
CNY | China Yuan Renminbi |
COP | Colombian Peso |
CZK | Czech Koruna |
DKK | Danish Krone |
EUR | Euro |
GBP | British Pound |
HKD | Hong Kong Dollar |
HUF | Hungarian Forint |
IDR | Indonesian Rupiah |
ILS | Israeli Shekel |
ISK | Iceland Krona |
JPY | Japanese Yen |
KRW | South Korean Won |
MXN | Mexican Peso |
NOK | Norwegian Krone |
NZD | New Zealand Dollar |
PLN | Polish Zloty |
RUB | Russian Ruble |
SEK | Swedish Krona |
SGD | Singapore Dollar |
THB | Thai Baht |
TRY | Turkish Lira |
TWD | Taiwan Dollar |
UYU | Uruguayan Peso |
ZAR | South African Rand |
Derivative Contracts at 6/30/21 | ||||||
Forward Foreign Currency Exchange Contracts | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives | ||||||
BRL | 8,850,000 | USD | 1,753,517 | Citibank N.A. | 8/03/2021 | $ 19,772 |
BRL | 1,759,000 | USD | 350,972 | Goldman Sachs International | 8/03/2021 | 1,482 |
CAD | 679,000 | USD | 543,026 | HSBC Bank | 7/16/2021 | 4,725 |
CAD | 11,575,375 | USD | 9,329,345 | JPMorgan Chase Bank N.A. | 9/24/2021 | 8,346 |
CAD | 2,796,240 | USD | 2,237,476 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | 18,261 |
CAD | 6,166,375 | USD | 4,935,991 | UBS AG | 7/16/2021 | 38,446 |
CLP | 143,602,000 | USD | 194,992 | JPMorgan Chase Bank N.A. | 9/21/2021 | 123 |
CNH | 11,273,000 | USD | 1,730,825 | Goldman Sachs International | 7/16/2021 | 10,741 |
CNH | 107,659,000 | USD | 16,406,283 | JPMorgan Chase Bank N.A. | 7/16/2021 | 225,952 |
CZK | 8,355,000 | USD | 382,023 | Citibank N.A. | 7/16/2021 | 6,434 |
GBP | 375,000 | USD | 517,622 | JPMorgan Chase Bank N.A. | 7/16/2021 | 1,138 |
GBP | 819,861 | USD | 1,132,596 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | 1,566 |
IDR | 16,199,936,460 | USD | 1,104,365 | JPMorgan Chase Bank N.A. | 9/22/2021 | 5,585 |
ILS | 1,799,000 | USD | 548,190 | JPMorgan Chase Bank N.A. | 7/16/2021 | 3,683 |
KRW | 1,936,632,000 | USD | 1,712,918 | Barclays Bank PLC | 8/17/2021 | 6,396 |
KRW | 784,835,000 | USD | 693,617 | Citibank N.A. | 8/17/2021 | 3,148 |
KRW | 717,286,000 | USD | 634,295 | JPMorgan Chase Bank N.A. | 8/17/2021 | 2,501 |
MXN | 90,023,173 | USD | 4,496,016 | UBS AG | 7/16/2021 | 12,245 |
NOK | 14,895,000 | USD | 1,719,549 | Goldman Sachs International | 7/16/2021 | 10,509 |
NOK | 178,350,992 | USD | 20,660,700 | Goldman Sachs International | 9/24/2021 | 59,913 |
PLN | 2,754,930 | USD | 719,363 | Merrill Lynch International | 7/16/2021 | 3,203 |
RUB | 43,746,000 | USD | 589,132 | Goldman Sachs International | 7/30/2021 | 6,653 |
SEK | 169,785,015 | USD | 19,777,274 | Goldman Sachs International | 9/24/2021 | 77,278 |
USD | 1,574,268 | AUD | 2,039,375 | Deutsche Bank AG | 7/16/2021 | 44,726 |
USD | 255,854 | AUD | 330,568 | HSBC Bank | 7/16/2021 | 7,927 |
USD | 21,719,923 | AUD | 28,892,481 | JPMorgan Chase Bank N.A. | 9/24/2021 | 44,491 |
USD | 5,431,462 | AUD | 7,011,000 | Merrill Lynch International | 7/16/2021 | 173,174 |
USD | 808,852 | CAD | 1,000,970 | Deutsche Bank AG | 7/16/2021 | 1,366 |
USD | 14,451,013 | CHF | 13,280,785 | JPMorgan Chase Bank N.A. | 9/24/2021 | 65,678 |
USD | 305,185 | COP | 1,149,784,960 | JPMorgan Chase Bank N.A. | 9/24/2021 | 162 |
USD | 364,667 | CZK | 7,843,822 | JPMorgan Chase Bank N.A. | 9/24/2021 | 184 |
USD | 798,540 | DKK | 4,986,301 | JPMorgan Chase Bank N.A. | 9/24/2021 | 2,159 |
USD | 1,293,106 | EUR | 1,063,224 | Brown Brothers Harriman | 7/16/2021 | 32,018 |
USD | 5,541,095 | EUR | 4,619,222 | Citibank N.A. | 7/16/2021 | 62,239 |
USD | 29,446,567 | EUR | 24,439,398 | Deutsche Bank AG | 7/16/2021 | 459,015 |
USD | 1,736,207 | EUR | 1,457,000 | Goldman Sachs International | 7/16/2021 | 8,061 |
USD | 74,570,631 | EUR | 62,600,165 | Goldman Sachs International | 9/24/2021 | 215,406 |
USD | 1,418,708 | EUR | 1,171,170 | JPMorgan Chase Bank N.A. | 7/16/2021 | 29,583 |
USD | 7,858,639 | EUR | 6,598,271 | JPMorgan Chase Bank N.A. | 9/24/2021 | 21,345 |
USD | 660,156 | EUR | 550,000 | Merrill Lynch International | 7/16/2021 | 7,801 |
USD | 6,772,502 | EUR | 5,581,195 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | 152,651 |
USD | 1,432,137 | EUR | 1,181,849 | NatWest Markets PLC | 7/16/2021 | 30,346 |
USD | 8,819,120 | EUR | 7,347,663 | State Street Bank Corp. | 7/16/2021 | 104,062 |
USD | 1,274,827 | EUR | 1,041,559 | UBS AG | 7/16/2021 | 39,435 |
Forward Foreign Currency Exchange Contracts - continued | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives - continued | ||||||
USD | 1,451,752 | GBP | 1,025,019 | Citibank N.A. | 7/16/2021 | $ 33,783 |
USD | 337,390 | GBP | 239,088 | Deutsche Bank AG | 7/16/2021 | 6,645 |
USD | 12,641,850 | GBP | 9,106,412 | Goldman Sachs International | 9/24/2021 | 42,593 |
USD | 141,086 | GBP | 99,900 | JPMorgan Chase Bank N.A. | 7/16/2021 | 2,888 |
USD | 1,865,636 | GBP | 1,314,941 | Merrill Lynch International | 7/16/2021 | 46,600 |
USD | 182,511 | GBP | 129,749 | UBS AG | 7/16/2021 | 3,021 |
USD | 2,170,361 | JPY | 236,283,226 | Citibank N.A. | 7/16/2021 | 43,267 |
USD | 739,338 | JPY | 80,000,000 | Deutsche Bank AG | 7/16/2021 | 19,154 |
USD | 1,653,676 | JPY | 180,000,000 | Goldman Sachs International | 7/16/2021 | 33,261 |
USD | 39,338,942 | JPY | 4,327,602,276 | JPMorgan Chase Bank N.A. | 9/24/2021 | 357,230 |
USD | 3,509,700 | NOK | 29,200,000 | JPMorgan Chase Bank N.A. | 7/16/2021 | 118,114 |
USD | 2,775,580 | NZD | 3,882,938 | Deutsche Bank AG | 7/16/2021 | 61,463 |
USD | 917,932 | SEK | 7,775,000 | BNP Paribas S.A. | 7/16/2021 | 9,315 |
USD | 845,975 | SEK | 7,171,000 | Goldman Sachs International | 7/16/2021 | 7,945 |
USD | 6,462,520 | SEK | 54,645,942 | JPMorgan Chase Bank N.A. | 7/16/2021 | 76,386 |
USD | 570,084 | THB | 17,906,350 | JPMorgan Chase Bank N.A. | 7/21/2021 | 11,850 |
USD | 1,728,976 | THB | 54,225,000 | JPMorgan Chase Bank N.A. | 8/02/2021 | 37,229 |
USD | 3,518,292 | TWD | 97,228,000 | Barclays Bank PLC | 8/24/2021 | 28,406 |
USD | 2,060,404 | ZAR | 29,191,000 | JPMorgan Chase Bank N.A. | 7/16/2021 | 19,771 |
$ 2,988,850 | ||||||
Liability Derivatives | ||||||
AUD | 1,619,424 | USD | 1,251,779 | Citibank N.A. | 7/16/2021 | $ (37,202) |
AUD | 1,938,845 | USD | 1,504,127 | Deutsche Bank AG | 7/16/2021 | (49,982) |
AUD | 184,729 | USD | 143,320 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | (4,772) |
AUD | 2,325,351 | USD | 1,797,666 | NatWest Markets PLC | 7/16/2021 | (53,640) |
AUD | 36,000 | USD | 27,868 | UBS AG | 7/16/2021 | (868) |
CAD | 2,100,000 | USD | 1,742,198 | Goldman Sachs International | 7/16/2021 | (48,121) |
CAD | 1,500,777 | USD | 1,244,231 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | (33,549) |
CHF | 1,782,000 | USD | 1,936,801 | State Street Bank Corp. | 7/16/2021 | (10,107) |
CLP | 1,230,089,000 | USD | 1,761,296 | Barclays Bank PLC | 8/13/2021 | (88,078) |
CLP | 1,235,644,000 | USD | 1,691,041 | Barclays Bank PLC | 9/27/2021 | (12,444) |
COP | 1,321,303,000 | USD | 358,881 | Goldman Sachs International | 9/03/2021 | (7,867) |
CZK | 18,700,000 | USD | 898,434 | Goldman Sachs International | 7/16/2021 | (28,997) |
CZK | 37,490,000 | USD | 1,756,442 | JPMorgan Chase Bank N.A. | 7/16/2021 | (13,385) |
DKK | 4,719,079 | USD | 760,337 | JPMorgan Chase Bank N.A. | 7/16/2021 | (7,646) |
EUR | 264,000 | USD | 320,507 | Brown Brothers Harriman | 7/16/2021 | (7,377) |
EUR | 5,295,518 | USD | 6,461,386 | Citibank N.A. | 7/16/2021 | (180,375) |
EUR | 11,795,795 | USD | 14,238,571 | Deutsche Bank AG | 7/16/2021 | (247,590) |
EUR | 1,385,000 | USD | 1,686,808 | JPMorgan Chase Bank N.A. | 7/16/2021 | (44,061) |
EUR | 1,251,731 | USD | 1,515,246 | Merrill Lynch International | 7/16/2021 | (30,568) |
EUR | 350,000 | USD | 427,069 | NatWest Markets PLC | 7/16/2021 | (11,934) |
EUR | 4,505,746 | USD | 5,436,007 | UBS AG | 7/16/2021 | (91,745) |
GBP | 511,289 | USD | 710,329 | Citibank N.A. | 7/16/2021 | (3,033) |
GBP | 1,200,000 | USD | 1,703,124 | Credit Suisse Group | 7/16/2021 | (43,093) |
GBP | 1,194,056 | USD | 1,693,609 | Deutsche Bank AG | 7/16/2021 | (41,801) |
GBP | 2,351,295 | USD | 3,281,268 | Goldman Sachs International | 7/16/2021 | (28,582) |
GBP | 100,078 | USD | 141,424 | JPMorgan Chase Bank N.A. | 7/16/2021 | (2,980) |
GBP | 562,082 | USD | 780,662 | NatWest Markets PLC | 7/16/2021 | (3,101) |
HUF | 351,206,000 | USD | 1,196,243 | Goldman Sachs International | 7/16/2021 | (11,313) |
JPY | 3,210,273,352 | USD | 29,547,028 | Citibank N.A. | 7/16/2021 | (647,162) |
JPY | 406,404,257 | USD | 3,705,478 | Deutsche Bank AG | 7/16/2021 | (46,902) |
JPY | 111,525,672 | USD | 1,015,790 | JPMorgan Chase Bank N.A. | 7/16/2021 | (11,802) |
Forward Foreign Currency Exchange Contracts - continued | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Liability Derivatives - continued | ||||||
JPY | 116,321,499 | USD | 1,069,721 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | $ (22,559) |
KRW | 1,147,659,000 | USD | 1,026,639 | Barclays Bank PLC | 8/17/2021 | (7,764) |
KRW | 818,168,000 | USD | 731,984 | Citibank N.A. | 8/17/2021 | (5,627) |
KRW | 3,020,970,900 | USD | 2,701,879 | JPMorgan Chase Bank N.A. | 7/08/2021 | (19,436) |
MXN | 17,449,000 | USD | 880,003 | Deutsche Bank AG | 7/16/2021 | (6,176) |
NOK | 14,846,000 | USD | 1,737,491 | Deutsche Bank AG | 7/16/2021 | (13,125) |
NOK | 63,831,574 | USD | 7,608,008 | Goldman Sachs International | 7/16/2021 | (193,957) |
NZD | 4,328,210 | USD | 3,137,069 | Deutsche Bank AG | 7/16/2021 | (111,713) |
NZD | 267,000 | USD | 190,817 | Goldman Sachs International | 7/16/2021 | (4,188) |
NZD | 282,729 | USD | 200,956 | State Street Bank Corp. | 7/16/2021 | (3,333) |
PLN | 1,619,000 | USD | 441,610 | Deutsche Bank AG | 7/16/2021 | (16,976) |
PLN | 1,581,000 | USD | 431,217 | Goldman Sachs International | 7/16/2021 | (16,550) |
SEK | 29,694,000 | USD | 3,574,452 | Goldman Sachs International | 7/16/2021 | (104,298) |
SEK | 29,775,000 | USD | 3,542,286 | JPMorgan Chase Bank N.A. | 7/16/2021 | (62,665) |
SGD | 972,000 | USD | 724,734 | HSBC Bank | 7/16/2021 | (1,897) |
TRY | 274,000 | USD | 31,890 | State Street Bank Corp. | 7/16/2021 | (658) |
USD | 2,679,116 | BRL | 14,081,972 | JPMorgan Chase Bank N.A. | 8/03/2021 | (142,512) |
USD | 634,864 | CAD | 787,000 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | (12) |
USD | 1,535,397 | CLP | 1,148,554,000 | Citibank N.A. | 8/13/2021 | (26,914) |
USD | 5,584,058 | CNH | 36,247,000 | JPMorgan Chase Bank N.A. | 7/16/2021 | (15,739) |
USD | 20,743,767 | CNY | 135,207,871 | JPMorgan Chase Bank N.A. | 9/24/2021 | (60,805) |
USD | 1,185,383 | EUR | 1,000,000 | HSBC Bank | 7/16/2021 | (716) |
USD | 725,583 | EUR | 612,000 | JPMorgan Chase Bank N.A. | 7/16/2021 | (310) |
USD | 448,013 | GBP | 324,808 | JPMorgan Chase Bank N.A. | 7/16/2021 | (1,313) |
USD | 792,442 | GBP | 574,877 | UBS AG | 7/16/2021 | (2,819) |
USD | 1,092,022 | IDR | 16,018,869,000 | JPMorgan Chase Bank N.A. | 9/22/2021 | (5,523) |
USD | 405,314 | ILS | 1,321,342 | JPMorgan Chase Bank N.A. | 9/24/2021 | (384) |
USD | 1,741,431 | KRW | 1,965,205,000 | Barclays Bank PLC | 8/17/2021 | (3,249) |
USD | 3,441,726 | KRW | 3,902,332,070 | JPMorgan Chase Bank N.A. | 9/24/2021 | (22,443) |
USD | 3,592,291 | MXN | 72,686,365 | Goldman Sachs International | 7/16/2021 | (47,762) |
USD | 763,359 | MXN | 15,905,487 | Goldman Sachs International | 9/24/2021 | (26,232) |
USD | 9,041,579 | NZD | 12,974,631 | Goldman Sachs International | 9/24/2021 | (25,329) |
USD | 625,424 | PLN | 2,384,778 | Goldman Sachs International | 9/24/2021 | (161) |
USD | 506,079 | RUB | 37,544,093 | JPMorgan Chase Bank N.A. | 9/24/2021 | (784) |
USD | 1,730,191 | SEK | 14,894,000 | BNP Paribas S.A. | 7/16/2021 | (10,379) |
USD | 563,818 | SGD | 758,722 | JPMorgan Chase Bank N.A. | 9/24/2021 | (407) |
USD | 1,913,226 | ZAR | 27,868,350 | JPMorgan Chase Bank N.A. | 7/16/2021 | (34,946) |
$(2,869,738) |
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Equity Futures | ||||||
AEX 25 Index | Short | EUR | 61 | $10,550,598 | July – 2021 | $39,973 |
CAC 40 Index | Short | EUR | 9 | 694,197 | July – 2021 | 13,210 |
DAX Index | Short | EUR | 17 | 7,825,239 | September – 2021 | 78,269 |
FTSE Taiwan Index | Long | USD | 48 | 2,928,480 | July – 2021 | 26,454 |
FTSE/JSE Top 40 Index | Short | ZAR | 151 | 6,331,426 | September – 2021 | 131,542 |
NIFTY Index | Short | USD | 426 | 13,416,444 | July – 2021 | 47,668 |
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives - continued | ||||||
Equity Futures - continued | ||||||
Russell 2000 Index | Short | USD | 129 | $14,885,310 | September – 2021 | $147,161 |
S&P/ASX 200 Index | Short | AUD | 145 | 19,636,226 | September – 2021 | 170,795 |
$655,072 | ||||||
Interest Rate Futures | ||||||
Canadian Treasury Bond 10 yr | Long | CAD | 202 | $23,713,327 | September – 2021 | $251,638 |
Canadian Treasury Bond 5 yr | Short | CAD | 75 | 7,534,487 | September – 2021 | 5,428 |
Euro-Bobl 5 yr | Long | EUR | 64 | 10,180,376 | September – 2021 | 4,400 |
Long Gilt 10 yr | Long | GBP | 98 | 17,365,671 | September – 2021 | 143,006 |
U.S. Treasury Note 5 yr | Short | USD | 194 | 23,945,359 | September – 2021 | 66,340 |
$470,812 | ||||||
$1,125,884 | ||||||
Liability Derivatives | ||||||
Equity Futures | ||||||
BIST 30 Index | Long | TRY | 4,772 | $8,222,578 | August – 2021 | $(242,734) |
FTSE 100 Index | Long | GBP | 195 | 18,829,445 | September – 2021 | (245,871) |
FTSE MIB Index | Long | EUR | 106 | 15,713,703 | September – 2021 | (366,673) |
Hang Seng Index | Long | HKD | 83 | 15,302,667 | July – 2021 | (124,271) |
IBEX 35 Index | Long | EUR | 120 | 12,504,873 | July – 2021 | (528,981) |
IBOV Index | Long | BRL | 402 | 10,285,116 | August – 2021 | (314,403) |
KOSPI 200 Index | Short | KRW | 115 | 11,203,603 | September – 2021 | (113,607) |
Mexbol Index | Long | MXN | 393 | 9,988,438 | September – 2021 | (126,571) |
MSCI Singapore Index | Short | SGD | 5 | 132,167 | July – 2021 | (93) |
OMX 30 Index | Long | SEK | 276 | 7,307,884 | July – 2021 | (68,052) |
S&P 500 E-Mini Index | Short | USD | 55 | 11,793,650 | September – 2021 | (142,851) |
S&P/TSX 60 Index | Short | CAD | 61 | 11,836,835 | September – 2021 | (79,602) |
Topix Index | Long | JPY | 35 | 6,121,338 | September – 2021 | (68,396) |
$(2,422,105) | ||||||
Interest Rate Futures | ||||||
Australian Note 10 yr | Long | AUD | 189 | $20,012,209 | September – 2021 | $(10,208) |
Euro-Bund 10 yr | Short | EUR | 382 | 78,184,830 | September – 2021 | (523,222) |
Euro-Buxl 30 yr | Short | EUR | 24 | 5,783,805 | September – 2021 | (74,878) |
Japan Government Bond 10 yr | Short | JPY | 32 | 43,693,055 | September – 2021 | (98,366) |
U.S. Treasury Bond | Short | USD | 37 | 5,947,750 | September – 2021 | (152,167) |
U.S. Treasury Note 2 yr | Long | USD | 99 | 21,811,711 | September – 2021 | (38,746) |
U.S. Treasury Ultra Bond | Long | USD | 6 | 1,156,125 | September – 2021 | (772) |
U.S. Treasury Ultra Note 10 yr | Short | USD | 12 | 1,766,438 | September – 2021 | (8,513) |
$(906,872) | ||||||
$(3,328,977) |
Cleared Swap Agreements | ||||||||
Maturity Date | Notional Amount | Counterparty | Cash Flows to Receive/ Frequency | Cash Flows to Pay/ Frequency | Unrealized Appreciation (Depreciation) | Net Unamortized Upfront Payments (Receipts) | Value | |
Asset Derivatives | ||||||||
Interest Rate Swaps | ||||||||
6/03/22 | USD | 167,000,000 | centrally cleared | 0.25%/Semi-annually | 0.23% FLR (3-Month Libor)/Quarterly | $130,790 | $— | $130,790 |
Maturity Date | Notional Amount | Counterparty | Cash Flows to Receive/ Frequency | Cash Flows to Pay/ Frequency | Unrealized Appreciation (Depreciation) | Net Unamortized Upfront Payments (Receipts) | Value | |||
Asset Derivatives - continued | ||||||||||
Interest Rate Swaps - continued | ||||||||||
11/06/24 | USD | 66,200,000 | centrally cleared | 1.58%/Semi-annually | 0.25% FLR (3-Month Libor)/Quarterly | $2,192,817 | $— | $2,192,817 | ||
$2,323,607 | $— | $2,323,607 | ||||||||
Liability Derivatives | ||||||||||
Interest Rate Swaps | ||||||||||
11/06/29 | USD | 33,600,000 | centrally cleared | 0.25% FLR (3-Month Libor)/Quarterly | 1.70%/Semi-annually | $(1,090,891) | $— | $(1,090,891) | ||
11/06/49 | USD | 13,102,083 | centrally cleared | 0.25% FLR (3-Month Libor)/Quarterly | 1.89%/Semi-annually | (425,178) | — | (425,178) | ||
$(1,516,069) | $— | $(1,516,069) |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value, including $963,144 of securities on loan (identified cost, $453,919,926) | $540,126,417 |
Investments in affiliated issuers, at value (identified cost, $12,589,073) | 12,589,073 |
Cash | 568,766 |
Foreign currency, at value (identified cost, $22,060) | 21,697 |
Restricted cash for | |
Forward foreign currency exchange contracts | 670,000 |
Deposits with brokers for | |
Futures contracts | 2,095,016 |
Cleared options | 12,334 |
Receivables for | |
Forward foreign currency exchange contracts | 2,988,850 |
Investments sold | 5,718,702 |
Fund shares sold | 71,106 |
Interest and dividends | 3,375,479 |
Other assets | 2,103 |
Total assets | $568,239,543 |
Liabilities | |
Payables for | |
Net daily variation margin on open cleared swap agreements | $103,801 |
Forward foreign currency exchange contracts | 2,869,738 |
Net daily variation margin on open futures contracts | 584,490 |
Investments purchased | 2,545,923 |
TBA purchase commitments | 4,695,512 |
Fund shares reacquired | 201,709 |
When-issued investments purchased | 992,979 |
Collateral for securities loaned, at value (c) | 133,455 |
Payable to affiliates | |
Investment adviser | 21,443 |
Administrative services fee | 457 |
Shareholder servicing costs | 53 |
Distribution and/or service fees | 7,062 |
Deferred country tax expense payable | 292 |
Accrued expenses and other liabilities | 172,015 |
Total liabilities | $12,328,929 |
Net assets | $555,910,614 |
Net assets consist of | |
Paid-in capital | $423,719,511 |
Total distributable earnings (loss) | 132,191,103 |
Net assets | $555,910,614 |
Shares of beneficial interest outstanding | 34,914,558 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $41,398,276 | 2,551,531 | $16.22 |
Service Class | 514,512,338 | 32,363,027 | 15.90 |
(c) | Non-cash collateral is not included. |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Interest | $3,946,766 |
Dividends | 3,236,367 |
Dividends from affiliated issuers | 9,013 |
Income on securities loaned | 1,036 |
Other | 76 |
Foreign taxes withheld | (198,280) |
Total investment income | $6,994,978 |
Expenses | |
Management fee | $2,004,442 |
Distribution and/or service fees | 648,298 |
Shareholder servicing costs | 7,350 |
Administrative services fee | 41,361 |
Independent Trustees' compensation | 4,796 |
Custodian fee | 58,484 |
Shareholder communications | 18,372 |
Audit and tax fees | 46,164 |
Legal fees | 2,125 |
Miscellaneous | 56,591 |
Total expenses | $2,887,983 |
Reduction of expenses by investment adviser | (33,499) |
Net expenses | $2,854,484 |
Net investment income (loss) | $4,140,494 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers (net of $44 country tax) | $19,737,078 |
Written options | 53,264 |
Futures contracts | (845,889) |
Swap agreements | 144,872 |
Forward foreign currency exchange contracts | 1,652,157 |
Foreign currency | (416,060) |
Net realized gain (loss) | $20,325,422 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (net of $292 increase in deferred country tax) | $(11,615,248) |
Futures contracts | (1,549,676) |
Swap agreements | 1,558,759 |
Forward foreign currency exchange contracts | 1,782,098 |
Translation of assets and liabilities in foreign currencies | 54,397 |
Net unrealized gain (loss) | $(9,769,670) |
Net realized and unrealized gain (loss) | $10,555,752 |
Change in net assets from operations | $14,696,246 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/21 (unaudited) | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $4,140,494 | $6,760,505 |
Net realized gain (loss) | 20,325,422 | 19,865,576 |
Net unrealized gain (loss) | (9,769,670) | 4,492,245 |
Change in net assets from operations | $14,696,246 | $31,118,326 |
Total distributions to shareholders | $— | $(34,497,547) |
Change in net assets from fund share transactions | $(33,001,380) | $(21,278,512) |
Total change in net assets | $(18,305,134) | $(24,657,733) |
Net assets | ||
At beginning of period | 574,215,748 | 598,873,481 |
At end of period | $555,910,614 | $574,215,748 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $15.79 | $15.86 | $14.58 | $16.11 | $15.04 | $14.92 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.14 | $0.22 | $0.29 | $0.29 | $0.26 | $0.29(c) |
Net realized and unrealized gain (loss) | 0.29 | 0.71 | 1.80 | (0.99) | 1.36 | 0.67 |
Total from investment operations | $0.43 | $0.93 | $2.09 | $(0.70) | $1.62 | $0.96 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.28) | $(0.45) | $(0.13) | $(0.51) | $— |
From net realized gain | — | (0.72) | (0.36) | (0.70) | (0.04) | (0.84) |
Total distributions declared to shareholders | $— | $(1.00) | $(0.81) | $(0.83) | $(0.55) | $(0.84) |
Net asset value, end of period (x) | $16.22 | $15.79 | $15.86 | $14.58 | $16.11 | $15.04 |
Total return (%) (k)(r)(s)(x) | 2.72(n) | 6.23 | 14.58 | (4.50) | 10.83 | 6.24(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.80(a) | 0.83 | 0.81 | 0.81 | 0.81 | 0.79(c) |
Expenses after expense reductions (f) | 0.79(a) | 0.82 | 0.80 | 0.80 | 0.80 | 0.78(c) |
Net investment income (loss) | 1.71(a) | 1.45 | 1.85 | 1.83 | 1.64 | 1.88(c) |
Portfolio turnover | 70(n) | 120 | 82 | 86 | 35 | 38 |
Net assets at end of period (000 omitted) | $41,398 | $43,513 | $46,175 | $47,517 | $56,096 | $58,053 |
Service Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $15.49 | $15.57 | $14.32 | $15.84 | $14.79 | $14.72 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.11 | $0.18 | $0.24 | $0.24 | $0.22 | $0.25(c) |
Net realized and unrealized gain (loss) | 0.30 | 0.70 | 1.77 | (0.98) | 1.34 | 0.66 |
Total from investment operations | $0.41 | $0.88 | $2.01 | $(0.74) | $1.56 | $0.91 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.24) | $(0.40) | $(0.08) | $(0.47) | $— |
From net realized gain | — | (0.72) | (0.36) | (0.70) | (0.04) | (0.84) |
Total distributions declared to shareholders | $— | $(0.96) | $(0.76) | $(0.78) | $(0.51) | $(0.84) |
Net asset value, end of period (x) | $15.90 | $15.49 | $15.57 | $14.32 | $15.84 | $14.79 |
Total return (%) (k)(r)(s)(x) | 2.65(n) | 5.99 | 14.30 | (4.80) | 10.58 | 5.98(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.05(a) | 1.08 | 1.06 | 1.06 | 1.06 | 1.04(c) |
Expenses after expense reductions (f) | 1.04(a) | 1.07 | 1.05 | 1.05 | 1.05 | 1.03(c) |
Net investment income (loss) | 1.46(a) | 1.19 | 1.60 | 1.58 | 1.39 | 1.63(c) |
Portfolio turnover | 70(n) | 120 | 82 | 86 | 35 | 38 |
Net assets at end of period (000 omitted) | $514,512 | $530,703 | $552,698 | $559,478 | $706,456 | $733,775 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 | $104,842,948 | $— | $— | $104,842,948 |
Japan | 14,711,734 | — | — | 14,711,734 |
Switzerland | 13,656,358 | — | — | 13,656,358 |
United Kingdom | 11,904,707 | — | — | 11,904,707 |
France | 10,024,590 | — | — | 10,024,590 |
Canada | 6,444,488 | — | — | 6,444,488 |
Germany | 5,575,795 | — | — | 5,575,795 |
Taiwan | 4,858,253 | — | — | 4,858,253 |
Netherlands | 4,435,253 | — | — | 4,435,253 |
Other Countries | 17,614,701 | 326,663 | — | 17,941,364 |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | — | 10,843,993 | — | 10,843,993 |
Non - U.S. Sovereign Debt | — | 135,891,314 | — | 135,891,314 |
Municipal Bonds | — | 3,710,683 | — | 3,710,683 |
U.S. Corporate Bonds | — | 60,324,970 | — | 60,324,970 |
Residential Mortgage-Backed Securities | — | 26,911,790 | — | 26,911,790 |
Commercial Mortgage-Backed Securities | — | 14,024,548 | — | 14,024,548 |
Asset-Backed Securities (including CDOs) | — | 10,671,010 | — | 10,671,010 |
Foreign Bonds | — | 83,219,164 | — | 83,219,164 |
Mutual Funds | 12,722,528 | — | — | 12,722,528 |
Total | $206,791,355 | $345,924,135 | $— | $552,715,490 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $1,125,884 | $— | $— | $1,125,884 |
Futures Contracts – Liabilities | (3,328,977) | — | — | (3,328,977) |
Forward Foreign Currency Exchange Contracts – Assets | — | 2,988,850 | — | 2,988,850 |
Forward Foreign Currency Exchange Contracts – Liabilities | — | (2,869,738) | — | (2,869,738) |
Swap Agreements – Assets | — | 2,323,607 | — | 2,323,607 |
Swap Agreements – Liabilities | — | (1,516,069) | — | (1,516,069) |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Interest Rate Futures | $470,812 | $(906,872) |
Equity | Equity Futures | 655,072 | (2,422,105) |
Interest Rate | Interest Rate Swaps | 2,323,607 | (1,516,069) |
Interest Rate | Purchased Interest Rate Options | 997,804 | — |
Equity | Purchased Equity Options | 1,050 | — |
Foreign Exchange | Forward Foreign Currency Exchange Contracts | 2,988,850 | (2,869,738) |
Total | $7,437,195 | $(7,714,784) |
Risk | Futures Contracts | Swap Agreements | Forward Foreign Currency Exchange Contracts | Unaffiliated Issuers (Purchased Options) | Written Options |
Interest Rate | $3,199,791 | $124,247 | $— | $(174,196) | $— |
Foreign Exchange | — | — | 1,652,157 | — | — |
Credit | — | 20,625 | — | — | 53,264 |
Equity | (4,045,680) | — | — | (176,413) | — |
Total | $(845,889) | $144,872 | $1,652,157 | $(350,609) | $53,264 |
Risk | Futures Contracts | Swap Agreements | Forward Foreign Currency Exchange Contracts | Unaffiliated Issuers (Purchased Options) |
Interest Rate | $(108,610) | $1,562,752 | $— | $504,824 |
Foreign Exchange | — | — | 1,782,098 | — |
Equity | (1,441,066) | — | — | 72,033 |
Credit | — | (3,993) | — | — |
Total | $(1,549,676) | $1,558,759 | $1,782,098 | $576,857 |
Gross Amounts of: | Derivative Assets | Derivative Liabilities |
Futures Contracts (a) | $— | $(584,490) |
Cleared Swap Agreements (a) | — | (103,801) |
Forward Foreign Currency Exchange Contracts | 2,988,850 | (2,869,738) |
Purchased Options | 998,854 | — |
Total Gross Amount of Derivative Assets and Liabilities Presented in the Statement of Assets & Liabilities | $3,987,704 | $(3,558,029) |
Less: Derivatives Assets and Liabilities Not Subject to a Master Netting Agreement or Similar Arrangement | 250,573 | (922,583) |
Total Gross Amount of Derivative Assets and Liabilities Subject to a Master Netting Agreement or Similar Arrangement | $3,737,131 | $(2,635,446) |
�� | Amounts Not Offset in the Statement of Assets & Liabilities | ||||
Gross Amount of Derivative Assets Subject to a Master Netting Agreement (or Similar Arrangement) by Counterparty | Financial Instruments Available for Offset | Financial Instruments Collateral Received (b) | Cash Collateral Received (b) | Net Amount of Derivative Assets by Counterparty | |
Barclays Bank PLC | $34,801 | $(34,801) | $— | $— | $— |
Brown Brothers Harriman Co. | 32,018 | (7,377) | — | — | 24,641 |
Citibank N.A. | 168,642 | (168,642) | — | — | — |
Deutsche Bank AG | 592,371 | (534,264) | — | — | 58,107 |
Goldman Sachs International | 473,841 | (473,841) | — | — | — |
JPMorgan Chase Bank N.A. | 1,034,399 | (447,139) | — | (80,000) | 507,260 |
Merrill Lynch International | 1,228,582 | (30,569) | — | (1,198,013) | — |
Morgan Stanley Capital Services, Inc. | 172,477 | (60,892) | — | — | 111,585 |
Total | $3,737,131 | $(1,757,525) | $— | $(1,278,013) | $701,593 |
Amounts Not Offset in the Statement of Assets & Liabilities | |||||
Gross Amount of Derivative Liabilities Subject to a Master Netting Agreement (or Similar Arrangement) by Counterparty | Financial Instruments Available for Offset | Financial Instruments Collateral Pledged (b) | Cash Collateral Pledged (b) | Net Amount of Derivative Liabilities by Counterparty | |
Barclays Bank PLC | $(111,535) | $34,801 | $— | $— | $(76,734) |
Brown Brothers Harriman Co. | (7,377) | 7,377 | — | — | — |
Citibank N.A. | (900,314) | 168,642 | — | 650,000 | (81,672) |
Deutsche Bank AG | (534,264) | 534,264 | — | — | — |
Goldman Sachs International | (543,356) | 473,841 | — | 20,000 | (49,515) |
JPMorgan Chase Bank N.A. | (447,139) | 447,139 | — | — | — |
Merrill Lynch International | (30,569) | 30,569 | — | — | — |
Morgan Stanley Capital Services, Inc. | (60,892) | 60,892 | — | — | — |
Total | $(2,635,446) | $1,757,525 | $— | $670,000 | $(207,921) |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $27,045,497 |
Long-term capital gains | 7,452,050 |
Total distributions | $34,497,547 |
As of 6/30/21 | |
Cost of investments | $476,092,556 |
Gross appreciation | 80,660,646 |
Gross depreciation | (4,037,712) |
Net unrealized appreciation (depreciation) | $76,622,934 |
As of 12/31/20 | |
Undistributed ordinary income | 10,621,861 |
Undistributed long-term capital gain | 18,479,245 |
Other temporary differences | 174,564 |
Net unrealized appreciation (depreciation) | 88,219,187 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $2,739,813 | |
Service Class | — | 31,757,734 | |
Total | $— | $34,497,547 |
Up to $300 million | 0.75% |
In excess of $300 million and up to $2.5 billion | 0.675% |
In excess of $2.5 billion | 0.65% |
Purchases | Sales | |
U.S. Government securities | $76,260,271 | $93,797,571 |
Non-U.S. Government securities | 298,655,116 | 288,450,357 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 23,078 | $369,147 | 100,173 | $1,507,014 | |
Service Class | 397,622 | 6,280,331 | 1,140,931 | 17,184,459 | |
420,700 | $6,649,478 | 1,241,104 | $18,691,473 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 183,634 | $2,739,813 | |
Service Class | — | — | 2,167,763 | 31,757,734 | |
— | $— | 2,351,397 | $34,497,547 | ||
Shares reacquired | |||||
Initial Class | (226,831) | $(3,637,179) | (440,732) | $(6,677,947) | |
Service Class | (2,287,233) | (36,013,679) | (4,551,744) | (67,789,585) | |
(2,514,064) | $(39,650,858) | (4,992,476) | $(74,467,532) | ||
Net change | |||||
Initial Class | (203,753) | $(3,268,032) | (156,925) | $(2,431,120) | |
Service Class | (1,889,611) | (29,733,348) | (1,243,050) | (18,847,392) | |
(2,093,364) | $(33,001,380) | (1,399,975) | $(21,278,512) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $37,119,815 | $289,595,212 | $314,125,954 | $— | $— | $12,589,073 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $9,013 | $— |
Securities Portfolio
1 | |
2 | |
3 | |
4 | |
9 | |
10 | |
11 | |
12 | |
14 | |
22 | |
23 | |
23 | |
23 | |
23 |
Mortgage-Backed Securities | 46.9% |
U.S. Treasury Securities | 38.1% |
U.S. Government Agencies | 7.0% |
Commercial Mortgage-Backed Securities | 4.7% |
Municipal Bonds | 2.0% |
Collateralized Debt Obligations | 1.6% |
Investment Grade Corporates | 1.6% |
Non-U.S. Government Bonds | 0.3% |
Asset-Backed Securities | 0.1% |
AAA | 5.1% |
AA | 1.7% |
A | 3.2% |
BBB | 0.3% |
U.S. Government | 31.5% |
Federal Agencies | 53.9% |
Not Rated | 6.6% |
Cash & Cash Equivalents | 4.3% |
Other | (6.6)% |
Average Duration (d) | 5.3 |
Average Effective Maturity (m) | 6.6 yrs. |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 ratings agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities. Not Rated includes fixed income securities and fixed income derivatives that have not been rated by any rating agency. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening device (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity. |
January 1, 2021 through June 30, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/21 | Ending Account Value 6/30/21 | Expenses Paid During Period (p) 1/01/21-6/30/21 | |
Initial Class | Actual | 0.59% | $1,000.00 | $983.67 | $2.90 |
Hypothetical (h) | 0.59% | $1,000.00 | $1,021.87 | $2.96 | |
Service Class | Actual | 0.84% | $1,000.00 | $982.80 | $4.13 |
Hypothetical (h) | 0.84% | $1,000.00 | $1,020.63 | $4.21 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Bonds – 95.3% | ||||
Asset-Backed & Securitized – 6.3% | ||||
Allegro CLO Ltd., 2016-1A, “BR2”, FLR, 1.734% (LIBOR - 3mo. + 1.55%), 1/15/2030 (n) | $ | 635,246 | $ 635,247 | |
Arbor Realty Trust, Inc., FLR, 1.572% (LIBOR - 1mo. + 1.5%), 12/15/2035 (n) | 671,500 | 671,710 | ||
Bancorp Commercial Mortgage Trust, 2019-CRE6, “A”, FLR, 1.174% (LIBOR - 1mo. + 1.05%), 9/15/2036 (n) | 500,855 | 500,542 | ||
BBCMS Mortgage Trust, 2021-C10, “XA”, 1.434%, 7/15/2054 (i)(w) | 3,673,995 | 369,467 | ||
BBCMS Mortgage Trust, 2021-C9, “XA”, 1.769%, 2/15/2054 (i) | 2,406,264 | 301,252 | ||
Benchmark Mortgage Trust, 2020-B18, “A5”, 1.925%, 7/15/2053 | 1,283,582 | 1,276,518 | ||
Benchmark Mortgage Trust, 2021-B23, “XA”, 1.385%, 2/15/2054 (i) | 7,659,804 | 727,253 | ||
Benchmark Mortgage Trust, 2021-B24, “XA”, 1.274%, 3/15/2054 (i) | 4,516,022 | 389,833 | ||
Benchmark Mortgage Trust, 2021-B26, “XA”, 0.999%, 6/15/2054 (i) | 4,847,965 | 334,755 | ||
Benchmark Mortgage Trust, 2021-B27, “XA”, 1.273%, 7/15/2054 (i) | 5,827,166 | 587,568 | ||
BPCRE Holder LLC, FLR, 0.931% (LIBOR - 1mo. + 0.85%), 2/15/2037 (n) | 434,500 | 434,500 | ||
BPCRE Holder LLC, FLR, 1.631% (LIBOR - 1mo. + 1.55%), 2/15/2037 (n) | 225,500 | 225,501 | ||
BXMT Ltd., 2021-FL4, “AS”, FLR, 1.372% (LIBOR - 1mo. + 1.3%), 5/15/2038 (n) | 1,344,000 | 1,344,005 | ||
Capital Automotive, 2020-1A, “A4”, REIT, 3.19%, 2/15/2050 (n) | 268,790 | 276,732 | ||
Citigroup Commercial Mortgage Trust, 2019-C7, “A4”, 3.102%, 12/15/2072 | 403,746 | 439,022 | ||
Citigroup Commercial Mortgage Trust, 2019-XA, “C7”, 1.003%, 12/15/2072 (i)(n) | 4,440,157 | 275,634 | ||
Commercial Mortgage Pass-Through Certificates, 2020-BN28, “A4”, 1.844%, 3/15/2063 | 390,781 | 385,741 | ||
Commercial Mortgage Pass-Through Certificates, 2020-BN29, “A4”, 1.997%, 11/15/2053 | 751,414 | 749,789 | ||
Commercial Mortgage Pass-Through Certificates, 2020-BN30, “A4”, 1.925%, 12/15/2053 | 716,000 | 711,900 | ||
Commercial Mortgage Pass-Through Certificates, 2021-BN31,“XA”, 1.444%, 2/15/2054 (i) | 5,912,763 | 610,212 | ||
Commercial Mortgage Pass-Through Certificates, 2021-BN32, “XA”, 0.893%, 4/15/2054 (i) | 3,315,690 | 199,287 | ||
Commercial Mortgage Trust, 2015-DC1, “A5”, 3.35%, 2/10/2048 | 1,136,000 | 1,217,620 | ||
Commercial Mortgage Trust, 2017-COR2, “A3”, 3.51%, 9/10/2050 | 1,414,455 | 1,560,238 | ||
CSAIL Commercial Mortgage Trust, 2015-C2, “A4”, 3.504%, 6/15/2057 | 144,366 | 155,865 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
GS Mortgage Securities Trust, 2015-GC30, “A4”, 3.382%, 5/10/2050 | $ | 1,965,000 | $ 2,125,280 | |
GS Mortgage Securities Trust, 2015-GC32, “A2”, 3.062%, 7/10/2048 | 116,852 | 119,563 | ||
GS Mortgage Securities Trust, 2020-GC45, “A5”, 2.91%, 2/13/2053 | 741,658 | 795,068 | ||
LoanCore Ltd., 2021-CRE5, “AS”, 1.823%, 7/15/2036 (n) | 1,110,500 | 1,111,539 | ||
Madison Park Funding Ltd., 2014-13A, “BR2”, FLR, 1.689% (LIBOR - 3mo. + 1.5%), 4/19/2030 (n) | 1,572,067 | 1,579,710 | ||
MF1 CLO Ltd., 2021-FL5, “AS”, FLR, 1.324% (LIBOR - 1mo. + 1.2%), 7/15/2036 (n) | 664,500 | 663,877 | ||
MF1 CLO Ltd., 2021-FL5, “B”, FLR, 1.574% (LIBOR - 1mo. + 1.45%), 7/15/2036 (n) | 836,500 | 835,715 | ||
MF1 Multi-Family Housing Mortgage Loan Trust, 2020-FL4, “A”, FLR, 1.824% (LIBOR - 1mo. + 1.7%), 11/15/2035 (n) | 836,000 | 842,791 | ||
Morgan Stanley Bank of America Merrill Lynch Trust, 2017-C34, “A4”, 3.536%, 11/15/2052 | 415,862 | 461,069 | ||
Morgan Stanley Capital I Trust, 2018-H4, “XA”, 1.026%, 12/15/2051 (i) | 6,202,056 | 327,555 | ||
Morgan Stanley Capital I Trust, 2021-L5, “XA”, 1.425%, 5/15/2054 (i) | 2,883,829 | 282,630 | ||
Palmer Square Loan Funding Ltd., 2020-1A, “A2”, FLR, 1.505% (LIBOR - 3mo. + 1.35%), 2/20/2028 (n) | 680,583 | 677,098 | ||
PFP III Ltd., 2021-7, “AS”, FLR, 1.222% (LIBOR - 1mo. + 1.15%), 4/14/2038 (n) | 933,000 | 930,679 | ||
Symphony CLO Ltd., 2016-17A, “BR”, FLR, 1.383% (LIBOR - 3mo. + 1.2%), 4/15/2028 (n) | 1,332,260 | 1,328,165 | ||
UBS Commercial Mortgage Trust, 2017-C1, “A4”, 3.544%, 11/15/2050 | 1,133,267 | 1,253,797 | ||
Wells Fargo Commercial Mortgage Trust, 2018-C48, “XA”, 1.114%, 1/15/2052 (i)(n) | 3,696,335 | 216,830 | ||
Wells Fargo Commercial Mortgage Trust, 2020-C58, “A4”, 2.092%, 7/15/2053 | 458,000 | 460,772 | ||
$28,392,329 | ||||
Automotive – 0.1% | ||||
Hyundai Capital America, 2.375%, 2/10/2023 (n) | $ | 405,000 | $ 415,712 | |
Consumer Services – 0.1% | ||||
Conservation Fund, 3.474%, 12/15/2029 | $ | 563,000 | $ 602,470 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Industrial – 0.1% | ||||
Howard University, Washington D.C., 2.638%, 10/01/2021 | $ | 93,000 | $ 93,493 | |
Howard University, Washington D.C., 2.738%, 10/01/2022 | 98,000 | 100,352 | ||
Howard University, Washington D.C., 2.801%, 10/01/2023 | 108,000 | 110,491 | ||
Howard University, Washington D.C., AGM, 2.416%, 10/01/2024 | 119,000 | 122,149 | ||
Howard University, Washington D.C., AGM, 2.516%, 10/01/2025 | 147,000 | 151,361 | ||
$577,846 | ||||
Major Banks – 0.3% | ||||
JPMorgan Chase & Co., 1.578% to 4/22/2026, FLR (SOFR + 0.885%) to 4/22/2027 | $ | 938,000 | $ 942,860 | |
UBS Group AG, 3.491%, 5/23/2023 (n) | 565,000 | 580,282 | ||
$1,523,142 | ||||
Medical & Health Technology & Services – 0.9% | ||||
Montefiore Obligated Group, AGM, 5.246%, 11/01/2048 | $ | 2,012,000 | $ 2,593,956 | |
ProMedica Toledo Hospital, “B”, AGM, 5.325%, 11/15/2028 | 879,000 | 1,050,649 | ||
ProMedica Toledo Hospital, “B”, AGM, 5.75%, 11/15/2038 | 246,000 | 299,443 | ||
$3,944,048 | ||||
Mortgage-Backed – 46.8% | ||||
Fannie Mae, 6%, 7/01/2021-7/01/2037 | $ | 490,310 | $ 572,067 | |
Fannie Mae, 2.56%, 10/01/2021 | 214,465 | 214,415 | ||
Fannie Mae, 5.5%, 5/01/2022-3/01/2038 | 4,323,697 | 5,002,043 | ||
Fannie Mae, 2.152%, 1/25/2023 | 823,934 | 837,549 | ||
Fannie Mae, 2.73%, 4/01/2023 | 462,811 | 476,582 | ||
Fannie Mae, 2.41%, 5/01/2023 | 584,181 | 599,909 | ||
Fannie Mae, 2.55%, 5/01/2023 | 501,946 | 516,442 | ||
Fannie Mae, 4.5%, 5/01/2025-4/01/2041 | 3,207,719 | 3,549,481 | ||
Fannie Mae, 3.5%, 5/25/2025-7/01/2046 | 5,387,226 | 5,792,395 | ||
Fannie Mae, 4%, 3/25/2028-2/01/2045 | 10,940,460 | 11,920,587 | ||
Fannie Mae, 3%, 11/01/2028-5/25/2053 | 7,380,209 | 7,790,668 | ||
Fannie Mae, 6.5%, 9/01/2031-10/01/2037 | 427,527 | 500,714 | ||
Fannie Mae, 2.5%, 11/01/2031-10/01/2046 | 1,229,415 | ��� 1,271,367 | ||
Fannie Mae, 3.5%, 12/25/2031-2/25/2036 (i) | 429,507 | 45,889 | ||
Fannie Mae, 3%, 2/25/2033 (i) | 469,028 | 46,228 | ||
Fannie Mae, 5%, 11/01/2033-3/01/2041 | 3,033,006 | 3,446,615 | ||
Fannie Mae, 2%, 10/25/2040-4/25/2046 | 835,027 | 852,667 | ||
Fannie Mae, 1.75%, 10/25/2041 | 1,221,828 | 1,243,935 | ||
Fannie Mae, 2.75%, 9/25/2042 | 491,210 | 512,128 | ||
Fannie Mae, UMBS, 2.5%, 2/01/2050-7/01/2050 | 1,280,030 | 1,330,930 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mortgage-Backed – continued | ||||
Fannie Mae, UMBS, 2%, 1/01/2051-2/01/2051 | $ | 786,323 | $ 796,445 | |
Freddie Mac, 5%, 12/01/2021-12/01/2044 | 1,721,995 | 1,960,774 | ||
Freddie Mac, 5.5%, 5/01/2022-6/01/2041 | 1,035,648 | 1,199,823 | ||
Freddie Mac, 4.5%, 11/01/2022-5/01/2042 | 1,317,071 | 1,456,000 | ||
Freddie Mac, 3.32%, 2/25/2023 | 1,993,000 | 2,079,402 | ||
Freddie Mac, 3.25%, 4/25/2023 | 3,500,000 | 3,654,985 | ||
Freddie Mac, 6%, 6/01/2023-10/01/2038 | 1,385,665 | 1,601,440 | ||
Freddie Mac, 3.06%, 7/25/2023 | 326,000 | 341,884 | ||
Freddie Mac, 1.016%, 4/25/2024 (i) | 14,271,229 | 270,769 | ||
Freddie Mac, 0.732%, 7/25/2024 (i) | 17,217,746 | 236,663 | ||
Freddie Mac, 3.064%, 8/25/2024 | 1,703,107 | 1,812,703 | ||
Freddie Mac, 2.67%, 12/25/2024 | 3,924,000 | 4,167,270 | ||
Freddie Mac, 2.811%, 1/25/2025 | 3,025,000 | 3,228,152 | ||
Freddie Mac, 4%, 7/01/2025-4/01/2044 | 1,219,719 | 1,328,751 | ||
Freddie Mac, 3.5%, 1/15/2027-10/25/2058 | 14,273,372 | 15,312,401 | ||
Freddie Mac, 1.481%, 3/25/2027 (i) | 1,030,000 | 75,431 | ||
Freddie Mac, 0.71%, 7/25/2027 (i) | 29,774,608 | 955,923 | ||
Freddie Mac, 0.562%, 8/25/2027 (i) | 24,682,335 | 612,769 | ||
Freddie Mac, 0.427%, 1/25/2028 (i) | 42,575,553 | 830,875 | ||
Freddie Mac, 0.434%, 1/25/2028 (i) | 17,536,106 | 352,016 | ||
Freddie Mac, 0.269%, 2/25/2028 (i) | 49,593,526 | 511,949 | ||
Freddie Mac, 2.5%, 3/15/2028 | 165,900 | 169,576 | ||
Freddie Mac, 0.261%, 4/25/2028 (i) | 31,912,370 | 308,079 | ||
Freddie Mac, 3%, 6/15/2028-2/25/2059 | 9,787,126 | 10,389,677 | ||
Freddie Mac, 1.218%, 7/25/2029 (i) | 4,431,987 | 349,327 | ||
Freddie Mac, 1.268%, 8/25/2029 (i) | 7,696,856 | 636,802 | ||
Freddie Mac, 1.915%, 4/25/2030 (i) | 1,602,831 | 230,968 | ||
Freddie Mac, 1.984%, 4/25/2030 (i) | 4,034,514 | 607,319 | ||
Freddie Mac, 1.765%, 5/25/2030 (i) | 2,174,913 | 293,406 | ||
Freddie Mac, 1.906%, 5/25/2030 (i) | 4,905,689 | 715,356 | ||
Freddie Mac, 1.436%, 6/25/2030 (i) | 1,983,331 | 219,733 | ||
Freddie Mac, 1.704%, 8/25/2030 (i) | 1,814,781 | 241,811 | ||
Freddie Mac, 1.262%, 9/25/2030 (i) | 1,149,690 | 113,810 | ||
Freddie Mac, 1.172%, 11/25/2030 (i) | 2,249,951 | 208,922 | ||
Freddie Mac, 0.423%, 1/25/2031 (i) | 8,740,838 | 241,724 | ||
Freddie Mac, 0.873%, 1/25/2031 (i) | 3,359,280 | 232,888 | ||
Freddie Mac, 1.026%, 1/25/2031 (i) | 2,545,825 | 207,868 | ||
Freddie Mac, 0.625%, 3/25/2031 (i) | 6,974,152 | 315,734 | ||
Freddie Mac, 0.837%, 3/25/2031 (i) | 2,967,667 | 199,454 | ||
Freddie Mac, 1.224%, 5/25/2031 (i) | 1,210,235 | 133,228 | ||
Freddie Mac, 6.5%, 8/01/2032-5/01/2037 | 250,952 | 289,398 | ||
Freddie Mac, 5.5%, 2/15/2036 (i) | 118,737 | 21,749 | ||
Freddie Mac, 4.5%, 12/15/2040 (i) | 45,000 | 4,243 | ||
Freddie Mac, 1.75%, 8/15/2041 | 364,924 | 374,240 | ||
Freddie Mac, UMBS, 6.5%, 8/01/2032 | 23,618 | 27,011 | ||
Freddie Mac, UMBS, 3%, 7/01/2050 | 30,137 | 32,088 | ||
Ginnie Mae, 5.5%, 7/15/2033-1/20/2042 | 945,497 | 1,103,435 | ||
Ginnie Mae, 5.7%, 8/20/2034 | 344,143 | 393,029 | ||
Ginnie Mae, 4%, 5/16/2039-7/20/2041 | 1,021,706 | 1,110,784 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mortgage-Backed – continued | ||||
Ginnie Mae, 4.5%, 8/15/2039-9/20/2041 | $ | 2,416,699 | $ 2,711,349 | |
Ginnie Mae, 3.5%, 10/20/2041 (i) | 189,947 | 14,170 | ||
Ginnie Mae, 3.5%, 12/15/2041-6/20/2043 | 3,010,212 | 3,250,313 | ||
Ginnie Mae, 2.5%, 6/20/2042-7/20/2051 | 2,920,000 | 3,029,136 | ||
Ginnie Mae, 4%, 8/16/2042 (i) | 211,080 | 29,077 | ||
Ginnie Mae, 2.25%, 9/20/2043 | 280,635 | 285,623 | ||
Ginnie Mae, 3%, 4/20/2045-6/20/2051 | 5,378,099 | 5,665,610 | ||
Ginnie Mae, 5.87%, 4/20/2058 | 19,335 | 22,269 | ||
Ginnie Mae, 0.56%, 2/16/2059 (i) | 1,043,589 | 45,214 | ||
Ginnie Mae, TBA, 2.5%, 7/15/2051 | 5,975,000 | 6,183,191 | ||
Ginnie Mae, TBA, 3.5%, 7/15/2051 | 3,525,000 | 3,700,355 | ||
Ginnie Mae, TBA, 4%, 7/15/2051 | 250,000 | 263,994 | ||
Ginnie Mae, TBA, 2%, 7/21/2051 | 2,825,000 | 2,877,086 | ||
Ginnie Mae, TBA, 3%, 7/21/2051 | 2,425,000 | 2,530,194 | ||
UMBS, TBA, 3%, 7/19/2036-8/12/2051 | 12,375,000 | 12,896,941 | ||
UMBS, TBA, 1.5%, 7/25/2036-8/17/2036 | 3,325,000 | 3,361,998 | ||
UMBS, TBA, 2%, 7/25/2036-8/12/2051 | 35,225,000 | 35,643,009 | ||
UMBS, TBA, 2.5%, 7/25/2036-8/25/2051 | 18,675,000 | 19,310,824 | ||
$ 210,301,048 | ||||
Municipals – 2.0% | ||||
California Earthquake Authority Rev., “B”, 1.227%, 7/01/2021 | $ | 95,000 | $ 95,000 | |
California Earthquake Authority Rev., “B”, 1.327%, 7/01/2022 | 295,000 | 297,929 | ||
California Earthquake Authority Rev., “B”, 1.477%, 7/01/2023 | 210,000 | 214,050 | ||
Massachusetts Educational Financing Authority, Education Loan Rev., “A”, 2.562%, 7/01/2026 | 70,000 | 73,170 | ||
Massachusetts Educational Financing Authority, Education Loan Rev., “A”, 2.682%, 7/01/2027 | 335,000 | 349,928 | ||
Michigan Finance Authority Tobacco Settlement Asset-Backed Rev. (2006 Sold Tobacco Receipts), “A-1”, 2.326%, 6/01/2030 | 313,269 | 326,710 | ||
New Jersey Economic Development Authority State Pension Funding Rev., Capital Appreciation, “B”, AGM, 0%, 2/15/2023 | 4,114,000 | 4,088,913 | ||
New York Transportation Development Corp., Special Facilities Taxable Rev. (Terminal 4 John F. Kennedy International Airport Project), “B”, 1.36%, 12/01/2021 | 140,000 | 140,514 | ||
New York Transportation Development Corp., Special Facilities Taxable Rev. (Terminal 4 John F. Kennedy International Airport Project), “B”, 1.61%, 12/01/2022 | 130,000 | 131,772 | ||
Philadelphia, PA, School District, “A”, AGM, 5.995%, 9/01/2030 | 960,000 | 1,249,047 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Municipals – continued | ||||
Port Oakland, CA, Senior Lien Refunding Taxable Rev., “R”, 1.081%, 5/01/2024 | $ | 200,000 | $ 201,904 | |
Port Oakland, CA, Senior Lien Refunding Taxable Rev., “R”, 1.517%, 5/01/2026 | 295,000 | 298,235 | ||
Rhode Island Student Loan Authority, Education Loan Rev., “1”, 2.195%, 12/01/2039 | 200,000 | 203,643 | ||
Texas Transportation Commission, Central Texas Turnpike System First Tier Refunding Rev., Taxable, “B”, 1.98%, 8/15/2042 | 690,000 | 701,710 | ||
West Virginia Tobacco Settlement Financing Authority Asset-Backed Refunding, “A-1”, 1.497%, 6/01/2024 | 280,000 | 283,830 | ||
West Virginia Tobacco Settlement Financing Authority Asset-Backed Refunding, “A-1”, 1.647%, 6/01/2025 | 225,000 | 227,754 | ||
$8,884,109 | ||||
Supranational – 0.3% | ||||
Inter-American Development Bank, 4.375%, 1/24/2044 | $ | 1,093,000 | $ 1,498,289 | |
U.S. Government Agencies and Equivalents – 7.0% | ||||
AID Tunisia, 2.452%, 7/24/2021 | $ | 1,444,000 | $ 1,443,682 | |
Federal Home Loan Bank, 2.625%, 12/10/2021 | 4,800,000 | 4,854,271 | ||
Federal Home Loan Bank, 3%, 12/10/2021 | 20,500,000 | 20,766,074 | ||
Small Business Administration, 6.625%, 7/01/2021 | 12,138 | 12,139 | ||
Small Business Administration, 6.07%, 3/01/2022 | 15,799 | 16,020 | ||
Small Business Administration, 4.98%, 11/01/2023 | 32,394 | 33,738 | ||
Small Business Administration, 4.77%, 4/01/2024 | 95,995 | 99,826 | ||
Small Business Administration, 5.52%, 6/01/2024 | 45,527 | 47,798 | ||
Small Business Administration, 4.99%, 9/01/2024 | 8,901 | 9,284 | ||
Small Business Administration, 5.11%, 4/01/2025 | 68,680 | 72,426 | ||
Small Business Administration, 2.21%, 2/01/2033 | 554,601 | 577,571 | ||
Small Business Administration, 2.22%, 3/01/2033 | 892,518 | 922,623 | ||
Small Business Administration, 3.15%, 7/01/2033 | 832,446 | 889,424 | ||
Small Business Administration, 3.16%, 8/01/2033 | 481,484 | 514,395 | ||
Small Business Administration, 3.62%, 9/01/2033 | 306,074 | 331,559 | ||
Tennessee Valley Authority, 0.75%, 5/15/2025 | 707,000 | 711,225 | ||
$31,302,055 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Treasury Obligations – 31.4% | ||||
U.S. Treasury Bonds, 6.25%, 8/15/2023 | $ | 2,891,000 | $ 3,255,989 | |
U.S. Treasury Bonds, 6%, 2/15/2026 | 2,699,000 | 3,336,639 | ||
U.S. Treasury Bonds, 6.75%, 8/15/2026 | 1,862,000 | 2,408,671 | ||
U.S. Treasury Bonds, 6.375%, 8/15/2027 | 326,000 | 429,021 | ||
U.S. Treasury Bonds, 1.625%, 5/15/2031 | 6,239,000 | 6,334,535 | ||
U.S. Treasury Bonds, 4.5%, 8/15/2039 | 1,287,500 | 1,815,274 | ||
U.S. Treasury Bonds, 3.125%, 2/15/2043 | 8,176,700 | 9,769,879 | ||
U.S. Treasury Bonds, 2.875%, 5/15/2043 | 13,519,500 | 15,548,481 | ||
U.S. Treasury Bonds, 2.5%, 2/15/2045 (f) | 21,059,000 | 22,784,851 | ||
U.S. Treasury Bonds, 2.875%, 11/15/2046 | 2,917,000 | 3,385,543 | ||
U.S. Treasury Notes, 1.5%, 9/15/2022 | 2,500,000 | 2,541,113 | ||
U.S. Treasury Notes, 0.125%, 9/30/2022 | 8,770,000 | 8,768,630 | ||
U.S. Treasury Notes, 0.125%, 2/28/2023 | 15,517,800 | 15,498,403 | ||
U.S. Treasury Notes, 2.5%, 3/31/2023 | 9,000,000 | 9,358,945 | ||
U.S. Treasury Notes, 0.125%, 5/31/2023 | 8,057,000 | 8,039,690 | ||
U.S. Treasury Notes, 0.125%, 6/30/2023 | 7,893,000 | 7,874,192 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Treasury Obligations – continued | ||||
U.S. Treasury Notes, 2.5%, 5/15/2024 | $ | 5,385,000 | $ 5,704,103 | |
U.S. Treasury Notes, 2%, 8/15/2025 | 438,000 | 460,927 | ||
U.S. Treasury Notes, 2.625%, 12/31/2025 | 2,800,000 | 3,026,844 | ||
U.S. Treasury Notes, 2.75%, 2/15/2028 | 6,000,000 | 6,611,016 | ||
U.S. Treasury Notes, 1.5%, 2/15/2030 | 3,800,000 | 3,837,555 | ||
$ 140,790,301 | ||||
Total Bonds (Identified Cost, $411,275,175) | $ 428,231,349 | |||
Investment Companies (h) – 25.2% | ||||
Money Market Funds – 25.2% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $113,075,117) | 113,075,117 | $ 113,075,117 | ||
Other Assets, Less Liabilities – (20.5)% | (92,213,427) | |||
Net Assets – 100.0% | $ 449,093,039 |
(f) | All or a portion of the security has been segregated as collateral for open futures contracts. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $113,075,117 and $428,231,349, respectively. | |||
(i) | Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security. | |||
(n) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $13,546,269, representing 3.0% 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. | |||
(w) | When-issued security. |
The following abbreviations are used in this report and are defined: | |
AGM | Assured Guaranty Municipal |
AID | U.S. Agency for International Development |
CLO | Collateralized Loan Obligation |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
LIBOR | London Interbank Offered Rate |
REIT | Real Estate Investment Trust |
SOFR | Secured Overnight Financing Rate |
TBA | To Be Announced |
UMBS | Uniform Mortgage-Backed Security |
Derivative Contracts at 6/30/21 | ||||||
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 10 yr | Long | USD | 370 | $49,025,000 | September – 2021 | $188,618 |
Futures Contracts - continued | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives - continued | ||||||
Interest Rate Futures - continued | ||||||
U.S. Treasury Note 5 yr | Short | USD | 45 | $5,554,336 | September – 2021 | $15,388 |
$204,006 | ||||||
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Bond | Short | USD | 89 | $14,306,750 | September – 2021 | $(366,023) |
U.S. Treasury Note 2 yr | Long | USD | 10 | 2,203,203 | September – 2021 | (3,914) |
U.S. Treasury Ultra Bond | Short | USD | 9 | 1,734,187 | September – 2021 | (68,239) |
$(438,176) |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $411,275,175) | $428,231,349 |
Investments in affiliated issuers, at value (identified cost, $113,075,117) | 113,075,117 |
Cash | 5,309 |
Receivables for | |
Net daily variation margin on open futures contracts | 15,603 |
TBA sale commitments | 8,137,472 |
Fund shares sold | 1,466 |
Interest | 1,589,809 |
Other assets | 1,772 |
Total assets | $551,057,897 |
Liabilities | |
Payables for | |
Investments purchased | $6,356,037 |
TBA purchase commitments | 94,942,141 |
Fund shares reacquired | 201,097 |
When-issued investments purchased | 371,561 |
Payable to affiliates | |
Investment adviser | 7,603 |
Administrative services fee | 380 |
Shareholder servicing costs | 45 |
Distribution and/or service fees | 2,195 |
Accrued expenses and other liabilities | 83,799 |
Total liabilities | $101,964,858 |
Net assets | $449,093,039 |
Net assets consist of | |
Paid-in capital | $445,303,699 |
Total distributable earnings (loss) | 3,789,340 |
Net assets | $449,093,039 |
Shares of beneficial interest outstanding | 35,580,150 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $288,831,008 | 22,826,936 | $12.65 |
Service Class | 160,262,031 | 12,753,214 | 12.57 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Interest | $4,630,655 |
Dividends from affiliated issuers | 25,581 |
Other | 68 |
Total investment income | $4,656,304 |
Expenses | |
Management fee | $1,225,074 |
Distribution and/or service fees | 195,414 |
Shareholder servicing costs | 4,438 |
Administrative services fee | 33,987 |
Independent Trustees' compensation | 4,056 |
Custodian fee | 12,213 |
Shareholder communications | 13,967 |
Audit and tax fees | 32,529 |
Legal fees | 1,664 |
Miscellaneous | 34,375 |
Total expenses | $1,557,717 |
Reduction of expenses by investment adviser | (57,014) |
Net expenses | $1,500,703 |
Net investment income (loss) | $3,155,601 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $1,750,255 |
Futures contracts | 669,898 |
Foreign currency | 36,877 |
Net realized gain (loss) | $2,457,030 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(12,861,645) |
Futures contracts | (415,744) |
Forward foreign currency exchange contracts | 311,559 |
Translation of assets and liabilities in foreign currencies | (347,275) |
Net unrealized gain (loss) | $(13,313,105) |
Net realized and unrealized gain (loss) | $(10,856,075) |
Change in net assets from operations | $(7,700,474) |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/21 (unaudited) | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $3,155,601 | $8,911,228 |
Net realized gain (loss) | 2,457,030 | 3,747,385 |
Net unrealized gain (loss) | (13,313,105) | 14,592,878 |
Change in net assets from operations | $(7,700,474) | $27,251,491 |
Total distributions to shareholders | $— | $(12,348,081) |
Change in net assets from fund share transactions | $6,184,796 | $(26,909,816) |
Total change in net assets | $(1,515,678) | $(12,006,406) |
Net assets | ||
At beginning of period | 450,608,717 | 462,615,123 |
At end of period | $449,093,039 | $450,608,717 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $12.86 | $12.45 | $12.04 | $12.39 | $12.51 | $12.72 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.09 | $0.27 | $0.31 | $0.30 | $0.31 | $0.31(c) |
Net realized and unrealized gain (loss) | (0.30) | 0.52 | 0.48 | (0.25) | (0.03) | (0.17) |
Total from investment operations | $(0.21) | $0.79 | $0.79 | $0.05 | $0.28 | $0.14 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.38) | $(0.38) | $(0.40) | $(0.40) | $(0.35) |
Net asset value, end of period (x) | $12.65 | $12.86 | $12.45 | $12.04 | $12.39 | $12.51 |
Total return (%) (k)(r)(s)(x) | (1.63)(n) | 6.38 | 6.53 | 0.47 | 2.22 | 1.04(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.61(a) | 0.61 | 0.60 | 0.60 | 0.60 | 0.57(c) |
Expenses after expense reductions (f) | 0.59(a) | 0.58 | 0.58 | 0.59 | 0.60 | 0.56(c) |
Net investment income (loss) | 1.51(a) | 2.11 | 2.53 | 2.45 | 2.45 | 2.40(c) |
Portfolio turnover | 163(n) | 154 | 47 | 35 | 24 | 48 |
Net assets at end of period (000 omitted) | $288,831 | $290,413 | $298,414 | $310,387 | $364,445 | $388,457 |
Service Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $12.79 | $12.38 | $11.96 | $12.31 | $12.42 | $12.64 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.08 | $0.24 | $0.28 | $0.26 | $0.27 | $0.28(c) |
Net realized and unrealized gain (loss) | (0.30) | 0.52 | 0.48 | (0.24) | (0.02) | (0.18) |
Total from investment operations | $(0.22) | $0.76 | $0.76 | $0.02 | $0.25 | $0.10 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.35) | $(0.34) | $(0.37) | $(0.36) | $(0.32) |
Net asset value, end of period (x) | $12.57 | $12.79 | $12.38 | $11.96 | $12.31 | $12.42 |
Total return (%) (k)(r)(s)(x) | (1.72)(n) | 6.12 | 6.35 | 0.17 | 2.03 | 0.68(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.86(a) | 0.86 | 0.85 | 0.85 | 0.85 | 0.82(c) |
Expenses after expense reductions (f) | 0.84(a) | 0.83 | 0.83 | 0.84 | 0.85 | 0.81(c) |
Net investment income (loss) | 1.25(a) | 1.86 | 2.27 | 2.20 | 2.20 | 2.15(c) |
Portfolio turnover | 163(n) | 154 | 47 | 35 | 24 | 48 |
Net assets at end of period (000 omitted) | $160,262 | $160,196 | $164,201 | $171,938 | $212,050 | $236,831 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | $— | $172,092,356 | $— | $172,092,356 |
Non - U.S. Sovereign Debt | — | 1,498,289 | — | 1,498,289 |
Municipal Bonds | — | 8,884,109 | — | 8,884,109 |
U.S. Corporate Bonds | — | 6,482,936 | — | 6,482,936 |
Residential Mortgage-Backed Securities | — | 210,301,048 | — | 210,301,048 |
Commercial Mortgage-Backed Securities | — | 20,881,284 | — | 20,881,284 |
Asset-Backed Securities (including CDOs) | — | 7,511,045 | — | 7,511,045 |
Foreign Bonds | — | 580,282 | — | 580,282 |
Mutual Funds | 113,075,117 | — | — | 113,075,117 |
Total | $113,075,117 | $428,231,349 | $— | $541,306,466 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $204,006 | $— | $— | $204,006 |
Futures Contracts – Liabilities | (438,176) | — | — | (438,176) |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Interest Rate Futures | $204,006 | $(438,176) |
Risk | Futures Contracts |
Interest Rate | $669,898 |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $(415,744) | $— |
Foreign Exchange | — | 311,559 |
Total | $(415,744) | $311,559 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $12,348,081 |
As of 6/30/21 | |
Cost of investments | $527,131,917 |
Gross appreciation | 14,966,232 |
Gross depreciation | (791,683) |
Net unrealized appreciation (depreciation) | $14,174,549 |
As of 12/31/20 | |
Undistributed ordinary income | 9,419,231 |
Capital loss carryforwards | (25,119,051) |
Other temporary differences | 347,275 |
Net unrealized appreciation (depreciation) | 26,842,359 |
Short-Term | $(20,788,518) |
Long-Term | (4,330,533) |
Total | $(25,119,051) |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $8,352,164 | |
Service Class | — | 3,995,917 | |
Total | $— | $12,348,081 |
Up to $1 billion | 0.55% |
In excess of $1 billion | 0.50% |
Purchases | Sales | |
U.S. Government securities | $683,954,385 | $675,311,213 |
Non-U.S. Government securities | 14,893,198 | 14,089,602 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 1,226,325 | $15,654,261 | 2,525,329 | $33,014,801 | |
Service Class | 1,107,159 | 13,885,672 | 2,337,906 | 30,171,357 | |
2,333,484 | $29,539,933 | 4,863,235 | $63,186,158 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 649,974 | $8,352,164 | |
Service Class | — | — | 312,425 | 3,995,917 | |
— | $— | 962,399 | $12,348,081 | ||
Shares reacquired | |||||
Initial Class | (973,544) | $(12,338,379) | (4,567,529) | $(58,895,260) | |
Service Class | (876,382) | (11,016,758) | (3,392,174) | (43,548,795) | |
(1,849,926) | $(23,355,137) | (7,959,703) | $(102,444,055) |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Net change | |||||
Initial Class | 252,781 | $3,315,882 | (1,392,226) | $(17,528,295) | |
Service Class | 230,777 | 2,868,914 | (741,843) | (9,381,521) | |
483,558 | $6,184,796 | (2,134,069) | $(26,909,816) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $36,456,029 | $156,750,680 | $80,131,592 | $— | $— | $113,075,117 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $25,581 | $— |
1 | |
2 | |
3 | |
4 | |
13 | |
14 | |
15 | |
16 | |
18 | |
24 | |
25 | |
25 | |
25 | |
25 |
Cable TV | 7.7% |
Gaming & Lodging | 6.6% |
Medical & Health Technology & Services | 6.6% |
Midstream | 4.3% |
Building | 4.1% |
BB | 47.6% |
B | 35.9% |
CCC | 13.9% |
CC | 0.1% |
C | 0.1% |
Not Rated | 0.2% |
Non-Fixed Income | 0.2% |
Cash & Cash Equivalents | 2.0% |
Other (o) | (0.0)% |
Average Duration (d) | 3.6 |
Average Effective Maturity (m) | 4.1 yrs. |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 ratings agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. Not Rated includes fixed income securities and fixed income derivatives that have not been rated by any rating agency. Non-Fixed Income includes equity securities (including convertible bonds and equity derivatives) and/or commodity-linked derivatives. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening device (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity. |
(o) | Less than 0.1%. |
January 1, 2021 through June 30, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/21 | Ending Account Value 6/30/21 | Expenses Paid During Period (p) 1/01/21-6/30/21 | |
Initial Class | Actual | 0.72% | $1,000.00 | $1,024.65 | $3.61 |
Hypothetical (h) | 0.72% | $1,000.00 | $1,021.22 | $3.61 | |
Service Class | Actual | 0.97% | $1,000.00 | $1,023.17 | $4.87 |
Hypothetical (h) | 0.97% | $1,000.00 | $1,019.98 | $4.86 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Bonds – 96.0% | ||||
Aerospace & Defense – 2.4% | ||||
Bombardier, Inc., 7.5%, 3/15/2025 (n) | $ | 1,543,000 | $ 1,586,744 | |
Bombardier, Inc. , 7.125%, 6/15/2026 (n) | 397,000 | 415,659 | ||
F-Brasile S.p.A./F-Brasile U.S. LLC, 7.375%, 8/15/2026 (n) | 1,070,000 | 1,102,100 | ||
Moog, Inc., 4.25%, 12/15/2027 (n) | 1,515,000 | 1,568,025 | ||
TransDigm, Inc., 6.25%, 3/15/2026 (n) | 1,060,000 | 1,118,300 | ||
TransDigm, Inc., 6.375%, 6/15/2026 | 985,000 | 1,020,430 | ||
TransDigm, Inc., 5.5%, 11/15/2027 | 705,000 | 734,963 | ||
TransDigm, Inc., 4.625%, 1/15/2029 (n) | 714,000 | 714,250 | ||
$8,260,471 | ||||
Airlines – 0.3% | ||||
American Airlines, Inc./AAadvantage Loyalty IP Ltd., 5.5%, 4/20/2026 (n) | $ | 865,000 | $ 915,819 | |
Asset-Backed & Securitized – 0.0% | ||||
CWCapital Cobalt Ltd., CDO, “F”, FLR, 2.291%, (0% cash or 2.291% PIK), (LIBOR - 3mo. + 1.3%), 4/26/2050 (a)(n)(p) | $ | 1,279,123 | $ 128 | |
Automotive – 2.0% | ||||
Adient Global Holdings Ltd., 4.875%, 8/15/2026 (n) | $ | 1,190,000 | $ 1,224,784 | |
Dana, Inc., 5.375%, 11/15/2027 | 726,000 | 773,190 | ||
Dana, Inc., 5.625%, 6/15/2028 | 247,000 | 267,303 | ||
Dana, Inc., 4.25%, 9/01/2030 | 480,000 | 493,800 | ||
IAA Spinco, Inc., 5.5%, 6/15/2027 (n) | 1,290,000 | 1,354,139 | ||
Panther BR Aggregator 2 LP/Panther Finance Co., Inc., 8.5%, 5/15/2027 (n) | 1,195,000 | 1,302,789 | ||
PM General Purchaser LLC, 9.5%, 10/01/2028 (n) | 460,000 | 484,573 | ||
Real Hero Merger Sub 2, Inc., 6.25%, 2/01/2029 (n) | 560,000 | 580,832 | ||
Wheel Pros, Inc., 6.5%, 5/15/2029 (n) | 550,000 | 556,188 | ||
$7,037,598 | ||||
Broadcasting – 3.3% | ||||
Advantage Sales & Marketing, Inc., 6.5%, 11/15/2028 (n) | $ | 980,000 | $ 1,031,450 | |
iHeartCommunications, Inc., 8.375%, 5/01/2027 | 935,000 | 1,001,619 | ||
Netflix, Inc., 5.875%, 2/15/2025 | 1,515,000 | 1,750,704 | ||
Netflix, Inc., 5.875%, 11/15/2028 | 485,000 | 595,304 | ||
Nexstar Broadcasting, Inc., 4.75%, 11/01/2028 (n) | 315,000 | 323,662 | ||
Nexstar Escrow Corp., 5.625%, 7/15/2027 (n) | 1,155,000 | 1,224,300 | ||
Scripps Escrow II, Inc., 5.875%, 7/15/2027 (n) | 1,100,000 | 1,138,885 | ||
Summer (BC) Bidco B LLC , 5.5%, 10/31/2026 (n) | 810,000 | 823,519 | ||
Univision Communications, Inc., 4.5%, 5/01/2029 (n) | 1,380,000 | 1,390,350 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Broadcasting – continued | ||||
WMG Acquisition Corp., 3.875%, 7/15/2030 (n) | $ | 2,205,000 | $ 2,226,829 | |
$11,506,622 | ||||
Brokerage & Asset Managers – 0.8% | ||||
Aretec Escrow Issuer, Inc., 7.5%, 4/01/2029 (n) | $ | 645,000 | $ 662,944 | |
LPL Holdings, Inc., 4.625%, 11/15/2027 (n) | 1,375,000 | 1,424,844 | ||
LPL Holdings, Inc., 4%, 3/15/2029 (n) | 637,000 | 639,847 | ||
$2,727,635 | ||||
Building – 3.8% | ||||
ABC Supply Co., Inc., 4%, 1/15/2028 (n) | $ | 1,690,000 | $ 1,731,760 | |
CP Atlas Buyer, Inc., 7%, 12/01/2028 (n) | 641,000 | 664,236 | ||
GYP Holding III Corp., 4.625%, 5/01/2029 (n) | 1,100,000 | 1,104,125 | ||
Interface, Inc., 5.5%, 12/01/2028 (n) | 1,095,000 | 1,145,370 | ||
New Enterprise Stone & Lime Co., Inc., 6.25%, 3/15/2026 (n) | 1,122,000 | 1,152,047 | ||
New Enterprise Stone & Lime Co., Inc., 9.75%, 7/15/2028 (n) | 649,000 | 726,880 | ||
Park River Holdings, Inc., 5.625%, 2/01/2029 (n) | 720,000 | 700,110 | ||
Patrick Industries, Inc., 7.5%, 10/15/2027 (n) | 1,045,000 | 1,129,875 | ||
Specialty Building Products Holdings LLC, 6.375%, 9/30/2026 (n) | 820,000 | 858,716 | ||
SRM Escrow Issuer LLC, 6%, 11/01/2028 (n) | 1,020,000 | 1,081,200 | ||
SRS Distribution, Inc., 6.125%, 7/01/2029 (n) | 765,000 | 787,269 | ||
Standard Industries, Inc., 4.375%, 7/15/2030 (n) | 1,062,000 | 1,095,188 | ||
Standard Industries, Inc., 3.375%, 1/15/2031 (n) | 240,000 | 229,730 | ||
White Cap Buyer LLC, 6.875%, 10/15/2028 (n) | 590,000 | 631,448 | ||
$13,037,954 | ||||
Business Services – 2.5% | ||||
Ascend Learning LLC, 6.875%, 8/01/2025 (n) | $ | 670,000 | $ 682,563 | |
Austin BidCo, Inc., 7.125%, 12/15/2028 (n) | 560,000 | 573,826 | ||
Iron Mountain, Inc., 5.25%, 3/15/2028 (n) | 515,000 | 538,973 | ||
Iron Mountain, Inc., 5.25%, 7/15/2030 (n) | 666,000 | 705,014 | ||
Iron Mountain, Inc., REIT, 4.875%, 9/15/2027 (n) | 955,000 | 990,006 | ||
Nielsen Finance LLC, 4.5%, 7/15/2029 (n) | 1,485,000 | 1,489,158 | ||
Nielsen Finance LLC, 4.75%, 7/15/2031 (n) | 383,000 | 383,958 | ||
Paysafe Finance PLC, 4%, 6/15/2029 (z) | 820,000 | 807,700 | ||
Switch Ltd., 3.75%, 9/15/2028 (n) | 1,244,000 | 1,259,550 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Business Services – continued | ||||
Switch Ltd., 4.125%, 6/15/2029 (n) | $ | 360,000 | $ 369,450 | |
Verscend Escrow Corp., 9.75%, 8/15/2026 (n) | 770,000 | 811,387 | ||
$8,611,585 | ||||
Cable TV – 7.5% | ||||
CCO Holdings LLC/CCO Holdings Capital Corp., 5.75%, 2/15/2026 (n) | $ | 869,000 | $ 898,164 | |
CCO Holdings LLC/CCO Holdings Capital Corp., 4.75%, 3/01/2030 (n) | 2,690,000 | 2,844,675 | ||
CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 8/15/2030 (n) | 1,010,000 | 1,051,626 | ||
CCO Holdings LLC/CCO Holdings Capital Corp., 4.25%, 2/01/2031 (n) | 1,395,000 | 1,421,156 | ||
CSC Holdings LLC, 5.5%, 4/15/2027 (n) | 2,895,000 | 3,039,895 | ||
CSC Holdings LLC, 5.75%, 1/15/2030 (n) | 1,595,000 | 1,656,806 | ||
CSC Holdings LLC, 4.125%, 12/01/2030 (n) | 395,000 | 392,531 | ||
DISH DBS Corp., 7.75%, 7/01/2026 | 1,055,000 | 1,194,788 | ||
DISH DBS Corp., 5.125%, 6/01/2029 (n) | 675,000 | 666,515 | ||
Intelsat Jackson Holdings S.A., 5.5%, 8/01/2023 (a)(d) | 695,000 | 397,888 | ||
Intelsat Jackson Holdings S.A., 9.75%, 7/15/2025 (a)(d)(n) | 440,000 | 256,300 | ||
LCPR Senior Secured Financing DAC, 6.75%, 10/15/2027 (n) | 980,000 | 1,056,146 | ||
LCPR Senior Secured Financing DAC, 5.125%, 7/15/2029 (n) | 325,000 | 335,969 | ||
Sirius XM Radio, Inc., 4.625%, 7/15/2024 (n) | 995,000 | 1,021,268 | ||
Sirius XM Radio, Inc., 4%, 7/15/2028 (n) | 1,233,000 | 1,269,990 | ||
Sirius XM Radio, Inc., 5.5%, 7/01/2029 (n) | 2,055,000 | 2,239,333 | ||
Telenet Finance Luxembourg S.A., 5.5%, 3/01/2028 (n) | 1,600,000 | 1,683,200 | ||
Videotron Ltd., 5.375%, 6/15/2024 (n) | 290,000 | 317,550 | ||
Videotron Ltd., 5.125%, 4/15/2027 (n) | 2,020,000 | 2,110,900 | ||
Videotron Ltd., 3.625%, 6/15/2029 (n) | 396,000 | 403,805 | ||
Ziggo Bond Finance B.V., 5.125%, 2/28/2030 (n) | 1,715,000 | 1,755,285 | ||
$26,013,790 | ||||
Chemicals – 1.9% | ||||
Axalta Coating Systems Ltd., 4.75%, 6/15/2027 (n) | $ | 534,000 | $ 559,365 | |
Axalta Coating Systems Ltd., 3.375%, 2/15/2029 (n) | 810,000 | 791,775 | ||
Consolidated Energy Finance S.A., 6.875%, 6/15/2025 (n) | 885,000 | 901,523 | ||
Element Solutions, Inc., 3.875%, 9/01/2028 (n) | 1,137,000 | 1,160,081 | ||
Herens Holdco S.à r.l., 4.75%, 5/15/2028 (n) | 890,000 | 885,550 | ||
Ingevity Corp., 3.875%, 11/01/2028 (n) | 1,230,000 | 1,220,775 | ||
Starfruit Finance Co./Starfruit U.S. Holding Co. LLC, 8%, 10/01/2026 (n) | 970,000 | 1,028,200 | ||
$6,547,269 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Computer Software – 1.0% | ||||
Calrivate Science Holdings Corp., 4.875%, 6/30/2029 (n) | $ | 410,000 | $ 420,763 | |
Camelot Finance S.A., 4.5%, 11/01/2026 (n) | 1,585,000 | 1,658,306 | ||
PTC, Inc., 3.625%, 2/15/2025 (n) | 955,000 | 983,650 | ||
PTC, Inc., 4%, 2/15/2028 (n) | 540,000 | 557,820 | ||
$3,620,539 | ||||
Computer Software - Systems – 1.6% | ||||
Endurance International Group Holdings, Inc., 6%, 2/15/2029 (n) | $ | 560,000 | $ 554,400 | |
Fair Isaac Corp., 5.25%, 5/15/2026 (n) | 1,965,000 | 2,210,625 | ||
Fair Isaac Corp., 4%, 6/15/2028 (n) | 250,000 | 258,415 | ||
SS&C Technologies Holdings, Inc., 5.5%, 9/30/2027 (n) | 1,520,000 | 1,610,744 | ||
Twilio, Inc., 3.625%, 3/15/2029 | 770,000 | 785,400 | ||
$5,419,584 | ||||
Conglomerates – 3.7% | ||||
Amsted Industries Co., 5.625%, 7/01/2027 (n) | $ | 1,335,000 | $ 1,406,756 | |
BWX Technologies, Inc., 5.375%, 7/15/2026 (n) | 1,685,000 | 1,729,568 | ||
BWX Technologies, Inc., 4.125%, 6/30/2028 (n) | 338,000 | 344,338 | ||
BWX Technologies, Inc., 4.125%, 4/15/2029 (n) | 1,460,000 | 1,485,550 | ||
EnerSys, 5%, 4/30/2023 (n) | 790,000 | 824,562 | ||
EnerSys, 4.375%, 12/15/2027 (n) | 495,000 | 515,142 | ||
Gates Global LLC, 6.25%, 1/15/2026 (n) | 840,000 | 879,913 | ||
Granite Holdings U.S. Acquisition Co., 11%, 10/01/2027 (n) | 715,000 | 797,225 | ||
Griffon Corp., 5.75%, 3/01/2028 | 1,195,000 | 1,269,687 | ||
Stevens Holding Co., Inc., 6.125%, 10/01/2026 (n) | 1,030,000 | 1,104,675 | ||
TriMas Corp., 4.125%, 4/15/2029 (n) | 2,336,000 | 2,364,733 | ||
$12,722,149 | ||||
Construction – 1.7% | ||||
Empire Communities Corp., 7%, 12/15/2025 (n) | $ | 760,000 | $ 798,000 | |
Mattamy Group Corp., 5.25%, 12/15/2027 (n) | 510,000 | 532,950 | ||
Mattamy Group Corp., 4.625%, 3/01/2030 (n) | 880,000 | 898,920 | ||
Shea Homes LP/Shea Homes Funding Corp., 4.75%, 2/15/2028 (n) | 1,245,000 | 1,274,096 | ||
Taylor Morrison Communities, Inc., 5.75%, 1/15/2028 (n) | 565,000 | 637,885 | ||
Taylor Morrison Communities, Inc., 5.125%, 8/01/2030 (n) | 550,000 | 596,134 | ||
Weekley Homes LLC/Weekley Finance Corp., 4.875%, 9/15/2028 (n) | 938,000 | 970,830 | ||
$5,708,815 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Consumer Products – 1.5% | ||||
Coty, Inc., 6.5%, 4/15/2026 (n) | $ | 800,000 | $ 810,440 | |
Energizer Holdings, Inc., 4.375%, 3/31/2029 (n) | 1,105,000 | 1,106,138 | ||
Mattel, Inc., 3.375%, 4/01/2026 (n) | 783,000 | 812,362 | ||
Mattel, Inc., 5.875%, 12/15/2027 (n) | 546,000 | 595,140 | ||
Mattel, Inc., 5.45%, 11/01/2041 | 315,000 | 363,038 | ||
Prestige Consumer Healthcare, Inc., 5.125%, 1/15/2028 (n) | 945,000 | 994,858 | ||
Prestige Consumer Healthcare, Inc., 3.75%, 4/01/2031 (n) | 420,000 | 404,933 | ||
$5,086,909 | ||||
Consumer Services – 3.6% | ||||
Allied Universal Holdco LLC, 6.625%, 7/15/2026 (n) | $ | 320,000 | $ 339,274 | |
Allied Universal Holdco LLC, 9.75%, 7/15/2027 (n) | 740,000 | 814,925 | ||
Allied Universal Holdco LLC, 6%, 6/01/2029 (n) | 465,000 | 471,412 | ||
ANGI Group LLC, 3.875%, 8/15/2028 (n) | 1,130,000 | 1,122,937 | ||
Arches Buyer, Inc., 6.125%, 12/01/2028 (n) | 935,000 | 963,050 | ||
Garda World Security Corp., 4.625%, 2/15/2027 (n) | 350,000 | 351,750 | ||
GoDaddy, Inc., 3.5%, 3/01/2029 (n) | 1,543,000 | 1,532,970 | ||
GW B-CR Security Corp., 9.5%, 11/01/2027 (n) | 728,000 | 806,260 | ||
Match Group, Inc., 5%, 12/15/2027 (n) | 960,000 | 1,009,200 | ||
Match Group, Inc., 4.625%, 6/01/2028 (n) | 1,340,000 | 1,393,426 | ||
Match Group, Inc., 4.125%, 8/01/2030 (n) | 365,000 | 371,388 | ||
Realogy Group LLC, 9.375%, 4/01/2027 (n) | 750,000 | 833,355 | ||
Realogy Group LLC, 5.75%, 1/15/2029 (n) | 320,000 | 334,525 | ||
TriNet Group, Inc., 3.5%, 3/01/2029 (n) | 1,484,000 | 1,463,224 | ||
WASH Multifamily Acquisition, Inc., 5.75%, 4/15/2026 (n) | 630,000 | 657,783 | ||
$12,465,479 | ||||
Containers – 3.4% | ||||
ARD Finance S.A., 6.5%, (6.5% cash or 7.25% PIK) 6/30/2027 (n)(p) | $ | 610,000 | $ 640,500 | |
Ardagh Metal Packaging, 3.25%, 9/01/2028 (n) | 550,000 | 548,407 | ||
Ardagh Metal Packaging, 4%, 9/01/2029 (n) | 950,000 | 941,996 | ||
Ardagh Packaging Finance PLC/Ardagh MP Holdings USA, Inc., 5.25%, 8/15/2027 (n) | 1,305,000 | 1,331,100 | ||
Crown Americas LLC/Crown Americas Capital Corp. IV, 4.5%, 1/15/2023 | 892,000 | 934,370 | ||
Crown Americas LLC/Crown Americas Capital Corp. V, 4.25%, 9/30/2026 | 1,510,000 | 1,619,475 | ||
Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 2/01/2026 | 610,000 | 632,997 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Containers – continued | ||||
Flex Acquisition Co., Inc., 6.875%, 1/15/2025 (n) | $ | 940,000 | $ 954,100 | |
Greif, Inc., 6.5%, 3/01/2027 (n) | 890,000 | 938,683 | ||
Reynolds Group, 4%, 10/15/2027 (n) | 1,225,000 | 1,216,513 | ||
Silgan Holdings, Inc., 4.75%, 3/15/2025 | 1,110,000 | 1,128,037 | ||
Silgan Holdings, Inc., 4.125%, 2/01/2028 | 740,000 | 767,750 | ||
$11,653,928 | ||||
Electrical Equipment – 0.4% | ||||
CommScope Technologies LLC, 5%, 3/15/2027 (n) | $ | 1,510,000 | $ 1,545,862 | |
Electronics – 1.9% | ||||
Diebold Nixdorf, Inc., 8.5%, 4/15/2024 | $ | 240,000 | $ 245,700 | |
Diebold Nixdorf, Inc., 9.375%, 7/15/2025 (n) | 570,000 | 631,987 | ||
Entegris, Inc., 4.375%, 4/15/2028 (n) | 390,000 | 407,063 | ||
Entegris, Inc., 3.625%, 5/01/2029 (n) | 1,150,000 | 1,164,375 | ||
Sensata Technologies B.V., 5.625%, 11/01/2024 (n) | 745,000 | 827,881 | ||
Sensata Technologies B.V., 5%, 10/01/2025 (n) | 1,480,000 | 1,648,350 | ||
Sensata Technologies, Inc., 4.375%, 2/15/2030 (n) | 675,000 | 711,343 | ||
Synaptics, Inc., 4%, 6/15/2029 (n) | 980,000 | 984,900 | ||
$6,621,599 | ||||
Energy - Independent – 3.7% | ||||
Apache Corp., 4.375%, 10/15/2028 | $ | 1,015,000 | $ 1,080,467 | |
Apache Corp., 4.75%, 4/15/2043 | 535,000 | 556,240 | ||
Callon Petroleum Co., 8%, 8/01/2028 (n) | 415,000 | 419,669 | ||
CNX Resources Corp., 6%, 1/15/2029 (n) | 885,000 | 956,880 | ||
Comstock Resources, Inc., 6.75%, 3/01/2029 (n) | 370,000 | 394,135 | ||
Encino Acquisition Partners Holdings LLC, 8.5%, 5/01/2028 (n) | 550,000 | 561,000 | ||
EQT Corp., 5%, 1/15/2029 | 855,000 | 953,299 | ||
Leviathan Bond Ltd., 6.5%, 6/30/2027 (n) | 525,000 | 582,750 | ||
Murphy Oil Corp., 5.875%, 12/01/2027 | 460,000 | 480,102 | ||
Occidental Petroleum Corp., 5.875%, 9/01/2025 | 795,000 | 884,437 | ||
Occidental Petroleum Corp., 5.5%, 12/01/2025 | 845,000 | 933,742 | ||
Occidental Petroleum Corp., 6.45%, 9/15/2036 | 670,000 | 801,052 | ||
Occidental Petroleum Corp., 6.6%, 3/15/2046 | 995,000 | 1,182,756 | ||
Range Resources Corp., 9.25%, 2/01/2026 | 325,000 | 358,313 | ||
Range Resources Corp., 8.25%, 1/15/2029 (n) | 560,000 | 631,400 | ||
SM Energy Co., 6.5%, 7/15/2028 | 370,000 | 380,175 | ||
Southwestern Energy Co., 6.45%, 1/23/2025 | 477,400 | 528,482 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Energy - Independent – continued | ||||
Southwestern Energy Co., 7.5%, 4/01/2026 | $ | 755,900 | $ 800,309 | |
Southwestern Energy Co., 7.75%, 10/01/2027 | 205,000 | 222,423 | ||
$12,707,631 | ||||
Entertainment – 3.1% | ||||
AMC Entertainment Holdings, Inc., 12%, (10% cash or 12% PIK) 6/15/2026 (n)(p) | $ | 330,000 | $ 337,838 | |
Boyne USA, Inc., 4.75%, 5/15/2029 (n) | 1,175,000 | 1,212,283 | ||
Carnival Corp. PLC, 7.625%, 3/01/2026 (n) | 1,640,000 | 1,781,450 | ||
Carnival Corp. PLC, 5.75%, 3/01/2027 (n) | 790,000 | 827,525 | ||
Cedar Fair LP/Canada's Wonderland Co./Magnum Management Corp./Millennium Operations LLC, 5.375%, 4/15/2027 | 570,000 | 587,100 | ||
Cedar Fair LP/Canada's Wonderland Co./Magnum Management Corp./Millennium Operations LLC, 5.25%, 7/15/2029 | 565,000 | 581,950 | ||
Live Nation Entertainment, Inc., 5.625%, 3/15/2026 (n) | 1,168,000 | 1,216,332 | ||
Live Nation Entertainment, Inc., 4.75%, 10/15/2027 (n) | 550,000 | 569,938 | ||
Motion Bondco DAC, 6.625%, 11/15/2027 (n) | 645,000 | 653,062 | ||
NCL Corp. Ltd., 3.625%, 12/15/2024 (n) | 425,000 | 410,125 | ||
NCL Corp. Ltd., 5.875%, 3/15/2026 (n) | 465,000 | 487,088 | ||
Royal Caribbean Cruises Ltd., 5.5%, 4/01/2028 (n) | 1,195,000 | 1,251,523 | ||
Six Flags Entertainment Corp., 4.875%, 7/31/2024 (n) | 860,000 | 868,600 | ||
$10,784,814 | ||||
Financial Institutions – 2.7% | ||||
Avation Capital S.A., 9%, (8.25% cash or 9% PIK) 10/31/2026 (n)(p) | $ | 635,000 | $ 526,256 | |
Credit Acceptance Corp., 5.125%, 12/31/2024 (n) | 1,180,000 | 1,222,775 | ||
Freedom Mortgage Corp., 7.625%, 5/01/2026 (n) | 790,000 | 822,390 | ||
Global Aircraft Leasing Co. Ltd., 6.5%,(6.5% cash or 7.25% PIK) 9/15/2024 (n)(p) | 2,353,878 | 2,365,647 | ||
Howard Hughes Corp., 4.125%, 2/01/2029 (n) | 1,390,000 | 1,390,028 | ||
Nationstar Mortgage Holdings, Inc., 6%, 1/15/2027 (n) | 1,055,000 | 1,093,276 | ||
OneMain Finance Corp., 6.875%, 3/15/2025 | 555,000 | 626,373 | ||
OneMain Finance Corp., 8.875%, 6/01/2025 | 509,000 | 564,323 | ||
OneMain Finance Corp., 7.125%, 3/15/2026 | 490,000 | 570,708 | ||
$9,181,776 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Food & Beverages – 3.1% | ||||
Aramark Services, Inc., 6.375%, 5/01/2025 (n) | $ | 1,440,000 | $ 1,530,000 | |
JBS USA LLC/JBS USA Finance, Inc., 6.75%, 2/15/2028 (n) | 1,750,000 | 1,922,812 | ||
JBS USA Lux S.A./JBS USA Finance, Inc., 5.5%, 1/15/2030 (n) | 570,000 | 637,477 | ||
Kraft Heinz Foods Co., 4.375%, 6/01/2046 | 1,615,000 | 1,830,116 | ||
Performance Food Group Co., 5.5%, 10/15/2027 (n) | 1,110,000 | 1,166,555 | ||
Post Holdings, Inc., 5.625%, 1/15/2028 (n) | 805,000 | 853,300 | ||
Post Holdings, Inc., 4.625%, 4/15/2030 (n) | 805,000 | 818,548 | ||
Primo Water Holding, Inc., 4.375%, 4/30/2029 (n) | 780,000 | 780,000 | ||
U.S. Foods Holding Corp., 4.75%, 2/15/2029 (n) | 1,205,000 | 1,229,100 | ||
$10,767,908 | ||||
Gaming & Lodging – 6.5% | ||||
Boyd Gaming Corp., 4.75%, 12/01/2027 | $ | 1,000,000 | $ 1,035,000 | |
Boyd Gaming Corp., 4.75%, 6/15/2031 (n) | 405,000 | 420,188 | ||
Caesars Resort Collection LLC/CRC Finco, Inc., 5.25%, 10/15/2025 (n) | 1,135,000 | 1,149,188 | ||
CCM Merger, Inc., 6.375%, 5/01/2026 (n) | 880,000 | 924,000 | ||
Colt Merger Sub, Inc., 5.75%, 7/01/2025 (n) | 695,000 | 732,356 | ||
Colt Merger Sub, Inc., 8.125%, 7/01/2027 (n) | 857,000 | 953,155 | ||
Hilton Domestic Operating Co., Inc., 3.75%, 5/01/2029 (n) | 1,070,000 | 1,080,700 | ||
Hilton Domestic Operating Co., Inc., 3.625%, 2/15/2032 (n) | 1,045,000 | 1,031,938 | ||
International Game Technology PLC, 4.125%, 4/15/2026 (n) | 1,505,000 | 1,567,081 | ||
Marriott Ownership Resorts, Inc., 4.5%, 6/15/2029 (n) | 655,000 | 664,006 | ||
MGM China Holdings Ltd., 5.875%, 5/15/2026 (n) | 535,000 | 561,750 | ||
MGM China Holdings Ltd., 4.75%, 2/01/2027 (n) | 354,000 | 360,807 | ||
MGM Growth Properties LLC, 4.625%, 6/15/2025 (n) | 1,070,000 | 1,143,156 | ||
MGM Growth Properties LLC, 5.75%, 2/01/2027 | 415,000 | 461,737 | ||
MGM Growth Properties LLC, 3.875%, 2/15/2029 (n) | 708,000 | 719,024 | ||
MGM Resorts International, 6.75%, 5/01/2025 | 990,000 | 1,060,448 | ||
MGM Resorts International, 5.5%, 4/15/2027 | 720,000 | 790,200 | ||
Penn National Gaming, Inc., 4.125%, 7/01/2029 (n) | 700,000 | 699,125 | ||
Scientific Games Corp., 8.25%, 3/15/2026 (n) | 615,000 | 659,575 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Gaming & Lodging – continued | ||||
Scientific Games International, Inc., 7%, 5/15/2028 (n) | $ | 645,000 | $ 704,469 | |
VICI Properties LP, REIT, 4.25%, 12/01/2026 (n) | 765,000 | 795,768 | ||
VICI Properties LP, REIT, 3.75%, 2/15/2027 (n) | 1,135,000 | 1,154,431 | ||
Wyndham Hotels & Resorts, Inc., 4.375%, 8/15/2028 (n) | 1,230,000 | 1,276,998 | ||
Wynn Macau Ltd., 5.5%, 1/15/2026 (n) | 575,000 | 602,681 | ||
Wynn Macau Ltd., 5.625%, 8/26/2028 (n) | 1,028,000 | 1,071,690 | ||
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., 5.125%, 10/01/2029 (n) | 815,000 | 860,844 | ||
$22,480,315 | ||||
Industrial – 0.3% | ||||
Williams Scotsman International, Inc., 4.625%, 8/15/2028 (n) | $ | 1,178,000 | $ 1,216,521 | |
Insurance - Property & Casualty – 1.0% | ||||
Acrisure LLC/Acrisure Finance, Inc., 7%, 11/15/2025 (n) | $ | 190,000 | $ 193,800 | |
Alliant Holdings Intermediate LLC, 6.75%, 10/15/2027 (n) | 1,385,000 | 1,455,580 | ||
AssuredPartners, Inc., 5.625%, 1/15/2029 (n) | 665,000 | 665,000 | ||
Broadstreet Partners, Inc., 5.875%, 4/15/2029 (n) | 625,000 | 637,500 | ||
GTCR (AP) Finance, Inc., 8%, 5/15/2027 (n) | 320,000 | 340,800 | ||
$3,292,680 | ||||
Major Banks – 0.3% | ||||
UBS Group AG, 6.875% to 8/07/2025, FLR (Swap Rate - 5yr. + 4.59%) to 12/29/2049 | $ | 895,000 | $ 1,018,725 | |
Medical & Health Technology & Services – 6.5% | ||||
AdaptHealth LLC, 4.625%, 8/01/2029 (n) | $ | 870,000 | $ 880,875 | |
Avantor Funding, Inc., 4.625%, 7/15/2028 (n) | 1,454,000 | 1,535,090 | ||
BCPE Cycle Merger Sub II, Inc., 10.625%, 7/15/2027 (n) | 610,000 | 639,737 | ||
Catalent, Inc., 3.125%, 2/15/2029 (n) | 1,520,000 | 1,471,938 | ||
Charles River Laboratories International, Inc., 3.75%, 3/15/2029 (n) | 1,372,000 | 1,390,865 | ||
CHS/Community Health Systems, Inc., 6.625%, 2/15/2025 (n) | 1,125,000 | 1,189,676 | ||
CHS/Community Health Systems, Inc., 8%, 12/15/2027 (n) | 190,000 | 211,385 | ||
CHS/Community Health Systems, Inc., 6.125%, 4/01/2030 (n) | 685,000 | 695,275 | ||
DaVita, Inc., 4.625%, 6/01/2030 (n) | 765,000 | 786,588 | ||
DaVita, Inc., 3.75%, 2/15/2031 (n) | 624,000 | 599,040 | ||
Encompass Health Corp., 5.75%, 9/15/2025 | 515,000 | 529,806 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Medical & Health Technology & Services – continued | ||||
Encompass Health Corp., 4.625%, 4/01/2031 | $ | 635,000 | $ 680,371 | |
HCA, Inc., 5.375%, 2/01/2025 | 260,000 | 293,280 | ||
HCA, Inc., 5.875%, 2/15/2026 | 1,345,000 | 1,554,349 | ||
HCA, Inc., 5.625%, 9/01/2028 | 320,000 | 379,200 | ||
HCA, Inc., 5.875%, 2/01/2029 | 395,000 | 476,962 | ||
HCA, Inc., 3.5%, 9/01/2030 | 1,380,000 | 1,470,211 | ||
HealthSouth Corp., 5.125%, 3/15/2023 | 337,000 | 337,843 | ||
Heartland Dental LLC, 8.5%, 5/01/2026 (n) | 680,000 | 708,900 | ||
IQVIA Holdings, Inc., 5%, 10/15/2026 (n) | 1,200,000 | 1,242,000 | ||
IQVIA Holdings, Inc., 5%, 5/15/2027 (n) | 1,510,000 | 1,581,725 | ||
LifePoint Health, Inc., 4.375%, 2/15/2027 (n) | 380,000 | 384,560 | ||
LifePoint Health, Inc., 5.375%, 1/15/2029 (n) | 430,000 | 419,250 | ||
Regional Care/LifePoint Health, Inc., 9.75%, 12/01/2026 (n) | 825,000 | 887,906 | ||
Syneos Health, Inc., 3.625%, 1/15/2029 (n) | 1,471,000 | 1,456,290 | ||
US Acute Care Solutions LLC, 6.375%, 3/01/2026 (n) | 550,000 | 568,315 | ||
$22,371,437 | ||||
Medical Equipment – 0.8% | ||||
Hill-Rom Holdings, Inc., 4.375%, 9/15/2027 (n) | $ | 1,330,000 | $ 1,376,550 | |
Teleflex, Inc., 4.625%, 11/15/2027 | 1,230,000 | 1,310,184 | ||
$2,686,734 | ||||
Metals & Mining – 3.6% | ||||
Baffinland Iron Mines Corp./Baffinland Iron Mines LP, 8.75%, 7/15/2026 (n) | $ | 1,140,000 | $ 1,208,400 | |
Coeur Mining, Inc., 5.125%, 2/15/2029 (n) | 1,155,000 | 1,143,450 | ||
Compass Minerals International, Inc., 6.75%, 12/01/2027 (n) | 985,000 | 1,058,875 | ||
First Quantum Minerals Ltd., 6.875%, 3/01/2026 (n) | 200,000 | 209,222 | ||
First Quantum Minerals Ltd., 6.875%, 10/15/2027 (n) | 678,000 | 738,817 | ||
Freeport-McMoRan, Inc., 5%, 9/01/2027 | 960,000 | 1,014,000 | ||
Freeport-McMoRan, Inc., 4.375%, 8/01/2028 | 550,000 | 580,938 | ||
Freeport-McMoRan, Inc., 5.25%, 9/01/2029 | 810,000 | 894,037 | ||
GrafTech Finance, Inc., 4.625%, 12/15/2028 (n) | 816,000 | 837,420 | ||
Grinding Media, Inc./Moly-Cop AltaSteel Ltd., 7.375%, 12/15/2023 (n) | 1,075,000 | 1,099,230 | ||
Kaiser Aluminum Corp., 4.625%, 3/01/2028 (n) | 1,505,000 | 1,554,855 | ||
Novelis Corp., 5.875%, 9/30/2026 (n) | 1,490,000 | 1,549,979 | ||
Novelis Corp., 4.75%, 1/30/2030 (n) | 570,000 | 598,500 | ||
Petra Diamonds US$ Treasury PLC, 10.5%, 3/08/2026 (n) | 102,000 | 99,705 | ||
$12,587,428 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Midstream – 4.0% | ||||
Cheniere Energy Partners LP, 4.5%, 10/01/2029 | $ | 314,000 | $ 337,550 | |
Cheniere Energy, Inc., 4%, 3/01/2031 (n) | 965,000 | 1,008,425 | ||
DT Midstream, Inc., 4.125%, 6/15/2029 (n) | 771,000 | 782,819 | ||
DT Midstream, Inc., 4.375%, 6/15/2031 (n) | 1,111,000 | 1,135,209 | ||
EnLink Midstream Partners LP, 4.85%, 7/15/2026 | 640,000 | 662,400 | ||
EnLink Midstream Partners LP, 5.625%, 1/15/2028 (n) | 712,000 | 752,150 | ||
EQM Midstream Partners LP, 6%, 7/01/2025 (n) | 248,000 | 269,700 | ||
EQM Midstream Partners LP, 6.5%, 7/01/2027 (n) | 240,000 | 267,600 | ||
EQM Midstream Partners LP, 5.5%, 7/15/2028 | 1,910,000 | 2,063,908 | ||
EQM Midstream Partners LP, 4.5%, 1/15/2029 (n) | 480,000 | 488,341 | ||
Genesis Energy LP/Genesis Energy Finance Corp., 5.625%, 6/15/2024 | 290,000 | 290,725 | ||
Genesis Energy LP/Genesis Energy Finance Corp., 6.25%, 5/15/2026 | 825,500 | 827,564 | ||
Genesis Energy LP/Genesis Energy Finance Corp., 8%, 1/15/2027 | 80,000 | 84,050 | ||
Northriver Midstream Finance LP, 5.625%, 2/15/2026 (n) | 1,235,000 | 1,281,312 | ||
Targa Resources Partners LP/Targa Resources Finance Corp., 6.875%, 1/15/2029 | 1,385,000 | 1,560,383 | ||
Targa Resources Partners LP/Targa Resources Finance Corp., 4.875%, 2/01/2031 (n) | 735,000 | 795,637 | ||
Western Midstream Operating LP, 5.3%, 2/01/2030 | 635,000 | 711,203 | ||
Western Midstream Operation LP, 4.65%, 7/01/2026 | 320,000 | 341,498 | ||
Western Midstream Operation LP, 5.5%, 8/15/2048 | 260,000 | 282,981 | ||
$13,943,455 | ||||
Municipals – 0.1% | ||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority Rev. (Cogeneration Facilities - AES Puerto Rico Project), 9.12%, 6/01/2022 | $ | 355,000 | $ 363,875 | |
Network & Telecom – 0.3% | ||||
Front Range BidCo, Inc., 6.125%, 3/01/2028 (n) | $ | 995,000 | $ 1,016,144 | |
Oil Services – 0.2% | ||||
Solaris Midstream Holding LLC, 7.625%, 4/01/2026 (n) | $ | 530,000 | $ 561,800 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Oils – 0.3% | ||||
PBF Holding Co. LLC/PBF Finance Corp., 7.25%, 6/15/2025 | $ | 655,000 | $ 497,800 | |
PBF Holding Co. LLC/PBF Finance Corp., 6%, 2/15/2028 | 675,000 | 462,375 | ||
$960,175 | ||||
Personal Computers & Peripherals – 0.5% | ||||
NCR Corp., 5%, 10/01/2028 (n) | $ | 1,195,000 | $ 1,235,714 | |
NCR Corp., 5.125%, 4/15/2029 (n) | 590,000 | 608,437 | ||
$1,844,151 | ||||
Pharmaceuticals – 2.7% | ||||
Bausch Health Companies, Inc., 6.125%, 4/15/2025 (n) | $ | 2,316,000 | $ 2,373,900 | |
Bausch Health Companies, Inc., 5%, 1/30/2028 (n) | 1,790,000 | 1,698,263 | ||
Bausch Health Companies, Inc., 5%, 2/15/2029 (n) | 580,000 | 540,850 | ||
Emergent BioSolutions, Inc., 3.875%, 8/15/2028 (n) | 774,000 | 758,148 | ||
Endo Luxembourg Finance Co I S.à r.l., 6.125%, 4/01/2029 (n) | 550,000 | 539,000 | ||
Jazz Securities DAC, 4.375%, 1/15/2029 (n) | 1,150,000 | 1,192,320 | ||
Organon Finance 1 LLC, 4.125%, 4/30/2028 (n) | 781,000 | 796,464 | ||
Organon Finance 1 LLC, 5.125%, 4/30/2031 (n) | 731,000 | 753,076 | ||
Par Pharmaceutical, Inc., 7.5%, 4/01/2027 (n) | 575,000 | 587,840 | ||
$9,239,861 | ||||
Pollution Control – 0.8% | ||||
GFL Environmental, Inc., 3.75%, 8/01/2025 (n) | $ | 325,000 | $ 333,938 | |
GFL Environmental, Inc., 4%, 8/01/2028 (n) | 560,000 | 553,196 | ||
GFL Environmental, Inc., 3.5%, 9/01/2028 (n) | 645,000 | 643,387 | ||
GFL Environmental, Inc., 4.75%, 6/15/2029 (n) | 320,000 | 332,256 | ||
Stericycle, Inc., 3.875%, 1/15/2029 (n) | 880,000 | 878,266 | ||
$2,741,043 | ||||
Precious Metals & Minerals – 0.4% | ||||
IAMGOLD Corp., 5.75%, 10/15/2028 (n) | $ | 845,000 | $ 879,096 | |
Taseko Mines Ltd., 7%, 2/15/2026 (n) | 550,000 | 573,375 | ||
$1,452,471 | ||||
Printing & Publishing – 0.4% | ||||
Cimpress N.V., 7%, 6/15/2026 (n) | $ | 1,255,000 | $ 1,322,983 | |
Railroad & Shipping – 0.3% | ||||
Watco Cos. LLC/Watco Finance Corp., 6.5%, 6/15/2027 (n) | $ | 993,000 | $ 1,062,510 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Real Estate - Other – 0.8% | ||||
EPR Properties, REIT, 4.5%, 6/01/2027 | $ | 725,000 | $ 773,003 | |
EPR Properties, REIT, 4.95%, 4/15/2028 | 155,000 | 167,407 | ||
InterMed Holdings Ltd., 5.875%, 10/01/2028 (n) | 945,000 | 1,006,312 | ||
XHR LP, REIT, 4.875%, 6/01/2029 (n) | 965,000 | 996,362 | ||
$2,943,084 | ||||
Retailers – 0.8% | ||||
L Brands, Inc., 5.25%, 2/01/2028 | $ | 1,840,000 | $ 2,058,500 | |
L Brands, Inc., 6.625%, 10/01/2030 (n) | 405,000 | 468,787 | ||
Victoria's Secret & Co., 4.625%, 7/15/2029 (n) | 330,000 | 330,000 | ||
$2,857,287 | ||||
Specialty Chemicals – 0.3% | ||||
Univar Solutions USA, Inc., 5.125%, 12/01/2027 (n) | $ | 955,000 | $ 1,003,944 | |
Specialty Stores – 1.4% | ||||
Group 1 Automotive, Inc., 4%, 8/15/2028 (n) | $ | 1,183,000 | $ 1,203,702 | |
Magic Mergeco, Inc., 5.25%, 5/01/2028 (n) | 550,000 | 564,262 | ||
Magic Mergeco, Inc., 7.875%, 5/01/2029 (n) | 550,000 | 567,188 | ||
Penske Automotive Group Co., 3.75%, 6/15/2029 | 1,427,000 | 1,435,906 | ||
PetSmart, Inc./PetSmart Finance Corp., 4.75%, 2/15/2028 (n) | 500,000 | 519,375 | ||
PetSmart, Inc./PetSmart Finance Corp., 7.75%, 2/15/2029 (n) | 500,000 | 551,250 | ||
$4,841,683 | ||||
Supermarkets – 0.6% | ||||
Albertsons Cos. LLC/Safeway, Inc., 5.75%, 3/15/2025 | $ | 119,000 | $ 121,677 | |
Albertsons Cos. LLC/Safeway, Inc., 4.625%, 1/15/2027 (n) | 1,245,000 | 1,302,208 | ||
Albertsons Cos. LLC/Safeway, Inc., 3.5%, 3/15/2029 (n) | 825,000 | 815,719 | ||
$2,239,604 | ||||
Telecommunications - Wireless – 4.3% | ||||
Altice France S.A., 8.125%, 2/01/2027 (n) | $ | 1,085,000 | $ 1,182,107 | |
Altice France S.A., 5.5%, 1/15/2028 (n) | 805,000 | 835,349 | ||
Altice France S.A., 6%, 2/15/2028 (n) | 975,000 | 970,905 | ||
Altice France S.A., 5.125%, 7/15/2029 (n) | 1,195,000 | 1,200,855 | ||
Digicel International Finance Ltd., 8.75%, 5/25/2024 (n) | 730,000 | 760,113 | ||
SBA Communications Corp., 3.875%, 2/15/2027 | 754,000 | 774,286 | ||
SBA Communications Corp., 3.125%, 2/01/2029 (n) | 1,155,000 | 1,113,496 | ||
Sprint Capital Corp., 6.875%, 11/15/2028 | 1,530,000 | 1,962,225 | ||
Sprint Corp., 7.125%, 6/15/2024 | 410,000 | 473,038 | ||
Sprint Corp., 7.625%, 3/01/2026 | 1,875,000 | 2,287,500 | ||
T-Mobile USA, Inc., 2.25%, 2/15/2026 | 560,000 | 564,200 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Telecommunications - Wireless – continued | ||||
T-Mobile USA, Inc., 5.375%, 4/15/2027 | $ | 1,430,000 | $ 1,522,507 | |
T-Mobile USA, Inc., 2.625%, 2/15/2029 | 1,168,000 | 1,153,400 | ||
$14,799,981 | ||||
Tobacco – 0.4% | ||||
Vector Group Ltd., 10.5%, 11/01/2026 (n) | $ | 545,000 | $ 578,381 | |
Vector Group Ltd., 5.75%, 2/01/2029 (n) | 630,000 | 641,787 | ||
$1,220,168 | ||||
Utilities - Electric Power – 2.5% | ||||
Calpine Corp., 4.5%, 2/15/2028 (n) | $ | 995,000 | $ 1,014,900 | |
Calpine Corp., 5.125%, 3/15/2028 (n) | 1,260,000 | 1,282,050 | ||
Clearway Energy Operating LLC, 4.75%, 3/15/2028 (n) | 615,000 | 644,981 | ||
Clearway Energy Operating LLC, 3.75%, 2/15/2031 (n) | 1,515,000 | 1,507,425 | ||
NextEra Energy Operating Co., 4.25%, 9/15/2024 (n) | 146,000 | 154,030 | ||
NextEra Energy Operating Co., 4.5%, 9/15/2027 (n) | 640,000 | 692,576 | ||
NextEra Energy, Inc., 4.25%, 7/15/2024 (n) | 688,000 | 725,840 | ||
TerraForm Global Operating LLC, 6.125%, 3/01/2026 (n) | 650,000 | 670,313 | ||
TerraForm Power Operating LLC, 5%, 1/31/2028 (n) | 1,270,000 | 1,344,612 | ||
TerraForm Power Operating LLC, 4.75%, 1/15/2030 (n) | 480,000 | 491,602 | ||
$8,528,329 | ||||
Total Bonds (Identified Cost, $323,196,959) | $ 331,542,252 | |||
Floating Rate Loans (r) – 0.5% | ||||
Broadcasting – 0.1% | ||||
Nexstar Broadcasting, Inc., Term Loan B4, 2.592%, 9/18/2026 | $ | 289,883 | $ 288,899 | |
Cable TV – 0.1% | ||||
CSC Holdings LLC, Term Loan B5, 2.572%, 4/15/2027 | $ | 331,800 | $ 328,344 | |
Chemicals – 0.1% | ||||
Axalta Coating Systems U.S. Holdings, Inc., Term Loan B3, 1.897%, 6/01/2024 | $ | 274,207 | $ 272,248 | |
Element Solutions, Inc., Term Loan B1, 2.104%, 1/31/2026 | 330,120 | 329,570 | ||
$601,818 | ||||
Computer Software - Systems – 0.1% | ||||
SS&C Technologies, Inc., Term Loan B5, 1.854%, 4/16/2025 | $ | 329,892 | $ 326,049 | |
Pharmaceuticals – 0.1% | ||||
Bausch Health Companies, Inc., Term Loan B, 2.854%, 11/27/2025 | $ | 288,000 | $ 285,760 | |
Total Floating Rate Loans (Identified Cost, $1,849,454) | $ 1,830,870 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 0.2% | ||||
Construction – 0.1% | ||||
ICA Tenedora, S.A. de C.V. (a) | 147,380 | $ 329,672 | ||
Oil Services – 0.1% | ||||
LTRI Holdings LP (a)(u) | 1,115 | $ 315,010 | ||
Precious Metals & Minerals – 0.0% | ||||
Petra Diamonds Ltd. (a) | 2,704,982 | $ 55,005 | ||
Total Common Stocks (Identified Cost, $449,278) | $ 699,687 |
Strike Price | First Exercise | |||
Warrants – 0.0% | ||||
Forest & Paper Products – 0.0% | ||||
Appvion Holdings Corp. - Tranche A (1 share for 1 warrant, Expiration 6/13/23) (a) | $11.50 | 8/24/18 | 670 | $ 7 |
Appvion Holdings Corp. - Tranche B (1 share for 1 warrant, Expiration 6/13/23) (a) | 13.23 | 8/24/18 | 670 | 7 |
Total Warrants (Identified Cost, $0) | $ 14 |
Issuer | Shares/Par | Value ($) | ||
Investment Companies (h) – 2.1% | ||||
Money Market Funds – 2.1% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $7,184,930) | 7,184,930 | $ 7,184,930 | ||
Other Assets, Less Liabilities – 1.2% | 4,292,935 | |||
Net Assets – 100.0% | $345,550,688 |
(a) | Non-income producing security. |
(d) | In default. |
(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 $7,184,930 and $334,072,823, 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 $265,168,490, representing 76.7% of net assets. |
(p) | Payment-in-kind (PIK) security for which interest income may be received in additional securities and/or cash. |
(r) | The remaining maturities of floating rate loans may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty. These loans may be subject to restrictions on resale. The interest rate shown represents the weighted average of the floating interest rates on settled contracts within the loan facility at period end, unless otherwise indicated. The floating interest rates on settled contracts are determined periodically by reference to a base lending rate and a spread. |
(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. |
(z) | Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities: |
Restricted Securities | Acquisition Date | Cost | Value |
Paysafe Finance PLC, 4%, 6/15/2029 | 6/10/2021 | $820,000 | $807,700 |
% of Net assets | 0.2% |
The following abbreviations are used in this report and are defined: | |
CDO | Collateralized Debt Obligation |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
LIBOR | London Interbank Offered Rate |
REIT | Real Estate Investment Trust |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $325,495,691) | $334,072,823 |
Investments in affiliated issuers, at value (identified cost, $7,184,930) | 7,184,930 |
Cash | 2,356 |
Receivables for | |
Investments sold | 5,407,730 |
Fund shares sold | 28,859 |
Interest | 4,746,865 |
Receivable from investment adviser | 1,337 |
Other assets | 1,460 |
Total assets | $351,446,360 |
Liabilities | |
Payables for | |
Investments purchased | $5,412,169 |
Fund shares reacquired | 371,804 |
Payable to affiliates | |
Administrative services fee | 306 |
Shareholder servicing costs | 74 |
Distribution and/or service fees | 547 |
Accrued expenses and other liabilities | 110,772 |
Total liabilities | $5,895,672 |
Net assets | $345,550,688 |
Net assets consist of | |
Paid-in capital | $356,063,360 |
Total distributable earnings (loss) | (10,512,672) |
Net assets | $345,550,688 |
Shares of beneficial interest outstanding | 59,488,797 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $305,657,577 | 52,536,952 | $5.82 |
Service Class | 39,893,111 | 6,951,845 | 5.74 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Interest | $8,493,470 |
Other | 16,248 |
Dividends from affiliated issuers | 2,763 |
Total investment income | $8,512,481 |
Expenses | |
Management fee | $1,203,298 |
Distribution and/or service fees | 49,519 |
Shareholder servicing costs | 7,271 |
Administrative services fee | 27,487 |
Independent Trustees' compensation | 3,412 |
Custodian fee | 9,834 |
Shareholder communications | 22,421 |
Audit and tax fees | 40,892 |
Legal fees | 1,277 |
Miscellaneous | 19,027 |
Total expenses | $1,384,438 |
Reduction of expenses by investment adviser | (96,325) |
Net expenses | $1,288,113 |
Net investment income (loss) | $7,224,368 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $3,880,496 |
Affiliated issuers | (1,981) |
Net realized gain (loss) | $3,878,515 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(2,922,775) |
Affiliated issuers | 1,982 |
Net unrealized gain (loss) | $(2,920,793) |
Net realized and unrealized gain (loss) | $957,722 |
Change in net assets from operations | $8,182,090 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/21 (unaudited) | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $7,224,368 | $15,210,983 |
Net realized gain (loss) | 3,878,515 | (2,471,599) |
Net unrealized gain (loss) | (2,920,793) | 2,203,310 |
Change in net assets from operations | $8,182,090 | $14,942,694 |
Total distributions to shareholders | $— | $(18,798,097) |
Change in net assets from fund share transactions | $(13,923,667) | $(13,092,189) |
Total change in net assets | $(5,741,577) | $(16,947,592) |
Net assets | ||
At beginning of period | 351,292,265 | 368,239,857 |
At end of period | $345,550,688 | $351,292,265 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $5.68 | $5.72 | $5.28 | $5.77 | $5.78 | $5.43 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.12 | $0.25 | $0.27 | $0.28 | $0.28 | $0.32(c) |
Net realized and unrealized gain (loss) | 0.02 | 0.03(g) | 0.50 | (0.45) | 0.10 | 0.42 |
Total from investment operations | $0.14 | $0.28 | $0.77 | $(0.17) | $0.38 | $0.74 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.32) | $(0.33) | $(0.32) | $(0.39) | $(0.39) |
Net asset value, end of period (x) | $5.82 | $5.68 | $5.72 | $5.28 | $5.77 | $5.78 |
Total return (%) (k)(r)(s)(x) | 2.46(n) | 5.09 | 14.81 | (3.08) | 6.69 | 13.82(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.78(a) | 0.78 | 0.77 | 0.77 | 0.78 | 0.76(c) |
Expenses after expense reductions (f) | 0.72(a) | 0.72 | 0.72 | 0.72 | 0.72 | 0.70(c) |
Net investment income (loss) | 4.23(a) | 4.50 | 4.78 | 4.91 | 4.78 | 5.60(c) |
Portfolio turnover | 37(n) | 54 | 59 | 40 | 49 | 41 |
Net assets at end of period (000 omitted) | $305,658 | $310,121 | $324,544 | $320,380 | $384,393 | $404,118 |
Service Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $5.61 | $5.65 | $5.22 | $5.70 | $5.72 | $5.37 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.11 | $0.23 | $0.25 | $0.26 | $0.26 | $0.30(c) |
Net realized and unrealized gain (loss) | 0.02 | 0.03(g) | 0.49 | (0.43) | 0.10 | 0.43 |
Total from investment operations | $0.13 | $0.26 | $0.74 | $(0.17) | $0.36 | $0.73 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.30) | $(0.31) | $(0.31) | $(0.38) | $(0.38) |
Net asset value, end of period (x) | $5.74 | $5.61 | $5.65 | $5.22 | $5.70 | $5.72 |
Total return (%) (k)(r)(s)(x) | 2.32(n) | 4.85 | 14.44 | (3.24) | 6.31 | 13.64(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.03(a) | 1.03 | 1.02 | 1.02 | 1.03 | 1.02(c) |
Expenses after expense reductions (f) | 0.97(a) | 0.97 | 0.97 | 0.97 | 0.97 | 0.95(c) |
Net investment income (loss) | 3.98(a) | 4.25 | 4.54 | 4.66 | 4.54 | 5.36(c) |
Portfolio turnover | 37(n) | 54 | 59 | 40 | 49 | 41 |
Net assets at end of period (000 omitted) | $39,893 | $41,171 | $43,696 | $44,995 | $58,499 | $69,189 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(g) | The per share amount varies from the net realized and unrealized gain/loss for the period because of the timing of sales of fund shares and the per share amount of realized and unrealized gains and losses at such time. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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: | ||||
Mexico | $— | $329,672 | $— | $329,672 |
United States | — | 14 | 315,010 | 315,024 |
United Kingdom | 55,005 | — | — | 55,005 |
Municipal Bonds | — | 363,875 | — | 363,875 |
U.S. Corporate Bonds | — | 291,986,468 | — | 291,986,468 |
Asset-Backed Securities (including CDOs) | — | 128 | — | 128 |
Foreign Bonds | — | 39,191,781 | — | 39,191,781 |
Floating Rate Loans | — | 1,830,870 | — | 1,830,870 |
Mutual Funds | 7,184,930 | — | — | 7,184,930 |
Total | $7,239,935 | $333,702,808 | $315,010 | $341,257,753 |
Equity Securities | |
Balance as of 12/31/20 | $315,010 |
Change in unrealized appreciation or depreciation | 0 |
Balance as of 6/30/21 | $315,010 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $18,798,097 |
As of 6/30/21 | |
Cost of investments | $334,040,992 |
Gross appreciation | 10,323,377 |
Gross depreciation | (3,106,616) |
Net unrealized appreciation (depreciation) | $7,216,761 |
As of 12/31/20 | |
Undistributed ordinary income | 16,799,721 |
Capital loss carryforwards | (45,441,992) |
Net unrealized appreciation (depreciation) | 9,947,509 |
Short-Term | $(852,156) |
Long-Term | (44,589,836) |
Total | $(45,441,992) |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $16,642,508 | |
Service Class | — | 2,155,589 | |
Total | $— | $18,798,097 |
Up to $1 billion | 0.70% |
In excess of $1 billion | 0.65% |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 1,162,920 | $6,633,778 | 3,732,526 | $20,503,790 | |
Service Class | 295,083 | 1,665,965 | 890,297 | 4,876,990 | |
1,458,003 | $8,299,743 | 4,622,823 | $25,380,780 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 3,048,078 | $16,642,508 | |
Service Class | — | — | 399,183 | 2,155,589 | |
— | $— | 3,447,261 | $18,798,097 | ||
Shares reacquired | |||||
Initial Class | (3,214,025) | $(18,379,172) | (8,904,252) | $(48,212,643) | |
Service Class | (681,622) | (3,844,238) | (1,679,808) | (9,058,423) | |
(3,895,647) | $(22,223,410) | (10,584,060) | $(57,271,066) | ||
Net change | |||||
Initial Class | (2,051,105) | $(11,745,394) | (2,123,648) | $(11,066,345) | |
Service Class | (386,539) | (2,178,273) | (390,328) | (2,025,844) | |
(2,437,644) | $(13,923,667) | (2,513,976) | $(13,092,189) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $15,433,544 | $50,664,763 | $58,913,378 | $(1,981) | $1,982 | $7,184,930 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $2,763 | $— |
Growth Portfolio
1 | |
2 | |
3 | |
4 | |
6 | |
7 | |
8 | |
9 | |
11 | |
17 | |
18 | |
18 | |
18 | |
18 |
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 4.7% |
Nestle S.A. | 4.5% |
Roche Holding AG | 4.2% |
SAP SE | 3.3% |
LVMH Moet Hennessy Louis Vuitton SE | 3.2% |
Hitachi Ltd. | 3.2% |
AIA Group Ltd. | 3.2% |
Novartis AG | 2.7% |
Schneider Electric SE | 2.6% |
Diageo PLC | 2.6% |
Consumer Staples | 16.3% |
Industrials | 15.6% |
Consumer Discretionary | 14.4% |
Information Technology | 13.4% |
Health Care | 12.3% |
Materials | 10.2% |
Financials | 10.1% |
Communication Services | 3.8% |
Energy | 1.4% |
Utilities | 0.6% |
France | 16.0% |
Switzerland | 12.6% |
United Kingdom | 8.8% |
Germany | 8.1% |
Japan | 7.5% |
Canada | 6.8% |
Taiwan | 6.2% |
China | 5.8% |
India | 5.7% |
Other Countries | 22.5% |
Euro | 30.5% |
Swiss Franc | 12.6% |
British Pound Sterling | 10.1% |
Hong Kong Dollar | 8.5% |
Japanese Yen | 7.5% |
Taiwan Dollar | 6.2% |
Indian Rupee | 5.7% |
United States Dollar | 5.6% |
Canadian Dollar | 4.7% |
Other Currencies | 8.6% |
(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. |
January 1, 2021 through June 30, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/21 | Ending Account Value 6/30/21 | Expenses Paid During Period (p) 1/01/21-6/30/21 | |
Initial Class | Actual | 0.88% | $1,000.00 | $1,075.82 | $4.53 |
Hypothetical (h) | 0.88% | $1,000.00 | $1,020.43 | $4.41 | |
Service Class | Actual | 1.13% | $1,000.00 | $1,074.84 | $5.81 |
Hypothetical (h) | 1.13% | $1,000.00 | $1,019.19 | $5.66 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 98.1% | ||||
Aerospace & Defense – 0.8% | ||||
Rolls-Royce Holdings PLC (a) | 1,146,689 | $ 1,569,084 | ||
Alcoholic Beverages – 4.5% | ||||
Diageo PLC | 109,742 | $ 5,254,009 | ||
Pernod Ricard S.A. | 17,383 | 3,858,547 | ||
$9,112,556 | ||||
Apparel Manufacturers – 5.4% | ||||
Burberry Group PLC | 62,275 | $ 1,779,756 | ||
Kering S.A. | 2,858 | 2,497,600 | ||
LVMH Moet Hennessy Louis Vuitton SE | 8,327 | 6,529,505 | ||
$10,806,861 | ||||
Automotive – 1.1% | ||||
Koito Manufacturing Co. Ltd. | 21,600 | $ 1,343,499 | ||
Mahindra & Mahindra Ltd. | 90,711 | 949,091 | ||
$2,292,590 | ||||
Biotechnology – 0.2% | ||||
Hugel, Inc. (a) | 1,879 | $ 399,777 | ||
Brokerage & Asset Managers – 1.0% | ||||
Deutsche Boerse AG | 6,151 | $ 1,073,611 | ||
London Stock Exchange Group | 9,081 | 1,001,171 | ||
$2,074,782 | ||||
Business Services – 3.1% | ||||
Cap Gemini S.A. | 8,616 | $ 1,655,061 | ||
Experian PLC | 72,088 | 2,778,180 | ||
Infosys Technologies Ltd., ADR | 86,882 | 1,841,030 | ||
$6,274,271 | ||||
Chemicals – 0.7% | ||||
UPL Ltd. | 135,547 | $ 1,445,829 | ||
Computer Software – 4.4% | ||||
Dassault Systemes S.A. | 4,668 | $ 1,131,924 | ||
Kingsoft Corp. | 158,000 | 947,272 | ||
SAP SE | 46,914 | 6,610,865 | ||
Wisetech Global Ltd. | 11,001 | 263,429 | ||
$8,953,490 | ||||
Computer Software - Systems – 4.3% | ||||
Amadeus IT Group S.A. (a) | 19,774 | $ 1,390,878 | ||
Hitachi Ltd. | 113,300 | 6,487,252 | ||
NICE Systems Ltd., ADR (a) | 3,178 | 786,428 | ||
$8,664,558 | ||||
Consumer Products – 5.2% | ||||
Kao Corp. | 23,700 | $ 1,458,117 | ||
KOSE Corp. | 6,800 | 1,069,931 | ||
L'Oréal | 6,619 | 2,949,459 | ||
Reckitt Benckiser Group PLC | 55,753 | 4,933,566 | ||
$10,411,073 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Electrical Equipment – 3.7% | ||||
Prysmian S.p.A. | 59,501 | $ 2,132,827 | ||
Schneider Electric SE | 33,909 | 5,334,744 | ||
$7,467,571 | ||||
Electronics – 6.2% | ||||
Delta Electronics, Inc. | 279,000 | $ 3,034,078 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 78,460 | 9,427,754 | ||
$12,461,832 | ||||
Energy - Independent – 1.4% | ||||
Oil Search Ltd. | 279,476 | $ 798,549 | ||
Reliance Industries Ltd. | 69,985 | 1,987,271 | ||
$2,785,820 | ||||
Food & Beverages – 4.5% | ||||
Nestle S.A. | 72,703 | $ 9,053,596 | ||
Food & Drug Stores – 0.5% | ||||
Sugi Holdings Co. Ltd. | 14,500 | $ 1,057,203 | ||
Gaming & Lodging – 1.3% | ||||
Flutter Entertainment PLC (a) | 14,186 | $ 2,579,508 | ||
General Merchandise – 0.3% | ||||
Walmart de Mexico S.A.B. de C.V. | 188,962 | $ 616,823 | ||
Insurance – 3.2% | ||||
AIA Group Ltd. | 516,800 | $ 6,423,142 | ||
Internet – 6.1% | ||||
Alibaba Group Holding Ltd. (a) | 159,100 | $ 4,508,069 | ||
NAVER Corp. | 8,969 | 3,325,096 | ||
Tencent Holdings Ltd. | 46,400 | 3,490,025 | ||
Z Holdings Corp. | 193,600 | 970,309 | ||
$12,293,499 | ||||
Leisure & Toys – 0.6% | ||||
Prosus N.V. | 12,307 | $ 1,203,487 | ||
Machinery & Tools – 4.4% | ||||
Assa Abloy AB | 72,356 | $ 2,179,616 | ||
GEA Group AG | 47,088 | 1,907,310 | ||
Ingersoll Rand, Inc. (a) | 31,704 | 1,547,472 | ||
Ritchie Bros. Auctioneers, Inc. | 53,972 | 3,199,744 | ||
$8,834,142 | ||||
Major Banks – 1.2% | ||||
DBS Group Holdings Ltd. | 114,200 | $ 2,531,644 | ||
Medical & Health Technology & Services – 0.3% | ||||
Alcon, Inc. | 7,536 | $ 527,622 | ||
Medical Equipment – 4.5% | ||||
EssilorLuxottica | 25,802 | $ 4,761,763 | ||
QIAGEN N.V. (a) | 50,373 | 2,434,586 | ||
Terumo Corp. | 48,800 | 1,977,565 | ||
$9,173,914 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Natural Gas - Distribution – 0.6% | ||||
China Resources Gas Group Ltd. | 200,000 | $ 1,200,366 | ||
Other Banks & Diversified Financials – 4.6% | ||||
AEON Financial Service Co. Ltd. | 64,200 | $ 756,450 | ||
Credicorp Ltd. (a) | 5,553 | 672,524 | ||
Element Fleet Management Corp. | 173,549 | 2,024,458 | ||
Grupo Financiero Banorte S.A. de C.V. | 241,957 | 1,562,876 | ||
HDFC Bank Ltd. | 211,379 | 4,259,715 | ||
$9,276,023 | ||||
Pharmaceuticals – 9.7% | ||||
Bayer AG | 35,879 | $ 2,178,654 | ||
Hypera S.A. | 76,911 | 533,017 | ||
Novartis AG | 59,108 | 5,386,638 | ||
Novo Nordisk A.S., “B” | 34,292 | 2,872,955 | ||
Roche Holding AG | 22,719 | 8,558,452 | ||
$19,529,716 | ||||
Precious Metals & Minerals – 2.1% | ||||
Agnico-Eagle Mines Ltd. | 36,932 | $ 2,233,320 | ||
Franco-Nevada Corp. | 13,688 | 1,986,394 | ||
$4,219,714 | ||||
Railroad & Shipping – 2.1% | ||||
Canadian National Railway Co. | 41,035 | $ 4,330,013 | ||
Restaurants – 0.8% | ||||
Yum China Holdings, Inc. | 15,682 | $ 1,038,933 | ||
Yum China Holdings, Inc. | 8,100 | 528,399 | ||
$1,567,332 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Specialty Chemicals – 7.4% | ||||
Akzo Nobel N.V. | 19,354 | $ 2,391,286 | ||
L'Air Liquide S.A. | 19,658 | 3,441,877 | ||
Linde PLC | 17,351 | 5,006,671 | ||
Sika AG | 5,809 | 1,899,187 | ||
Symrise AG | 15,443 | 2,151,606 | ||
$14,890,627 | ||||
Specialty Stores – 0.6% | ||||
Just Eat Takeaway (a) | 9,953 | $ 919,004 | ||
Ocado Group PLC (a) | 13,626 | 377,542 | ||
$1,296,546 | ||||
Tobacco – 1.3% | ||||
ITC Ltd. | 394,706 | $ 1,076,374 | ||
Swedish Match AB | 174,755 | 1,490,240 | ||
$2,566,614 | ||||
Total Common Stocks (Identified Cost, $114,056,474) | $197,891,625 | |||
Investment Companies (h) – 1.6% | ||||
Money Market Funds – 1.6% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $3,205,910) | 3,205,910 | $ 3,205,910 | ||
Other Assets, Less Liabilities – 0.3% | 545,727 | |||
Net Assets – 100.0% | $201,643,262 |
(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 $3,205,910 and $197,891,625, respectively. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $114,056,474) | $197,891,625 |
Investments in affiliated issuers, at value (identified cost, $3,205,910) | 3,205,910 |
Cash | 77,364 |
Foreign currency, at value (identified cost, $8,158) | 8,117 |
Receivables for | |
Fund shares sold | 183,018 |
Interest and dividends | 1,001,369 |
Receivable from investment adviser | 15,498 |
Other assets | 984 |
Total assets | $202,383,885 |
Liabilities | |
Payables for | |
Investments purchased | $291,627 |
Fund shares reacquired | 155,750 |
Payable to affiliates | |
Administrative services fee | 205 |
Shareholder servicing costs | 70 |
Distribution and/or service fees | 1,061 |
Deferred country tax expense payable | 227,916 |
Accrued expenses and other liabilities | 63,994 |
Total liabilities | $740,623 |
Net assets | $201,643,262 |
Net assets consist of | |
Paid-in capital | $101,664,442 |
Total distributable earnings (loss) | 99,978,820 |
Net assets | $201,643,262 |
Shares of beneficial interest outstanding | 11,704,846 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $124,710,544 | 7,202,708 | $17.31 |
Service Class | 76,932,718 | 4,502,138 | 17.09 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $2,164,501 |
Income on securities loaned | 1,713 |
Dividends from affiliated issuers | 744 |
Other | 31 |
Foreign taxes withheld | (270,735) |
Total investment income | $1,896,254 |
Expenses | |
Management fee | $833,911 |
Distribution and/or service fees | 78,502 |
Shareholder servicing costs | 6,585 |
Administrative services fee | 17,359 |
Independent Trustees' compensation | 2,291 |
Custodian fee | 28,238 |
Shareholder communications | 4,081 |
Audit and tax fees | 31,852 |
Legal fees | 592 |
Miscellaneous | 12,339 |
Total expenses | $1,015,750 |
Reduction of expenses by investment adviser | (121,507) |
Net expenses | $894,243 |
Net investment income (loss) | $1,002,011 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $7,167,408 |
Foreign currency | (15,820) |
Net realized gain (loss) | $7,151,588 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (net of $107,170 increase in deferred country tax) | $5,601,008 |
Translation of assets and liabilities in foreign currencies | (30,435) |
Net unrealized gain (loss) | $5,570,573 |
Net realized and unrealized gain (loss) | $12,722,161 |
Change in net assets from operations | $13,724,172 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/21 (unaudited) | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $1,002,011 | $933,931 |
Net realized gain (loss) | 7,151,588 | 8,441,039 |
Net unrealized gain (loss) | 5,570,573 | 14,193,358 |
Change in net assets from operations | $13,724,172 | $23,568,328 |
Total distributions to shareholders | $— | $(3,926,189) |
Change in net assets from fund share transactions | $15,776,080 | $5,625,171 |
Total change in net assets | $29,500,252 | $25,267,310 |
Net assets | ||
At beginning of period | 172,143,010 | 146,875,700 |
At end of period | $201,643,262 | $172,143,010 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $16.09 | $14.26 | $12.78 | $15.50 | $12.13 | $12.57 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.09 | $0.10 | $0.21 | $0.17 | $0.14 | $0.17(c) |
Net realized and unrealized gain (loss) | 1.13 | 2.12 | 3.07 | (1.38) | 3.77 | 0.19 |
Total from investment operations | $1.22 | $2.22 | $3.28 | $(1.21) | $3.91 | $0.36 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.21) | $(0.18) | $(0.16) | $(0.20) | $(0.15) |
From net realized gain | — | (0.18) | (1.62) | (1.35) | (0.34) | (0.65) |
Total distributions declared to shareholders | $— | $(0.39) | $(1.80) | $(1.51) | $(0.54) | $(0.80) |
Net asset value, end of period (x) | $17.31 | $16.09 | $14.26 | $12.78 | $15.50 | $12.13 |
Total return (%) (k)(r)(s)(x) | 7.58(n) | 15.84 | 27.30 | (9.02) | 32.64 | 2.49(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.01(a) | 1.04 | 1.05 | 1.05 | 1.05 | 0.91(c) |
Expenses after expense reductions (f) | 0.88(a) | 0.88 | 0.88 | 0.97 | 1.05 | 0.91(c) |
Net investment income (loss) | 1.14(a) | 0.72 | 1.49 | 1.16 | 0.96 | 1.33(c) |
Portfolio turnover | 10(n) | 26 | 7 | 18 | 10 | 15 |
Net assets at end of period (000 omitted) | $124,711 | $120,291 | $112,259 | $105,919 | $130,591 | $126,668 |
Service Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $15.90 | $14.11 | $12.65 | $15.37 | $12.03 | $12.48 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.08 | $0.06 | $0.16 | $0.13 | $0.10 | $0.13(c) |
Net realized and unrealized gain (loss) | 1.11 | 2.09 | 3.07 | (1.38) | 3.74 | 0.18 |
Total from investment operations | $1.19 | $2.15 | $3.23 | $(1.25) | $3.84 | $0.31 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.18) | $(0.15) | $(0.12) | $(0.16) | $(0.11) |
From net realized gain | — | (0.18) | (1.62) | (1.35) | (0.34) | (0.65) |
Total distributions declared to shareholders | $— | $(0.36) | $(1.77) | $(1.47) | $(0.50) | $(0.76) |
Net asset value, end of period (x) | $17.09 | $15.90 | $14.11 | $12.65 | $15.37 | $12.03 |
Total return (%) (k)(r)(s)(x) | 7.48(n) | 15.50 | 27.11 | (9.30) | 32.35 | 2.15(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.26(a) | 1.29 | 1.30 | 1.30 | 1.30 | 1.16(c) |
Expenses after expense reductions (f) | 1.13(a) | 1.13 | 1.13 | 1.22 | 1.30 | 1.16(c) |
Net investment income (loss) | 0.97(a) | 0.44 | 1.18 | 0.87 | 0.70 | 1.08(c) |
Portfolio turnover | 10(n) | 26 | 7 | 18 | 10 | 15 |
Net assets at end of period (000 omitted) | $76,933 | $51,852 | $34,616 | $27,233 | $29,544 | $25,277 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 | $197,891,625 | $— | $— | $197,891,625 |
Mutual Funds | 3,205,910 | — | — | 3,205,910 |
Total | $201,097,535 | $— | $— | $201,097,535 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $2,433,126 |
Long-term capital gains | 1,493,063 |
Total distributions | $3,926,189 |
As of 6/30/21 | |
Cost of investments | $118,531,141 |
Gross appreciation | 85,931,724 |
Gross depreciation | (3,365,330) |
Net unrealized appreciation (depreciation) | $82,566,394 |
As of 12/31/20 | |
Undistributed ordinary income | 1,557,099 |
Undistributed long-term capital gain | 7,782,653 |
Other temporary differences | 56,680 |
Net unrealized appreciation (depreciation) | 76,858,216 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $2,927,657 | |
Service Class | — | 998,532 | |
Total | $— | $3,926,189 |
Up to $1 billion | 0.90% |
In excess of $1 billion and up to $2 billion | 0.80% |
In excess of $2 billion | 0.70% |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 459,526 | $7,600,848 | 824,973 | $11,064,566 | |
Service Class | 1,519,837 | 25,070,994 | 1,697,426 | 23,498,214 | |
1,979,363 | $32,671,842 | 2,522,399 | $34,562,780 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 199,296 | $2,927,657 | |
Service Class | — | — | 68,722 | 998,532 | |
— | $— | 268,018 | $3,926,189 | ||
Shares reacquired | |||||
Initial Class | (734,506) | $(12,300,948) | (1,416,593) | $(19,892,313) | |
Service Class | (279,621) | (4,594,814) | (957,919) | (12,971,485) | |
(1,014,127) | $(16,895,762) | (2,374,512) | $(32,863,798) | ||
Net change | |||||
Initial Class | (274,980) | $(4,700,100) | (392,324) | $(5,900,090) | |
Service Class | 1,240,216 | 20,476,180 | 808,229 | 11,525,261 | |
965,236 | $15,776,080 | 415,905 | $5,625,171 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $1,012,087 | $23,248,002 | $21,054,179 | $— | $— | $3,205,910 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $744 | $— |
Value Portfolio
1 | |
2 | |
3 | |
4 | |
7 | |
8 | |
9 | |
10 | |
12 | |
19 | |
20 | |
20 | |
20 | |
20 |
Nestle S.A. | 4.6% |
Cadence Design Systems, Inc. | 4.2% |
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 3.5% |
Givaudan S.A. | 3.4% |
Schneider Electric SE | 3.2% |
L'Oréal | 2.8% |
Pernod Ricard S.A. | 2.7% |
Diageo PLC | 2.3% |
Legrand S.A. | 2.2% |
ANSYS, Inc. | 2.2% |
Consumer Staples | 27.9% |
Information Technology | 25.6% |
Industrials | 20.3% |
Materials | 11.2% |
Consumer Discretionary | 4.2% |
Health Care | 2.8% |
Financials | 2.7% |
Real Estate | 2.4% |
Energy | 0.3% |
Equity Warrants (o) | 0.0% |
Japan | 17.9% |
France | 15.6% |
United States | 14.5% |
Switzerland | 14.3% |
United Kingdom | 12.3% |
Germany | 8.8% |
Canada | 3.5% |
Taiwan | 3.5% |
Denmark | 2.0% |
Other Countries | 7.6% |
Euro | 28.8% |
United States Dollar | 18.6% |
Japanese Yen | 14.5% |
Swiss Franc | 14.3% |
British Pound Sterling | 12.3% |
Canadian Dollar | 3.5% |
Taiwan Dollar | 3.5% |
Danish Krone | 2.0% |
South Korean Won | 1.8% |
Other Currencies | 0.7% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
(o) | Less than 0.1%. |
(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 and Other. |
(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. |
January 1, 2021 through June 30, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/21 | Ending Account Value 6/30/21 | Expenses Paid During Period (p) 1/01/21-6/30/21 | |
Initial Class | Actual | 0.89% | $1,000.00 | $1,048.79 | $4.52 |
Hypothetical (h) | 0.89% | $1,000.00 | $1,020.38 | $4.46 | |
Service Class | Actual | 1.14% | $1,000.00 | $1,047.58 | $5.79 |
Hypothetical (h) | 1.14% | $1,000.00 | $1,019.14 | $5.71 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 95.2% | ||||
Airlines – 0.8% | ||||
Ryanair Holdings PLC, ADR (a) | 116,039 | $ 12,556,580 | ||
Alcoholic Beverages – 6.4% | ||||
Diageo PLC | 770,235 | $ 36,875,780 | ||
Heineken N.V. | 184,905 | 22,407,465 | ||
Pernod Ricard S.A. | 194,848 | 43,250,883 | ||
$102,534,128 | ||||
Apparel Manufacturers – 2.0% | ||||
Adidas AG | 24,589 | $ 9,152,197 | ||
Compagnie Financiere Richemont S.A. | 115,680 | 13,996,624 | ||
LVMH Moet Hennessy Louis Vuitton SE | 12,075 | 9,468,449 | ||
$32,617,270 | ||||
Automotive – 1.0% | ||||
Compagnie Generale des Etablissements Michelin SCA | 50,946 | $ 8,125,041 | ||
Knorr-Bremse AG | 64,021 | 7,363,552 | ||
$15,488,593 | ||||
Biotechnology – 1.6% | ||||
Novozymes A.S. | 345,335 | $ 26,029,875 | ||
Brokerage & Asset Managers – 0.7% | ||||
Euronext N.V. | 99,616 | $ 10,831,575 | ||
Business Services – 6.1% | ||||
Compass Group PLC (a) | 242,470 | $ 5,104,921 | ||
Experian PLC | 501,808 | 19,339,047 | ||
Intertek Group PLC | 197,651 | 15,119,608 | ||
Nomura Research Institute Ltd. | 371,900 | 12,302,376 | ||
Secom Co. Ltd. | 220,600 | 16,767,149 | ||
SGS S.A. | 7,997 | 24,667,320 | ||
Sohgo Security Services Co. Ltd. | 118,300 | 5,388,163 | ||
$98,688,584 | ||||
Chemicals – 3.4% | ||||
Givaudan S.A. | 11,681 | $ 54,324,067 | ||
Computer Software – 9.1% | ||||
ANSYS, Inc. (a) | 101,134 | $ 35,099,566 | ||
Cadence Design Systems, Inc. (a) | 495,828 | 67,839,187 | ||
Dassault Systemes S.A. | 73,051 | 17,713,838 | ||
OBIC Co. Ltd. | 74,600 | 13,906,710 | ||
SAP SE | 77,049 | 10,857,325 | ||
$145,416,626 | ||||
Computer Software - Systems – 3.8% | ||||
Amadeus IT Group S.A. (a) | 214,839 | $ 15,111,495 | ||
Descartes Systems Group, Inc. (a) | 71,465 | 4,942,477 | ||
Samsung Electronics Co. Ltd. | 412,931 | 29,590,669 | ||
Wix.com Ltd. (a) | 36,835 | 10,692,464 | ||
$60,337,105 | ||||
Construction – 0.8% | ||||
Geberit AG | 16,839 | $ 12,630,387 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Consumer Products – 10.2% | ||||
Colgate-Palmolive Co. | 300,211 | $ 24,422,165 | ||
Kao Corp. | 395,900 | 24,357,320 | ||
Kobayashi Pharmaceutical Co. Ltd. | 203,400 | 17,374,913 | ||
KOSE Corp. | 29,300 | 4,610,145 | ||
Lion Corp. (l) | 221,800 | 3,757,393 | ||
L'Oréal | 98,808 | 44,029,329 | ||
Reckitt Benckiser Group PLC | 362,088 | 32,041,058 | ||
ROHTO Pharmaceutical Co. Ltd. | 455,200 | 12,230,722 | ||
$162,823,045 | ||||
Electrical Equipment – 8.2% | ||||
Halma PLC | 463,090 | $ 17,244,747 | ||
Legrand S.A. | 339,572 | 35,940,320 | ||
OMRON Corp. | 138,100 | 10,951,537 | ||
Schneider Electric SE | 330,415 | 51,982,648 | ||
Spectris PLC | 248,304 | 11,121,847 | ||
Yokogawa Electric Corp. | 323,000 | 4,826,320 | ||
$132,067,419 | ||||
Electronics – 7.9% | ||||
Analog Devices, Inc. | 179,394 | $ 30,884,471 | ||
DISCO Corp. | 18,100 | 5,531,257 | ||
Hirose Electric Co. Ltd. | 133,600 | 19,541,834 | ||
Infineon Technologies AG | 66,331 | 2,660,010 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 470,628 | 56,550,661 | ||
Texas Instruments, Inc. | 62,567 | 12,031,634 | ||
$127,199,867 | ||||
Engineering - Construction – 1.3% | ||||
IMI PLC | 888,159 | $ 21,131,754 | ||
Food & Beverages – 9.1% | ||||
Chocoladefabriken Lindt & Sprungli AG | 380 | $ 3,780,492 | ||
Danone S.A. | 200,650 | 14,125,356 | ||
Ezaki Glico Co. Ltd. | 165,700 | 6,174,877 | ||
ITO EN Ltd. | 307,000 | 18,210,810 | ||
Kerry Group PLC | 90,756 | 12,676,922 | ||
Nestle S.A. | 588,608 | 73,298,475 | ||
Nissan Foods Holdings Co. Ltd. | 54,800 | 3,946,172 | ||
Toyo Suisan Kaisha Ltd. | 377,800 | 14,537,963 | ||
$146,751,067 | ||||
Insurance – 0.3% | ||||
Hiscox Ltd. (a) | 427,866 | $ 4,921,966 | ||
Machinery & Tools – 6.1% | ||||
Epiroc AB | 451,053 | $ 10,277,437 | ||
GEA Group AG | 262,630 | 10,637,887 | ||
Nordson Corp. | 45,093 | 9,898,364 | ||
Schindler Holding AG | 60,773 | 18,588,229 | ||
SMC Corp. | 29,300 | 17,314,416 | ||
Spirax-Sarco Engineering PLC | 145,310 | 27,367,147 | ||
Wartsila Oyj Abp | 210,382 | 3,121,998 | ||
$97,205,478 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Major Banks – 0.5% | ||||
UBS Group AG | 524,493 | $ 8,026,826 | ||
Medical Equipment – 4.2% | ||||
Agilent Technologies, Inc. | 28,082 | $ 4,150,800 | ||
Bruker BioSciences Corp. | 34,967 | 2,656,793 | ||
EssilorLuxottica | 75,999 | 14,025,627 | ||
Nihon Kohden Corp. | 388,000 | 11,071,245 | ||
Shimadzu Corp. | 546,900 | 21,143,485 | ||
Terumo Corp. | 355,000 | 14,385,976 | ||
$67,433,926 | ||||
Oil Services – 0.2% | ||||
Core Laboratories N.V. | 102,277 | $ 3,983,689 | ||
Other Banks & Diversified Financials – 1.3% | ||||
Chiba Bank Ltd. | 557,800 | $ 3,359,001 | ||
Hachijuni Bank Ltd. | 547,200 | 1,763,334 | ||
Julius Baer Group Ltd. | 80,056 | 5,224,298 | ||
Jyske Bank A.S. (a) | 69,480 | 3,361,408 | ||
Mebuki Financial Group, Inc. | 921,800 | 1,941,592 | ||
North Pacific Bank Ltd. | 820,300 | 1,742,570 | ||
Sydbank A.S. | 92,134 | 2,836,926 | ||
$20,229,129 | ||||
Pharmaceuticals – 0.8% | ||||
Santen Pharmaceutical Co. Ltd. | 894,900 | $ 12,324,560 | ||
Precious Metals & Minerals – 3.2% | ||||
Agnico-Eagle Mines Ltd. | 174,582 | $ 10,557,169 | ||
Franco-Nevada Corp. | 231,434 | 33,585,562 | ||
Wheaton Precious Metals Corp. | 172,948 | 7,623,329 | ||
$51,766,060 | ||||
Printing & Publishing – 0.3% | ||||
Wolters Kluwer N.V. | 54,531 | $ 5,478,007 | ||
Real Estate – 2.4% | ||||
Deutsche Wohnen SE | 143,839 | $ 8,797,336 | ||
LEG Immobilien SE | 68,343 | 9,842,031 | ||
TAG Immobilien AG | 261,539 | 8,298,809 | ||
Vonovia SE, REIT | 173,048 | 11,187,051 | ||
$38,125,227 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Specialty Chemicals – 3.0% | ||||
Croda International PLC | 66,483 | $ 6,776,050 | ||
Kansai Paint Co. Ltd. | 262,600 | 6,691,756 | ||
Sika AG | 43,766 | 14,308,798 | ||
Symrise AG | 141,105 | 19,659,544 | ||
$47,436,148 | ||||
Specialty Stores – 0.5% | ||||
Zalando SE (a) | 61,670 | $ 7,455,115 | ||
Total Common Stocks (Identified Cost, $914,307,390) | $1,525,814,073 | |||
Preferred Stocks – 2.2% | ||||
Consumer Products – 2.2% | ||||
Henkel AG & Co. KGaA (Identified Cost, $39,191,285) | 330,746 | $ 34,919,895 |
Strike Price | First Exercise | |||
Warrants – 0.0% | ||||
Apparel Manufacturers – 0.0% | ||||
Compagnie Financiere Richemont S.A. (1 share for 2 warrants, Expiration 12/04/23) (a) (Identified Cost, $0) | CHF 67.00 | 11/20/23 | 224,332 | $ 150,322 |
Investment Companies (h) – 2.4% | ||||
Money Market Funds – 2.4% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $37,643,583) | 37,647,306 | $ 37,647,306 | ||
Other Assets, Less Liabilities – 0.2% | 3,779,572 | |||
Net Assets – 100.0% | $1,602,311,168 |
(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 $37,647,306 and $1,560,884,290, respectively. | |||
(l) | A portion of this security is on loan. See Note 2 for additional information. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
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: | |
CHF | Swiss Franc |
JPY | Japanese Yen |
Derivative Contracts at 6/30/21 | ||||||
Forward Foreign Currency Exchange Contracts | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives | ||||||
USD | 56,761,647 | JPY | 5,998,656,000 | HSBC Bank | 8/19/2021 | $2,744,688 |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value, including $777,388 of securities on loan (identified cost, $953,498,675) | $1,560,884,290 |
Investments in affiliated issuers, at value (identified cost, $37,643,583) | 37,647,306 |
Cash | 919,927 |
Foreign currency, at value (identified cost, $416,800) | 416,581 |
Receivables for | |
Forward foreign currency exchange contracts | 2,744,688 |
Investments sold | 602,925 |
Fund shares sold | 820,059 |
Interest and dividends | 3,886,405 |
Other assets | 5,395 |
Total assets | $1,607,927,576 |
Liabilities | |
Payables for | |
Investments purchased | $3,594,788 |
Fund shares reacquired | 1,771,537 |
Payable to affiliates | |
Investment adviser | 75,291 |
Administrative services fee | 1,214 |
Shareholder servicing costs | 237 |
Distribution and/or service fees | 17,486 |
Accrued expenses and other liabilities | 155,855 |
Total liabilities | $5,616,408 |
Net assets | $1,602,311,168 |
Net assets consist of | |
Paid-in capital | $912,767,400 |
Total distributable earnings (loss) | 689,543,768 |
Net assets | $1,602,311,168 |
Shares of beneficial interest outstanding | 44,211,957 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $338,614,881 | 9,211,483 | $36.76 |
Service Class | 1,263,696,287 | 35,000,474 | 36.11 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $17,045,964 |
Dividends from affiliated issuers | 10,217 |
Income on securities loaned | 4,798 |
Other | 172 |
Foreign taxes withheld | (1,798,689) |
Total investment income | $15,262,462 |
Expenses | |
Management fee | $6,582,075 |
Distribution and/or service fees | 1,491,784 |
Shareholder servicing costs | 22,209 |
Administrative services fee | 102,888 |
Independent Trustees' compensation | 10,784 |
Custodian fee | 81,440 |
Shareholder communications | 23,896 |
Audit and tax fees | 29,852 |
Legal fees | 5,137 |
Miscellaneous | 19,832 |
Total expenses | $8,369,897 |
Reduction of expenses by investment adviser | (91,176) |
Net expenses | $8,278,721 |
Net investment income (loss) | $6,983,741 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $33,633,331 |
Affiliated issuers | 1 |
Forward foreign currency exchange contracts | 243,222 |
Foreign currency | 131,741 |
Net realized gain (loss) | $34,008,295 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $29,452,179 |
Affiliated issuers | (1) |
Forward foreign currency exchange contracts | 3,972,368 |
Translation of assets and liabilities in foreign currencies | (303,171) |
Net unrealized gain (loss) | $33,121,375 |
Net realized and unrealized gain (loss) | $67,129,670 |
Change in net assets from operations | $74,113,411 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/21 (unaudited) | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $6,983,741 | $5,201,242 |
Net realized gain (loss) | 34,008,295 | 42,607,038 |
Net unrealized gain (loss) | 33,121,375 | 206,247,474 |
Change in net assets from operations | $74,113,411 | $254,055,754 |
Total distributions to shareholders | $— | $(38,136,630) |
Change in net assets from fund share transactions | $22,811,008 | $(66,701,792) |
Total change in net assets | $96,924,419 | $149,217,332 |
Net assets | ||
At beginning of period | 1,505,386,749 | 1,356,169,417 |
At end of period | $1,602,311,168 | $1,505,386,749 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $35.05 | $29.94 | $25.02 | $28.25 | $22.57 | $22.46 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.19 | $0.18 | $0.28 | $0.30 | $0.29 | $0.32(c) |
Net realized and unrealized gain (loss) | 1.52 | 5.87 | 6.06 | (2.91) | 5.80 | 0.64 |
Total from investment operations | $1.71 | $6.05 | $6.34 | $(2.61) | $6.09 | $0.96 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.31) | $(0.54) | $(0.31) | $(0.39) | $(0.32) |
From net realized gain | — | (0.63) | (0.88) | (0.31) | (0.02) | (0.53) |
Total distributions declared to shareholders | $— | $(0.94) | $(1.42) | $(0.62) | $(0.41) | $(0.85) |
Net asset value, end of period (x) | $36.76 | $35.05 | $29.94 | $25.02 | $28.25 | $22.57 |
Total return (%) (k)(r)(s)(x) | 4.88(n) | 20.52 | 25.94 | (9.49) | 27.14 | 4.05(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.90(a) | 0.92 | 0.92 | 0.91 | 0.91 | 0.91(c) |
Expenses after expense reductions (f) | 0.89(a) | 0.90 | 0.90 | 0.90 | 0.90 | 0.89(c) |
Net investment income (loss) | 1.10(a) | 0.59 | 0.99 | 1.08 | 1.13 | 1.41(c) |
Portfolio turnover | 6(n) | 10 | 13 | 16 | 10 | 17 |
Net assets at end of period (000 omitted) | $338,615 | $328,247 | $308,053 | $282,244 | $317,415 | $238,192 |
Service Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $34.47 | $29.47 | $24.60 | $27.80 | $22.23 | $22.13 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.15 | $0.10 | $0.20 | $0.27 | $0.23 | $0.26(c) |
Net realized and unrealized gain (loss) | 1.49 | 5.77 | 5.97 | (2.91) | 5.70 | 0.63 |
Total from investment operations | $1.64 | $5.87 | $6.17 | $(2.64) | $5.93 | $0.89 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.24) | $(0.42) | $(0.25) | $(0.34) | $(0.26) |
From net realized gain | — | (0.63) | (0.88) | (0.31) | (0.02) | (0.53) |
Total distributions declared to shareholders | $— | $(0.87) | $(1.30) | $(0.56) | $(0.36) | $(0.79) |
Net asset value, end of period (x) | $36.11 | $34.47 | $29.47 | $24.60 | $27.80 | $22.23 |
Total return (%) (k)(r)(s)(x) | 4.76(n) | 20.21 | 25.65 | (9.72) | 26.82 | 3.84(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.15(a) | 1.17 | 1.17 | 1.15 | 1.16 | 1.16(c) |
Expenses after expense reductions (f) | 1.14(a) | 1.15 | 1.15 | 1.14 | 1.15 | 1.14(c) |
Net investment income (loss) | 0.87(a) | 0.34 | 0.72 | 0.97 | 0.89 | 1.17(c) |
Portfolio turnover | 6(n) | 10 | 13 | 16 | 10 | 17 |
Net assets at end of period (000 omitted) | $1,263,696 | $1,177,140 | $1,048,117 | $858,278 | $1,728,247 | $1,273,735 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities | $1,560,884,290 | $— | $— | $1,560,884,290 |
Mutual Funds | 37,647,306 | — | — | 37,647,306 |
Total | $1,598,531,596 | $— | $— | $1,598,531,596 |
Other Financial Instruments | ||||
Forward Foreign Currency Exchange Contracts – Assets | $— | $2,744,688 | $— | $2,744,688 |
Fair Value | |||
Risk | Derivative Contracts | Asset Derivatives | |
Foreign Exchange | Forward Foreign Currency Exchange Contracts | $2,744,688 |
Risk | Forward Foreign Currency Exchange Contracts |
Foreign Exchange | $243,222 |
Risk | Forward Foreign Currency Exchange Contracts |
Foreign Exchange | $3,972,368 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $12,548,204 |
Long-term capital gains | 25,588,426 |
Total distributions | $38,136,630 |
As of 6/30/21 | |
Cost of investments | $999,714,455 |
Gross appreciation | 617,048,786 |
Gross depreciation | (18,231,645) |
Net unrealized appreciation (depreciation) | $598,817,141 |
As of 12/31/20 | |
Undistributed ordinary income | 3,610,364 |
Undistributed long-term capital gain | 42,184,350 |
Other temporary differences | 270,681 |
Net unrealized appreciation (depreciation) | 569,364,962 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $8,702,058 | |
Service Class | — | 29,434,572 | |
Total | $— | $38,136,630 |
Up to $1 billion | 0.90% |
In excess of $1 billion and up to $2 billion | 0.80% |
In excess of $2 billion | 0.70% |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 884,257 | $30,974,633 | 1,545,411 | $46,930,881 | |
Service Class | 2,949,632 | 101,573,912 | 4,685,053 | 136,442,604 | |
3,833,889 | $132,548,545 | 6,230,464 | $183,373,485 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 262,777 | $8,408,861 | |
Service Class | — | — | 934,431 | 29,434,572 | |
— | $— | 1,197,208 | $37,843,433 | ||
Shares reacquired | |||||
Initial Class | (1,037,451) | $(36,518,032) | (2,732,208) | $(81,847,531) | |
Service Class | (2,099,109) | (73,219,505) | (7,040,629) | (206,071,179) | |
(3,136,560) | $(109,737,537) | (9,772,837) | $(287,918,710) |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Net change | |||||
Initial Class | (153,194) | $(5,543,399) | (924,020) | $(26,507,789) | |
Service Class | 850,523 | 28,354,407 | (1,421,145) | (40,194,003) | |
697,329 | $22,811,008 | (2,345,165) | $(66,701,792) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $42,517,675 | $80,037,983 | $84,908,352 | $1 | $(1) | $37,647,306 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $10,217 | $— |
Growth Stock Portfolio
1 | |
2 | |
3 | |
4 | |
6 | |
7 | |
8 | |
9 | |
11 | |
17 | |
18 | |
18 | |
18 | |
18 |
Microsoft Corp. | 10.8% |
Alphabet, Inc., “A” | 8.4% |
Apple, Inc. | 4.6% |
Accenture PLC, “A” | 3.8% |
Visa, Inc., “A” | 3.0% |
Aon PLC | 2.6% |
Colgate-Palmolive Co. | 2.5% |
Boston Scientific Corp. | 2.4% |
Fiserv, Inc. | 2.3% |
Electronic Arts, Inc. | 2.1% |
Information Technology | 34.4% |
Health Care | 15.7% |
Communication Services | 12.7% |
Consumer Discretionary | 11.8% |
Financials | 8.0% |
Consumer Staples | 7.0% |
Industrials | 6.1% |
Real Estate | 2.0% |
Materials | 1.4% |
Utilities | 0.6% |
(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. |
January 1, 2021 through June 30, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/21 | Ending Account Value 6/30/21 | Expenses Paid During Period (p) 1/01/21-6/30/21 | |
Initial Class | Actual | 0.77% | $1,000.00 | $1,124.10 | $4.06 |
Hypothetical (h) | 0.77% | $1,000.00 | $1,020.98 | $3.86 | |
Service Class | Actual | 1.02% | $1,000.00 | $1,122.82 | $5.37 |
Hypothetical (h) | 1.02% | $1,000.00 | $1,019.74 | $5.11 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.7% | ||||
Apparel Manufacturers – 4.6% | ||||
Adidas AG | 42,742 | $ 15,908,870 | ||
LVMH Moet Hennessy Louis Vuitton SE | 16,966 | 13,303,661 | ||
NIKE, Inc., “B” | 146,872 | 22,690,255 | ||
$51,902,786 | ||||
Brokerage & Asset Managers – 2.9% | ||||
Blackstone Group, Inc. | 91,083 | $ 8,847,803 | ||
Charles Schwab Corp. | 320,893 | 23,364,219 | ||
$32,212,022 | ||||
Business Services – 10.5% | ||||
Accenture PLC, “A” | 144,977 | $ 42,737,770 | ||
Cognizant Technology Solutions Corp., “A” | 109,054 | 7,553,080 | ||
Equifax, Inc. | 66,948 | 16,034,716 | ||
Fidelity National Information Services, Inc. | 114,541 | 16,227,023 | ||
Fiserv, Inc. (a) | 239,907 | 25,643,659 | ||
Verisk Analytics, Inc., “A” | 60,456 | 10,562,872 | ||
$118,759,120 | ||||
Cable TV – 1.2% | ||||
Charter Communications, Inc., “A” (a) | 19,025 | $ 13,725,586 | ||
Computer Software – 10.8% | ||||
Microsoft Corp. | 450,341 | $ 121,997,377 | ||
Computer Software - Systems – 4.6% | ||||
Apple, Inc. | 377,543 | $ 51,708,289 | ||
Construction – 2.6% | ||||
Otis Worldwide Corp. | 168,224 | $ 13,755,677 | ||
Sherwin-Williams Co. | 57,283 | 15,606,753 | ||
$29,362,430 | ||||
Consumer Products – 5.3% | ||||
Church & Dwight Co., Inc. | 176,610 | $ 15,050,704 | ||
Colgate-Palmolive Co. | 351,512 | 28,595,501 | ||
Estee Lauder Cos., Inc., “A” | 50,979 | 16,215,401 | ||
$59,861,606 | ||||
Electrical Equipment – 4.7% | ||||
Amphenol Corp., “A” | 338,672 | $ 23,168,552 | ||
Fortive Corp. | 190,706 | 13,299,836 | ||
TE Connectivity Ltd. | 122,316 | 16,538,346 | ||
$53,006,734 | ||||
Electronics – 3.1% | ||||
Analog Devices, Inc. | 74,911 | $ 12,896,678 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 75,037 | 9,016,446 | ||
Texas Instruments, Inc. | 68,377 | 13,148,897 | ||
$35,062,021 | ||||
Food & Beverages – 1.7% | ||||
PepsiCo, Inc. | 129,208 | $ 19,144,749 | ||
General Merchandise – 1.8% | ||||
Dollarama, Inc. | 435,380 | $ 19,928,575 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Health Maintenance Organizations – 0.9% | ||||
Cigna Corp. | 44,166 | $ 10,470,434 | ||
Insurance – 4.1% | ||||
Aon PLC | 121,215 | $ 28,941,294 | ||
Marsh & McLennan Cos., Inc. | 121,546 | 17,099,091 | ||
$46,040,385 | ||||
Internet – 11.4% | ||||
Alibaba Group Holding Ltd. (a) | 805,772 | $ 22,831,400 | ||
Alphabet, Inc., “A” (a) | 38,907 | 95,002,724 | ||
Tencent Holdings Ltd. | 141,300 | 10,628,028 | ||
$128,462,152 | ||||
Leisure & Toys – 2.1% | ||||
Electronic Arts, Inc. | 164,180 | $ 23,614,009 | ||
Medical & Health Technology & Services – 1.5% | ||||
ICON PLC (a) | 35,776 | $ 7,395,257 | ||
PRA Health Sciences, Inc. (a) | 57,814 | 9,551,451 | ||
$16,946,708 | ||||
Medical Equipment – 12.9% | ||||
Abbott Laboratories | 93,086 | $ 10,791,460 | ||
Agilent Technologies, Inc. | 92,299 | 13,642,715 | ||
Becton, Dickinson and Co. | 77,821 | 18,925,289 | ||
Boston Scientific Corp. (a) | 638,731 | 27,312,138 | ||
Danaher Corp. | 63,554 | 17,055,351 | ||
Medtronic PLC | 87,004 | 10,799,807 | ||
STERIS PLC | 59,606 | 12,296,718 | ||
Stryker Corp. | 81,060 | 21,053,714 | ||
Thermo Fisher Scientific, Inc. | 27,354 | 13,799,272 | ||
$145,676,464 | ||||
Other Banks & Diversified Financials – 5.3% | ||||
Mastercard, Inc., “A” | 36,255 | $ 13,236,338 | ||
Moody's Corp. | 34,281 | 12,422,406 | ||
Visa, Inc., “A” | 144,667 | 33,826,038 | ||
$59,484,782 | ||||
Pharmaceuticals – 0.4% | ||||
Roche Holding AG | 11,168 | $ 4,207,086 | ||
Railroad & Shipping – 1.3% | ||||
Union Pacific Corp. | 67,248 | $ 14,789,853 | ||
Restaurants – 1.3% | ||||
Starbucks Corp. | 133,693 | $ 14,948,214 | ||
Specialty Stores – 2.1% | ||||
Ross Stores, Inc. | 98,791 | $ 12,250,084 | ||
TJX Cos., Inc. | 169,454 | 11,424,589 | ||
$23,674,673 | ||||
Telecommunications - Wireless – 2.0% | ||||
American Tower Corp., REIT | 85,489 | $ 23,093,998 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Utilities - Electric Power – 0.6% | ||||
Xcel Energy, Inc. | 107,521 | $ 7,083,483 | ||
Total Common Stocks (Identified Cost, $520,082,950) | $1,125,163,536 | |||
Investment Companies (h) – 0.4% | ||||
Money Market Funds – 0.4% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $3,861,009) | 3,861,009 | $ 3,861,009 | ||
Other Assets, Less Liabilities – (0.1)% | (634,176) | |||
Net Assets – 100.0% | $1,128,390,369 |
(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 $3,861,009 and $1,125,163,536, 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 |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $520,082,950) | $1,125,163,536 |
Investments in affiliated issuers, at value (identified cost, $3,861,009) | 3,861,009 |
Receivables for | |
Fund shares sold | 481,814 |
Dividends | 568,904 |
Other assets | 3,870 |
Total assets | $1,130,079,133 |
Liabilities | |
Payables for | |
Fund shares reacquired | $1,512,731 |
Payable to affiliates | |
Investment adviser | 44,965 |
Administrative services fee | 866 |
Shareholder servicing costs | 192 |
Distribution and/or service fees | 6,192 |
Accrued expenses and other liabilities | 123,818 |
Total liabilities | $1,688,764 |
Net assets | $1,128,390,369 |
Net assets consist of | |
Paid-in capital | $314,963,454 |
Total distributable earnings (loss) | 813,426,915 |
Net assets | $1,128,390,369 |
Shares of beneficial interest outstanding | 40,332,419 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $677,640,084 | 24,059,091 | $28.17 |
Service Class | 450,750,285 | 16,273,328 | 27.70 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $5,561,369 |
Other | 15,279 |
Dividends from affiliated issuers | 1,675 |
Foreign taxes withheld | (75,930) |
Total investment income | $5,502,393 |
Expenses | |
Management fee | $4,008,468 |
Distribution and/or service fees | 539,309 |
Shareholder servicing costs | 18,301 |
Administrative services fee | 74,625 |
Independent Trustees' compensation | 8,009 |
Custodian fee | 27,125 |
Shareholder communications | 27,759 |
Audit and tax fees | 29,223 |
Legal fees | 3,720 |
Miscellaneous | 16,657 |
Total expenses | $4,753,196 |
Reduction of expenses by investment adviser | (64,683) |
Net expenses | $4,688,513 |
Net investment income (loss) | $813,880 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $60,778,313 |
Foreign currency | 10,439 |
Net realized gain (loss) | $60,788,752 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $65,808,036 |
Affiliated issuers | (1) |
Translation of assets and liabilities in foreign currencies | (5,425) |
Net unrealized gain (loss) | $65,802,610 |
Net realized and unrealized gain (loss) | $126,591,362 |
Change in net assets from operations | $127,405,242 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/21 (unaudited) | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $813,880 | $1,639,300 |
Net realized gain (loss) | 60,788,752 | 146,310,591 |
Net unrealized gain (loss) | 65,802,610 | 52,925,899 |
Change in net assets from operations | $127,405,242 | $200,875,790 |
Total distributions to shareholders | $— | $(96,440,810) |
Change in net assets from fund share transactions | $(68,570,648) | $(40,476,255) |
Total change in net assets | $58,834,594 | $63,958,725 |
Net assets | ||
At beginning of period | 1,069,555,775 | 1,005,597,050 |
At end of period | $1,128,390,369 | $1,069,555,775 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $25.06 | $22.58 | $17.60 | $18.60 | $15.38 | $16.38 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.03 | $0.06 | $0.11 | $0.13 | $0.11 | $0.11(c) |
Net realized and unrealized gain (loss) | 3.08 | 4.80 | 6.71 | 0.16 | 4.16 | 0.95 |
Total from investment operations | $3.11 | $4.86 | $6.82 | $0.29 | $4.27 | $1.06 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.11) | $(0.13) | $(0.12) | $(0.12) | $(0.10) |
From net realized gain | — | (2.27) | (1.71) | (1.17) | (0.93) | (1.96) |
Total distributions declared to shareholders | $— | $(2.38) | $(1.84) | $(1.29) | $(1.05) | $(2.06) |
Net asset value, end of period (x) | $28.17 | $25.06 | $22.58 | $17.60 | $18.60 | $15.38 |
Total return (%) (k)(r)(s)(x) | 12.41(n) | 22.53 | 39.95 | 0.81 | 28.42 | 6.08(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.78(a) | 0.79 | 0.79 | 0.80 | 0.81 | 0.78(c) |
Expenses after expense reductions (f) | 0.77(a) | 0.78 | 0.78 | 0.79 | 0.80 | 0.77(c) |
Net investment income (loss) | 0.25(a) | 0.27 | 0.51 | 0.65 | 0.66 | 0.70(c) |
Portfolio turnover | 9(n) | 33 | 22 | 23 | 21 | 24 |
Net assets at end of period (000 omitted) | $677,640 | $641,267 | $603,369 | $493,783 | $562,471 | $500,924 |
Service Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $24.67 | $22.27 | $17.38 | $18.38 | $15.21 | $16.22 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.00(w) | $0.00(w) | $0.05 | $0.08 | $0.07 | $0.07(c) |
Net realized and unrealized gain (loss) | 3.03 | 4.72 | 6.62 | 0.16 | 4.10 | 0.94 |
Total from investment operations | $3.03 | $4.72 | $6.67 | $0.24 | $4.17 | $1.01 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.05) | $(0.07) | $(0.07) | $(0.07) | $(0.06) |
From net realized gain | — | (2.27) | (1.71) | (1.17) | (0.93) | (1.96) |
Total distributions declared to shareholders | $— | $(2.32) | $(1.78) | $(1.24) | $(1.00) | $(2.02) |
Net asset value, end of period (x) | $27.70 | $24.67 | $22.27 | $17.38 | $18.38 | $15.21 |
Total return (%) (k)(r)(s)(x) | 12.28(n) | 22.20 | 39.58 | 0.58 | 28.10 | 5.84(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.03(a) | 1.04 | 1.04 | 1.05 | 1.06 | 1.03(c) |
Expenses after expense reductions (f) | 1.02(a) | 1.03 | 1.03 | 1.04 | 1.05 | 1.02(c) |
Net investment income (loss) | 0.00(a) | 0.02 | 0.26 | 0.40 | 0.41 | 0.45(c) |
Portfolio turnover | 9(n) | 33 | 22 | 23 | 21 | 24 |
Net assets at end of period (000 omitted) | $450,750 | $428,289 | $402,228 | $319,950 | $369,950 | $328,673 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 | $1,125,163,536 | $— | $— | $1,125,163,536 |
Mutual Funds | 3,861,009 | — | — | 3,861,009 |
Total | $1,129,024,545 | $— | $— | $1,129,024,545 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $9,714,474 |
Long-term capital gains | 86,726,336 |
Total distributions | $96,440,810 |
As of 6/30/21 | |
Cost of investments | $524,153,209 |
Gross appreciation | 606,240,789 |
Gross depreciation | (1,369,453) |
Net unrealized appreciation (depreciation) | $604,871,336 |
As of 12/31/20 | |
Undistributed ordinary income | 6,111,511 |
Undistributed long-term capital gain | 142,415,273 |
Other temporary differences | 11,442 |
Net unrealized appreciation (depreciation) | 537,483,447 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $58,026,955 | |
Service Class | — | 38,413,855 | |
Total | $— | $96,440,810 |
Up to $1 billion | 0.75% |
In excess of $1 billion | 0.65% |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 137,383 | $3,673,721 | 536,906 | $11,499,519 | |
Service Class | 341,767 | 8,847,461 | 1,322,375 | 28,371,478 | |
479,150 | $12,521,182 | 1,859,281 | $39,870,997 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 2,538,362 | $58,026,955 | |
Service Class | — | — | 1,705,766 | 38,413,855 | |
— | $— | 4,244,128 | $96,440,810 | ||
Shares reacquired | |||||
Initial Class | (1,672,176) | $(44,165,786) | (4,205,948) | $(94,166,872) | |
Service Class | (1,428,672) | (36,926,044) | (3,730,825) | (82,621,190) | |
(3,100,848) | $(81,091,830) | (7,936,773) | $(176,788,062) | ||
Net change | |||||
Initial Class | (1,534,793) | $(40,492,065) | (1,130,680) | $(24,640,398) | |
Service Class | (1,086,905) | (28,078,583) | (702,684) | (15,835,857) | |
(2,621,698) | $(68,570,648) | (1,833,364) | $(40,476,255) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $8,618,176 | $78,577,642 | $83,334,808 | $— | $(1) | $3,861,009 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,675 | $— |
International Portfolio
1 | |
2 | |
3 | |
4 | |
7 | |
8 | |
9 | |
10 | |
12 | |
18 | |
19 | |
19 | |
19 | |
19 |
Roche Holding AG | 3.1% |
Nestle S.A. | 3.0% |
Novo Nordisk A.S., “B” | 2.5% |
Schneider Electric SE | 2.5% |
LVMH Moet Hennessy Louis Vuitton SE | 2.4% |
Linde PLC | 2.4% |
AIA Group Ltd. | 1.8% |
Hitachi Ltd. | 1.8% |
Diageo PLC | 1.8% |
Aon PLC | 1.7% |
Capital Goods | 24.2% |
Financial Services | 20.1% |
Technology | 13.7% |
Health Care | 11.9% |
Consumer Cyclicals | 10.8% |
Consumer Staples | 9.1% |
Energy | 6.1% |
Telecommunications/Cable Television | 3.3% |
Japan | 20.1% |
Switzerland | 12.8% |
France | 10.3% |
Germany | 9.2% |
United States | 8.1% |
United Kingdom | 7.9% |
Hong Kong | 4.9% |
Netherlands | 4.8% |
China | 3.9% |
Other Countries | 18.0% |
Euro | 31.7% |
Japanese Yen | 20.1% |
Swiss Franc | 12.8% |
British Pound Sterling | 8.5% |
Hong Kong Dollar | 7.8% |
United States Dollar | 6.3% |
Danish Krone | 3.0% |
Australian Dollar | 2.7% |
Canadian Dollar | 2.0% |
Other Currencies | 5.1% |
(k) | The sectors set forth above and the associated portfolio composition are based on MFS’ own custom sector classification methodology. |
(o) | Less than 0.1%. |
(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 and Other. |
(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. |
January 1, 2021 through June 30, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/21 | Ending Account Value 6/30/21 | Expenses Paid During Period (p) 1/01/21-6/30/21 | |
Initial Class | Actual | 0.95% | $1,000.00 | $1,075.52 | $4.89 |
Hypothetical (h) | 0.95% | $1,000.00 | $1,020.08 | $4.76 | |
Service Class | Actual | 1.21% | $1,000.00 | $1,074.30 | $6.22 |
Hypothetical (h) | 1.21% | $1,000.00 | $1,018.79 | $6.06 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.2% | ||||
Aerospace & Defense – 0.5% | ||||
MTU Aero Engines Holding AG | 9,969 | $ 2,469,353 | ||
Airlines – 0.5% | ||||
Ryanair Holdings PLC, ADR (a) | 22,101 | $ 2,391,549 | ||
Alcoholic Beverages – 1.8% | ||||
Diageo PLC | 190,874 | $ 9,138,286 | ||
Apparel Manufacturers – 4.9% | ||||
Adidas AG | 18,549 | $ 6,904,067 | ||
Burberry Group PLC | 60,556 | 1,730,629 | ||
Compagnie Financiere Richemont S.A. | 34,131 | 4,129,657 | ||
LVMH Moet Hennessy Louis Vuitton SE | 15,841 | 12,421,507 | ||
$25,185,860 | ||||
Automotive – 2.8% | ||||
Bridgestone Corp. (l) | 66,800 | $ 3,039,507 | ||
Continental AG | 23,592 | 3,468,244 | ||
Koito Manufacturing Co. Ltd. | 67,000 | 4,167,334 | ||
Toyota Industries Corp. | 41,000 | 3,546,604 | ||
$14,221,689 | ||||
Brokerage & Asset Managers – 2.1% | ||||
Euronext N.V. | 60,300 | $ 6,556,617 | ||
Hong Kong Exchanges & Clearing Ltd. | 68,400 | 4,077,061 | ||
$10,633,678 | ||||
Business Services – 0.7% | ||||
Nomura Research Institute Ltd. | 116,900 | $ 3,867,028 | ||
Computer Software – 0.5% | ||||
Cadence Design Systems, Inc. (a) | 20,224 | $ 2,767,048 | ||
Computer Software - Systems – 6.2% | ||||
Amadeus IT Group S.A. (a) | 59,412 | $ 4,178,963 | ||
Constellation Software, Inc. | 2,205 | 3,339,536 | ||
EPAM Systems, Inc. (a) | 9,430 | 4,818,353 | ||
Fujitsu Ltd. | 34,300 | 6,421,891 | ||
Hitachi Ltd. | 163,200 | 9,344,392 | ||
Samsung Electronics Co. Ltd. | 52,786 | 3,782,649 | ||
$31,885,784 | ||||
Construction – 1.3% | ||||
Techtronic Industries Co. Ltd. | 376,000 | $ 6,566,671 | ||
Consumer Products – 1.6% | ||||
Kao Corp. | 61,600 | $ 3,789,874 | ||
Reckitt Benckiser Group PLC | 53,370 | 4,722,695 | ||
$8,512,569 | ||||
Consumer Services – 1.1% | ||||
51job, Inc., ADR (a) | 22,936 | $ 1,783,733 | ||
Carsales.com Ltd. | 84,697 | 1,255,126 | ||
Persol Holdings Co. Ltd. | 73,800 | 1,458,130 | ||
SEEK Ltd. | 50,557 | 1,256,511 | ||
$5,753,500 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Containers – 0.8% | ||||
Brambles Ltd. | 453,313 | $ 3,889,167 | ||
Electrical Equipment – 3.7% | ||||
Legrand S.A. | 58,423 | $ 6,183,493 | ||
Schneider Electric SE | 82,553 | 12,987,678 | ||
$19,171,171 | ||||
Electronics – 2.4% | ||||
Kyocera Corp. | 50,400 | $ 3,115,776 | ||
NXP Semiconductors N.V. | 23,255 | 4,784,019 | ||
Taiwan Semiconductor Manufacturing Co. Ltd. | 201,804 | 4,309,498 | ||
$12,209,293 | ||||
Energy - Independent – 0.4% | ||||
Oil Search Ltd. | 717,628 | $ 2,050,486 | ||
Energy - Integrated – 1.9% | ||||
Cairn Energy PLC | 720,580 | $ 1,452,306 | ||
Eni S.p.A. | 212,094 | 2,582,807 | ||
Galp Energia SGPS S.A., “B” | 309,815 | 3,362,108 | ||
Idemitsu Kosan Co. Ltd. | 105,500 | 2,547,878 | ||
$9,945,099 | ||||
Food & Beverages – 4.0% | ||||
Danone S.A. | 69,538 | $ 4,895,335 | ||
Nestle S.A. | 125,098 | 15,578,267 | ||
$20,473,602 | ||||
Food & Drug Stores – 0.3% | ||||
Sugi Holdings Co. Ltd. | 24,900 | $ 1,815,473 | ||
Gaming & Lodging – 0.7% | ||||
Flutter Entertainment PLC (a) | 19,307 | $ 3,510,684 | ||
Insurance – 4.9% | ||||
AIA Group Ltd. | 753,200 | $ 9,361,282 | ||
Aon PLC | 37,635 | 8,985,733 | ||
Beazley PLC (a) | 148,677 | 683,630 | ||
Hiscox Ltd. (a) | 159,520 | 1,835,042 | ||
Zurich Insurance Group AG | 11,312 | 4,538,248 | ||
$25,403,935 | ||||
Internet – 3.9% | ||||
NAVER Corp. | 12,841 | $ 4,760,572 | ||
NetEase.com, Inc., ADR | 62,521 | 7,205,545 | ||
Scout24 AG | 36,604 | 3,086,835 | ||
Tencent Holdings Ltd. | 64,700 | 4,866,479 | ||
$19,919,431 | ||||
Leisure & Toys – 0.9% | ||||
Naspers Ltd. | 11,890 | $ 2,496,392 | ||
Yamaha Corp. | 39,400 | 2,138,548 | ||
$4,634,940 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Machinery & Tools – 6.1% | ||||
Daikin Industries Ltd. | 37,400 | $ 6,965,264 | ||
GEA Group AG | 101,899 | 4,127,442 | ||
Kubota Corp. (l) | 290,200 | 5,869,566 | ||
Ritchie Bros. Auctioneers, Inc. | 69,245 | 4,105,207 | ||
Schindler Holding AG | 16,791 | 5,135,750 | ||
SMC Corp. | 9,200 | 5,436,608 | ||
$31,639,837 | ||||
Major Banks – 5.3% | ||||
Bank of Ireland Group PLC (a) | 131,977 | $ 706,873 | ||
BNP Paribas | 127,487 | 7,992,238 | ||
Credit Suisse Group AG | 371,132 | 3,887,610 | ||
Mitsubishi UFJ Financial Group, Inc. | 895,900 | 4,839,368 | ||
NatWest Group PLC | 1,708,451 | 4,802,226 | ||
UBS Group AG | 349,454 | 5,348,034 | ||
$27,576,349 | ||||
Medical Equipment – 3.3% | ||||
EssilorLuxottica | 11,417 | $ 2,107,009 | ||
Koninklijke Philips N.V. | 136,963 | 6,786,859 | ||
QIAGEN N.V. (a) | 91,070 | 4,401,520 | ||
Terumo Corp. | 86,900 | 3,521,525 | ||
$16,816,913 | ||||
Metals & Mining – 0.6% | ||||
Glencore PLC | 702,814 | $ 3,008,481 | ||
Natural Gas - Distribution – 0.5% | ||||
China Resources Gas Group Ltd. | 450,000 | $ 2,700,823 | ||
Natural Gas - Pipeline – 0.8% | ||||
APA Group | 236,480 | $ 1,578,399 | ||
TC Energy Corp. | 55,124 | 2,727,740 | ||
$4,306,139 | ||||
Other Banks & Diversified Financials – 5.1% | ||||
AIB Group PLC (a) | 824,969 | $ 2,125,644 | ||
HDFC Bank Ltd. | 324,514 | 6,539,614 | ||
ING Groep N.V. | 343,783 | 4,541,118 | ||
Julius Baer Group Ltd. | 79,737 | 5,203,480 | ||
Macquarie Group Ltd. | 32,049 | 3,759,819 | ||
Visa, Inc., “A” | 17,155 | 4,011,182 | ||
$26,180,857 | ||||
Pharmaceuticals – 8.6% | ||||
Bayer AG | 52,646 | $ 3,196,784 | ||
Kyowa Kirin Co. Ltd. | 210,000 | 7,447,680 | ||
Novo Nordisk A.S., “B” | 156,131 | 13,080,523 | ||
Roche Holding AG | 42,670 | 16,074,173 | ||
Santen Pharmaceutical Co. Ltd. | 339,200 | 4,671,461 | ||
$44,470,621 | ||||
Printing & Publishing – 1.3% | ||||
Wolters Kluwer N.V. | 68,754 | $ 6,906,803 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Real Estate – 2.7% | ||||
ESR Cayman Ltd. (a) | 759,200 | $ 2,561,859 | ||
Grand City Properties S.A. | 199,844 | 5,398,064 | ||
LEG Immobilien SE | 41,600 | 5,990,789 | ||
$13,950,712 | ||||
Restaurants – 0.7% | ||||
Yum China Holdings, Inc. | 51,164 | $ 3,389,615 | ||
Specialty Chemicals – 8.5% | ||||
Akzo Nobel N.V. | 52,865 | $ 6,531,744 | ||
Croda International PLC | 62,338 | 6,353,585 | ||
Kansai Paint Co. Ltd. | 99,500 | 2,535,528 | ||
Linde PLC | 42,612 | 12,295,790 | ||
Nitto Denko Corp. | 53,800 | 4,014,600 | ||
Sika AG | 19,045 | 6,226,547 | ||
Symrise AG | 41,362 | 5,762,787 | ||
$43,720,581 | ||||
Specialty Stores – 0.4% | ||||
Ocado Group PLC (a) | 33,977 | $ 941,417 | ||
ZOZO, Inc. | 31,500 | 1,070,368 | ||
$2,011,785 | ||||
Telecommunications - Wireless – 2.8% | ||||
Advanced Info Service Public Co. Ltd. | 366,500 | $ 1,955,429 | ||
Cellnex Telecom S.A. | 51,437 | 3,276,460 | ||
KDDI Corp. | 155,400 | 4,846,852 | ||
SoftBank Group Corp. | 59,900 | 4,192,110 | ||
$14,270,851 | ||||
Telephone Services – 0.5% | ||||
Hellenic Telecommunications Organization S.A. | 125,995 | $ 2,113,990 | ||
Tele2 AB, “B” (l) | 53,923 | 734,675 | ||
$2,848,665 | ||||
Tobacco – 1.7% | ||||
British American Tobacco PLC | 151,946 | $ 5,885,233 | ||
Japan Tobacco, Inc. (l) | 146,900 | 2,774,829 | ||
$8,660,062 | ||||
Utilities - Electric Power – 2.4% | ||||
CLP Holdings Ltd. | 266,500 | $ 2,636,065 | ||
E.ON SE | 220,446 | 2,549,636 | ||
Iberdrola S.A. | 397,852 | 4,849,621 | ||
Orsted A/S (Kingdom of Denmark) | 16,713 | 2,345,217 | ||
$12,380,539 | ||||
Total Common Stocks (Identified Cost, $387,282,546) | $511,255,929 |
Issuer | Strike Price | First Exercise | Shares/Par | Value ($) |
Warrants – 0.0% | ||||
Apparel Manufacturers – 0.0% | ||||
Compagnie Financiere Richemont S.A. (1 share for 2 warrants, Expiration 12/04/23) (a) (Identified Cost, $0) | CHF 67.00 | 11/20/23 | 72,208 | $ 48,386 |
Investment Companies (h) – 0.3% | ||||
Money Market Funds – 0.3% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $1,745,256) | 1,745,256 | $ 1,745,256 | ||
Collateral for Securities Loaned – 0.1% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio, 0.02% (j) (Identified Cost, $385,542) | 385,542 | $ 385,542 | ||
Other Assets, Less Liabilities – 0.4% | 1,827,801 | |||
Net Assets – 100.0% | $515,262,914 |
(a) | Non-income producing security. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $1,745,256 and $511,689,857, respectively. | |||
(j) | The rate quoted is the annualized seven-day yield of the fund at period end. | |||
(l) | A portion of this security is on loan. See Note 2 for additional information. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
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: | |
CHF | Swiss Franc |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value, including $4,269,526 of securities on loan (identified cost, $387,668,088) | $511,689,857 |
Investments in affiliated issuers, at value (identified cost, $1,745,256) | 1,745,256 |
Foreign currency, at value (identified cost, $233,527) | 232,140 |
Receivables for | |
Investments sold | 653,664 |
Fund shares sold | 23,506 |
Interest and dividends | 1,899,127 |
Other assets | 2,140 |
Total assets | $516,245,690 |
Liabilities | |
Payables for | |
Investments purchased | $19,023 |
Fund shares reacquired | 262,737 |
Collateral for securities loaned, at value (c) | 385,542 |
Payable to affiliates | |
Investment adviser | 25,268 |
Administrative services fee | 431 |
Shareholder servicing costs | 101 |
Distribution and/or service fees | 1,810 |
Deferred country tax expense payable | 167,608 |
Accrued expenses and other liabilities | 120,256 |
Total liabilities | $982,776 |
Net assets | $515,262,914 |
Net assets consist of | |
Paid-in capital | $356,209,763 |
Total distributable earnings (loss) | 159,053,151 |
Net assets | $515,262,914 |
Shares of beneficial interest outstanding | 26,501,767 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $384,302,812 | 19,692,704 | $19.51 |
Service Class | 130,960,102 | 6,809,063 | 19.23 |
(c) | Non-cash collateral is not included. |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $6,944,821 |
Income on securities loaned | 5,577 |
Dividends from affiliated issuers | 1,047 |
Foreign taxes withheld | (687,791) |
Total investment income | $6,263,654 |
Expenses | |
Management fee | $2,260,666 |
Distribution and/or service fees | 155,882 |
Shareholder servicing costs | 9,838 |
Administrative services fee | 37,682 |
Independent Trustees' compensation | 4,164 |
Custodian fee | 52,592 |
Shareholder communications | 14,824 |
Audit and tax fees | 29,842 |
Legal fees | 1,592 |
Miscellaneous | 13,931 |
Total expenses | $2,581,013 |
Reduction of expenses by investment adviser | (30,105) |
Net expenses | $2,550,908 |
Net investment income (loss) | $3,712,746 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers (net of $9,917 country tax) | $3,196,084 |
Foreign currency | 8,075 |
Net realized gain (loss) | $3,204,159 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (net of $3,694 increase in deferred country tax) | $30,155,206 |
Translation of assets and liabilities in foreign currencies | (50,032) |
Net unrealized gain (loss) | $30,105,174 |
Net realized and unrealized gain (loss) | $33,309,333 |
Change in net assets from operations | $37,022,079 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/21 (unaudited) | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $3,712,746 | $4,289,206 |
Net realized gain (loss) | 3,204,159 | 24,915,531 |
Net unrealized gain (loss) | 30,105,174 | 24,197,204 |
Change in net assets from operations | $37,022,079 | $53,401,941 |
Total distributions to shareholders | $— | $(22,406,392) |
Change in net assets from fund share transactions | $(11,744,481) | $2,253,946 |
Total change in net assets | $25,277,598 | $33,249,495 |
Net assets | ||
At beginning of period | 489,985,316 | 456,735,821 |
At end of period | $515,262,914 | $489,985,316 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $18.14 | $16.96 | $14.07 | $17.05 | $13.54 | $13.85 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.14 | $0.17 | $0.31 | $0.25 | $0.22 | $0.25(c) |
Net realized and unrealized gain (loss) | 1.23 | 1.92 | 3.51 | (2.56) | 3.59 | (0.34) |
Total from investment operations | $1.37 | $2.09 | $3.82 | $(2.31) | $3.81 | $(0.09) |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.34) | $(0.24) | $(0.25) | $(0.30) | $(0.22) |
From net realized gain | — | (0.57) | (0.69) | (0.42) | — | — |
Total distributions declared to shareholders | $— | $(0.91) | $(0.93) | $(0.67) | $(0.30) | $(0.22) |
Net asset value, end of period (x) | $19.51 | $18.14 | $16.96 | $14.07 | $17.05 | $13.54 |
Total return (%) (k)(r)(s)(x) | 7.55(n) | 12.95 | 28.04 | (14.12) | 28.29 | (0.70)(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.96(a) | 0.98 | 0.99 | 0.98 | 1.00 | 0.95(c) |
Expenses after expense reductions (f) | 0.95(a) | 0.96 | 0.96 | 0.97 | 0.99 | 0.94(c) |
Net investment income (loss) | 1.54(a) | 1.06 | 1.99 | 1.51 | 1.44 | 1.87(c) |
Portfolio turnover | 14(n) | 28 | 24 | 25 | 27 | 41 |
Net assets at end of period (000 omitted) | $384,303 | $369,243 | $356,291 | $302,386 | $341,613 | $318,753 |
Service Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $17.90 | $16.74 | $13.90 | $16.84 | $13.38 | $13.68 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.12 | $0.14 | $0.26 | $0.21 | $0.19 | $0.21(c) |
Net realized and unrealized gain (loss) | 1.21 | 1.89 | 3.47 | (2.53) | 3.52 | (0.33) |
Total from investment operations | $1.33 | $2.03 | $3.73 | $(2.32) | $3.71 | $(0.12) |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.30) | $(0.20) | $(0.20) | $(0.25) | $(0.18) |
From net realized gain | — | (0.57) | (0.69) | (0.42) | — | — |
Total distributions declared to shareholders | $— | $(0.87) | $(0.89) | $(0.62) | $(0.25) | $(0.18) |
Net asset value, end of period (x) | $19.23 | $17.90 | $16.74 | $13.90 | $16.84 | $13.38 |
Total return (%) (k)(r)(s)(x) | 7.43(n) | 12.71 | 27.67 | (14.32) | 27.90 | (0.91)(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.22(a) | 1.23 | 1.24 | 1.23 | 1.25 | 1.20(c) |
Expenses after expense reductions (f) | 1.21(a) | 1.21 | 1.21 | 1.22 | 1.24 | 1.19(c) |
Net investment income (loss) | 1.30(a) | 0.87 | 1.65 | 1.27 | 1.26 | 1.58(c) |
Portfolio turnover | 14(n) | 28 | 24 | 25 | 27 | 41 |
Net assets at end of period (000 omitted) | $130,960 | $120,742 | $100,445 | $66,789 | $80,634 | $83,138 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 | $511,304,315 | $— | $— | $511,304,315 |
Mutual Funds | 2,130,798 | — | — | 2,130,798 |
Total | $513,435,113 | $— | $— | $513,435,113 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $8,553,340 |
Long-term capital gains | 13,853,052 |
Total distributions | $22,406,392 |
As of 6/30/21 | |
Cost of investments | $390,192,187 |
Gross appreciation | 138,846,879 |
Gross depreciation | (15,603,953) |
Net unrealized appreciation (depreciation) | $123,242,926 |
As of 12/31/20 | |
Undistributed ordinary income | 6,014,636 |
Undistributed long-term capital gain | 22,895,404 |
Other temporary differences | 37,006 |
Net unrealized appreciation (depreciation) | 93,084,026 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $18,500,918 | |
Service Class | — | 3,905,474 | |
Total | $— | $22,406,392 |
Up to $1 billion | 0.90% |
In excess of $1 billion and up to $2 billion | 0.80% |
In excess of $2 billion | 0.70% |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 1,087,353 | $20,235,986 | 1,877,609 | $27,251,600 | |
Service Class | 531,947 | 9,927,907 | 3,047,104 | 51,507,599 | |
1,619,300 | $30,163,893 | 4,924,713 | $78,759,199 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 1,129,482 | $18,500,918 | |
Service Class | — | — | 241,377 | 3,905,474 | |
— | $— | 1,370,859 | $22,406,392 | ||
Shares reacquired | |||||
Initial Class | (1,751,622) | $(33,173,414) | (3,661,504) | $(57,937,592) | |
Service Class | (468,851) | (8,734,960) | (2,541,987) | (40,974,053) | |
(2,220,473) | $(41,908,374) | (6,203,491) | $(98,911,645) | ||
Net change | |||||
Initial Class | (664,269) | $(12,937,428) | (654,413) | $(12,185,074) | |
Service Class | 63,096 | 1,192,947 | 746,494 | 14,439,020 | |
(601,173) | $(11,744,481) | 92,081 | $2,253,946 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $3,433,184 | $83,617,594 | $85,305,522 | $— | $— | $1,745,256 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,047 | $— |
1 | |
2 | |
4 | |
5 | |
11 | |
12 | |
13 | |
14 | |
16 | |
25 | |
26 | |
26 | |
26 | |
26 |
U.S. Treasury Securities | 30.9% |
Investment Grade Corporates | 26.4% |
High Yield Corporates | 18.2% |
Collateralized Debt Obligations | 11.7% |
Emerging Markets Bonds | 10.1% |
Commercial Mortgage-Backed Securities | 8.3% |
Municipal Bonds | 3.0% |
Asset-Backed Securities | 1.2% |
Residential Mortgage-Backed Securities | 0.7% |
U.S. Government Agencies | 0.1% |
Mortgage-Backed Securities | 0.1% |
Floating Rate Loans | 0.1% |
AAA | 5.4% |
AA | 3.9% |
A | 11.1% |
BBB | 33.4% |
BB | 14.9% |
B | 8.0% |
CCC | 2.1% |
CC (o) | 0.0% |
C (o) | 0.0% |
D (o) | 0.0% |
U.S. Government | 18.7% |
Federal Agencies | 0.2% |
Not Rated | 13.1% |
Non-Fixed Income | 0.3% |
Cash & Cash Equivalents | 1.2% |
Other | (12.3)% |
Average Duration (d) | 6.2 |
Average Effective Maturity (m) | 6.9 yrs. |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 ratings agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities. Not Rated includes fixed income securities and fixed income derivatives that have not been rated by any rating agency. Non-Fixed Income includes equity securities (including convertible bonds and equity derivatives) and/or commodity-linked derivatives. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening device (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity. |
(o) | Less than 0.1%. |
(v) | For purposes of this presentation, market value of fixed income and/or equity derivatives, if any, is included in Cash & Cash Equivalents. |
January 1, 2021 through June 30, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/21 | Ending Account Value 6/30/21 | Expenses Paid During Period (p) 1/01/21-6/30/21 | |
Initial Class | Actual | 0.75% | $1,000.00 | $1,001.90 | $3.72 |
Hypothetical (h) | 0.75% | $1,000.00 | $1,021.08 | $3.76 | |
Service Class | Actual | 1.00% | $1,000.00 | $1,000.00 | $4.96 |
Hypothetical (h) | 1.00% | $1,000.00 | $1,019.84 | $5.01 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the fund invests. If these indirect costs were included, your costs would have been higher. |
Issuer | Shares/Par | Value ($) | ||
Bonds – 83.4% | ||||
Aerospace & Defense – 0.8% | ||||
Boeing Co., 2.196%, 2/04/2026 | $ | 202,000 | $ 203,931 | |
Boeing Co., 2.95%, 2/01/2030 | 43,000 | 44,027 | ||
Boeing Co., 5.705%, 5/01/2040 | 34,000 | 43,788 | ||
Boeing Co., 5.805%, 5/01/2050 | 33,000 | 44,439 | ||
$336,185 | ||||
Asset-Backed & Securitized – 21.9% | ||||
Allegro CLO Ltd., 2014-1RA, “C”, FLR, 3.186% (LIBOR - 3mo. + 3%), 10/21/2028 (n) | $ | 250,000 | $ 245,690 | |
Allegro CLO Ltd., 2015-1X, “CR”, FLR, 1.825% (LIBOR - 3mo. + 1.65%), 7/25/2027 (n) | 250,000 | 250,061 | ||
Arbor Realty Trust, Inc., CLO, 2018-FL1, “A”, FLR, 1.222% (LIBOR - 1mo. + 1.15%), 6/15/2028 (n) | 260,000 | 260,081 | ||
Arbor Realty Trust, Inc., CLO, 2019-FL1, “D”, FLR, 2.572% (LIBOR - 1mo. + 2.5%), 5/15/2037 (n) | 244,000 | 243,695 | ||
Arbor Realty Trust, Inc., CLO, 2020-FL1, “D”, FLR, 2.574% (LIBOR - 1mo. + 2.45%), 2/15/2035 (n) | 232,000 | 231,410 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “D”, FLR, 3.022% (LIBOR - 1mo. + 2.95%), 12/15/2035 (n) | 100,000 | 100,282 | ||
AREIT CRE Trust, 2019-CRE3, “D”, FLR, 2.774% (LIBOR - 1mo. + 2.65%), 9/14/2036 (n) | 271,000 | 265,616 | ||
Babson CLO Ltd., 2013-IIA, “BR”, FLR, 1.438% (LIBOR - 3mo. + 1.25%), 1/20/2028 (n) | 250,000 | 249,459 | ||
Bancorp Commercial Mortgage Trust, 2018-CRE3, “D”, FLR, 2.772% (LIBOR - 1mo. + 2.7%), 1/15/2033 (n) | 248,157 | 246,869 | ||
Bancorp Commercial Mortgage Trust, 2018-CRE4, “D”, FLR, 2.172% (LIBOR - 1mo. + 2.1%), 9/15/2035 (n) | 200,000 | 198,321 | ||
Bancorp Commercial Mortgage Trust, 2019-CRE5, “D”, FLR, 2.422% (LIBOR - 1mo. + 2.35%), 3/15/2036 (n) | 280,000 | 278,394 | ||
Bancorp Commercial Mortgage Trust, 2019-CRE6, “D”, FLR, 2.424% (LIBOR - 1mo. + 2.54%), 9/15/2036 (n) | 265,000 | 263,682 | ||
Bayview Financial Revolving Mortgage Loan Trust, FLR, 1.695% (LIBOR - 1mo. + 1.6%), 12/28/2040 (n) | 88,289 | 94,946 | ||
BSPRT Issuer Ltd., 2019-FL5, “C”, FLR, 2.072% (LIBOR - 1mo. + 2%), 5/15/2029 (n) | 245,000 | 243,179 | ||
Business Jet Securities LLC, 2020-1A, “A”, 2.981%, 11/15/2035 (n) | 80,044 | 81,489 | ||
Capital Automotive, 2020-1A, “B1”, REIT, 4.17%, 2/15/2050 (n) | 110,227 | 113,781 | ||
CHCP 2021-FL1 Ltd., “C”, FLR, 2.224% (LIBOR - 1mo. + 2.1%), 2/15/2038 (n) | 100,000 | 100,157 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
CLNC Ltd., 2019-FL1, “C”, FLR, 2.524% (LIBOR - 1mo. + 2.4%), 8/20/2035 (n) | $ | 265,000 | $ 263,677 | |
Commercial Mortgage Pass-Through Certificates, 2019-BN24, “A3”, 2.96%, 11/15/2062 | 134,719 | 145,014 | ||
Commercial Mortgage Pass-Through Certificates, 2020-BN28, “A4”, 1.844%,��3/15/2063 | 61,262 | 60,472 | ||
Commercial Mortgage Trust, 2015-PC1, “A5”, 3.902%, 7/10/2050 | 346,107 | 380,107 | ||
Crest Ltd., CDO, 7%, (0.001% cash or 7% PIK) 1/28/2040 (a)(p) | 686,262 | 7 | ||
Cutwater Ltd., 2015-1A, “BR”, FLR, 1.983% (LIBOR - 3mo. + 1.8%), 1/15/2029 (n) | 250,000 | 247,085 | ||
DT Auto Owner Trust, 2020-1A, “C”, 2.29%, 11/17/2025 (n) | 123,000 | 125,633 | ||
Exeter Automobile Receivables Trust, 2020-1A, 2.49%, 1/15/2025 (n) | 40,000 | 40,711 | ||
Flagship CLO, 2014-8A, “BRR”, FLR, 1.583% (LIBOR - 3mo. + 1.4%), 1/16/2026 (n) | 258,677 | 258,948 | ||
Galaxy CLO Ltd., 2018-29A, “C”, FLR, 1.835% (LIBOR - 3mo. + 1.68%), 11/15/2026 (n) | 250,000 | 250,101 | ||
GS Mortgage Securities Trust, 2019-GSA1, “A4”, 3.047%, 11/10/2052 | 261,722 | 282,816 | ||
Invitation Homes Trust, 2018-SFR1, “C”, FLR, 1.332% (LIBOR - 1mo. + 1.25%), 3/17/2037 (n) | 130,000 | 130,204 | ||
Invitation Homes Trust, 2018-SFR2, “A”, FLR, 0.932% (LIBOR - 1mo. + 0.85%), 12/17/2036 (n) | 178,480 | 178,637 | ||
KKR Real Estate Financial Trust, Inc., 2018-FL1, “D”, FLR, 2.631% (LIBOR - 1mo. + 2.55%), 6/15/2036 (n) | 205,000 | 205,256 | ||
Lehman Brothers Commercial Conduit Mortgage Trust, 1.099%, 2/18/2030 (i) | 2,872 | 0 | ||
LoanCore Ltd., 2018-CRE1, “C”, FLR, 2.622% (LIBOR - 1mo. + 2.55%), 5/15/2028 (n) | 260,000 | 258,700 | ||
LoanCore Ltd., 2018-CRE1, “C”, FLR, 2.022% (LIBOR - 1mo. + 1.95%), 4/15/2034 (n) | 219,150 | 216,961 | ||
LoanCore Ltd., 2019-CRE2, “D”, FLR, 2.522% (LIBOR - 1mo. + 2.45%), 5/15/2036 (n) | 209,000 | 202,751 | ||
Man GLG U.S. CLO Ltd., 2018-2A, “BR”, FLR, 2.633% (LIBOR - 3mo. + 2.45%), 10/15/2028 | 250,000 | 249,972 | ||
MF1 CLO Ltd., 2019-FL2, “A”, FLR, 2.482% (LIBOR - 1mo. + 2.35%), 12/25/2034 (n) | 259,000 | 258,676 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
MF1 Multi-Family Housing Mortgage Loan Trust, 2020-FL4, “B”, FLR, 2.874% (LIBOR - 1mo. + 2.75%), 11/15/2035 (n) | $ | 250,000 | $ 253,281 | |
Morgan Stanley Capital I Trust, 2017-H1, “A5”, 3.53%, 6/15/2050 | 187,518 | 206,953 | ||
Palmer Square Loan Funding Ltd., 2020-1A, “B”, FLR, 2.055% (LIBOR - 3mo. + 1.9%), 2/20/2028 (n) | 250,000 | 245,020 | ||
Parallel Ltd., 2015-1A, “DR”, FLR, 2.738% (LIBOR - 3mo. + 2.55%), 7/20/2027 (n) | 250,000 | 249,623 | ||
Race Point CLO Ltd., 2013-8A, “CR2”, FLR, 2.205% (LIBOR - 3mo. + 2.05%), 2/20/2030 (n) | 250,000 | 250,062 | ||
Securitized Term Auto Receivable Trust, 2019-CRTA, “C”, 2.849%, 3/25/2026 (n) | 58,526 | 59,733 | ||
UBS Commercial Mortgage Trust, 2017-C1, “A4”, 3.544%, 11/15/2050 | 251,247 | 277,969 | ||
UBS Commercial Mortgage Trust, 2017-C7, “A4”, 3.679%, 12/15/2050 | 155,000 | 170,988 | ||
UBS Commercial Mortgage Trust, 2019-C17, “A4”, 2.921%, 9/15/2052 | 197,844 | 210,246 | ||
Veros Auto Receivables Trust, 2020-1, “A”, 1.67%, 9/15/2023 (n) | 28,300 | 28,369 | ||
Wells Fargo Commercial Mortgage Trust, 2019-C54, “A4”, 3.146%, 12/15/2052 | 167,746 | 182,507 | ||
Wind River CLO Ltd., 2015-2A, “CR”, FLR, 1.883% (LIBOR - 3mo. + 1.7%), 10/15/2027 (n) | 250,000 | 250,459 | ||
$9,608,050 | ||||
Automotive – 0.7% | ||||
Hyundai Capital America, 6.375%, 4/08/2030 (n) | $ | 250,000 | $ 324,107 | |
Broadcasting – 0.2% | ||||
Discovery, Inc., 4.65%, 5/15/2050 | $ | 95,000 | $ 111,170 | |
Brokerage & Asset Managers – 1.2% | ||||
E*TRADE Financial Corp., 4.5%, 6/20/2028 | $ | 217,000 | $ 251,237 | |
Intercontinental Exchange, Inc., 2.1%, 6/15/2030 | 101,000 | 100,295 | ||
Raymond James Financial, 4.65%, 4/01/2030 | 134,000 | 160,273 | ||
$511,805 | ||||
Business Services – 0.6% | ||||
Global Payments, Inc., 2.9%, 5/15/2030 | $ | 120,000 | $ 125,024 | |
NXP Semiconductors N.V., 3.4%, 5/01/2030 (n) | 35,000 | 38,217 | ||
RELX Capital, Inc., 3%, 5/22/2030 | 76,000 | 81,199 | ||
$244,440 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Cable TV – 0.9% | ||||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 3.9%, 6/01/2052 | $ | 176,000 | $ 179,204 | |
Time Warner Cable, Inc., 4.5%, 9/15/2042 | 183,000 | 203,413 | ||
$382,617 | ||||
Chemicals – 0.5% | ||||
Sasol Financing (USA) LLC, 4.375%, 9/18/2026 | $ | 200,000 | $ 206,600 | |
Computer Software – 0.4% | ||||
Dell International LLC/EMC Corp., 5.3%, 10/01/2029 | $ | 149,000 | $ 179,788 | |
Conglomerates – 0.8% | ||||
Westinghouse Air Brake Technologies Corp., 4.95%, 9/15/2028 | $ | 304,000 | $ 352,636 | |
Consumer Services – 1.1% | ||||
Expedia Group, Inc., 3.25%, 2/15/2030 | $ | 300,000 | $ 313,364 | |
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2026 (n) | 46,000 | 38,432 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2029 (n) | 132,000 | 88,265 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2031 (n) | 46,000 | 27,254 | ||
$467,315 | ||||
Electronics – 0.9% | ||||
Broadcom Corp./Broadcom Cayman Finance Ltd., 3.5%, 1/15/2028 | $ | 245,000 | $ 268,779 | |
Broadcom, Inc., 4.3%, 11/15/2032 | 96,000 | 109,318 | ||
$378,097 | ||||
Emerging Market Quasi-Sovereign – 1.8% | ||||
DAE Funding LLC (United Arab Emirates), 3.375%, 3/20/2028 (n) | $ | 200,000 | $ 204,416 | |
Indian Railway Finance Corp., 2.8%, 2/10/2031 (n) | 200,000 | 193,298 | ||
Ipoteka Bank (Republic of Uzbekistan), 5.5%, 11/19/2025 | 200,000 | 207,750 | ||
Office Cherifien des Phosphates S.A. (Kingdom of Morocco), 3.75%, 6/23/2031 (n) | 200,000 | 201,900 | ||
$807,364 | ||||
Emerging Market Sovereign – 2.7% | ||||
Dominican Republic, 4.875%, 9/23/2032 (n) | $ | 150,000 | $ 154,500 | |
Government of Ukraine, GDP Linked Bond, 1.258%, 5/31/2040 | 138,000 | 163,530 | ||
Oriental Republic of Uruguay, 8.5%, 3/15/2028 | UYU | 4,753,000 | 112,874 | |
Republic of Chile, 5%, 10/01/2028 (n) | CLP | 60,000,000 | 84,956 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Emerging Market Sovereign – continued | ||||
Republic of Cote d'Ivoire, 4.875%, 1/30/2032 (n) | EUR | 100,000 | $ 118,445 | |
Republic of Kenya, 8%, 5/22/2032 | $ | 200,000 | 224,990 | |
Republic of North Macedonia, 1.625%, 3/10/2028 (n) | EUR | 100,000 | 116,796 | |
Republic of Romania, 2%, 4/14/2033 (n) | 69,000 | 81,134 | ||
Republic of South Africa, 8.25%, 3/31/2032 | ZAR | 1,732,000 | 110,763 | |
$1,167,988 | ||||
Energy - Independent – 1.3% | ||||
Diamondback Energy, Inc., 4.4%, 3/24/2051 | $ | 60,000 | $ 67,554 | |
Energean Israel Finance Ltd., 4.875%, 3/30/2026 | 110,000 | 112,615 | ||
Leviathan Bond Ltd., 6.75%, 6/30/2030 (n) | 175,000 | 197,312 | ||
Tengizchevroil Finance Co. International Ltd., 3.25%, 8/15/2030 (n) | 200,000 | 203,620 | ||
$581,101 | ||||
Energy - Integrated – 0.5% | ||||
Eni S.p.A., 4%, 9/12/2023 (n) | $ | 200,000 | $ 213,606 | |
Financial Institutions – 2.2% | ||||
AerCap Ireland Capital DAC, 6.5%, 7/15/2025 | $ | 150,000 | $ 175,937 | |
AerCap Ireland Capital DAC, 3.65%, 7/21/2027 | 195,000 | 208,315 | ||
Avolon Holdings Funding Ltd., 3.25%, 2/15/2027 (n) | 195,000 | 201,048 | ||
Avolon Holdings Funding Ltd., 2.75%, 2/21/2028 (n) | 194,000 | 191,953 | ||
Shriram Transport Finance Co. Ltd., 4.4%, 3/13/2024 (n) | 200,000 | 200,300 | ||
$977,553 | ||||
Food & Beverages – 1.0% | ||||
Anheuser-Busch InBev Worldwide, Inc., 4.439%, 10/06/2048 | $ | 92,491 | $ 110,702 | |
Bacardi Ltd., 5.15%, 5/15/2038 (n) | 115,000 | 142,314 | ||
Central American Bottling Corp., 5.75%, 1/31/2027 (n) | 80,000 | 83,684 | ||
JBS USA Holdings, Inc., 6.5%, 4/15/2029 | 77,000 | 86,530 | ||
$423,230 | ||||
Gaming & Lodging – 1.1% | ||||
GLP Capital LP/GLP Financing II, Inc., 4%, 1/15/2030 | $ | 268,000 | $ 287,647 | |
GLP Capital LP/GLP Financing II, Inc., 4%, 1/15/2031 | 45,000 | 48,487 | ||
Marriott International, Inc., 4.625%, 6/15/2030 | 63,000 | 72,557 | ||
Marriott International, Inc., 2.85%, 4/15/2031 | 61,000 | 61,945 | ||
$470,636 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Insurance - Property & Casualty – 1.9% | ||||
Allied World Assurance Co. Holdings Ltd., 4.35%, 10/29/2025 | $ | 310,000 | $ 340,341 | |
Aon Corp., 4.5%, 12/15/2028 | 115,000 | 134,466 | ||
Fairfax Financial Holdings Ltd., 4.85%, 4/17/2028 | 283,000 | 325,542 | ||
Fairfax Financial Holdings Ltd., 3.375%, 3/03/2031 (n) | 15,000 | 15,632 | ||
$815,981 | ||||
Machinery & Tools – 0.4% | ||||
CNH Industrial Capital LLC, 3.85%, 11/15/2027 | $ | 145,000 | $ 160,543 | |
Major Banks – 4.1% | ||||
Bank of America Corp., 4.271% to 7/23/2028, FLR (LIBOR - 3mo. + 1.31%) to 7/23/2029 | $ | 61,000 | $ 70,076 | |
Bank of New York Mellon Corp., 4.7% to 9/20/2025, FLR (CMT - 5yr. + 4.358%) to 9/20/2070 | 200,000 | 218,250 | ||
Barclays PLC, 4.375%, 1/12/2026 | 200,000 | 223,938 | ||
Credit Suisse Group AG, 3.091% to 5/14/2031, FLR (SOFR + 1.73%) to 5/14/2032 (n) | 250,000 | 257,563 | ||
HSBC Holdings PLC, 4.7% to 9/09/2031, FLR (CMT - 1yr. + 3.25%) to 9/09/2169 | 200,000 | 207,500 | ||
JPMorgan Chase & Co., 2.956% to 5/13/2030, FLR (SOFR + 2.515%) to 5/13/2031 | 81,000 | 85,091 | ||
JPMorgan Chase & Co., 3.882% to 7/24/2037, FLR (LIBOR - 3mo. + 1.36%) to 7/24/2038 | 83,000 | 95,613 | ||
UBS Group AG, 4.375% to 2/10/2031, FLR (CMT - 1yr. + 3.313%) to 8/10/2069 (n) | 400,000 | 408,680 | ||
UBS Group Funding (Switzerland) AG, 4.253%, 3/23/2028 (n) | 215,000 | 243,254 | ||
$1,809,965 | ||||
Medical & Health Technology & Services – 1.9% | ||||
New York Society for the Relief of the Ruptured & Crippled, 2.667%, 10/01/2050 | $ | 232,000 | $ 217,229 | |
ProMedica Toledo Hospital, “B”, 5.325%, 11/15/2028 | 239,000 | 282,120 | ||
ProMedica Toledo Hospital, “B”, AGM, 5.75%, 11/15/2038 | 89,000 | 108,335 | ||
Tower Health, 4.451%, 2/01/2050 | 270,000 | 228,150 | ||
$835,834 | ||||
Metals & Mining – 0.7% | ||||
Anglo American Capital PLC, 2.875%, 3/17/2031 (n) | $ | 200,000 | $ 204,454 | |
Glencore Funding LLC, 2.85%, 4/27/2031 (n) | 88,000 | 89,490 | ||
$293,944 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Midstream – 2.8% | ||||
Cheniere Corpus Christi Holdings LLC, 3.7%, 11/15/2029 | $ | 263,000 | $ 287,270 | |
Enbridge, Inc., 3.125%, 11/15/2029 | 150,000 | 160,636 | ||
Enbridge, Inc., 2.5%, 8/01/2033 | 170,000 | 170,016 | ||
Galaxy Pipeline Assets Bidco Ltd., 2.625%, 3/31/2036 (n) | 200,000 | 196,184 | ||
MPLX LP, 4.5%, 4/15/2038 | 199,000 | 228,344 | ||
Plains All American Pipeline LP, 3.8%, 9/15/2030 | 135,000 | 144,458 | ||
Sabine Pass Liquefaction LLC, 4.5%, 5/15/2030 | 53,000 | 61,165 | ||
$1,248,073 | ||||
Mortgage-Backed – 0.1% | ||||
Fannie Mae, 6.5%, 4/01/2032 | $ | 12,074 | $ 13,898 | |
Fannie Mae, 3%, 2/25/2033 (i) | 45,576 | 4,492 | ||
Fannie Mae, 5.5%, 9/01/2034 | 7,630 | 8,819 | ||
$27,209 | ||||
Municipals – 3.0% | ||||
Bridgeview, IL, Stadium and Redevelopment Projects, AAC, 5.14%, 12/01/2036 | $ | 195,000 | $ 206,194 | |
Escambia County, FL, Health Facilities Authority Rev. (Baptist Health Care Corp.), “B”, AGM, 3.607%, 8/15/2040 | 270,000 | 276,871 | ||
New Jersey Economic Development Authority State Pension Funding Rev., “A”, NPFG, 7.425%, 2/15/2029 | 177,000 | 229,541 | ||
New Jersey Economic Development Authority State Pension Funding Rev., Capital Appreciation, “B”, AGM, 0%, 2/15/2023 | 350,000 | 347,866 | ||
Puerto Rico Electric Power Authority Rev., “A”, 5%, 7/01/2042 (a)(d) | 5,000 | 4,850 | ||
Puerto Rico Electric Power Authority Rev., “ZZ”, 5%, 7/01/2018 (a)(d) | 75,000 | 72,000 | ||
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, “2019A-1”, 4.55%, 7/01/2040 | 174,000 | 179,213 | ||
$1,316,535 | ||||
Natural Gas - Distribution – 0.5% | ||||
ENN Clean Energy International Investment Ltd., 3.375%, 5/12/2026 (n) | $ | 200,000 | $ 203,882 | |
Oils – 0.5% | ||||
FS Luxembourg S.à r.l., 10%, 12/15/2025 (n) | $ | 200,000 | $ 223,752 | |
Other Banks & Diversified Financials – 0.5% | ||||
Mizrahi Tefahot Bank Ltd., 3.077% to 4/07/2026, FLR (CMT - 5yr. + 2.25%) to 4/07/2031 (n) | $ | 200,000 | $ 202,000 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Real Estate - Apartment – 0.6% | ||||
Mid-America Apartments LP, 2.75%, 3/15/2030 | $ | 259,000 | $ 270,805 | |
Real Estate - Office – 0.3% | ||||
Boston Properties, Inc., REIT, 2.55%, 4/01/2032 | $ | 147,000 | $ 147,911 | |
Retailers – 0.6% | ||||
Alimentation Couche-Tard, Inc., 2.95%, 1/25/2030 (n) | $ | 65,000 | $ 67,444 | |
MercadoLibre, Inc., 2.375%, 1/14/2026 | 200,000 | 201,302 | ||
$268,746 | ||||
Specialty Stores – 0.1% | ||||
Nordstrom, Inc., 2.3%, 4/08/2024 (n) | $ | 51,000 | $ 51,160 | |
Supranational – 1.1% | ||||
Corporacion Andina de Fomento, 4.375%, 6/15/2022 | $ | 340,000 | $ 352,213 | |
West African Development Bank, 2.75%, 1/22/2033 (n) | EUR | 100,000 | 124,116 | |
$476,329 | ||||
Telecommunications - Wireless – 1.7% | ||||
American Tower Corp., REIT, 3.55%, 7/15/2027 | $ | 119,000 | $ 130,723 | |
Cellnex Finance Co. S.A., 3.875%, 7/07/2041 (n) | 200,000 | 199,392 | ||
Crown Castle International Corp., 4.15%, 7/01/2050 | 200,000 | 228,346 | ||
T-Mobile USA, Inc., 4.375%, 4/15/2040 | 173,000 | 202,808 | ||
$761,269 | ||||
Tobacco – 0.6% | ||||
B.A.T. Capital Corp., 3.215%, 9/06/2026 | $ | 231,000 | $ 245,071 | |
Transportation - Services – 0.6% | ||||
Delhi International Airport Ltd., 6.125%, 10/31/2026 | $ | 200,000 | $ 204,452 | |
Element Fleet Management Corp., 1.6%, 4/06/2024 (n) | 80,000 | 81,301 | ||
$285,753 | ||||
U.S. Government Agencies and Equivalents – 0.1% | ||||
Small Business Administration, 4.77%, 4/01/2024 | $ | 7,367 | $ 7,661 | |
Small Business Administration, 4.99%, 9/01/2024 | 6,566 | 6,849 | ||
Small Business Administration, 4.86%, 1/01/2025 | 9,026 | 9,436 | ||
Small Business Administration, 4.625%, 2/01/2025 | 12,643 | 13,216 | ||
Small Business Administration, 5.11%, 8/01/2025 | 9,953 | 10,537 | ||
$47,699 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Treasury Obligations – 18.6% | ||||
U.S. Treasury Bonds, 1.375%, 11/15/2040 | $ | 1,150,000 | $ 1,033,024 | |
U.S. Treasury Bonds, 2.375%, 11/15/2049 | 350,000 | 372,695 | ||
U.S. Treasury Notes, 1.625%, 12/15/2022 | 3,000,000 | 3,063,750 | ||
U.S. Treasury Notes, 0.125%, 12/31/2022 | 2,000,000 | 1,998,281 | ||
U.S. Treasury Notes, 0.25%, 9/30/2025 | 1,750,000 | 1,713,154 | ||
$8,180,904 | ||||
Utilities - Electric Power – 2.1% | ||||
Enel Finance International N.V., 3.625%, 5/25/2027 (n) | $ | 280,000 | $ 307,568 | |
FirstEnergy Corp., 5.35%, 7/15/2047 | 270,000 | 324,000 | ||
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n) | 34,000 | 34,513 | ||
Pacific Gas & Electric Co., 3%, 6/15/2028 | 44,000 | 44,198 | ||
Pacific Gas & Electric Co., 3.5%, 8/01/2050 | 250,000 | 222,815 | ||
$933,094 | ||||
Total Bonds (Identified Cost, $35,753,058) | $ 36,550,747 |
Issuer | Shares/Par | Value ($) | ||
Investment Companies (h) – 17.5% | ||||
Bond Funds – 15.0% | ||||
MFS High Yield Pooled Portfolio (v) | 711,331 | $ 6,608,263 | ||
Money Market Funds – 2.5% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) | 1,084,281 | $ 1,084,281 | ||
Total Investment Companies (Identified Cost, $7,877,697) | $ 7,692,544 | |||
Other Assets, Less Liabilities – (0.9)% | (387,360) | |||
Net Assets – 100.0% | $ 43,855,931 |
(a) | Non-income producing security. | |||
(d) | In default. | |||
(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 $7,692,544 and $36,550,747, respectively. | |||
(i) | Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security. | |||
(n) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $13,456,941, representing 30.7% of net assets. | |||
(p) | Payment-in-kind (PIK) security for which interest income may be received in additional securities and/or cash. | |||
(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: | |
AAC | Ambac Assurance Corp. |
AGM | Assured Guaranty Municipal |
CDO | Collateralized Debt Obligation |
CLO | Collateralized Loan Obligation |
CMT | Constant Maturity Treasury |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
LIBOR | London Interbank Offered Rate |
NPFG | National Public Finance Guarantee Corp. |
REIT | Real Estate Investment Trust |
SOFR | Secured Overnight Financing Rate |
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: | |
CLP | Chilean Peso |
EUR | Euro |
IDR | Indonesian Rupiah |
INR | Indian Rupee |
MYR | Malaysian Ringgit |
UYU | Uruguayan Peso |
ZAR | South African Rand |
Derivative Contracts at 6/30/21 | ||||||
Forward Foreign Currency Exchange Contracts | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives | ||||||
IDR | 37,483,691 | USD | 2,556 | Barclays Bank PLC | 9/22/2021 | $ 13 |
USD | 444,592 | EUR | 370,272 | JPMorgan Chase Bank N.A. | 7/16/2021 | 5,412 |
$ 5,425 | ||||||
Liability Derivatives | ||||||
INR | 8,247,000 | USD | 112,280 | JPMorgan Chase Bank N.A. | 7/26/2021 | $(1,604) |
MYR | 473,000 | USD | 114,570 | Barclays Bank PLC | 9/13/2021 | (972) |
USD | 109,892 | ZAR | 1,608,571 | HSBC Bank | 7/16/2021 | (2,558) |
$(5,134) |
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Ultra Bond | Long | USD | 15 | $2,890,313 | September – 2021 | $111,506 |
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 2 yr | Long | USD | 18 | $3,965,765 | September – 2021 | $(7,045) |
U.S. Treasury Ultra Note 10 yr | Short | USD | 10 | 1,472,031 | September – 2021 | (19,851) |
$(26,896) |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $35,753,058) | $36,550,747 |
Investments in affiliated issuers, at value (identified cost, $7,877,697) | 7,692,544 |
Deposits with brokers for | |
Futures contracts | 87,680 |
Receivables for | |
Forward foreign currency exchange contracts | 5,425 |
Net daily variation margin on open futures contracts | 12,496 |
Investments sold | 82,273 |
Fund shares sold | 5,774 |
Interest | 207,656 |
Receivable from investment adviser | 3,910 |
Other assets | 447 |
Total assets | $44,648,952 |
Liabilities | |
Payables for | |
Forward foreign currency exchange contracts | $5,134 |
Investments purchased | 282,302 |
Fund shares reacquired | 438,795 |
Payable to affiliates | |
Administrative services fee | 96 |
Shareholder servicing costs | 56 |
Distribution and/or service fees | 80 |
Accrued expenses and other liabilities | 66,558 |
Total liabilities | $793,021 |
Net assets | $43,855,931 |
Net assets consist of | |
Paid-in capital | $40,185,093 |
Total distributable earnings (loss) | 3,670,838 |
Net assets | $43,855,931 |
Shares of beneficial interest outstanding | 4,170,482 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $38,001,591 | 3,609,219 | $10.53 |
Service Class | 5,854,340 | 561,263 | 10.43 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Interest | $513,020 |
Dividends from affiliated issuers | 185,443 |
Other | 415 |
Income on securities loaned | 23 |
Foreign taxes withheld | (117) |
Total investment income | $698,784 |
Expenses | |
Management fee | $110,901 |
Distribution and/or service fees | 7,179 |
Shareholder servicing costs | 5,575 |
Administrative services fee | 8,679 |
Independent Trustees' compensation | 1,509 |
Custodian fee | 5,154 |
Shareholder communications | 5,585 |
Audit and tax fees | 40,716 |
Legal fees | 165 |
Miscellaneous | 17,034 |
Total expenses | $202,497 |
Reduction of expenses by investment adviser | (28,206) |
Net expenses | $174,291 |
Net investment income (loss) | $524,493 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $420,007 |
Affiliated issuers | (297,939) |
Futures contracts | (206,347) |
Forward foreign currency exchange contracts | (31,266) |
Foreign currency | 568 |
Net realized gain (loss) | $(114,977) |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(770,157) |
Affiliated issuers | 291,258 |
Futures contracts | 80,647 |
Forward foreign currency exchange contracts | 35,019 |
Translation of assets and liabilities in foreign currencies | (9,199) |
Net unrealized gain (loss) | $(372,432) |
Net realized and unrealized gain (loss) | $(487,409) |
Change in net assets from operations | $37,084 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/21 (unaudited) | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $524,493 | $1,246,108 |
Net realized gain (loss) | (114,977) | 1,844,524 |
Net unrealized gain (loss) | (372,432) | 832,785 |
Change in net assets from operations | $37,084 | $3,923,417 |
Total distributions to shareholders | $— | $(1,603,085) |
Change in net assets from fund share transactions | $(3,444,573) | $(97,382) |
Total change in net assets | $(3,407,489) | $2,222,950 |
Net assets | ||
At beginning of period | 47,263,420 | 45,040,470 |
At end of period | $43,855,931 | $47,263,420 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $10.51 | $9.98 | $9.26 | $9.84 | $9.71 | $9.25 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.12 | $0.29 | $0.33 | $0.33 | $0.34 | $0.40(c) |
Net realized and unrealized gain (loss) | (0.10) | 0.63 | 0.74 | (0.52) | 0.26 | 0.37 |
Total from investment operations | $0.02 | $0.92 | $1.07 | $(0.19) | $0.60 | $0.77 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.39) | $(0.35) | $(0.39) | $(0.47) | $(0.31) |
Net asset value, end of period (x) | $10.53 | $10.51 | $9.98 | $9.26 | $9.84 | $9.71 |
Total return (%) (k)(r)(s)(x) | 0.19(n) | 9.35 | 11.60 | (1.99) | 6.24 | 8.24(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f)(h) | 0.88(a) | 0.89 | 1.01 | 1.03 | 1.02 | 0.89(c) |
Expenses after expense reductions (f)(h) | 0.75(a) | 0.75 | 0.78 | 0.80 | 0.80 | 0.71(c) |
Net investment income (loss) | 2.40(a) | 2.83 | 3.32 | 3.42 | 3.39 | 4.09(c) |
Portfolio turnover | 39(n) | 112 | 104 | 59 | 72 | 21 |
Net assets at end of period (000 omitted) | $38,002 | $41,438 | $38,670 | $38,111 | $42,409 | $44,191 |
Service Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $10.43 | $9.90 | $9.19 | $9.75 | $9.63 | $9.17 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.11 | $0.26 | $0.30 | $0.30 | $0.31 | $0.37(c) |
Net realized and unrealized gain (loss) | (0.11) | 0.63 | 0.74 | (0.50) | 0.25 | 0.37 |
Total from investment operations | $0.00(w) | $0.89 | $1.04 | $(0.20) | $0.56 | $0.74 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.36) | $(0.33) | $(0.36) | $(0.44) | $(0.28) |
Net asset value, end of period (x) | $10.43 | $10.43 | $9.90 | $9.19 | $9.75 | $9.63 |
Total return (%) (k)(r)(s)(x) | 0.00(n) | 9.11 | 11.29 | (2.11) | 5.88 | 8.00(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f)(h) | 1.13(a) | 1.14 | 1.26 | 1.28 | 1.27 | 1.14(c) |
Expenses after expense reductions (f)(h) | 1.00(a) | 1.00 | 1.03 | 1.05 | 1.05 | 0.97(c) |
Net investment income (loss) | 2.15(a) | 2.59 | 3.07 | 3.17 | 3.16 | 3.83(c) |
Portfolio turnover | 39(n) | 112 | 104 | 59 | 72 | 21 |
Net assets at end of period (000 omitted) | $5,854 | $5,825 | $6,371 | $6,614 | $7,287 | $8,776 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(h) | In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying affiliated funds in which the fund invests. Accordingly, the expense ratio for the fund reflects only those fees and expenses borne directly by the fund. Because the underlying affiliated funds have varied expense and fee levels and the fund may own different proportions of the underlying affiliated funds at different times, the amount of fees and expenses incurred indirectly by the fund will vary. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | $— | $8,228,603 | $— | $8,228,603 |
Non - U.S. Sovereign Debt | — | 2,451,681 | — | 2,451,681 |
Municipal Bonds | — | 1,316,535 | — | 1,316,535 |
U.S. Corporate Bonds | — | 7,951,651 | — | 7,951,651 |
Residential Mortgage-Backed Securities | — | 336,050 | — | 336,050 |
Commercial Mortgage-Backed Securities | — | 3,645,591 | — | 3,645,591 |
Asset-Backed Securities (including CDOs) | — | 5,653,618 | — | 5,653,618 |
Foreign Bonds | — | 6,967,018 | — | 6,967,018 |
Mutual Funds | 7,692,544 | — | — | 7,692,544 |
Total | $7,692,544 | $36,550,747 | $— | $44,243,291 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $111,506 | $— | $— | $111,506 |
Futures Contracts – Liabilities | (26,896) | — | — | (26,896) |
Forward Foreign Currency Exchange Contracts – Assets | — | 5,425 | — | 5,425 |
Forward Foreign Currency Exchange Contracts – Liabilities | — | (5,134) | — | (5,134) |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Interest Rate Futures | $111,506 | $(26,896) |
Foreign Exchange | Forward Foreign Currency Exchange Contracts | 5,425 | (5,134) |
Total | $116,931 | $(32,030) |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $(206,347) | $— |
Foreign Exchange | — | (31,266) |
Total | $(206,347) | $(31,266) |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $80,647 | $— |
Foreign Exchange | — | 35,019 |
Total | $80,647 | $35,019 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $1,603,085 |
As of 6/30/21 | |
Cost of investments | $44,015,079 |
Gross appreciation | 1,276,961 |
Gross depreciation | (1,048,749) |
Net unrealized appreciation (depreciation) | $228,212 |
As of 12/31/20 | |
Undistributed ordinary income | 2,281,906 |
Undistributed long-term capital gain | 785,796 |
Other temporary differences | 9,100 |
Net unrealized appreciation (depreciation) | 556,952 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $1,407,184 | |
Service Class | — | 195,901 | |
Total | $— | $1,603,085 |
Up to $1 billion | 0.50% |
In excess of $1 billion | 0.45% |
Purchases | Sales | |
U.S. Government securities | $8,472,962 | $2,518,301 |
Non-U.S. Government securities | 8,276,598 | 15,002,965 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 123,847 | $1,287,349 | 593,426 | $6,061,887 | |
Service Class | 55,121 | 567,306 | 75,762 | 764,983 | |
178,968 | $1,854,655 | 669,188 | $6,826,870 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 138,366 | $1,407,184 | |
Service Class | — | — | 19,396 | 195,901 | |
— | $— | 157,762 | $1,603,085 | ||
Shares reacquired | |||||
Initial Class | (455,847) | $(4,760,031) | (665,666) | $(6,694,271) | |
Service Class | (52,414) | (539,197) | (180,269) | (1,833,066) | |
(508,261) | $(5,299,228) | (845,935) | $(8,527,337) | ||
Net change | |||||
Initial Class | (332,000) | $(3,472,682) | 66,126 | $774,800 | |
Service Class | 2,707 | 28,109 | (85,111) | (872,182) | |
(329,293) | $(3,444,573) | (18,985) | $(97,382) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS High Yield Pooled Portfolio | $6,184,285 | $1,295,879 | $865,220 | $(297,939) | $291,258 | $6,608,263 |
MFS Institutional Money Market Portfolio | 517,217 | 20,511,108 | 19,944,044 | — | — | 1,084,281 |
$6,701,502 | $21,806,987 | $20,809,264 | $(297,939) | $291,258 | $7,692,544 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS High Yield Pooled Portfolio | $185,127 | $— |
MFS Institutional Money Market Portfolio | 316 | — |
$185,443 | $— |
1 | |
2 | |
3 | |
4 | |
6 | |
7 | |
8 | |
9 | |
11 | |
18 | |
19 | |
19 | |
19 | |
19 |
Microsoft Corp. | 10.4% |
Amazon.com, Inc. | 9.3% |
Alphabet, Inc., “A” | 5.6% |
Mastercard, Inc., “A” | 4.2% |
Adobe Systems, Inc. | 3.9% |
Facebook, Inc., “A” | 3.9% |
PayPal Holdings, Inc. | 3.7% |
Booking Holdings, Inc. | 2.9% |
NVIDIA Corp. | 2.5% |
Global Payments, Inc. | 2.5% |
Computer Software | 23.9% |
Internet | 14.6% |
Specialty Stores | 12.1% |
Business Services | 11.5% |
Computer Software - Systems | 10.2% |
January 1, 2021 through June 30, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/21 | Ending Account Value 6/30/21 | Expenses Paid During Period (p) 1/01/21-6/30/21 | |
Initial Class | Actual | 0.87% | $1,000.00 | $1,109.33 | $4.55 |
Hypothetical (h) | 0.87% | $1,000.00 | $1,020.48 | $4.36 | |
Service Class | Actual | 1.12% | $1,000.00 | $1,108.06 | $5.85 |
Hypothetical (h) | 1.12% | $1,000.00 | $1,019.24 | $5.61 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 98.1% | ||||
Brokerage & Asset Managers – 0.9% | ||||
Charles Schwab Corp. | 7,276 | $ 529,765 | ||
Tradeweb Markets, Inc. | 7,498 | 634,031 | ||
$1,163,796 | ||||
Business Services – 11.5% | ||||
Clarivate PLC (a) | 43,064 | $ 1,185,552 | ||
Endava PLC, ADR (a) | 12,364 | 1,401,830 | ||
FleetCor Technologies, Inc. (a) | 3,164 | 810,174 | ||
Global Payments, Inc. | 17,223 | 3,230,003 | ||
Nuvei Corp. (a) | 12,504 | 1,031,580 | ||
Paya, Inc. (a) | 60,623 | 668,066 | ||
PayPal Holdings, Inc. (a) | 16,217 | 4,726,931 | ||
TaskUs, Inc., “A” (a) | 8,887 | 304,291 | ||
Verisk Analytics, Inc., “A” | 1,775 | 310,128 | ||
WEX, Inc. (a) | 5,678 | 1,100,964 | ||
$14,769,519 | ||||
Cable TV – 0.2% | ||||
Charter Communications, Inc., “A” (a) | 361 | $ 260,443 | ||
Computer Software – 23.9% | ||||
Adobe Systems, Inc. (a) | 8,689 | $ 5,088,626 | ||
AppLovin Corp. (a) | 7,341 | 551,823 | ||
Asana, Inc. (a) | 10,582 | 656,401 | ||
Atlassian Corp. PLC, “A” (a) | 3,343 | 858,683 | ||
Autodesk, Inc. (a) | 5,630 | 1,643,397 | ||
Bentley Systems, Inc., “B” | 3,288 | 212,997 | ||
Black Knight, Inc. (a) | 10,112 | 788,534 | ||
DoubleVerify Holdings, Inc. (a) | 16,113 | 682,224 | ||
Eventbrite, Inc. (a) | 23,171 | 440,249 | ||
Microsoft Corp. (s) | 49,535 | 13,419,031 | ||
Ping Identity Holding Corp. (a) | 10,677 | 244,503 | ||
Procore Technologies, Inc. (a) | 1,842 | 174,898 | ||
Qualtrics International, “A” (a) | 7,428 | 284,121 | ||
RAKUS Co. Ltd. | 3,100 | 84,689 | ||
RingCentral, Inc. (a) | 5,219 | 1,516,537 | ||
salesforce.com, inc. (a) | 10,955 | 2,675,978 | ||
SentinelOne, Inc., “A” (a) | 9,005 | 382,713 | ||
Topicus.com, Inc. (a) | 3,751 | 272,489 | ||
Zendesk, Inc. (a) | 5,862 | 846,121 | ||
$30,824,014 | ||||
Computer Software - Systems – 10.2% | ||||
Apple, Inc. | 18,058 | $ 2,473,224 | ||
Constellation Software, Inc. | 757 | 1,146,498 | ||
Descartes Systems Group, Inc. (a) | 11,845 | 819,193 | ||
EPAM Systems, Inc. (a) | 2,612 | 1,334,628 | ||
HubSpot, Inc. (a) | 2,760 | 1,608,307 | ||
Q2 Holdings, Inc. (a) | 6,724 | 689,748 | ||
ServiceNow, Inc. (a) | 4,317 | 2,372,407 | ||
Square, Inc., “A” (a) | 3,762 | 917,176 | ||
TransUnion | 8,609 | 945,354 | ||
Wix.com Ltd. (a) | 2,990 | 867,937 | ||
$13,174,472 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Consumer Services – 4.6% | ||||
Booking Holdings, Inc. (a) | 1,686 | $ 3,689,120 | ||
Lyft, Inc. (a) | 15,007 | 907,623 | ||
Uber Technologies, Inc. (a) | 26,554 | 1,330,887 | ||
$5,927,630 | ||||
Electronics – 10.1% | ||||
Advanced Micro Devices (a) | 23,764 | $ 2,232,151 | ||
KLA Corp. | 5,136 | 1,665,143 | ||
Lam Research Corp. | 3,146 | 2,047,102 | ||
Marvell Technology, Inc. | 22,784 | 1,328,991 | ||
Micron Technology, Inc. (a) | 17,634 | 1,498,537 | ||
NVIDIA Corp. | 4,103 | 3,282,810 | ||
Skyworks Solutions, Inc. | 4,693 | 899,883 | ||
$12,954,617 | ||||
Internet – 14.6% | ||||
Alphabet, Inc., “A” (a)(s) | 2,963 | $ 7,235,024 | ||
Facebook, Inc., “A” (a) | 14,619 | 5,083,172 | ||
Match Group, Inc. (a) | 6,882 | 1,109,723 | ||
Mercadolibre, Inc. (a) | 558 | 869,247 | ||
NetEase.com, Inc., ADR | 10,658 | 1,228,334 | ||
Pinterest, Inc. (a) | 14,125 | 1,115,169 | ||
Sea Ltd., ADR (a) | 3,097 | 850,436 | ||
Tencent Holdings Ltd. | 18,400 | 1,383,975 | ||
$18,875,080 | ||||
Leisure & Toys – 1.9% | ||||
Activision Blizzard, Inc. | 14,681 | $ 1,401,155 | ||
Take-Two Interactive Software, Inc. (a) | 6,042 | 1,069,555 | ||
$2,470,710 | ||||
Machinery & Tools – 0.1% | ||||
Xometry, Inc., “A” (a) | 1,163 | $ 101,635 | ||
Medical & Health Technology & Services – 0.6% | ||||
Guardant Health, Inc. (a) | 3,619 | $ 449,443 | ||
LifeStance Health Group, Inc. (a) | 12,837 | 357,639 | ||
$807,082 | ||||
Medical Equipment – 0.8% | ||||
Bio-Techne Corp. | 1,527 | $ 687,547 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 9,404 | 392,429 | ||
$1,079,976 | ||||
Other Banks & Diversified Financials – 6.6% | ||||
LegalZoom.com, Inc. (a) | 2,551 | $ 96,555 | ||
Mastercard, Inc., “A” | 14,704 | 5,368,284 | ||
Visa, Inc., “A” | 13,107 | 3,064,679 | ||
$8,529,518 | ||||
Specialty Stores – 12.1% | ||||
ACV Auctions, Inc. (a) | 5,245 | $ 134,429 | ||
Amazon.com, Inc. (a)(s) | 3,497 | 12,030,239 | ||
Chewy, Inc., “A” (a) | 9,536 | 760,115 | ||
Farfetch Ltd., “A” (a) | 36,865 | 1,856,521 | ||
Pinduoduo, Inc., ADR (a) | 3,538 | 449,397 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Specialty Stores – continued | ||||
ThredUp, Inc. (a) | 11,118 | $ 323,311 | ||
$15,554,012 | ||||
Total Common Stocks (Identified Cost, $69,826,748) | $126,492,504 | |||
Investment Companies (h) – 1.5% | ||||
Money Market Funds – 1.5% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $1,970,148) | 1,970,148 | $ 1,970,148 | ||
Other Assets, Less Liabilities – 0.4% | 515,850 | |||
Net Assets – 100.0% | $128,978,502 |
(a) | Non-income producing security. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $1,970,148 and $126,492,504, respectively. | |||
(s) | Security or a portion of the security was pledged to cover collateral requirements for securities sold short. At June 30, 2021, the fund had no short sales outstanding. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $69,826,748) | $126,492,504 |
Investments in affiliated issuers, at value (identified cost, $1,970,148) | 1,970,148 |
Deposits with brokers for | |
Securities sold short | 4,584 |
Receivables for | |
Investments sold | 194,586 |
Fund shares sold | 858,124 |
Dividends | 5,250 |
Other assets | 721 |
Total assets | $129,525,917 |
Liabilities | |
Payables for | |
Investments purchased | $437,775 |
Fund shares reacquired | 63,109 |
Payable to affiliates | |
Investment adviser | 5,209 |
Administrative services fee | 152 |
Shareholder servicing costs | 56 |
Distribution and/or service fees | 1,341 |
Accrued expenses and other liabilities | 39,773 |
Total liabilities | $547,415 |
Net assets | $128,978,502 |
Net assets consist of | |
Paid-in capital | $60,693,017 |
Total distributable earnings (loss) | 68,285,485 |
Net assets | $128,978,502 |
Shares of beneficial interest outstanding | 3,927,851 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $30,945,430 | 895,935 | $34.54 |
Service Class | 98,033,072 | 3,031,916 | 32.33 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $138,830 |
Other | 2,928 |
Dividends from affiliated issuers | 644 |
Foreign taxes withheld | (488) |
Total investment income | $141,914 |
Expenses | |
Management fee | $420,585 |
Distribution and/or service fees | 103,123 |
Shareholder servicing costs | 4,995 |
Administrative services fee | 12,671 |
Independent Trustees' compensation | 1,860 |
Custodian fee | 5,593 |
Shareholder communications | 2,590 |
Audit and tax fees | 28,238 |
Legal fees | 358 |
Dividend and interest expense on securities sold short | 5,269 |
Interest expense and fees | 205 |
Miscellaneous | 14,734 |
Total expenses | $600,221 |
Reduction of expenses by investment adviser | (6,712) |
Net expenses | $593,509 |
Net investment income (loss) | $(451,595) |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $6,113,403 |
Written options | 68,052 |
Securities sold short | (595,062) |
Foreign currency | (630) |
Net realized gain (loss) | $5,585,763 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $7,095,319 |
Translation of assets and liabilities in foreign currencies | (2) |
Net unrealized gain (loss) | $7,095,317 |
Net realized and unrealized gain (loss) | $12,681,080 |
Change in net assets from operations | $12,229,485 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/21 (unaudited) | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $(451,595) | $(580,483) |
Net realized gain (loss) | 5,585,763 | 7,550,353 |
Net unrealized gain (loss) | 7,095,317 | 24,235,909 |
Change in net assets from operations | $12,229,485 | $31,205,779 |
Change in net assets from fund share transactions | $12,437,535 | $4,958,901 |
Total change in net assets | $24,667,020 | $36,164,680 |
Net assets | ||
At beginning of period | 104,311,482 | 68,146,802 |
At end of period | $128,978,502 | $104,311,482 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $31.10 | $21.18 | $17.34 | $17.96 | $13.19 | $12.45 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.10) | $(0.14) | $(0.09) | $(0.07) | $(0.05) | $(0.01)(c) |
Net realized and unrealized gain (loss) | 3.54 | 10.06 | 6.16 | 0.58 | 5.16 | 1.10 |
Total from investment operations | $3.44 | $9.92 | $6.07 | $0.51 | $5.11 | $1.09 |
Less distributions declared to shareholders | ||||||
From net realized gain | $— | $— | $(2.23) | $(1.13) | $(0.34) | $(0.35) |
Net asset value, end of period (x) | $34.54 | $31.10 | $21.18 | $17.34 | $17.96 | $13.19 |
Total return (%) (k)(r)(s)(x) | 11.06(n) | 46.84 | 36.16 | 1.73 | 39.00 | 8.69(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.89(a) | 0.94 | 0.97 | 0.94 | 0.88 | 0.85(c) |
Expenses after expense reductions (f) | 0.87(a) | 0.93 | 0.96 | 0.93 | 0.88 | 0.85(c) |
Net investment income (loss) | (0.62)(a) | (0.55) | (0.44) | (0.38) | (0.29) | (0.10)(c) |
Portfolio turnover | 25(n) | 57 | 33 | 39 | 31 | 36 |
Net assets at end of period (000 omitted) | $30,945 | $28,768 | $19,336 | $17,056 | $27,659 | $15,195 |
Supplemental Ratios (%): | ||||||
Ratios of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees (f) | 0.86(a) | 0.91 | 0.93 | 0.85 | 0.85 | 0.82(c) |
Service Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $29.15 | $19.91 | $16.44 | $17.11 | $12.61 | $11.95 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.13) | $(0.19) | $(0.13) | $(0.12) | $(0.08) | $(0.04)(c) |
Net realized and unrealized gain (loss) | 3.31 | 9.43 | 5.83 | 0.58 | 4.92 | 1.05 |
Total from investment operations | $3.18 | $9.24 | $5.70 | $0.46 | $4.84 | $1.01 |
Less distributions declared to shareholders | ||||||
From net realized gain | $— | $— | $(2.23) | $(1.13) | $(0.34) | $(0.35) |
Net asset value, end of period (x) | $32.33 | $29.15 | $19.91 | $16.44 | $17.11 | $12.61 |
Total return (%) (k)(r)(s)(x) | 10.91(n) | 46.41 | 35.88 | 1.52 | 38.65 | 8.39(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.14(a) | 1.19 | 1.22 | 1.16 | 1.14 | 1.10(c) |
Expenses after expense reductions (f) | 1.12(a) | 1.18 | 1.21 | 1.15 | 1.13 | 1.10(c) |
Net investment income (loss) | (0.87)(a) | (0.81) | (0.69) | (0.61) | (0.53) | (0.35)(c) |
Portfolio turnover | 25(n) | 57 | 33 | 39 | 31 | 36 |
Net assets at end of period (000 omitted) | $98,033 | $75,544 | $48,811 | $39,272 | $203,610 | $126,561 |
Supplemental Ratios (%): | ||||||
Ratios of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees (f) | 1.11(a) | 1.16 | 1.18 | 1.07 | 1.10 | 1.06(c) |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(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. |
(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 | $126,492,504 | $— | $— | $126,492,504 |
Mutual Funds | 1,970,148 | — | — | 1,970,148 |
Total | $128,462,652 | $— | $— | $128,462,652 |
Risk | Written Options |
Equity | $68,052 |
As of 6/30/21 | |
Cost of investments | $72,290,560 |
Gross appreciation | 56,881,530 |
Gross depreciation | (709,438) |
Net unrealized appreciation (depreciation) | $56,172,092 |
As of 12/31/20 | |
Undistributed ordinary income | 1,120,445 |
Undistributed long-term capital gain | 5,858,782 |
Net unrealized appreciation (depreciation) | 49,076,773 |
Up to $1 billion | 0.75% |
In excess of $1 billion | 0.70% |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 81,514 | $2,602,932 | 215,421 | $5,537,761 | |
Service Class | 883,774 | 26,619,773 | 1,213,821 | 29,404,672 | |
965,288 | $29,222,705 | 1,429,242 | $34,942,433 | ||
Shares reacquired | |||||
Initial Class | (110,552) | $(3,577,838) | (203,201) | $(5,171,507) | |
Service Class | (443,356) | (13,207,332) | (1,074,446) | (24,812,025) | |
(553,908) | $(16,785,170) | (1,277,647) | $(29,983,532) | ||
Net change | |||||
Initial Class | (29,038) | $(974,906) | 12,220 | $366,254 | |
Service Class | 440,418 | 13,412,441 | 139,375 | 4,592,647 | |
411,380 | $12,437,535 | 151,595 | $4,958,901 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $3,257,002 | $25,181,135 | $26,467,989 | $— | $— | $1,970,148 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $644 | $— |
Money Market Portfolio
1 | |
2 | |
3 | |
4 | |
5 | |
6 | |
7 | |
8 | |
10 | |
14 | |
14 | |
14 | |
14 |
A-1+ | 54.9% |
A-1 | 45.1% |
Other Assets Less Liabilities (o) | (0.0)% |
0 - 7 days | 35.2% |
8 - 29 days | 29.6% |
30 - 59 days | 22.7% |
60 - 89 days | 12.5% |
90 - 365 days | 0.0% |
Other Assets Less Liabilities (o) | (0.0)% |
(a) | Ratings are assigned to portfolio securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. Ratings are shown in the S&P scale. All ratings are subject to change. The fund is not rated by these agencies. |
(o) | Less than 0.1%. |
(u) | For purposes of this presentation, accrued interest, where applicable, is included. |
January 1, 2021 through June 30, 2021
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/21 | Ending Account Value 6/30/21 | Expenses Paid During Period (p) 1/01/21-6/30/21 | |
Initial Class | Actual | 0.03% | $1,000.00 | $1,000.00 | $0.15 |
Hypothetical (h) | 0.03% | $1,000.00 | $1,024.65 | $0.15 | |
Service Class | Actual | 0.03% | $1,000.00 | $1,000.00 | $0.15 |
Hypothetical (h) | 0.03% | $1,000.00 | $1,024.65 | $0.15 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
U.S. Government Agencies and Equivalents (y) – 78.5% | ||||
Fannie Mae, 0.001%, due 7/07/2021 | $ 5,279,000 | $ 5,278,999 | ||
Fannie Mae, 0.005%, due 7/07/2021 | 1,559,000 | 1,558,999 | ||
Fannie Mae, 0.005%, due 8/18/2021 | 2,746,000 | 2,745,982 | ||
Fannie Mae, 0.001%, due 9/01/2021 | 6,617,000 | 6,616,989 | ||
Fannie Mae, 0.001%, due 9/08/2021 | 5,674,000 | 5,673,989 | ||
Fannie Mae, 0.007%, due 9/15/2021 | 2,568,000 | 2,567,962 | ||
Federal Farm Credit Bank, 0.001%, due 7/02/2021 | 1,914,000 | 1,914,000 | ||
Federal Farm Credit Bank, 0.01%, due 7/02/2021 | 1,371,000 | 1,371,000 | ||
Federal Farm Credit Bank, 0.01%, due 7/09/2021 | 1,643,000 | 1,642,996 | ||
Federal Farm Credit Bank, 0.001%, due 7/13/2021 | 548,000 | 548,000 | ||
Federal Farm Credit Bank, 0.01%, due 7/15/2021 | 1,719,000 | 1,718,993 | ||
Federal Farm Credit Bank, 0.01%, due 7/21/2021 | 853,000 | 852,995 | ||
Federal Farm Credit Bank, 0.03%, due 7/26/2021 | 2,482,000 | 2,481,948 | ||
Federal Farm Credit Bank, 0.01%, due 8/06/2021 | 1,369,000 | 1,368,986 | ||
Federal Farm Credit Bank, 0.02%, due 8/06/2021 | 1,926,000 | 1,925,961 | ||
Federal Home Loan Bank, 0.01%, due 7/14/2021 | 2,600,000 | 2,599,991 | ||
Federal Home Loan Bank, 0.02%, due 7/21/2021 | 3,852,000 | 3,851,957 | ||
Federal Home Loan Bank, 0.01%, due 7/30/2021 | 1,377,000 | 1,376,989 | ||
Federal Home Loan Bank, 0.01%, due 8/04/2021 | 4,500,000 | 4,499,958 | ||
Federal Home Loan Bank, 0.02%, due 9/01/2021 | 2,717,000 | 2,716,906 | ||
Federal Home Loan Bank, 0.02%, due 9/03/2021 | 9,682,000 | 9,681,656 | ||
U.S. Treasury Bill, 0.015%, due 7/01/2021 | 6,881,000 | 6,881,000 | ||
U.S. Treasury Bill, 0.006%, due 7/06/2021 | 11,579,000 | 11,578,991 | ||
U.S. Treasury Bill, 0.01%, due 7/06/2021 | 3,935,000 | 3,934,995 | ||
U.S. Treasury Bill, 0.003%, due 7/08/2021 | 3,830,000 | 3,829,998 | ||
U.S. Treasury Bill, 0.008%, due 7/13/2021 | 2,650,000 | 2,649,993 |
Issuer | Shares/Par | Value ($) | ||
U.S. Government Agencies and Equivalents (y) – continued | ||||
U.S. Treasury Bill, 0.035%, due 7/13/2021 | $ 5,733,000 | $ 5,732,933 | ||
U.S. Treasury Bill, 0.005%, due 7/15/2021 | 19,674,000 | 19,673,962 | ||
U.S. Treasury Bill, 0.015%, due 7/15/2021 | 8,000,000 | 7,999,953 | ||
U.S. Treasury Bill, 0.003%, due 7/20/2021 | 2,306,000 | 2,305,997 | ||
U.S. Treasury Bill, 0.005%, due 7/20/2021 | 3,580,000 | 3,579,991 | ||
U.S. Treasury Bill, 0.005%, due 7/22/2021 | 13,696,000 | 13,695,960 | ||
U.S. Treasury Bill, 0.015%, due 7/22/2021 | 1,929,000 | 1,928,983 | ||
U.S. Treasury Bill, 0.03%, due 7/27/2021 | 6,250,000 | 6,249,865 | ||
U.S. Treasury Bill, 0.003%, due 8/03/2021 | 8,919,000 | 8,918,980 | ||
U.S. Treasury Bill, 0.005%, due 8/10/2021 | 19,723,000 | 19,722,890 | ||
U.S. Treasury Bill, 0.005%, due 8/17/2021 | 3,798,000 | 3,797,975 | ||
U.S. Treasury Bill, 0.005%, due 8/19/2021 | 9,716,000 | 9,715,934 | ||
U.S. Treasury Bill, 0.035%, due 8/24/2021 | 7,812,000 | 7,811,590 | ||
U.S. Treasury Bill, 0.018%, due 9/02/2021 | 2,817,000 | 2,816,914 | ||
U.S. Treasury Bill, 0.015%, due 9/09/2021 | 2,358,000 | 2,357,931 | ||
U.S. Treasury Bill, 0.035%, due 9/14/2021 | 1,051,000 | 1,050,923 | ||
Total U.S. Government Agencies and Equivalents, at Amortized Cost and Value | $ 209,231,014 | |||
Repurchase Agreements – 21.5% | ||||
Bank of America Corp. Repurchase Agreement, 0.05%, dated 6/30/2021, due 7/01/2021, total to be received $28,656,040 (secured by U.S. Treasury obligations and Federal Agency obligations valued at $29,341,320) | $28,656,000 | $ 28,656,000 | ||
JPMorgan Chase & Co. Repurchase Agreement, 0.05%, dated 6/30/2021, due 7/01/2021, total to be received $28,726,040 (secured by U.S. Treasury obligations and Federal Agency obligations valued at $29,300,604) | 28,726,000 | 28,726,000 | ||
Total Repurchase Agreements, at Cost and Value | $ 57,382,000 | |||
Other Assets, Less Liabilities – (0.0)% | (85,680) | |||
Net Assets – 100.0% | $ 266,527,334 |
(y) | The rate shown represents an annualized yield at time of purchase. |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at cost and value | $209,231,014 |
Investments in unaffiliated repurchase agreements, at cost and value | 57,382,000 |
Cash | 379 |
Receivables for | |
Fund shares sold | 652,476 |
Interest | 80 |
Receivable from investment adviser and distributor | 21,515 |
Other assets | 1,164 |
Total assets | $267,288,628 |
Liabilities | |
Payables for | |
Fund shares reacquired | $705,978 |
Payable to affiliates | |
Administrative services fee | 251 |
Shareholder servicing costs | 30 |
Accrued expenses and other liabilities | 55,035 |
Total liabilities | $761,294 |
Net assets | $266,527,334 |
Net assets consist of | |
Paid-in capital | $266,527,019 |
Total distributable earnings (loss) | 315 |
Net assets | $266,527,334 |
Shares of beneficial interest outstanding | 266,747,065 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $155,149,967 | 155,278,327 | $1.00 |
Service Class | 111,377,367 | 111,468,738 | 1.00 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Interest | $44,746 |
Other | 1,398 |
Total investment income | $46,144 |
Expenses | |
Management fee | $531,216 |
Distribution and/or service fees | 138,761 |
Shareholder servicing costs | 3,006 |
Administrative services fee | 22,490 |
Independent Trustees' compensation | 2,997 |
Custodian fee | 6,301 |
Shareholder communications | 9,324 |
Audit and tax fees | 18,808 |
Legal fees | 1,057 |
Miscellaneous | 15,572 |
Total expenses | $749,532 |
Reduction of expenses by investment adviser and distributor | (703,388) |
Net expenses | $46,144 |
Net investment income (loss) | $0 |
Change in net assets from operations | $0 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/21 (unaudited) | 12/31/20 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $0 | $569,717 |
Net realized gain (loss) | 0 | 300 |
Change in net assets from operations | $0 | $570,017 |
Total distributions to shareholders | $— | $(569,717) |
Change in net assets from fund share transactions | $(4,394,628) | $6,689,361 |
Total change in net assets | $(4,394,628) | $6,689,661 |
Net assets | ||
At beginning of period | 270,921,962 | 264,232,301 |
At end of period | $266,527,334 | $270,921,962 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.00 | $0.00(w) | $0.02 | $0.01 | $0.00(w) | $0.00(c)(w) |
Net realized and unrealized gain (loss) | 0.00 | 0.00(w) | 0.00(w) | — | 0.00(w) | 0.00(w) |
Total from investment operations | $0.00 | $0.00(w) | $0.02 | $0.01 | $0.00(w) | $0.00(w) |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.00)(w) | $(0.02) | $(0.01) | $(0.00)(w) | $(0.00)(w) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return (%) (k)(r) | 0.00(n) | 0.22 | 1.63 | 1.26 | 0.30 | 0.01(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.46(a) | 0.52 | 0.56 | 0.56 | 0.56 | 0.53(c) |
Expenses after expense reductions (f) | 0.03(a) | 0.24 | 0.55 | 0.55 | 0.54 | 0.30(c) |
Net investment income (loss) | 0.00(a) | 0.20 | 1.63 | 1.25 | 0.29 | 0.01(c) |
Net assets at end of period (000 omitted) | $155,150 | $155,937 | $149,689 | $160,304 | $168,107 | $179,458 |
Service Class | Six months ended | Year ended | ||||
6/30/21 (unaudited) | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |
Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.00 | $0.00(w) | $0.02 | $0.01 | $0.00(w) | $0.00(c)(w) |
Net realized and unrealized gain (loss) | 0.00 | 0.00(w) | 0.00(w) | — | 0.00(w) | 0.00(w) |
Total from investment operations | $0.00 | $0.00(w) | $0.02 | $0.01 | $0.00(w) | $0.00(w) |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.00)(w) | $(0.02) | $(0.01) | $(0.00)(w) | $(0.00)(w) |
Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
Total return (%) (k)(r) | 0.00(n) | 0.22 | 1.63 | 1.26 | 0.29 | 0.01(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.71(a) | 0.77 | 0.81 | 0.81 | 0.81 | 0.79(c) |
Expenses after expense reductions (f) | 0.03(a) | 0.25 | 0.55 | 0.55 | 0.55 | 0.30(c) |
Net investment income (loss) | 0.00(a) | 0.21 | 1.64 | 1.24 | 0.27 | 0.01(c) |
Net assets at end of period (000 omitted) | $111,377 | $114,985 | $114,543 | $128,156 | $146,428 | $182,935 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(w) | Per share amount was less than $0.01. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Short-Term Securities | $— | $266,613,014 | $— | $266,613,014 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $569,717 |
As of 6/30/21 | |
Cost of investments | $266,613,014 |
As of 12/31/20 | |
Undistributed ordinary income | 315 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $326,608 | |
Service Class | — | 243,109 | |
Total | $— | $569,717 |
Up to $1 billion | 0.40% |
In excess of $1 billion | 0.35% |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Shares sold | |||
Initial Class | 27,002,220 | 71,530,784 | |
Service Class | 16,822,068 | 64,994,305 | |
43,824,288 | 136,525,089 | ||
Shares issued to shareholders in reinvestment of distributions | |||
Initial Class | — | 326,608 | |
Service Class | — | 243,109 | |
— | 569,717 | ||
Shares reacquired | |||
Initial Class | (27,794,593) | (65,600,762) | |
Service Class | (20,424,323) | (64,804,683) | |
(48,218,916) | (130,405,445) | ||
Net change | |||
Initial Class | (792,373) | 6,256,630 | |
Service Class | (3,602,255) | 432,731 | |
(4,394,628) | 6,689,361 |
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 definitions 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 of the Registrant 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. | 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 VARIABLE INSURANCE TRUST II
By (Signature and Title)* | /S/ DAVID L. DILORENZO | |
David L. DiLorenzo, President |
Date: August 13, 2021
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: August 13, 2021
By (Signature and Title)* | /S/ JAMES O. YOST | |
James O. Yost, Treasurer (Principal Financial Officer and Accounting Officer) |
Date: August 13, 2021
* | Print name and title of each signing officer under his or her signature. |