Quarterly Report
February 28, 2023
MFS® International Intrinsic Value Fund
FGI-Q3
Portfolio of Investments
2/28/23 (unaudited)
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 96.2% | ||||
Airlines – 0.9% | ||||
Ryanair Holdings PLC, ADR (a) | 2,069,998 | $192,033,715 | ||
Alcoholic Beverages – 4.4% | ||||
Diageo PLC | 10,456,980 | $443,883,839 | ||
Pernod Ricard S.A. | 2,278,449 | 476,440,129 | ||
$920,323,968 | ||||
Apparel Manufacturers – 2.0% | ||||
Adidas AG | 927,377 | $138,952,354 | ||
Compagnie Financiere Richemont S.A. | 995,229 | 149,783,629 | ||
LVMH Moet Hennessy Louis Vuitton SE | 167,058 | 139,414,079 | ||
$428,150,062 | ||||
Automotive – 1.2% | ||||
Compagnie Generale des Etablissements Michelin | 3,899,672 | $122,647,408 | ||
Knorr-Bremse AG | 1,887,895 | 128,635,521 | ||
$251,282,929 | ||||
Brokerage & Asset Managers – 2.8% | ||||
Deutsche Boerse AG | 2,400,341 | $418,908,565 | ||
Euronext N.V. | 2,403,295 | 175,751,407 | ||
$594,659,972 | ||||
Business Services – 4.3% | ||||
Experian PLC | 8,670,996 | $292,558,856 | ||
Intertek Group PLC | 3,733,679 | 187,456,636 | ||
Nomura Research Institute Ltd. | 7,469,854 | 166,783,123 | ||
SGS S.A. | 109,775 | 251,520,359 | ||
$898,318,974 | ||||
Chemicals – 1.0% | ||||
Givaudan S.A. | 67,009 | $202,126,208 | ||
Computer Software – 6.2% | ||||
ANSYS, Inc. (a) | 765,517 | $232,418,616 | ||
Cadence Design Systems, Inc. (a) | 2,947,080 | 568,609,615 | ||
Dassault Systemes SE | 3,689,310 | 142,741,811 | ||
NICE Systems Ltd., ADR (a) | 337,429 | 69,986,149 | ||
SAP SE | 2,572,010 | 292,390,100 | ||
$1,306,146,291 | ||||
Computer Software - Systems – 4.1% | ||||
Amadeus IT Group S.A. (a) | 3,990,335 | $250,702,206 | ||
Cap Gemini S.A. | 906,717 | 170,564,239 | ||
Samsung Electronics Co. Ltd. | 9,456,193 | 433,058,980 | ||
$854,325,425 | ||||
Construction – 1.8% | ||||
CRH PLC | 4,421,820 | $208,218,142 | ||
Geberit AG | 316,618 | 171,108,523 | ||
$379,326,665 | ||||
Consumer Products – 6.6% | ||||
Beiersdorf AG | 1,645,064 | $196,618,145 | ||
Kobayashi Pharmaceutical Co. Ltd. | 1,472,400 | 88,675,994 | ||
KOSE Corp. | 470,700 | 53,204,605 |
1
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Consumer Products – continued | ||||
L’Oréal S.A. | 726,152 | $288,095,818 | ||
Lion Corp. | 6,167,500 | 66,496,934 | ||
Reckitt Benckiser Group PLC | 4,955,255 | 343,439,830 | ||
ROHTO Pharmaceutical Co. Ltd. (h) | 13,661,200 | 248,330,726 | ||
Svenska Cellulosa Aktiebolaget | 7,751,914 | 108,340,181 | ||
$1,393,202,233 | ||||
Electrical Equipment – 6.9% | ||||
Legrand S.A. | 6,065,221 | $561,969,944 | ||
Schneider Electric SE | 4,995,414 | 803,748,464 | ||
Yokogawa Electric Corp. | 6,106,100 | 91,218,151 | ||
$1,456,936,559 | ||||
Electronics – 6.4% | ||||
Analog Devices, Inc. | 2,203,700 | $404,312,839 | ||
ASML Holding N.V. | 198,948 | 122,889,500 | ||
DISCO Corp. | 467,600 | 146,645,514 | ||
Hirose Electric Co. Ltd. (h) | 2,480,600 | 303,345,379 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 4,194,999 | 365,258,563 | ||
$1,342,451,795 | ||||
Energy - Independent – 1.8% | ||||
Woodside Energy Group Ltd. | 16,079,914 | $388,552,432 | ||
Energy - Integrated – 3.5% | ||||
Galp Energia SGPS S.A., “B” | 6,346,600 | $77,599,927 | ||
Petroleo Brasileiro S.A., ADR | 9,955,033 | 97,161,122 | ||
TotalEnergies SE | 8,926,060 | 552,964,663 | ||
$727,725,712 | ||||
Food & Beverages – 6.0% | ||||
Chocoladefabriken Lindt & Sprungli AG | 6,507 | $71,298,232 | ||
Ezaki Glico Co. Ltd. | 3,071,100 | 77,141,214 | ||
ITO EN Ltd. | 2,217,700 | 74,762,168 | ||
Nestle S.A. | 7,019,612 | 790,614,685 | ||
Toyo Suisan Kaisha Ltd. (h) | 6,070,300 | 245,656,443 | ||
$1,259,472,742 | ||||
Food & Drug Stores – 0.1% | ||||
Ocado Group PLC (a) | 3,229,077 | $21,315,911 | ||
Insurance – 0.5% | ||||
Hiscox Ltd. | 7,739,693 | $106,130,445 | ||
Machinery & Tools – 6.8% | ||||
Epiroc AB | 9,342,617 | $179,837,345 | ||
GEA Group AG | 4,989,614 | 219,650,086 | ||
IMI PLC (h) | 16,960,315 | 317,639,076 | ||
Schindler Holding AG | 1,187,002 | 266,424,826 | ||
SMC Corp. | 555,600 | 281,972,458 | ||
Spirax-Sarco Engineering PLC | 1,213,241 | 170,524,660 | ||
$1,436,048,451 | ||||
Major Banks – 4.5% | ||||
Bank of Ireland Group PLC | 28,259,255 | $311,750,651 | ||
NatWest Group PLC | 7,138,449 | 25,098,287 | ||
Resona Holdings, Inc. | 49,126,900 | 270,575,905 |
2
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Major Banks – continued | ||||
UBS Group AG | 15,553,877 | $337,714,906 | ||
$945,139,749 | ||||
Medical & Health Technology & Services – 0.9% | ||||
Haleon PLC (a) | 49,400,942 | $191,308,848 | ||
Medical Equipment – 4.3% | ||||
Agilent Technologies, Inc. | 1,322,122 | $187,701,660 | ||
Bruker BioSciences Corp. | 2,686,646 | 185,163,642 | ||
EssilorLuxottica | 1,399,748 | 243,396,328 | ||
Shimadzu Corp. | 10,331,500 | 298,589,494 | ||
$914,851,124 | ||||
Metals & Mining – 1.1% | ||||
Glencore PLC | 38,816,399 | $231,280,388 | ||
Other Banks & Diversified Financials – 5.1% | ||||
AIB Group PLC | 52,067,542 | $222,820,584 | ||
CaixaBank S.A. | 64,580,777 | 276,780,223 | ||
Chiba Bank Ltd. | 18,834,600 | 137,917,052 | ||
Hachijuni Bank Ltd. | 10,338,900 | 46,775,825 | ||
Julius Baer Group Ltd. | 1,512,252 | 100,126,384 | ||
Jyske Bank A.S. (a) | 1,312,546 | 110,046,417 | ||
Mebuki Financial Group, Inc. | 22,597,670 | 60,745,086 | ||
North Pacific Bank Ltd. | 15,497,700 | 36,082,192 | ||
Sydbank A.S. | 1,740,408 | 88,689,196 | ||
$1,079,982,959 | ||||
Pharmaceuticals – 2.5% | ||||
Bayer AG | 3,221,744 | $191,815,911 | ||
Roche Holding AG | 1,131,698 | 326,586,523 | ||
$518,402,434 | ||||
Precious Metals & Minerals – 4.2% | ||||
Agnico Eagle Mines Ltd. (l) | 3,377,598 | $155,500,701 | ||
Franco-Nevada Corp. | 4,612,540 | 588,762,251 | ||
Wheaton Precious Metals Corp. | 3,645,261 | 151,874,744 | ||
$896,137,696 | ||||
Printing & Publishing – 1.3% | ||||
Wolters Kluwer N.V. | 2,417,681 | $279,883,384 | ||
Real Estate – 1.2% | ||||
LEG Immobilien SE | 1,195,086 | $86,940,810 | ||
TAG Immobilien AG | 5,004,797 | 39,887,064 | ||
Vonovia SE, REIT | 5,170,613 | 130,434,588 | ||
$257,262,462 | ||||
Specialty Chemicals – 3.5% | ||||
Croda International PLC | 1,186,752 | $93,671,526 | ||
Kansai Paint Co. Ltd. | 4,955,300 | 66,456,449 | ||
Novozymes A.S. | 4,350,543 | 209,704,946 | ||
Sika AG | 604,524 | 169,383,536 | ||
Symrise AG | 1,978,301 | 202,548,989 | ||
$741,765,446 |
3
Portfolio of Investments (unaudited) – continued
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Specialty Stores – 0.3% | ||||
Zalando SE (a) | 1,525,982 | $60,687,551 | ||
Total Common Stocks | $20,275,232,530 |
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) | CHF 67 | 11/20/23 | 4,568,796 | $5,335,962 |
Investment Companies (h) – 3.7% | ||||
Money Market Funds – 3.7% | ||||
MFS Institutional Money Market Portfolio, 4.55% (v) | 779,776,155 | $779,776,155 | ||
Collateral for Securities Loaned – 0.2% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio, 4.59% (j) | 28,819,629 | $28,819,628 | ||
Other Assets, Less Liabilities – (0.1)% | (20,743,313) | |||
Net Assets – 100.0% | $21,068,420,962 |
(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 $1,894,747,779 and $19,194,416,496, 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. | |||
(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 |
See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.
4
Supplemental Information
2/28/23 (unaudited)
The fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies.
(1) Investment Valuations
Subject to its oversight, the fund's Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments to MFS as the fund's adviser, pursuant to the fund’s valuation policy and procedures which have been adopted by the adviser and approved by the Board. Effective September 8, 2022, and in accordance with Rule 2a-5 under the Investment Company Act of 1940, the Board of Trustees designated the adviser as the “valuation designee” of the fund. If the adviser, as valuation designee, determines that reliable market quotations are not readily available for an investment, the investment is valued at fair value as determined in good faith by the adviser in accordance with the adviser’s fair valuation policy and procedures.
Under the fund's valuation policy and procedures, equity securities, including restricted equity securities, are generally valued at the last sale or official closing price on their primary market or exchange as provided by a third-party pricing service. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation on their primary market or exchange as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less may be valued at amortized cost, which approximates market value. Open-end investment companies are generally valued at net asset value per share. The values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and asked prices for rates provided by a third-party pricing service.
Under the fund’s valuation policy and procedures, market quotations are not considered to be readily available for debt instruments, floating rate loans, and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services or otherwise determined by the adviser in accordance with the adviser’s fair valuation policy and procedures. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. In determining values, third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, spreads and other market data. An investment may also be valued at fair value if the adviser determines that the investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halt of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. Events that occur after foreign markets close (such as developments in foreign markets and significant movements in the U.S. markets) and prior to the determination of the fund’s net asset value may be deemed to have a material effect on the value of securities traded in foreign markets. Accordingly, the fund’s foreign equity securities may often be valued at fair value. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.
Various inputs are used in determining the value of the fund's assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes significant unobservable inputs, which may include the adviser's own assumptions in determining the fair value of investments. The following is a summary of the levels used as of February 28, 2023 in valuing the fund's assets and liabilities:
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities | $20,280,568,492 | $— | $— | $20,280,568,492 |
Mutual Funds | 808,595,783 | — | — | 808,595,783 |
Total | $21,089,164,275 | $— | $— | $21,089,164,275 |
For further information regarding security characteristics, see the Portfolio of Investments.
5
Supplemental Information (unaudited) – continued
(2) Investments in Affiliated Issuers
An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the following were affiliated issuers:
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
Hirose Electric Co. Ltd. | $356,896,633 | $— | $10,533,591 | $(357,317) | $(42,660,346) | $303,345,379 |
IMI PLC | 301,554,515 | — | — | — | 16,084,561 | 317,639,076 |
ITO EN Ltd.* | 191,926,495 | — | 86,109,530 | 34,289,864 | (65,344,661) | — |
MFS Institutional Money Market Portfolio | 919,522,220 | 3,262,263,813 | 3,402,047,902 | 68,204 | (30,180) | 779,776,155 |
ROHTO Pharmaceutical Co. Ltd. | 196,795,568 | — | 28,947,053 | 4,260,189 | 76,222,022 | 248,330,726 |
Toyo Suisan Kaisha Ltd. | 266,668,004 | — | 42,599,017 | 2,097,890 | 19,489,566 | 245,656,443 |
$2,233,363,435 | $3,262,263,813 | $3,570,237,093 | $40,358,830 | $3,760,962 | $1,894,747,779 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
Hirose Electric Co. Ltd. | $3,514,867 | $— |
IMI PLC | 1,720,921 | — |
ITO EN Ltd.* | — | — |
MFS Institutional Money Market Portfolio | 15,904,084 | — |
ROHTO Pharmaceutical Co. Ltd. | 955,335 | — |
Toyo Suisan Kaisha Ltd. | 1,638,681 | — |
$23,733,888 | ||
*Held at period end. No longer considered an affiliated issuer. |
(3) Issuer Country Weightings
Issuer country weighting percentages of portfolio holdings based on net assets, as of February 28, 2023, are as follows:
France | 17.4% |
Switzerland | 13.5% |
Japan | 13.1% |
United Kingdom | 11.5% |
United States | 11.4% |
Germany | 10.0% |
Ireland | 4.4% |
Canada | 4.2% |
Spain | 2.5% |
Other Countries | 12.0% |
6