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 811-8326
MFS VARIABLE INSURANCE TRUST
(Exact name of registrant as specified in charter)
111 Huntington Avenue, Boston, Massachusetts 02199
(Address of principal executive offices) (Zip code)
Christopher R. Bohane
Massachusetts Financial Services Company
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):
1 | |
2 | |
3 | |
4 | |
6 | |
7 | |
8 | |
9 | |
11 | |
17 | |
18 | |
18 | |
18 | |
18 |
Comcast Corp., “A” | 3.3% |
Thermo Fisher Scientific, Inc. | 3.2% |
Visa, Inc., “A” | 3.0% |
Medtronic PLC | 2.8% |
Schneider Electric SE | 2.7% |
Roche Holding AG | 2.5% |
LVMH Moet Hennessy Louis Vuitton SE | 2.4% |
Accenture PLC, “A” | 2.4% |
Nestle S.A. | 2.4% |
Diageo PLC | 2.3% |
Health Care | 19.4% |
Industrials | 19.3% |
Information Technology | 15.0% |
Consumer Staples | 14.1% |
Financials | 8.7% |
Consumer Discretionary | 8.3% |
Communication Services | 7.2% |
Materials | 6.0% |
Equity Warrants (o) | 0.0% |
United States | 57.1% |
France | 11.2% |
Switzerland | 8.1% |
United Kingdom | 6.7% |
Germany | 3.8% |
Netherlands | 3.1% |
Canada | 2.6% |
Japan | 2.0% |
Sweden | 1.6% |
Other Countries | 3.8% |
United States Dollar | 58.9% |
Euro | 20.9% |
Swiss Franc | 8.1% |
British Pound Sterling | 6.7% |
Japanese Yen | 2.0% |
Swedish Krona | 1.6% |
South Korean Won | 1.0% |
Danish Krone | 0.6% |
Mexican Peso | 0.2% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
(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 | 0.92% | $1,000.00 | $1,118.03 | $4.83 |
Hypothetical (h) | 0.92% | $1,000.00 | $1,020.23 | $4.61 | |
Service Class | Actual | 1.17% | $1,000.00 | $1,116.54 | $6.14 |
Hypothetical (h) | 1.17% | $1,000.00 | $1,018.99 | $5.86 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 98.0% | ||||
Aerospace & Defense – 3.1% | ||||
Honeywell International, Inc. | 6,435 | $ 1,411,518 | ||
MTU Aero Engines Holding AG | 1,243 | 307,895 | ||
Rolls-Royce Holdings PLC (a) | 235,395 | 322,105 | ||
$2,041,518 | ||||
Airlines – 0.8% | ||||
Aena S.A. (a) | 3,325 | $ 545,264 | ||
Alcoholic Beverages – 6.0% | ||||
Carlsberg A.S., “B” | 1,984 | $ 369,830 | ||
Diageo PLC | 31,459 | 1,506,132 | ||
Heineken N.V. | 8,843 | 1,071,627 | ||
Pernod Ricard S.A. | 4,411 | 979,120 | ||
$3,926,709 | ||||
Apparel Manufacturers – 4.3% | ||||
Burberry Group PLC | 14,292 | $ 408,451 | ||
Compagnie Financiere Richemont S.A. | 6,795 | 822,156 | ||
LVMH Moet Hennessy Louis Vuitton SE | 2,012 | 1,577,683 | ||
$2,808,290 | ||||
Automotive – 0.5% | ||||
Aptiv PLC (a) | 2,224 | $ 349,902 | ||
Broadcasting – 2.8% | ||||
Omnicom Group, Inc. | 2,020 | $ 161,580 | ||
Walt Disney Co. (a) | 6,722 | 1,181,526 | ||
WPP Group PLC | 35,773 | 482,081 | ||
$1,825,187 | ||||
Brokerage & Asset Managers – 1.9% | ||||
Charles Schwab Corp. | 12,769 | $ 929,711 | ||
Deutsche Boerse AG | 1,751 | 305,624 | ||
$1,235,335 | ||||
Business Services – 10.0% | ||||
Accenture PLC, “A” | 5,328 | $ 1,570,641 | ||
Adecco S.A. | 3,914 | 265,911 | ||
Brenntag AG | 3,648 | 339,215 | ||
Cognizant Technology Solutions Corp., “A” | 7,877 | 545,561 | ||
Compass Group PLC (a) | 20,193 | 425,140 | ||
Equifax, Inc. | 3,356 | 803,795 | ||
Fidelity National Information Services, Inc. | 6,127 | 868,012 | ||
Fiserv, Inc. (a) | 7,558 | 807,875 | ||
PayPal Holdings, Inc. (a) | 2,910 | 848,207 | ||
$6,474,357 | ||||
Cable TV – 4.4% | ||||
Comcast Corp., “A” | 37,850 | $ 2,158,207 | ||
Liberty Broadband Corp. (a) | 4,041 | 701,760 | ||
$2,859,967 | ||||
Chemicals – 2.6% | ||||
3M Co. | 4,725 | $ 938,527 | ||
PPG Industries, Inc. | 4,374 | 742,574 | ||
$1,681,101 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Computer Software – 2.5% | ||||
Check Point Software Technologies Ltd. (a) | 5,249 | $ 609,566 | ||
Oracle Corp. | 12,707 | 989,113 | ||
$1,598,679 | ||||
Computer Software - Systems – 1.4% | ||||
Cisco Systems, Inc. | 4,811 | $ 254,983 | ||
Samsung Electronics Co. Ltd. | 8,782 | 629,319 | ||
$884,302 | ||||
Construction – 0.5% | ||||
Otis Worldwide Corp. | 4,159 | $ 340,081 | ||
Consumer Products – 4.5% | ||||
Colgate-Palmolive Co. | 6,953 | $ 565,626 | ||
Essity AB | 32,671 | 1,083,421 | ||
International Flavors & Fragrances, Inc. | 2,257 | 337,196 | ||
Reckitt Benckiser Group PLC | 10,816 | 957,105 | ||
$2,943,348 | ||||
Electrical Equipment – 4.4% | ||||
Amphenol Corp., “A” | 5,228 | $ 357,647 | ||
Legrand S.A. | 7,017 | 742,680 | ||
Schneider Electric SE | 11,363 | 1,787,688 | ||
$2,888,015 | ||||
Electronics – 1.1% | ||||
Hoya Corp. | 2,800 | $ 371,250 | ||
Microchip Technology, Inc. | 2,138 | 320,144 | ||
$691,394 | ||||
Food & Beverages – 4.1% | ||||
Danone S.A. | 16,045 | $ 1,129,535 | ||
Nestle S.A. | 12,425 | 1,547,267 | ||
$2,676,802 | ||||
Gaming & Lodging – 1.0% | ||||
Marriott International, Inc., “A” (a) | 2,507 | $ 342,255 | ||
Whitbread PLC (a) | 6,804 | 293,842 | ||
$636,097 | ||||
Insurance – 1.6% | ||||
Aon PLC | 2,907 | $ 694,075 | ||
Willis Towers Watson PLC | 1,473 | 338,820 | ||
$1,032,895 | ||||
Internet – 1.1% | ||||
eBay, Inc. | 9,827 | $ 689,954 | ||
Machinery & Tools – 1.3% | ||||
Carrier Global Corp. | 3,437 | $ 167,038 | ||
Kubota Corp. (l) | 34,900 | 705,885 | ||
$872,923 | ||||
Major Banks – 3.3% | ||||
Bank of New York Mellon Corp. | 3,303 | $ 169,213 | ||
Erste Group Bank AG | 4,930 | 180,867 | ||
Goldman Sachs Group, Inc. | 2,858 | 1,084,697 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Major Banks – continued | ||||
State Street Corp. | 2,798 | $ 230,219 | ||
UBS Group AG | 33,062 | 505,980 | ||
$2,170,976 | ||||
Medical Equipment – 14.4% | ||||
Abbott Laboratories | 7,863 | $ 911,557 | ||
Boston Scientific Corp. (a) | 20,280 | 867,173 | ||
Cooper Cos., Inc. | 1,559 | 617,785 | ||
EssilorLuxottica | 1,382 | 255,048 | ||
Medtronic PLC | 14,792 | 1,836,131 | ||
Olympus Corp. | 11,600 | 230,549 | ||
Sonova Holding AG | 577 | 217,018 | ||
Stryker Corp. | 4,290 | 1,114,242 | ||
Thermo Fisher Scientific, Inc. | 4,141 | 2,089,010 | ||
Waters Corp. (a) | 1,862 | 643,526 | ||
Zimmer Biomet Holdings, Inc. | 3,757 | 604,201 | ||
$9,386,240 | ||||
Other Banks & Diversified Financials – 4.9% | ||||
American Express Co. | 5,019 | $ 829,289 | ||
Grupo Financiero Banorte S.A. de C.V. | 21,231 | 137,138 | ||
Julius Baer Group Ltd. | 4,243 | 276,890 | ||
Visa, Inc., “A” | 8,254 | 1,929,950 | ||
$3,173,267 | ||||
Pharmaceuticals – 4.8% | ||||
Bayer AG | 11,407 | $ 692,659 | ||
Merck KGaA | 4,214 | 807,975 | ||
Roche Holding AG | 4,290 | 1,616,081 | ||
$3,116,715 | ||||
Printing & Publishing – 0.2% | ||||
Wolters Kluwer N.V. | 960 | $ 96,439 | ||
Railroad & Shipping – 4.7% | ||||
Canadian National Railway Co. | 10,295 | $ 1,086,328 | ||
Canadian Pacific Railway Ltd. | 7,453 | 573,210 | ||
Kansas City Southern Co. | 3,025 | 857,194 | ||
Union Pacific Corp. | 2,450 | 538,829 | ||
��� $3,055,561 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Specialty Chemicals – 4.4% | ||||
Akzo Nobel N.V. | 6,714 | $ 829,549 | ||
L'Air Liquide S.A. | 3,389 | 593,373 | ||
Linde PLC | 1,032 | 298,351 | ||
Linde PLC | 3,896 | 1,124,200 | ||
$2,845,473 | ||||
Specialty Stores – 0.3% | ||||
Hermes International | 146 | $ 212,677 | ||
Trucking – 1.1% | ||||
United Parcel Service, Inc., “B” | 3,431 | $ 713,545 | ||
Total Common Stocks (Identified Cost, $27,604,716) | $63,773,013 |
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 | 14,904 | $ 9,987 |
Investment Companies (h) – 1.8% | ||||
Money Market Funds – 1.8% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $1,147,768) | 1,147,768 | $ 1,147,768 | ||
Other Assets, Less Liabilities – 0.2% | 134,772 | |||
Net Assets – 100.0% | $65,065,540 |
(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 $1,147,768 and $63,783,000, 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. |
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 $194,992 of securities on loan (identified cost, $27,604,716) | $63,783,000 |
Investments in affiliated issuers, at value (identified cost, $1,147,768) | 1,147,768 |
Receivables for | |
Fund shares sold | 31,423 |
Interest and dividends | 159,827 |
Receivable from investment adviser | 8,794 |
Other assets | 462 |
Total assets | $65,131,274 |
Liabilities | |
Payable to custodian | $2,260 |
Payables for | |
Fund shares reacquired | 11,993 |
Payable to affiliates | |
Administrative services fee | 107 |
Shareholder servicing costs | 100 |
Distribution and/or service fees | 202 |
Accrued expenses and other liabilities | 51,072 |
Total liabilities | $65,734 |
Net assets | $65,065,540 |
Net assets consist of | |
Paid-in capital | $21,596,772 |
Total distributable earnings (loss) | 43,468,768 |
Net assets | $65,065,540 |
Shares of beneficial interest outstanding | 2,373,506 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $50,340,970 | 1,832,308 | $27.47 |
Service Class | 14,724,570 | 541,198 | 27.21 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $610,989 |
Income on securities loaned | 603 |
Dividends from affiliated issuers | 131 |
Other | 17 |
Foreign taxes withheld | (53,199) |
Total investment income | $558,541 |
Expenses | |
Management fee | $277,549 |
Distribution and/or service fees | 17,528 |
Shareholder servicing costs | 5,134 |
Administrative services fee | 9,454 |
Independent Trustees' compensation | 1,555 |
Custodian fee | 9,877 |
Shareholder communications | 5,026 |
Audit and tax fees | 29,671 |
Legal fees | 239 |
Miscellaneous | 11,453 |
Total expenses | $367,486 |
Reduction of expenses by investment adviser | (65,808) |
Net expenses | $301,678 |
Net investment income (loss) | $256,863 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $3,149,444 |
Foreign currency | (1,265) |
Net realized gain (loss) | $3,148,179 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $3,515,394 |
Translation of assets and liabilities in foreign currencies | (4,006) |
Net unrealized gain (loss) | $3,511,388 |
Net realized and unrealized gain (loss) | $6,659,567 |
Change in net assets from operations | $6,916,430 |
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) | $256,863 | $386,667 |
Net realized gain (loss) | 3,148,179 | 3,963,044 |
Net unrealized gain (loss) | 3,511,388 | 2,750,961 |
Change in net assets from operations | $6,916,430 | $7,100,672 |
Total distributions to shareholders | $— | $(2,767,021) |
Change in net assets from fund share transactions | $(2,198,760) | $(5,075,552) |
Total change in net assets | $4,717,670 | $(741,901) |
Net assets | ||
At beginning of period | 60,347,870 | 61,089,771 |
At end of period | $65,065,540 | $60,347,870 |
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 | $24.57 | $22.79 | $18.82 | $22.00 | $18.59 | $18.39 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.11 | $0.16 | $0.25 | $0.23 | $0.20 | $0.17 |
Net realized and unrealized gain (loss) | 2.79 | 2.73 | 5.35 | (2.23) | 4.20 | 1.20 |
Total from investment operations | $2.90 | $2.89 | $5.60 | $(2.00) | $4.40 | $1.37 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.26) | $(0.25) | $(0.21) | $(0.18) | $(0.18) |
From net realized gain | — | (0.85) | (1.38) | (0.97) | (0.81) | (0.99) |
Total distributions declared to shareholders | $— | $(1.11) | $(1.63) | $(1.18) | $(0.99) | $(1.17) |
Net asset value, end of period (x) | $27.47 | $24.57 | $22.79 | $18.82 | $22.00 | $18.59 |
Total return (%) (k)(r)(s)(x) | 11.80(n) | 13.29 | 30.57 | (9.74) | 24.07 | 7.35 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.13(a) | 1.16 | 1.16 | 1.13 | 1.16 | 1.19 |
Expenses after expense reductions (f) | 0.92(a) | 0.92 | 0.95 | 0.97 | 0.97 | 0.99 |
Net investment income (loss) | 0.89(a) | 0.75 | 1.16 | 1.07 | 0.95 | 0.93 |
Portfolio turnover | 6(n) | 12 | 11 | 15 | 11 | 13 |
Net assets at end of period (000 omitted) | $50,341 | $46,879 | $49,771 | $45,219 | $52,850 | $44,756 |
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 | $24.37 | $22.62 | $18.70 | $21.86 | $18.49 | $18.30 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.08 | $0.10 | $0.18 | $0.18 | $0.14 | $0.13 |
Net realized and unrealized gain (loss) | 2.76 | 2.71 | 5.32 | (2.21) | 4.18 | 1.18 |
Total from investment operations | $2.84 | $2.81 | $5.50 | $(2.03) | $4.32 | $1.31 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.21) | $(0.20) | $(0.16) | $(0.14) | $(0.13) |
From net realized gain | — | (0.85) | (1.38) | (0.97) | (0.81) | (0.99) |
Total distributions declared to shareholders | $— | $(1.06) | $(1.58) | $(1.13) | $(0.95) | $(1.12) |
Net asset value, end of period (x) | $27.21 | $24.37 | $22.62 | $18.70 | $21.86 | $18.49 |
Total return (%) (k)(r)(s)(x) | 11.65(n) | 13.04 | 30.20 | (9.92) | 23.75 | 7.06 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.38(a) | 1.41 | 1.41 | 1.38 | 1.42 | 1.44 |
Expenses after expense reductions (f) | 1.17(a) | 1.17 | 1.20 | 1.22 | 1.22 | 1.24 |
Net investment income (loss) | 0.64(a) | 0.48 | 0.85 | 0.86 | 0.68 | 0.70 |
Portfolio turnover | 6(n) | 12 | 11 | 15 | 11 | 13 |
Net assets at end of period (000 omitted) | $14,725 | $13,469 | $11,319 | $7,139 | $10,162 | $7,033 |
(a) | Annualized. |
(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 | $63,783,000 | $— | $— | $63,783,000 |
Mutual Funds | 1,147,768 | — | — | 1,147,768 |
Total | $64,930,768 | $— | $— | $64,930,768 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $699,005 |
Long-term capital gains | 2,068,016 |
Total distributions | $2,767,021 |
As of 6/30/21 | |
Cost of investments | $29,274,818 |
Gross appreciation | 35,925,976 |
Gross depreciation | (270,026) |
Net unrealized appreciation (depreciation) | $35,655,950 |
As of 12/31/20 | |
Undistributed ordinary income | 463,083 |
Undistributed long-term capital gain | 3,941,434 |
Other temporary differences | 7,265 |
Net unrealized appreciation (depreciation) | 32,140,556 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $2,194,634 | |
Service Class | — | 572,387 | |
Total | $— | $2,767,021 |
Up to $1 billion | 0.90% |
In excess of $1 billion and up to $2.5 billion | 0.75% |
In excess of $2.5 billion | 0.65% |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 119,970 | $3,139,409 | 374,120 | $7,560,367 | |
Service Class | 62,537 | 1,586,783 | 195,660 | 4,034,412 | |
182,507 | $4,726,192 | 569,780 | $11,594,779 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 100,487 | $2,194,634 | |
Service Class | — | — | 26,402 | 572,387 | |
— | $— | 126,889 | $2,767,021 | ||
Shares reacquired | |||||
Initial Class | (195,311) | $(5,043,177) | (750,977) | $(15,997,296) | |
Service Class | (74,099) | (1,881,775) | (169,724) | (3,440,056) | |
(269,410) | $(6,924,952) | (920,701) | $(19,437,352) | ||
Net change | |||||
Initial Class | (75,341) | $(1,903,768) | (276,370) | $(6,242,295) | |
Service Class | (11,562) | (294,992) | 52,338 | 1,166,743 | |
(86,903) | $(2,198,760) | (224,032) | $(5,075,552) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $651,977 | $5,781,502 | $5,285,711 | $— | $— | $1,147,768 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $131 | $— |
1 | |
2 | |
3 | |
4 | |
6 | |
7 | |
8 | |
9 | |
11 | |
17 | |
18 | |
18 | |
18 | |
18 |
Microsoft Corp. | 10.3% |
Amazon.com, Inc. | 8.2% |
Alphabet, Inc., “A” | 5.5% |
Adobe Systems, Inc. | 4.1% |
Facebook, Inc., “A” | 3.9% |
Mastercard, Inc., “A” | 3.2% |
PayPal Holdings, Inc. | 2.8% |
Visa, Inc., “A” | 2.8% |
Apple, Inc. | 2.4% |
NVIDIA Corp. | 2.3% |
Information Technology | 41.5% |
Communication Services | 19.3% |
Consumer Discretionary | 11.3% |
Health Care | 10.3% |
Industrials | 7.3% |
Financials | 3.2% |
Materials | 2.7% |
Consumer Staples | 2.4% |
Real Estate | 1.1% |
(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. |
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 | $1,128.98 | $3.80 |
Hypothetical (h) | 0.72% | $1,000.00 | $1,021.22 | $3.61 | |
Service Class | Actual | 0.97% | $1,000.00 | $1,127.72 | $5.12 |
Hypothetical (h) | 0.97% | $1,000.00 | $1,019.98 | $4.86 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.1% | ||||
Apparel Manufacturers – 0.9% | ||||
NIKE, Inc., “B” | 136,236 | $ 21,047,100 | ||
Biotechnology – 0.7% | ||||
Alnylam Pharmaceuticals, Inc. (a) | 26,613 | $ 4,511,436 | ||
Vertex Pharmaceuticals, Inc. (a) | 57,040 | 11,500,975 | ||
$16,012,411 | ||||
Broadcasting – 1.4% | ||||
Netflix, Inc. (a) | 61,141 | $ 32,295,288 | ||
Brokerage & Asset Managers – 0.9% | ||||
Charles Schwab Corp. | 287,009 | $ 20,897,125 | ||
Business Services – 8.2% | ||||
Clarivate PLC (a) | 551,006 | $ 15,169,195 | ||
CoStar Group, Inc. (a) | 213,333 | 17,668,239 | ||
Equifax, Inc. | 56,211 | 13,463,097 | ||
Global Payments, Inc. | 53,630 | 10,057,770 | ||
MSCI, Inc. | 75,655 | 40,330,167 | ||
PayPal Holdings, Inc. (a) | 224,557 | 65,453,874 | ||
Verisk Analytics, Inc., “A” | 164,523 | 28,745,459 | ||
$190,887,801 | ||||
Cable TV – 1.7% | ||||
Charter Communications, Inc., “A” (a) | 54,972 | $ 39,659,549 | ||
Computer Software – 21.3% | ||||
Adobe Systems, Inc. (a) | 162,952 | $ 95,431,209 | ||
Atlassian Corp. PLC, “A” (a) | 38,068 | 9,778,147 | ||
Autodesk, Inc. (a) | 98,387 | 28,719,165 | ||
Black Knight, Inc. (a) | 73,062 | 5,697,375 | ||
Bumble, Inc., “A” (a) | 80,421 | 4,632,250 | ||
Cadence Design Systems, Inc. (a) | 108,065 | 14,785,453 | ||
Intuit, Inc. | 107,678 | 52,780,525 | ||
Microsoft Corp. | 882,549 | 239,082,524 | ||
Qualtrics International, “A” (a) | 26,428 | 1,010,871 | ||
salesforce.com, inc. (a) | 130,656 | 31,915,341 | ||
Synopsys, Inc. (a) | 42,587 | 11,745,069 | ||
$495,577,929 | ||||
Computer Software - Systems – 5.6% | ||||
Apple, Inc. | 405,345 | $ 55,516,051 | ||
ServiceNow, Inc. (a) | 46,908 | 25,778,291 | ||
Square, Inc., “A” (a) | 110,590 | 26,961,842 | ||
TransUnion | 203,692 | 22,367,419 | ||
$130,623,603 | ||||
Construction – 2.7% | ||||
Sherwin-Williams Co. | 124,418 | $ 33,897,684 | ||
Vulcan Materials Co. | 170,024 | 29,596,078 | ||
$63,493,762 | ||||
Consumer Products – 2.4% | ||||
Colgate-Palmolive Co. | 252,169 | $ 20,513,948 | ||
Estee Lauder Cos., Inc., “A” | 111,496 | 35,464,648 | ||
$55,978,596 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Consumer Services – 0.6% | ||||
Airbnb, Inc., “A” (a) | 3,378 | $ 517,307 | ||
Uber Technologies, Inc. (a) | 248,997 | 12,479,730 | ||
$12,997,037 | ||||
Electrical Equipment – 1.3% | ||||
AMETEK, Inc. | 154,820 | $ 20,668,470 | ||
Johnson Controls International PLC | 132,726 | 9,108,985 | ||
$29,777,455 | ||||
Electronics – 6.0% | ||||
Applied Materials, Inc. | 180,844 | $ 25,752,186 | ||
ASML Holding N.V. | 33,426 | 23,092,018 | ||
Lam Research Corp. | 57,520 | 37,428,264 | ||
NVIDIA Corp. | 67,893 | 54,321,189 | ||
$140,593,657 | ||||
Entertainment – 0.2% | ||||
Spotify Technology S.A. (a) | 19,366 | $ 5,337,076 | ||
Gaming & Lodging – 0.2% | ||||
MGM Resorts International | 102,735 | $ 4,381,648 | ||
General Merchandise – 0.5% | ||||
Dollar General Corp. | 49,372 | $ 10,683,607 | ||
Health Maintenance Organizations – 0.2% | ||||
UnitedHealth Group, Inc. | 9,783 | $ 3,917,505 | ||
Insurance – 0.6% | ||||
Aon PLC | 53,753 | $ 12,834,066 | ||
Internet – 13.2% | ||||
Alphabet, Inc., “A” (a) | 52,156 | $ 127,353,999 | ||
Alphabet, Inc., “C” (a) | 15,713 | 39,381,806 | ||
Facebook, Inc., “A” (a) | 260,927 | 90,726,927 | ||
Match Group, Inc. (a) | 160,400 | 25,864,500 | ||
Pinterest, Inc. (a) | 64,126 | 5,062,748 | ||
Sea Ltd., ADR (a) | 68,451 | 18,796,645 | ||
$307,186,625 | ||||
Leisure & Toys – 2.6% | ||||
Activision Blizzard, Inc. | 190,853 | $ 18,215,010 | ||
Electronic Arts, Inc. | 154,955 | 22,287,178 | ||
Roblox Corp., “A” (a) | 88,906 | 7,999,762 | ||
Take-Two Interactive Software, Inc. (a) | 67,279 | 11,909,728 | ||
$60,411,678 | ||||
Machinery & Tools – 0.6% | ||||
Roper Technologies, Inc. | 28,359 | $ 13,334,402 | ||
Medical & Health Technology & Services – 0.8% | ||||
ICON PLC (a) | 84,910 | $ 17,551,746 | ||
Medical Equipment – 7.5% | ||||
Abbott Laboratories | 272,488 | $ 31,589,534 | ||
Becton, Dickinson and Co. | 41,494 | 10,090,926 | ||
Boston Scientific Corp. (a) | 519,702 | 22,222,457 | ||
Danaher Corp. | 182,064 | 48,858,695 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Medical Equipment – continued | ||||
Edwards Lifesciences Corp. (a) | 141,818 | $ 14,688,090 | ||
STERIS PLC | 30,757 | 6,345,169 | ||
Thermo Fisher Scientific, Inc. | 80,225 | 40,471,106 | ||
$174,265,977 | ||||
Network & Telecom – 0.4% | ||||
Equinix, Inc., REIT | 12,864 | $ 10,324,646 | ||
Other Banks & Diversified Financials – 5.9% | ||||
Mastercard, Inc., “A” | 200,972 | $ 73,372,868 | ||
Visa, Inc., “A” | 277,603 | 64,909,133 | ||
$138,282,001 | ||||
Pharmaceuticals – 1.2% | ||||
Zoetis, Inc. | 153,972 | $ 28,694,222 | ||
Railroad & Shipping – 0.7% | ||||
Canadian Pacific Railway Ltd. | 201,945 | $ 15,531,590 | ||
Restaurants – 0.8% | ||||
Chipotle Mexican Grill, Inc., “A” (a) | 8,124 | $ 12,594,962 | ||
Starbucks Corp. | 54,128 | 6,052,052 | ||
$18,647,014 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Specialty Stores – 9.4% | ||||
Amazon.com, Inc. (a) | 55,408 | $ 190,612,385 | ||
Lululemon Athletica, Inc. (a) | 25,352 | 9,252,719 | ||
Ross Stores, Inc. | 61,052 | 7,570,448 | ||
Shopify, Inc. (a) | 7,973 | 11,648,394 | ||
$219,083,946 | ||||
Telecommunications - Wireless – 0.6% | ||||
American Tower Corp., REIT | 54,548 | $ 14,735,597 | ||
Total Common Stocks (Identified Cost, $766,214,343) | $ 2,305,044,659 | |||
Investment Companies (h) – 0.0% | ||||
Money Market Funds – 0.0% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $202) | 202 | $ 202 | ||
Other Assets, Less Liabilities – 0.9% | 21,665,625 | |||
Net Assets – 100.0% | $ 2,326,710,486 |
(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 $202 and $2,305,044,659, 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, $766,214,343) | $2,305,044,659 |
Investments in affiliated issuers, at value (identified cost, $202) | 202 |
Receivables for | |
Investments sold | 25,471,857 |
Fund shares sold | 909,660 |
Dividends | 321,303 |
Other assets | 5,425 |
Total assets | $2,331,753,106 |
Liabilities | |
Payable to custodian | $1,706,952 |
Payables for | |
Fund shares reacquired | 3,026,030 |
Payable to affiliates | |
Investment adviser | 87,057 |
Administrative services fee | 1,725 |
Shareholder servicing costs | 821 |
Distribution and/or service fees | 7,558 |
Accrued expenses and other liabilities | 212,477 |
Total liabilities | $5,042,620 |
Net assets | $2,326,710,486 |
Net assets consist of | |
Paid-in capital | $376,225,562 |
Total distributable earnings (loss) | 1,950,484,924 |
Net assets | $2,326,710,486 |
Shares of beneficial interest outstanding | 28,267,019 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $1,776,455,677 | 21,318,994 | $83.33 |
Service Class | 550,254,809 | 6,948,025 | 79.20 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $4,496,107 |
Other | 22,306 |
Dividends from affiliated issuers | 3,519 |
Foreign taxes withheld | (19,166) |
Total investment income | $4,502,766 |
Expenses | |
Management fee | $7,655,046 |
Distribution and/or service fees | 648,852 |
Shareholder servicing costs | 32,412 |
Administrative services fee | 146,101 |
Independent Trustees' compensation | 16,646 |
Custodian fee | 50,110 |
Shareholder communications | 48,442 |
Audit and tax fees | 30,661 |
Legal fees | 7,731 |
Miscellaneous | 24,915 |
Total expenses | $8,660,916 |
Reduction of expenses by investment adviser | (131,564) |
Net expenses | $8,529,352 |
Net investment income (loss) | $(4,026,586) |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $100,806,502 |
Foreign currency | 443 |
Net realized gain (loss) | $100,806,945 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $176,125,151 |
Translation of assets and liabilities in foreign currencies | (187) |
Net unrealized gain (loss) | $176,124,964 |
Net realized and unrealized gain (loss) | $276,931,909 |
Change in net assets from operations | $272,905,323 |
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) | $(4,026,586) | $(5,258,847) |
Net realized gain (loss) | 100,806,945 | 321,361,876 |
Net unrealized gain (loss) | 176,124,964 | 234,350,980 |
Change in net assets from operations | $272,905,323 | $550,454,009 |
Total distributions to shareholders | $— | $(127,591,165) |
Change in net assets from fund share transactions | $(141,624,408) | $(95,720,771) |
Total change in net assets | $131,280,915 | $327,142,073 |
Net assets | ||
At beginning of period | 2,195,429,571 | 1,868,287,498 |
At end of period | $2,326,710,486 | $2,195,429,571 |
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 | $73.81 | $59.40 | $47.01 | $48.90 | $38.76 | $40.17 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.12) | $(0.14) | $(0.04) | $0.00(w) | $0.06 | $0.05(c) |
Net realized and unrealized gain (loss) | 9.64 | 18.88 | 17.53 | 1.81 | 11.95 | 1.01 |
Total from investment operations | $9.52 | $18.74 | $17.49 | $1.81 | $12.01 | $1.06 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $— | $— | $(0.05) | $(0.05) | $(0.02) |
From net realized gain | — | (4.33) | (5.10) | (3.65) | (1.82) | (2.45) |
Total distributions declared to shareholders | $— | $(4.33) | $(5.10) | $(3.70) | $(1.87) | $(2.47) |
Net asset value, end of period (x) | $83.33 | $73.81 | $59.40 | $47.01 | $48.90 | $38.76 |
Total return (%) (k)(r)(s)(x) | 12.90(n) | 31.86 | 38.15 | 2.67 | 31.40 | 2.44(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.73(a) | 0.74 | 0.74 | 0.75 | 0.76 | 0.75(c) |
Expenses after expense reductions (f) | 0.72(a) | 0.72 | 0.73 | 0.74 | 0.75 | 0.74(c) |
Net investment income (loss) | (0.31)(a) | (0.21) | (0.06) | 0.00(w) | 0.13 | 0.12(c) |
Portfolio turnover | 7(n) | 29 | 11 | 15 | 14 | 24 |
Net assets at end of period (000 omitted) | $1,776,456 | $1,681,327 | $1,467,280 | $1,226,217 | $1,332,128 | $1,179,822 |
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 | $70.23 | $56.82 | $45.26 | $47.27 | $37.57 | $39.09 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.20) | $(0.29) | $(0.17) | $(0.13) | $(0.05) | $(0.05)(c) |
Net realized and unrealized gain (loss) | 9.17 | 18.03 | 16.83 | 1.77 | 11.57 | 0.98 |
Total from investment operations | $8.97 | $17.74 | $16.66 | $1.64 | $11.52 | $0.93 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $— | $— | $— | $— | $— |
From net realized gain | — | (4.33) | (5.10) | (3.65) | (1.82) | (2.45) |
Total distributions declared to shareholders | $— | $(4.33) | $(5.10) | $(3.65) | $(1.82) | $(2.45) |
Net asset value, end of period (x) | $79.20 | $70.23 | $56.82 | $45.26 | $47.27 | $37.57 |
Total return (%) (k)(r)(s)(x) | 12.77(n) | 31.54 | 37.78 | 2.41 | 31.08 | 2.18(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.98(a) | 0.99 | 0.99 | 1.00 | 1.01 | 1.00(c) |
Expenses after expense reductions (f) | 0.97(a) | 0.97 | 0.98 | 0.99 | 1.00 | 0.99(c) |
Net investment income (loss) | (0.56)(a) | (0.46) | (0.31) | (0.25) | (0.12) | (0.13)(c) |
Portfolio turnover | 7(n) | 29 | 11 | 15 | 14 | 24 |
Net assets at end of period (000 omitted) | $550,255 | $514,102 | $401,008 | $287,412 | $289,733 | $235,869 |
(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 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 |
Equity Securities | $2,305,044,659 | $— | $— | $2,305,044,659 |
Mutual Funds | 202 | — | — | 202 |
Total | $2,305,044,861 | $— | $— | $2,305,044,861 |
Year ended 12/31/20 | |
Long-term capital gains | $127,591,165 |
As of 6/30/21 | |
Cost of investments | $768,479,803 |
Gross appreciation | 1,542,851,724 |
Gross depreciation | (6,286,666) |
Net unrealized appreciation (depreciation) | $1,536,565,058 |
As of 12/31/20 | |
Undistributed ordinary income | 1,658,165 |
Undistributed long-term capital gain | 315,481,466 |
Other temporary differences | 63 |
Net unrealized appreciation (depreciation) | 1,360,439,907 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $97,613,169 | |
Service Class | — | 29,977,996 | |
Total | $— | $127,591,165 |
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 | 623,940 | $46,751,381 | 1,476,731 | $92,793,470 | |
Service Class | 475,426 | 34,067,226 | 1,452,278 | 89,443,781 | |
1,099,366 | $80,818,607 | 2,929,009 | $182,237,251 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 1,364,516 | $96,648,663 | |
Service Class | — | — | 444,382 | 29,977,996 | |
— | $— | 1,808,898 | $126,626,659 | ||
Shares reacquired | |||||
Initial Class | (2,085,335) | $(160,570,194) | (4,764,482) | $(305,550,308) | |
Service Class | (847,326) | (61,872,821) | (1,633,664) | (99,034,373) | |
(2,932,661) | $(222,443,015) | (6,398,146) | $(404,584,681) | ||
Net change | |||||
Initial Class | (1,461,395) | $(113,818,813) | (1,923,235) | $(116,108,175) | |
Service Class | (371,900) | (27,805,595) | 262,996 | 20,387,404 | |
(1,833,295) | $(141,624,408) | (1,660,239) | $(95,720,771) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $18,169,621 | $153,313,864 | $171,483,283 | $— | $— | $202 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $3,519 | $— |
1 | |
2 | |
3 | |
4 | |
6 | |
7 | |
8 | |
9 | |
11 | |
17 | |
18 | |
18 | |
18 | |
18 |
Microsoft Corp. | 5.3% |
Alphabet, Inc., “A” | 4.9% |
JPMorgan Chase & Co. | 2.6% |
Bank of America Corp. | 2.4% |
Apple, Inc. | 2.3% |
Visa, Inc., “A” | 2.2% |
Facebook, Inc., “A” | 2.2% |
Johnson & Johnson | 2.1% |
American Tower Corp., REIT | 2.1% |
Honeywell International, Inc. | 1.9% |
Information Technology | 23.8% |
Health Care | 17.4% |
Communication Services | 12.8% |
Financial Services | 12.0% |
Consumer Discretionary | 8.7% |
Consumer Staples | 7.7% |
Industrials | 7.7% |
Real Estate | 3.7% |
Materials | 3.7% |
Energy | 1.1% |
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 | 0.79% | $1,000.00 | $1,159.97 | $4.23 |
Hypothetical (h) | 0.79% | $1,000.00 | $1,020.88 | $3.96 | |
Service Class | Actual | 1.03% | $1,000.00 | $1,158.66 | $5.51 |
Hypothetical (h) | 1.03% | $1,000.00 | $1,019.69 | $5.16 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.2% | ||||
Aerospace & Defense – 3.0% | ||||
Honeywell International, Inc. | 72,280 | $ 15,854,618 | ||
Howmet Aerospace, Inc. (a) | 69,037 | 2,379,705 | ||
Raytheon Technologies Corp. | 76,571 | 6,532,272 | ||
$24,766,595 | ||||
Alcoholic Beverages – 2.5% | ||||
Diageo PLC | 220,681 | $ 10,565,326 | ||
Pernod Ricard S.A. | 42,832 | 9,507,523 | ||
$20,072,849 | ||||
Apparel Manufacturers – 2.4% | ||||
LVMH Moet Hennessy Louis Vuitton SE | 15,346 | $ 12,033,359 | ||
NIKE, Inc., “B” | 50,930 | 7,868,176 | ||
$19,901,535 | ||||
Biotechnology – 1.9% | ||||
Illumina, Inc. (a) | 14,333 | $ 6,782,519 | ||
Vertex Pharmaceuticals, Inc. (a) | 44,806 | 9,034,234 | ||
$15,816,753 | ||||
Brokerage & Asset Managers – 3.2% | ||||
Blackstone Group, Inc. | 71,801 | $ 6,974,749 | ||
Charles Schwab Corp. | 87,306 | 6,356,750 | ||
NASDAQ, Inc. | 73,737 | 12,962,965 | ||
$26,294,464 | ||||
Business Services – 4.7% | ||||
Accenture PLC, “A” | 32,311 | $ 9,524,959 | ||
Amdocs Ltd. | 116,836 | 9,038,433 | ||
Fidelity National Information Services, Inc. | 97,549 | 13,819,767 | ||
Fiserv, Inc. (a) | 56,402 | 6,028,810 | ||
$38,411,969 | ||||
Cable TV – 2.4% | ||||
Cable One, Inc. | 2,408 | $ 4,606,047 | ||
Comcast Corp., “A” | 266,708 | 15,207,690 | ||
$19,813,737 | ||||
Chemicals – 0.7% | ||||
PPG Industries, Inc. | 31,951 | $ 5,424,321 | ||
Computer Software – 8.3% | ||||
Adobe Systems, Inc. (a) | 24,847 | $ 14,551,397 | ||
Microsoft Corp. | 160,424 | 43,458,862 | ||
salesforce.com, inc. (a) | 40,716 | 9,945,697 | ||
$67,955,956 | ||||
Computer Software - Systems – 2.3% | ||||
Apple, Inc. | 136,039 | $ 18,631,902 | ||
Construction – 1.6% | ||||
Masco Corp. | 76,383 | $ 4,499,723 | ||
Sherwin-Williams Co. | 30,890 | 8,415,980 | ||
$12,915,703 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Consumer Products – 2.4% | ||||
Colgate-Palmolive Co. | 97,561 | $ 7,936,587 | ||
Estee Lauder Cos., Inc., “A” | 15,390 | 4,895,251 | ||
Kimberly-Clark Corp. | 48,071 | 6,430,939 | ||
$19,262,777 | ||||
Containers – 1.2% | ||||
Crown Holdings, Inc. | 95,541 | $ 9,765,246 | ||
Electrical Equipment – 3.6% | ||||
AMETEK, Inc. | 55,621 | $ 7,425,404 | ||
Fortive Corp. | 90,006 | 6,277,018 | ||
Johnson Controls International PLC | 108,149 | 7,422,266 | ||
TE Connectivity Ltd. | 59,483 | 8,042,696 | ||
$29,167,384 | ||||
Electronics – 3.4% | ||||
Analog Devices, Inc. | 51,792 | $ 8,916,511 | ||
Applied Materials, Inc. | 36,931 | 5,258,974 | ||
Texas Instruments, Inc. | 72,281 | 13,899,636 | ||
$28,075,121 | ||||
Energy - Independent – 0.8% | ||||
ConocoPhillips | 111,556 | $ 6,793,760 | ||
Food & Beverages – 1.8% | ||||
Danone S.A. | 125,477 | $ 8,833,328 | ||
Mondelez International, Inc. | 93,717 | 5,851,690 | ||
$14,685,018 | ||||
Forest & Paper Products – 0.3% | ||||
Rayonier, Inc., REIT | 63,898 | $ 2,295,855 | ||
General Merchandise – 1.1% | ||||
Dollar General Corp. | 41,915 | $ 9,069,987 | ||
Health Maintenance Organizations – 0.9% | ||||
Cigna Corp. | 29,401 | $ 6,970,095 | ||
Insurance – 0.9% | ||||
Chubb Ltd. | 46,227 | $ 7,347,319 | ||
Internet – 8.8% | ||||
Alphabet, Inc., “A” (a) | 16,378 | $ 39,991,637 | ||
Alphabet, Inc., “C” (a) | 5,711 | 14,313,593 | ||
Facebook, Inc., “A” (a) | 51,352 | 17,855,604 | ||
$72,160,834 | ||||
Leisure & Toys – 1.5% | ||||
Electronic Arts, Inc. | 84,945 | $ 12,217,639 | ||
Major Banks – 6.8% | ||||
Bank of America Corp. | 478,514 | $ 19,729,132 | ||
Goldman Sachs Group, Inc. | 37,696 | 14,306,763 | ||
JPMorgan Chase & Co. | 138,340 | 21,517,404 | ||
$55,553,299 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Medical & Health Technology & Services – 2.0% | ||||
ICON PLC (a) | 21,605 | $ 4,465,970 | ||
PRA Health Sciences, Inc. (a) | 70,329 | 11,619,054 | ||
$16,085,024 | ||||
Medical Equipment – 6.8% | ||||
Becton, Dickinson and Co. | 53,559 | $ 13,025,013 | ||
Danaher Corp. | 44,211 | 11,864,464 | ||
Medtronic PLC | 126,380 | 15,687,550 | ||
Thermo Fisher Scientific, Inc. | 29,477 | 14,870,262 | ||
$55,447,289 | ||||
Natural Gas - Pipeline – 0.3% | ||||
Enterprise Products Partners LP | 98,946 | $ 2,387,567 | ||
Network & Telecom – 1.3% | ||||
Equinix, Inc., REIT | 13,377 | $ 10,736,380 | ||
Other Banks & Diversified Financials – 5.2% | ||||
Mastercard, Inc., “A” | 41,861 | $ 15,283,032 | ||
Truist Financial Corp. | 163,069 | 9,050,330 | ||
Visa, Inc., “A” | 77,346 | 18,085,042 | ||
$42,418,404 | ||||
Pharmaceuticals – 5.9% | ||||
Eli Lilly & Co. | 48,673 | $ 11,171,427 | ||
Johnson & Johnson | 105,081 | 17,311,044 | ||
Merck & Co., Inc. | 147,615 | 11,480,019 | ||
Zoetis, Inc. | 41,740 | 7,778,666 | ||
$47,741,156 | ||||
Railroad & Shipping – 1.3% | ||||
Canadian National Railway Co. | 96,596 | $ 10,192,810 | ||
Restaurants – 0.7% | ||||
Starbucks Corp. | 50,090 | $ 5,600,563 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Specialty Chemicals – 0.8% | ||||
DuPont de Nemours, Inc. | 83,839 | $ 6,489,977 | ||
Specialty Stores – 5.6% | ||||
Costco Wholesale Corp. | 21,954 | $ 8,686,539 | ||
Home Depot, Inc. | 37,859 | 12,072,857 | ||
Target Corp. | 59,556 | 14,397,067 | ||
Tractor Supply Co. | 54,569 | 10,153,108 | ||
$45,309,571 | ||||
Telecommunications - Wireless – 2.1% | ||||
American Tower Corp., REIT | 63,607 | $ 17,182,795 | ||
Trucking – 0.2% | ||||
Old Dominion Freight Line, Inc. | 7,953 | $ 2,018,471 | ||
Utilities - Electric Power – 0.5% | ||||
American Electric Power Co., Inc. | 52,877 | $ 4,472,866 | ||
Total Common Stocks (Identified Cost, $348,806,747) | $809,452,991 | |||
Investment Companies (h) – 0.8% | ||||
Money Market Funds – 0.8% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $6,762,283) | 6,762,283 | $ 6,762,283 | ||
Other Assets, Less Liabilities – (0.0)% | (115,056) | |||
Net Assets – 100.0% | $816,100,218 |
(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 $6,762,283 and $809,452,991, respectively. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
REIT | Real Estate Investment Trust |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $348,806,747) | $809,452,991 |
Investments in affiliated issuers, at value (identified cost, $6,762,283) | 6,762,283 |
Receivables for | |
Fund shares sold | 118,826 |
Interest and dividends | 535,595 |
Other assets | 2,215 |
Total assets | $816,871,910 |
Liabilities | |
Payable to custodian | $21,266 |
Payables for | |
Fund shares reacquired | 562,996 |
Payable to affiliates | |
Investment adviser | 32,983 |
Administrative services fee | 642 |
Shareholder servicing costs | 461 |
Distribution and/or service fees | 7,175 |
Accrued expenses and other liabilities | 146,169 |
Total liabilities | $771,692 |
Net assets | $816,100,218 |
Net assets consist of | |
Paid-in capital | $277,189,665 |
Total distributable earnings (loss) | 538,910,553 |
Net assets | $816,100,218 |
Shares of beneficial interest outstanding | 19,452,753 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $292,483,466 | 6,894,721 | $42.42 |
Service Class | 523,616,752 | 12,558,032 | 41.70 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $5,507,053 |
Income on securities loaned | 9,652 |
Other | 4,091 |
Dividends from affiliated issuers | 1,187 |
Foreign taxes withheld | (71,707) |
Total investment income | $5,450,276 |
Expenses | |
Management fee | $2,948,425 |
Distribution and/or service fees | 632,648 |
Shareholder servicing costs | 20,390 |
Administrative services fee | 55,721 |
Independent Trustees' compensation | 6,502 |
Custodian fee | 19,825 |
Shareholder communications | 35,252 |
Audit and tax fees | 29,128 |
Legal fees | 2,682 |
Miscellaneous | 15,198 |
Total expenses | $3,765,771 |
Reduction of expenses by investment adviser | (46,989) |
Net expenses | $3,718,782 |
Net investment income (loss) | $1,731,494 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $45,804,866 |
Foreign currency | (5,728) |
Net realized gain (loss) | $45,799,138 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $69,382,316 |
Translation of assets and liabilities in foreign currencies | (1,242) |
Net unrealized gain (loss) | $69,381,074 |
Net realized and unrealized gain (loss) | $115,180,212 |
Change in net assets from operations | $116,911,706 |
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) | $1,731,494 | $4,322,833 |
Net realized gain (loss) | 45,799,138 | 25,229,917 |
Net unrealized gain (loss) | 69,381,074 | 66,669,474 |
Change in net assets from operations | $116,911,706 | $96,222,224 |
Total distributions to shareholders | $— | $(25,105,390) |
Change in net assets from fund share transactions | $(66,756,982) | $(23,803,177) |
Total change in net assets | $50,154,724 | $47,313,657 |
Net assets | ||
At beginning of period | 765,945,494 | 718,631,837 |
At end of period | $816,100,218 | $765,945,494 |
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 | $36.57 | $33.27 | $27.05 | $30.07 | $25.57 | $26.58 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.12 | $0.25 | $0.25 | $0.26 | $0.22 | $0.23(c) |
Net realized and unrealized gain (loss) | 5.73 | 4.26 | 8.08 | (1.71) | 5.62 | 2.01 |
Total from investment operations | $5.85 | $4.51 | $8.33 | $(1.45) | $5.84 | $2.24 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.21) | $(0.22) | $(0.20) | $(0.21) | $(0.24) |
From net realized gain | — | (1.00) | (1.89) | (1.37) | (1.13) | (3.01) |
Total distributions declared to shareholders | $— | $(1.21) | $(2.11) | $(1.57) | $(1.34) | $(3.25) |
Net asset value, end of period (x) | $42.42 | $36.57 | $33.27 | $27.05 | $30.07 | $25.57 |
Total return (%) (k)(r)(s)(x) | 16.00(n) | 13.87 | 31.58 | (5.49) | 23.35 | 8.59(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.80(a) | 0.80 | 0.80 | 0.80 | 0.82 | 0.80(c) |
Expenses after expense reductions (f) | 0.79(a) | 0.79 | 0.79 | 0.79 | 0.79 | 0.79(c) |
Net investment income (loss) | 0.60(a) | 0.78 | 0.80 | 0.86 | 0.79 | 0.89(c) |
Portfolio turnover | 5(n) | 19 | 18 | 16 | 18 | 20 |
Net assets at end of period (000 omitted) | $292,483 | $269,852 | $265,499 | $231,900 | $283,237 | $270,796 |
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 | $35.99 | $32.77 | $26.68 | $29.69 | $25.28 | $26.30 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.07 | $0.17 | $0.17 | $0.18 | $0.15 | $0.16(c) |
Net realized and unrealized gain (loss) | 5.64 | 4.19 | 7.97 | (1.68) | 5.55 | 1.98 |
Total from investment operations | $5.71 | $4.36 | $8.14 | $(1.50) | $5.70 | $2.14 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.14) | $(0.16) | $(0.14) | $(0.16) | $(0.15) |
From net realized gain | — | (1.00) | (1.89) | (1.37) | (1.13) | (3.01) |
Total distributions declared to shareholders | $— | $(1.14) | $(2.05) | $(1.51) | $(1.29) | $(3.16) |
Net asset value, end of period (x) | $41.70 | $35.99 | $32.77 | $26.68 | $29.69 | $25.28 |
Total return (%) (k)(r)(s)(x) | 15.87(n) | 13.60 | 31.25 | (5.71) | 23.03 | 8.32(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.05(a) | 1.05 | 1.05 | 1.05 | 1.07 | 1.04(c) |
Expenses after expense reductions (f) | 1.03(a) | 1.04 | 1.04 | 1.04 | 1.04 | 1.04(c) |
Net investment income (loss) | 0.35(a) | 0.53 | 0.55 | 0.62 | 0.55 | 0.64(c) |
Portfolio turnover | 5(n) | 19 | 18 | 16 | 18 | 20 |
Net assets at end of period (000 omitted) | $523,617 | $496,093 | $453,132 | $325,159 | $318,611 | $228,741 |
(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 | $809,452,991 | $— | $— | $809,452,991 |
Mutual Funds | 6,762,283 | — | — | 6,762,283 |
Total | $816,215,274 | $— | $— | $816,215,274 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $3,919,176 |
Long-term capital gains | 21,186,214 |
Total distributions | $25,105,390 |
As of 6/30/21 | |
Cost of investments | $357,024,004 |
Gross appreciation | 461,295,325 |
Gross depreciation | (2,104,055) |
Net unrealized appreciation (depreciation) | $459,191,270 |
As of 12/31/20 | |
Undistributed ordinary income | 4,410,501 |
Undistributed long-term capital gain | 25,400,697 |
Other temporary differences | 2,229,658 |
Net unrealized appreciation (depreciation) | 389,957,991 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $9,047,272 | |
Service Class | — | 16,058,118 | |
Total | $— | $25,105,390 |
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 | 68,665 | $2,691,400 | 284,529 | $8,347,359 | |
Service Class | 139,669 | 5,409,974 | 1,666,170 | 49,859,186 | |
208,334 | $8,101,374 | 1,950,699 | $58,206,545 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 267,829 | $9,047,272 | |
Service Class | — | — | 482,660 | 16,058,118 | |
— | $— | 750,489 | $25,105,390 | ||
Shares reacquired | |||||
Initial Class | (552,264) | $(21,808,935) | (1,154,860) | $(37,139,929) | |
Service Class | (1,364,847) | (53,049,421) | (2,192,948) | (69,975,183) | |
(1,917,111) | $(74,858,356) | (3,347,808) | $(107,115,112) | ||
Net change | |||||
Initial Class | (483,599) | $(19,117,535) | (602,502) | $(19,745,298) | |
Service Class | (1,225,178) | (47,639,447) | (44,118) | (4,057,879) | |
(1,708,777) | $(66,756,982) | (646,620) | $(23,803,177) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $2,722,233 | $65,180,538 | $61,140,488 | $— | $— | $6,762,283 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,187 | $— |
1 | |
2 | |
3 | |
4 | |
7 | |
8 | |
9 | |
10 | |
12 | |
19 | |
20 | |
20 | |
20 | |
20 |
Cadence Design Systems, Inc. | 2.9% |
Bright Horizons Family Solutions, Inc. | 2.6% |
PerkinElmer, Inc. | 2.5% |
Monolithic Power Systems, Inc. | 2.5% |
Take-Two Interactive Software, Inc. | 2.4% |
MSCI, Inc. | 2.2% |
Match Group, Inc. | 2.1% |
Verisk Analytics, Inc., “A” | 2.1% |
Copart, Inc. | 2.0% |
AMETEK, Inc. | 1.9% |
Information Technology | 25.0% |
Health Care | 19.5% |
Industrials | 18.9% |
Consumer Discretionary | 15.6% |
Communication Services | 7.5% |
Financials | 6.9% |
Materials | 3.3% |
Real Estate | 2.2% |
Consumer Staples | 0.3% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
(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 | 0.79% | $1,000.00 | $1,053.01 | $4.02 |
Hypothetical (h) | 0.79% | $1,000.00 | $1,020.88 | $3.96 | |
Service Class | Actual | 1.04% | $1,000.00 | $1,052.04 | $5.29 |
Hypothetical (h) | 1.04% | $1,000.00 | $1,019.64 | $5.21 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.2% | ||||
Aerospace & Defense – 0.9% | ||||
Howmet Aerospace, Inc. (a) | 119,531 | $ 4,120,234 | ||
Automotive – 2.2% | ||||
Copart, Inc. (a) | 61,320 | $ 8,083,816 | ||
LKQ Corp. (a) | 30,064 | 1,479,750 | ||
$9,563,566 | ||||
Biotechnology – 1.2% | ||||
Adaptive Biotechnologies Corp. (a) | 36,512 | $ 1,491,880 | ||
Alnylam Pharmaceuticals, Inc. (a) | 15,600 | 2,644,512 | ||
Exelixis, Inc. (a) | 54,051 | 984,809 | ||
$5,121,201 | ||||
Brokerage & Asset Managers – 2.3% | ||||
NASDAQ, Inc. | 38,257 | $ 6,725,581 | ||
Tradeweb Markets, Inc. | 41,236 | 3,486,916 | ||
$10,212,497 | ||||
Business Services – 10.3% | ||||
Clarivate PLC (a) | 245,542 | $ 6,759,771 | ||
CoStar Group, Inc. (a) | 64,154 | 5,313,234 | ||
Equifax, Inc. | 23,946 | 5,735,306 | ||
Global Payments, Inc. | 11,332 | 2,125,203 | ||
IHS Markit Ltd. | 9,734 | 1,096,632 | ||
MSCI, Inc. | 20,469 | 10,911,615 | ||
Paysafe Ltd. (a) | 64,996 | 787,102 | ||
Tyler Technologies, Inc. (a) | 12,589 | 5,694,886 | ||
Verisk Analytics, Inc., “A” | 41,058 | 7,173,654 | ||
$45,597,403 | ||||
Cable TV – 0.5% | ||||
Cable One, Inc. | 1,042 | $ 1,993,148 | ||
Computer Software – 12.0% | ||||
Autodesk, Inc. (a) | 20,752 | $ 6,057,509 | ||
Black Knight, Inc. (a) | 63,115 | 4,921,708 | ||
Bumble, Inc., “A” (a) | 32,587 | 1,877,011 | ||
Cadence Design Systems, Inc. (a) | 68,738 | 9,404,733 | ||
Coupa Software, Inc. (a) | 8,765 | 2,297,394 | ||
DocuSign, Inc. (a) | 12,143 | 3,394,818 | ||
Dragoneer Growth Opportunities Corp. (a)(zz) | 55,215 | 573,684 | ||
Dragoneer Growth Opportunities Corp. (PIPE) (a)(u)(w)(z) | 13,884 | 132,962 | ||
Dragoneer Growth Opportunities Corp. (SPAC) (a)(zz) | 23,803 | 237,078 | ||
Dun & Bradstreet Holdings, Inc. (a) | 112,849 | 2,411,583 | ||
Eventbrite, Inc. (a) | 78,407 | 1,489,733 | ||
Everbridge, Inc. (a) | 20,810 | 2,831,825 | ||
Okta, Inc. (a) | 14,049 | 3,437,509 | ||
Paylocity Holding Corp. (a) | 21,003 | 4,007,372 | ||
Qualtrics International, “A” (a) | 20,776 | 794,682 | ||
RingCentral, Inc. (a) | 10,083 | 2,929,918 | ||
Synopsys, Inc. (a) | 18,391 | 5,072,054 | ||
Topicus.com, Inc. (a) | 5,940 | 431,508 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Computer Software – continued | ||||
Unity Software, Inc. (a) | 4,220 | $ 463,483 | ||
$52,766,564 | ||||
Computer Software - Systems – 7.3% | ||||
Constellation Software, Inc. | 3,094 | $ 4,685,952 | ||
NICE Systems Ltd., ADR (a) | 24,808 | 6,138,988 | ||
ServiceNow, Inc. (a) | 7,878 | 4,329,355 | ||
Square, Inc., “A” (a) | 19,373 | 4,723,137 | ||
SS&C Technologies Holdings, Inc. | 29,443 | 2,121,663 | ||
TransUnion | 63,879 | 7,014,553 | ||
Wix.com Ltd. (a) | 11,166 | 3,241,266 | ||
$32,254,914 | ||||
Construction – 5.1% | ||||
AZEK Co. LLC (a) | 49,812 | $ 2,115,018 | ||
Builders FirstSource, Inc. (a) | 60,581 | 2,584,385 | ||
Lennox International, Inc. | 10,702 | 3,754,262 | ||
Pool Corp. | 15,508 | 7,112,899 | ||
Vulcan Materials Co. | 38,542 | 6,709,006 | ||
$22,275,570 | ||||
Consumer Products – 1.2% | ||||
Scotts Miracle-Gro Co. | 27,197 | $ 5,219,648 | ||
Consumer Services – 2.7% | ||||
Bright Horizons Family Solutions, Inc. (a) | 57,097 | $ 8,399,540 | ||
Peloton Interactive, Inc., “A” (a) | 28,756 | 3,566,319 | ||
$11,965,859 | ||||
Containers – 0.6% | ||||
Ball Corp. | 33,046 | $ 2,677,387 | ||
Electrical Equipment – 2.7% | ||||
AMETEK, Inc. | 66,732 | $ 8,908,722 | ||
Littlefuse, Inc. | 11,345 | 2,890,592 | ||
$11,799,314 | ||||
Electronics – 5.9% | ||||
ASM International N.V. | 9,422 | $ 3,094,682 | ||
Entegris, Inc. | 58,435 | 7,185,752 | ||
MKS Instruments, Inc. | 21,244 | 3,780,370 | ||
Monolithic Power Systems, Inc. | 28,108 | 10,496,933 | ||
Silicon Laboratories, Inc. (a) | 10,677 | 1,636,250 | ||
$26,193,987 | ||||
Food & Beverages – 0.3% | ||||
Oatly Group AB, ADR (a) | 62,513 | $ 1,529,068 | ||
Gaming & Lodging – 2.5% | ||||
Caesars Entertainment, Inc. (a) | 30,835 | $ 3,199,131 | ||
DraftKings, Inc. (a) | 18,174 | 948,138 | ||
Penn National Gaming, Inc. (a) | 31,686 | 2,423,662 | ||
Red Rock Resorts, Inc. (a) | 66,485 | 2,825,613 | ||
Vail Resorts, Inc. (a) | 4,637 | 1,467,703 | ||
$10,864,247 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
General Merchandise – 0.7% | ||||
Five Below, Inc. (a) | 15,393 | $ 2,975,005 | ||
Insurance – 1.7% | ||||
Arthur J. Gallagher & Co. | 52,654 | $ 7,375,772 | ||
Internet – 3.4% | ||||
IAC/InterActiveCorp (a) | 24,700 | $ 3,807,999 | ||
Match Group, Inc. (a) | 57,889 | 9,334,601 | ||
Vimeo, Inc. (a) | 40,099 | 1,964,851 | ||
$15,107,451 | ||||
Leisure & Toys – 2.6% | ||||
Electronic Arts, Inc. | 13,668 | $ 1,965,868 | ||
Roblox Corp., “A” (a) | 17,324 | 1,558,814 | ||
Take-Two Interactive Software, Inc. (a) | 44,038 | 7,795,607 | ||
$11,320,289 | ||||
Machinery & Tools – 1.7% | ||||
IDEX Corp. | 29,505 | $ 6,492,575 | ||
Roper Technologies, Inc. | 1,773 | 833,665 | ||
$7,326,240 | ||||
Medical & Health Technology & Services – 6.0% | ||||
Charles River Laboratories International, Inc. (a) | 28,444 | $ 10,522,005 | ||
Guardant Health, Inc. (a) | 21,072 | 2,616,932 | ||
HealthEquity, Inc. (a) | 12,696 | 1,021,774 | ||
ICON PLC (a) | 29,122 | 6,019,809 | ||
IDEXX Laboratories, Inc. (a) | 6,360 | 4,016,658 | ||
LifeStance Health Group, Inc. (a) | 34,162 | 951,753 | ||
Quest Diagnostics, Inc. | 8,353 | 1,102,345 | ||
$26,251,276 | ||||
Medical Equipment – 11.9% | ||||
Agilent Technologies, Inc. | 34,565 | $ 5,109,052 | ||
Align Technology, Inc. (a) | 7,925 | 4,842,175 | ||
Bio-Techne Corp. | 17,272 | 7,776,891 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 69,040 | 2,881,039 | ||
Masimo Corp. (a) | 19,471 | 4,720,744 | ||
Mettler-Toledo International, Inc. (a) | 1,417 | 1,963,027 | ||
PerkinElmer, Inc. | 71,888 | 11,100,226 | ||
STERIS PLC | 39,754 | 8,201,250 | ||
West Pharmaceutical Services, Inc. | 16,588 | 5,956,751 | ||
$52,551,155 | ||||
Network & Telecom – 0.9% | ||||
CoreSite Realty Corp., REIT | 29,825 | $ 4,014,445 | ||
Other Banks & Diversified Financials – 0.4% | ||||
Altimeter Growth Corp. (a) | 65,079 | $ 800,472 | ||
Altimeter Growth Corp. 2 (a) | 60,282 | 617,890 | ||
Catalyst Partners Acquisition Corp. (a) | 41,381 | 415,465 | ||
$1,833,827 | ||||
Pharmaceuticals – 0.5% | ||||
Ascendis Pharma (a) | 16,732 | $ 2,201,095 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Pollution Control – 0.5% | ||||
Waste Connections, Inc. | 20,112 | $ 2,401,976 | ||
Printing & Publishing – 1.6% | ||||
Warner Music Group Corp. | 31,256 | $ 1,126,466 | ||
Wolters Kluwer N.V. | 58,357 | 5,862,355 | ||
$6,988,821 | ||||
Railroad & Shipping – 0.6% | ||||
Kansas City Southern Co. | 9,583 | $ 2,715,535 | ||
Real Estate – 0.5% | ||||
Extra Space Storage, Inc., REIT | 13,882 | $ 2,274,149 | ||
Restaurants – 2.1% | ||||
Chipotle Mexican Grill, Inc., “A” (a) | 3,371 | $ 5,226,196 | ||
Domino's Pizza, Inc. | 8,815 | 4,112,109 | ||
$9,338,305 | ||||
Specialty Stores – 5.6% | ||||
Burlington Stores, Inc. (a) | 20,575 | $ 6,624,944 | ||
Chewy, Inc., “A” (a) | 34,711 | 2,766,814 | ||
Lululemon Athletica, Inc. (a) | 13,246 | 4,834,393 | ||
O'Reilly Automotive, Inc. (a) | 6,188 | 3,503,707 | ||
Petco Health & Wellness Co., Inc. (a) | 18,468 | 413,868 | ||
Tractor Supply Co. | 14,742 | 2,742,897 | ||
Ulta Beauty, Inc. (a) | 11,369 | 3,931,059 | ||
$24,817,682 | ||||
Telecommunications - Wireless – 0.8% | ||||
SBA Communications Corp., REIT | 10,943 | $ 3,487,534 | ||
Total Common Stocks (Identified Cost, $210,732,899) | $437,135,164 |
Strike Price | First Exercise | |||
Warrants – 0.0% | ||||
Business Services – 0.0% | ||||
Paysafe Ltd. (1 share for 1 warrant, Expiration 12/31/28) (a) (Identified Cost, $74,706) | $11.50 | 4/16/21 | 22,336 | $ 79,963 |
Investment Companies (h) – 0.1% | ||||
Money Market Funds – 0.1% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $303,151) | 303,151 | $ 303,151 | ||
Other Assets, Less Liabilities – 0.7% | 3,108,568 | |||
Net Assets – 100.0% | $440,626,846 |
(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 $303,151 and $437,215,127, respectively. |
(u) | The security was valued using significant unobservable inputs and is considered level 3 under the fair value hierarchy. For further information about the fund’s level 3 holdings, please see Note 2 in the Notes to Financial Statements. |
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
(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 |
Dragoneer Growth Opportunities Corp. (PIPE) | 2/02/21 | $138,840 | $132,962 |
% of Net assets | 0.0% |
(zz) | Securities subject to a restriction on resale. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
PIPE | Private Investment in Public Equity |
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, $210,807,605) | $437,215,127 |
Investments in affiliated issuers, at value (identified cost, $303,151) | 303,151 |
Cash | 138,840 |
Receivables for | |
Investments sold | 4,204,055 |
Fund shares sold | 209,744 |
Interest and dividends | 127,394 |
Other assets | 1,253 |
Total assets | $442,199,564 |
Liabilities | |
Payables for | |
Fund shares reacquired | $1,344,897 |
When-issued investments purchased | 138,840 |
Payable to affiliates | |
Investment adviser | 17,909 |
Administrative services fee | 376 |
Shareholder servicing costs | 261 |
Distribution and/or service fees | 1,864 |
Accrued expenses and other liabilities | 68,571 |
Total liabilities | $1,572,718 |
Net assets | $440,626,846 |
Net assets consist of | |
Paid-in capital | $99,362,582 |
Total distributable earnings (loss) | 341,264,264 |
Net assets | $440,626,846 |
Shares of beneficial interest outstanding | 34,095,831 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $305,283,432 | 22,939,937 | $13.31 |
Service Class | 135,343,414 | 11,155,894 | 12.13 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $788,521 |
Other | 7,831 |
Income on securities loaned | 1,313 |
Dividends from affiliated issuers | 793 |
Foreign taxes withheld | (14,705) |
Total investment income | $783,753 |
Expenses | |
Management fee | $1,611,288 |
Distribution and/or service fees | 161,016 |
Shareholder servicing costs | 11,692 |
Administrative services fee | 32,919 |
Independent Trustees' compensation | 4,196 |
Custodian fee | 13,492 |
Shareholder communications | 11,391 |
Audit and tax fees | 29,711 |
Legal fees | 1,592 |
Miscellaneous | 13,381 |
Total expenses | $1,890,678 |
Reduction of expenses by investment adviser | (25,629) |
Net expenses | $1,865,049 |
Net investment income (loss) | $(1,081,296) |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $28,525,501 |
Foreign currency | 1,600 |
Net realized gain (loss) | $28,527,101 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(4,710,903) |
Translation of assets and liabilities in foreign currencies | (1,676) |
Net unrealized gain (loss) | $(4,712,579) |
Net realized and unrealized gain (loss) | $23,814,522 |
Change in net assets from operations | $22,733,226 |
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) | $(1,081,296) | $(1,271,494) |
Net realized gain (loss) | 28,527,101 | 88,862,036 |
Net unrealized gain (loss) | (4,712,579) | 39,918,078 |
Change in net assets from operations | $22,733,226 | $127,508,620 |
Total distributions to shareholders | $— | $(29,460,280) |
Change in net assets from fund share transactions | $(25,939,318) | $(48,232,077) |
Total change in net assets | $(3,206,092) | $49,816,263 |
Net assets | ||
At beginning of period | 443,832,938 | 394,016,675 |
At end of period | $440,626,846 | $443,832,938 |
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 | $12.64 | $9.96 | $8.23 | $9.51 | $7.96 | $8.21 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.03) | $(0.03) | $(0.01) | $(0.02) | $(0.01) | $0.01(c) |
Net realized and unrealized gain (loss) | 0.70 | 3.53 | 3.10 | 0.39 | 2.11 | 0.41 |
Total from investment operations | $0.67 | $3.50 | $3.09 | $0.37 | $2.10 | $0.42 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $— | $— | $— | $(0.01) | $— |
From net realized gain | — | (0.82) | (1.36) | (1.65) | (0.54) | (0.67) |
Total distributions declared to shareholders | $— | $(0.82) | $(1.36) | $(1.65) | $(0.55) | $(0.67) |
Net asset value, end of period (x) | $13.31 | $12.64 | $9.96 | $8.23 | $9.51 | $7.96 |
Total return (%) (k)(r)(s)(x) | 5.30(n) | 36.48 | 38.66 | 1.24 | 27.00 | 4.91(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.81(a) | 0.81 | 0.81 | 0.81 | 0.81 | 0.75(c) |
Expenses after expense reductions (f) | 0.79(a) | 0.80 | 0.80 | 0.80 | 0.80 | 0.74(c) |
Net investment income (loss) | (0.43)(a) | (0.26) | (0.07) | (0.18) | (0.15) | 0.15(c) |
Portfolio turnover | 11(n) | 40 | 17 | 21 | 32 | 37 |
Net assets at end of period (000 omitted) | $305,283 | $311,988 | $290,512 | $247,614 | $297,463 | $294,226 |
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 | $11.53 | $9.17 | $7.68 | $8.99 | $7.56 | $7.85 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.04) | $(0.05) | $(0.03) | $(0.04) | $(0.03) | $(0.01)(c) |
Net realized and unrealized gain (loss) | 0.64 | 3.23 | 2.88 | 0.38 | 2.00 | 0.39 |
Total from investment operations | $0.60 | $3.18 | $2.85 | $0.34 | $1.97 | $0.38 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $— | $— | $— | $— | $— |
From net realized gain | — | (0.82) | (1.36) | (1.65) | (0.54) | (0.67) |
Total distributions declared to shareholders | $— | $(0.82) | $(1.36) | $(1.65) | $(0.54) | $(0.67) |
Net asset value, end of period (x) | $12.13 | $11.53 | $9.17 | $7.68 | $8.99 | $7.56 |
Total return (%) (k)(r)(s)(x) | 5.20(n) | 36.12 | 38.28 | 0.95 | 26.68 | 4.62(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.05(a) | 1.06 | 1.06 | 1.06 | 1.06 | 0.99(c) |
Expenses after expense reductions (f) | 1.04(a) | 1.05 | 1.05 | 1.05 | 1.05 | 0.99(c) |
Net investment income (loss) | (0.68)(a) | (0.51) | (0.32) | (0.43) | (0.40) | (0.08)(c) |
Portfolio turnover | 11(n) | 40 | 17 | 21 | 32 | 37 |
Net assets at end of period (000 omitted) | $135,343 | $131,845 | $103,504 | $86,560 | $100,052 | $87,529 |
(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 | $396,244,763 | $— | $132,962 | $396,377,725 |
Israel | 9,380,254 | — | — | 9,380,254 |
Netherlands | 8,957,037 | — | — | 8,957,037 |
Canada | 7,519,436 | — | — | 7,519,436 |
United Kingdom | 6,759,771 | — | — | 6,759,771 |
Ireland | 6,019,809 | — | — | 6,019,809 |
Denmark | 2,201,095 | — | — | 2,201,095 |
Mutual Funds | 303,151 | — | — | 303,151 |
Total | $437,385,316 | $— | $132,962 | $437,518,278 |
Equity Securities | |
Balance as of 12/31/20 | $— |
Purchases | 132,962 |
Balance as of 6/30/21 | $132,962 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $1,520,227 |
Long-term capital gains | 27,940,053 |
Total distributions | $29,460,280 |
As of 6/30/21 | |
Cost of investments | $211,793,785 |
Gross appreciation | 227,350,008 |
Gross depreciation | (1,625,515) |
Net unrealized appreciation (depreciation) | $225,724,493 |
As of 12/31/20 | |
Undistributed ordinary income | 1,059,807 |
Undistributed long-term capital gain | 87,002,534 |
Other temporary differences | 5,276 |
Net unrealized appreciation (depreciation) | 230,463,421 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $20,588,572 | |
Service Class | — | 8,871,708 | |
Total | $— | $29,460,280 |
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 | 931,204 | $11,748,058 | 2,228,807 | $21,405,127 | |
Service Class | 1,431,727 | 16,460,623 | 3,158,059 | 30,335,847 | |
2,362,931 | $28,208,681 | 5,386,866 | $51,740,974 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 1,877,652 | $20,372,526 | |
Service Class | — | — | 895,228 | 8,871,708 | |
— | $— | 2,772,880 | $29,244,234 | ||
Shares reacquired | |||||
Initial Class | (2,680,957) | $(34,323,417) | (8,598,413) | $(91,175,151) | |
Service Class | (1,706,755) | (19,824,582) | (3,909,750) | (38,042,134) | |
(4,387,712) | $(54,147,999) | (12,508,163) | $(129,217,285) | ||
Net change | |||||
Initial Class | (1,749,753) | $(22,575,359) | (4,491,954) | $(49,397,498) | |
Service Class | (275,028) | (3,363,959) | 143,537 | 1,165,421 | |
(2,024,781) | $(25,939,318) | (4,348,417) | $(48,232,077) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $2,635,619 | $36,192,135 | $38,524,603 | $— | $— | $303,151 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $793 | $— |
1 | |
2 | |
3 | |
4 | |
7 | |
8 | |
9 | |
10 | |
12 | |
18 | |
19 | |
19 | |
19 | |
19 |
Rapid7, Inc. | 2.0% |
CACI International, Inc., “A” | 2.0% |
Nuvei Corp. | 1.9% |
Q2 Holdings, Inc. | 1.8% |
Advanced Energy Industries, Inc. | 1.6% |
Focus Financial Partners, “A” | 1.5% |
Leslie’s, Inc. | 1.5% |
CoreSite Realty Corp., REIT | 1.5% |
Everbridge, Inc. | 1.4% |
Ritchie Bros. Auctioneers, Inc. | 1.4% |
Information Technology | 25.8% |
Health Care | 22.1% |
Industrials | 17.5% |
Consumer Discretionary | 12.7% |
Financials | 9.1% |
Real Estate | 4.5% |
Materials | 2.2% |
Consumer Staples | 2.0% |
Communication Services | 0.9% |
Energy | 0.1% |
(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. |
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 | $1,088.65 | $4.51 |
Hypothetical (h) | 0.87% | $1,000.00 | $1,020.48 | $4.36 | |
Service Class | Actual | 1.12% | $1,000.00 | $1,087.68 | $5.80 |
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 – 96.9% | ||||
Aerospace & Defense – 2.5% | ||||
CACI International, Inc., “A” (a) | 87,257 | $ 22,261,006 | ||
Kratos Defense & Security Solutions, Inc. (a) | 180,125 | 5,131,761 | ||
$27,392,767 | ||||
Airlines – 1.2% | ||||
JetBlue Airways Corp. (a) | 777,305 | $ 13,043,178 | ||
Apparel Manufacturers – 1.4% | ||||
Skechers USA, Inc., “A” (a) | 300,839 | $ 14,990,807 | ||
Automotive – 0.5% | ||||
Visteon Corp. (a) | 48,413 | $ 5,855,068 | ||
Biotechnology – 5.7% | ||||
Abcam PLC (a) | 437,518 | $ 8,358,069 | ||
Adaptive Biotechnologies Corp. (a) | 119,610 | 4,887,265 | ||
AlloVir, Inc. (a) | 150,258 | 2,966,093 | ||
Amicus Therapeutics, Inc. (a) | 299,955 | 2,891,566 | ||
Berkeley Lights, Inc. (a) | 89,624 | 4,016,051 | ||
BioAtla, Inc. (a) | 101,226 | 4,289,958 | ||
BioXcel Therapeutics, Inc. (a) | 71,260 | 2,070,816 | ||
BridgeBio Pharma, Inc. (a) | 107,099 | 6,528,755 | ||
Immunocore Holdings PLC, ADR (a) | 23,070 | 900,884 | ||
Lyell Immunopharma, Inc. (a) | 234,046 | 3,800,907 | ||
Morphosys AG, ADR (a) | 56,980 | 1,096,865 | ||
Neurocrine Biosciences, Inc. (a) | 34,755 | 3,382,357 | ||
Olink Holding AB (a) | 116,674 | 4,015,919 | ||
Prelude Therapeutics, Inc. (a) | 89,645 | 2,566,536 | ||
Recursion Pharmaceuticals, Inc. (a) | 233,448 | 8,520,852 | ||
Sana Biotechnology, Inc. (a) | 115,281 | 2,266,424 | ||
$62,559,317 | ||||
Brokerage & Asset Managers – 4.6% | ||||
Focus Financial Partners, “A” (a) | 346,806 | $ 16,820,091 | ||
GCM Grosvenor, Inc. | 286,515 | 2,985,486 | ||
GCM Grosvenor, Inc. (PIPE) (a)(zz) | 521,924 | 5,438,448 | ||
Hamilton Lane, Inc., “A” | 83,371 | 7,596,766 | ||
TMX Group Ltd. | 54,060 | 5,710,404 | ||
WisdomTree Investments, Inc. | 1,946,145 | 12,066,099 | ||
$50,617,294 | ||||
Business Services – 11.1% | ||||
Endava PLC, ADR (a) | 126,752 | $ 14,371,142 | ||
EVO Payments, Inc., “A” (a) | 518,897 | 14,394,203 | ||
ExlService Holdings, Inc. (a) | 141,365 | 15,021,445 | ||
Keywords Studios PLC (a) | 387,839 | 13,358,792 | ||
Nuvei Corp. (a) | 260,080 | 21,456,600 | ||
Stamps.com, Inc. (a) | 63,365 | 12,691,376 | ||
TaskUs, Inc., “A” (a) | 169,702 | 5,810,596 | ||
TriNet Group, Inc. (a) | 149,816 | 10,858,663 | ||
WNS (Holdings) Ltd., ADR (a) | 185,109 | 14,784,656 | ||
$122,747,473 | ||||
Chemicals – 1.1% | ||||
Ingevity Corp. (a) | 150,603 | $ 12,253,060 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Computer Software – 10.8% | ||||
8x8, Inc. (a) | 341,831 | $ 9,489,228 | ||
Alkami Technology, Inc. (a) | 175,631 | 6,264,758 | ||
Avalara, Inc. (a) | 30,344 | 4,909,659 | ||
DoubleVerify Holdings, Inc. (a) | 245,646 | 10,400,652 | ||
Everbridge, Inc. (a) | 115,647 | 15,737,244 | ||
nCino, Inc. (a) | 116,311 | 6,969,355 | ||
Open Lending Corp., “A” (a) | 260,398 | 11,220,550 | ||
Pagerduty, Inc. (a) | 262,901 | 11,194,325 | ||
Paylocity Holding Corp. (a) | 51,072 | 9,744,538 | ||
Ping Identity Holding Corp. (a) | 358,857 | 8,217,825 | ||
Procore Technologies, Inc. (a) | 64,844 | 6,156,938 | ||
VERTEX, Inc. (a) | 628,992 | 13,800,084 | ||
Zendesk, Inc. (a) | 38,060 | 5,493,580 | ||
$119,598,736 | ||||
Computer Software - Systems – 3.8% | ||||
Q2 Holdings, Inc. (a) | 194,176 | $ 19,918,574 | ||
Rapid7, Inc. (a) | 239,110 | 22,626,979 | ||
$42,545,553 | ||||
Construction – 2.7% | ||||
AZEK Co. LLC (a) | 324,070 | $ 13,760,012 | ||
Latch, Inc. (a) | 690,509 | 8,472,546 | ||
Trex Co., Inc. (a) | 77,128 | 7,883,253 | ||
$30,115,811 | ||||
Consumer Services – 1.2% | ||||
Boyd Group Services, Inc. | 38,169 | $ 6,945,921 | ||
Bright Horizons Family Solutions, Inc. (a) | 45,484 | 6,691,151 | ||
$13,637,072 | ||||
Containers – 1.2% | ||||
Gerresheimer AG | 118,556 | $ 13,108,879 | ||
Electrical Equipment – 3.7% | ||||
Advanced Drainage Systems, Inc. | 59,485 | $ 6,934,166 | ||
Generac Holdings, Inc. (a) | 34,846 | 14,466,317 | ||
Littlefuse, Inc. | 22,523 | 5,738,635 | ||
Sensata Technologies Holding PLC (a) | 229,815 | 13,322,376 | ||
$40,461,494 | ||||
Electronics – 2.4% | ||||
Advanced Energy Industries, Inc. | 156,559 | $ 17,645,765 | ||
Silicon Laboratories, Inc. (a) | 56,805 | 8,705,366 | ||
$26,351,131 | ||||
Entertainment – 0.9% | ||||
Manchester United PLC, “A” (l) | 644,801 | $ 9,794,527 | ||
Food & Beverages – 2.0% | ||||
Duckhorn Portfolio, Inc. (a) | 406,237 | $ 8,961,588 | ||
Laird Superfood, Inc. (a) | 60,745 | 1,814,453 | ||
Oatly Group AB, ADR (a) | 449,251 | 10,988,680 | ||
$21,764,721 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Gaming & Lodging – 1.7% | ||||
Genius Sports Ltd. (SPAC) (a) | 692,106 | $ 12,990,830 | ||
Penn National Gaming, Inc. (a) | 77,995 | 5,965,837 | ||
$18,956,667 | ||||
General Merchandise – 0.4% | ||||
Ollie's Bargain Outlet Holdings, Inc. (a) | 52,097 | $ 4,382,921 | ||
Insurance – 0.7% | ||||
Metromile, Inc. (a)(l) | 873,290 | $ 7,990,603 | ||
Internet – 0.7% | ||||
Talkspace, Inc. (a) | 871,635 | $ 7,243,287 | ||
Leisure & Toys – 1.5% | ||||
Malibu Boats, Inc., “A” (a) | 166,266 | $ 12,192,286 | ||
Thule Group AB | 106,714 | 4,730,874 | ||
$16,923,160 | ||||
Machinery & Tools – 1.6% | ||||
Ritchie Bros. Auctioneers, Inc. | 262,905 | $ 15,585,008 | ||
Xometry, Inc., “A” (a) | 27,636 | 2,415,110 | ||
$18,000,118 | ||||
Medical & Health Technology & Services – 8.1% | ||||
Certara, Inc. (a) | 529,297 | $ 14,994,984 | ||
Charles River Laboratories International, Inc. (a) | 35,302 | 13,058,916 | ||
Guardant Health, Inc. (a) | 35,020 | 4,349,134 | ||
Health Catalyst, Inc. (a) | 81,853 | 4,543,660 | ||
HealthEquity, Inc. (a) | 128,042 | 10,304,820 | ||
ICON PLC (a) | 58,507 | 12,093,982 | ||
LifeStance Health Group, Inc. (a) | 367,285 | 10,232,560 | ||
PRA Health Sciences, Inc. (a) | 30,945 | 5,112,423 | ||
Syneos Health, Inc. (a) | 170,696 | 15,275,585 | ||
$89,966,064 | ||||
Medical Equipment – 3.5% | ||||
Acutus Medical, Inc. (a)(l) | 265,012 | $ 4,499,904 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 248,149 | 10,355,258 | ||
Nevro Corp. (a) | 51,830 | 8,592,896 | ||
OptiNose, Inc. (a) | 438,959 | 1,365,162 | ||
Outset Medical, Inc. (a) | 98,220 | 4,909,036 | ||
PerkinElmer, Inc. | 36,784 | 5,679,817 | ||
Silk Road Medical, Inc. (a) | 66,129 | 3,164,934 | ||
$38,567,007 | ||||
Network & Telecom – 1.5% | ||||
CoreSite Realty Corp., REIT | 121,995 | $ 16,420,527 | ||
Other Banks & Diversified Financials – 2.8% | ||||
Bank OZK | 139,420 | $ 5,877,947 | ||
LegalZoom.com, Inc. (a) | 136,356 | 5,161,075 | ||
Payoneer Global, Inc. (a) | 904,213 | 9,376,689 | ||
Prosperity Bancshares, Inc. | 114,521 | 8,222,608 | ||
TPG Pace Tech Opportunities Corp. (SPAC) (a) | 253,565 | 2,517,900 | ||
$31,156,219 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Pharmaceuticals – 2.4% | ||||
Annexon, Inc. (a) | 175,410 | $ 3,948,479 | ||
Collegium Pharmaceutical, Inc. (a) | 180,963 | 4,277,965 | ||
Harmony Biosciences Holdings (a) | 161,779 | 4,567,021 | ||
Orchard RX Ltd., ADR (a) | 123,902 | 543,930 | ||
SpringWorks Therapeutics, Inc. (a) | 95,765 | 7,891,994 | ||
Turning Point Therapeutics, Inc. (a) | 67,509 | 5,267,052 | ||
$26,496,441 | ||||
Pollution Control – 0.8% | ||||
GFL Environmental, Inc. | 293,037 | $ 9,353,741 | ||
Railroad & Shipping – 0.1% | ||||
StealthGas, Inc. (a) | 442,589 | $ 1,252,527 | ||
Real Estate – 3.0% | ||||
Big Yellow Group PLC, REIT | 482,968 | $ 8,731,931 | ||
Industrial Logistics Properties Trust, REIT | 349,427 | 9,134,022 | ||
STAG Industrial, Inc., REIT | 406,634 | 15,220,311 | ||
$33,086,264 | ||||
Specialty Chemicals – 1.4% | ||||
Axalta Coating Systems Ltd. (a) | 396,033 | $ 12,075,046 | ||
Rogers Corp. (a) | 14,237 | 2,858,790 | ||
$14,933,836 | ||||
Specialty Stores – 4.7% | ||||
ACV Auctions, Inc. (a) | 497,963 | $ 12,762,792 | ||
Leslie's, Inc. (a) | 611,196 | 16,801,778 | ||
Petco Health & Wellness Co., Inc. (a) | 327,416 | 7,337,392 | ||
ThredUp, Inc. (a) | 313,108 | 9,105,181 | ||
Vroom, Inc. (a) | 151,435 | 6,339,069 | ||
$52,346,212 | ||||
Trucking – 3.0% | ||||
CryoPort, Inc. (a) | 225,649 | $ 14,238,452 | ||
Knight-Swift Transportation Holdings, Inc. | 251,961 | 11,454,147 | ||
Schneider National, Inc. | 344,409 | 7,497,784 | ||
$33,190,383 | ||||
Utilities - Electric Power – 2.2% | ||||
Array Technologies, Inc. (a) | 661,446 | $ 10,318,558 | ||
Shoals Technologies Group, Inc. (a) | 407,915 | 14,480,982 | ||
$24,799,540 | ||||
Total Common Stocks (Identified Cost, $767,908,522) | $1,071,902,405 | |||
Investment Companies (h) – 3.4% | ||||
Money Market Funds – 3.4% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $37,805,766) | 37,805,766 | $ 37,805,766 |
Issuer | Shares/Par | Value ($) | ||
Collateral for Securities Loaned – 0.2% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio, 0.02% (j) (Identified Cost, $2,585,086) | 2,585,086 | $ 2,585,086 | ||
Other Assets, Less Liabilities – (0.5)% | (5,697,472) | |||
Net Assets – 100.0% | $1,106,595,785 |
(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 $37,805,766 and $1,074,487,491, 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. | |||
(zz) | Securities subject to a restriction on resale. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
PIPE | Private Investment in Public Equity |
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, including $3,554,576 of securities on loan (identified cost, $770,493,608) | $1,074,487,491 |
Investments in affiliated issuers, at value (identified cost, $37,805,766) | 37,805,766 |
Cash | 480,368 |
Receivables for | |
Investments sold | 3,127,584 |
Fund shares sold | 596,097 |
Interest and dividends | 529,095 |
Receivable from investment adviser | 8,556 |
Other assets | 2,617 |
Total assets | $1,117,037,574 |
Liabilities | |
Payables for | |
Investments purchased | $6,804,784 |
Fund shares reacquired | 880,926 |
Collateral for securities loaned, at value (c) | 2,585,086 |
Payable to affiliates | |
Administrative services fee | 853 |
Shareholder servicing costs | 743 |
Distribution and/or service fees | 8,613 |
Accrued expenses and other liabilities | 160,784 |
Total liabilities | $10,441,789 |
Net assets | $1,106,595,785 |
Net assets consist of | |
Paid-in capital | $491,025,745 |
Total distributable earnings (loss) | 615,570,040 |
Net assets | $1,106,595,785 |
Shares of beneficial interest outstanding | 40,667,996 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $481,022,758 | 16,353,828 | $29.41 |
Service Class | 625,573,027 | 24,314,168 | 25.73 |
(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 | $2,093,125 |
Income on securities loaned | 168,474 |
Other | 65,698 |
Dividends from affiliated issuers | 6,573 |
Foreign taxes withheld | (75,360) |
Total investment income | $2,258,510 |
Expenses | |
Management fee | $4,739,648 |
Distribution and/or service fees | 741,894 |
Shareholder servicing costs | 26,785 |
Administrative services fee | 73,170 |
Independent Trustees' compensation | 8,557 |
Custodian fee | 29,466 |
Shareholder communications | 45,439 |
Audit and tax fees | 30,093 |
Legal fees | 3,280 |
Miscellaneous | 16,633 |
Total expenses | $5,714,965 |
Reduction of expenses by investment adviser | (354,389) |
Net expenses | $5,360,576 |
Net investment income (loss) | $(3,102,066) |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $145,949,918 |
Affiliated issuers | 31 |
Foreign currency | 6,529 |
Net realized gain (loss) | $145,956,478 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(51,122,016) |
Affiliated issuers | (31) |
Translation of assets and liabilities in foreign currencies | (4,755) |
Net unrealized gain (loss) | $(51,126,802) |
Net realized and unrealized gain (loss) | $94,829,676 |
Change in net assets from operations | $91,727,610 |
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) | $(3,102,066) | $(3,663,059) |
Net realized gain (loss) | 145,956,478 | 176,399,666 |
Net unrealized gain (loss) | (51,126,802) | 163,806,112 |
Change in net assets from operations | $91,727,610 | $336,542,719 |
Total distributions to shareholders | $— | $(81,295,168) |
Change in net assets from fund share transactions | $(35,722,617) | $(20,182,105) |
Total change in net assets | $56,004,993 | $235,065,446 |
Net assets | ||
At beginning of period | 1,050,590,792 | 815,525,346 |
At end of period | $1,106,595,785 | $1,050,590,792 |
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 | $26.96 | $20.28 | $17.46 | $20.10 | $16.18 | $15.49 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.06) | $(0.06) | $(0.07) | $(0.09) | $(0.07) | $0.00(c)(w) |
Net realized and unrealized gain (loss) | 2.51 | 8.84 | 6.89 | 0.35 | 4.34 | 1.40 |
Total from investment operations | $2.45 | $8.78 | $6.82 | $0.26 | $4.27 | $1.40 |
Less distributions declared to shareholders | ||||||
From net realized gain | $— | $(2.10) | $(4.00) | $(2.90) | $(0.35) | $(0.71) |
Net asset value, end of period (x) | $29.41 | $26.96 | $20.28 | $17.46 | $20.10 | $16.18 |
Total return (%) (k)(r)(s)(x) | 9.09(n) | 45.89 | 41.70 | (1.48) | 26.65 | 9.05(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.94(a) | 0.95 | 0.95 | 0.96 | 0.97 | 0.94(c) |
Expenses after expense reductions (f) | 0.87(a) | 0.91 | 0.94 | 0.94 | 0.94 | 0.92(c) |
Net investment income (loss) | (0.45)(a) | (0.30) | (0.33) | (0.43) | (0.37) | 0.02(c) |
Portfolio turnover | 40(n) | 80 | 54 | 71 | 58 | 63 |
Net assets at end of period (000 omitted) | $481,023 | $465,663 | $343,133 | $272,039 | $316,949 | $292,368 |
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 | $23.61 | $18.02 | $15.91 | $18.57 | $15.01 | $14.45 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.08) | $(0.10) | $(0.11) | $(0.13) | $(0.10) | $(0.03)(c) |
Net realized and unrealized gain (loss) | 2.20 | 7.79 | 6.22 | 0.37 | 4.01 | 1.30 |
Total from investment operations | $2.12 | $7.69 | $6.11 | $0.24 | $3.91 | $1.27 |
Less distributions declared to shareholders | ||||||
From net realized gain | $— | $(2.10) | $(4.00) | $(2.90) | $(0.35) | $(0.71) |
Net asset value, end of period (x) | $25.73 | $23.61 | $18.02 | $15.91 | $18.57 | $15.01 |
Total return (%) (k)(r)(s)(x) | 8.98(n) | 45.58 | 41.27 | (1.72) | 26.33 | 8.80(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.19(a) | 1.20 | 1.20 | 1.21 | 1.22 | 1.19(c) |
Expenses after expense reductions (f) | 1.12(a) | 1.16 | 1.19 | 1.19 | 1.19 | 1.17(c) |
Net investment income (loss) | (0.69)(a) | (0.56) | (0.58) | (0.68) | (0.62) | (0.23)(c) |
Portfolio turnover | 40(n) | 80 | 54 | 71 | 58 | 63 |
Net assets at end of period (000 omitted) | $625,573 | $584,928 | $472,393 | $358,912 | $432,897 | $380,884 |
(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: | ||||
United States | $881,467,880 | $5,438,448 | $— | $886,906,328 |
United Kingdom | 69,050,105 | — | — | 69,050,105 |
Canada | 59,051,674 | — | — | 59,051,674 |
India | 14,784,656 | — | — | 14,784,656 |
Germany | 14,205,744 | — | — | 14,205,744 |
Ireland | 12,093,982 | — | — | 12,093,982 |
Sweden | 8,746,793 | — | — | 8,746,793 |
Philippines | 5,810,596 | — | — | 5,810,596 |
Greece | 1,252,527 | — | — | 1,252,527 |
Mutual Funds | 40,390,852 | — | — | 40,390,852 |
Total | $1,106,854,809 | $5,438,448 | $— | $1,112,293,257 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $24,424,056 |
Long-term capital gains | 56,871,112 |
Total distributions | $81,295,168 |
As of 6/30/21 | |
Cost of investments | $820,114,605 |
Gross appreciation | 326,596,271 |
Gross depreciation | (34,417,619) |
Net unrealized appreciation (depreciation) | $292,178,652 |
As of 12/31/20 | |
Undistributed ordinary income | 67,761,486 |
Undistributed long-term capital gain | 112,268,925 |
Other temporary differences | 10,649 |
Net unrealized appreciation (depreciation) | 343,801,370 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $31,864,295 | |
Service Class | — | 49,430,873 | |
Total | $— | $81,295,168 |
Up to $1 billion | 0.90% |
In excess of $1 billion | 0.80% |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 947,848 | $26,577,405 | 3,294,260 | $68,896,127 | |
Service Class | 2,996,201 | 74,233,543 | 3,845,873 | 70,163,983 | |
3,944,049 | $100,810,948 | 7,140,133 | $139,060,110 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 1,481,371 | $31,864,295 | |
Service Class | — | — | 2,622,328 | 49,430,873 | |
— | $— | 4,103,699 | $81,295,168 | ||
Shares reacquired | |||||
Initial Class | (1,867,428) | $(51,959,436) | (4,425,268) | $(93,651,928) | |
Service Class | (3,456,269) | (84,574,129) | (7,901,694) | (146,885,455) | |
(5,323,697) | $(136,533,565) | (12,326,962) | $(240,537,383) | ||
Net change | |||||
Initial Class | (919,580) | $(25,382,031) | 350,363 | $7,108,494 | |
Service Class | (460,068) | (10,340,586) | (1,433,493) | (27,290,599) | |
(1,379,648) | $(35,722,617) | (1,083,130) | $(20,182,105) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $31,899,306 | $217,052,199 | $211,145,739 | $31 | $(31) | $37,805,766 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $6,573 | $— |
1 | |
2 | |
4 | |
5 | |
16 | |
17 | |
18 | |
19 | |
21 | |
29 | |
30 | |
30 | |
30 | |
30 |
Investment Grade Corporates | 31.3% |
Mortgage-Backed Securities | 17.4% |
U.S. Treasury Securities | 16.5% |
High Yield Corporates | 11.1% |
Commercial Mortgage-Backed Securities | 9.8% |
Collateralized Debt Obligations | 7.7% |
Municipal Bonds | 2.7% |
Emerging Markets Bonds | 2.7% |
U.S. Government Agencies | 1.3% |
Asset-Backed Securities | 1.2% |
Residential Mortgage-Backed Securities | 0.5% |
Non-U.S. Government Bonds | 0.2% |
AAA | 11.4% |
AA | 5.2% |
A | 11.5% |
BBB | 25.7% |
BB | 10.7% |
B | 2.4% |
C (o) | 0.0% |
U.S. Government | 11.4% |
Federal Agencies | 18.7% |
Not Rated | 5.4% |
Cash & Cash Equivalents | 2.7% |
Other | (5.1)% |
Average Duration (d) | 6.1 |
Average Effective Maturity (m) | 7.1 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. 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 | 0.53% | $1,000.00 | $990.79 | $2.62 |
Hypothetical (h) | 0.53% | $1,000.00 | $1,022.17 | $2.66 | |
Service Class | Actual | 0.78% | $1,000.00 | $989.90 | $3.85 |
Hypothetical (h) | 0.78% | $1,000.00 | $1,020.93 | $3.91 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Bonds – 96.7% | ||||
Aerospace & Defense – 0.9% | ||||
Boeing Co., 2.196%, 2/04/2026 | $ | 6,236,000 | $ 6,295,605 | |
Boeing Co., 5.15%, 5/01/2030 | 1,704,000 | 2,017,800 | ||
Boeing Co., 5.705%, 5/01/2040 | 1,595,000 | 2,054,173 | ||
Boeing Co., 5.805%, 5/01/2050 | 1,550,000 | 2,087,278 | ||
TransDigm, Inc., 4.625%, 1/15/2029 (n) | 5,462,000 | 5,463,912 | ||
$17,918,768 | ||||
Asset-Backed & Securitized – 19.2% | ||||
Allegro CLO Ltd., 2014-1RA, “A2”, FLR, 1.786% (LIBOR - 3mo. + 1.6%), 10/21/2028 (n) | $ | 5,554,267 | $ 5,572,724 | |
Arbor Realty Trust, Inc., CLO, 2018-FL1, “A”, FLR, 1.222% (LIBOR - 1mo. + 1.15%), 6/15/2028 (n) | 7,720,000 | 7,722,409 | ||
Arbor Realty Trust, Inc., CLO, 2019-FL1, “C”, FLR, 2.172% (LIBOR - 1mo. + 2.1%), 5/15/2037 (n) | 808,000 | 807,748 | ||
Arbor Realty Trust, Inc., CLO, 2019-FL1, “D”, FLR, 2.572% (LIBOR - 1mo. + 2.5%), 5/15/2037 (n) | 6,995,000 | 6,986,270 | ||
Arbor Realty Trust, Inc., CLO, 2019-FL2, “AS”, FLR, 1.574% (LIBOR - 1mo. + 1.45%), 9/15/2034 (n) | 980,500 | 980,806 | ||
Arbor Realty Trust, Inc., CLO, 2019-FL2, “B”, FLR, 1.874% (LIBOR - 1mo. + 1.75%), 9/15/2034 (n) | 784,500 | 784,500 | ||
Arbor Realty Trust, Inc., CLO, 2020-FL1, “C”, FLR, 2.174% (LIBOR - 1mo. + 2.05%), 2/15/2035 (n) | 3,529,000 | 3,526,643 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “C”, FLR, 2.072% (LIBOR - 1mo. + 2%), 12/15/2035 (n) | 905,000 | 905,848 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “D”, FLR, 3.022% (LIBOR - 1mo. + 2.95%), 12/15/2035 (n) | 831,500 | 833,842 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL2, “B”, 1.7%, 5/15/2036 (n) | 1,152,500 | 1,152,501 | ||
AREIT CRE Trust, 2019-CRE3, “A”, FLR, 1.144% (LIBOR - 1mo. + 1.02%), 9/14/2036 (n) | 1,230,000 | 1,229,237 | ||
AREIT CRE Trust, 2019-CRE3, “B”, FLR, 1.674% (LIBOR - 1mo. + 1.55%), 9/14/2036 (n) | 2,569,500 | 2,556,742 | ||
AREIT CRE Trust, 2019-CRE3, “C”, FLR, 2.024% (LIBOR - 1mo. + 1.9%), 9/14/2036 (n) | 2,242,500 | 2,228,581 | ||
AREIT CRE Trust, 2019-CRE3, “D”, FLR, 2.774% (LIBOR - 1mo. + 2.65%), 9/14/2036 (n) | 1,849,000 | 1,812,264 | ||
Atrium XII Corp., 2012-A, “B1R”, FLR, 1.533% (LIBOR - 3mo. + 1.35%), 4/22/2027 (n) | 7,430,000 | 7,426,263 | ||
Bancorp Commercial Mortgage Trust, 2017-CRE2, “B”, FLR, 1.672% (LIBOR - 1mo. + 1.6%), 8/15/2032 (z) | 2,312,000 | 2,314,543 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
Bancorp Commercial Mortgage Trust, 2018-CRE3, “D”, FLR, 2.772% (LIBOR - 1mo. + 2.7%), 1/15/2033 (n) | $ | 1,668,091 | $ 1,659,430 | |
Bancorp Commercial Mortgage Trust, 2018-CRE4, “B”, FLR, 1.322% (LIBOR - 1mo. + 1.25%), 9/15/2035 (n) | 1,228,047 | 1,219,469 | ||
Bancorp Commercial Mortgage Trust, 2018-CRE4, “D”, FLR, 2.172% (LIBOR - 1mo. + 2.1%), 9/15/2035 (n) | 1,465,000 | 1,452,705 | ||
Bancorp Commercial Mortgage Trust, 2019-CRE5, “A”, FLR, 1.072% (LIBOR - 1mo. + 1%), 3/15/2036 (n) | 648,440 | 648,440 | ||
Bancorp Commercial Mortgage Trust, 2019-CRE5, “AS”, FLR, 1.422% (LIBOR - 1mo. + 1.35%), 3/15/2036 (n) | 1,394,437 | 1,393,607 | ||
Bancorp Commercial Mortgage Trust, 2019-CRE6, “B”, FLR, 1.674% (LIBOR - 1mo. + 1.55%), 9/15/2036 (n) | 8,289,572 | 8,276,384 | ||
Bancorp Commercial Mortgage Trust, 2019-CRE6, “D”, FLR, 2.424% (LIBOR - 1mo. + 2.54%), 9/15/2036 (n) | 545,000 | 542,289 | ||
Barclays Commercial Mortgage Securities LLC, 2019-C5, “A4”, 3.063%, 11/15/2052 | 2,755,000 | 2,987,982 | ||
Bayview Commercial Asset Trust, 0%, 12/25/2036 (i)(n) | 84,225 | 8 | ||
Bayview Financial Revolving Mortgage Loan Trust, FLR, 1.695% (LIBOR - 1mo. + 1.6%), 12/28/2040 (n) | 44,145 | 47,473 | ||
BDS Ltd., 2019-FL4, “A”, FLR, 1.181% (LIBOR - 1mo. + 1.10%), 8/15/2036 (n) | 5,165,000 | 5,161,849 | ||
BDS Ltd., 2021-FL7, “B”, 1.574% (LIBOR - 1mo. + 1.5%), 6/16/2036 (n) | 1,259,500 | 1,259,890 | ||
Bear Stearns Cos., Inc., “A2”, FLR, 0.991% (LIBOR - 1mo. + 0.45%), 12/25/2042 | 191,039 | 189,970 | ||
Benchmark Mortgage Trust, 2020-B18, “A5”, 1.925%, 7/15/2053 | 2,133,596 | 2,121,854 | ||
BSPRT Issuer Ltd., 2019-FL5, “C”, FLR, 2.072% (LIBOR - 1mo. + 2%), 5/15/2029 (n) | 3,295,000 | 3,270,508 | ||
BSPRT Issuer Ltd., 2021-FL6, “B”, FLR, 1.672% (LIBOR - 1mo. + 1.6%), 3/15/2036 (n) | 3,669,500 | 3,667,218 | ||
BSPRT Issuer Ltd., 2021-FL6, “C”, FLR, 2.122% (LIBOR - 1mo. + 2.05%), 3/15/2036 (n) | 1,288,000 | 1,287,198 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
Business Jet Securities LLC, 2020-1A, “A”, 2.981%, 11/15/2035 (n) | $ | 1,782,573 | $ 1,814,762 | |
Business Jet Securities LLC, 2021-1A, “B”, 2.918%, 4/15/2036 (n) | 609,293 | 614,358 | ||
BXMT Ltd., 2020-FL2, “B”, FLR, 1.524% (LIBOR - 1mo. + 1.4%), 2/15/2038 (n) | 1,731,000 | 1,729,378 | ||
Cantor Commercial Real Estate, 2019-CF2, “A5”, 2.874%, 11/15/2052 | 6,645,635 | 7,049,470 | ||
Capital Automotive, 2020-1A, “A4”, REIT, 3.19%, 2/15/2050 (n) | 2,405,039 | 2,476,099 | ||
CHCP 2021-FL1 Ltd., “B”, FLR, 1.774% (LIBOR - 1mo. + 1.65%), 2/15/2038 (n) | 1,102,500 | 1,103,883 | ||
CHCP 2021-FL1 Ltd., “C”, FLR, 2.224% (LIBOR - 1mo. + 2.1%), 2/15/2038 (n) | 1,249,000 | 1,250,958 | ||
Chesapeake Funding II LLC, 2018-1A, “A1”, 3.04%, 4/15/2030 (n) | 1,138,264 | 1,139,753 | ||
Citigroup Commercial Mortgage Trust, 2014-GC25, “A4”, 3.635%, 10/10/2047 | 3,128,793 | 3,389,329 | ||
Citigroup Commercial Mortgage Trust, 2016-P6, “A5”, 3.72%, 12/10/2049 | 1,754,000 | 1,953,374 | ||
Citigroup Commercial Mortgage Trust, 2019-C7, “A4”, 3.102%, 12/15/2072 | 790,000 | 859,024 | ||
CLNC Ltd., 2019-FL1, “B”, FLR, 2.024% (LIBOR - 1mo. + 1.9%), 8/20/2035 (n) | 1,850,000 | 1,839,881 | ||
CLNC Ltd., 2019-FL1, “C”, FLR, 2.524% (LIBOR - 1mo. + 2.4%), 8/20/2035 (n) | 3,006,500 | 2,991,495 | ||
Commercial Mortgage Trust, 2012-CR2, “A4”, 3.147%, 8/15/2045 | 3,950,000 | 4,025,154 | ||
Commercial Mortgage Trust, 2015-LC21, “A4”, 3.708%, 7/10/2048 | 10,000,000 | 10,918,418 | ||
Commercial Mortgage Trust, 2015-PC1, “A5”, 3.902%, 7/10/2050 | 2,888,848 | 3,172,633 | ||
Credit Acceptance Auto Loan Trust, 2021-3A, “C”, 1.63%, 9/16/2030 (n) | 523,000 | 522,824 | ||
CSAIL Commercial Mortgage Trust, 2015-C2, “A4”, 3.504%, 6/15/2057 | 2,695,346 | 2,910,026 | ||
Cutwater Ltd., 2014-1A, “BR”, FLR, 2.583% (LIBOR - 3mo. + 2.4%), 7/15/2026 (n) | 3,135,000 | 3,122,319 | ||
Cutwater Ltd., 2015-1A, “BR”, FLR, 1.983% (LIBOR - 3mo. + 1.8%), 1/15/2029 (n) | 10,770,000 | 10,644,411 | ||
DT Auto Owner Trust, 2019-2A, “C”, 3.18%, 2/18/2025 (n) | 3,392,000 | 3,437,384 | ||
Exeter Automobile Receivables Trust, 2020-1A, 2.49%, 1/15/2025 (n) | 1,905,000 | 1,938,879 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
Fort CRE LLC, 2018-1A, “A1”, FLR, 1.445% (LIBOR - 1mo. + 1.35%), 11/16/2035 (n) | $ | 4,761,675 | $ 4,761,675 | |
Galaxy CLO Ltd., 2018-29A, “A”, FLR, 0.945% (LIBOR - 3mo. + 0.79%), 11/15/2026 (n) | 3,251,531 | 3,250,032 | ||
Galaxy CLO Ltd., 2018-29A, “B”, FLR, 1.555% (LIBOR - 3mo. + 1.4%), 11/15/2026 (n) | 2,878,803 | 2,890,566 | ||
GLS Auto Receivables Trust, 2020-1A, “A”, 2.17%, 2/15/2024 (n) | 701,469 | 705,446 | ||
Grand Avenue CRE Ltd., 2019-FL1, “A”, FLR, 1.192% (LIBOR - 1mo. + 1.12%), 6/15/2037 (n) | 1,786,072 | 1,786,072 | ||
GS Mortgage Securities Trust, 2015-GC30, “A4”, 3.382%, 5/10/2050 | 7,904,407 | 8,549,151 | ||
GS Mortgage Securities Trust, 2019-GSA1, “A4”, 3.047%, 11/10/2052 | 10,169,944 | 10,989,631 | ||
HarbourView CLO VII Ltd., 7RA, “B”, FLR, 1.889% (LIBOR - 3mo. + 1.7%), 7/18/2031 (n) | 6,545,000 | 6,487,352 | ||
Invitation Homes Trust, 2018-SFR1, “B”, FLR, 0.782% (LIBOR - 1mo. + 0.7%), 3/17/2037 (n) | 8,746,170 | 8,754,269 | ||
Invitation Homes Trust, 2018-SFR2, “A”, FLR, 0.932% (LIBOR - 1mo. + 0.85%), 12/17/2036 (n) | 1,226,837 | 1,227,913 | ||
JPMBB Commercial Mortgage Securities Trust, 2015-C28, “A4”, 3.227%, 10/15/2048 | 12,188,428 | 13,013,343 | ||
JPMorgan Chase Commercial Mortgage Securities Corp., 5.788%, 7/15/2042 (n) | 18,491 | 15,255 | ||
JPMorgan Chase Commercial Mortgage Securities Corp., 3.454%, 9/15/2050 | 7,520,623 | 8,301,473 | ||
JPMorgan Chase Commercial Mortgage Securities Corp., “A3”, 4.171%, 8/15/2046 | 35,182 | 35,151 | ||
JPMorgan Mortgage Trust, “A1”, 1.923%, 10/25/2033 | 78,638 | 79,488 | ||
KKR Real Estate Financial Trust, Inc., 2018-FL1, “C”, FLR, 2.081% (LIBOR - 1mo. + 2%), 6/15/2036 (n) | 5,197,500 | 5,202,365 | ||
Lehman Brothers Commercial Conduit Mortgage Trust, 1.099%, 2/18/2030 (i) | 1,757 | 0 | ||
LoanCore Ltd., 2018-CRE1, “AS”, FLR, 1.572% (LIBOR - 1mo. + 1.5%), 5/15/2028 (n) | 8,900,000 | 8,900,000 | ||
LoanCore Ltd., 2018-CRE1, “C”, FLR, 2.622% (LIBOR - 1mo. + 2.55%), 5/15/2028 (n) | 2,340,000 | 2,328,300 | ||
LoanCore Ltd., 2018-CRE1, “C”, FLR, 2.022% (LIBOR - 1mo. + 1.95%), 4/15/2034 (n) | 1,836,900 | 1,818,549 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
LoanCore Ltd., 2018-CRE1/CRE3, “B”, FLR, 1.672% (LIBOR - 1mo. + 1.6%), 4/15/2034 (n) | $ | 1,873,800 | $ 1,864,442 | |
LoanCore Ltd., 2019-CRE2, “D”, FLR, 2.522% (LIBOR - 1mo. + 2.45%), 5/15/2036 (n) | 1,121,500 | 1,087,969 | ||
LoanCore Ltd., 2019-CRE3, “AS”, FLR, 1.442% (LIBOR - 1mo. + 1.37%), 4/15/2034 (n) | 1,456,200 | 1,454,383 | ||
LoanCore Ltd., 2021-CRE5, “AS”, 1.823%, 7/15/2036 (n) | 5,666,000 | 5,671,299 | ||
LoanCore Ltd., 2021-CRE5, “B”, FLR, 2.072% (LIBOR - 1mo. + 2%), 7/15/2036 (n) | 2,054,000 | 2,055,925 | ||
Madison Park Funding Ltd., 2017- 23A, “CR”, FLR, 2.16% (LIBOR - 3mo. + 2.0%), 7/27/2031 (n) | 5,894,060 | 5,891,107 | ||
Merrill Lynch Mortgage Investors, Inc., “A”, 2.096%, 5/25/2036 | 91,019 | 92,521 | ||
Merrill Lynch Mortgage Investors, Inc., “A5”, 1.99%, 4/25/2035 | 116,210 | 115,802 | ||
MF1 CLO Ltd., 2019-FL2, “AS”, FLR, 1.562% (LIBOR - 1mo. + 1.43%), 12/25/2034 (n) | 11,245,000 | 11,244,990 | ||
MF1 CLO Ltd., 2021-FL5, “C”, FLR, 1.824% (LIBOR - 1mo. + 1.7%), 7/15/2036 (n) | 2,589,000 | 2,586,574 | ||
MF1 Multi-Family Housing Mortgage Loan Trust, 2020-FL4, FLR, 2.224% (LIBOR - 1mo. + 2.1%), 11/15/2035 (n) | 2,602,500 | 2,626,895 | ||
Morgan Stanley Bank of America/Merrill Lynch Trust, “A4”, 3.176%, 8/15/2045 | 5,000,000 | 5,084,432 | ||
NextGear Floorplan Master Owner Trust, 2019-2A, “A2”, 2.07%, 10/15/2024 (n) | 2,465,000 | 2,519,991 | ||
OCP CLO Ltd., 2015-9A, “A2R”, FLR, 1.533% (LIBOR - 3mo. + 1.35%), 7/15/2027 (n) | 6,280,000 | 6,282,694 | ||
Palmer Square Loan Funding Ltd., 2020-1A, “A2”, FLR, 1.505% (LIBOR - 3mo. + 1.35%), 2/20/2028 (n) | 3,930,000 | 3,909,874 | ||
Palmer Square Loan Funding Ltd., 2020-1A, “B”, FLR, 2.055% (LIBOR - 3mo. + 1.9%), 2/20/2028 (n) | 3,453,628 | 3,384,835 | ||
Parallel Ltd., 2015-1A, “C1R”, FLR, 1.938% (LIBOR - 3mo. + 1.75%), 7/20/2027 (n) | 1,680,000 | 1,680,576 | ||
Parallel Ltd., 2015-1A, “C2R”, FLR, 1.938% (LIBOR - 3mo. + 1.75%), 7/20/2027 (n) | 1,810,000 | 1,799,162 | ||
PFP III Ltd., 2021-7, “B”, FLR, 1.474% (LIBOR - 1mo. + 1.4%), 4/14/2038 (n) | 936,000 | 933,671 | ||
PFP III Ltd., 2021-7, “C”, FLR, 1.724% (LIBOR - 1mo. + 1.65%), 4/14/2038 (n) | 1,640,500 | 1,636,417 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
Preferred Term Securities XIX Ltd., CDO, FLR, 0.468% (LIBOR - 3mo. + 0.35%), 12/22/2035 (n) | $ | 181,303 | $ 159,773 | |
Race Point CLO Ltd., 2013-8A, “AR-2”, FLR, 1.195% (LIBOR - 3mo. + 1.04%), 2/20/2030 (n) | 3,697,038 | 3,698,757 | ||
Residential Funding Mortgage Securities, Inc., FGIC, 4.969%, 12/25/2035 | 3,845 | 3,819 | ||
Santander Retail Auto Lease Trust, 2019-A, “B”, 3.01%, 5/22/2023 (n) | 3,222,000 | 3,261,770 | ||
Santander Retail Auto Lease Trust, 2020-A, “C”, 2.08%, 3/20/2024 (n) | 2,276,000 | 2,325,577 | ||
Securitized Term Auto Receivable Trust, 2019-CRTA, “B”, 2.453%, 3/25/2026 (n) | 1,003,776 | 1,020,611 | ||
Securitized Term Auto Receivable Trust, 2019-CRTA, “C”, 2.849%, 3/25/2026 (n) | 1,197,037 | 1,221,734 | ||
Starwood Commercial Mortgage, 2021-FL2, “C”, FLR, 2.182% (LIBOR - 1mo. + 2.1%), 4/18/2038 (n) | 2,027,000 | 2,030,807 | ||
TICP CLO Ltd., 2018-IA, “A2”, FLR, 1.675% (LIBOR - 3mo. + 1.5%), 4/26/2028 (n) | 6,750,828 | 6,750,940 | ||
UBS Commercial Mortgage Trust, 2017-C8, “A4”, 3.983%, 2/15/2051 | 5,865,766 | 6,633,582 | ||
UBS Commercial Mortgage Trust, 2019-C17, “A4”, 2.921%, 9/15/2052 | 12,215,133 | 12,980,869 | ||
Veros Auto Receivables Trust, 2020-1, “A”, 1.67%, 9/15/2023 (n) | 1,120,983 | 1,123,711 | ||
Voya CLO Ltd., 2012-4A, “A2AR”, FLR, 2.083% (LIBOR - 3mo. + 1.90%), 10/15/2030 (n) | 1,940,000 | 1,950,043 | ||
Voya CLO Ltd., 2016-4A, “CR”, 2.228% (LIBOR - 3mo. + 2.15%), 7/20/2029 (n) | 4,904,782 | 4,902,300 | ||
Wells Fargo Commercial Mortgage Trust, 2016-LC25, “A4”, 3.64%, 12/15/2059 | 13,071,416 | 14,464,344 | ||
Wells Fargo Commercial Mortgage Trust, 2017-C42, “A5”, 3.589%, 12/15/2050 | 3,970,000 | 4,407,716 | ||
Wells Fargo Commercial Mortgage Trust, 2018-C46, “A4”, 4.152%, 8/15/2051 | 1,430,000 | 1,640,327 | ||
Wells Fargo Commercial Mortgage Trust, 2019-C53, “A4”, 3.04%, 10/15/2052 | 10,239,837 | 11,063,351 | ||
Wells Fargo Commercial Mortgage Trust, 2019-C54, “A4”, 3.146%, 12/15/2052 | 4,898,000 | 5,329,000 | ||
Wells Fargo Commercial Mortgage Trust, 2020-C58, “A4”, 2.092%, 7/15/2053 | 3,745,000 | 3,767,665 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
Wind River CLO Ltd., 2015-2A, “CR”, FLR, 1.883% (LIBOR - 3mo. + 1.7%), 10/15/2027 (n) | $ | 975,000 | $ 976,790 | |
$391,664,083 | ||||
Automotive – 0.4% | ||||
Hyundai Capital America, 2.375%, 10/15/2027 (n) | $ | 1,982,000 | $ 2,026,289 | |
Volkswagen Group of America Finance LLC, 3.2%, 9/26/2026 (n) | 3,573,000 | 3,863,251 | ||
Volkswagen Group of America Finance LLC, 3.75%, 5/13/2030 (n) | 2,118,000 | 2,374,930 | ||
$8,264,470 | ||||
Broadcasting – 0.9% | ||||
Discovery, Inc., 4.65%, 5/15/2050 | $ | 4,028,000 | $ 4,713,595 | |
Prosus N.V., 3.68%, 1/21/2030 (n) | 4,905,000 | 5,238,093 | ||
WMG Acquisition Corp., 3%, 2/15/2031 (n) | 8,700,000 | 8,242,902 | ||
$18,194,590 | ||||
Brokerage & Asset Managers – 1.3% | ||||
E*TRADE Financial Corp., 3.8%, 8/24/2027 | $ | 5,272,000 | $ 5,855,094 | |
E*TRADE Financial Corp., 4.5%, 6/20/2028 | 3,485,000 | 4,034,844 | ||
Intercontinental Exchange, Inc., 3.75%, 9/21/2028 | 2,249,000 | 2,531,747 | ||
Intercontinental Exchange, Inc., 2.1%, 6/15/2030 | 1,170,000 | 1,161,833 | ||
LPL Holdings, Inc., 4%, 3/15/2029 (n) | 6,500,000 | 6,529,055 | ||
Raymond James Financial, Inc., 4.95%, 7/15/2046 | 4,683,000 | 6,052,340 | ||
$26,164,913 | ||||
Building – 0.8% | ||||
ABC Supply Co., Inc., 4%, 1/15/2028 (n) | $ | 2,975,000 | $ 3,048,512 | |
Martin Marietta Materials, Inc., 3.45%, 6/01/2027 | 1,243,000 | 1,357,560 | ||
Standard Industries, Inc., 4.375%, 7/15/2030 (n) | 4,065,000 | 4,192,031 | ||
Standard Industries, Inc., 3.375%, 1/15/2031 (n) | 3,660,000 | 3,503,389 | ||
Vulcan Materials Co., 3.5%, 6/01/2030 | 3,356,000 | 3,699,322 | ||
$15,800,814 | ||||
Business Services – 1.1% | ||||
Equinix, Inc., 2.15%, 7/15/2030 | $ | 4,789,000 | $ 4,758,428 | |
Fiserv, Inc., 3.5%, 7/01/2029 | 3,750,000 | 4,126,282 | ||
Fiserv, Inc., 2.65%, 6/01/2030 | 4,000,000 | 4,141,507 | ||
Iron Mountain, Inc., 4.5%, 2/15/2031 (n) | 5,315,000 | 5,381,437 | ||
NXP Semiconductors N.V., 2.7%, 5/01/2025 (n) | 508,000 | 535,748 | ||
Switch Ltd., 4.125%, 6/15/2029 (n) | 3,175,000 | 3,258,344 | ||
$22,201,746 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Cable TV – 2.0% | ||||
CCO Holdings LLC/CCO Holdings Capital Corp., 5%, 2/01/2028 (n) | $ | 4,470,000 | $ 4,687,912 | |
CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 8/15/2030 (n) | 4,025,000 | 4,190,886 | ||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 4.908%, 7/23/2025 | 7,676,000 | 8,696,224 | ||
CSC Holdings LLC, 4.125%, 12/01/2030 (n) | 5,940,000 | 5,902,875 | ||
CSC Holdings LLC, 4.5%, 11/15/2031 (n) | 4,065,000 | 4,089,959 | ||
Sirius XM Radio, Inc., 5.375%, 7/15/2026 (n) | 3,615,000 | 3,732,488 | ||
Sirius XM Radio, Inc., 5.5%, 7/01/2029 (n) | 4,005,000 | 4,364,249 | ||
Time Warner Cable, Inc., 4.5%, 9/15/2042 | 3,558,000 | 3,954,883 | ||
Time Warner Entertainment Co. LP, 8.375%, 7/15/2033 | 290,000 | 439,417 | ||
$40,058,893 | ||||
Chemicals – 0.1% | ||||
Axalta Coating Systems Ltd., 3.375%, 2/15/2029 (n) | $ | 3,100,000 | $ 3,030,250 | |
Computer Software – 0.6% | ||||
Dell International LLC/EMC Corp., 5.3%, 10/01/2029 | $ | 9,950,000 | $ 12,005,983 | |
Computer Software - Systems – 0.3% | ||||
SS&C Technologies Holdings, Inc., 5.5%, 9/30/2027 (n) | $ | 6,040,000 | $ 6,400,588 | |
Conglomerates – 0.7% | ||||
BWX Technologies, Inc., 4.125%, 6/30/2028 (n) | $ | 2,327,000 | $ 2,370,631 | |
Carrier Global Corp., 3.577%, 4/05/2050 | 6,276,000 | 6,655,487 | ||
Westinghouse Air Brake Technologies Corp., 4.95%, 9/15/2028 | 4,993,000 | 5,791,813 | ||
$14,817,931 | ||||
Consumer Products – 0.7% | ||||
Reckitt Benckiser Treasury Services PLC, 2.75%, 6/26/2024 (n) | $ | 13,673,000 | $ 14,437,192 | |
Consumer Services – 0.6% | ||||
Booking Holdings, Inc., 3.65%, 3/15/2025 | $ | 3,449,000 | $ 3,766,711 | |
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2026 (n) | 2,145,000 | 1,792,090 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2029 (n) | 6,221,000 | 4,159,814 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2031 (n) | 2,145,000 | 1,270,871 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Consumer Services – continued | ||||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2043 (n) | $ | 5,600,000 | $ 1,716,677 | |
$12,706,163 | ||||
Containers – 0.4% | ||||
Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 2/01/2026 | $ | 7,030,000 | $ 7,295,031 | |
Electronics – 1.2% | ||||
Broadcom Corp./Broadcom Cayman Finance Ltd., 3.875%, 1/15/2027 | $ | 3,219,000 | $ 3,556,924 | |
Broadcom, Inc., 4.75%, 4/15/2029 | 3,632,000 | 4,224,949 | ||
Broadcom, Inc., 4.15%, 11/15/2030 | 5,906,000 | 6,623,077 | ||
Broadcom, Inc., 3.469%, 4/15/2034 (n) | 3,589,000 | 3,796,281 | ||
Sensata Technologies B.V., 5%, 10/01/2025 (n) | 3,740,000 | 4,165,425 | ||
Sensata Technologies B.V., 4%, 4/15/2029 (n) | 2,670,000 | 2,710,272 | ||
$25,076,928 | ||||
Emerging Market Quasi-Sovereign – 0.7% | ||||
Indian Railway Finance Corp., 2.8%, 2/10/2031 (n) | $ | 6,055,000 | $ 5,852,095 | |
Office Cherifien des Phosphates S.A. (Kingdom of Morocco), 3.75%, 6/23/2031 (n) | 5,063,000 | 5,111,098 | ||
Power Finance Corp. Ltd. (Republic of India), 3.95%, 4/23/2030 | 2,856,000 | 2,938,123 | ||
$13,901,316 | ||||
Emerging Market Sovereign – 0.2% | ||||
Dominican Republic, 4.5%, 1/30/2030 (n) | $ | 4,675,000 | $ 4,780,234 | |
Energy - Independent – 0.9% | ||||
Diamondback Energy, Inc., 4.4%, 3/24/2051 | $ | 1,999,000 | $ 2,250,666 | |
Energean Israel Finance Ltd., 4.875%, 3/30/2026 | 3,943,000 | 4,036,725 | ||
Energean Israel Finance Ltd., 5.375%, 3/30/2028 | 901,000 | 924,741 | ||
Leviathan Bond Ltd., 6.5%, 6/30/2027 (n) | 2,675,000 | 2,969,250 | ||
Leviathan Bond Ltd., 6.75%, 6/30/2030 (n) | 2,670,000 | 3,010,425 | ||
Tengizchevroil Finance Co. International Ltd., 3.25%, 8/15/2030 | 4,908,000 | 4,996,835 | ||
$18,188,642 | ||||
Energy - Integrated – 0.4% | ||||
Eni S.p.A., 4%, 9/12/2023 (n) | $ | 5,176,000 | $ 5,528,134 | |
Exxon Mobil Corp., 4.227%, 3/19/2040 | 1,700,000 | 2,029,791 | ||
$7,557,925 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Financial Institutions – 1.5% | ||||
AerCap Ireland Capital DAC, 4.5%, 9/15/2023 | $ | 4,803,000 | $ 5,150,139 | |
AerCap Ireland Capital DAC, 6.5%, 7/15/2025 | 3,195,000 | 3,747,457 | ||
Avolon Holdings Funding Ltd., 5.25%, 5/15/2024 (n) | 5,681,000 | 6,248,126 | ||
Avolon Holdings Funding Ltd., 3.95%, 7/01/2024 (n) | 4,592,000 | 4,897,286 | ||
Avolon Holdings Funding Ltd., 2.125%, 2/21/2026 (n) | 2,890,000 | 2,878,032 | ||
Avolon Holdings Funding Ltd., 4.25%, 4/15/2026 (n) | 1,779,000 | 1,927,860 | ||
Avolon Holdings Funding Ltd., 2.75%, 2/21/2028 (n) | 2,615,000 | 2,587,410 | ||
Global Aircraft Leasing Co. Ltd., 6.5%,(6.5% cash or 7.25% PIK) 9/15/2024 (n)(p) | 3,849,623 | 3,868,871 | ||
$31,305,181 | ||||
Food & Beverages – 0.8% | ||||
Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc., 4.9%, 2/01/2046 | $ | 2,901,000 | $ 3,671,941 | |
Anheuser-Busch InBev Worldwide, Inc., 5.45%, 1/23/2039 | 2,539,000 | 3,348,612 | ||
Aramark Services, Inc., 5%, 2/01/2028 (n) | 3,825,000 | 4,005,540 | ||
JBS USA Lux S.A./JBS USA Finance, Inc., 5.5%, 1/15/2030 (n) | 4,965,000 | 5,552,756 | ||
$16,578,849 | ||||
Gaming & Lodging – 1.4% | ||||
GLP Capital LP/GLP Financing II, Inc., 5.375%, 11/01/2023 | $ | 4,184,000 | $ 4,546,502 | |
GLP Capital LP/GLP Financing II, Inc., 5.25%, 6/01/2025 | 2,096,000 | 2,359,362 | ||
Hilton Domestic Operating Co., Inc., 3.625%, 2/15/2032 (n) | 7,185,000 | 7,095,187 | ||
Las Vegas Sands Corp., 3.5%, 8/18/2026 | 3,253,000 | 3,458,740 | ||
Marriott International, Inc., 4.625%, 6/15/2030 | 1,503,000 | 1,731,008 | ||
Marriott International, Inc., 2.85%, 4/15/2031 | 1,650,000 | 1,675,560 | ||
Marriott International, Inc., 3.5%, 10/15/2032 | 3,330,000 | 3,537,466 | ||
VICI Properties, Inc., 4.125%, 8/15/2030 (n) | 3,950,000 | 4,055,939 | ||
$28,459,764 | ||||
Insurance - Property & Casualty – 3.0% | ||||
Allied World Assurance Co. Holdings Ltd., 4.35%, 10/29/2025 | $ | 6,835,000 | $ 7,503,971 | |
American International Group, Inc., 3.75%, 7/10/2025 | 4,641,000 | 5,114,158 | ||
American International Group, Inc., 3.9%, 4/01/2026 | 4,923,000 | 5,493,776 | ||
American International Group, Inc., 4.7%, 7/10/2035 | 2,600,000 | 3,166,936 | ||
Aon Corp., 3.75%, 5/02/2029 | 7,982,000 | 8,981,863 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Insurance - Property & Casualty – continued | ||||
Berkshire Hathaway Finance Corp., 2.85%, 10/15/2050 | $ | 1,429,000 | $ 1,426,428 | |
Fairfax Financial Holdings Ltd., 4.85%, 4/17/2028 | 5,692,000 | 6,547,656 | ||
Fairfax Financial Holdings Ltd., 3.375%, 3/03/2031 (n) | 1,060,000 | 1,104,679 | ||
Hartford Financial Services Group, Inc., 2.8%, 8/19/2029 | 5,901,000 | 6,195,083 | ||
Hartford Financial Services Group, Inc., 3.6%, 8/19/2049 | 3,484,000 | 3,819,985 | ||
Liberty Mutual Group, Inc., 3.951%, 10/15/2050 (n) | 2,900,000 | 3,230,320 | ||
Marsh & McLennan Cos., Inc., 4.2%, 3/01/2048 | 6,787,000 | 8,403,205 | ||
Swiss Re Ltd., 4.25%, 12/06/2042 (n) | 736,000 | 901,561 | ||
$61,889,621 | ||||
International Market Quasi-Sovereign – 0.2% | ||||
Electricite de France S.A., 4.875%, 9/21/2038 (n) | $ | 2,687,000 | $ 3,301,510 | |
Machinery & Tools – 0.2% | ||||
CNH Industrial Capital LLC, 4.2%, 1/15/2024 | $ | 1,209,000 | $ 1,308,238 | |
CNH Industrial Capital LLC, 3.85%, 11/15/2027 | 3,223,000 | 3,568,485 | ||
$4,876,723 | ||||
Major Banks – 7.9% | ||||
Bank of America Corp., 3.419% to 12/20/2027, FLR (LIBOR - 3mo. + 1.04%) to 12/20/2028 | $ | 8,192,000 | $ 8,921,984 | |
Bank of America Corp., 2.496% to 2/13/2030, FLR (LIBOR - 3mo. + 0.99%) to 2/13/2031 | 9,824,000 | 10,030,242 | ||
Bank of America Corp., 2.676% to 6/19/2040, FLR (SOFR + 1.93%) to 6/19/2041 | 3,810,000 | 3,697,602 | ||
Bank of America Corp., 4.443%, 1/20/2048 | 5,696,000 | 7,061,810 | ||
Bank of America Corp., 6.5% to 10/23/2024, FLR (LIBOR - 3mo. + 4.174%) to 10/23/2049 | 3,843,000 | 4,352,197 | ||
Bank of America Corp., 6.1%, 12/29/2049 | 8,096,000 | 9,090,756 | ||
Bank of America Corp., 5.875% to 3/15/2028, FLR (LIBOR - 3mo. + 2.931%) to 12/31/2059 | 5,924,000 | 6,780,373 | ||
Barclays PLC, 4.972% to 5/16/2028, FLR (LIBOR - 3mo. + 1.902%) to 5/16/2029 | 3,191,000 | 3,736,586 | ||
Credit Suisse Group AG, 3.091% to 5/14/2031, FLR (SOFR + 1.73%) to 5/14/2032 (n) | 1,689,000 | 1,740,095 | ||
Credit Suisse Group Fund (Guernsey) Ltd., 3.75%, 3/26/2025 | 3,021,000 | 3,276,898 | ||
Goldman Sachs Group, Inc., 2.6%, 2/07/2030 | 6,000,000 | 6,226,085 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Major Banks – continued | ||||
HSBC Holdings PLC, 4% to 9/09/2026, FLR (CMT - 1yr. + 3.222%) to 9/09/2169 | $ | 2,447,000 | $ 2,486,764 | |
HSBC Holdings PLC, 4.7% to 9/09/2031, FLR (CMT - 1yr. + 3.25%) to 9/09/2169 | 6,176,000 | 6,407,600 | ||
JPMorgan Chase & Co., 3.125%, 1/23/2025 | 211,000 | 226,426 | ||
JPMorgan Chase & Co., 3.509%, 1/23/2029 | 2,290,000 | 2,523,971 | ||
JPMorgan Chase & Co., 4.005% to 4/23/2028, FLR (LIBOR - 3mo. + 1.12%) to 4/23/2029 | 11,383,000 | 12,868,917 | ||
JPMorgan Chase & Co., 4.203% to 7/23/2028, FLR (LIBOR - 3mo. + 1.26%) to 7/23/2029 | 4,579,000 | 5,262,391 | ||
JPMorgan Chase & Co., 2.956% to 5/13/2030, FLR (SOFR + 2.515%) to 5/13/2031 | 4,435,000 | 4,658,997 | ||
Lloyds Bank PLC, 3.75%, 1/11/2027 | 5,328,000 | 5,884,689 | ||
Mitsubishi UFJ Financial Group, Inc., 2.048%, 7/17/2030 | 9,749,000 | 9,715,099 | ||
Morgan Stanley, 5.597% to 3/24/2050, FLR (SOFR + 4.84%) to 3/24/2051 | 4,557,000 | 6,782,291 | ||
Sumitomo Mitsui Financial Group, Inc., 2.13%, 7/08/2030 | 9,717,000 | 9,769,608 | ||
Sumitomo Mitsui Trust Bank Ltd., 0.85%, 3/25/2024 (n) | 7,868,000 | 7,880,021 | ||
UBS Group AG, 4.375% to 2/10/2031, FLR (CMT - 1yr. + 3.313%) to 8/10/2069 (n) | 7,084,000 | 7,237,723 | ||
UBS Group Funding (Jersey) Ltd., 4.125%, 9/24/2025 (n) | 4,524,000 | 5,047,110 | ||
Wells Fargo & Co., 3.068% to 4/30/2040, FLR (SOFR + 2.53%) to 4/30/2041 | 4,381,000 | 4,493,518 | ||
Westpac Banking Corp., 2.894% to 2/4/2025, FLR (CMT - 5yr. + 1.35%) to 2/04/2030 | 5,356,000 | 5,555,083 | ||
$161,714,836 | ||||
Medical & Health Technology & Services – 2.7% | ||||
Alcon Finance Corp., 2.75%, 9/23/2026 (n) | $ | 593,000 | $ 627,555 | |
Alcon, Inc., 2.6%, 5/27/2030 (n) | 1,096,000 | 1,119,259 | ||
Charles River Laboratories International, Inc., 4%, 3/15/2031 (n) | 3,905,000 | 4,062,489 | ||
CommonSpirit Health, 2.95%, 11/01/2022 | 6,666,000 | 6,881,172 | ||
DaVita, Inc., 4.625%, 6/01/2030 (n) | 4,230,000 | 4,349,371 | ||
HCA, Inc., 5.25%, 6/15/2026 | 3,026,000 | 3,502,776 | ||
HCA, Inc., 5.625%, 9/01/2028 | 6,840,000 | 8,105,400 | ||
HCA, Inc., 4.125%, 6/15/2029 | 4,581,000 | 5,158,555 | ||
Laboratory Corp. of America Holdings, 4.7%, 2/01/2045 | 2,056,000 | 2,464,522 | ||
Northwell Healthcare, Inc., 3.979%, 11/01/2046 | 1,503,000 | 1,701,520 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Medical & Health Technology & Services – continued | ||||
ProMedica Toledo Hospital, “B”, 5.325%, 11/15/2028 | $ | 7,120,000 | $ 8,404,583 | |
ProMedica Toledo Hospital, “B”, AGM, 5.75%, 11/15/2038 | 2,562,000 | 3,118,586 | ||
Tower Health, 4.451%, 2/01/2050 | 6,211,000 | 5,248,295 | ||
$54,744,083 | ||||
Medical Equipment – 0.1% | ||||
Boston Scientific Corp., 4%, 3/01/2029 | $ | 1,837,000 | $ 2,089,279 | |
Metals & Mining – 0.8% | ||||
Anglo American Capital PLC, 2.25%, 3/17/2028 (n) | $ | 2,504,000 | $ 2,531,731 | |
Anglo American Capital PLC, 2.875%, 3/17/2031 (n) | 2,927,000 | 2,992,182 | ||
Glencore Funding LLC, 4.125%, 5/30/2023 (n) | 2,796,000 | 2,973,928 | ||
Glencore Funding LLC, 2.85%, 4/27/2031 (n) | 4,010,000 | 4,077,909 | ||
Novelis Corp., 5.875%, 9/30/2026 (n) | 3,515,000 | 3,656,495 | ||
$16,232,245 | ||||
Midstream – 2.6% | ||||
Cheniere Energy Partners LP, 4.5%, 10/01/2029 | $ | 3,683,000 | $ 3,959,225 | |
Enbridge, Inc., 4.25%, 12/01/2026 | 7,640,000 | 8,605,668 | ||
Galaxy Pipeline Assets Bidco Ltd., 2.16%, 3/31/2034 (n) | 7,022,000 | 6,890,680 | ||
Kinder Morgan (Delaware), Inc., 7.75%, 1/15/2032 | 6,350,000 | 9,109,544 | ||
Kinder Morgan Energy Partners LP, 6.375%, 3/01/2041 | 2,040,000 | 2,819,782 | ||
Kinder Morgan Energy Partners LP, 5.4%, 9/01/2044 | 2,612,000 | 3,279,490 | ||
ONEOK, Inc., 5.2%, 7/15/2048 | 5,104,000 | 6,254,323 | ||
Plains All American Pipeline LP/PAA Finance Corp., 3.55%, 12/15/2029 | 2,839,000 | 2,989,533 | ||
Sabine Pass Liquefaction LLC, 4.2%, 3/15/2028 | 2,675,000 | 3,020,958 | ||
Sabine Pass Liquefaction LLC, 4.5%, 5/15/2030 | 1,975,000 | 2,279,253 | ||
Targa Resources Partners LP/Targa Resources Finance Corp., 5.875%, 4/15/2026 | 3,333,000 | 3,500,683 | ||
$52,709,139 | ||||
Mortgage-Backed – 17.4% | ||||
Fannie Mae, 2.56%, 10/01/2021 | $ | 744,622 | $ 744,448 | |
Fannie Mae, 2.75%, 3/01/2022 | 1,033,821 | 1,045,925 | ||
Fannie Mae, 5.5%, 5/01/2022-4/01/2040 | 5,482,603 | 6,315,909 | ||
Fannie Mae, 6%, 8/01/2022-3/01/2039 | 1,376,833 | 1,616,902 | ||
Fannie Mae, 2.525%, 10/01/2022 | 1,655,889 | 1,684,520 | ||
Fannie Mae, 2.68%, 3/01/2023 | 1,594,880 | 1,638,538 | ||
Fannie Mae, 2.41%, 5/01/2023 | 1,859,602 | 1,909,667 | ||
Fannie Mae, 2.55%, 5/01/2023 | 951,851 | 979,340 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mortgage-Backed – continued | ||||
Fannie Mae, 5%, 7/01/2023-3/01/2042 | $ | 3,782,420 | $ 4,302,413 | |
Fannie Mae, 4.5%, 5/01/2024-6/01/2044 | 12,882,082 | 14,289,251 | ||
Fannie Mae, 3.5%, 5/25/2025-7/01/2046 | 10,830,640 | 11,626,999 | ||
Fannie Mae, 3.95%, 1/01/2027 | 331,651 | 372,160 | ||
Fannie Mae, 3%, 11/01/2028-8/01/2047 | 8,808,408 | 9,328,553 | ||
Fannie Mae, 2.5%, 11/01/2031-11/01/2046 | 1,039,104 | 1,080,751 | ||
Fannie Mae, 6.5%, 7/01/2032-1/01/2033 | 3,071 | 3,507 | ||
Fannie Mae, 3%, 2/25/2033 (i) | 536,025 | 52,298 | ||
Fannie Mae, 4%, 12/01/2039-1/01/2047 | 20,445,176 | 22,364,309 | ||
Fannie Mae, 3.25%, 5/25/2040 | 217,148 | 234,704 | ||
Fannie Mae, 2%, 10/25/2040-4/25/2046 | 539,148 | 552,733 | ||
Fannie Mae, 4%, 7/25/2046 (i) | 511,565 | 96,345 | ||
Fannie Mae, 3.5%, 12/01/2046 (f) | 2,169,672 | 2,302,096 | ||
Fannie Mae, UMBS, 3.5%, 5/01/2049 | 352,177 | 375,049 | ||
Fannie Mae, UMBS, 2.5%, 2/01/2050-7/01/2050 | 6,138,956 | 6,408,450 | ||
Fannie Mae, UMBS, 2%, 1/01/2051-2/01/2051 | 720,894 | 730,172 | ||
Federal Home Loan Bank, 5%, 7/01/2035 | 1,147,657 | 1,314,977 | ||
Freddie Mac, 2.791%, 1/25/2022 | 4,135,268 | 4,173,452 | ||
Freddie Mac, 3.32%, 2/25/2023 | 3,956,000 | 4,127,504 | ||
Freddie Mac, 3.531%, 7/25/2023 | 2,401,000 | 2,540,507 | ||
Freddie Mac, 2.67%, 12/25/2024 | 2,784,000 | 2,956,595 | ||
Freddie Mac, 2.811%, 1/25/2025 | 4,169,000 | 4,448,980 | ||
Freddie Mac, 4%, 7/01/2025-4/01/2044 | 2,158,920 | 2,359,192 | ||
Freddie Mac, 4.5%, 7/01/2025-5/01/2042 | 3,277,987 | 3,634,646 | ||
Freddie Mac, 3.3%, 10/25/2026 | 2,958,000 | 3,280,448 | ||
Freddie Mac, 3%, 6/15/2028-2/25/2059 | 15,982,790 | 16,961,634 | ||
Freddie Mac, 4.06%, 10/25/2028 | 2,129,000 | 2,498,922 | ||
Freddie Mac, 1.218%, 7/25/2029 (i) | 4,052,620 | 319,426 | ||
Freddie Mac, 1.268%, 8/25/2029 (i) | 7,009,814 | 579,960 | ||
Freddie Mac, 1.984%, 4/25/2030 (i) | 1,901,414 | 286,222 | ||
Freddie Mac, 5.5%, 5/01/2034-1/01/2038 | 238,340 | 275,314 | ||
Freddie Mac, 6%, 8/01/2034-7/01/2038 | 72,738 | 84,072 | ||
Freddie Mac, 5%, 11/01/2035-7/01/2041 | 1,292,747 | 1,470,766 | ||
Freddie Mac, 5.5%, 2/15/2036 (i) | 108,402 | 19,856 | ||
Freddie Mac, 3.5%, 11/01/2037-10/25/2058 | 17,959,575 | 19,249,719 | ||
Freddie Mac, 4.5%, 12/15/2040 (i) | 102,788 | 9,692 | ||
Freddie Mac, 4%, 8/15/2044 (i) | 139,909 | 16,403 | ||
Freddie Mac, UMBS, 3%, 2/01/2050-6/01/2050 | 2,412,184 | 2,533,852 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mortgage-Backed – continued | ||||
Ginnie Mae, 5.5%, 5/15/2033-1/20/2042 | $ | 1,289,080 | $ 1,492,342 | |
Ginnie Mae, 6%, 1/20/2036-1/15/2039 | 133,607 | 157,164 | ||
Ginnie Mae, 4.5%, 4/15/2039-9/20/2041 | 5,826,082 | 6,488,781 | ||
Ginnie Mae, 4%, 10/20/2040-3/20/2048 | 1,914,215 | 2,095,824 | ||
Ginnie Mae, 3.5%, 11/15/2040-9/20/2048 | 10,948,157 | 11,653,491 | ||
Ginnie Mae, 3%, 11/20/2044-6/20/2051 | 16,456,025 | 17,320,050 | ||
Ginnie Mae, 2.5%, 6/20/2051-7/20/2051 | 5,700,000 | 5,910,293 | ||
Ginnie Mae, TBA, 2.5%, 7/15/2051 | 10,825,000 | 11,202,184 | ||
Ginnie Mae, TBA, 3.5%, 7/15/2051 | 6,025,000 | 6,324,720 | ||
Ginnie Mae, TBA, 4%, 7/15/2051 | 5,325,000 | 5,623,075 | ||
Ginnie Mae, TBA, 2%, 7/21/2051 | 3,000,000 | 3,055,312 | ||
Ginnie Mae, TBA, 3%, 7/21/2051 | 2,525,000 | 2,634,532 | ||
UMBS, TBA, 3%, 7/19/2036-8/12/2051 | 11,950,000 | 12,482,761 | ||
UMBS, TBA, 1.5%, 7/25/2036-8/17/2036 | 6,125,000 | 6,194,465 | ||
UMBS, TBA, 2%, 7/25/2036-8/12/2051 | 63,750,000 | 64,490,443 | ||
UMBS, TBA, 2.5%, 7/25/2036-8/25/2051 | 33,700,000 | 34,890,253 | ||
$355,212,868 | ||||
Municipals – 2.7% | ||||
Bridgeview, IL, Stadium and Redevelopment Projects, AAC, 5.06%, 12/01/2025 | $ | 910,000 | $ 935,422 | |
Bridgeview, IL, Stadium and Redevelopment Projects, AAC, 5.14%, 12/01/2036 | 8,850,000 | 9,358,020 | ||
Escambia County, FL, Health Facilities Authority Rev. (Baptist Health Care Corp.), “B”, AGM, 3.607%, 8/15/2040 | 1,295,000 | 1,327,957 | ||
New Jersey Economic Development Authority State Pension Funding Rev., “A”, NPFG, 7.425%, 2/15/2029 | 8,019,000 | 10,399,379 | ||
New Jersey Economic Development Authority State Pension Funding Rev., Capital Appreciation, “B”, AGM, 0%, 2/15/2023 | 13,215,000 | 13,134,416 | ||
Oklahoma Development Finance Authority, Health System Rev. (OU Medicine Project), “C”, 5.45%, 8/15/2028 | 3,770,000 | 4,215,451 | ||
Philadelphia, PA, School District, “B”, AGM, 6.615%, 6/01/2030 | 3,250,000 | 4,205,135 | ||
Philadelphia, PA, School District, “B”, AGM, 6.765%, 6/01/2040 | 2,195,000 | 3,192,471 | ||
State of Florida, “A”, 2.154%, 7/01/2030 | 7,272,000 | 7,413,974 | ||
$54,182,225 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Natural Gas - Distribution – 0.7% | ||||
Boston Gas Co., 3.15%, 8/01/2027 (n) | $ | 9,122,000 | $ 9,780,546 | |
NiSource, Inc., 3.6%, 5/01/2030 | 4,171,000 | 4,618,160 | ||
$14,398,706 | ||||
Network & Telecom – 0.4% | ||||
Verizon Communications, Inc., 2.1%, 3/22/2028 | $ | 1,510,000 | $ 1,541,582 | |
Verizon Communications, Inc., 2.55%, 3/21/2031 | 2,832,000 | 2,894,658 | ||
Verizon Communications, Inc., 4.272%, 1/15/2036 | 2,647,000 | 3,149,467 | ||
$7,585,707 | ||||
Oils – 0.3% | ||||
Marathon Petroleum Corp., 4.75%, 9/15/2044 | $ | 2,350,000 | $ 2,776,611 | |
Marathon Petroleum Corp., 5.85%, 12/15/2045 | 2,507,000 | 3,270,721 | ||
$6,047,332 | ||||
Other Banks & Diversified Financials – 1.0% | ||||
Bangkok Bank (Hong Kong), 3.733% to 9/25/2029, FLR (CMT - 5yr. + 1.9%) to 9/25/2034 (n) | $ | 5,693,000 | $ 5,900,624 | |
BBVA Bancomer S.A. de C.V., 6.75%, 9/30/2022 (n) | 2,570,000 | 2,728,826 | ||
Branch Banking & Trust Co., 2.25%, 3/11/2030 | 910,000 | 923,207 | ||
Groupe BPCE S.A., 4.5%, 3/15/2025 (n) | 5,458,000 | 6,013,614 | ||
Macquarie Bank Ltd. of London, 6.125% to 3/08/2027, FLR (Swap Rate - 5yr. + 4.332%) to 12/31/2165 (n) | 4,694,000 | 5,134,062 | ||
$20,700,333 | ||||
Real Estate - Apartment – 0.1% | ||||
Mid-America Apartment Communities, Inc., REIT, 4.3%, 10/15/2023 | $ | 2,217,000 | $ 2,380,339 | |
Real Estate - Healthcare – 0.1% | ||||
MPT Operating Partnership LP/MPT Financial Co., REIT, 5%, 10/15/2027 | $ | 2,569,000 | $ 2,723,371 | |
Real Estate - Office – 0.4% | ||||
Boston Properties, Inc., REIT, 2.55%, 4/01/2032 | $ | 7,238,000 | $ 7,282,862 | |
Retailers – 0.2% | ||||
MercadoLibre, Inc., 3.125%, 1/14/2031 | $ | 5,002,000 | $ 4,902,160 | |
Specialty Chemicals – 0.1% | ||||
Univar Solutions USA, Inc., 5.125%, 12/01/2027 (n) | $ | 1,165,000 | $ 1,224,706 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Specialty Stores – 0.3% | ||||
Penske Automotive Group Co., 3.75%, 6/15/2029 | $ | 5,155,000 | $ 5,187,174 | |
TJX Cos., Inc., 3.875%, 4/15/2030 | 661,000 | 757,682 | ||
$5,944,856 | ||||
Telecommunications - Wireless – 2.2% | ||||
American Tower Corp., REIT, 3.55%, 7/15/2027 | $ | 11,856,000 | $ 13,023,963 | |
American Tower Corp., REIT, 3.8%, 8/15/2029 | 1,403,000 | 1,563,251 | ||
American Tower Corp., REIT, 3.1%, 6/15/2050 | 1,269,000 | 1,239,791 | ||
Crown Castle International Corp., 3.7%, 6/15/2026 | 2,255,000 | 2,479,735 | ||
Crown Castle International Corp., 4%, 3/01/2027 | 820,000 | 917,651 | ||
Crown Castle International Corp., 3.8%, 2/15/2028 | 3,824,000 | 4,248,771 | ||
Crown Castle International Corp., 3.25%, 1/15/2051 | 947,000 | 941,394 | ||
SBA Communications Corp., 3.875%, 2/15/2027 | 5,059,000 | 5,195,112 | ||
SBA Communications Corp., 3.125%, 2/01/2029 (n) | 4,025,000 | 3,880,366 | ||
T-Mobile USA, Inc., 2.55%, 2/15/2031 | 8,138,000 | 8,229,146 | ||
T-Mobile USA, Inc., 2.875%, 2/15/2031 | 1,557,000 | 1,545,322 | ||
T-Mobile USA, Inc., 4.375%, 4/15/2040 | 1,357,000 | 1,590,811 | ||
$44,855,313 | ||||
Tobacco – 0.3% | ||||
B.A.T. Capital Corp., 3.222%, 8/15/2024 | $ | 5,968,000 | $ 6,338,969 | |
Transportation - Services – 0.4% | ||||
Element Fleet Management Corp., 1.6%, 4/06/2024 (n) | $ | 3,162,000 | $ 3,213,442 | |
ERAC USA Finance LLC, 7%, 10/15/2037 (n) | 3,603,000 | 5,375,206 | ||
$8,588,648 | ||||
U.S. Government Agencies and Equivalents – 1.3% | ||||
Small Business Administration, 4.93%, 1/01/2024 | $ | 2,767 | $ 2,867 | |
Small Business Administration, 4.34%, 3/01/2024 | 5,902 | 6,093 | ||
Small Business Administration, 4.99%, 9/01/2024 | 4,961 | 5,175 | ||
Small Business Administration, 4.86%, 1/01/2025 | 12,636 | 13,211 | ||
Small Business Administration, 4.625%, 2/01/2025 | 13,616 | 14,232 | ||
Small Business Administration, 5.11%, 4/01/2025 | 6,549 | 6,906 | ||
Small Business Administration, 4.43%, 5/01/2029 | 172,663 | 189,196 | ||
Small Business Administration, 3.21%, 9/01/2030 | 2,444,107 | 2,594,280 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Government Agencies and Equivalents – continued | ||||
Small Business Administration, 3.25%, 11/01/2030 | $ | 208,124 | $ 221,555 | |
Small Business Administration, 2.85%, 9/01/2031 | 513,513 | 539,265 | ||
Small Business Administration, 2.37%, 8/01/2032 | 353,118 | 365,937 | ||
Small Business Administration, 2.13%, 1/01/2033 | 1,645,926 | 1,698,342 | ||
Small Business Administration, 2.21%, 2/01/2033 | 474,732 | 494,394 | ||
Small Business Administration, 2.22%, 3/01/2033 | 1,567,474 | 1,620,345 | ||
Small Business Administration, 2.08%, 4/01/2033 | 2,475,419 | 2,560,729 | ||
Small Business Administration, 2.45%, 6/01/2033 | 2,602,377 | 2,706,607 | ||
Small Business Administration, 3.15%, 7/01/2033 | 3,953,759 | 4,224,378 | ||
Small Business Administration, 3.16%, 8/01/2033 | 4,190,020 | 4,476,421 | ||
Small Business Administration, 3.62%, 9/01/2033 | 3,828,607 | 4,147,390 | ||
$25,887,323 | ||||
U.S. Treasury Obligations – 11.4% | ||||
U.S. Treasury Bonds, 1.375%, 11/15/2040 | $ | 43,300,000 | $ 38,895,578 | |
U.S. Treasury Bonds, 2.375%, 11/15/2049 | 18,550,000 | 19,752,852 | ||
U.S. Treasury Notes, 0.125%, 12/31/2022 | 95,500,000 | 95,417,929 | ||
U.S. Treasury Notes, 0.375%, 12/31/2025 | 80,000,000 | 78,484,375 | ||
$232,550,734 | ||||
Utilities - Electric Power – 2.7% | ||||
AEP Transmission Co. LLC, 3.1%, 12/01/2026 | $ | 2,375,000 | $ 2,578,480 | |
Calpine Corp., 3.75%, 3/01/2031 (n) | 6,120,000 | 5,828,382 | ||
Clearway Energy Operating LLC, 4.75%, 3/15/2028 (n) | 6,630,000 | 6,953,212 | ||
Enel Finance International N.V., 3.625%, 5/25/2027 (n) | 7,124,000 | 7,825,400 | ||
Enel Finance International N.V., 3.5%, 4/06/2028 (n) | 5,692,000 | 6,232,187 | ||
FirstEnergy Corp., 5.35%, 7/15/2047 | 6,088,000 | 7,305,600 | ||
FirstEnergy Corp., 3.4%, 3/01/2050 | 2,429,000 | 2,374,348 | ||
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n) | 4,238,000 | 4,301,956 | ||
NextEra Energy Operating Co., 4.5%, 9/15/2027 (n) | 1,685,000 | 1,823,423 | ||
Pacific Gas & Electric Co., 3%, 6/15/2028 | 2,630,000 | 2,641,830 | ||
Pacific Gas & Electric Co., 3.3%, 8/01/2040 | 8,840,000 | 7,983,166 | ||
$55,847,984 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Utilities - Gas – 0.1% | ||||
East Ohio Gas Co., 3%, 6/15/2050 (n) | $ | 1,443,000 | $ 1,428,932 | |
Total Bonds (Identified Cost, $1,894,979,512) | $ 1,972,451,058 | |||
Investment Companies (h) – 9.9% | ||||
Money Market Funds – 9.9% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $201,562,587) | 201,562,587 | $ 201,562,587 | ||
Other Assets, Less Liabilities – (6.6)% | (133,975,685) | |||
Net Assets – 100.0% | $ 2,040,037,960 |
(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 $201,562,587 and $1,972,451,058, 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 $581,434,739, representing 28.5% 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. |
(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 |
Bancorp Commercial Mortgage Trust, 2017-CRE2, “B”, FLR, 1.672% (LIBOR - 1mo. + 1.6%), 8/15/2032 | 2/15/19 | $2,303,495 | $2,314,543 |
% of Net assets | 0.1% |
The following abbreviations are used in this report and are defined: | |
AAC | Ambac Assurance Corp. |
AGM | Assured Guaranty Municipal |
CDO | Collateralized Debt Obligation |
CLO | Collateralized Loan Obligation |
CMT | Constant Maturity Treasury |
FGIC | Financial Guaranty Insurance Co. |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
LIBOR | London Interbank Offered Rate |
NPFG | National Public Finance Guarantee Corp. |
REIT | Real Estate Investment Trust |
SOFR | Secured Overnight Financing Rate |
TBA | To Be Announced |
UMBS | Uniform Mortgage-Backed Security |
Derivative Contracts at 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 | 662 | $127,559,125 | September – 2021 | $4,955,531 |
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 2 yr | Long | USD | 352 | $77,552,750 | September – 2021 | $(137,763) |
U.S. Treasury Ultra Note 10 yr | Short | USD | 691 | 101,717,360 | September – 2021 | (1,371,742) |
$(1,509,505) |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $1,894,979,512) | $1,972,451,058 |
Investments in affiliated issuers, at value (identified cost, $201,562,587) | 201,562,587 |
Cash | 851,430 |
Deposits with brokers for | |
Futures contracts | 1,688,281 |
Receivables for | |
Net daily variation margin on open futures contracts | 418,328 |
Investments sold | 2,075,851 |
TBA sale commitments | 25,020,875 |
Fund shares sold | 167,690 |
Interest | 11,991,628 |
Other assets | 5,111 |
Total assets | $2,216,232,839 |
Liabilities | |
Payables for | |
Investments purchased | $2,920,614 |
TBA purchase commitments | 172,042,885 |
Fund shares reacquired | 945,177 |
Payable to affiliates | |
Investment adviser | 54,407 |
Administrative services fee | 1,513 |
Shareholder servicing costs | 423 |
Distribution and/or service fees | 14,874 |
Accrued expenses and other liabilities | 214,986 |
Total liabilities | $176,194,879 |
Net assets | $2,040,037,960 |
Net assets consist of | |
Paid-in capital | $1,878,894,685 |
Total distributable earnings (loss) | 161,143,275 |
Net assets | $2,040,037,960 |
Shares of beneficial interest outstanding | 147,348,222 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $953,295,203 | 68,132,905 | $13.99 |
Service Class | 1,086,742,757 | 79,215,317 | 13.72 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Interest | $26,929,603 |
Dividends from affiliated issuers | 48,294 |
Other | 250 |
Total investment income | $26,978,147 |
Expenses | |
Management fee | $4,979,335 |
Distribution and/or service fees | 1,335,300 |
Shareholder servicing costs | 24,690 |
Administrative services fee | 132,860 |
Independent Trustees' compensation | 14,866 |
Custodian fee | 49,250 |
Shareholder communications | 56,817 |
Audit and tax fees | 39,355 |
Legal fees | 7,493 |
Miscellaneous | 49,095 |
Total expenses | $6,689,061 |
Reduction of expenses by investment adviser | (119,068) |
Net expenses | $6,569,993 |
Net investment income (loss) | $20,408,154 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $15,155,037 |
Futures contracts | (4,353,750) |
Foreign currency | (166,881) |
Net realized gain (loss) | $10,634,406 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(52,892,342) |
Affiliated issuers | 1 |
Futures contracts | 3,206,357 |
Forward foreign currency exchange contracts | 384,133 |
Translation of assets and liabilities in foreign currencies | (215,677) |
Net unrealized gain (loss) | $(49,517,528) |
Net realized and unrealized gain (loss) | $(38,883,122) |
Change in net assets from operations | $(18,474,968) |
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) | $20,408,154 | $49,347,183 |
Net realized gain (loss) | 10,634,406 | 45,995,015 |
Net unrealized gain (loss) | (49,517,528) | 51,345,923 |
Change in net assets from operations | $(18,474,968) | $146,688,121 |
Total distributions to shareholders | $— | $(63,395,758) |
Change in net assets from fund share transactions | $47,162,438 | $(116,126,286) |
Total change in net assets | $28,687,470 | $(32,833,923) |
Net assets | ||
At beginning of period | 2,011,350,490 | 2,044,184,413 |
At end of period | $2,040,037,960 | $2,011,350,490 |
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 | $14.12 | $13.48 | $12.65 | $13.22 | $13.09 | $13.00 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.15 | $0.37 | $0.42 | $0.39 | $0.36 | $0.40(c) |
Net realized and unrealized gain (loss) | (0.28) | 0.76 | 0.87 | (0.53) | 0.22 | 0.16 |
Total from investment operations | $(0.13) | $1.13 | $1.29 | $(0.14) | $0.58 | $0.56 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.49) | $(0.46) | $(0.43) | $(0.45) | $(0.47) |
Net asset value, end of period (x) | $13.99 | $14.12 | $13.48 | $12.65 | $13.22 | $13.09 |
Total return (%) (k)(r)(s)(x) | (0.92)(n) | 8.47 | 10.21 | (1.09) | 4.46 | 4.23(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.54(a) | 0.54 | 0.54 | 0.54 | 0.54 | 0.53(c) |
Expenses after expense reductions (f) | 0.53(a) | 0.53 | 0.53 | 0.53 | 0.53 | 0.52(c) |
Net investment income (loss) | 2.18(a) | 2.71 | 3.14 | 3.04 | 2.70 | 2.98(c) |
Portfolio turnover | 87(n) | 112 | 79 | 48 | 47 | 37 |
Net assets at end of period (000 omitted) | $953,295 | $921,342 | $939,179 | $862,752 | $997,415 | $986,877 |
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 | $13.86 | $13.24 | $12.43 | $12.99 | $12.87 | $12.78 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.13 | $0.33 | $0.38 | $0.35 | $0.32 | $0.36(c) |
Net realized and unrealized gain (loss) | (0.27) | 0.74 | 0.85 | (0.52) | 0.22 | 0.16 |
Total from investment operations | $(0.14) | $1.07 | $1.23 | $(0.17) | $0.54 | $0.52 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.45) | $(0.42) | $(0.39) | $(0.42) | $(0.43) |
Net asset value, end of period (x) | $13.72 | $13.86 | $13.24 | $12.43 | $12.99 | $12.87 |
Total return (%) (k)(r)(s)(x) | (1.01)(n) | 8.17 | 9.92 | (1.33) | 4.18 | 4.01(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.79(a) | 0.79 | 0.79 | 0.79 | 0.79 | 0.78(c) |
Expenses after expense reductions (f) | 0.78(a) | 0.78 | 0.78 | 0.78 | 0.78 | 0.77(c) |
Net investment income (loss) | 1.93(a) | 2.46 | 2.89 | 2.79 | 2.45 | 2.73(c) |
Portfolio turnover | 87(n) | 112 | 79 | 48 | 47 | 37 |
Net assets at end of period (000 omitted) | $1,086,743 | $1,090,009 | $1,105,005 | $1,137,033 | $1,449,260 | $1,457,118 |
(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 | $— | $258,438,057 | $— | $258,438,057 |
Non - U.S. Sovereign Debt | — | 21,983,060 | — | 21,983,060 |
Municipal Bonds | — | 54,182,225 | — | 54,182,225 |
U.S. Corporate Bonds | — | 645,761,854 | — | 645,761,854 |
Residential Mortgage-Backed Securities | — | 365,676,650 | — | 365,676,650 |
Commercial Mortgage-Backed Securities | — | 199,405,307 | — | 199,405,307 |
Asset-Backed Securities (including CDOs) | — | 181,794,994 | — | 181,794,994 |
Foreign Bonds | — | 245,208,911 | — | 245,208,911 |
Mutual Funds | 201,562,587 | — | — | 201,562,587 |
Total | $201,562,587 | $1,972,451,058 | $— | $2,174,013,645 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $4,955,531 | $— | $— | $4,955,531 |
Futures Contracts – Liabilities | (1,509,505) | — | — | (1,509,505) |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Interest Rate Futures | $4,955,531 | $(1,509,505) |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $(4,353,750) | $— |
Foreign Exchange | — | (166,881) |
Total | $(4,353,750) | $(166,881) |
Risk | Futures Contracts | Forward Foreign Currency Exchange Contracts |
Interest Rate | $3,206,357 | $— |
Foreign Exchange | — | 384,133 |
Total | $3,206,357 | $384,133 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $63,395,758 |
As of 6/30/21 | |
Cost of investments | $2,100,070,543 |
Gross appreciation | 82,581,963 |
Gross depreciation | (8,638,861) |
Net unrealized appreciation (depreciation) | $73,943,102 |
As of 12/31/20 | |
Undistributed ordinary income | 52,720,492 |
Undistributed long-term capital gain | 147,479 |
Other temporary differences | 215,677 |
Net unrealized appreciation (depreciation) | 126,534,595 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $29,795,683 | |
Service Class | — | 33,600,075 | |
Total | $— | $63,395,758 |
Up to $2.5 billion | 0.50% |
In excess of $2.5 billion and up to $5 billion | 0.45% |
In excess of $5 billion | 0.40% |
Purchases | Sales | |
U.S. Government securities | $1,525,543,521 | $1,390,207,660 |
Non-U.S. Government securities | 270,396,620 | 318,171,279 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 6,694,358 | $93,055,275 | 13,168,136 | $181,339,136 | |
Service Class | 6,785,459 | 92,095,544 | 10,980,723 | 150,262,829 | |
13,479,817 | $185,150,819 | 24,148,859 | $331,601,965 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 2,116,668 | $29,167,687 | |
Service Class | — | — | 2,481,542 | 33,600,075 | |
— | $— | 4,598,210 | $62,767,762 | ||
Shares reacquired | |||||
Initial Class | (3,829,834) | $(53,255,047) | (19,695,908) | $(267,503,154) | |
Service Class | (6,224,926) | (84,733,334) | (18,285,133) | (242,992,859) | |
(10,054,760) | $(137,988,381) | (37,981,041) | $(510,496,013) | ||
Net change | |||||
Initial Class | 2,864,524 | $39,800,228 | (4,411,104) | $(56,996,331) | |
Service Class | 560,533 | 7,362,210 | (4,822,868) | (59,129,955) | |
3,425,057 | $47,162,438 | (9,233,972) | $(116,126,286) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $160,402,627 | $384,266,844 | $343,106,885 | $— | $1 | $201,562,587 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $48,294 | $— |
1 | |
2 | |
3 | |
4 | |
7 | |
8 | |
9 | |
10 | |
12 | |
18 | |
19 | |
19 | |
19 | |
19 |
Microsoft Corp. | 6.8% |
Amazon.com, Inc. | 4.9% |
Alphabet, Inc., “A” | 4.7% |
Facebook, Inc., “A” | 3.0% |
Apple, Inc. | 2.9% |
Adobe Systems, Inc. | 2.2% |
Visa, Inc., “A” | 2.2% |
salesforce.com, inc. | 1.7% |
Bank of America Corp. | 1.7% |
Goldman Sachs Group, Inc. | 1.5% |
Technology | 32.3% |
Financial Services | 14.1% |
Consumer Cyclicals | 13.4% |
Capital Goods | 13.4% |
Health Care | 13.1% |
Energy | 5.0% |
Consumer Staples | 4.9% |
Telecommunications/Cable Television (s) | 3.4% |
(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 | 0.78% | $1,000.00 | $1,146.64 | $4.15 |
Hypothetical (h) | 0.78% | $1,000.00 | $1,020.93 | $3.91 | |
Service Class | Actual | 1.03% | $1,000.00 | $1,145.33 | $5.48 |
Hypothetical (h) | 1.03% | $1,000.00 | $1,019.69 | $5.16 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.9% | ||||
Aerospace & Defense – 3.5% | ||||
Honeywell International, Inc. | 41,119 | $ 9,019,452 | ||
Howmet Aerospace, Inc. (a) | 82,295 | 2,836,709 | ||
L3Harris Technologies, Inc. | 23,448 | 5,068,285 | ||
Northrop Grumman Corp. | 9,984 | 3,628,485 | ||
Raytheon Technologies Corp. | 78,209 | 6,672,010 | ||
$27,224,941 | ||||
Alcoholic Beverages – 0.6% | ||||
Constellation Brands, Inc., “A” | 18,367 | $ 4,295,858 | ||
Apparel Manufacturers – 1.3% | ||||
NIKE, Inc., “B” | 65,701 | $ 10,150,147 | ||
Biotechnology – 1.3% | ||||
Illumina, Inc. (a) | 8,744 | $ 4,137,748 | ||
Vertex Pharmaceuticals, Inc. (a) | 30,386 | 6,126,729 | ||
$10,264,477 | ||||
Broadcasting – 0.2% | ||||
Discovery Communications, Inc., “C” (a) | 64,224 | $ 1,861,211 | ||
Brokerage & Asset Managers – 2.0% | ||||
Cboe Global Markets, Inc. | 32,985 | $ 3,926,864 | ||
Charles Schwab Corp. | 161,844 | 11,783,862 | ||
$15,710,726 | ||||
Business Services – 3.7% | ||||
Accenture PLC, “A” | 23,023 | $ 6,786,950 | ||
Fidelity National Information Services, Inc. | 59,510 | 8,430,782 | ||
Fiserv, Inc. (a) | 66,965 | 7,157,889 | ||
Global Payments, Inc. | 32,662 | 6,125,431 | ||
$28,501,052 | ||||
Cable TV – 1.6% | ||||
Cable One, Inc. | 1,311 | $ 2,507,694 | ||
Charter Communications, Inc., “A” (a) | 13,338 | 9,622,700 | ||
$12,130,394 | ||||
Chemicals – 0.4% | ||||
FMC Corp. | 31,538 | $ 3,412,412 | ||
Computer Software – 12.1% | ||||
Adobe Systems, Inc. (a) | 29,011 | $ 16,990,002 | ||
Atlassian Corp. PLC, “A” (a) | 15,703 | 4,033,473 | ||
Cadence Design Systems, Inc. (a) | 50,859 | 6,958,528 | ||
Microsoft Corp. (s) | 196,579 | 53,253,251 | ||
salesforce.com, inc. (a) | 53,653 | 13,105,818 | ||
$94,341,072 | ||||
Computer Software - Systems – 4.9% | ||||
Apple, Inc. | 165,319 | $ 22,642,090 | ||
Constellation Software, Inc. | 3,540 | 5,361,432 | ||
EPAM Systems, Inc. (a) | 11,207 | 5,726,329 | ||
TransUnion | 42,628 | 4,680,981 | ||
$38,410,832 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Construction – 2.8% | ||||
AvalonBay Communities, Inc., REIT | 9,736 | $ 2,031,806 | ||
AZEK Co. LLC (a) | 66,861 | 2,838,918 | ||
Masco Corp. | 71,960 | 4,239,164 | ||
Otis Worldwide Corp. | 53,882 | 4,405,931 | ||
Sherwin-Williams Co. | 17,583 | 4,790,488 | ||
Vulcan Materials Co. | 20,903 | 3,638,585 | ||
$21,944,892 | ||||
Consumer Products – 1.2% | ||||
Colgate-Palmolive Co. | 65,735 | $ 5,347,542 | ||
Kimberly-Clark Corp. | 31,718 | 4,243,234 | ||
$9,590,776 | ||||
Electrical Equipment – 1.6% | ||||
Johnson Controls International PLC | 87,136 | $ 5,980,144 | ||
Sensata Technologies Holding PLC (a) | 60,999 | 3,536,112 | ||
TE Connectivity Ltd. | 22,743 | 3,075,081 | ||
$12,591,337 | ||||
Electronics – 3.3% | ||||
Applied Materials, Inc. | 75,260 | $ 10,717,024 | ||
Lam Research Corp. | 11,291 | 7,347,054 | ||
NXP Semiconductors N.V. | 39,029 | 8,029,046 | ||
$26,093,124 | ||||
Energy - Independent – 2.0% | ||||
ConocoPhillips | 105,218 | $ 6,407,776 | ||
Diamondback Energy, Inc. | 25,036 | 2,350,630 | ||
Pioneer Natural Resources Co. | 25,075 | 4,075,189 | ||
Valero Energy Corp. | 32,942 | 2,572,112 | ||
$15,405,707 | ||||
Food & Beverages – 2.4% | ||||
Hostess Brands, Inc. (a) | 140,850 | $ 2,280,361 | ||
Mondelez International, Inc. | 96,039 | 5,996,675 | ||
Oatly Group AB, ADR (a) | 85,082 | 2,081,106 | ||
PepsiCo, Inc. | 53,992 | 7,999,995 | ||
$18,358,137 | ||||
Food & Drug Stores – 1.2% | ||||
Wal-Mart Stores, Inc. | 67,349 | $ 9,497,556 | ||
Gaming & Lodging – 0.5% | ||||
Penn National Gaming, Inc. (a) | 15,753 | $ 1,204,947 | ||
Wyndham Hotels & Resorts, Inc. | 38,151 | 2,757,936 | ||
$3,962,883 | ||||
General Merchandise – 0.9% | ||||
Dollar General Corp. | 32,362 | $ 7,002,813 | ||
Health Maintenance Organizations – 1.6% | ||||
Cigna Corp. | 31,116 | $ 7,376,670 | ||
Humana, Inc. | 12,160 | 5,383,475 | ||
$12,760,145 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Insurance – 2.7% | ||||
Aon PLC | 44,670 | $ 10,665,409 | ||
Chubb Ltd. | 40,021 | 6,360,938 | ||
Reinsurance Group of America, Inc. | 29,994 | 3,419,316 | ||
Willis Towers Watson PLC | 3,061 | 704,091 | ||
$21,149,754 | ||||
Internet – 7.7% | ||||
Alphabet, Inc., “A” (a)(s) | 14,948 | $ 36,499,877 | ||
Facebook, Inc., “A” (a) | 67,625 | 23,513,889 | ||
$60,013,766 | ||||
Leisure & Toys – 1.0% | ||||
Electronic Arts, Inc. | 55,479 | $ 7,979,545 | ||
Machinery & Tools – 2.0% | ||||
Ingersoll Rand, Inc. (a) | 113,076 | $ 5,519,239 | ||
Roper Technologies, Inc. | 13,945 | 6,556,939 | ||
Trane Technologies PLC | 17,978 | 3,310,469 | ||
$15,386,647 | ||||
Major Banks – 4.3% | ||||
Bank of America Corp. | 316,494 | $ 13,049,048 | ||
Goldman Sachs Group, Inc. | 31,550 | 11,974,172 | ||
PNC Financial Services Group, Inc. | 46,023 | 8,779,347 | ||
$33,802,567 | ||||
Medical & Health Technology & Services – 1.7% | ||||
ICON PLC (a) | 24,364 | $ 5,036,283 | ||
Laboratory Corp. of America Holdings (a) | 15,259 | 4,209,195 | ||
McKesson Corp. | 20,838 | 3,985,059 | ||
$13,230,537 | ||||
Medical Equipment – 4.8% | ||||
Becton, Dickinson and Co. | 23,923 | $ 5,817,834 | ||
Boston Scientific Corp. (a) | 166,503 | 7,119,668 | ||
Danaher Corp. | 43,491 | 11,671,245 | ||
Medtronic PLC | 69,950 | 8,682,893 | ||
STERIS PLC | 19,085 | 3,937,236 | ||
$37,228,876 | ||||
Natural Gas - Pipeline – 0.5% | ||||
Enterprise Products Partners LP | 153,675 | $ 3,708,178 | ||
Network & Telecom – 0.6% | ||||
Equinix, Inc., REIT | 5,828 | $ 4,677,553 | ||
Other Banks & Diversified Financials – 3.9% | ||||
Northern Trust Corp. | 47,855 | $ 5,532,995 | ||
Truist Financial Corp. | 149,556 | 8,300,358 | ||
Visa, Inc., “A” | 72,445 | 16,939,090 | ||
$30,772,443 | ||||
Pharmaceuticals – 3.7% | ||||
Eli Lilly & Co. | 33,016 | $ 7,577,832 | ||
Johnson & Johnson | 41,426 | 6,824,519 | ||
Merck & Co., Inc. | 111,529 | 8,673,610 | ||
Organon & Co. (a) | 11,153 | 337,490 | ||
Zoetis, Inc. | 28,904 | 5,386,550 | ||
$28,800,001 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Railroad & Shipping – 1.3% | ||||
Canadian Pacific Railway Ltd. | 85,614 | $ 6,584,573 | ||
Kansas City Southern Co. | 13,178 | 3,734,250 | ||
$10,318,823 | ||||
Real Estate – 1.1% | ||||
Extra Space Storage, Inc., REIT | 26,841 | $ 4,397,093 | ||
STORE Capital Corp., REIT | 126,695 | 4,372,244 | ||
$8,769,337 | ||||
Restaurants – 1.5% | ||||
Starbucks Corp. | 75,444 | $ 8,435,394 | ||
Wendy's Co. | 142,955 | 3,348,006 | ||
$11,783,400 | ||||
Specialty Chemicals – 1.8% | ||||
Air Products & Chemicals, Inc. | 15,374 | $ 4,422,792 | ||
Axalta Coating Systems Ltd. (a) | 130,604 | 3,982,116 | ||
DuPont de Nemours, Inc. | 67,209 | 5,202,649 | ||
$13,607,557 | ||||
Specialty Stores – 6.7% | ||||
Amazon.com, Inc. (a)(s) | 11,071 | $ 38,086,011 | ||
Home Depot, Inc. | 26,091 | 8,320,159 | ||
Ross Stores, Inc. | 47,448 | 5,883,552 | ||
$52,289,722 | ||||
Telecommunications - Wireless – 2.1% | ||||
SBA Communications Corp., REIT | 31,368 | $ 9,996,982 | ||
T-Mobile USA, Inc. (a) | 46,279 | 6,702,587 | ||
$16,699,569 | ||||
Tobacco – 0.8% | ||||
Philip Morris International, Inc. | 60,393 | $ 5,985,550 | ||
Utilities - Electric Power – 2.6% | ||||
American Electric Power Co., Inc. | 34,761 | $ 2,940,433 | ||
Duke Energy Corp. | 56,250 | 5,553,000 | ||
NextEra Energy, Inc. | 72,214 | 5,291,842 | ||
PG&E Corp. (a) | 239,310 | 2,433,783 | ||
Southern Co. | 70,171 | 4,246,047 | ||
$20,465,105 | ||||
Total Common Stocks (Identified Cost, $403,747,300) | $780,179,422 | |||
Investment Companies (h) – 0.5% | ||||
Money Market Funds – 0.5% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $3,655,781) | 3,655,789 | $ 3,655,790 | ||
Securities Sold Short – (0.3)% | ||||
Telecommunications - Wireless – (0.3)% | ||||
Crown Castle International Corp., REIT (Proceeds Received, $1,060,166) | (12,776) | $ (2,492,598) | ||
Other Assets, Less Liabilities – (0.1)% | (633,592) | |||
Net Assets – 100.0% | $780,709,022 |
(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 $3,655,790 and $780,179,422, 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 |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $403,747,300) | $780,179,422 |
Investments in affiliated issuers, at value (identified cost, $3,655,781) | 3,655,790 |
Cash | 10,806 |
Deposits with brokers for | |
Securities sold short | 20,823 |
Receivables for | |
Fund shares sold | 109,711 |
Dividends | 559,799 |
Other assets | 2,140 |
Total assets | $784,538,491 |
Liabilities | |
Payables for | |
Securities sold short, at value (proceeds received, $1,060,166) | $2,492,598 |
Fund shares reacquired | 1,189,192 |
Payable to affiliates | |
Investment adviser | 18,619 |
Administrative services fee | 617 |
Shareholder servicing costs | 484 |
Distribution and/or service fees | 5,420 |
Accrued expenses and other liabilities | 122,539 |
Total liabilities | $3,829,469 |
Net assets | $780,709,022 |
Net assets consist of | |
Paid-in capital | $325,425,921 |
Total distributable earnings (loss) | 455,283,101 |
Net assets | $780,709,022 |
Shares of beneficial interest outstanding | 20,897,534 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $385,063,154 | 10,215,971 | $37.69 |
Service Class | 395,645,868 | 10,681,563 | 37.04 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $4,400,235 |
Other | 19,230 |
Dividends from affiliated issuers | 1,276 |
Foreign taxes withheld | (11,695) |
Total investment income | $4,409,046 |
Expenses | |
Management fee | $2,840,559 |
Distribution and/or service fees | 477,143 |
Shareholder servicing costs | 18,038 |
Administrative services fee | 53,882 |
Independent Trustees' compensation | 6,331 |
Custodian fee | 18,397 |
Shareholder communications | 25,847 |
Audit and tax fees | 30,355 |
Legal fees | 2,866 |
Dividend and interest expense on securities sold short | 45,656 |
Interest expense and fees | 1,506 |
Miscellaneous | 15,810 |
Total expenses | $3,536,390 |
Reduction of expenses by investment adviser | (94,997) |
Net expenses | $3,441,393 |
Net investment income (loss) | $967,653 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $33,116,792 |
Affiliated issuers | 48 |
Foreign currency | 525 |
Net realized gain (loss) | $33,117,365 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $70,594,690 |
Affiliated issuers | (47) |
Securities sold short | (641,791) |
Translation of assets and liabilities in foreign currencies | (91) |
Net unrealized gain (loss) | $69,952,761 |
Net realized and unrealized gain (loss) | $103,070,126 |
Change in net assets from operations | $104,037,779 |
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) | $967,653 | $3,369,335 |
Net realized gain (loss) | 33,117,365 | 43,017,213 |
Net unrealized gain (loss) | 69,952,761 | 66,022,145 |
Change in net assets from operations | $104,037,779 | $112,408,693 |
Total distributions to shareholders | $— | $(31,733,190) |
Change in net assets from fund share transactions | $(71,055,202) | $(14,633,535) |
Total change in net assets | $32,982,577 | $66,041,968 |
Net assets | ||
At beginning of period | 747,726,445 | 681,684,477 |
At end of period | $780,709,022 | $747,726,445 |
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 | $32.87 | $29.49 | $24.93 | $29.50 | $26.00 | $26.68 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.07 | $0.18 | $0.23 | $0.26 | $0.20 | $0.36(c) |
Net realized and unrealized gain (loss) | 4.75 | 4.62 | 7.66 | (1.04) | 5.67 | 1.98 |
Total from investment operations | $4.82 | $4.80 | $7.89 | $(0.78) | $5.87 | $2.34 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.22) | $(0.24) | $(0.22) | $(0.40) | $(0.22) |
From net realized gain | — | (1.20) | (3.09) | (3.57) | (1.97) | (2.80) |
Total distributions declared to shareholders | $— | $(1.42) | $(3.33) | $(3.79) | $(2.37) | $(3.02) |
Net asset value, end of period (x) | $37.69 | $32.87 | $29.49 | $24.93 | $29.50 | $26.00 |
Total return (%) (k)(r)(s)(x) | 14.66(n) | 16.59 | 32.95 | (4.37) | 23.37 | 8.74(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.81(a) | 0.82 | 0.83 | 0.82 | 0.83 | 0.80(c) |
Expenses after expense reductions (f) | 0.78(a) | 0.79 | 0.81 | 0.81 | 0.81 | 0.79(c) |
Net investment income (loss) | 0.38(a) | 0.62 | 0.82 | 0.88 | 0.70 | 1.36(c) |
Portfolio turnover | 6(n) | 39 | 35 | 31 | 37 | 45 |
Net assets at end of period (000 omitted) | $385,063 | $372,405 | $361,842 | $319,422 | $394,867 | $386,256 |
Supplemental Ratios (%): | ||||||
Ratios of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees (f) | 0.77(a) | 0.77 | 0.78 | 0.79 | 0.79 | 0.78(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 | $32.34 | $29.05 | $24.61 | $29.17 | $25.73 | $26.42 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.02 | $0.11 | $0.16 | $0.18 | $0.13 | $0.29(c) |
Net realized and unrealized gain (loss) | 4.68 | 4.54 | 7.55 | (1.03) | 5.61 | 1.96 |
Total from investment operations | $4.70 | $4.65 | $7.71 | $(0.85) | $5.74 | $2.25 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.16) | $(0.18) | $(0.14) | $(0.33) | $(0.14) |
From net realized gain | — | (1.20) | (3.09) | (3.57) | (1.97) | (2.80) |
Total distributions declared to shareholders | $— | $(1.36) | $(3.27) | $(3.71) | $(2.30) | $(2.94) |
Net asset value, end of period (x) | $37.04 | $32.34 | $29.05 | $24.61 | $29.17 | $25.73 |
Total return (%) (k)(r)(s)(x) | 14.53(n) | 16.31 | 32.60 | (4.62) | 23.07 | 8.49(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.06(a) | 1.07 | 1.08 | 1.07 | 1.08 | 1.05(c) |
Expenses after expense reductions (f) | 1.03(a) | 1.04 | 1.06 | 1.06 | 1.06 | 1.04(c) |
Net investment income (loss) | 0.13(a) | 0.37 | 0.57 | 0.63 | 0.47 | 1.11(c) |
Portfolio turnover | 6(n) | 39 | 35 | 31 | 37 | 45 |
Net assets at end of period (000 omitted) | $395,646 | $375,322 | $319,842 | $215,898 | $228,102 | $220,341 |
Supplemental Ratios (%): | ||||||
Ratios of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees (f) | 1.02(a) | 1.02 | 1.03 | 1.04 | 1.04 | 1.03(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 | $780,179,422 | $— | $— | $780,179,422 |
Mutual Funds | 3,655,790 | — | — | 3,655,790 |
Total | $783,835,212 | $— | $— | $783,835,212 |
Securities Sold Short | $(2,492,598) | $— | $— | $(2,492,598) |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $6,781,157 |
Long-term capital gains | 24,952,033 |
Total distributions | $31,733,190 |
As of 6/30/21 | |
Cost of investments | $409,610,834 |
Gross appreciation | 376,270,981 |
Gross depreciation | (2,046,603) |
Net unrealized appreciation (depreciation) | $374,224,378 |
As of 12/31/20 | |
Undistributed ordinary income | 6,770,939 |
Undistributed long-term capital gain | 40,139,242 |
Other temporary differences | 1,496,047 |
Net unrealized appreciation (depreciation) | 302,839,094 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $16,028,106 | |
Service Class | — | 15,705,084 | |
Total | $— | $31,733,190 |
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 | 194,837 | $6,910,032 | 764,523 | $19,867,933 | |
Service Class | 217,250 | 7,474,328 | 2,051,974 | 55,469,934 | |
412,087 | $14,384,360 | 2,816,497 | $75,337,867 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 522,599 | $16,028,106 | |
Service Class | — | — | 520,036 | 15,705,084 | |
— | $— | 1,042,635 | $31,733,190 | ||
Shares reacquired | |||||
Initial Class | (1,307,686) | $(45,998,770) | (2,228,768) | $(65,370,350) | |
Service Class | (1,139,872) | (39,440,792) | (1,976,828) | (56,334,242) | |
(2,447,558) | $(85,439,562) | (4,205,596) | $(121,704,592) | ||
Net change | |||||
Initial Class | (1,112,849) | $(39,088,738) | (941,646) | $(29,474,311) | |
Service Class | (922,622) | (31,966,464) | 595,182 | 14,840,776 | |
(2,035,471) | $(71,055,202) | (346,464) | $(14,633,535) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $6,109,231 | $77,628,738 | $80,082,180 | $48 | $(47) | $3,655,790 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,276 | $— |
1 | |
2 | |
4 | |
5 | |
15 | |
16 | |
17 | |
18 | |
20 | |
27 | |
28 | |
28 | |
28 | |
28 |
U.S. Treasury Notes, 0.375%, 11/30/2025 | 2.8% |
U.S. Treasury Notes, 1.375%, 1/31/2025 | 2.7% |
Goldman Sachs Group, Inc. | 2.3% |
Microsoft Corp. | 2.1% |
Comcast Corp., “A” | 2.0% |
U.S. Treasury Notes, 0.125%, 12/31/2022 | 1.8% |
Fannie Mae, 2%, 30 year | 1.8% |
JPMorgan Chase & Co. | 1.7% |
Johnson & Johnson | 1.7% |
Charles Schwab Corp. | 1.6% |
AAA | 4.7% |
AA | 1.3% |
A | 3.3% |
BBB | 9.1% |
BB | 0.3% |
B (o) | 0.0% |
CCC (o) | 0.0% |
U.S. Government | 10.1% |
Federal Agencies | 10.7% |
Not Rated (o) | 0.0% |
Non-Fixed Income | 59.3% |
Cash & Cash Equivalents | 1.2% |
Financials | 14.7% |
Health Care | 9.6% |
Industrials | 9.3% |
Information Technology | 8.0% |
Consumer Staples | 5.1% |
Communication Services | 3.7% |
Utilities | 2.2% |
Consumer Discretionary | 2.1% |
Materials | 1.9% |
Energy | 1.2% |
Convertible Debt | 1.2% |
Real Estate | 0.3% |
Investment Grade Corporates | 12.1% |
Mortgage-Backed Securities | 10.7% |
U.S. Treasury Securities | 10.1% |
Commercial Mortgage-Backed Securities | 2.6% |
Collateralized Debt Obligations | 2.2% |
Asset-Backed Securities | 0.5% |
Emerging Markets Bonds | 0.4% |
Municipal Bonds | 0.4% |
Non-U.S. Government Bonds | 0.3% |
High Yield Corporates | 0.2% |
U.S. Government Agencies (o) | 0.0% |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 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 |
(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. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(o) | Less than 0.1%. |
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 | 0.61% | $1,000.00 | $1,093.39 | $3.17 |
Hypothetical (h) | 0.61% | $1,000.00 | $1,021.77 | $3.06 | |
Service Class | Actual | 0.86% | $1,000.00 | $1,091.77 | $4.46 |
Hypothetical (h) | 0.86% | $1,000.00 | $1,020.53 | $4.31 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 57.8% | ||||
Aerospace & Defense – 2.4% | ||||
Honeywell International, Inc. | 125,869 | $ 27,609,365 | ||
L3Harris Technologies, Inc. | 76,396 | 16,512,995 | ||
Lockheed Martin Corp. | 22,436 | 8,488,661 | ||
Northrop Grumman Corp. | 30,845 | 11,209,998 | ||
$63,821,019 | ||||
Alcoholic Beverages – 0.6% | ||||
Constellation Brands, Inc., “A” | 31,986 | $ 7,481,206 | ||
Diageo PLC | 177,377 | 8,492,103 | ||
$15,973,309 | ||||
Automotive – 1.2% | ||||
Aptiv PLC (a) | 28,884 | $ 4,544,320 | ||
Lear Corp. | 84,375 | 14,789,250 | ||
LKQ Corp. (a) | 261,997 | 12,895,492 | ||
$32,229,062 | ||||
Biotechnology – 0.3% | ||||
Vertex Pharmaceuticals, Inc. (a) | 44,068 | $ 8,885,431 | ||
Broadcasting – 0.3% | ||||
Discovery Communications, Inc., “C” (a) | 214,534 | $ 6,217,195 | ||
Omnicom Group, Inc. | 33,297 | 2,663,427 | ||
$8,880,622 | ||||
Brokerage & Asset Managers – 2.9% | ||||
BlackRock, Inc. | 10,423 | $ 9,119,812 | ||
Cboe Global Markets, Inc. | 77,659 | 9,245,304 | ||
Charles Schwab Corp. | 573,556 | 41,760,613 | ||
Invesco Ltd. | 308,180 | 8,237,651 | ||
NASDAQ, Inc. | 54,472 | 9,576,178 | ||
$77,939,558 | ||||
Business Services – 2.5% | ||||
Accenture PLC, “A” | 66,262 | $ 19,533,375 | ||
Amdocs Ltd. | 133,731 | 10,345,430 | ||
Cognizant Technology Solutions Corp., “A” | 56,795 | 3,933,622 | ||
Equifax, Inc. | 33,862 | 8,110,288 | ||
Fidelity National Information Services, Inc. | 91,615 | 12,979,097 | ||
Fiserv, Inc. (a) | 116,989 | 12,504,954 | ||
$67,406,766 | ||||
Cable TV – 2.0% | ||||
Comcast Corp., “A” | 930,361 | $ 53,049,184 | ||
Chemicals – 1.2% | ||||
3M Co. | 64,104 | $ 12,732,978 | ||
PPG Industries, Inc. | 113,352 | 19,243,769 | ||
$31,976,747 | ||||
Computer Software – 2.4% | ||||
Microsoft Corp. | 203,548 | $ 55,141,153 | ||
Oracle Corp. | 125,305 | 9,753,741 | ||
$64,894,894 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Construction – 1.5% | ||||
Masco Corp. | 374,143 | $ 22,040,764 | ||
Otis Worldwide Corp. | 51,959 | 4,248,688 | ||
Stanley Black & Decker, Inc. | 44,162 | 9,052,768 | ||
Vulcan Materials Co. | 30,981 | 5,392,863 | ||
$40,735,083 | ||||
Consumer Products – 0.7% | ||||
Colgate-Palmolive Co. | 119,569 | $ 9,726,938 | ||
Kimberly-Clark Corp. | 58,439 | 7,817,970 | ||
$17,544,908 | ||||
Consumer Services – 0.2% | ||||
Booking Holdings, Inc. (a) | 1,738 | $ 3,802,900 | ||
Electrical Equipment – 1.2% | ||||
Johnson Controls International PLC | 468,624 | $ 32,161,665 | ||
Electronics – 3.1% | ||||
Applied Materials, Inc. | 105,014 | $ 14,953,994 | ||
Intel Corp. | 362,201 | 20,333,964 | ||
NXP Semiconductors N.V. | 61,292 | 12,608,990 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 118,938 | 14,291,590 | ||
Texas Instruments, Inc. | 107,079 | 20,591,292 | ||
$82,779,830 | ||||
Energy - Independent – 1.2% | ||||
ConocoPhillips | 137,995 | $ 8,403,895 | ||
Hess Corp. | 166,533 | 14,541,662 | ||
Pioneer Natural Resources Co. | 27,286 | 4,434,521 | ||
Valero Energy Corp. | 64,897 | 5,067,158 | ||
$32,447,236 | ||||
Food & Beverages – 2.2% | ||||
Archer Daniels Midland Co. | 157,327 | $ 9,534,016 | ||
Danone S.A. | 117,826 | 8,294,713 | ||
General Mills, Inc. | 128,011 | 7,799,711 | ||
J.M. Smucker Co. | 36,488 | 4,727,750 | ||
Mondelez International, Inc. | 105,589 | 6,592,977 | ||
Nestle S.A. | 106,419 | 13,252,199 | ||
PepsiCo, Inc. | 49,959 | 7,402,425 | ||
$57,603,791 | ||||
Food & Drug Stores – 0.6% | ||||
Wal-Mart Stores, Inc. | 119,549 | $ 16,858,800 | ||
Health Maintenance Organizations – 1.4% | ||||
Cigna Corp. | 161,246 | $ 38,226,589 | ||
Insurance – 3.1% | ||||
Aon PLC | 91,632 | $ 21,878,056 | ||
Chubb Ltd. | 138,699 | 22,044,819 | ||
Marsh & McLennan Cos., Inc. | 59,949 | 8,433,625 | ||
Travelers Cos., Inc. | 94,480 | 14,144,601 | ||
Willis Towers Watson PLC | 64,134 | 14,752,103 | ||
$81,253,204 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Internet – 0.5% | ||||
Alphabet, Inc., “A” (a) | 5,097 | $ 12,445,804 | ||
Leisure & Toys – 0.3% | ||||
Electronic Arts, Inc. | 60,636 | $ 8,721,276 | ||
Machinery & Tools – 2.3% | ||||
Eaton Corp. PLC | 240,570 | $ 35,647,663 | ||
Ingersoll Rand, Inc. (a) | 245,485 | 11,982,123 | ||
PACCAR, Inc. | 43,305 | 3,864,971 | ||
Trane Technologies PLC | 54,816 | 10,093,818 | ||
$61,588,575 | ||||
Major Banks – 6.6% | ||||
Bank of America Corp. | 867,078 | $ 35,749,626 | ||
Goldman Sachs Group, Inc. | 159,775 | 60,639,406 | ||
JPMorgan Chase & Co. | 287,541 | 44,724,127 | ||
Morgan Stanley | 194,360 | 17,820,868 | ||
PNC Financial Services Group, Inc. | 95,838 | 18,282,057 | ||
$177,216,084 | ||||
Medical & Health Technology & Services – 1.4% | ||||
ICON PLC (a) | 29,690 | $ 6,137,220 | ||
McKesson Corp. | 77,581 | 14,836,590 | ||
Quest Diagnostics, Inc. | 114,478 | 15,107,662 | ||
$36,081,472 | ||||
Medical Equipment – 2.7% | ||||
Becton, Dickinson and Co. | 31,790 | $ 7,731,010 | ||
Danaher Corp. | 97,708 | 26,220,919 | ||
Medtronic PLC | 221,620 | 27,509,691 | ||
Thermo Fisher Scientific, Inc. | 22,996 | 11,600,792 | ||
$73,062,412 | ||||
Metals & Mining – 0.2% | ||||
Rio Tinto PLC | 67,825 | $ 5,581,490 | ||
Other Banks & Diversified Financials – 2.2% | ||||
Northern Trust Corp. | 77,937 | $ 9,011,076 | ||
Truist Financial Corp. | 585,699 | 32,506,295 | ||
U.S. Bancorp | 276,625 | 15,759,326 | ||
$57,276,697 | ||||
Pharmaceuticals – 3.7% | ||||
Bayer AG | 69,069 | $ 4,194,026 | ||
Johnson & Johnson | 270,130 | 44,501,216 | ||
Merck & Co., Inc. | 436,793 | 33,969,391 | ||
Organon & Co. (a) | 142,691 | 4,317,830 | ||
Roche Holding AG | 34,017 | 12,814,510 | ||
$99,796,973 | ||||
Railroad & Shipping – 1.0% | ||||
Union Pacific Corp. | 124,425 | $ 27,364,790 | ||
Real Estate – 0.3% | ||||
STORE Capital Corp., REIT | 257,387 | $ 8,882,425 | ||
Restaurants – 0.2% | ||||
Wendy's Co. | 210,600 | $ 4,932,252 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Specialty Chemicals – 0.8% | ||||
Axalta Coating Systems Ltd. (a) | 371,731 | $ 11,334,078 | ||
DuPont de Nemours, Inc. | 117,256 | 9,076,787 | ||
$20,410,865 | ||||
Specialty Stores – 0.5% | ||||
Home Depot, Inc. | 44,234 | $ 14,105,780 | ||
Telecommunications - Wireless – 0.6% | ||||
T-Mobile USA, Inc. (a) | 114,201 | $ 16,539,731 | ||
Tobacco – 1.0% | ||||
Philip Morris International, Inc. | 279,579 | $ 27,709,075 | ||
Trucking – 0.3% | ||||
United Parcel Service, Inc., “B” | 31,911 | $ 6,636,531 | ||
Utilities - Electric Power – 2.2% | ||||
Duke Energy Corp. | 199,832 | $ 19,727,415 | ||
Exelon Corp. | 223,135 | 9,887,112 | ||
PG&E Corp. (a) | 887,138 | 9,022,193 | ||
Pinnacle West Capital Corp. | 63,549 | 5,209,112 | ||
Southern Co. | 255,612 | 15,467,082 | ||
$59,312,914 | ||||
Total Common Stocks (Identified Cost, $832,001,820) | $ 1,546,135,744 | |||
Bonds – 39.3% | ||||
Aerospace & Defense – 0.2% | ||||
BAE Systems PLC, 3.4%, 4/15/2030 (n) | $ | 1,108,000 | $ 1,204,290 | |
Huntington Ingalls Industries, Inc., 3.844%, 5/01/2025 | 591,000 | 644,025 | ||
L3Harris Technologies, Inc., 3.85%, 6/15/2023 | 2,215,000 | 2,354,347 | ||
Raytheon Technologies Corp., 4.125%, 11/16/2028 | 1,570,000 | 1,806,379 | ||
$6,009,041 | ||||
Apparel Manufacturers – 0.0% | ||||
NIKE, Inc., “B”, 3.25%, 3/27/2040 | $ | 773,000 | $ 848,678 | |
Asset-Backed & Securitized – 5.3% | ||||
Allegro CLO Ltd., 2016-1A, “BR2”, FLR, 1.734% (LIBOR - 3mo. + 1.55%), 1/15/2030 (n) | $ | 2,407,803 | $ 2,407,805 | |
ALM Loan Funding, CLO, 2013-7R2A, “A1B2”, FLR, 1.583% (LIBOR - 3mo. + 1.4%), 10/15/2027 (n) | 4,410,000 | 4,341,085 | ||
Arbor Realty Trust, Inc., CLO, 2020-FL1, “AS”, FLR, 1.524% (LIBOR - 1mo. + 1.4%), 2/15/2035 (n) | 1,150,000 | 1,149,954 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “AS”, FLR, 1.272% (LIBOR - 1mo. + 1.2%) 12/15/2035 (n) | 2,115,000 | 2,115,000 | ||
AREIT CRE Trust, 2019-CRE3, “AS”, FLR, 1.424% (LIBOR - 1mo. + 1.3%), 9/14/2036 (n) | 3,366,000 | 3,361,823 | ||
Avis Budget Rental Car Funding LLC, 2019-1A, “A”, 3.45%, 3/20/2023 (n) | 3,880,000 | 3,942,158 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
Bancorp Commercial Mortgage Trust, 2019-CRE6, “AS”, FLR, 1.424% (LIBOR - 1mo. + 1.3%), 9/15/2036 (n) | $ | 3,469,924 | $ 3,467,850 | |
Bayview Financial Revolving Mortgage Loan Trust, FLR, 1.695% (LIBOR - 1mo. + 1.6%), 12/28/2040 (n) | 902,138 | 970,157 | ||
BDS Ltd., 2019-FL4, “A”, FLR, 1.181% (LIBOR - 1mo. + 1.10%), 8/15/2036 (n) | 2,416,000 | 2,414,526 | ||
BPCRE Holder LLC, FLR, 0.931% (LIBOR - 1mo. + 0.85%), 2/15/2037 (n) | 1,310,500 | 1,310,500 | ||
BSPRT Issuer Ltd., 2021-FL6, “AS”, FLR, 1.372% (LIBOR - 1mo. + 1.3%), 3/15/2036 (n) | 4,964,000 | 4,960,912 | ||
Business Jet Securities LLC, 2021-1A, “A”, 2.162%, 4/15/2036 (n) | 1,493,686 | 1,505,167 | ||
BXMT Ltd., 2021-FL4, “AS”, FLR, 1.372% (LIBOR - 1mo. + 1.3%), 5/15/2038 (n) | 5,214,000 | 5,214,020 | ||
CHCP 2021-FL1 Ltd., “AS”, FLR, 1.424% (LIBOR - 1mo. + 1.3%) 2/15/2038 (n) | 2,203,500 | 2,205,577 | ||
Chesapeake Funding II LLC, 2018-1A, “A1”, 3.04%, 4/15/2030 (n) | 319,642 | 320,060 | ||
Columbia Cent CLO 28 Ltd., “A-2-R”, 1.87%, 11/07/2030 (n) | 3,492,733 | 3,492,712 | ||
Commercial Mortgage Pass-Through Certificates, 2019-BN17, “A4”, 3.714%, 4/15/2052 | 2,789,000 | 3,140,225 | ||
Commercial Mortgage Trust, 2015-LC21, “A4”, 3.708%, 7/10/2048 | 3,980,975 | 4,346,595 | ||
Credit Acceptance Auto Loan Trust, 2021-3A, “B”, 1.38%, 7/15/2030 (n) | 1,118,000 | 1,116,380 | ||
CSAIL Commercial Mortgage Trust, 2015-C2, “A4”, 3.504%, 6/15/2057 | 2,316,427 | 2,500,927 | ||
Cutwater Ltd., 2015-1A, “AR”, FLR, 1.404% (LIBOR - 3mo. + 1.22%), 1/15/2029 (n) | 3,359,444 | 3,359,515 | ||
Dryden Senior Loan Fund, 2013-26A, “AR”, CLO, FLR, 1.084% (LIBOR - 3mo. + 0.9%), 4/15/2029 (n) | 2,088,000 | 2,087,829 | ||
Dryden Senior Loan Fund, 2018-55A, “A1”, CLO, FLR, 1.203% (LIBOR - 3mo. + 1.02%), 4/15/2031 (n) | 4,414,000 | 4,415,673 | ||
Exeter Automobile Receivables Trust, 2020-1, 2.26%, 4/15/2024 (n) | 702,443 | 705,941 | ||
Fort CRE LLC, 2018-1A, “A1”, FLR, 1.445% (LIBOR - 1mo. + 1.35%), 11/16/2035 (n) | 1,258,489 | 1,258,489 | ||
GLS Auto Receivables Trust, 2020-1A, “A”, 2.17%, 2/15/2024 (n) | 348,466 | 350,441 | ||
GMAC Mortgage Corp. Loan Trust, FGIC, 5.805%, 10/25/2036 | 191,776 | 202,606 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
GS Mortgage Securities Trust, 2015-GC30, “A4”, 3.382%, 5/10/2050 | $ | 4,243,101 | $ 4,589,201 | |
GS Mortgage Securities Trust, 2019-GSA1, “A4”, 3.047%, 11/10/2052 | 2,182,474 | 2,358,379 | ||
GS Mortgage Securities Trust, 2020-GC45, “A5”, 2.91%, 2/13/2053 | 2,001,659 | 2,145,806 | ||
JPMBB Commercial Mortgage Securities Trust, 2014-C26, 3.494%, 1/15/2048 | 4,880,000 | 5,267,719 | ||
JPMBB Commercial Mortgage Securities Trust, 2015-C28, “A4”, 3.227%, 10/15/2048 | 3,256,792 | 3,477,212 | ||
KKR Real Estate Financial Trust, Inc., 2018-FL1, “A”, FLR, 1.181% (LIBOR - 1mo. + 1.1%), 6/15/2036 (n) | 2,007,207 | 2,007,830 | ||
LoanCore Ltd., 2021-CRE5, “AS”, 1.823%, 7/15/2036 (n) | 5,288,000 | 5,292,945 | ||
MF1 CLO Ltd., 2019-FL2, “A”, FLR, 1.262% (LIBOR - 1mo. + 1.13%), 12/25/2034 (n) | 1,556,068 | 1,556,068 | ||
MF1 CLO Ltd., 2021-FL5, “AS”, FLR, 1.324% (LIBOR - 1mo. + 1.2%), 7/15/2036 (n) | 5,459,500 | 5,454,385 | ||
MF1 Multi-Family Housing Mortgage Loan Trust, 2020-FL4, “A”, FLR, 1.824% (LIBOR - 1mo. + 1.7%), 11/15/2035 (n) | 1,701,000 | 1,714,818 | ||
MidOcean Credit CLO, 2013-2A, “BR”, FLR, 1.853% (LIBOR - 3mo. + 1.65%), 1/29/2030 (n) | 3,932,725 | 3,932,863 | ||
Morgan Stanley Bank of America Merrill Lynch Trust, 2017-C34, “A4”, 3.536%, 11/15/2052 | 1,600,004 | 1,773,934 | ||
Morgan Stanley Capital I Trust, 2017-H1, “A5”, 3.53%, 6/15/2050 | 1,456,742 | 1,607,721 | ||
Neuberger Berman CLO XX, Ltd., 2015-20A, FLR, 1.298% (LIBOR - 3mo. + 1.16%), 7/15/2034 (n) | 1,900,000 | 1,901,550 | ||
Oaktree CLO Ltd., 2015-1A, “A2AR”, FLR, 1.538% (LIBOR - 3mo. + 1.35%), 10/20/2027 (n) | 809,537 | 809,131 | ||
PFP III Ltd., 2021-7, “AS”, FLR, 1.222% (LIBOR - 1mo. + 1.15%), 4/14/2038 (n) | 3,912,500 | 3,902,766 | ||
Ready Capital Mortgage Financing LLC, 2021-FL5, FLR, 1.091% (LIBOR - 1mo. + 1%) 4/25/2038 (n) | 3,140,000 | 3,140,980 | ||
Residential Funding Mortgage Securities, Inc., FGIC, 4.969%, 12/25/2035 | 81,722 | 81,162 | ||
Santander Retail Auto Lease Trust, 2020-A, “B”, 1.88%, 3/20/2024 (n) | 1,631,000 | 1,663,402 | ||
TPG Real Estate Finance, 2021-FL4, “A”, FLR, 1.281% (LIBOR - 1mo. + 1.2%), 3/15/2038 (n) | 5,181,500 | 5,186,355 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
UBS Commercial Mortgage Trust, 2017-C8, “A4”, 3.983%, 2/15/2051 | $ | 2,950,000 | $ 3,336,149 | |
UBS Commercial Mortgage Trust, 2019-C17, “A4”, 2.921%, 9/15/2052 | 2,461,404 | 2,615,703 | ||
Verizon Owner Trust, 2020-A, “B”, 1.98%, 7/22/2024 | 2,616,000 | 2,685,746 | ||
Veros Auto Receivables Trust, 2020-1, “A”, 1.67%, 9/15/2023 (n) | 542,187 | 543,506 | ||
Wells Fargo Commercial Mortgage Trust, 2015-C28, “A4”, 3.54%, 5/15/2048 | 4,315,766 | 4,692,160 | ||
Wells Fargo Commercial Mortgage Trust, 2019-C54, “A4”, 3.146%, 12/15/2052 | 3,579,870 | 3,894,881 | ||
$142,296,299 | ||||
Automotive – 0.5% | ||||
General Motors Co., 6.75%, 4/01/2046 | $ | 992,000 | $ 1,430,238 | |
Hyundai Capital America, 2.65%, 2/10/2025 (n) | 943,000 | 986,357 | ||
Hyundai Capital America, 3%, 2/10/2027 (n) | 1,959,000 | 2,075,375 | ||
Lear Corp., 3.8%, 9/15/2027 | 2,187,000 | 2,410,511 | ||
Lear Corp., 4.25%, 5/15/2029 | 769,000 | 865,602 | ||
Magna International, Inc., 2.45%, 6/15/2030 | 2,229,000 | 2,277,729 | ||
Volkswagen Group of America Finance LLC, 3.35%, 5/13/2025 (n) | 3,867,000 | 4,172,909 | ||
$14,218,721 | ||||
Broadcasting – 0.1% | ||||
Walt Disney Co., 3.5%, 5/13/2040 | $ | 1,460,000 | $ 1,627,754 | |
Walt Disney Co., 3.6%, 1/13/2051 | 893,000 | 1,012,222 | ||
$2,639,976 | ||||
Brokerage & Asset Managers – 0.3% | ||||
E*TRADE Financial Corp., 4.5%, 6/20/2028 | $ | 975,000 | $ 1,128,830 | |
Intercontinental Exchange, Inc., 2.1%, 6/15/2030 | 2,155,000 | 2,139,958 | ||
Intercontinental Exchange, Inc., 1.85%, 9/15/2032 | 634,000 | 599,997 | ||
National Securities Clearing Corp., 1.5%, 4/23/2025 (n) | 1,462,000 | 1,490,991 | ||
Raymond James Financial, Inc., 4.95%, 7/15/2046 | 2,057,000 | 2,658,480 | ||
$8,018,256 | ||||
Building – 0.3% | ||||
CRH America Finance, Inc., 4.5%, 4/04/2048 (n) | $ | 1,146,000 | $ 1,397,403 | |
Martin Marietta Materials, Inc., 3.5%, 12/15/2027 | 815,000 | 897,146 | ||
Martin Marietta Materials, Inc., 2.5%, 3/15/2030 | 223,000 | 226,789 | ||
Masco Corp., 2%, 2/15/2031 | 4,244,000 | 4,142,751 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Building – continued | ||||
Vulcan Materials Co., 3.5%, 6/01/2030 | $ | 380,000 | $ 418,875 | |
$7,082,964 | ||||
Business Services – 0.9% | ||||
Equinix, Inc., 2.625%, 11/18/2024 | $ | 2,863,000 | $ 3,012,394 | |
Equinix, Inc., 1.8%, 7/15/2027 | 1,829,000 | 1,851,205 | ||
Experian Finance PLC, 4.25%, 2/01/2029 (n) | 1,699,000 | 1,928,016 | ||
Fiserv, Inc., 2.65%, 6/01/2030 | 730,000 | 755,825 | ||
Fiserv, Inc., 4.4%, 7/01/2049 | 1,461,000 | 1,762,203 | ||
Global Payments, Inc., 1.2%, 3/01/2026 | 2,357,000 | 2,334,490 | ||
IHS Markit Ltd., 3.625%, 5/01/2024 | 336,000 | 360,766 | ||
IHS Markit Ltd., 4.75%, 2/15/2025 (n) | 555,000 | 621,322 | ||
IHS Markit Ltd., 4%, 3/01/2026 (n) | 1,759,000 | 1,949,851 | ||
IHS Markit Ltd., 4.25%, 5/01/2029 | 795,000 | 919,974 | ||
NXP B.V./NXP Funding LLC/NXP USA, Inc., 2.5%, 5/11/2031 (n) | 2,212,000 | 2,233,880 | ||
NXP B.V./NXP Funding LLC/NXP USA, Inc., 3.25%, 5/11/2041 (n) | 1,896,000 | 1,949,410 | ||
RELX Capital, Inc., 3%, 5/22/2030 | 620,000 | 662,415 | ||
Tencent Holdings Ltd., 2.39%, 6/03/2030 (n) | 1,814,000 | 1,807,244 | ||
Verisk Analytics, Inc., 4.125%, 3/15/2029 | 2,176,000 | 2,468,159 | ||
Western Union Co., 2.85%, 1/10/2025 | 578,000 | 611,064 | ||
$25,228,218 | ||||
Cable TV – 0.4% | ||||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 6.384%, 10/23/2035 | $ | 1,053,000 | $ 1,407,510 | |
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 3.5%, 6/01/2041 | 2,122,000 | 2,136,366 | ||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 5.375%, 5/01/2047 | 430,000 | 526,926 | ||
Comcast Corp., 2.8%, 1/15/2051 | 964,000 | 927,493 | ||
Cox Communications, Inc., 1.8%, 10/01/2030 (n) | 1,333,000 | 1,270,450 | ||
Time Warner Entertainment Co. LP, 8.375%, 7/15/2033 | 2,526,000 | 3,827,472 | ||
$10,096,217 | ||||
Chemicals – 0.1% | ||||
Sherwin-Williams Co., 2.3%, 5/15/2030 | $ | 1,590,000 | $ 1,608,431 | |
Sherwin-Williams Co., 4.5%, 6/01/2047 | 1,060,000 | 1,325,857 | ||
$2,934,288 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Computer Software – 0.1% | ||||
Dell International LLC/EMC Corp., 4.9%, 10/01/2026 | $ | 1,640,000 | $ 1,892,698 | |
Microsoft Corp., 2.525%, 6/01/2050 | 2,011,000 | 1,975,769 | ||
$3,868,467 | ||||
Computer Software - Systems – 0.1% | ||||
Apple, Inc., 3.85%, 5/04/2043 | $ | 1,148,000 | $ 1,364,212 | |
Conglomerates – 0.4% | ||||
Carrier Global Corp., 3.377%, 4/05/2040 | $ | 3,222,000 | $ 3,379,633 | |
Roper Technologies, Inc., 4.2%, 9/15/2028 | 791,000 | 909,636 | ||
Roper Technologies, Inc., 2.95%, 9/15/2029 | 482,000 | 515,352 | ||
Roper Technologies, Inc., 2%, 6/30/2030 | 1,526,000 | 1,502,729 | ||
Westinghouse Air Brake Technologies Corp., 3.2%, 6/15/2025 | 808,000 | 859,308 | ||
Westinghouse Air Brake Technologies Corp., 4.95%, 9/15/2028 | 2,112,000 | 2,449,892 | ||
$9,616,550 | ||||
Consumer Products – 0.1% | ||||
Kimberly-Clark Corp., 3.1%, 3/26/2030 | $ | 252,000 | $ 278,555 | |
Reckitt Benckiser Treasury Services PLC, 2.75%, 6/26/2024 (n) | 1,097,000 | 1,158,312 | ||
$1,436,867 | ||||
Consumer Services – 0.1% | ||||
Booking Holdings, Inc., 4.625%, 4/13/2030 | $ | 1,430,000 | $ 1,706,384 | |
Electronics – 0.4% | ||||
Broadcom Corp./Broadcom Cayman Finance Ltd., 3.5%, 1/15/2028 | $ | 2,737,000 | $ 3,002,649 | |
Broadcom, Inc., 4.15%, 11/15/2030 | 595,000 | 667,242 | ||
Broadcom, Inc., 4.3%, 11/15/2032 | 1,558,000 | 1,774,134 | ||
Broadcom, Inc., 3.469%, 4/15/2034 (n) | 1,205,000 | 1,274,594 | ||
Intel Corp., 4.75%, 3/25/2050 | 2,141,000 | 2,844,148 | ||
$9,562,767 | ||||
Energy - Independent – 0.0% | ||||
Diamondback Energy, Inc., 4.4%, 3/24/2051 | $ | 360,000 | $ 405,322 | |
Energy - Integrated – 0.2% | ||||
Cenovus Energy, Inc., 5.375%, 7/15/2025 | $ | 912,000 | $ 1,043,358 | |
Eni S.p.A., 4.75%, 9/12/2028 (n) | 1,944,000 | 2,276,281 | ||
Total Capital International S.A., 3.127%, 5/29/2050 | 1,732,000 | 1,755,688 | ||
$5,075,327 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Financial Institutions – 0.3% | ||||
AerCap Ireland Capital DAC, 4.875%, 1/16/2024 | $ | 362,000 | $ 394,088 | |
AerCap Ireland Capital DAC, 3.65%, 7/21/2027 | 2,329,000 | 2,488,030 | ||
Avolon Holdings Funding Ltd., 4.375%, 5/01/2026 (n) | 682,000 | 741,327 | ||
Avolon Holdings Funding Ltd., 3.25%, 2/15/2027 (n) | 1,024,000 | 1,055,756 | ||
Park Aerospace Holdings Ltd., 5.5%, 2/15/2024 (n) | 2,285,000 | 2,511,909 | ||
$7,191,110 | ||||
Food & Beverages – 0.6% | ||||
Anheuser-Busch InBev S.A., 8%, 11/15/2039 | $ | 2,950,000 | $ 4,797,939 | |
Constellation Brands, Inc., 3.5%, 5/09/2027 | 2,322,000 | 2,555,392 | ||
Diageo Capital PLC, 2.375%, 10/24/2029 | 2,618,000 | 2,710,025 | ||
General Mills, Inc., 4%, 4/17/2025 | 2,134,000 | 2,364,530 | ||
General Mills, Inc., 2.875%, 4/15/2030 | 435,000 | 460,802 | ||
Keurig Dr Pepper, Inc., 3.2%, 5/01/2030 | 357,000 | 385,890 | ||
Keurig Dr Pepper, Inc., 3.8%, 5/01/2050 | 732,000 | 824,906 | ||
PepsiCo, Inc., 3.5%, 3/19/2040 | 567,000 | 647,505 | ||
$14,746,989 | ||||
Gaming & Lodging – 0.3% | ||||
GLP Capital LP/GLP Financing II, Inc., 5.3%, 1/15/2029 | $ | 1,593,000 | $ 1,855,845 | |
Las Vegas Sands Corp., 3.9%, 8/08/2029 | 918,000 | 977,314 | ||
Marriott International, Inc., 4%, 4/15/2028 | 1,950,000 | 2,142,988 | ||
Marriott International, Inc., 4.625%, 6/15/2030 | 1,979,000 | 2,279,219 | ||
Marriott International, Inc., 2.85%, 4/15/2031 | 7,000 | 7,108 | ||
$7,262,474 | ||||
Insurance – 0.0% | ||||
AIA Group Ltd., 3.375%, 4/07/2030 (n) | $ | 731,000 | $ 805,290 | |
Insurance - Health – 0.0% | ||||
UnitedHealth Group, Inc., 3.5%, 8/15/2039 | $ | 732,000 | $ 818,076 | |
Insurance - Property & Casualty – 0.5% | ||||
American International Group, Inc., 4.875%, 6/01/2022 | $ | 3,154,000 | $ 3,283,072 | |
American International Group, Inc., 4.125%, 2/15/2024 | 2,315,000 | 2,520,795 | ||
Aon Corp., 3.75%, 5/02/2029 | 4,102,000 | 4,615,836 | ||
Hartford Financial Services Group, Inc., 3.6%, 8/19/2049 | 914,000 | 1,002,143 | ||
Liberty Mutual Group, Inc., 3.951%, 10/15/2050 (n) | 1,087,000 | 1,210,813 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Insurance - Property & Casualty – continued | ||||
Marsh & McLennan Cos., Inc., 4.75%, 3/15/2039 | $ | 832,000 | $ 1,062,367 | |
$13,695,026 | ||||
International Market Quasi-Sovereign – 0.2% | ||||
Temasek Financial I Ltd. (Republic of Singapore), 2.375%, 1/23/2023 (n) | $ | 6,400,000 | $ 6,591,488 | |
Machinery & Tools – 0.1% | ||||
CNH Industrial Capital LLC, 4.2%, 1/15/2024 | $ | 1,679,000 | $ 1,816,817 | |
CNH Industrial Capital LLC, 1.875%, 1/15/2026 | 448,000 | 455,596 | ||
$2,272,413 | ||||
Major Banks – 1.5% | ||||
Bank of America Corp., 3.366% to 1/23/2025, FLR (LIBOR - 3mo. + 0.81%) to 1/23/2026 | $ | 1,626,000 | $ 1,753,145 | |
Bank of America Corp., 3.5%, 4/19/2026 | 1,361,000 | 1,499,358 | ||
Bank of America Corp., 2.676% to 6/19/2040, FLR (SOFR + 1.93%) to 6/19/2041 | 1,986,000 | 1,927,411 | ||
Credit Suisse Group AG, 3.091% to 5/14/2031, FLR (SOFR + 1.73%) to 5/14/2032 (n) | 399,000 | 411,070 | ||
Goldman Sachs Group, Inc., 2.6%, 2/07/2030 | 6,003,000 | 6,229,198 | ||
HSBC Holdings PLC, 4% to 9/09/2026, FLR (CMT - 1yr. + 3.222%) to 9/09/2169 | 442,000 | 449,182 | ||
HSBC Holdings PLC, 4.7% to 9/09/2031, FLR (CMT - 1yr. + 3.25%) to 9/09/2169 | 1,122,000 | 1,164,075 | ||
JPMorgan Chase & Co., 3.782% to 2/01/2027, FLR (LIBOR - 3mo. + 1.337%) to 2/01/2028 | 3,707,000 | 4,116,441 | ||
JPMorgan Chase & Co., 2.739% to 10/15/2029, FLR (SOFR + 1.51%) to 10/15/2030 | 1,052,000 | 1,101,030 | ||
JPMorgan Chase & Co., 2.956% to 5/13/2030, FLR (SOFR + 2.515%) to 5/13/2031 | 558,000 | 586,183 | ||
JPMorgan Chase & Co., 3.109% to 4/22/2040, FLR (SOFR + 2.46%) to 4/22/2041 | 2,876,000 | 2,983,686 | ||
JPMorgan Chase & Co., 3.897% to 1/23/2048, FLR (LIBOR - 3mo. + 1.22%) to 1/23/2049 | 1,100,000 | 1,278,326 | ||
Morgan Stanley, 3.875%, 4/29/2024 | 1,358,000 | 1,476,993 | ||
Morgan Stanley, 4%, 7/23/2025 | 1,063,000 | 1,182,328 | ||
Morgan Stanley, 2.699% to 1/22/2030, FLR (SOFR + 1.143%) to 1/22/2031 | 6,047,000 | 6,330,015 | ||
PNC Bank N.A., 2.7%, 10/22/2029 | 835,000 | 884,155 | ||
Royal Bank of Canada, 1.15%, 6/10/2025 | 2,774,000 | 2,788,816 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Major Banks – continued | ||||
State Street Corp., 2.901% to 3/30/2025, FLR (SOFR + 2.6%) to 3/30/2026 | $ | 404,000 | $ 431,350 | |
UBS Group AG, 2.095% to 2/11/2031, FLR (CMT - 1yr. + 1.0%) to 2/11/2032 (n) | 3,816,000 | 3,738,275 | ||
$40,331,037 | ||||
Medical & Health Technology & Services – 0.6% | ||||
Alcon, Inc., 2.6%, 5/27/2030 (n) | $ | 302,000 | $ 308,409 | |
Alcon, Inc., 3.8%, 9/23/2049 (n) | 1,564,000 | 1,738,000 | ||
Becton, Dickinson and Co., 4.669%, 6/06/2047 | 1,805,000 | 2,248,675 | ||
Cigna Corp., 3.2%, 3/15/2040 | 556,000 | 577,091 | ||
HCA, Inc., 4.125%, 6/15/2029 | 2,120,000 | 2,387,282 | ||
HCA, Inc., 5.125%, 6/15/2039 | 2,264,000 | 2,828,023 | ||
Laboratory Corp. of America Holdings, 4.7%, 2/01/2045 | 1,404,000 | 1,682,971 | ||
Northwell Healthcare, Inc., 3.979%, 11/01/2046 | 153,000 | 173,209 | ||
Northwell Healthcare, Inc., 4.26%, 11/01/2047 | 1,205,000 | 1,420,814 | ||
Thermo Fisher Scientific, Inc., 2.95%, 9/19/2026 | 1,174,000 | 1,265,993 | ||
Thermo Fisher Scientific, Inc., 3.2%, 8/15/2027 | 2,267,000 | 2,475,263 | ||
$17,105,730 | ||||
Medical Equipment – 0.3% | ||||
Boston Scientific Corp., 3.75%, 3/01/2026 | $ | 2,370,000 | $ 2,627,818 | |
Boston Scientific Corp., 2.65%, 6/01/2030 | 1,590,000 | 1,644,552 | ||
Zimmer Biomet Holdings, Inc., 3.55%, 4/01/2025 | 2,600,000 | 2,820,751 | ||
$7,093,121 | ||||
Metals & Mining – 0.3% | ||||
Anglo American Capital PLC, 5.625%, 4/01/2030 (n) | $ | 1,394,000 | $ 1,705,594 | |
Anglo American Capital PLC, 2.625%, 9/10/2030 (n) | 2,667,000 | 2,677,088 | ||
Glencore Funding LLC, 4.125%, 5/30/2023 (n) | 1,244,000 | 1,323,164 | ||
Glencore Funding LLC, 2.5%, 9/01/2030 (n) | 1,695,000 | 1,690,858 | ||
Glencore Funding LLC, 2.85%, 4/27/2031 (n) | 709,000 | 721,007 | ||
$8,117,711 | ||||
Midstream – 0.6% | ||||
Cheniere Corpus Christi Holdings LLC, 3.7%, 11/15/2029 | $ | 1,833,000 | $ 2,002,153 | |
Enbridge, Inc., 2.5%, 1/15/2025 | 969,000 | 1,015,189 | ||
Enterprise Products Operating LLC, 4.2%, 1/31/2050 | 774,000 | 892,733 | ||
Galaxy Pipeline Assets Bidco Ltd., 2.16%, 3/31/2034 (n) | 2,495,000 | 2,448,341 | ||
Kinder Morgan Energy Partners LP, 4.15%, 2/01/2024 | 1,207,000 | 1,303,281 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Midstream – continued | ||||
ONEOK, Inc., 4.95%, 7/13/2047 | $ | 2,331,000 | $ 2,735,640 | |
Plains All American Pipeline LP, 3.8%, 9/15/2030 | 1,881,000 | 2,012,779 | ||
Sabine Pass Liquefaction LLC, 5%, 3/15/2027 | 1,561,000 | 1,802,552 | ||
Sabine Pass Liquefaction LLC, 4.5%, 5/15/2030 | 512,000 | 590,875 | ||
Spectra Energy Partners LP, 3.375%, 10/15/2026 | 828,000 | 900,047 | ||
$15,703,590 | ||||
Mortgage-Backed – 10.7% | ||||
Fannie Mae, 6%, 7/01/2021-7/01/2037 | $ | 3,316,295 | $ 3,834,169 | |
Fannie Mae, 5.5%, 5/01/2022-4/01/2040 | 6,115,773 | 6,977,662 | ||
Fannie Mae, 5%, 12/01/2023-3/01/2041 | 2,453,818 | 2,787,214 | ||
Fannie Mae, 3.5%, 5/25/2025-7/01/2046 | 15,319,478 | 16,515,906 | ||
Fannie Mae, 2.7%, 7/01/2025 | 367,000 | 392,542 | ||
Fannie Mae, 2.563%, 12/25/2026 | 1,473,827 | 1,580,101 | ||
Fannie Mae, 3%, 11/01/2028-9/01/2046 | 5,044,989 | 5,335,680 | ||
Fannie Mae, 6.5%, 6/01/2031-7/01/2037 | 1,041,378 | 1,196,425 | ||
Fannie Mae, 2.5%, 11/01/2031 | 94,365 | 98,877 | ||
Fannie Mae, 3%, 2/25/2033 (i) | 417,062 | 40,701 | ||
Fannie Mae, 4.5%, 8/01/2033-6/01/2044 | 5,870,229 | 6,517,410 | ||
Fannie Mae, 3.25%, 5/25/2040 | 153,167 | 165,550 | ||
Fannie Mae, 4%, 9/01/2040-6/01/2047 | 10,677,055 | 11,651,537 | ||
Fannie Mae, 2%, 10/25/2040-4/25/2046 | 567,634 | 579,329 | ||
Fannie Mae, 4%, 7/25/2046 (i) | 388,087 | 73,090 | ||
Fannie Mae, UMBS, 2.5%, 2/01/2050-7/01/2050 | 3,055,085 | 3,191,145 | ||
Fannie Mae, UMBS, 2%, 1/01/2051-2/01/2051 | 540,243 | 547,196 | ||
Freddie Mac, 6%, 10/01/2021-6/01/2037 | 1,127,097 | 1,311,793 | ||
Freddie Mac, 5%, 12/01/2021-1/15/2040 | 1,375,587 | 1,571,565 | ||
Freddie Mac, 2.791%, 1/25/2022 | 1,383,391 | 1,396,165 | ||
Freddie Mac, 2.51%, 11/25/2022 | 1,503,000 | 1,542,346 | ||
Freddie Mac, 3.111%, 2/25/2023 | 2,136,000 | 2,221,729 | ||
Freddie Mac, 3.32%, 2/25/2023 | 745,000 | 777,298 | ||
Freddie Mac, 3.25%, 4/25/2023 | 2,474,000 | 2,583,552 | ||
Freddie Mac, 3.06%, 7/25/2023 | 175,000 | 183,527 | ||
Freddie Mac, 3.458%, 8/25/2023 | 1,642,000 | 1,737,800 | ||
Freddie Mac, 1.016%, 4/25/2024 (i) | 5,258,067 | 99,762 | ||
Freddie Mac, 0.633%, 7/25/2024 (i) | 14,179,000 | 218,999 | ||
Freddie Mac, 0.732%, 7/25/2024 (i) | 5,035,705 | 69,217 | ||
Freddie Mac, 4.5%, 8/01/2024-5/01/2042 | 1,091,746 | 1,203,124 | ||
Freddie Mac, 0.431%, 8/25/2024 (i) | 15,246,000 | 172,236 | ||
Freddie Mac, 0.526%, 8/25/2024 (i) | 27,436,711 | 286,294 | ||
Freddie Mac, 3.064%, 8/25/2024 | 794,000 | 845,094 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mortgage-Backed – continued | ||||
Freddie Mac, 0.482%, 10/25/2024 (i) | $ | 18,981,488 | $ 188,410 | |
Freddie Mac, 3.171%, 10/25/2024 | 1,304,000 | 1,403,211 | ||
Freddie Mac, 0.401%, 11/25/2024 (i) | 15,385,000 | 148,496 | ||
Freddie Mac, 2.67%, 12/25/2024 | 1,561,000 | 1,657,775 | ||
Freddie Mac, 3.329%, 5/25/2025 | 2,660,000 | 2,895,999 | ||
Freddie Mac, 3.01%, 7/25/2025 | 423,000 | 456,568 | ||
Freddie Mac, 3.151%, 11/25/2025 | 1,001,000 | 1,090,793 | ||
Freddie Mac, 0.773%, 6/25/2027 (i) | 13,682,000 | 520,619 | ||
Freddie Mac, 0.887%, 6/25/2027 (i) | 4,672,706 | 185,679 | ||
Freddie Mac, 3.117%, 6/25/2027 | 1,114,000 | 1,229,349 | ||
Freddie Mac, 0.71%, 7/25/2027 (i) | 12,022,040 | 385,971 | ||
Freddie Mac, 0.46%, 8/25/2027 (i) | 9,650,000 | 209,018 | ||
Freddie Mac, 0.562%, 8/25/2027 (i) | 6,653,727 | 165,187 | ||
Freddie Mac, 0.406%, 9/25/2027 (i) | 10,419,000 | 195,149 | ||
Freddie Mac, 3.187%, 9/25/2027 | 754,000 | 837,795 | ||
Freddie Mac, 0.325%, 11/25/2027 (i) | 16,290,000 | 227,824 | ||
Freddie Mac, 0.417%, 11/25/2027 (i) | 11,605,660 | 198,869 | ||
Freddie Mac, 0.455%, 11/25/2027 (i) | 10,398,341 | 209,035 | ||
Freddie Mac, 0.371%, 12/25/2027 (i) | 10,109,000 | 174,028 | ||
Freddie Mac, 0.413%, 12/25/2027 (i) | 11,210,000 | 221,543 | ||
Freddie Mac, 0.493%, 12/25/2027 (i) | 17,757,084 | 393,016 | ||
Freddie Mac, 3.65%, 2/25/2028 | 904,000 | 1,033,198 | ||
Freddie Mac, 3.9%, 4/25/2028 | 1,667,000 | 1,931,706 | ||
Freddie Mac, 1.218%, 7/25/2029 (i) | 829,541 | 65,384 | ||
Freddie Mac, 1.268%, 8/25/2029 (i) | 5,217,532 | 431,675 | ||
Freddie Mac, 1.915%, 4/25/2030 (i) | 900,000 | 129,690 | ||
Freddie Mac, 1.984%, 4/25/2030 (i) | 2,701,417 | 406,647 | ||
Freddie Mac, 1.765%, 5/25/2030 (i) | 1,301,002 | 175,511 | ||
Freddie Mac, 1.906%, 5/25/2030 (i) | 3,334,078 | 486,181 | ||
Freddie Mac, 1.436%, 6/25/2030 (i) | 1,327,631 | 147,088 | ||
Freddie Mac, 1.704%, 8/25/2030 (i) | 1,191,673 | 158,785 | ||
Freddie Mac, 1.262%, 9/25/2030 (i) | 775,587 | 76,777 | ||
Freddie Mac, 1.172%, 11/25/2030 (i) | 1,356,411 | 125,951 | ||
Freddie Mac, 0.423%, 1/25/2031 (i) | 5,332,445 | 147,467 | ||
Freddie Mac, 0.873%, 1/25/2031 (i) | 2,233,850 | 154,865 | ||
Freddie Mac, 1.026%, 1/25/2031 (i) | 1,493,151 | 121,917 | ||
Freddie Mac, 0.625%, 3/25/2031 (i) | 4,318,725 | 195,517 | ||
Freddie Mac, 0.837%, 3/25/2031 (i) | 1,837,683 | 123,509 | ||
Freddie Mac, 1.224%, 5/25/2031 (i) | 822,353 | 90,528 | ||
Freddie Mac, 0.442%, 11/25/2032 (i) | 8,669,673 | 241,434 | ||
Freddie Mac, 5.5%, 12/01/2033-2/01/2037 | 985,894 | 1,127,367 | ||
Freddie Mac, 6.5%, 5/01/2034-7/01/2037 | 614,611 | 696,898 | ||
Freddie Mac, 5.5%, 2/15/2036 (i) | 82,326 | 15,079 | ||
Freddie Mac, 4%, 8/01/2037-8/01/2047 | 5,366,087 | 5,832,593 | ||
Freddie Mac, 3.5%, 11/01/2037-10/25/2058 | 10,545,720 | 11,367,713 | ||
Freddie Mac, 3%, 1/01/2038-2/25/2059 | 12,403,168 | 13,206,228 | ||
Freddie Mac, 4.5%, 12/15/2040 (i) | 78,042 | 7,359 | ||
Freddie Mac, 4%, 8/15/2044 (i) | 106,255 | 12,457 | ||
Freddie Mac, UMBS, 6.5%, 10/01/2034 | 33,391 | 38,165 | ||
Freddie Mac, UMBS, 5%, 10/01/2035 | 199,119 | 228,084 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mortgage-Backed – continued | ||||
Freddie Mac, UMBS, 6%, 1/01/2036-3/01/2036 | $ | 90,404 | $ 102,135 | |
Freddie Mac, UMBS, 3%, 7/01/2050 | 104,284 | 111,035 | ||
Ginnie Mae, 6%, 9/15/2032-1/15/2038 | 1,336,267 | 1,567,384 | ||
Ginnie Mae, 5.5%, 5/15/2033-10/15/2035 | 811,331 | 940,845 | ||
Ginnie Mae, 4.5%, 7/20/2033-9/20/2041 | 1,951,987 | 2,203,573 | ||
Ginnie Mae, 5%, 7/20/2033-12/15/2034 | 266,755 | 308,198 | ||
Ginnie Mae, 4%, 1/20/2041-2/20/2042 | 2,123,262 | 2,323,576 | ||
Ginnie Mae, 3.5%, 12/15/2041-3/20/2048 | 5,549,567 | 5,958,458 | ||
Ginnie Mae, 3%, 4/20/2045-6/20/2051 | 10,447,748 | 10,988,378 | ||
Ginnie Mae, 2.5%, 6/20/2051-7/20/2051 | 6,775,000 | 7,025,044 | ||
Ginnie Mae, 0.56%, 2/16/2059 (i) | 3,425,789 | 148,424 | ||
Ginnie Mae, TBA, 2.5%, 7/15/2051 | 6,000,000 | 6,209,063 | ||
Ginnie Mae, TBA, 3.5%, 7/15/2051 | 4,300,000 | 4,513,908 | ||
Ginnie Mae, TBA, 4%, 7/15/2051 | 1,425,000 | 1,504,767 | ||
Ginnie Mae, TBA, 2%, 7/21/2051 | 1,875,000 | 1,909,570 | ||
Ginnie Mae, TBA, 3%, 7/21/2051 | 2,825,000 | 2,947,545 | ||
UMBS, TBA, 3%, 7/19/2036-8/12/2051 | 14,375,000 | 14,985,050 | ||
UMBS, TBA, 1.5%, 7/25/2036-8/17/2036 | 4,975,000 | 5,030,868 | ||
UMBS, TBA, 2%, 7/25/2036-8/12/2051 | 50,650,000 | 51,169,361 | ||
UMBS, TBA, 2.5%, 7/25/2036-8/25/2051 | 33,450,000 | 34,643,761 | ||
UMBS, TBA, 4%, 7/25/2051 | 975,000 | 1,038,223 | ||
$285,104,308 | ||||
Municipals – 0.4% | ||||
New Jersey Economic Development Authority State Pension Funding Rev., “A”, NPFG, 7.425%, 2/15/2029 | $ | 2,750,000 | $ 3,566,316 | |
New Jersey Turnpike Authority Rev. (Build America Bonds), “F”, 7.414%, 1/01/2040 | 3,685,000 | 6,050,596 | ||
State of Florida, “A”, 2.154%, 7/01/2030 | 1,437,000 | 1,465,055 | ||
$11,081,967 | ||||
Natural Gas - Distribution – 0.0% | ||||
NiSource, Inc., 5.65%, 2/01/2045 | $ | 486,000 | $ 669,853 | |
Natural Gas - Pipeline – 0.1% | ||||
APT Pipelines Ltd., 4.2%, 3/23/2025 (n) | $ | 3,344,000 | $ 3,667,122 | |
APT Pipelines Ltd., 4.25%, 7/15/2027 (n) | 253,000 | 285,716 | ||
$3,952,838 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Network & Telecom – 0.4% | ||||
AT&T, Inc., 2.75%, 6/01/2031 | $ | 2,106,000 | $ 2,189,163 | |
AT&T, Inc., 3.65%, 9/15/2059 (n) | 1,786,000 | 1,811,180 | ||
Verizon Communications, Inc., 2.1%, 3/22/2028 | 273,000 | 278,710 | ||
Verizon Communications, Inc., 3.15%, 3/22/2030 | 1,053,000 | 1,136,999 | ||
Verizon Communications, Inc., 2.55%, 3/21/2031 | 512,000 | 523,328 | ||
Verizon Communications, Inc., 4.272%, 1/15/2036 | 1,477,000 | 1,757,372 | ||
Verizon Communications, Inc., 4.812%, 3/15/2039 | 1,877,000 | 2,377,554 | ||
$10,074,306 | ||||
Oils – 0.3% | ||||
Marathon Petroleum Corp., 4.75%, 9/15/2044 | $ | 1,114,000 | $ 1,316,231 | |
Phillips 66 Co., 2.15%, 12/15/2030 | 3,438,000 | 3,379,778 | ||
Valero Energy Corp., 4.9%, 3/15/2045 | 516,000 | 644,795 | ||
Valero Energy, Corp., 6.625%, 6/15/2037 | 2,124,000 | 2,911,757 | ||
$8,252,561 | ||||
Other Banks & Diversified Financials – 0.4% | ||||
BBVA Bancomer S.A. de C.V., 6.75%, 9/30/2022 (n) | $ | 2,890,000 | $ 3,068,602 | |
Branch Banking & Trust Co., 2.25%, 3/11/2030 | 2,707,000 | 2,746,286 | ||
Capital One Financial Corp., 3.75%, 3/09/2027 | 1,728,000 | 1,919,931 | ||
Citigroup, Inc., 2.666% to 1/29/2030, FLR (SOFR + 1.146%) to 1/29/2031 | 2,869,000 | 2,960,897 | ||
$10,695,716 | ||||
Pollution Control – 0.1% | ||||
Republic Services, Inc., 3.95%, 5/15/2028 | $ | 1,245,000 | $ 1,416,298 | |
Republic Services, Inc., 1.45%, 2/15/2031 | 998,000 | 934,982 | ||
$2,351,280 | ||||
Real Estate - Office – 0.0% | ||||
Boston Properties, Inc., REIT, 2.55%, 4/01/2032 | $ | 1,316,000 | $ 1,324,157 | |
Real Estate - Other – 0.0% | ||||
Prologis LP, REIT, 2.25%, 4/15/2030 | $ | 717,000 | $ 732,344 | |
Real Estate - Retail – 0.1% | ||||
Brixmor Operating Partnership LP, REIT, 4.125%, 5/15/2029 | $ | 172,000 | $ 192,697 | |
Brixmor Operating Partnership LP, REIT, 4.05%, 7/01/2030 | 1,681,000 | 1,880,800 | ||
Realty Income Corp., REIT, 3.25%, 1/15/2031 | 569,000 | 619,891 | ||
$2,693,388 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Retailers – 0.3% | ||||
Alimentation Couche-Tard, Inc., 3.439%, 5/13/2041 (n) | $ | 2,106,000 | $ 2,174,369 | |
Amazon.com, Inc., 2.5%, 6/03/2050 | 1,592,000 | 1,504,284 | ||
Best Buy Co., Inc., 4.45%, 10/01/2028 | 2,037,000 | 2,366,544 | ||
Home Depot, Inc., 3.9%, 6/15/2047 | 1,113,000 | 1,321,101 | ||
$7,366,298 | ||||
Specialty Stores – 0.0% | ||||
TJX Cos., Inc., 3.875%, 4/15/2030 | $ | 453,000 | $ 519,258 | |
Telecommunications - Wireless – 0.6% | ||||
American Tower Corp., REIT, 3%, 6/15/2023 | $ | 938,000 | $ 983,022 | |
American Tower Corp., REIT, 3.6%, 1/15/2028 | 1,138,000 | 1,251,675 | ||
American Tower Corp., REIT, 3.1%, 6/15/2050 | 1,568,000 | 1,531,909 | ||
American Tower Trust I, REIT, 3.07%, 3/15/2048 (n) | 3,121,000 | 3,136,182 | ||
Crown Castle International Corp., 1.35%, 7/15/2025 | 701,000 | 705,771 | ||
Crown Castle International Corp., 3.65%, 9/01/2027 | 2,565,000 | 2,828,152 | ||
T-Mobile USA, Inc., 2.05%, 2/15/2028 | 1,892,000 | 1,920,702 | ||
T-Mobile USA, Inc., 4.5%, 4/15/2050 | 2,244,000 | 2,672,005 | ||
$15,029,418 | ||||
Telephone Services – 0.1% | ||||
Deutsche Telekom AG, 3.625%, 1/21/2050 (n) | $ | 1,281,000 | $ 1,352,318 | |
Transportation - Services – 0.1% | ||||
ERAC USA Finance LLC, 7%, 10/15/2037 (n) | $ | 1,826,000 | $ 2,724,154 | |
U.S. Government Agencies and Equivalents – 0.0% | ||||
Small Business Administration, 4.35%, 7/01/2023 | $ | 873 | $ 897 | |
Small Business Administration, 4.77%, 4/01/2024 | 56,280 | 58,526 | ||
Small Business Administration, 5.18%, 5/01/2024 | 74,900 | 78,910 | ||
Small Business Administration, 5.52%, 6/01/2024 | 4,638 | 4,869 | ||
Small Business Administration, 4.99%, 9/01/2024 | 105,202 | 109,732 | ||
Small Business Administration, 4.95%, 3/01/2025 | 3,809 | 3,980 | ||
Small Business Administration, 5.11%, 8/01/2025 | 359,708 | 380,835 | ||
$637,749 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Treasury Obligations – 10.1% | ||||
U.S. Treasury Bonds, 1.375%, 11/15/2040 | $ | 5,500,000 | $ 4,940,547 | |
U.S. Treasury Bonds, 2.875%, 5/15/2043 | 9,096,000 | 10,461,111 | ||
U.S. Treasury Bonds, 2.5%, 2/15/2045 | �� | 9,797,000 | 10,599,895 | |
U.S. Treasury Bonds, 3%, 11/15/2045 | 3,638,000 | 4,301,224 | ||
U.S. Treasury Bonds, 3%, 2/15/2048 | 8,760,000 | 10,442,194 | ||
U.S. Treasury Bonds, 2.875%, 5/15/2049 | 900,000 | 1,053,879 | ||
U.S. Treasury Bonds, 2.375%, 11/15/2049 | 30,365,000 | 32,333,980 | ||
U.S. Treasury Notes, 0.125%, 12/31/2022 | 48,500,000 | 48,458,320 | ||
U.S. Treasury Notes, 1.375%, 1/31/2025 | 70,000,000 | 71,922,266 | ||
U.S. Treasury Notes, 0.375%, 11/30/2025 | 76,500,000 | 75,122,402 | ||
$269,635,818 | ||||
Utilities - Electric Power – 0.8% | ||||
Berkshire Hathaway Energy Co., 4.25%, 10/15/2050 | $ | 257,000 | $ 312,839 | |
Duke Energy Corp., 2.65%, 9/01/2026 | 345,000 | 364,063 | ||
Enel Finance International N.V., 2.65%, 9/10/2024 | 1,020,000 | 1,072,167 | ||
Enel Finance International N.V., 4.875%, 6/14/2029 (n) | 1,916,000 | 2,286,583 | ||
Enel Finance International N.V., 4.75%, 5/25/2047 (n) | 392,000 | 481,279 | ||
Evergy, Inc., 2.9%, 9/15/2029 | 1,644,000 | 1,742,174 | ||
Exelon Corp., 4.05%, 4/15/2030 | 1,913,000 | 2,178,786 | ||
FirstEnergy Corp., 3.4%, 3/01/2050 | 1,078,000 | 1,053,745 | ||
Georgia Power Co., 3.7%, 1/30/2050 | 147,000 | 159,642 | ||
Jersey Central Power & Light Co., 4.3%, 1/15/2026 (n) | 1,333,000 | 1,475,318 | ||
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n) | 738,000 | 749,137 | ||
Northern States Power Co., 2.6%, 6/01/2051 | 1,912,000 | 1,816,036 | ||
Oncor Electric Delivery Co. LLC, 5.75%, 3/15/2029 | 2,486,000 | 3,123,778 | ||
Pacific Gas & Electric Co., 2.1%, 8/01/2027 | 480,000 | 466,168 | ||
Pacific Gas & Electric Co., 3%, 6/15/2028 | 1,410,000 | 1,416,342 | ||
Pacific Gas & Electric Co., 3.3%, 8/01/2040 | 926,000 | 836,246 | ||
Xcel Energy, Inc., 3.4%, 6/01/2030 | 968,000 | 1,061,059 | ||
Xcel Energy, Inc., 3.5%, 12/01/2049 | 1,154,000 | 1,245,355 | ||
$21,840,717 | ||||
Utilities - Gas – 0.0% | ||||
East Ohio Gas Co., 2%, 6/15/2030 (n) | $ | 1,330,000 | $ 1,314,851 | |
Total Bonds (Identified Cost, $1,008,378,934) | $ 1,051,495,908 |
Issuer | Shares/Par | Value ($) | ||
Convertible Preferred Stocks – 1.2% | ||||
Automotive – 0.3% | ||||
Aptiv PLC, 5.5% | 39,000 | $ 6,973,980 | ||
Medical Equipment – 0.4% | ||||
Boston Scientific Corp., 5.5% | 66,836 | $ 7,756,986 | ||
Danaher Corp., 4.75% | 1,324 | 2,381,360 | ||
$10,138,346 | ||||
Telecommunications - Wireless – 0.2% | ||||
T-Mobile USA, Inc., 5.25% | 5,432 | $ 6,844,157 | ||
Utilities - Electric Power – 0.3% | ||||
CenterPoint Energy, Inc., 7% | 162,120 | $ 7,347,278 | ||
Total Convertible Preferred Stocks (Identified Cost, $25,680,393) | $ 31,303,761 |
Issuer | Shares/Par | Value ($) | ||
Preferred Stocks – 0.3% | ||||
Computer Software - Systems – 0.3% | ||||
Samsung Electronics Co. Ltd. (Identified Cost, $4,011,179) | 108,944 | $ 7,129,754 | ||
Investment Companies (h) – 5.6% | ||||
Money Market Funds – 5.6% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $150,704,645) | 150,704,645 | $ 150,704,645 | ||
Other Assets, Less Liabilities – (4.2)% | (111,578,507) | |||
Net Assets – 100.0% | $ 2,675,191,305 |
(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 $150,704,645 and $2,636,065,167, 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 $175,582,058, representing 6.6% of net assets. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
CLO | Collateralized Loan Obligation |
CMT | Constant Maturity Treasury |
FGIC | Financial Guaranty Insurance Co. |
FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
LIBOR | London Interbank Offered Rate |
NPFG | National Public Finance Guarantee Corp. |
REIT | Real Estate Investment Trust |
SOFR | Secured Overnight Financing Rate |
TBA | To Be Announced |
UMBS | Uniform Mortgage-Backed Security |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $1,870,072,326) | $2,636,065,167 |
Investments in affiliated issuers, at value (identified cost, $150,704,645) | 150,704,645 |
Cash | 3,933,263 |
Receivables for | |
Investments sold | 3,610,850 |
TBA sale commitments | 17,391,129 |
Fund shares sold | 2,597,478 |
Interest and dividends | 7,127,781 |
Receivable from investment adviser | 93,823 |
Other assets | 6,591 |
Total assets | $2,821,530,727 |
Liabilities | |
Payables for | |
Investments purchased | $3,660,417 |
TBA purchase commitments | 141,406,768 |
Fund shares reacquired | 951,057 |
Payable to affiliates | |
Administrative services fee | 1,962 |
Shareholder servicing costs | 799 |
Distribution and/or service fees | 19,090 |
Accrued expenses and other liabilities | 299,329 |
Total liabilities | $146,339,422 |
Net assets | $2,675,191,305 |
Net assets consist of | |
Paid-in capital | $1,595,466,078 |
Total distributable earnings (loss) | 1,079,725,227 |
Net assets | $2,675,191,305 |
Shares of beneficial interest outstanding | 95,099,608 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $1,277,811,427 | 44,914,835 | $28.45 |
Service Class | 1,397,379,878 | 50,184,773 | 27.84 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $16,760,360 |
Interest | 11,249,659 |
Dividends from affiliated issuers | 35,008 |
Other | 16,652 |
Income on securities loaned | 9,564 |
Foreign taxes withheld | (248,503) |
Total investment income | $27,822,740 |
Expenses | |
Management fee | $8,635,022 |
Distribution and/or service fees | 1,689,974 |
Shareholder servicing costs | 36,276 |
Administrative services fee | 171,755 |
Independent Trustees' compensation | 18,798 |
Custodian fee | 64,527 |
Shareholder communications | 80,511 |
Audit and tax fees | 39,217 |
Legal fees | 9,776 |
Miscellaneous | 36,940 |
Total expenses | $10,782,796 |
Reduction of expenses by investment adviser | (1,152,418) |
Net expenses | $9,630,378 |
Net investment income (loss) | $18,192,362 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $132,184,900 |
Foreign currency | (6,431) |
Net realized gain (loss) | $132,178,469 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $81,038,930 |
Translation of assets and liabilities in foreign currencies | (23,045) |
Net unrealized gain (loss) | $81,015,885 |
Net realized and unrealized gain (loss) | $213,194,354 |
Change in net assets from operations | $231,386,716 |
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) | $18,192,362 | $43,611,772 |
Net realized gain (loss) | 132,178,469 | 132,672,899 |
Net unrealized gain (loss) | 81,015,885 | 42,984,940 |
Change in net assets from operations | $231,386,716 | $219,269,611 |
Total distributions to shareholders | $— | $(115,929,697) |
Change in net assets from fund share transactions | $(94,953,954) | $(111,560,917) |
Total change in net assets | $136,432,762 | $(8,221,003) |
Net assets | ||
At beginning of period | 2,538,758,543 | 2,546,979,546 |
At end of period | $2,675,191,305 | $2,538,758,543 |
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 | $26.02 | $24.90 | $21.78 | $24.70 | $23.18 | $22.60 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.21 | $0.47 | $0.52 | $0.53 | $0.49 | $0.54(c) |
Net realized and unrealized gain (loss) | 2.22 | 1.88 | 3.83 | (1.80) | 2.29 | 1.51 |
Total from investment operations | $2.43 | $2.35 | $4.35 | $(1.27) | $2.78 | $2.05 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.57) | $(0.58) | $(0.54) | $(0.58) | $(0.69) |
From net realized gain | — | (0.66) | (0.65) | (1.11) | (0.68) | (0.78) |
Total distributions declared to shareholders | $— | $(1.23) | $(1.23) | $(1.65) | $(1.26) | $(1.47) |
Net asset value, end of period (x) | $28.45 | $26.02 | $24.90 | $21.78 | $24.70 | $23.18 |
Total return (%) (k)(r)(s)(x) | 9.34(n) | 9.81 | 20.38 | (5.61) | 12.30 | 9.09(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.70(a) | 0.71 | 0.70 | 0.70 | 0.71 | 0.71(c) |
Expenses after expense reductions (f) | 0.61(a) | 0.61 | 0.62 | 0.62 | 0.63 | 0.62(c) |
Net investment income (loss) | 1.53(a) | 1.95 | 2.18 | 2.20 | 2.04 | 2.33(c) |
Portfolio turnover | 57(n) | 84 | 42 | 26 | 34 | 35 |
Net assets at end of period (000 omitted) | $1,277,811 | $1,219,438 | $1,223,166 | $1,134,301 | $1,350,737 | $1,359,943 |
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 | $25.50 | $24.43 | $21.38 | $24.28 | $22.81 | $22.26 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.17 | $0.40 | $0.45 | $0.46 | $0.43 | $0.47(c) |
Net realized and unrealized gain (loss) | 2.17 | 1.83 | 3.76 | (1.77) | 2.25 | 1.49 |
Total from investment operations | $2.34 | $2.23 | $4.21 | $(1.31) | $2.68 | $1.96 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.50) | $(0.51) | $(0.48) | $(0.53) | $(0.63) |
From net realized gain | — | (0.66) | (0.65) | (1.11) | (0.68) | (0.78) |
Total distributions declared to shareholders | $— | $(1.16) | $(1.16) | $(1.59) | $(1.21) | $(1.41) |
Net asset value, end of period (x) | $27.84 | $25.50 | $24.43 | $21.38 | $24.28 | $22.81 |
Total return (%) (k)(r)(s)(x) | 9.18(n) | 9.52 | 20.12 | (5.87) | 12.02 | 8.81(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.95(a) | 0.96 | 0.95 | 0.95 | 0.96 | 0.96(c) |
Expenses after expense reductions (f) | 0.86(a) | 0.86 | 0.87 | 0.87 | 0.88 | 0.87(c) |
Net investment income (loss) | 1.28(a) | 1.71 | 1.93 | 1.95 | 1.79 | 2.08(c) |
Portfolio turnover | 57(n) | 84 | 42 | 26 | 34 | 35 |
Net assets at end of period (000 omitted) | $1,397,380 | $1,319,320 | $1,323,813 | $1,191,222 | $1,427,824 | $1,276,603 |
(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 | $1,497,537,497 | $6,844,157 | $— | $1,504,381,654 |
Switzerland | 26,066,709 | — | — | 26,066,709 |
Taiwan | 14,291,590 | — | — | 14,291,590 |
United Kingdom | 14,073,593 | — | — | 14,073,593 |
France | 8,294,713 | — | — | 8,294,713 |
South Korea | 7,129,754 | — | — | 7,129,754 |
Ireland | 6,137,220 | — | — | 6,137,220 |
Germany | 4,194,026 | — | — | 4,194,026 |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | — | 270,273,567 | — | 270,273,567 |
Non - U.S. Sovereign Debt | — | 6,591,488 | — | 6,591,488 |
Municipal Bonds | — | 11,081,967 | — | 11,081,967 |
U.S. Corporate Bonds | — | 260,209,756 | — | 260,209,756 |
Residential Mortgage-Backed Securities | — | 285,388,076 | — | 285,388,076 |
Commercial Mortgage-Backed Securities | — | 69,852,584 | — | 69,852,584 |
Asset-Backed Securities (including CDOs) | — | 72,159,947 | — | 72,159,947 |
Foreign Bonds | — | 75,938,523 | — | 75,938,523 |
Mutual Funds | 150,704,645 | — | — | 150,704,645 |
Total | $1,728,429,747 | $1,058,340,065 | $— | $2,786,769,812 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $52,307,667 |
Long-term capital gains | 63,622,030 |
Total distributions | $115,929,697 |
As of 6/30/21 | |
Cost of investments | $2,036,035,903 |
Gross appreciation | 761,650,467 |
Gross depreciation | (10,916,558) |
Net unrealized appreciation (depreciation) | $750,733,909 |
As of 12/31/20 | |
Undistributed ordinary income | 54,306,299 |
Undistributed long-term capital gain | 118,976,833 |
Other temporary differences | 3,767,505 |
Net unrealized appreciation (depreciation) | 671,287,874 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $56,532,062 | |
Service Class | — | 59,397,635 | |
Total | $— | $115,929,697 |
Up to $1 billion | 0.70% |
In excess of $1 billion and up to $2.5 billion | 0.65% |
In excess of $2.5 billion and up to $5 billion | 0.55% |
In excess of $5 billion | 0.50% |
Purchases | Sales | |
U.S. Government securities | $1,213,021,901 | $1,115,200,222 |
Non-U.S. Government securities | 245,570,284 | 431,867,380 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 705,060 | $19,174,324 | 1,626,873 | $38,823,750 | |
Service Class | 1,794,028 | 48,262,975 | 2,911,465 | 68,599,977 | |
2,499,088 | $67,437,299 | 4,538,338 | $107,423,727 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 2,349,629 | $56,532,062 | |
Service Class | — | — | 2,516,849 | 59,397,635 | |
— | $— | 4,866,478 | $115,929,697 | ||
Shares reacquired | |||||
Initial Class | (2,654,405) | $(72,771,877) | (6,227,705) | $(149,473,288) | |
Service Class | (3,349,288) | (89,619,376) | (7,882,515) | (185,441,053) | |
(6,003,693) | $(162,391,253) | (14,110,220) | $(334,914,341) | ||
Net change | |||||
Initial Class | (1,949,345) | $(53,597,553) | (2,251,203) | $(54,117,476) | |
Service Class | (1,555,260) | (41,356,401) | (2,454,201) | (57,443,441) | |
(3,504,605) | $(94,953,954) | (4,705,404) | $(111,560,917) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $118,744,977 | $427,791,590 | $395,831,922 | $— | $— | $150,704,645 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $35,008 | $— |
1 | |
2 | |
3 | |
4 | |
6 | |
7 | |
8 | |
9 | |
11 | |
19 | |
20 | |
20 | |
20 | |
20 |
NextEra Energy, Inc. | 8.0% |
EDP Renovaveis S.A. | 5.7% |
Southern Co. | 5.2% |
Duke Energy Corp. | 5.0% |
Exelon Corp. | 4.9% |
Dominion Energy, Inc. | 4.8% |
Sempra Energy | 3.2% |
Enel S.p.A. | 3.2% |
Edison International | 2.9% |
PG&E Corp. | 2.9% |
Utilities-Electric Power | 81.8% |
Telecommunications-Wireless | 7.1% |
Natural Gas-Distribution | 3.6% |
Cable TV | 2.7% |
Telephone Services | 2.2% |
United States | 69.1% |
Portugal | 7.4% |
Spain | 5.4% |
United Kingdom | 4.5% |
Italy | 3.2% |
Germany | 3.0% |
Canada | 2.3% |
Thailand | 0.7% |
Brazil | 0.7% |
Other Countries | 3.7% |
(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. |
(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. |
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 | 0.78% | $1,000.00 | $1,030.29 | $3.93 |
Hypothetical (h) | 0.78% | $1,000.00 | $1,020.93 | $3.91 | |
Service Class | Actual | 1.03% | $1,000.00 | $1,029.12 | $5.18 |
Hypothetical (h) | 1.03% | $1,000.00 | $1,019.69 | $5.16 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 96.3% | ||||
Cable TV – 2.7% | ||||
Charter Communications, Inc., “A” (a) | 39,504 | $ 28,500,161 | ||
NOS, SGPS S.A. | 1,174,159 | 4,115,518 | ||
$32,615,679 | ||||
Natural Gas - Distribution – 3.1% | ||||
Atmos Energy Corp. | 238,373 | $ 22,910,029 | ||
China Resources Gas Group Ltd. | 1,178,000 | 7,070,155 | ||
UGI Corp. | 162,556 | 7,527,968 | ||
$37,508,152 | ||||
Natural Gas - Pipeline – 1.6% | ||||
DT Midstream LLC (a) | 121,993 | $ 4,716,250 | ||
Enterprise Products Partners LP | 372,985 | 9,000,128 | ||
Equitrans Midstream Corp. | 608,877 | 5,181,543 | ||
Plains All American Pipeline LP | 30,820 | 350,115 | ||
$19,248,036 | ||||
Telecommunications - Wireless – 7.1% | ||||
Advanced Info Service Public Co. Ltd. | 1,649,500 | $ 8,800,764 | ||
Cellnex Telecom S.A. | 541,254 | 34,477,066 | ||
KDDI Corp. | 226,700 | 7,070,665 | ||
Mobile TeleSystems PJSC, ADR | 201,097 | 1,862,158 | ||
SBA Communications Corp., REIT | 62,355 | 19,872,539 | ||
T-Mobile USA, Inc. (a) | 97,685 | 14,147,719 | ||
$86,230,911 | ||||
Telephone Services – 2.1% | ||||
Hellenic Telecommunications Organization S.A. | 472,528 | $ 7,928,247 | ||
Rogers Communications, Inc., “B” | 247,362 | 13,150,335 | ||
Telesites S.A.B. de C.V. (a) | 5,689,300 | 5,262,902 | ||
$26,341,484 | ||||
Utilities - Electric Power – 79.7% | ||||
AES Corp. | 1,006,141 | $ 26,230,096 | ||
ALLETE, Inc. | 93,463 | 6,540,541 | ||
Alliant Energy Corp. | 457,667 | 25,519,512 | ||
American Electric Power Co., Inc. | 236,477 | 20,003,589 | ||
CenterPoint Energy, Inc. | 635,691 | 15,587,143 | ||
CLP Holdings Ltd. | 795,000 | 7,863,684 | ||
Dominion Energy, Inc. | 790,797 | 58,178,935 | ||
DTE Energy Co. (a) | 243,986 | 27,106,845 | ||
Duke Energy Corp. | 614,317 | 60,645,374 | ||
E.ON SE | 1,448,305 | 16,750,816 | ||
Edison International | 603,888 | 34,916,804 | ||
EDP Renovaveis S.A. | 2,981,666 | 69,083,882 | ||
Electricite de France S.A. | 513,208 | 7,010,340 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Utilities - Electric Power – continued | ||||
Emera, Inc. | 330,222 | $ 14,981,998 | ||
Enel S.p.A. | 4,146,654 | 38,509,126 | ||
Energias de Portugal S.A. | 3,185,812 | 16,885,769 | ||
Entergy Corp. | 86,898 | 8,663,731 | ||
Equatorial Energia S.A. | 1,133,900 | 5,653,770 | ||
Evergy, Inc. | 389,340 | 23,527,816 | ||
Exelon Corp. | 1,340,724 | 59,407,483 | ||
FirstEnergy Corp. | 717,511 | 26,698,584 | ||
Iberdrola S.A. | 2,503,418 | 30,515,442 | ||
National Grid PLC | 1,865,475 | 23,761,350 | ||
Neoenergia S.A. | 899,100 | 3,139,927 | ||
NextEra Energy Partners LP | 57,051 | 4,356,414 | ||
NextEra Energy, Inc. | 1,321,119 | 96,811,601 | ||
PG&E Corp. (a) | 3,428,206 | 34,864,855 | ||
Pinnacle West Capital Corp. | 158,310 | 12,976,671 | ||
Portland General Electric Co. | 128,597 | 5,925,750 | ||
Public Service Enterprise Group, Inc. | 362,117 | 21,632,870 | ||
RWE AG | 544,434 | 19,728,396 | ||
Sempra Energy | 293,977 | 38,946,073 | ||
Southern Co. | 1,049,095 | 63,480,738 | ||
SSE PLC | 1,469,511 | 30,501,782 | ||
Vistra Corp. | 511,227 | 9,483,261 | ||
$965,890,968 | ||||
Total Common Stocks (Identified Cost, $858,683,548) | $1,167,835,230 | |||
Convertible Preferred Stocks – 2.7% | ||||
Utilities - Electric Power – 2.7% | ||||
CenterPoint Energy, Inc., 7% | 431,280 | $ 19,545,610 | ||
DTE Energy Co., 6.25% | 64,750 | 3,200,593 | ||
NextEra Energy, Inc., 5.279% | 64,600 | 3,162,816 | ||
Sempra Energy, 6.75% | 64,868 | 6,407,012 | ||
Total Convertible Preferred Stocks (Identified Cost, $29,027,293) | $ 32,316,031 | |||
Investment Companies (h) – 0.6% | ||||
Money Market Funds – 0.6% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $6,853,786) | 6,853,786 | $ 6,853,786 | ||
Other Assets, Less Liabilities – 0.4% | 4,908,483 | |||
Net Assets – 100.0% | $1,211,913,530 |
(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 $6,853,786 and $1,200,151,261, respectively. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below: | |
CAD | Canadian Dollar |
EUR | Euro |
GBP | British Pound |
Derivative Contracts at 6/30/21 | ||||||
Forward Foreign Currency Exchange Contracts | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives | ||||||
USD | 95,404 | CAD | 115,184 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | $ 2,485 |
USD | 71,481,800 | EUR | 58,647,884 | Barclays Bank PLC | 8/12/2021 | 1,881,876 |
USD | 1,475,555 | EUR | 1,237,003 | BNP Paribas S.A. | 7/16/2021 | 8,347 |
USD | 819,120 | EUR | 669,394 | Brown Brothers Harriman | 7/16/2021 | 25,153 |
USD | 3,332,602 | EUR | 2,766,344 | Citibank N.A. | 7/16/2021 | 51,444 |
USD | 6,235,856 | EUR | 5,227,125 | Merrill Lynch International | 7/16/2021 | 35,966 |
USD | 95,335,754 | EUR | 79,799,040 | State Street Bank Corp. | 7/16/2021 | 686,172 |
USD | 112,787 | GBP | 79,609 | State Street Bank Corp. | 7/16/2021 | 2,660 |
$2,694,103 | ||||||
Liability Derivatives | ||||||
CAD | 499,067 | USD | 413,667 | BNP Paribas S.A. | 7/16/2021 | $ (11,068) |
CAD | 518,076 | USD | 427,897 | Brown Brothers Harriman | 7/16/2021 | (9,963) |
CAD | 205,670 | USD | 167,464 | Merrill Lynch International | 7/16/2021 | (1,550) |
CAD | 1,238,993 | USD | 1,014,869 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | (15,369) |
EUR | 227,712 | USD | 276,030 | Brown Brothers Harriman | 7/16/2021 | (5,941) |
EUR | 62,174 | USD | 74,576 | Citibank N.A. | 7/16/2021 | (831) |
EUR | 14,834,090 | USD | 17,695,635 | HSBC Bank | 7/16/2021 | (100,932) |
EUR | 35,130 | USD | 43,004 | Merrill Lynch International | 7/16/2021 | (1,336) |
USD | 221,573 | CAD | 277,635 | Brown Brothers Harriman | 7/16/2021 | (2,397) |
USD | 18,736,046 | CAD | 23,614,744 | JPMorgan Chase Bank N.A. | 7/16/2021 | (314,051) |
USD | 31,953,801 | GBP | 23,260,934 | Goldman Sachs International | 7/16/2021 | (224,425) |
USD | 398,076 | GBP | 288,520 | Morgan Stanley Capital Services, Inc. | 7/16/2021 | (1,051) |
USD | 2,614,057 | GBP | 1,901,000 | State Street Bank Corp. | 7/16/2021 | (15,708) |
$ (704,622) |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $887,710,841) | $1,200,151,261 |
Investments in affiliated issuers, at value (identified cost, $6,853,786) | 6,853,786 |
Restricted cash for | |
Forward foreign currency exchange contracts | 850,000 |
Receivables for | |
Forward foreign currency exchange contracts | 2,694,103 |
Investments sold | 610,331 |
Fund shares sold | 16,035 |
Interest and dividends | 2,945,099 |
Other assets | 7,783 |
Total assets | $1,214,128,398 |
Liabilities | |
Payables for | |
Forward foreign currency exchange contracts | $704,622 |
Fund shares reacquired | 1,216,985 |
Payable to affiliates | |
Investment adviser | 48,798 |
Administrative services fee | 932 |
Shareholder servicing costs | 769 |
Distribution and/or service fees | 9,317 |
Accrued expenses and other liabilities | 233,445 |
Total liabilities | $2,214,868 |
Net assets | $1,211,913,530 |
Net assets consist of | |
Paid-in capital | $801,754,151 |
Total distributable earnings (loss) | 410,159,379 |
Net assets | $1,211,913,530 |
Shares of beneficial interest outstanding | 33,655,498 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $538,205,526 | 14,783,964 | $36.40 |
Service Class | 673,708,004 | 18,871,534 | 35.70 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $20,371,308 |
Other | 47,147 |
Income on securities loaned | 13,382 |
Dividends from affiliated issuers | 3,140 |
Foreign taxes withheld | (717,927) |
Total investment income | $19,717,050 |
Expenses | |
Management fee | $4,470,441 |
Distribution and/or service fees | 839,543 |
Shareholder servicing costs | 27,442 |
Administrative services fee | 82,656 |
Independent Trustees' compensation | 9,439 |
Custodian fee | 76,160 |
Shareholder communications | 58,855 |
Audit and tax fees | 32,230 |
Legal fees | 4,417 |
Miscellaneous | 17,923 |
Total expenses | $5,619,106 |
Reduction of expenses by investment adviser | (72,192) |
Net expenses | $5,546,914 |
Net investment income (loss) | $14,170,136 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $14,458,841 |
Forward foreign currency exchange contracts | (2,463,154) |
Foreign currency | 11,954 |
Net realized gain (loss) | $12,007,641 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers (net of $11,101 decrease in deferred country tax) | $2,853,688 |
Forward foreign currency exchange contracts | 6,742,188 |
Translation of assets and liabilities in foreign currencies | (43,287) |
Net unrealized gain (loss) | $9,552,589 |
Net realized and unrealized gain (loss) | $21,560,230 |
Change in net assets from operations | $35,730,366 |
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) | $14,170,136 | $28,889,068 |
Net realized gain (loss) | 12,007,641 | 30,463,188 |
Net unrealized gain (loss) | 9,552,589 | (549,017) |
Change in net assets from operations | $35,730,366 | $58,803,239 |
Total distributions to shareholders | $— | $(56,937,274) |
Change in net assets from fund share transactions | $(40,686,181) | $(75,290,012) |
Total change in net assets | $(4,955,815) | $(73,424,047) |
Net assets | ||
At beginning of period | 1,216,869,345 | 1,290,293,392 |
At end of period | $1,211,913,530 | $1,216,869,345 |
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 | $35.33 | $35.18 | $29.38 | $29.50 | $26.81 | $25.56 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.44 | $0.87 | $0.90 | $0.89 | $0.81 | $1.06(c) |
Net realized and unrealized gain (loss) | 0.63 | 0.99 | 6.37 | (0.56) | 3.17 | 1.91 |
Total from investment operations | $1.07 | $1.86 | $7.27 | $0.33 | $3.98 | $2.97 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.84) | $(1.37) | $(0.33) | $(1.29) | $(1.08) |
From net realized gain | — | (0.87) | (0.10) | (0.12) | — | (0.64) |
Total distributions declared to shareholders | $— | $(1.71) | $(1.47) | $(0.45) | $(1.29) | $(1.72) |
Net asset value, end of period (x) | $36.40 | $35.33 | $35.18 | $29.38 | $29.50 | $26.81 |
Total return (%) (k)(r)(s)(x) | 3.03(n) | 5.90 | 25.07 | 1.06 | 14.83 | 11.47(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.79(a) | 0.80 | 0.79 | 0.78 | 0.80 | 0.77(c) |
Expenses after expense reductions (f) | 0.78(a) | 0.79 | 0.78 | 0.78 | 0.79 | 0.77(c) |
Net investment income (loss) | 2.49(a) | 2.63 | 2.69 | 2.98 | 2.78 | 3.89(c) |
Portfolio turnover | 9(n) | 32 | 28 | 27 | 27 | 33 |
Net assets at end of period (000 omitted) | $538,206 | $537,240 | $556,301 | $492,930 | $561,744 | $556,607 |
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 | $34.69 | $34.56 | $28.86 | $28.98 | $26.37 | $25.15 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.39 | $0.77 | $0.80 | $0.81 | $0.73 | $0.97(c) |
Net realized and unrealized gain (loss) | 0.62 | 0.97 | 6.27 | (0.56) | 3.09 | 1.90 |
Total from investment operations | $1.01 | $1.74 | $7.07 | $0.25 | $3.82 | $2.87 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.74) | $(1.27) | $(0.25) | $(1.21) | $(1.01) |
From net realized gain | — | (0.87) | (0.10) | (0.12) | — | (0.64) |
Total distributions declared to shareholders | $— | $(1.61) | $(1.37) | $(0.37) | $(1.21) | $(1.65) |
Net asset value, end of period (x) | $35.70 | $34.69 | $34.56 | $28.86 | $28.98 | $26.37 |
Total return (%) (k)(r)(s)(x) | 2.91(n) | 5.62 | 24.80 | 0.81 | 14.49 | 11.24(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 1.04(a) | 1.05 | 1.04 | 1.04 | 1.05 | 1.02(c) |
Expenses after expense reductions (f) | 1.03(a) | 1.04 | 1.03 | 1.03 | 1.04 | 1.02(c) |
Net investment income (loss) | 2.24(a) | 2.38 | 2.44 | 2.76 | 2.53 | 3.64(c) |
Portfolio turnover | 9(n) | 32 | 28 | 27 | 27 | 33 |
Net assets at end of period (000 omitted) | $673,708 | $679,629 | $733,992 | $727,201 | $1,021,211 | $998,836 |
(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 | $1,200,151,261 | $— | $— | $1,200,151,261 |
Mutual Funds | 6,853,786 | — | — | 6,853,786 |
Total | $1,207,005,047 | $— | $— | $1,207,005,047 |
Other Financial Instruments | ||||
Forward Foreign Currency Exchange Contracts – Assets | $— | $2,694,103 | $— | $2,694,103 |
Forward Foreign Currency Exchange Contracts – Liabilities | — | (704,622) | — | (704,622) |
Fair Value | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Foreign Exchange | Forward Foreign Currency Exchange Contracts | $2,694,103 | $(704,622) |
Risk | Forward Foreign Currency Exchange Contracts |
Foreign Exchange | $(2,463,154) |
Risk | Forward Foreign Currency Exchange Contracts |
Foreign Exchange | $6,742,188 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $35,969,261 |
Long-term capital gains | 20,968,013 |
Total distributions | $56,937,274 |
As of 6/30/21 | |
Cost of investments | $865,673,674 |
Gross appreciation | 350,476,005 |
Gross depreciation | (9,144,632) |
Net unrealized appreciation (depreciation) | $341,331,373 |
As of 12/31/20 | |
Undistributed ordinary income | 21,343,618 |
Undistributed long-term capital gain | 35,823,036 |
Other temporary differences | (22,309,943) |
Net unrealized appreciation (depreciation) | 339,572,302 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $25,547,426 | |
Service Class | — | 31,389,848 | |
Total | $— | $56,937,274 |
Up to $1 billion | 0.75% |
In excess of $1 billion and up to $3 billion | 0.70% |
In excess of $3 billion | 0.65% |
Six months ended 6/30/21 | Year ended 12/31/20 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 344,927 | $12,297,484 | 693,191 | $22,914,614 | |
Service Class | 731,526 | 25,779,753 | 1,582,964 | 49,564,692 | |
1,076,453 | $38,077,237 | 2,276,155 | $72,479,306 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 813,353 | $25,547,426 | |
Service Class | — | — | 1,016,840 | 31,389,848 | |
— | $— | 1,830,193 | $56,937,274 | ||
Shares reacquired | |||||
Initial Class | (768,663) | $(27,604,790) | (2,109,750) | $(69,285,092) | |
Service Class | (1,453,930) | (51,158,628) | (4,245,334) | (135,421,500) | |
(2,222,593) | $(78,763,418) | (6,355,084) | $(204,706,592) | ||
Net change | |||||
Initial Class | (423,736) | $(15,307,306) | (603,206) | $(20,823,052) | |
Service Class | (722,404) | (25,378,875) | (1,645,530) | (54,466,960) | |
(1,146,140) | $(40,686,181) | (2,248,736) | $(75,290,012) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $4,847,086 | $72,684,686 | $70,677,986 | $— | $— | $6,853,786 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $3,140 | $— |
1 | |
2 | |
3 | |
4 | |
6 | |
7 | |
8 | |
9 | |
11 | |
17 | |
18 | |
18 | |
18 | |
18 |
JPMorgan Chase & Co. | 4.4% |
Johnson & Johnson | 3.5% |
Comcast Corp., “A” | 3.2% |
Texas Instruments, Inc. | 2.6% |
Accenture PLC, “A” | 2.6% |
Honeywell International, Inc. | 2.5% |
Medtronic PLC | 2.5% |
Aon PLC | 2.3% |
Cigna Corp. | 2.2% |
Duke Energy Corp. | 2.1% |
Financials | 27.5% |
Health Care | 18.3% |
Industrials | 17.6% |
Information Technology | 9.7% |
Consumer Staples | 7.3% |
Utilities | 6.2% |
Materials | 3.9% |
Communication Services | 3.5% |
Energy | 2.5% |
Consumer Discretionary | 1.8% |
Real Estate | 0.4% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
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 | 0.71% | $1,000.00 | $1,148.04 | $3.78 |
Hypothetical (h) | 0.71% | $1,000.00 | $1,021.27 | $3.56 | |
Service Class | Actual | 0.96% | $1,000.00 | $1,146.79 | $5.11 |
Hypothetical (h) | 0.96% | $1,000.00 | $1,020.03 | $4.81 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 98.7% | ||||
Aerospace & Defense – 6.1% | ||||
Honeywell International, Inc. | 306,429 | $ 67,215,201 | ||
Lockheed Martin Corp. | 63,336 | 23,963,176 | ||
Northrop Grumman Corp. | 147,454 | 53,589,207 | ||
Raytheon Technologies Corp. | 217,113 | 18,521,910 | ||
$163,289,494 | ||||
Alcoholic Beverages – 1.5% | ||||
Diageo PLC | 834,591 | $ 39,956,889 | ||
Brokerage & Asset Managers – 3.7% | ||||
BlackRock, Inc. | 46,104 | $ 40,339,617 | ||
NASDAQ, Inc. | 270,415 | 47,538,957 | ||
T. Rowe Price Group, Inc. | 50,710 | 10,039,059 | ||
$97,917,633 | ||||
Business Services – 5.9% | ||||
Accenture PLC, “A” | 237,009 | $ 69,867,883 | ||
Equifax, Inc. | 140,789 | 33,720,373 | ||
Fidelity National Information Services, Inc. | 214,119 | 30,334,239 | ||
Fiserv, Inc. (a) | 209,874 | 22,433,432 | ||
$156,355,927 | ||||
Cable TV – 3.2% | ||||
Comcast Corp., “A” | 1,478,062 | $ 84,279,095 | ||
Chemicals – 1.8% | ||||
PPG Industries, Inc. | 287,135 | $ 48,746,909 | ||
Construction – 3.5% | ||||
Masco Corp. | 368,140 | $ 21,687,127 | ||
Otis Worldwide Corp. | 108,554 | 8,876,461 | ||
Sherwin-Williams Co. | 114,364 | 31,158,472 | ||
Stanley Black & Decker, Inc. | 155,160 | 31,806,248 | ||
$93,528,308 | ||||
Consumer Products – 2.5% | ||||
Colgate-Palmolive Co. | 249,023 | $ 20,258,021 | ||
International Flavors & Fragrances, Inc. | 44,464 | 6,642,922 | ||
Kimberly-Clark Corp. | 169,592 | 22,688,018 | ||
Reckitt Benckiser Group PLC | 176,296 | 15,600,380 | ||
$65,189,341 | ||||
Electrical Equipment – 1.4% | ||||
Johnson Controls International PLC | 542,504 | $ 37,232,050 | ||
Electronics – 5.1% | ||||
Analog Devices, Inc. | 121,267 | $ 20,877,327 | ||
Intel Corp. | 385,262 | 21,628,609 | ||
NXP Semiconductors N.V. | 112,862 | 23,217,970 | ||
Texas Instruments, Inc. | 363,693 | 69,938,164 | ||
$135,662,070 | ||||
Energy - Independent – 1.9% | ||||
ConocoPhillips | 365,717 | $ 22,272,165 | ||
EOG Resources, Inc. | 193,481 | 16,144,055 | ||
Pioneer Natural Resources Co. | 81,677 | 13,274,146 | ||
$51,690,366 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Energy - Integrated – 0.6% | ||||
Chevron Corp. | 142,919 | $ 14,969,336 | ||
Food & Beverages – 3.1% | ||||
Archer Daniels Midland Co. | 208,805 | $ 12,653,583 | ||
J.M. Smucker Co. | 52,810 | 6,842,592 | ||
Nestle S.A. | 346,249 | 43,117,870 | ||
PepsiCo, Inc. | 134,457 | 19,922,494 | ||
$82,536,539 | ||||
Gaming & Lodging – 0.3% | ||||
Marriott International, Inc., “A” (a) | 67,920 | $ 9,272,438 | ||
Health Maintenance Organizations – 2.2% | ||||
Cigna Corp. | 245,045 | $ 58,092,818 | ||
Insurance – 8.7% | ||||
Aon PLC | 252,937 | $ 60,391,238 | ||
Chubb Ltd. | 321,509 | 51,100,641 | ||
Marsh & McLennan Cos., Inc. | 370,509 | 52,123,206 | ||
Progressive Corp. | 359,751 | 35,331,146 | ||
Travelers Cos., Inc. | 219,726 | 32,895,179 | ||
$231,841,410 | ||||
Machinery & Tools – 4.5% | ||||
Eaton Corp. PLC | 287,886 | $ 42,658,947 | ||
Illinois Tool Works, Inc. | 198,114 | 44,290,366 | ||
Trane Technologies PLC | 174,622 | 32,154,895 | ||
$119,104,208 | ||||
Major Banks – 8.7% | ||||
Goldman Sachs Group, Inc. | 88,259 | $ 33,496,938 | ||
JPMorgan Chase & Co. | 759,413 | 118,119,098 | ||
Morgan Stanley | 498,953 | 45,749,001 | ||
PNC Financial Services Group, Inc. | 178,683 | 34,085,569 | ||
$231,450,606 | ||||
Medical & Health Technology & Services – 0.9% | ||||
McKesson Corp. | 122,719 | $ 23,468,782 | ||
Medical Equipment – 8.4% | ||||
Abbott Laboratories | 361,890 | $ 41,953,908 | ||
Boston Scientific Corp. (a) | 609,739 | 26,072,439 | ||
Danaher Corp. | 160,930 | 43,187,175 | ||
Medtronic PLC | 531,342 | 65,955,482 | ||
Thermo Fisher Scientific, Inc. | 93,923 | 47,381,336 | ||
$224,550,340 | ||||
Other Banks & Diversified Financials – 6.4% | ||||
American Express Co. | 273,601 | $ 45,207,093 | ||
Citigroup, Inc. | 767,998 | 54,335,859 | ||
Moody's Corp. | 44,520 | 16,132,712 | ||
Truist Financial Corp. | 371,659 | 20,627,075 | ||
U.S. Bancorp | 578,734 | 32,970,476 | ||
$169,273,215 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Pharmaceuticals – 6.8% | ||||
Johnson & Johnson | 566,301 | $ 93,292,427 | ||
Merck & Co., Inc. | 435,589 | 33,875,756 | ||
Organon & Co. (a) | 43,558 | 1,318,065 | ||
Pfizer, Inc. | 1,045,306 | 40,934,183 | ||
Roche Holding AG | 31,917 | 12,023,421 | ||
$181,443,852 | ||||
Railroad & Shipping – 2.0% | ||||
Canadian National Railway Co. | 136,985 | $ 14,454,657 | ||
Union Pacific Corp. | 171,970 | 37,821,362 | ||
$52,276,019 | ||||
Real Estate – 0.4% | ||||
Public Storage, Inc., REIT | 35,323 | $ 10,621,273 | ||
Specialty Chemicals – 0.6% | ||||
DuPont de Nemours, Inc. | 218,666 | $ 16,926,935 | ||
Specialty Stores – 1.5% | ||||
Lowe's Cos., Inc. | 200,324 | $ 38,856,846 | ||
Telephone Services – 0.3% | ||||
Verizon Communications, Inc. | 129,720 | $ 7,268,212 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Tobacco – 0.5% | ||||
Philip Morris International, Inc. | 135,953 | $ 13,474,302 | ||
Utilities - Electric Power – 6.2% | ||||
American Electric Power Co., Inc. | 222,282 | $ 18,802,834 | ||
Dominion Energy, Inc. | 501,797 | 36,917,205 | ||
Duke Energy Corp. | 559,921 | 55,275,401 | ||
Southern Co. | 686,309 | 41,528,558 | ||
Xcel Energy, Inc. | 192,752 | 12,698,502 | ||
$165,222,500 | ||||
Total Common Stocks (Identified Cost, $1,250,564,102) | $2,624,497,713 | |||
Investment Companies (h) – 1.2% | ||||
Money Market Funds – 1.2% | ||||
MFS Institutional Money Market Portfolio, 0.02% (v) (Identified Cost, $31,540,709) | 31,540,709 | $ 31,540,709 | ||
Other Assets, Less Liabilities – 0.1% | 3,019,552 | |||
Net Assets – 100.0% | $2,659,057,974 |
(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 $31,540,709 and $2,624,497,713, respectively. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
REIT | Real Estate Investment Trust |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/21Assets | |
Investments in unaffiliated issuers, at value (identified cost, $1,250,564,102) | $2,624,497,713 |
Investments in affiliated issuers, at value (identified cost, $31,540,709) | 31,540,709 |
Cash | 73,336 |
Receivables for | |
Investments sold | 957,948 |
Fund shares sold | 1,715,756 |
Interest and dividends | 3,250,718 |
Other assets | 6,728 |
Total assets | $2,662,042,908 |
Liabilities | |
Payables for | |
Fund shares reacquired | $2,612,996 |
Payable to affiliates | |
Investment adviser | 97,747 |
Administrative services fee | 1,952 |
Shareholder servicing costs | 644 |
Distribution and/or service fees | 19,127 |
Accrued expenses and other liabilities | 252,468 |
Total liabilities | $2,984,934 |
Net assets | $2,659,057,974 |
Net assets consist of | |
Paid-in capital | $1,105,359,311 |
Total distributable earnings (loss) | 1,553,698,663 |
Net assets | $2,659,057,974 |
Shares of beneficial interest outstanding | 114,926,485 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $1,259,835,365 | 53,796,788 | $23.42 |
Service Class | 1,399,222,609 | 61,129,697 | 22.89 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/21 | |
Net investment income (loss) | |
Income | |
Dividends | $26,783,633 |
Income on securities loaned | 24,033 |
Other | 19,606 |
Dividends from affiliated issuers | 6,218 |
Foreign taxes withheld | (251,549) |
Total investment income | $26,581,941 |
Expenses | |
Management fee | $8,837,975 |
Distribution and/or service fees | 1,669,618 |
Shareholder servicing costs | 32,944 |
Administrative services fee | 170,272 |
Independent Trustees' compensation | 18,355 |
Custodian fee | 58,908 |
Shareholder communications | 82,818 |
Audit and tax fees | 29,615 |
Legal fees | 8,799 |
Miscellaneous | 23,899 |
Total expenses | $10,933,203 |
Reduction of expenses by investment adviser | (154,253) |
Net expenses | $10,778,950 |
Net investment income (loss) | $15,802,991 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $78,068,098 |
Foreign currency | 21,670 |
Net realized gain (loss) | $78,089,768 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $261,594,645 |
Translation of assets and liabilities in foreign currencies | (93,023) |
Net unrealized gain (loss) | $261,501,622 |
Net realized and unrealized gain (loss) | $339,591,390 |
Change in net assets from operations | $355,394,381 |
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) | $15,802,991 | $32,732,755 |
Net realized gain (loss) | 78,089,768 | 59,434,807 |
Net unrealized gain (loss) | 261,501,622 | 16,634,536 |
Change in net assets from operations | $355,394,381 | $108,802,098 |
Total distributions to shareholders | $— | $(132,057,054) |
Change in net assets from fund share transactions | $(146,905,867) | $249,518,336 |
Total change in net assets | $208,488,514 | $226,263,380 |
Net assets | ||
At beginning of period | 2,450,569,460 | 2,224,306,080 |
At end of period | $2,659,057,974 | $2,450,569,460 |
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 | $20.40 | $20.95 | $17.30 | $20.92 | $18.90 | $18.39 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.15 | $0.31 | $0.33 | $0.41 | $0.30 | $0.38(c) |
Net realized and unrealized gain (loss) | 2.87 | 0.29 | 4.68 | (2.32) | 2.93 | 2.16 |
Total from investment operations | $3.02 | $0.60 | $5.01 | $(1.91) | $3.23 | $2.54 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.30) | $(0.44) | $(0.32) | $(0.40) | $(0.42) |
From net realized gain | — | (0.85) | (0.92) | (1.39) | (0.81) | (1.61) |
Total distributions declared to shareholders | $— | $(1.15) | $(1.36) | $(1.71) | $(1.21) | $(2.03) |
Net asset value, end of period (x) | $23.42 | $20.40 | $20.95 | $17.30 | $20.92 | $18.90 |
Total return (%) (k)(r)(s)(x) | 14.80(n) | 3.48 | 29.80 | (10.09) | 17.65 | 14.09(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.72(a) | 0.73 | 0.73 | 0.73 | 0.74 | 0.73(c) |
Expenses after expense reductions (f) | 0.71(a) | 0.71 | 0.72 | 0.72 | 0.73 | 0.72(c) |
Net investment income (loss) | 1.36(a) | 1.64 | 1.67 | 2.02 | 1.51 | 2.02(c) |
Portfolio turnover | 5(n) | 17 | 13 | 8 | 10 | 15 |
Net assets at end of period (000 omitted) | $1,259,835 | $1,183,318 | $945,183 | $823,744 | $996,794 | $968,078 |
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 | $19.96 | $20.52 | $16.96 | $20.55 | $18.59 | $18.12 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.12 | $0.25 | $0.27 | $0.35 | $0.25 | $0.33(c) |
Net realized and unrealized gain (loss) | 2.81 | 0.29 | 4.59 | (2.28) | 2.87 | 2.11 |
Total from investment operations | $2.93 | $0.54 | $4.86 | $(1.93) | $3.12 | $2.44 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.25) | $(0.38) | $(0.27) | $(0.35) | $(0.36) |
From net realized gain | — | (0.85) | (0.92) | (1.39) | (0.81) | (1.61) |
Total distributions declared to shareholders | $— | $(1.10) | $(1.30) | $(1.66) | $(1.16) | $(1.97) |
Net asset value, end of period (x) | $22.89 | $19.96 | $20.52 | $16.96 | $20.55 | $18.59 |
Total return (%) (k)(r)(s)(x) | 14.68(n) | 3.22 | 29.51 | (10.36) | 17.35 | 13.78(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions (f) | 0.97(a) | 0.98 | 0.98 | 0.98 | 0.99 | 0.98(c) |
Expenses after expense reductions (f) | 0.96(a) | 0.96 | 0.97 | 0.97 | 0.98 | 0.97(c) |
Net investment income (loss) | 1.10(a) | 1.38 | 1.42 | 1.77 | 1.26 | 1.78(c) |
Portfolio turnover | 5(n) | 17 | 13 | 8 | 10 | 15 |
Net assets at end of period (000 omitted) | $1,399,223 | $1,267,251 | $1,279,123 | $1,127,848 | $1,398,374 | $1,302,307 |
(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 | $2,624,497,713 | $— | $— | $2,624,497,713 |
Mutual Funds | 31,540,709 | — | — | 31,540,709 |
Total | $2,656,038,422 | $— | $— | $2,656,038,422 |
Year ended 12/31/20 | |
Ordinary income (including any short-term capital gains) | $34,922,070 |
Long-term capital gains | 97,134,984 |
Total distributions | $132,057,054 |
As of 6/30/21 | |
Cost of investments | $1,287,475,211 |
Gross appreciation | 1,372,545,427 |
Gross depreciation | (3,982,216) |
Net unrealized appreciation (depreciation) | $1,368,563,211 |
As of 12/31/20 | |
Undistributed ordinary income | 32,690,653 |
Undistributed long-term capital gain | 59,232,794 |
Other temporary differences | 130,254 |
Net unrealized appreciation (depreciation) | 1,106,250,581 |
Six months ended 6/30/21 | Year ended 12/31/20 | ||
Initial Class | $— | $64,613,595 | |
Service Class | — | 67,443,459 | |
Total | $— | $132,057,054 |
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 | 3,663,797 | $79,262,546 | 17,458,957 | $326,082,166 | |
Service Class | 3,516,125 | 76,271,556 | 10,385,417 | 178,855,955 | |
7,179,922 | $155,534,102 | 27,844,374 | $504,938,121 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 3,496,407 | $64,613,595 | |
Service Class | — | — | 3,726,158 | 67,443,459 | |
— | $— | 7,222,565 | $132,057,054 | ||
Shares reacquired | |||||
Initial Class | (7,877,809) | $(175,459,443) | (8,069,039) | $(151,590,113) | |
Service Class | (5,869,199) | (126,980,526) | (12,963,112) | (235,886,726) | |
(13,747,008) | $(302,439,969) | (21,032,151) | $(387,476,839) | ||
Net change | |||||
Initial Class | (4,214,012) | $(96,196,897) | 12,886,325 | $239,105,648 | |
Service Class | (2,353,074) | (50,708,970) | 1,148,463 | 10,412,688 | |
(6,567,086) | $(146,905,867) | 14,034,788 | $249,518,336 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $30,323,177 | $184,446,355 | $183,228,823 | $— | $— | $31,540,709 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $6,218 | $— |
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
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. |