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 811-08326
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
111Huntington Avenue Boston, Massachusetts 02199
(Name and address of agents for service)
Registrant's telephone number, including area code: (617) 954-5000
Date of fiscal year end: December 31
Date of reporting period: June 30, 2023
ITEM 1. REPORTS TO STOCKHOLDERS.
Item 1(a):
1 | |
3 | |
4 | |
8 | |
9 | |
10 | |
11 | |
13 | |
19 | |
20 | |
20 | |
20 | |
20 |
Visa, Inc., “A” | 3.1% |
Schneider Electric SE | 2.9% |
Linde PLC | 2.7% |
Medtronic PLC | 2.6% |
LVMH Moet Hennessy Louis Vuitton SE | 2.6% |
Comcast Corp., “A” | 2.5% |
Thermo Fisher Scientific, Inc. | 2.5% |
Roche Holding AG | 2.4% |
Accenture PLC, “A” | 2.3% |
Honeywell International, Inc. | 2.2% |
Industrials | 19.1% |
Health Care | 18.8% |
Financials | 17.2% |
Consumer Staples | 12.2% |
Information Technology | 8.8% |
Consumer Discretionary | 8.3% |
Communication Services | 7.4% |
Materials | 7.0% |
Equity Warrants | 0.1% |
United States | 53.3% |
France | 11.7% |
Switzerland | 9.1% |
United Kingdom | 7.9% |
Germany | 3.8% |
Canada | 3.6% |
Japan | 2.6% |
Netherlands | 2.3% |
Sweden | 1.3% |
Other Countries | 4.4% |
United States Dollar | 58.0% |
Euro | 19.2% |
Swiss Franc | 9.1% |
British Pound Sterling | 7.9% |
Japanese Yen | 2.6% |
Swedish Krona | 1.3% |
South Korean Won | 1.1% |
Danish Krone | 0.5% |
Mexican Peso | 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. |
(i) | For purposes of this presentation, the components include the value of securities, less any securities sold short, and reflect the impact of the equivalent exposure of derivative positions. 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. |
(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, 2023 through June 30, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/23 | Ending Account Value 6/30/23 | Expenses Paid During Period (p) 1/01/23-6/30/23 | |
Initial Class | Actual | 0.92% | $1,000.00 | $1,105.45 | $4.80 |
Hypothetical (h) | 0.92% | $1,000.00 | $1,020.23 | $4.61 | |
Service Class | Actual | 1.17% | $1,000.00 | $1,103.98 | $6.10 |
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 – 98.8% | ||||
Aerospace & Defense – 3.3% | ||||
Honeywell International, Inc. | 5,587 | $ 1,159,303 | ||
MTU Aero Engines Holding AG | 1,063 | 275,371 | ||
Rolls-Royce Holdings PLC (a) | 176,655 | 338,883 | ||
$1,773,557 | ||||
Airlines – 0.9% | ||||
Aena S.A. | 2,840 | $ 458,653 | ||
Alcoholic Beverages – 5.6% | ||||
Carlsberg A.S., “B” | 1,909 | $ 305,088 | ||
Diageo PLC | 25,572 | 1,097,378 | ||
Heineken N.V. | 7,413 | 761,828 | ||
Pernod Ricard S.A. | 3,633 | 802,381 | ||
$2,966,675 | ||||
Apparel Manufacturers – 5.1% | ||||
Burberry Group PLC | 13,659 | $ 367,755 | ||
Compagnie Financiere Richemont S.A. | 5,633 | 954,410 | ||
LVMH Moet Hennessy Louis Vuitton SE | 1,436 | 1,352,289 | ||
$2,674,454 | ||||
Automotive – 0.4% | ||||
Aptiv PLC (a) | 1,899 | $ 193,869 | ||
Broadcasting – 2.0% | ||||
Omnicom Group, Inc. | 1,725 | $ 164,134 | ||
Walt Disney Co. (a) | 6,388 | 570,321 | ||
WPP Group PLC | 30,543 | 319,393 | ||
$1,053,848 | ||||
Brokerage & Asset Managers – 2.9% | ||||
Charles Schwab Corp. | 15,465 | $ 876,556 | ||
Deutsche Boerse AG | 1,497 | 276,229 | ||
London Stock Exchange Group PLC | 3,461 | 367,725 | ||
$1,520,510 | ||||
Business Services – 8.4% | ||||
Accenture PLC, “A” | 3,994 | $ 1,232,469 | ||
Adecco S.A. | 3,344 | 109,206 | ||
Brenntag AG | 3,115 | 242,695 | ||
Cognizant Technology Solutions Corp., “A” | 7,652 | 499,523 | ||
Compass Group PLC | 11,666 | 326,244 | ||
Equifax, Inc. | 1,843 | 433,658 | ||
Experian PLC | 5,497 | 210,692 | ||
Fidelity National Information Services, Inc. | 7,160 | 391,652 | ||
Fiserv, Inc. (a) | 5,101 | 643,491 | ||
Intertek Group PLC | 3,977 | 215,416 | ||
PayPal Holdings, Inc. (a) | 2,486 | 165,891 | ||
$4,470,937 | ||||
Cable TV – 2.5% | ||||
Comcast Corp., “A” | 31,430 | $ 1,305,916 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Chemicals – 1.9% | ||||
3M Co. | 4,036 | $ 403,963 | ||
PPG Industries, Inc. | 4,220 | 625,826 | ||
$1,029,789 | ||||
Computer Software – 3.1% | ||||
Check Point Software Technologies Ltd. (a) | 4,595 | $ 577,224 | ||
Oracle Corp. | 9,101 | 1,083,838 | ||
$1,661,062 | ||||
Computer Software - Systems – 1.1% | ||||
Samsung Electronics Co. Ltd. | 10,562 | $ 582,140 | ||
Construction – 0.6% | ||||
Otis Worldwide Corp. | 3,552 | $ 316,164 | ||
Consumer Products – 4.3% | ||||
Colgate-Palmolive Co. | 3,074 | $ 236,821 | ||
Essity AB | 25,173 | 670,091 | ||
International Flavors & Fragrances, Inc. | 8,188 | 651,683 | ||
Reckitt Benckiser Group PLC | 9,235 | 693,386 | ||
$2,251,981 | ||||
Electrical Equipment – 5.0% | ||||
Amphenol Corp., “A” | 4,465 | $ 379,301 | ||
Legrand S.A. | 6,962 | 689,802 | ||
Schneider Electric SE | 8,585 | 1,559,390 | ||
$2,628,493 | ||||
Electronics – 1.2% | ||||
Hoya Corp. | 2,700 | $ 322,081 | ||
Microchip Technology, Inc. | 3,651 | 327,093 | ||
$649,174 | ||||
Food & Beverages – 3.6% | ||||
Danone S.A. | 12,225 | $ 748,903 | ||
Nestle S.A. | 9,468 | 1,138,212 | ||
$1,887,115 | ||||
Gaming & Lodging – 1.1% | ||||
Marriott International, Inc., “A” | 1,870 | $ 343,500 | ||
Whitbread PLC | 5,808 | 249,757 | ||
$593,257 | ||||
Insurance – 3.3% | ||||
Aon PLC | 2,238 | $ 772,558 | ||
Willis Towers Watson PLC | 4,234 | 997,107 | ||
$1,769,665 | ||||
Internet – 2.5% | ||||
Alphabet, Inc., “A” (a) | 8,105 | $ 970,168 | ||
eBay, Inc. | 8,053 | 359,889 | ||
$1,330,057 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Machinery & Tools – 1.2% | ||||
Carrier Global Corp. | 2,937 | $ 145,998 | ||
Kubota Corp. | 35,000 | 509,131 | ||
$655,129 | ||||
Major Banks – 3.6% | ||||
Erste Group Bank AG | 7,580 | $ 265,426 | ||
Goldman Sachs Group, Inc. | 2,722 | 877,954 | ||
UBS Group AG | 37,314 | 754,368 | ||
$1,897,748 | ||||
Medical Equipment – 13.5% | ||||
Abbott Laboratories | 6,715 | $ 732,069 | ||
Boston Scientific Corp. (a) | 16,707 | 903,682 | ||
Cooper Cos., Inc. | 1,328 | 509,195 | ||
EssilorLuxottica | 1,180 | 222,242 | ||
Medtronic PLC | 15,599 | 1,374,272 | ||
Olympus Corp. | 34,700 | 549,262 | ||
Sonova Holding AG | 1,121 | 298,332 | ||
Stryker Corp. | 2,010 | 613,231 | ||
Thermo Fisher Scientific, Inc. | 2,501 | 1,304,897 | ||
Waters Corp. (a) | 2,315 | 617,040 | ||
$7,124,222 | ||||
Other Banks & Diversified Financials – 5.1% | ||||
American Express Co. | 3,982 | $ 693,664 | ||
Grupo Financiero Banorte S.A. de C.V. | 18,129 | 149,559 | ||
Julius Baer Group Ltd. | 3,668 | 230,887 | ||
Visa, Inc., “A” | 6,806 | 1,616,289 | ||
$2,690,399 | ||||
Pharmaceuticals – 4.7% | ||||
Bayer AG | 9,741 | $ 538,591 | ||
Merck KGaA | 4,207 | 695,717 | ||
Roche Holding AG | 4,159 | 1,270,864 | ||
$2,505,172 | ||||
Railroad & Shipping – 4.8% | ||||
Canadian National Railway Co. | 7,063 | $ 855,117 | ||
Canadian Pacific Kansas City Ltd. | 13,137 | 1,061,076 | ||
Union Pacific Corp. | 3,001 | 614,065 | ||
$2,530,258 | ||||
Specialty Chemicals – 4.6% | ||||
Akzo Nobel N.V. | 5,686 | $ 463,605 | ||
L'Air Liquide S.A. | 3,015 | 540,213 | ||
Linde PLC | 3,792 | 1,445,055 | ||
$2,448,873 | ||||
Specialty Stores – 0.5% | ||||
Hermes International | 117 | $ 254,064 | ||
Telecommunications - Wireless – 1.1% | ||||
Liberty Broadband Corp. (a) | 7,032 | $ 563,334 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Trucking – 0.9% | ||||
United Parcel Service, Inc., “B” | 2,806 | $ 502,975 | ||
Total Common Stocks (Identified Cost, $27,020,593) | $52,289,490 |
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 | 11/20/23 | 14,904 | $ 20,565 |
Investment Companies (h) – 0.9% | ||||
Money Market Funds – 0.9% | ||||
MFS Institutional Money Market Portfolio, 5.04% (v) (Identified Cost, $459,054) | 459,053 | $ 459,145 | ||
Other Assets, Less Liabilities – 0.3% | 162,197 | |||
Net Assets – 100.0% | $52,931,397 |
(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 $459,145 and $52,310,055, 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. |
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 6/30/23Assets | |
Investments in unaffiliated issuers, at value (identified cost, $27,020,593) | $52,310,055 |
Investments in affiliated issuers, at value (identified cost, $459,054) | 459,145 |
Foreign currency, at value (identified cost, $11,258) | 11,297 |
Receivables for | |
Investments sold | 183,262 |
Fund shares sold | 56,314 |
Interest and dividends | 182,301 |
Receivable from investment adviser | 8,383 |
Other assets | 191 |
Total assets | $53,210,948 |
Liabilities | |
Payable to custodian | $1,551 |
Payables for | |
Investments purchased | 199,848 |
Fund shares reacquired | 16,359 |
Payable to affiliates | |
Administrative services fee | 98 |
Shareholder servicing costs | 58 |
Distribution and/or service fees | 138 |
Accrued expenses and other liabilities | 61,499 |
Total liabilities | $279,551 |
Net assets | $52,931,397 |
Net assets consist of | |
Paid-in capital | $23,331,540 |
Total distributable earnings (loss) | 29,599,857 |
Net assets | $52,931,397 |
Shares of beneficial interest outstanding | 2,421,123 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $42,705,265 | 1,949,084 | $21.91 |
Service Class | 10,226,132 | 472,039 | 21.66 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/23 | |
Net investment income (loss) | |
Income | |
Dividends | $645,525 |
Dividends from affiliated issuers | 8,706 |
Interest | 328 |
Other | 35 |
Income on securities loaned | 22 |
Foreign taxes withheld | (53,768) |
Total investment income | $600,848 |
Expenses | |
Management fee | $230,566 |
Distribution and/or service fees | 12,100 |
Shareholder servicing costs | 1,504 |
Administrative services fee | 8,801 |
Independent Trustees' compensation | 1,504 |
Custodian fee | 7,643 |
Shareholder communications | 4,370 |
Audit and tax fees | 34,718 |
Legal fees | 133 |
Miscellaneous | 11,357 |
Total expenses | $312,696 |
Reduction of expenses by investment adviser | (64,260) |
Net expenses | $248,436 |
Net investment income (loss) | $352,412 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $1,928,412 |
Affiliated issuers | 135 |
Foreign currency | (207) |
Net realized gain (loss) | $1,928,340 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $2,850,145 |
Affiliated issuers | 37 |
Translation of assets and liabilities in foreign currencies | 3,479 |
Net unrealized gain (loss) | $2,853,661 |
Net realized and unrealized gain (loss) | $4,782,001 |
Change in net assets from operations | $5,134,413 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/23 (unaudited) | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $352,412 | $374,997 |
Net realized gain (loss) | 1,928,340 | 2,133,459 |
Net unrealized gain (loss) | 2,853,661 | (14,525,344) |
Change in net assets from operations | $5,134,413 | $(12,016,888) |
Total distributions to shareholders | $— | $(5,629,118) |
Change in net assets from fund share transactions | $(1,515,712) | $249,205 |
Total change in net assets | $3,618,701 | $(17,396,801) |
Net assets | ||
At beginning of period | 49,312,696 | 66,709,497 |
At end of period | $52,931,397 | $49,312,696 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $19.82 | $26.90 | $24.57 | $22.79 | $18.82 | $22.00 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.15 | $0.16 | $0.12 | $0.16 | $0.25 | $0.23 |
Net realized and unrealized gain (loss) | 1.94 | (4.91) | 4.07 | 2.73 | 5.35 | (2.23) |
Total from investment operations | $2.09 | $(4.75) | $4.19 | $2.89 | $5.60 | $(2.00) |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.12) | $(0.17) | $(0.26) | $(0.25) | $(0.21) |
From net realized gain | — | (2.21) | (1.69) | (0.85) | (1.38) | (0.97) |
Total distributions declared to shareholders | $— | $(2.33) | $(1.86) | $(1.11) | $(1.63) | $(1.18) |
Net asset value, end of period (x) | $21.91 | $19.82 | $26.90 | $24.57 | $22.79 | $18.82 |
Total return (%) (k)(r)(s)(x) | 10.54(n) | (17.73) | 17.21 | 13.29 | 30.57 | (9.74) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.17(a) | 1.17 | 1.13 | 1.16 | 1.16 | 1.13 |
Expenses after expense reductions | 0.92(a) | 0.92 | 0.92 | 0.92 | 0.95 | 0.97 |
Net investment income (loss) | 1.42(a)(l) | 0.74 | 0.45 | 0.75 | 1.16 | 1.07 |
Portfolio turnover | 5(n) | 7 | 12 | 12 | 11 | 15 |
Net assets at end of period (000 omitted) | $42,705 | $39,840 | $51,966 | $46,879 | $49,771 | $45,219 |
Service Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $19.62 | $26.64 | $24.37 | $22.62 | $18.70 | $21.86 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.12 | $0.11 | $0.05 | $0.10 | $0.18 | $0.18 |
Net realized and unrealized gain (loss) | 1.92 | (4.87) | 4.03 | 2.71 | 5.32 | (2.21) |
Total from investment operations | $2.04 | $(4.76) | $4.08 | $2.81 | $5.50 | $(2.03) |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.05) | $(0.12) | $(0.21) | $(0.20) | $(0.16) |
From net realized gain | — | (2.21) | (1.69) | (0.85) | (1.38) | (0.97) |
Total distributions declared to shareholders | $— | $(2.26) | $(1.81) | $(1.06) | $(1.58) | $(1.13) |
Net asset value, end of period (x) | $21.66 | $19.62 | $26.64 | $24.37 | $22.62 | $18.70 |
Total return (%) (k)(r)(s)(x) | 10.40(n) | (17.94) | 16.88 | 13.04 | 30.20 | (9.92) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.42(a) | 1.42 | 1.38 | 1.41 | 1.41 | 1.38 |
Expenses after expense reductions | 1.17(a) | 1.17 | 1.17 | 1.17 | 1.20 | 1.22 |
Net investment income (loss) | 1.18(a)(l) | 0.49 | 0.19 | 0.48 | 0.85 | 0.86 |
Portfolio turnover | 5(n) | 7 | 12 | 12 | 11 | 15 |
Net assets at end of period (000 omitted) | $10,226 | $9,473 | $14,744 | $13,469 | $11,319 | $7,139 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(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. |
(l) | Recognition of net investment income by the fund may be affected by the timing of the declaration of dividends by companies in which the fund invests and the actual annual net investment income ratio may differ. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(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 | $27,618,414 | $— | $— | $27,618,414 |
France | 6,169,284 | — | — | 6,169,284 |
Switzerland | 4,776,844 | — | — | 4,776,844 |
United Kingdom | 4,186,629 | — | — | 4,186,629 |
Germany | 2,028,603 | — | — | 2,028,603 |
Canada | 1,916,193 | — | — | 1,916,193 |
Japan | 509,131 | 871,343 | — | 1,380,474 |
Netherlands | 1,225,433 | — | — | 1,225,433 |
Sweden | 670,091 | — | — | 670,091 |
Other Countries | 1,755,950 | 582,140 | — | 2,338,090 |
Mutual Funds | 459,145 | — | — | 459,145 |
Total | $51,315,717 | $1,453,483 | $— | $52,769,200 |
Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $383,057 |
Long-term capital gains | 5,246,061 |
Total distributions | $5,629,118 |
As of 6/30/23 | |
Cost of investments | $28,021,153 |
Gross appreciation | 26,078,205 |
Gross depreciation | (1,330,158) |
Net unrealized appreciation (depreciation) | $24,748,047 |
As of 12/31/22 | |
Undistributed ordinary income | 368,585 |
Undistributed long-term capital gain | 2,202,445 |
Other temporary differences | (3,451) |
Net unrealized appreciation (depreciation) | 21,897,865 |
Six months ended 6/30/23 | Year ended 12/31/22 | ||
Initial Class | $— | $4,432,765 | |
Service Class | — | 1,196,353 | |
Total | $— | $5,629,118 |
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 6/30/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 122,031 | $2,556,934 | 212,890 | $4,784,619 | |
Service Class | 55,001 | 1,156,644 | 80,213 | 1,744,781 | |
177,032 | $3,713,578 | 293,103 | $6,529,400 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 221,860 | $4,432,765 | |
Service Class | — | — | 60,452 | 1,196,353 | |
— | $— | 282,312 | $5,629,118 | ||
Shares reacquired | |||||
Initial Class | (183,395) | $(3,851,124) | (356,010) | $(7,569,275) | |
Service Class | (65,844) | (1,378,166) | (211,201) | (4,340,038) | |
(249,239) | $(5,229,290) | (567,211) | $(11,909,313) |
Six months ended 6/30/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Net change | |||||
Initial Class | (61,364) | $(1,294,190) | 78,740 | $1,648,109 | |
Service Class | (10,843) | (221,522) | (70,536) | (1,398,904) | |
(72,207) | $(1,515,712) | 8,204 | $249,205 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $182,641 | $4,473,411 | $4,197,079 | $135 | $37 | $459,145 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $8,706 | $— |
1 | |
2 | |
3 | |
6 | |
7 | |
8 | |
9 | |
11 | |
16 | |
17 | |
17 | |
17 | |
17 |
Microsoft Corp. | 13.9% |
Apple, Inc. | 6.3% |
Amazon.com, Inc. | 5.9% |
Alphabet, Inc., “A” | 5.7% |
NVIDIA Corp. | 5.3% |
Mastercard, Inc., “A” | 3.7% |
Visa, Inc., “A” | 3.2% |
Meta Platforms, Inc., “A” | 2.5% |
Boston Scientific Corp. | 1.9% |
Vulcan Materials Co. | 1.9% |
Information Technology | 37.9% |
Communication Services | 11.5% |
Health Care | 11.4% |
Financials | 11.3% |
Consumer Discretionary | 10.4% |
Industrials | 8.6% |
Materials | 5.4% |
Consumer Staples | 1.5% |
Real Estate | 0.6% |
Energy | 0.5% |
(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, 2023 through June 30, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/23 | Ending Account Value 6/30/23 | Expenses Paid During Period (p) 1/01/23-6/30/23 | |
Initial Class | Actual | 0.73% | $1,000.00 | $1,240.11 | $4.05 |
Hypothetical (h) | 0.73% | $1,000.00 | $1,021.17 | $3.66 | |
Service Class | Actual | 0.98% | $1,000.00 | $1,238.49 | $5.44 |
Hypothetical (h) | 0.98% | $1,000.00 | $1,019.93 | $4.91 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.1% | ||||
Aerospace & Defense – 0.5% | ||||
Howmet Aerospace, Inc. | 184,067 | $ 9,122,360 | ||
Apparel Manufacturers – 1.3% | ||||
LVMH Moet Hennessy Louis Vuitton SE | 24,392 | $ 22,970,090 | ||
Brokerage & Asset Managers – 0.5% | ||||
CME Group, Inc. | 52,427 | $ 9,714,199 | ||
Business Services – 4.6% | ||||
CoStar Group, Inc. (a) | 245,974 | $ 21,891,686 | ||
Equifax, Inc. | 17,605 | 4,142,456 | ||
MSCI, Inc. | 55,354 | 25,977,079 | ||
Verisk Analytics, Inc., “A” | 138,019 | 31,196,435 | ||
$83,207,656 | ||||
Computer Software – 18.4% | ||||
Adobe Systems, Inc. (a) | 15,748 | $ 7,700,615 | ||
Autodesk, Inc. (a) | 23,633 | 4,835,548 | ||
Cadence Design Systems, Inc. (a) | 122,251 | 28,670,305 | ||
Intuit, Inc. | 39,193 | 17,957,841 | ||
Microsoft Corp. | 732,623 | 249,487,436 | ||
Synopsys, Inc. (a) | 48,835 | 21,263,247 | ||
$329,914,992 | ||||
Computer Software - Systems – 7.9% | ||||
Apple, Inc. | 580,347 | $ 112,569,908 | ||
Arista Networks, Inc. (a) | 44,442 | 7,202,270 | ||
ServiceNow, Inc. (a) | 39,775 | 22,352,357 | ||
$142,124,535 | ||||
Construction – 2.9% | ||||
Martin Marietta Materials, Inc. | 15,341 | $ 7,082,786 | ||
Sherwin-Williams Co. | 40,087 | 10,643,900 | ||
Vulcan Materials Co. | 152,560 | 34,393,127 | ||
$52,119,813 | ||||
Consumer Products – 1.5% | ||||
Colgate-Palmolive Co. | 125,538 | $ 9,671,448 | ||
Estee Lauder Cos., Inc., “A” | 90,032 | 17,680,484 | ||
$27,351,932 | ||||
Electrical Equipment – 3.5% | ||||
AMETEK, Inc. | 140,635 | $ 22,765,994 | ||
Amphenol Corp., “A” | 139,637 | 11,862,163 | ||
Johnson Controls International PLC | 220,953 | 15,055,737 | ||
Rockwell Automation, Inc. | 39,831 | 13,122,323 | ||
$62,806,217 | ||||
Electronics – 10.2% | ||||
Advanced Micro Devices (a) | 159,455 | $ 18,163,519 | ||
Applied Materials, Inc. | 92,673 | 13,394,955 | ||
ASML Holding N.V., ADR | 37,066 | 26,863,583 | ||
KLA Corp. | 21,835 | 10,590,412 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Electronics – continued | ||||
Lam Research Corp. | 28,530 | $ 18,340,796 | ||
NVIDIA Corp. | 226,776 | 95,930,784 | ||
$183,284,049 | ||||
Energy - Independent – 0.5% | ||||
Hess Corp. | 63,914 | $ 8,689,108 | ||
Entertainment – 0.6% | ||||
Spotify Technology S.A. (a) | 65,192 | $ 10,466,576 | ||
Gaming & Lodging – 1.5% | ||||
Hilton Worldwide Holdings, Inc. | 131,205 | $ 19,096,888 | ||
Las Vegas Sands Corp. (a) | 147,056 | 8,529,248 | ||
$27,626,136 | ||||
Health Maintenance Organizations – 0.6% | ||||
UnitedHealth Group, Inc. | 23,849 | $ 11,462,783 | ||
Insurance – 2.1% | ||||
Aon PLC | 77,450 | $ 26,735,740 | ||
Arthur J. Gallagher & Co. | 51,454 | 11,297,755 | ||
$38,033,495 | ||||
Internet – 10.5% | ||||
Alphabet, Inc., “A” (a) | 849,871 | $ 101,729,559 | ||
Alphabet, Inc., “C” (a) | 241,152 | 29,172,157 | ||
Gartner, Inc. (a) | 35,726 | 12,515,175 | ||
Meta Platforms, Inc., “A” (a) | 156,805 | 44,999,899 | ||
$188,416,790 | ||||
Leisure & Toys – 1.1% | ||||
Electronic Arts, Inc. | 90,279 | $ 11,709,187 | ||
Take-Two Interactive Software, Inc. (a) | 53,289 | 7,842,009 | ||
$19,551,196 | ||||
Machinery & Tools – 1.3% | ||||
Caterpillar, Inc. | 10,701 | $ 2,632,981 | ||
Eaton Corp. PLC | 99,569 | 20,023,326 | ||
$22,656,307 | ||||
Medical & Health Technology & Services – 0.6% | ||||
ICON PLC (a) | 23,314 | $ 5,833,163 | ||
Veeva Systems, Inc. (a) | 22,914 | 4,530,785 | ||
$10,363,948 | ||||
Medical Equipment – 5.2% | ||||
Abbott Laboratories | 77,206 | $ 8,416,998 | ||
Agilent Technologies, Inc. | 17,788 | 2,139,007 | ||
Becton, Dickinson and Co. | 56,868 | 15,013,721 | ||
Boston Scientific Corp. (a) | 642,459 | 34,750,607 | ||
Danaher Corp. | 21,915 | 5,259,600 | ||
STERIS PLC | 32,229 | 7,250,880 | ||
Thermo Fisher Scientific, Inc. | 38,037 | 19,845,805 | ||
$92,676,618 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Other Banks & Diversified Financials – 7.2% | ||||
American Express Co. | 30,155 | $ 5,253,001 | ||
Mastercard, Inc., “A” | 169,312 | 66,590,410 | ||
Visa, Inc., “A” | 243,015 | 57,711,202 | ||
$129,554,613 | ||||
Pharmaceuticals – 5.0% | ||||
Eli Lilly & Co. | 56,889 | $ 26,679,803 | ||
Novo Nordisk A/S, ADR | 24,687 | 3,995,097 | ||
Regeneron Pharmaceuticals, Inc. (a) | 17,902 | 12,863,303 | ||
Vertex Pharmaceuticals, Inc. (a) | 83,857 | 29,510,117 | ||
Zoetis, Inc. | 98,211 | 16,912,917 | ||
$89,961,237 | ||||
Railroad & Shipping – 0.8% | ||||
Canadian Pacific Kansas City Ltd. | 177,739 | $ 14,355,979 | ||
Restaurants – 0.6% | ||||
Chipotle Mexican Grill, Inc., “A” (a) | 5,004 | $ 10,703,556 | ||
Specialty Chemicals – 2.5% | ||||
Air Products & Chemicals, Inc. | 61,336 | $ 18,371,972 | ||
Linde PLC | 69,125 | 26,342,155 | ||
$44,714,127 | ||||
Specialty Stores – 7.0% | ||||
Amazon.com, Inc. (a) | 812,891 | $ 105,968,471 | ||
Lululemon Athletica, Inc. (a) | 17,218 | 6,517,013 | ||
O'Reilly Automotive, Inc. (a) | 14,455 | 13,808,861 | ||
$126,294,345 | ||||
Telecommunications - Wireless – 0.7% | ||||
American Tower Corp., REIT | 59,525 | $ 11,544,278 | ||
Total Common Stocks (Identified Cost, $759,670,565) | $1,779,686,935 | |||
Investment Companies (h) – 1.0% | ||||
Money Market Funds – 1.0% | ||||
MFS Institutional Money Market Portfolio, 5.04% (v) (Identified Cost, $18,238,874) | 18,240,623 | $ 18,244,271 | ||
Other Assets, Less Liabilities – (0.1)% | (2,436,883) | |||
Net Assets – 100.0% | $1,795,494,323 |
(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 $18,244,271 and $1,779,686,935, 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 6/30/23Assets | |
Investments in unaffiliated issuers, at value (identified cost, $759,670,565) | $1,779,686,935 |
Investments in affiliated issuers, at value (identified cost, $18,238,874) | 18,244,271 |
Receivables for | |
Fund shares sold | 219,632 |
Dividends | 414,880 |
Other assets | 3,473 |
Total assets | $1,798,569,191 |
Liabilities | |
Payables for | |
Fund shares reacquired | $2,813,487 |
Payable to affiliates | |
Investment adviser | 67,289 |
Administrative services fee | 1,444 |
Shareholder servicing costs | 526 |
Distribution and/or service fees | 6,114 |
Accrued expenses and other liabilities | 186,008 |
Total liabilities | $3,074,868 |
Net assets | $1,795,494,323 |
Net assets consist of | |
Paid-in capital | $532,829,990 |
Total distributable earnings (loss) | 1,262,664,333 |
Net assets | $1,795,494,323 |
Shares of beneficial interest outstanding | 30,718,809 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $1,342,416,735 | 22,542,546 | $59.55 |
Service Class | 453,077,588 | 8,176,263 | 55.41 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/23 | |
Net investment income (loss) | |
Income | |
Dividends | $5,836,597 |
Dividends from affiliated issuers | 726,762 |
Other | 18,539 |
Foreign taxes withheld | (53,759) |
Total investment income | $6,528,139 |
Expenses | |
Management fee | $5,836,658 |
Distribution and/or service fees | 515,619 |
Shareholder servicing costs | 9,286 |
Administrative services fee | 125,074 |
Independent Trustees' compensation | 13,756 |
Custodian fee | 39,791 |
Shareholder communications | 23,160 |
Audit and tax fees | 35,538 |
Legal fees | 3,958 |
Miscellaneous | 20,718 |
Total expenses | $6,623,558 |
Reduction of expenses by investment adviser | (105,334) |
Net expenses | $6,518,224 |
Net investment income (loss) | $9,915 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $108,568,432 |
Affiliated issuers | (5,086) |
Foreign currency | 1,151 |
Net realized gain (loss) | $108,564,497 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $250,037,550 |
Affiliated issuers | (8,627) |
Translation of assets and liabilities in foreign currencies | 104 |
Net unrealized gain (loss) | $250,029,027 |
Net realized and unrealized gain (loss) | $358,593,524 |
Change in net assets from operations | $358,603,439 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/23 (unaudited) | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $9,915 | $(2,629,918) |
Net realized gain (loss) | 108,564,497 | 135,463,776 |
Net unrealized gain (loss) | 250,029,027 | (872,241,975) |
Change in net assets from operations | $358,603,439 | $(739,408,117) |
Total distributions to shareholders | $— | $(206,493,057) |
Change in net assets from fund share transactions | $(107,020,996) | $109,659,888 |
Total change in net assets | $251,582,443 | $(836,241,286) |
Net assets | ||
At beginning of period | 1,543,911,880 | 2,380,153,166 |
At end of period | $1,795,494,323 | $1,543,911,880 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $48.02 | $79.36 | $73.81 | $59.40 | $47.01 | $48.90 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.02 | $(0.05) | $(0.25) | $(0.14) | $(0.04) | $0.00(w) |
Net realized and unrealized gain (loss) | 11.51 | (24.26) | 17.21 | 18.88 | 17.53 | 1.81 |
Total from investment operations | $11.53 | $(24.31) | $16.96 | $18.74 | $17.49 | $1.81 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $— | $— | $— | $— | $(0.05) |
From net realized gain | — | (7.03) | (11.41) | (4.33) | (5.10) | (3.65) |
Total distributions declared to shareholders | $— | $(7.03) | $(11.41) | $(4.33) | $(5.10) | $(3.70) |
Net asset value, end of period (x) | $59.55 | $48.02 | $79.36 | $73.81 | $59.40 | $47.01 |
Total return (%) (k)(r)(s)(x) | 24.01(n) | (31.63) | 23.53 | 31.86 | 38.15 | 2.67 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.74(a) | 0.74 | 0.72 | 0.74 | 0.74 | 0.75 |
Expenses after expense reductions | 0.73(a) | 0.73 | 0.71 | 0.72 | 0.73 | 0.74 |
Net investment income (loss) | 0.06(a) | (0.09) | (0.32) | (0.21) | (0.06) | 0.00(w) |
Portfolio turnover | 15(n) | 18 | 12 | 29 | 11 | 15 |
Net assets at end of period (000 omitted) | $1,342,417 | $1,160,108 | $1,805,385 | $1,681,327 | $1,467,280 | $1,226,217 |
Service Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $44.74 | $74.74 | $70.23 | $56.82 | $45.26 | $47.27 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.05) | $(0.18) | $(0.42) | $(0.29) | $(0.17) | $(0.13) |
Net realized and unrealized gain (loss) | 10.72 | (22.79) | 16.34 | 18.03 | 16.83 | 1.77 |
Total from investment operations | $10.67 | $(22.97) | $15.92 | $17.74 | $16.66 | $1.64 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $— | $— | $— | $— | $— |
From net realized gain | — | (7.03) | (11.41) | (4.33) | (5.10) | (3.65) |
Total distributions declared to shareholders | $— | $(7.03) | $(11.41) | $(4.33) | $(5.10) | $(3.65) |
Net asset value, end of period (x) | $55.41 | $44.74 | $74.74 | $70.23 | $56.82 | $45.26 |
Total return (%) (k)(r)(s)(x) | 23.85(n) | (31.80) | 23.24 | 31.54 | 37.78 | 2.41 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.99(a) | 0.99 | 0.97 | 0.99 | 0.99 | 1.00 |
Expenses after expense reductions | 0.98(a) | 0.98 | 0.96 | 0.97 | 0.98 | 0.99 |
Net investment income (loss) | (0.19)(a) | (0.34) | (0.57) | (0.46) | (0.31) | (0.25) |
Portfolio turnover | 15(n) | 18 | 12 | 29 | 11 | 15 |
Net assets at end of period (000 omitted) | $453,078 | $383,804 | $574,768 | $514,102 | $401,008 | $287,412 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(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 | $1,779,686,935 | $— | $— | $1,779,686,935 |
Mutual Funds | 18,244,271 | — | — | 18,244,271 |
Total | $1,797,931,206 | $— | $— | $1,797,931,206 |
Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $8,852,271 |
Long-term capital gains | 197,640,786 |
Total distributions | $206,493,057 |
As of 6/30/23 | |
Cost of investments | $779,602,219 |
Gross appreciation | 1,023,176,880 |
Gross depreciation | (4,847,893) |
Net unrealized appreciation (depreciation) | $1,018,328,987 |
As of 12/31/22 | |
Undistributed long-term capital gain | 135,760,625 |
Other temporary differences | 205 |
Net unrealized appreciation (depreciation) | 768,300,064 |
Six months ended 6/30/23 | Year ended 12/31/22 | ||
Initial Class | $— | $153,225,412 | |
Service Class | — | 53,267,645 | |
Total | $— | $206,493,057 |
Up to $1 billion | 0.75% |
In excess of $1 billion | 0.65% |
Six months ended 6/30/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 480,023 | $25,466,261 | 1,752,561 | $104,011,257 | |
Service Class | 405,517 | 20,055,713 | 1,084,357 | 60,672,539 | |
885,540 | $45,521,974 | 2,836,918 | $164,683,796 |
Six months ended 6/30/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 2,803,820 | $151,742,716 | |
Service Class | — | — | 1,055,432 | 53,267,645 | |
— | $— | 3,859,252 | $205,010,361 | ||
Shares reacquired | |||||
Initial Class | (2,095,087) | $(112,098,627) | (3,148,754) | $(188,392,601) | |
Service Class | (807,413) | (40,444,343) | (1,252,072) | (71,641,668) | |
(2,902,500) | $(152,542,970) | (4,400,826) | $(260,034,269) | ||
Net change | |||||
Initial Class | (1,615,064) | $(86,632,366) | 1,407,627 | $67,361,372 | |
Service Class | (401,896) | (20,388,630) | 887,717 | 42,298,516 | |
(2,016,960) | $(107,020,996) | 2,295,344 | $109,659,888 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $42,297,287 | $98,731,466 | $122,770,769 | $(5,086) | $(8,627) | $18,244,271 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $726,762 | $— |
1 | |
2 | |
3 | |
7 | |
8 | |
9 | |
10 | |
12 | |
17 | |
18 | |
18 | |
18 | |
18 |
Microsoft Corp. | 8.7% |
Alphabet, Inc., “A” | 4.9% |
Apple, Inc. | 4.4% |
JPMorgan Chase & Co. | 2.6% |
ConocoPhillips | 2.6% |
Visa, Inc., “A” | 2.2% |
Amazon.com, Inc. | 2.0% |
Honeywell International, Inc. | 2.0% |
Mastercard, Inc., “A” | 1.9% |
Vertex Pharmaceuticals, Inc. | 1.8% |
Information Technology | 24.9% |
Health Care | 15.8% |
Financials | 15.1% |
Industrials | 10.2% |
Communication Services | 9.3% |
Consumer Staples | 8.1% |
Consumer Discretionary | 5.5% |
Materials | 3.5% |
Real Estate | 3.2% |
Energy | 3.1% |
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, 2023 through June 30, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/23 | Ending Account Value 6/30/23 | Expenses Paid During Period (p) 1/01/23-6/30/23 | |
Initial Class | Actual | 0.78% | $1,000.00 | $1,113.73 | $4.09 |
Hypothetical (h) | 0.78% | $1,000.00 | $1,020.93 | $3.91 | |
Service Class | Actual | 1.03% | $1,000.00 | $1,112.09 | $5.39 |
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 – 99.3% | ||||
Aerospace & Defense – 3.6% | ||||
Honeywell International, Inc. | 73,396 | $ 15,229,670 | ||
Howmet Aerospace, Inc. | 255,101 | 12,642,805 | ||
$27,872,475 | ||||
Alcoholic Beverages – 2.2% | ||||
Diageo PLC | 188,827 | $ 8,103,185 | ||
Pernod Ricard S.A. | 41,414 | 9,146,653 | ||
$17,249,838 | ||||
Apparel Manufacturers – 1.2% | ||||
LVMH Moet Hennessy Louis Vuitton SE | 10,184 | $ 9,590,333 | ||
Brokerage & Asset Managers – 1.5% | ||||
Charles Schwab Corp. | 74,017 | $ 4,195,284 | ||
NASDAQ, Inc. | 156,410 | 7,797,038 | ||
$11,992,322 | ||||
Business Services – 2.5% | ||||
Amdocs Ltd. | 82,313 | $ 8,136,640 | ||
Fiserv, Inc. (a) | 89,906 | 11,341,642 | ||
$19,478,282 | ||||
Cable TV – 2.0% | ||||
Cable One, Inc. | 5,929 | $ 3,895,828 | ||
Comcast Corp., “A” | 271,426 | 11,277,750 | ||
$15,173,578 | ||||
Chemicals – 0.6% | ||||
PPG Industries, Inc. | 30,735 | $ 4,558,000 | ||
Computer Software – 12.5% | ||||
Adobe Systems, Inc. (a) | 22,456 | $ 10,980,759 | ||
Check Point Software Technologies Ltd. (a) | 79,009 | 9,925,111 | ||
Microsoft Corp. | 198,016 | 67,432,369 | ||
Salesforce, Inc. (a) | 39,166 | 8,274,209 | ||
$96,612,448 | ||||
Computer Software - Systems – 4.4% | ||||
Apple, Inc. | 175,127 | $ 33,969,384 | ||
Construction – 0.9% | ||||
Masco Corp. | 116,587 | $ 6,689,762 | ||
Consumer Products – 2.2% | ||||
Colgate-Palmolive Co. | 85,080 | $ 6,554,563 | ||
International Flavors & Fragrances, Inc. | 22,085 | 1,757,745 | ||
Kenvue, Inc. (a) | 123,396 | 3,260,123 | ||
Kimberly-Clark Corp. | 41,770 | 5,766,766 | ||
$17,339,197 | ||||
Containers – 0.8% | ||||
Crown Holdings, Inc. | 70,351 | $ 6,111,391 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Electrical Equipment – 4.9% | ||||
AMETEK, Inc. | 50,933 | $ 8,245,034 | ||
Fortive Corp. | 93,476 | 6,989,201 | ||
Johnson Controls International PLC | 201,716 | 13,744,928 | ||
TE Connectivity Ltd. | 63,078 | 8,841,012 | ||
$37,820,175 | ||||
Electronics – 5.9% | ||||
Analog Devices, Inc. | 59,625 | $ 11,615,546 | ||
Applied Materials, Inc. | 61,859 | 8,941,100 | ||
ASML Holding N.V. | 7,604 | 5,501,234 | ||
NVIDIA Corp. | 21,502 | 9,095,776 | ||
Texas Instruments, Inc. | 60,664 | 10,920,733 | ||
$46,074,389 | ||||
Energy - Independent – 2.6% | ||||
ConocoPhillips | 192,595 | $ 19,954,768 | ||
Energy - Integrated – 0.5% | ||||
Exxon Mobil Corp. | 38,996 | $ 4,182,321 | ||
Food & Beverages – 1.0% | ||||
Mondelez International, Inc. | 102,721 | $ 7,492,470 | ||
Forest & Paper Products – 0.6% | ||||
Rayonier, Inc., REIT | 137,745 | $ 4,325,193 | ||
General Merchandise – 0.6% | ||||
Dollar General Corp. | 25,527 | $ 4,333,974 | ||
Health Maintenance Organizations – 1.5% | ||||
Cigna Group | 41,392 | $ 11,614,595 | ||
Insurance – 2.4% | ||||
Aon PLC | 12,704 | $ 4,385,421 | ||
Chubb Ltd. | 37,540 | 7,228,702 | ||
Willis Towers Watson PLC | 30,953 | 7,289,432 | ||
$18,903,555 | ||||
Internet – 5.9% | ||||
Alphabet, Inc., “A” (a) | 315,099 | $ 37,717,350 | ||
Alphabet, Inc., “C” (a) | 65,145 | 7,880,591 | ||
$45,597,941 | ||||
Leisure & Toys – 1.4% | ||||
Electronic Arts, Inc. | 84,920 | $ 11,014,124 | ||
Machinery & Tools – 0.8% | ||||
Eaton Corp. PLC | 29,739 | $ 5,980,513 | ||
Major Banks – 5.5% | ||||
Bank of America Corp. | 362,839 | $ 10,409,851 | ||
Goldman Sachs Group, Inc. | 38,367 | 12,374,892 | ||
JPMorgan Chase & Co. | 138,093 | 20,084,246 | ||
$42,868,989 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Medical & Health Technology & Services – 1.5% | ||||
ICON PLC (a) | 45,132 | $ 11,292,026 | ||
Medical Equipment – 5.6% | ||||
Agilent Technologies, Inc. | 64,597 | $ 7,767,789 | ||
Becton, Dickinson and Co. | 42,812 | 11,302,796 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 136,191 | 1,692,854 | ||
Medtronic PLC | 148,539 | 13,086,286 | ||
Thermo Fisher Scientific, Inc. | 18,210 | 9,501,068 | ||
$43,350,793 | ||||
Network & Telecom – 1.2% | ||||
Equinix, Inc., REIT | 11,879 | $ 9,312,423 | ||
Other Banks & Diversified Financials – 4.1% | ||||
Mastercard, Inc., “A” | 38,253 | $ 15,044,905 | ||
Visa, Inc., “A” | 71,196 | 16,907,626 | ||
$31,952,531 | ||||
Pharmaceuticals – 7.2% | ||||
Eli Lilly & Co. | 24,916 | $ 11,685,106 | ||
Johnson & Johnson | 74,769 | 12,375,765 | ||
Merck & Co., Inc. | 94,233 | 10,873,546 | ||
Vertex Pharmaceuticals, Inc. (a) | 40,150 | 14,129,186 | ||
Zoetis, Inc. | 41,030 | 7,065,776 | ||
$56,129,379 | ||||
Pollution Control – 0.5% | ||||
Waste Management, Inc. | 22,540 | $ 3,908,887 | ||
Railroad & Shipping – 0.7% | ||||
Canadian Pacific Kansas City Ltd. | 70,475 | $ 5,692,266 | ||
Specialty Chemicals – 1.9% | ||||
DuPont de Nemours, Inc. | 118,182 | $ 8,442,922 | ||
Linde PLC | 16,433 | 6,262,288 | ||
$14,705,210 | ||||
Specialty Stores – 6.6% | ||||
Amazon.com, Inc. (a) | 121,326 | $ 15,816,058 | ||
Costco Wholesale Corp. | 18,350 | 9,879,273 | ||
Home Depot, Inc. | 37,566 | 11,669,502 | ||
Target Corp. | 62,968 | 8,305,479 | ||
Tractor Supply Co. | 26,459 | 5,850,085 | ||
$51,520,397 | ||||
Telecommunications - Wireless – 1.4% | ||||
American Tower Corp., REIT | 57,218 | $ 11,096,859 | ||
Utilities - Electric Power – 0.6% | ||||
Xcel Energy, Inc. | 78,022 | $ 4,850,628 | ||
Total Common Stocks (Identified Cost, $430,860,633) | $770,611,416 |
Issuer | Shares/Par | Value ($) | ||
Investment Companies (h) – 0.7% | ||||
Money Market Funds – 0.7% | ||||
MFS Institutional Money Market Portfolio, 5.04% (v) (Identified Cost, $5,083,921) | 5,083,618 | $ 5,084,635 | ||
Other Assets, Less Liabilities – 0.0% | 150,336 | |||
Net Assets – 100.0% | $775,846,387 |
(a) | Non-income producing security. | |||
(h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $5,084,635 and $770,611,416, 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 6/30/23Assets | |
Investments in unaffiliated issuers, at value (identified cost, $430,860,633) | $770,611,416 |
Investments in affiliated issuers, at value (identified cost, $5,083,921) | 5,084,635 |
Foreign currency, at value (identified cost, $44,503) | 44,680 |
Receivables for | |
Fund shares sold | 117,505 |
Dividends | 707,399 |
Other assets | 1,515 |
Total assets | $776,567,150 |
Liabilities | |
Payables for | |
Fund shares reacquired | $572,834 |
Payable to affiliates | |
Investment adviser | 30,922 |
Administrative services fee | 657 |
Shareholder servicing costs | 313 |
Distribution and/or service fees | 5,734 |
Accrued expenses and other liabilities | 110,303 |
Total liabilities | $720,763 |
Net assets | $775,846,387 |
Net assets consist of | |
Paid-in capital | $359,806,819 |
Total distributable earnings (loss) | 416,039,568 |
Net assets | $775,846,387 |
Shares of beneficial interest outstanding | 21,828,227 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $351,560,451 | 9,781,869 | $35.94 |
Service Class | 424,285,936 | 12,046,358 | 35.22 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/23 | |
Net investment income (loss) | |
Income | |
Dividends | $5,659,941 |
Dividends from affiliated issuers | 187,360 |
Other | 3,807 |
Foreign taxes withheld | (19,152) |
Total investment income | $5,831,956 |
Expenses | |
Management fee | $2,881,733 |
Distribution and/or service fees | 509,625 |
Shareholder servicing costs | 6,209 |
Administrative services fee | 61,230 |
Independent Trustees' compensation | 7,233 |
Custodian fee | 19,098 |
Shareholder communications | 13,973 |
Audit and tax fees | 33,145 |
Legal fees | 1,719 |
Miscellaneous | 15,442 |
Total expenses | $3,549,407 |
Reduction of expenses by investment adviser | (49,308) |
Net expenses | $3,500,099 |
Net investment income (loss) | $2,331,857 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $29,566,877 |
Affiliated issuers | 302 |
Foreign currency | 764 |
Net realized gain (loss) | $29,567,943 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $50,397,304 |
Affiliated issuers | (1,992) |
Translation of assets and liabilities in foreign currencies | 5,564 |
Net unrealized gain (loss) | $50,400,876 |
Net realized and unrealized gain (loss) | $79,968,819 |
Change in net assets from operations | $82,300,676 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/23 (unaudited) | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $2,331,857 | $4,347,033 |
Net realized gain (loss) | 29,567,943 | 40,767,162 |
Net unrealized gain (loss) | 50,400,876 | (185,010,919) |
Change in net assets from operations | $82,300,676 | $(139,896,724) |
Total distributions to shareholders | $— | $(109,065,257) |
Change in net assets from fund share transactions | $(67,059,342) | $177,975,178 |
Total change in net assets | $15,241,334 | $(70,986,803) |
Net assets | ||
At beginning of period | 760,605,053 | 831,591,856 |
At end of period | $775,846,387 | $760,605,053 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $32.27 | $44.72 | $36.57 | $33.27 | $27.05 | $30.07 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.12 | $0.27 | $0.21 | $0.25 | $0.25 | $0.26 |
Net realized and unrealized gain (loss) | 3.55 | (7.41) | 9.53 | 4.26 | 8.08 | (1.71) |
Total from investment operations | $3.67 | $(7.14) | $9.74 | $4.51 | $8.33 | $(1.45) |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.26) | $(0.26) | $(0.21) | $(0.22) | $(0.20) |
From net realized gain | — | (5.05) | (1.33) | (1.00) | (1.89) | (1.37) |
Total distributions declared to shareholders | $— | $(5.31) | $(1.59) | $(1.21) | $(2.11) | $(1.57) |
Net asset value, end of period (x) | $35.94 | $32.27 | $44.72 | $36.57 | $33.27 | $27.05 |
Total return (%) (k)(r)(s)(x) | 11.37(n) | (16.49) | 26.81 | 13.87 | 31.58 | (5.49) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.79(a) | 0.80 | 0.79 | 0.80 | 0.80 | 0.80 |
Expenses after expense reductions | 0.78(a) | 0.78 | 0.78 | 0.79 | 0.79 | 0.79 |
Net investment income (loss) | 0.73(a) | 0.74 | 0.50 | 0.78 | 0.80 | 0.86 |
Portfolio turnover | 12(n) | 17 | 13 | 19 | 18 | 16 |
Net assets at end of period (000 omitted) | $351,560 | $357,428 | $296,678 | $269,852 | $265,499 | $231,900 |
Service Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $31.67 | $43.97 | $35.99 | $32.77 | $26.68 | $29.69 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.08 | $0.16 | $0.10 | $0.17 | $0.17 | $0.18 |
Net realized and unrealized gain (loss) | 3.47 | (7.26) | 9.38 | 4.19 | 7.97 | (1.68) |
Total from investment operations | $3.55 | $(7.10) | $9.48 | $4.36 | $8.14 | $(1.50) |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.15) | $(0.17) | $(0.14) | $(0.16) | $(0.14) |
From net realized gain | — | (5.05) | (1.33) | (1.00) | (1.89) | (1.37) |
Total distributions declared to shareholders | $— | $(5.20) | $(1.50) | $(1.14) | $(2.05) | $(1.51) |
Net asset value, end of period (x) | $35.22 | $31.67 | $43.97 | $35.99 | $32.77 | $26.68 |
Total return (%) (k)(r)(s)(x) | 11.21(n) | (16.69) | 26.51 | 13.60 | 31.25 | (5.71) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.04(a) | 1.05 | 1.04 | 1.05 | 1.05 | 1.05 |
Expenses after expense reductions | 1.03(a) | 1.03 | 1.03 | 1.04 | 1.04 | 1.04 |
Net investment income (loss) | 0.50(a) | 0.44 | 0.24 | 0.53 | 0.55 | 0.62 |
Portfolio turnover | 12(n) | 17 | 13 | 19 | 18 | 16 |
Net assets at end of period (000 omitted) | $424,286 | $403,177 | $534,914 | $496,093 | $453,132 | $325,159 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(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 | $770,611,416 | $— | $— | $770,611,416 |
Mutual Funds | 5,084,635 | — | — | 5,084,635 |
Total | $775,696,051 | $— | $— | $775,696,051 |
Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $11,904,201 |
Long-term capital gains | 97,161,056 |
Total distributions | $109,065,257 |
As of 6/30/23 | |
Cost of investments | $438,106,698 |
Gross appreciation | 347,626,939 |
Gross depreciation | (10,037,586) |
Net unrealized appreciation (depreciation) | $337,589,353 |
As of 12/31/22 | |
Undistributed ordinary income | 4,373,737 |
Undistributed long-term capital gain | 42,176,512 |
Other temporary differences | (5,398) |
Net unrealized appreciation (depreciation) | 287,194,041 |
Six months ended 6/30/23 | Year ended 12/31/22 | ||
Initial Class | $— | $49,941,824 | |
Service Class | — | 59,123,433 | |
Total | $— | $109,065,257 |
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 6/30/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 540,173 | $17,924,249 | 4,180,159 | $160,083,504 | |
Service Class | 204,244 | 6,708,813 | 388,092 | 14,141,886 | |
744,417 | $24,633,062 | 4,568,251 | $174,225,390 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 1,477,569 | $49,941,824 | |
Service Class | — | — | 1,780,826 | 59,123,433 | |
— | $— | 3,258,395 | $109,065,257 | ||
Shares reacquired | |||||
Initial Class | (1,832,959) | $(62,118,154) | (1,216,784) | $(46,566,318) | |
Service Class | (889,131) | (29,574,250) | (1,603,763) | (58,749,151) | |
(2,722,090) | $(91,692,404) | (2,820,547) | $(105,315,469) | ||
Net change | |||||
Initial Class | (1,292,786) | $(44,193,905) | 4,440,944 | $163,459,010 | |
Service Class | (684,887) | (22,865,437) | 565,155 | 14,516,168 | |
(1,977,673) | $(67,059,342) | 5,006,099 | $177,975,178 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $9,390,392 | $31,586,175 | $35,890,242 | $302 | $(1,992) | $5,084,635 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $187,360 | $— |
1 | |
2 | |
3 | |
7 | |
8 | |
9 | |
10 | |
12 | |
17 | |
18 | |
18 | |
18 | |
18 |
Cadence Design Systems, Inc. | 4.1% |
Arthur J. Gallagher & Co. | 3.3% |
Monolithic Power Systems, Inc. | 3.3% |
AMETEK, Inc. | 2.8% |
Verisk Analytics, Inc., “A” | 2.7% |
Vulcan Materials Co. | 2.4% |
MSCI, Inc. | 2.4% |
O'Reilly Automotive, Inc. | 2.4% |
STERIS PLC | 2.3% |
Synopsys, Inc. | 2.3% |
Information Technology | 24.4% |
Industrials | 23.8% |
Consumer Discretionary | 15.8% |
Health Care | 13.7% |
Financials | 8.4% |
Communication Services | 3.7% |
Materials | 2.9% |
Energy | 1.9% |
Consumer Staples | 1.7% |
Real Estate | 1.3% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
January 1, 2023 through June 30, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/23 | Ending Account Value 6/30/23 | Expenses Paid During Period (p) 1/01/23-6/30/23 | |
Initial Class | Actual | 0.80% | $1,000.00 | $1,129.89 | $4.22 |
Hypothetical (h) | 0.80% | $1,000.00 | $1,020.83 | $4.01 | |
Service Class | Actual | 1.05% | $1,000.00 | $1,126.81 | $5.54 |
Hypothetical (h) | 1.05% | $1,000.00 | $1,019.59 | $5.26 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 97.6% | ||||
Aerospace & Defense – 2.4% | ||||
Howmet Aerospace, Inc. | 133,926 | $ 6,637,372 | ||
Teledyne Technologies, Inc. (a) | 3,980 | 1,636,218 | ||
$8,273,590 | ||||
Automotive – 3.2% | ||||
Copart, Inc. (a) | 79,483 | $ 7,249,645 | ||
LKQ Corp. | 61,290 | 3,571,368 | ||
$10,821,013 | ||||
Brokerage & Asset Managers – 1.1% | ||||
NASDAQ, Inc. | 71,880 | $ 3,583,218 | ||
Business Services – 11.5% | ||||
CoStar Group, Inc. (a) | 73,842 | $ 6,571,938 | ||
Equifax, Inc. | 14,631 | 3,442,674 | ||
Factset Research Systems, Inc. | 6,395 | 2,562,157 | ||
Morningstar, Inc. | 11,398 | 2,234,806 | ||
MSCI, Inc. | 17,864 | 8,383,397 | ||
TransUnion | 21,201 | 1,660,674 | ||
Tyler Technologies, Inc. (a) | 12,589 | 5,242,941 | ||
Verisk Analytics, Inc., “A” | 40,877 | 9,239,428 | ||
$39,338,015 | ||||
Computer Software – 10.6% | ||||
ANSYS, Inc. (a) | 7,122 | $ 2,352,183 | ||
Autodesk, Inc. (a) | 11,430 | 2,338,692 | ||
Black Knight, Inc. (a) | 39,538 | 2,361,605 | ||
Bumble, Inc., “A” (a) | 23,320 | 391,310 | ||
Cadence Design Systems, Inc. (a) | 60,049 | 14,082,691 | ||
Dun & Bradstreet Holdings, Inc. | 83,566 | 966,859 | ||
NICE Systems Ltd., ADR (a) | 15,457 | 3,191,871 | ||
Paylocity Holding Corp. (a) | 14,999 | 2,767,765 | ||
Synopsys, Inc. (a) | 17,783 | 7,742,896 | ||
$36,195,872 | ||||
Computer Software - Systems – 3.9% | ||||
Arista Networks, Inc. (a) | 12,307 | $ 1,994,472 | ||
Constellation Software, Inc. | 3,173 | 6,574,164 | ||
ServiceNow, Inc. (a) | 8,529 | 4,793,042 | ||
$13,361,678 | ||||
Construction – 4.0% | ||||
AZEK Co., Inc. (a) | 84,833 | $ 2,569,592 | ||
Martin Marietta Materials, Inc. | 3,208 | 1,481,101 | ||
Pool Corp. | 3,231 | 1,210,462 | ||
Vulcan Materials Co. | 37,192 | 8,384,564 | ||
$13,645,719 | ||||
Consumer Products – 1.7% | ||||
Church & Dwight Co., Inc. | 57,457 | $ 5,758,915 | ||
Consumer Services – 1.7% | ||||
Bright Horizons Family Solutions, Inc. (a) | 63,129 | $ 5,836,276 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Electrical Equipment – 5.3% | ||||
AMETEK, Inc. | 59,819 | $ 9,683,500 | ||
Hubbell, Inc. | 6,971 | 2,311,305 | ||
Littlefuse, Inc. | 11,243 | 3,275,198 | ||
Rockwell Automation, Inc. | 8,753 | 2,883,676 | ||
$18,153,679 | ||||
Electronics – 6.1% | ||||
ASM International N.V. | 14,602 | $ 6,187,855 | ||
Entegris, Inc. | 31,497 | 3,490,498 | ||
Monolithic Power Systems, Inc. | 20,730 | 11,198,968 | ||
$20,877,321 | ||||
Energy - Independent – 1.9% | ||||
Chesapeake Energy Corp. | 32,013 | $ 2,678,848 | ||
Diamondback Energy, Inc. | 7,610 | 999,650 | ||
Hess Corp. | 20,694 | 2,813,349 | ||
$6,491,847 | ||||
Energy - Renewables – 0.4% | ||||
Enphase Energy, Inc. (a) | 7,107 | $ 1,190,280 | ||
Engineering - Construction – 0.7% | ||||
Quanta Services, Inc. | 11,531 | $ 2,265,265 | ||
Entertainment – 1.0% | ||||
Spotify Technology S.A. (a) | 21,995 | $ 3,531,297 | ||
Gaming & Lodging – 3.0% | ||||
Hyatt Hotels Corp. | 40,615 | $ 4,653,667 | ||
Las Vegas Sands Corp. (a) | 45,299 | 2,627,342 | ||
Red Rock Resorts, Inc. | 66,292 | 3,101,140 | ||
$10,382,149 | ||||
General Merchandise – 0.9% | ||||
Five Below, Inc. (a) | 16,154 | $ 3,174,907 | ||
Insurance – 3.3% | ||||
Arthur J. Gallagher & Co. | 52,024 | $ 11,422,910 | ||
Internet – 2.1% | ||||
Gartner, Inc. (a) | 17,078 | $ 5,982,594 | ||
Match Group, Inc. (a) | 30,456 | 1,274,584 | ||
$7,257,178 | ||||
Leisure & Toys – 2.0% | ||||
Electronic Arts, Inc. | 10,070 | $ 1,306,079 | ||
Take-Two Interactive Software, Inc. (a) | 37,790 | 5,561,176 | ||
$6,867,255 | ||||
Machinery & Tools – 3.4% | ||||
IDEX Corp. | 22,490 | $ 4,841,198 | ||
Ingersoll Rand, Inc. | 35,240 | 2,303,286 | ||
Wabtec Corp. | 41,370 | 4,537,048 | ||
$11,681,532 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Medical & Health Technology & Services – 4.3% | ||||
Henry Schein, Inc. (a) | 35,171 | $ 2,852,368 | ||
ICON PLC (a) | 22,514 | 5,633,003 | ||
IDEXX Laboratories, Inc. (a) | 6,802 | 3,416,168 | ||
Veeva Systems, Inc. (a) | 13,548 | 2,678,846 | ||
$14,580,385 | ||||
Medical Equipment – 7.2% | ||||
Agilent Technologies, Inc. | 40,153 | $ 4,828,398 | ||
Bruker BioSciences Corp. | 60,646 | 4,482,952 | ||
Envista Holdings Corp. (a) | 71,208 | 2,409,679 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 20,441 | 254,082 | ||
Mettler-Toledo International, Inc. (a) | 1,786 | 2,342,589 | ||
STERIS PLC | 35,716 | 8,035,386 | ||
Waters Corp. (a) | 8,996 | 2,397,794 | ||
$24,750,880 | ||||
Other Banks & Diversified Financials – 0.2% | ||||
S&P Global, Inc. | 1,687 | $ 676,301 | ||
Pharmaceuticals – 2.2% | ||||
Alnylam Pharmaceuticals, Inc. (a) | 13,211 | $ 2,509,297 | ||
Argenx SE, ADR (a) | 2,877 | 1,121,253 | ||
Ascendis Pharma, ADR (a) | 23,354 | 2,084,345 | ||
Legend Biotech Corp., ADR (a) | 28,495 | 1,967,010 | ||
$7,681,905 | ||||
Pollution Control – 1.3% | ||||
Waste Connections, Inc. | 31,608 | $ 4,517,731 | ||
Printing & Publishing – 2.1% | ||||
Warner Music Group Corp. | 27,168 | $ 708,813 | ||
Wolters Kluwer N.V. | 51,193 | 6,496,730 | ||
$7,205,543 | ||||
Railroad & Shipping – 0.2% | ||||
Canadian Pacific Kansas City Ltd. | 7,320 | $ 591,236 | ||
Real Estate – 0.5% | ||||
Extra Space Storage, Inc., REIT | 12,011 | $ 1,787,837 | ||
Restaurants – 1.6% | ||||
Chipotle Mexican Grill, Inc., “A” (a) | 2,632 | $ 5,629,848 | ||
Specialty Stores – 7.1% | ||||
Burlington Stores, Inc. (a) | 9,419 | $ 1,482,457 | ||
Lululemon Athletica, Inc. (a) | 12,079 | 4,571,902 | ||
O'Reilly Automotive, Inc. (a) | 8,531 | 8,149,664 | ||
Tractor Supply Co. | 20,023 | 4,427,085 | ||
Ulta Beauty, Inc. (a) | 12,303 | 5,789,730 | ||
$24,420,838 | ||||
Telecommunications - Wireless – 0.7% | ||||
SBA Communications Corp., REIT | 10,682 | $ 2,475,660 | ||
Total Common Stocks (Identified Cost, $193,447,030) | $334,428,080 |
Issuer | Shares/Par | Value ($) | ||
Investment Companies (h) – 2.6% | ||||
Money Market Funds – 2.6% | ||||
MFS Institutional Money Market Portfolio, 5.04% (v) (Identified Cost, $8,895,276) | 8,895,651 | $ 8,897,430 | ||
Other Assets, Less Liabilities – (0.2)% | (813,490) | |||
Net Assets – 100.0% | $342,512,020 |
(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 $8,897,430 and $334,428,080, 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 6/30/23Assets | |
Investments in unaffiliated issuers, at value (identified cost, $193,447,030) | $334,428,080 |
Investments in affiliated issuers, at value (identified cost, $8,895,276) | 8,897,430 |
Receivables for | |
Fund shares sold | 74,662 |
Dividends | 55,974 |
Other assets | 770 |
Total assets | $343,456,916 |
Liabilities | |
Payables for | |
Fund shares reacquired | $869,758 |
Payable to affiliates | |
Investment adviser | 13,644 |
Administrative services fee | 321 |
Shareholder servicing costs | 211 |
Distribution and/or service fees | 1,563 |
Accrued expenses and other liabilities | 59,399 |
Total liabilities | $944,896 |
Net assets | $342,512,020 |
Net assets consist of | |
Paid-in capital | $191,401,927 |
Total distributable earnings (loss) | 151,110,093 |
Net assets | $342,512,020 |
Shares of beneficial interest outstanding | 44,506,755 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $226,715,379 | 28,021,870 | $8.09 |
Service Class | 115,796,641 | 16,484,885 | 7.02 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/23 | |
Net investment income (loss) | |
Income | |
Dividends | $1,150,552 |
Dividends from affiliated issuers | 178,370 |
Interest | 5,340 |
Other | 4,382 |
Foreign taxes withheld | (35,629) |
Total investment income | $1,303,015 |
Expenses | |
Management fee | $1,225,580 |
Distribution and/or service fees | 136,826 |
Shareholder servicing costs | 3,708 |
Administrative services fee | 28,936 |
Independent Trustees' compensation | 3,671 |
Custodian fee | 10,386 |
Shareholder communications | 2,998 |
Audit and tax fees | 34,657 |
Legal fees | 772 |
Miscellaneous | 12,612 |
Total expenses | $1,460,146 |
Reduction of expenses by investment adviser | (20,963) |
Net expenses | $1,439,183 |
Net investment income (loss) | $(136,168) |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $6,473,504 |
Affiliated issuers | 358 |
Foreign currency | 1,198 |
Net realized gain (loss) | $6,475,060 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $33,783,215 |
Affiliated issuers | (541) |
Translation of assets and liabilities in foreign currencies | 505 |
Net unrealized gain (loss) | $33,783,179 |
Net realized and unrealized gain (loss) | $40,258,239 |
Change in net assets from operations | $40,122,071 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/23 (unaudited) | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $(136,168) | $(853,816) |
Net realized gain (loss) | 6,475,060 | 4,209,338 |
Net unrealized gain (loss) | 33,783,179 | (131,622,812) |
Change in net assets from operations | $40,122,071 | $(128,267,290) |
Total distributions to shareholders | $— | $(51,377,023) |
Change in net assets from fund share transactions | $(13,314,330) | $46,656,883 |
Total change in net assets | $26,807,741 | $(132,987,430) |
Net assets | ||
At beginning of period | 315,704,279 | 448,691,709 |
At end of period | $342,512,020 | $315,704,279 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $7.16 | $11.72 | $12.64 | $9.96 | $8.23 | $9.51 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.00)(w) | $(0.01) | $(0.05) | $(0.03) | $(0.01) | $(0.02) |
Net realized and unrealized gain (loss) | 0.93 | (3.28) | 1.78 | 3.53 | 3.10 | 0.39 |
Total from investment operations | $0.93 | $(3.29) | $1.73 | $3.50 | $3.09 | $0.37 |
Less distributions declared to shareholders | ||||||
From net realized gain | $— | $(1.27) | $(2.65) | $(0.82) | $(1.36) | $(1.65) |
Net asset value, end of period (x) | $8.09 | $7.16 | $11.72 | $12.64 | $9.96 | $8.23 |
Total return (%) (k)(r)(s)(x) | 12.99(n) | (28.70) | 14.11 | 36.48 | 38.66 | 1.24 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.81(a) | 0.81 | 0.81 | 0.81 | 0.81 | 0.81 |
Expenses after expense reductions | 0.80(a) | 0.80 | 0.79 | 0.80 | 0.80 | 0.80 |
Net investment income (loss) | (0.00)(a)(w) | (0.17) | (0.44) | (0.26) | (0.07) | (0.18) |
Portfolio turnover | 11(n) | 27 | 18 | 40 | 17 | 21 |
Net assets at end of period (000 omitted) | $226,715 | $210,790 | $306,174 | $311,988 | $290,512 | $247,614 |
Service Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $6.23 | $10.43 | $11.53 | $9.17 | $7.68 | $8.99 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.01) | $(0.03) | $(0.08) | $(0.05) | $(0.03) | $(0.04) |
Net realized and unrealized gain (loss) | 0.80 | (2.90) | 1.63 | 3.23 | 2.88 | 0.38 |
Total from investment operations | $0.79 | $(2.93) | $1.55 | $3.18 | $2.85 | $0.34 |
Less distributions declared to shareholders | ||||||
From net realized gain | $— | $(1.27) | $(2.65) | $(0.82) | $(1.36) | $(1.65) |
Net asset value, end of period (x) | $7.02 | $6.23 | $10.43 | $11.53 | $9.17 | $7.68 |
Total return (%) (k)(r)(s)(x) | 12.68(n) | (28.79) | 13.88 | 36.12 | 38.28 | 0.95 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.06(a) | 1.06 | 1.06 | 1.06 | 1.06 | 1.06 |
Expenses after expense reductions | 1.05(a) | 1.05 | 1.04 | 1.05 | 1.05 | 1.05 |
Net investment income (loss) | (0.25)(a) | (0.41) | (0.68) | (0.51) | (0.32) | (0.43) |
Portfolio turnover | 11(n) | 27 | 18 | 40 | 17 | 21 |
Net assets at end of period (000 omitted) | $115,797 | $104,914 | $142,517 | $131,845 | $103,504 | $86,560 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(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 | $334,428,080 | $— | $— | $334,428,080 |
Mutual Funds | 8,897,430 | — | — | 8,897,430 |
Total | $343,325,510 | $— | $— | $343,325,510 |
Year ended 12/31/22 | |
Long-term capital gains | $51,377,023 |
As of 6/30/23 | |
Cost of investments | $203,209,565 |
Gross appreciation | 146,728,526 |
Gross depreciation | (6,612,581) |
Net unrealized appreciation (depreciation) | $140,115,945 |
As of 12/31/22 | |
Undistributed long-term capital gain | 4,656,283 |
Other temporary differences | (1,532) |
Net unrealized appreciation (depreciation) | 106,333,271 |
Six months ended 6/30/23 | Year ended 12/31/22 | ||
Initial Class | $— | $33,177,661 | |
Service Class | — | 18,199,362 | |
Total | $— | $51,377,023 |
Up to $1 billion | 0.75% |
In excess of $1 billion | 0.70% |
Six months ended 6/30/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 1,183,423 | $8,882,719 | 2,834,622 | $24,426,303 | |
Service Class | 1,205,795 | 7,940,496 | 3,913,069 | 29,932,462 | |
2,389,218 | $16,823,215 | 6,747,691 | $54,358,765 |
Six months ended 6/30/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 4,314,495 | $32,833,305 | |
Service Class | — | — | 2,749,148 | 18,199,362 | |
— | $— | 7,063,643 | $51,032,667 | ||
Shares reacquired | |||||
Initial Class | (2,582,456) | $(19,755,446) | (3,856,490) | $(32,740,496) | |
Service Class | (1,566,050) | (10,382,099) | (3,480,324) | (25,994,053) | |
(4,148,506) | $(30,137,545) | (7,336,814) | $(58,734,549) | ||
Net change | |||||
Initial Class | (1,399,033) | $(10,872,727) | 3,292,627 | $24,519,112 | |
Service Class | (360,255) | (2,441,603) | 3,181,893 | 22,137,771 | |
(1,759,288) | $(13,314,330) | 6,474,520 | $46,656,883 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $7,781,244 | $20,314,334 | $19,197,965 | $358 | $(541) | $8,897,430 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $178,370 | $— |
1 | |
2 | |
3 | |
8 | |
9 | |
10 | |
11 | |
13 | |
19 | |
20 | |
20 | |
20 | |
20 |
GFL Environmental, Inc. | 2.5% |
Sensata Technologies Holding PLC | 2.2% |
ChampionX Corp. | 1.9% |
RB Global, Inc. | 1.9% |
ExlService Holdings, Inc. | 1.9% |
Jacobs Solutions, Inc. | 1.7% |
Axalta Coating Systems Ltd. | 1.7% |
KBR, Inc. | 1.7% |
STAG Industrial, Inc., REIT | 1.7% |
Advanced Energy Industries, Inc. | 1.7% |
Industrials | 26.1% |
Health Care | 17.0% |
Information Technology | 16.1% |
Consumer Discretionary | 14.3% |
Energy | 6.8% |
Materials | 5.4% |
Financials | 4.1% |
Consumer Staples | 2.5% |
Real Estate | 2.1% |
Communication Services | 0.7% |
Equity Warrants (o) | 0.0% |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
(o) | Less than 0.1%. |
January 1, 2023 through June 30, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/23 | Ending Account Value 6/30/23 | Expenses Paid During Period (p) 1/01/23-6/30/23 | |
Initial Class | Actual | 0.87% | $1,000.00 | $1,107.87 | $4.55 |
Hypothetical (h) | 0.87% | $1,000.00 | $1,020.48 | $4.36 | |
Service Class | Actual | 1.12% | $1,000.00 | $1,107.47 | $5.85 |
Hypothetical (h) | 1.12% | $1,000.00 | $1,019.24 | $5.61 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 95.1% | ||||
Aerospace & Defense – 3.7% | ||||
AeroVironment, Inc. (a) | 32,663 | $ 3,340,772 | ||
CACI International, Inc., “A” (a) | 27,946 | 9,525,115 | ||
KBR, Inc. | 183,338 | 11,927,970 | ||
Kratos Defense & Security Solutions, Inc. (a) | 118,231 | 1,695,432 | ||
$26,489,289 | ||||
Apparel Manufacturers – 2.6% | ||||
Deckers Outdoor Corp. (a) | 13,519 | $ 7,133,436 | ||
On Holding AG (a) | 117,806 | 3,887,598 | ||
Skechers USA, Inc., “A�� (a) | 135,897 | 7,156,336 | ||
$18,177,370 | ||||
Automotive – 1.8% | ||||
Methode Electronics, Inc. | 106,812 | $ 3,580,338 | ||
Visteon Corp. (a) | 64,345 | 9,240,586 | ||
$12,820,924 | ||||
Biotechnology – 3.2% | ||||
Abcam PLC, ADR (a) | 366,653 | $ 8,971,999 | ||
Adaptive Biotechnologies Corp. (a) | 294,404 | 1,975,451 | ||
AlloVir, Inc. (a) | 165,962 | 564,271 | ||
BioAtla, Inc. (a) | 105,598 | 316,794 | ||
BioXcel Therapeutics, Inc. (a)(l) | 119,850 | 798,201 | ||
Immunocore Holdings PLC, ADR (a) | 72,000 | 4,317,120 | ||
Lyell Immunopharma, Inc. (a)(l) | 210,617 | 669,762 | ||
MaxCyte, Inc. (a) | 379,301 | 1,740,992 | ||
Oxford Nanopore Technologies PLC (a) | 663,620 | 1,796,843 | ||
Prelude Therapeutics, Inc. (a) | 101,925 | 458,662 | ||
Sana Biotechnology, Inc. (a)(l) | 162,437 | 968,124 | ||
$22,578,219 | ||||
Brokerage & Asset Managers – 2.3% | ||||
GCM Grosvenor, Inc., “A” | 637,985 | $ 4,810,407 | ||
Hamilton Lane, Inc., “A” | 64,270 | 5,140,315 | ||
WisdomTree Investments, Inc. | 947,296 | 6,498,450 | ||
$16,449,172 | ||||
Business Services – 6.6% | ||||
ExlService Holdings, Inc. (a) | 87,720 | $ 13,250,983 | ||
Keywords Studios PLC | 279,233 | 6,418,726 | ||
Remitly Global, Inc. (a) | 298,565 | 5,618,993 | ||
Thoughtworks Holding, Inc. (a) | 890,852 | 6,725,933 | ||
TriNet Group, Inc. (a) | 41,858 | 3,975,254 | ||
WNS (Holdings) Ltd., ADR (a) | 146,426 | 10,794,525 | ||
$46,784,414 | ||||
Chemicals – 2.3% | ||||
Element Solutions, Inc. | 462,088 | $ 8,872,090 | ||
Ingevity Corp. (a) | 129,947 | 7,557,717 | ||
$16,429,807 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Computer Software – 7.2% | ||||
Alkami Technology, Inc. (a) | 388,298 | $ 6,364,204 | ||
Definitive Healthcare Corp. (a) | 380,897 | 4,189,867 | ||
DoubleVerify Holdings, Inc. (a) | 270,398 | 10,523,890 | ||
Kinaxis, Inc. (a) | 46,961 | 6,710,487 | ||
Paycor HCM, Inc. (a) | 342,811 | 8,114,336 | ||
Paylocity Holding Corp. (a) | 22,119 | 4,081,619 | ||
Procore Technologies, Inc. (a) | 112,220 | 7,302,156 | ||
Sabre Corp. (a) | 1,084,014 | 3,458,005 | ||
$50,744,564 | ||||
Computer Software - Systems – 4.1% | ||||
Five9, Inc. (a) | 125,453 | $ 10,343,600 | ||
Nuvei Corp. (a) | 243,727 | 7,204,570 | ||
Q2 Holdings, Inc. (a) | 202,569 | 6,259,382 | ||
Rapid7, Inc. (a) | 113,078 | 5,120,172 | ||
$28,927,724 | ||||
Construction – 2.3% | ||||
AZEK Co., Inc. (a) | 208,494 | $ 6,315,283 | ||
Summit Materials, Inc., “A” (a) | 259,522 | 9,822,908 | ||
$16,138,191 | ||||
Consumer Services – 3.1% | ||||
Boyd Group Services, Inc. | 36,955 | $ 7,050,671 | ||
Bright Horizons Family Solutions, Inc. (a) | 78,422 | 7,250,114 | ||
European Wax Center, Inc., “A” (a) | 411,702 | 7,670,008 | ||
$21,970,793 | ||||
Electrical Equipment – 5.0% | ||||
Littlefuse, Inc. | 32,117 | $ 9,356,003 | ||
nVent Electric PLC | 202,575 | 10,467,050 | ||
Sensata Technologies Holding PLC | 346,971 | 15,610,226 | ||
$35,433,279 | ||||
Electronics – 4.7% | ||||
Advanced Energy Industries, Inc. | 105,671 | $ 11,777,033 | ||
Allegro MicroSystems, Inc. (a) | 204,431 | 9,228,015 | ||
Formfactor, Inc. (a) | 229,877 | 7,866,391 | ||
Nova Ltd. (a) | 39,824 | 4,671,355 | ||
$33,542,794 | ||||
Energy - Independent – 2.7% | ||||
Matador Resources Co. | 218,915 | $ 11,453,633 | ||
Permian Resources Corp. | 684,072 | 7,497,429 | ||
$18,951,062 | ||||
Energy - Renewables – 0.3% | ||||
Nextracker, Inc. “A” (a) | 43,536 | $ 1,733,168 | ||
Engineering - Construction – 3.4% | ||||
Corporacion Inmobiliaria Vesta S.A.B. de C.V., ADR (a) | 105,529 | $ 3,400,144 | ||
Jacobs Solutions, Inc. | 103,694 | 12,328,180 | ||
TopBuild Corp. (a) | 32,047 | 8,525,143 | ||
$24,253,467 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Entertainment – 0.7% | ||||
Vivid Seats, Inc., “A” (a) | 624,053 | $ 4,942,500 | ||
Food & Beverages – 1.2% | ||||
Duckhorn Portfolio, Inc. (a) | 540,052 | $ 7,004,474 | ||
Oatly Group AB, ADR (a)(l) | 756,282 | 1,550,378 | ||
$8,554,852 | ||||
Gaming & Lodging – 2.2% | ||||
Genius Sports Ltd. (a) | 740,445 | $ 4,583,355 | ||
Penn Entertainment, Inc. (a) | 449,350 | 10,797,880 | ||
$15,381,235 | ||||
General Merchandise – 2.1% | ||||
Five Below, Inc. (a) | 31,738 | $ 6,237,787 | ||
Ollie's Bargain Outlet Holdings, Inc. (a) | 149,168 | 8,641,302 | ||
$14,879,089 | ||||
Leisure & Toys – 1.7% | ||||
Brunswick Corp. | 95,297 | $ 8,256,532 | ||
Corsair Gaming, Inc. (a) | 86,037 | 1,526,296 | ||
Funko, Inc., “A” (a) | 236,553 | 2,559,504 | ||
$12,342,332 | ||||
Machinery & Tools – 3.4% | ||||
Crane Co. | 116,408 | $ 10,374,281 | ||
RB Global, Inc. | 227,161 | 13,629,660 | ||
$24,003,941 | ||||
Medical & Health Technology & Services – 2.1% | ||||
Certara, Inc. (a) | 303,352 | $ 5,524,040 | ||
HealthEquity, Inc. (a) | 149,710 | 9,452,689 | ||
$14,976,729 | ||||
Medical Equipment – 7.9% | ||||
Bruker BioSciences Corp. | 86,710 | $ 6,409,603 | ||
CryoPort, Inc. (a) | 203,224 | 3,505,614 | ||
Envista Holdings Corp. (a) | 302,179 | 10,225,737 | ||
Gerresheimer AG | 80,939 | 9,105,860 | ||
Inari Medical, Inc. (a) | 93,221 | 5,419,869 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 208,685 | 2,593,955 | ||
OptiNose, Inc. (a) | 581,679 | 715,465 | ||
Outset Medical, Inc. (a) | 98,311 | 2,150,062 | ||
PROCEPT BioRobotics Corp. (a) | 129,781 | 4,587,758 | ||
Shockwave Medical, Inc. (a) | 27,033 | 7,715,489 | ||
Silk Road Medical, Inc. (a) | 95,382 | 3,098,961 | ||
$55,528,373 | ||||
Oil Services – 4.1% | ||||
Cactus, Inc., “A” | 199,963 | $ 8,462,434 | ||
ChampionX Corp. | 442,517 | 13,735,728 | ||
TechnipFMC PLC (a) | 403,571 | 6,707,350 | ||
$28,905,512 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Pharmaceuticals – 3.3% | ||||
ACELYRIN, Inc. (a) | 122,585 | $ 2,562,026 | ||
Amicus Therapeutics, Inc. (a) | 284,653 | 3,575,242 | ||
Annexon, Inc. (a) | 157,851 | 555,636 | ||
Collegium Pharmaceutical, Inc. (a) | 128,893 | 2,769,911 | ||
Harmony Biosciences Holdings (a) | 97,099 | 3,416,914 | ||
Kymera Therapeutics, Inc. (a) | 64,550 | 1,484,004 | ||
Legend Biotech Corp., ADR (a) | 49,816 | 3,438,798 | ||
Neurocrine Biosciences, Inc. (a) | 32,117 | 3,028,633 | ||
SpringWorks Therapeutics, Inc. (a) | 92,209 | 2,417,720 | ||
$23,248,884 | ||||
Pollution Control – 2.5% | ||||
GFL Environmental, Inc. | 462,784 | $ 17,956,019 | ||
Real Estate – 1.7% | ||||
STAG Industrial, Inc., REIT | 329,699 | $ 11,829,600 | ||
Restaurants – 1.3% | ||||
U.S. Foods Holding Corp. (a) | 203,512 | $ 8,954,528 | ||
Specialty Chemicals – 1.7% | ||||
Axalta Coating Systems Ltd. (a) | 373,891 | $ 12,267,364 | ||
Specialty Stores – 1.5% | ||||
ACV Auctions, Inc. (a) | 300,716 | $ 5,193,365 | ||
Petco Health & Wellness Co., Inc. (a) | 624,902 | 5,561,628 | ||
$10,754,993 | ||||
Trucking – 2.4% | ||||
Knight-Swift Transportation Holdings, Inc. | 157,853 | $ 8,770,313 | ||
XPO Logistics, Inc. (a) | 143,257 | 8,452,163 | ||
$17,222,476 | ||||
Total Common Stocks (Identified Cost, $633,374,815) | $673,172,664 |
Strike Price | First Exercise | |||
Warrants – 0.0% | ||||
Medical Equipment – 0.0% | ||||
OptiNose, Inc. (1 share for 1 warrant, Expiration 11/23/27) (a) (Identified Cost, $1,866) | $ 2.57 | 11/23/22 | 186,662 | $ 0 |
Investment Companies (h) – 5.4% | ||||
Money Market Funds – 5.4% | ||||
MFS Institutional Money Market Portfolio, 5.04% (v) (Identified Cost, $38,172,482) | 38,173,713 | $ 38,181,347 | ||
Collateral for Securities Loaned – 0.2% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio, 5.11% (j) (Identified Cost, $1,437,100) | 1,437,100 | $ 1,437,100 | ||
Other Assets, Less Liabilities – (0.7)% | (5,137,847) | |||
Net Assets – 100.0% | $707,653,264 |
(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 $38,181,347 and $674,609,764, respectively. | |||
(j) | The rate quoted is the annualized seven-day yield of the fund at period end. | |||
(l) | A portion of this security is on loan. See Note 2 for additional information. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/23Assets | |
Investments in unaffiliated issuers, at value, including $1,448,129 of securities on loan (identified cost, $634,813,781) | $674,609,764 |
Investments in affiliated issuers, at value (identified cost, $38,172,482) | 38,181,347 |
Foreign currency, at value (identified cost, $5,152) | 5,187 |
Receivables for | |
Investments sold | 3,836,607 |
Fund shares sold | 307,759 |
Interest and dividends | 261,882 |
Receivable from investment adviser | 426 |
Other assets | 1,414 |
Total assets | $717,204,386 |
Liabilities | |
Payables for | |
Investments purchased | $7,349,173 |
Fund shares reacquired | 604,292 |
Collateral for securities loaned, at value (c) | 1,437,100 |
Payable to affiliates | |
Administrative services fee | 604 |
Shareholder servicing costs | 602 |
Distribution and/or service fees | 5,442 |
Accrued expenses and other liabilities | 153,909 |
Total liabilities | $9,551,122 |
Net assets | $707,653,264 |
Net assets consist of | |
Paid-in capital | $815,376,760 |
Total distributable earnings (loss) | (107,723,496) |
Net assets | $707,653,264 |
Shares of beneficial interest outstanding | 65,478,932 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $304,719,517 | 24,315,174 | $12.53 |
Service Class | 402,933,747 | 41,163,758 | 9.79 |
(c) | Non-cash collateral is not included. |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/23 | |
Net investment income (loss) | |
Income | |
Dividends | $2,142,558 |
Dividends from affiliated issuers | 786,641 |
Other | 32,660 |
Income on securities loaned | 11,740 |
Foreign taxes withheld | (60,894) |
Total investment income | $2,912,705 |
Expenses | |
Management fee | $3,086,884 |
Distribution and/or service fees | 487,336 |
Shareholder servicing costs | 7,894 |
Administrative services fee | 55,201 |
Independent Trustees' compensation | 6,473 |
Custodian fee | 18,702 |
Shareholder communications | 20,269 |
Audit and tax fees | 34,432 |
Legal fees | 1,649 |
Miscellaneous | 15,145 |
Total expenses | $3,733,985 |
Reduction of expenses by investment adviser | (260,022) |
Net expenses | $3,473,963 |
Net investment income (loss) | $(561,258) |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $(46,169,252) |
Affiliated issuers | 4,498 |
Foreign currency | (477) |
Net realized gain (loss) | $(46,165,231) |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $117,033,258 |
Affiliated issuers | (1,203) |
Translation of assets and liabilities in foreign currencies | 3,847 |
Net unrealized gain (loss) | $117,035,902 |
Net realized and unrealized gain (loss) | $70,870,671 |
Change in net assets from operations | $70,309,413 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/23 (unaudited) | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $(561,258) | $(2,757,964) |
Net realized gain (loss) | (46,165,231) | (88,725,335) |
Net unrealized gain (loss) | 117,035,902 | (207,358,071) |
Change in net assets from operations | $70,309,413 | $(298,841,370) |
Total distributions to shareholders | $— | $(245,542,542) |
Change in net assets from fund share transactions | $(24,004,905) | $200,448,615 |
Total change in net assets | $46,304,508 | $(343,935,297) |
Net assets | ||
At beginning of period | 661,348,756 | 1,005,284,053 |
At end of period | $707,653,264 | $661,348,756 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $11.31 | $23.30 | $26.96 | $20.28 | $17.46 | $20.10 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.00)(w) | $(0.04) | $(0.11) | $(0.06) | $(0.07) | $(0.09) |
Net realized and unrealized gain (loss) | 1.22(g) | (6.56) | 0.92 | 8.84 | 6.89 | 0.35 |
Total from investment operations | $1.22 | $(6.60) | $0.81 | $8.78 | $6.82 | $0.26 |
Less distributions declared to shareholders | ||||||
From net realized gain | $— | $(5.39) | $(4.47) | $(2.10) | $(4.00) | $(2.90) |
Net asset value, end of period (x) | $12.53 | $11.31 | $23.30 | $26.96 | $20.28 | $17.46 |
Total return (%) (k)(r)(s)(x) | 10.79(n) | (29.76) | 1.80 | 45.89 | 41.70 | (1.48) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.95(a) | 0.95 | 0.94 | 0.95 | 0.95 | 0.96 |
Expenses after expense reductions | 0.87(a) | 0.87 | 0.87 | 0.91 | 0.94 | 0.94 |
Net investment income (loss) | (0.02)(a)(l) | (0.23) | (0.42) | (0.30) | (0.33) | (0.43) |
Portfolio turnover | 35(n) | 48 | 79 | 80 | 54 | 71 |
Net assets at end of period (000 omitted) | $304,720 | $286,747 | $433,168 | $465,663 | $343,133 | $272,039 |
Service Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $8.84 | $19.84 | $23.61 | $18.02 | $15.91 | $18.57 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $(0.01) | $(0.06) | $(0.16) | $(0.10) | $(0.11) | $(0.13) |
Net realized and unrealized gain (loss) | 0.96(g) | (5.55) | 0.86 | 7.79 | 6.22 | 0.37 |
Total from investment operations | $0.95 | $(5.61) | $0.70 | $7.69 | $6.11 | $0.24 |
Less distributions declared to shareholders | ||||||
From net realized gain | $— | $(5.39) | $(4.47) | $(2.10) | $(4.00) | $(2.90) |
Net asset value, end of period (x) | $9.79 | $8.84 | $19.84 | $23.61 | $18.02 | $15.91 |
Total return (%) (k)(r)(s)(x) | 10.75(n) | (29.99) | 1.57 | 45.58 | 41.27 | (1.72) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.20(a) | 1.20 | 1.19 | 1.20 | 1.20 | 1.21 |
Expenses after expense reductions | 1.12(a) | 1.12 | 1.12 | 1.16 | 1.19 | 1.19 |
Net investment income (loss) | (0.27)(a)(l) | (0.48) | (0.66) | (0.56) | (0.58) | (0.68) |
Portfolio turnover | 35(n) | 48 | 79 | 80 | 54 | 71 |
Net assets at end of period (000 omitted) | $402,934 | $374,602 | $572,116 | $584,928 | $472,393 | $358,912 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(g) | The per share amount varies from the net realized and unrealized gain/loss for the period because of the timing of sales of fund shares and the per share amount of realized and unrealized gains and losses at such time. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(l) | Recognition of net investment income by the fund may be affected by the timing of the declaration of dividends by companies in which the fund invests and the actual annual net investment income ratio may differ. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(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 | $673,172,664 | $0 | $— | $673,172,664 |
Mutual Funds | 39,618,447 | — | — | 39,618,447 |
Total | $712,791,111 | $0 | $— | $712,791,111 |
Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $79,285,102 |
Long-term capital gains | 166,257,440 |
Total distributions | $245,542,542 |
As of 6/30/23 | |
Cost of investments | $692,699,602 |
Gross appreciation | 134,127,824 |
Gross depreciation | (114,036,315) |
Net unrealized appreciation (depreciation) | $20,091,509 |
As of 12/31/22 | |
Capital loss carryforwards | (81,431,515) |
Other temporary differences | (7,578) |
Net unrealized appreciation (depreciation) | (96,593,816) |
Short-Term | $(58,685,511) |
Long-Term | (22,746,004) |
Total | $(81,431,515) |
Six months ended 6/30/23 | Year ended 12/31/22 | ||
Initial Class | $— | $97,259,181 | |
Service Class | — | 148,283,361 | |
Total | $— | $245,542,542 |
Up to $1 billion | 0.90% |
In excess of $1 billion | 0.80% |
Six months ended 6/30/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 939,916 | $11,354,183 | 2,032,873 | $34,222,306 | |
Service Class | 1,705,723 | 16,020,495 | 11,519,641 | 168,576,091 | |
2,645,639 | $27,374,678 | 13,552,514 | $202,798,397 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 8,064,609 | $97,259,181 | |
Service Class | — | — | 15,707,983 | 148,283,361 | |
— | $— | 23,772,592 | $245,542,542 | ||
Shares reacquired | |||||
Initial Class | (1,984,360) | $(23,954,955) | (3,327,692) | $(53,400,187) | |
Service Class | (2,904,099) | (27,424,628) | (13,705,736) | (194,492,137) | |
(4,888,459) | $(51,379,583) | (17,033,428) | $(247,892,324) |
Six months ended 6/30/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Net change | |||||
Initial Class | (1,044,444) | $(12,600,772) | 6,769,790 | $78,081,300 | |
Service Class | (1,198,376) | (11,404,133) | 13,521,888 | 122,367,315 | |
(2,242,820) | $(24,004,905) | 20,291,678 | $200,448,615 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $29,980,397 | $96,459,975 | $88,262,320 | $4,498 | $(1,203) | $38,181,347 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $786,641 | $— |
1 | |
2 | |
3 | |
8 | |
9 | |
10 | |
11 | |
13 | |
19 | |
20 | |
20 | |
20 | |
20 |
Microsoft Corp. | 8.9% |
Alphabet, Inc., “A” | 4.1% |
Apple, Inc. | 4.0% |
Amazon.com, Inc. | 3.7% |
Visa, Inc., “A” | 2.7% |
JPMorgan Chase & Co. | 1.9% |
Accenture PLC, “A” | 1.7% |
Salesforce, Inc. | 1.6% |
ConocoPhillips | 1.5% |
NVIDIA Corp. | 1.5% |
Technology | 34.1% |
Health Care | 14.1% |
Capital Goods | 13.1% |
Financial Services | 12.9% |
Consumer Cyclicals | 11.5% |
Energy | 6.9% |
Consumer Staples | 5.0% |
Telecommunications/Cable Television (s) | 1.9% |
(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, 2023 through June 30, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/23 | Ending Account Value 6/30/23 | Expenses Paid During Period (p) 1/01/23-6/30/23 | |
Initial Class | Actual | 0.79% | $1,000.00 | $1,129.78 | $4.17 |
Hypothetical (h) | 0.79% | $1,000.00 | $1,020.88 | $3.96 | |
Service Class | Actual | 1.04% | $1,000.00 | $1,128.31 | $5.49 |
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 – 99.9% | ||||
Aerospace & Defense – 4.2% | ||||
Boeing Co. (a) | 25,892 | $ 5,467,355 | ||
General Dynamics Corp. | 19,110 | 4,111,517 | ||
Honeywell International, Inc. | 37,729 | 7,828,767 | ||
Howmet Aerospace, Inc. | 93,840 | 4,650,710 | ||
Leidos Holdings, Inc. | 29,354 | 2,597,242 | ||
Raytheon Technologies Corp. | 55,642 | 5,450,690 | ||
$30,106,281 | ||||
Alcoholic Beverages – 0.6% | ||||
Constellation Brands, Inc., “A” | 16,816 | $ 4,138,922 | ||
Apparel Manufacturers – 0.8% | ||||
NIKE, Inc., “B” | 49,645 | $ 5,479,319 | ||
Automotive – 0.3% | ||||
Aptiv PLC (a) | 24,536 | $ 2,504,880 | ||
Broadcasting – 0.6% | ||||
Walt Disney Co. (a) | 51,219 | $ 4,572,832 | ||
Brokerage & Asset Managers – 1.6% | ||||
Charles Schwab Corp. | 120,243 | $ 6,815,373 | ||
CME Group, Inc. | 26,529 | 4,915,559 | ||
$11,730,932 | ||||
Business Services – 2.4% | ||||
Accenture PLC, “A” | 39,068 | $ 12,055,603 | ||
Equifax, Inc. | 11,113 | 2,614,889 | ||
Tyler Technologies, Inc. (a) | 5,667 | 2,360,136 | ||
$17,030,628 | ||||
Cable TV – 0.7% | ||||
Cable One, Inc. | 7,533 | $ 4,949,784 | ||
Computer Software – 14.1% | ||||
Adobe Systems, Inc. (a) | 13,798 | $ 6,747,084 | ||
Black Knight, Inc. (a) | 69,465 | 4,149,144 | ||
Cadence Design Systems, Inc. (a) | 37,294 | 8,746,189 | ||
Microsoft Corp. (s) | 187,879 | 63,980,315 | ||
NICE Systems Ltd., ADR (a) | 16,228 | 3,351,082 | ||
Palo Alto Networks, Inc. (a) | 13,218 | 3,377,331 | ||
Salesforce, Inc. (a) | 55,185 | 11,658,383 | ||
$102,009,528 | ||||
Computer Software - Systems – 5.7% | ||||
Apple, Inc. (s) | 149,616 | $ 29,021,015 | ||
Constellation Software, Inc. | 3,031 | 6,279,953 | ||
ServiceNow, Inc. (a) | 10,403 | 5,846,174 | ||
$41,147,142 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Construction – 2.5% | ||||
AZEK Co., Inc. (a) | 96,049 | $ 2,909,324 | ||
Masco Corp. | 71,822 | 4,121,146 | ||
Sherwin-Williams Co. | 18,501 | 4,912,386 | ||
Summit Materials, Inc., “A” (a) | 52,481 | 1,986,406 | ||
Vulcan Materials Co. | 18,274 | 4,119,691 | ||
$18,048,953 | ||||
Consumer Products – 1.3% | ||||
Colgate-Palmolive Co. | 64,380 | $ 4,959,835 | ||
International Flavors & Fragrances, Inc. | 29,665 | 2,361,037 | ||
Kenvue, Inc. (a) | 85,735 | 2,265,119 | ||
$9,585,991 | ||||
Consumer Services – 0.4% | ||||
Bright Horizons Family Solutions, Inc. (a) | 34,967 | $ 3,232,699 | ||
Electrical Equipment – 1.5% | ||||
Johnson Controls International PLC | 102,131 | $ 6,959,206 | ||
TE Connectivity Ltd. | 27,299 | 3,826,228 | ||
$10,785,434 | ||||
Electronics – 5.3% | ||||
Applied Materials, Inc. | 60,206 | $ 8,702,175 | ||
Lam Research Corp. | 9,070 | 5,830,740 | ||
Marvell Technology, Inc. | 74,125 | 4,431,193 | ||
NVIDIA Corp. | 24,853 | 10,513,316 | ||
NXP Semiconductors N.V. | 42,033 | 8,603,314 | ||
$38,080,738 | ||||
Energy - Independent – 3.5% | ||||
ConocoPhillips | 106,055 | $ 10,988,359 | ||
Diamondback Energy, Inc. | 29,081 | 3,820,080 | ||
Hess Corp. | 48,832 | 6,638,710 | ||
Valero Energy Corp. | 29,363 | 3,444,280 | ||
$24,891,429 | ||||
Food & Beverages – 2.4% | ||||
Hostess Brands, Inc. (a) | 56,797 | $ 1,438,100 | ||
Mondelez International, Inc. | 85,172 | 6,212,446 | ||
Oatly Group AB, ADR (a)(l) | 620,805 | 1,272,650 | ||
PepsiCo, Inc. | 46,944 | 8,694,968 | ||
$17,618,164 | ||||
Gaming & Lodging – 0.5% | ||||
Marriott International, Inc., “A” | 18,143 | $ 3,332,688 | ||
General Merchandise – 1.2% | ||||
Dollar General Corp. | 16,774 | $ 2,847,890 | ||
Dollar Tree, Inc. (a) | 21,860 | 3,136,910 | ||
Five Below, Inc. (a) | 15,177 | 2,982,887 | ||
$8,967,687 | ||||
Health Maintenance Organizations – 1.2% | ||||
Cigna Group | 31,342 | $ 8,794,565 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Insurance – 2.7% | ||||
Aon PLC | 24,928 | $ 8,605,146 | ||
Chubb Ltd. | 36,768 | 7,080,046 | ||
Willis Towers Watson PLC | 17,351 | 4,086,160 | ||
$19,771,352 | ||||
Internet – 5.8% | ||||
Alphabet, Inc., “A” (a)(s) | 247,959 | $ 29,680,692 | ||
Alphabet, Inc., “C” (a) | 64,211 | 7,767,605 | ||
Gartner, Inc. (a) | 11,961 | 4,190,058 | ||
$41,638,355 | ||||
Leisure & Toys – 0.7% | ||||
Electronic Arts, Inc. | 37,892 | $ 4,914,592 | ||
Machinery & Tools – 1.9% | ||||
Eaton Corp. PLC | 13,724 | $ 2,759,896 | ||
Ingersoll Rand, Inc. | 42,486 | 2,776,885 | ||
Regal Rexnord Corp. | 17,485 | 2,690,942 | ||
Wabtec Corp. | 48,925 | 5,365,605 | ||
$13,593,328 | ||||
Major Banks – 4.1% | ||||
JPMorgan Chase & Co. (s) | 94,935 | $ 13,807,347 | ||
Morgan Stanley | 78,926 | 6,740,280 | ||
PNC Financial Services Group, Inc. | 31,988 | 4,028,889 | ||
Wells Fargo & Co. | 120,462 | 5,141,318 | ||
$29,717,834 | ||||
Medical & Health Technology & Services – 1.5% | ||||
ICON PLC (a) | 20,758 | $ 5,193,651 | ||
McKesson Corp. | 13,444 | 5,744,756 | ||
$10,938,407 | ||||
Medical Equipment – 5.3% | ||||
Agilent Technologies, Inc. | 50,408 | $ 6,061,562 | ||
Becton, Dickinson and Co. | 21,095 | 5,569,291 | ||
Boston Scientific Corp. (a) | 134,590 | 7,279,973 | ||
Envista Holdings Corp. (a) | 89,760 | 3,037,478 | ||
Maravai Lifesciences Holdings, Inc., “A” (a) | 104,127 | 1,294,299 | ||
Medtronic PLC | 93,706 | 8,255,498 | ||
STERIS PLC | 30,168 | 6,787,197 | ||
$38,285,298 | ||||
Network & Telecom – 0.8% | ||||
Equinix, Inc., REIT | 7,278 | $ 5,705,515 | ||
Oil Services – 0.4% | ||||
Schlumberger Ltd. | 63,938 | $ 3,140,635 | ||
Other Banks & Diversified Financials – 3.7% | ||||
Moody's Corp. | 11,197 | $ 3,893,421 | ||
Northern Trust Corp. | 40,918 | 3,033,661 | ||
Visa, Inc., “A” | 83,076 | 19,728,888 | ||
$26,655,970 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Pharmaceuticals – 6.0% | ||||
Eli Lilly & Co. | 20,118 | $ 9,434,940 | ||
Johnson & Johnson | 40,501 | 6,703,725 | ||
Merck & Co., Inc. | 75,189 | 8,676,059 | ||
Pfizer, Inc. | 175,138 | 6,424,062 | ||
Vertex Pharmaceuticals, Inc. (a) | 22,778 | 8,015,806 | ||
Zoetis, Inc. | 24,652 | 4,245,321 | ||
$43,499,913 | ||||
Railroad & Shipping – 1.2% | ||||
Canadian Pacific Kansas City Ltd. | 77,862 | $ 6,288,914 | ||
CSX Corp. | 61,328 | 2,091,285 | ||
$8,380,199 | ||||
Real Estate – 0.8% | ||||
Extra Space Storage, Inc., REIT | 30,298 | $ 4,509,857 | ||
Jones Lang LaSalle, Inc. (a) | 7,803 | 1,215,708 | ||
$5,725,565 | ||||
Restaurants – 1.2% | ||||
Starbucks Corp. | 55,359 | $ 5,483,863 | ||
Wendy's Co. | 129,087 | 2,807,642 | ||
$8,291,505 | ||||
Specialty Chemicals – 1.6% | ||||
Air Products & Chemicals, Inc. | 18,845 | $ 5,644,643 | ||
DuPont de Nemours, Inc. | 79,975 | 5,713,414 | ||
$11,358,057 | ||||
Specialty Stores – 6.1% | ||||
Amazon.com, Inc. (a)(s) | 202,928 | $ 26,453,694 | ||
Home Depot, Inc. | 30,345 | 9,426,371 | ||
Ross Stores, Inc. | 41,322 | 4,633,436 | ||
Target Corp. | 28,176 | 3,716,414 | ||
$44,229,915 | ||||
Telecommunications - Wireless – 1.6% | ||||
SBA Communications Corp., REIT | 43,704 | $ 10,128,839 | ||
T-Mobile US, Inc. (a) | 11,980 | 1,664,022 | ||
$11,792,861 | ||||
Tobacco – 0.7% | ||||
Philip Morris International, Inc. | 48,049 | $ 4,690,543 | ||
Utilities - Electric Power – 3.0% | ||||
Alliant Energy Corp. | 72,434 | $ 3,801,336 | ||
Duke Energy Corp. | 52,317 | 4,694,928 | ||
NextEra Energy, Inc. | 67,019 | 4,972,810 | ||
PG&E Corp. (a) | 281,434 | 4,863,179 | ||
PPL Corp. | 117,876 | 3,118,999 | ||
$21,451,252 | ||||
Total Common Stocks (Identified Cost, $457,839,374) | $720,789,692 |
Issuer | Shares/Par | Value ($) | ||
Investment Companies (h) – 0.7% | ||||
Money Market Funds – 0.7% | ||||
MFS Institutional Money Market Portfolio, 5.04% (v) (Identified Cost, $4,626,525) | 4,626,591 | $ 4,627,516 | ||
Collateral for Securities Loaned – 0.0% | ||||
State Street Navigator Securities Lending Government Money Market Portfolio, 5.11% (j) (Identified Cost, $223,182) | 223,182 | $ 223,182 | ||
Securities Sold Short – (0.4)% | ||||
Telecommunications - Wireless – (0.4)% | ||||
Crown Castle, Inc., REIT (Proceeds Received, $2,964,530) | (23,778) | $ (2,709,265) | ||
Other Assets, Less Liabilities – (0.2)% | (1,682,390) | |||
Net Assets – 100.0% | $721,248,735 |
(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 $4,627,516 and $721,012,874, 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. | |||
(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 6/30/23Assets | |
Investments in unaffiliated issuers, at value, including $203,344 of securities on loan (identified cost, $458,062,556) | $721,012,874 |
Investments in affiliated issuers, at value (identified cost, $4,626,525) | 4,627,516 |
Deposits with brokers for | |
Securities sold short | 10,126 |
Receivables for | |
Investments sold | 3,811,796 |
Fund shares sold | 29,071 |
Interest and dividends | 652,957 |
Other assets | 1,463 |
Total assets | $730,145,803 |
Liabilities | |
Payables for | |
Securities sold short, at value (proceeds received, $2,964,530) | $2,709,265 |
Investments purchased | 4,930,657 |
Fund shares reacquired | 904,431 |
Collateral for securities loaned, at value | 223,182 |
Payable to affiliates | |
Investment adviser | 26,284 |
Administrative services fee | 615 |
Shareholder servicing costs | 330 |
Distribution and/or service fees | 4,186 |
Accrued expenses and other liabilities | 98,118 |
Total liabilities | $8,897,068 |
Net assets | $721,248,735 |
Net assets consist of | |
Paid-in capital | $396,124,422 |
Total distributable earnings (loss) | 325,124,313 |
Net assets | $721,248,735 |
Shares of beneficial interest outstanding | 23,220,811 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $411,604,306 | 13,132,974 | $31.34 |
Service Class | 309,644,429 | 10,087,837 | 30.69 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/23 | |
Net investment income (loss) | |
Income | |
Dividends | $5,151,103 |
Dividends from affiliated issuers | 191,222 |
Other | 5,468 |
Income on securities loaned | 1,803 |
Foreign taxes withheld | (36,943) |
Total investment income | $5,312,653 |
Expenses | |
Management fee | $2,649,396 |
Distribution and/or service fees | 369,087 |
Shareholder servicing costs | 5,466 |
Administrative services fee | 56,696 |
Independent Trustees' compensation | 6,699 |
Custodian fee | 18,399 |
Shareholder communications | 6,366 |
Audit and tax fees | 35,220 |
Legal fees | 1,608 |
Dividend and interest expense on securities sold short | 81,125 |
Interest expense and fees | 1,883 |
Miscellaneous | 13,185 |
Total expenses | $3,245,130 |
Reduction of expenses by investment adviser | (70,693) |
Net expenses | $3,174,437 |
Net investment income (loss) | $2,138,216 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $21,498,967 |
Affiliated issuers | 235 |
Foreign currency | 462 |
Net realized gain (loss) | $21,499,664 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $62,097,188 |
Affiliated issuers | (902) |
Securities sold short | 515,983 |
Translation of assets and liabilities in foreign currencies | (20) |
Net unrealized gain (loss) | $62,612,249 |
Net realized and unrealized gain (loss) | $84,111,913 |
Change in net assets from operations | $86,250,129 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/23 (unaudited) | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $2,138,216 | $3,931,589 |
Net realized gain (loss) | 21,499,664 | 35,481,317 |
Net unrealized gain (loss) | 62,612,249 | (176,047,562) |
Change in net assets from operations | $86,250,129 | $(136,634,656) |
Total distributions to shareholders | $— | $(99,101,437) |
Change in net assets from fund share transactions | $(60,601,205) | $149,469,874 |
Total change in net assets | $25,648,924 | $(86,266,219) |
Net assets | ||
At beginning of period | 695,599,811 | 781,866,030 |
At end of period | $721,248,735 | $695,599,811 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $27.74 | $38.59 | $32.87 | $29.49 | $24.93 | $29.50 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.10 | $0.21 | $0.13 | $0.18 | $0.23 | $0.26 |
Net realized and unrealized gain (loss) | 3.50 | (6.62) | 7.92 | 4.62 | 7.66 | (1.04) |
Total from investment operations | $3.60 | $(6.41) | $8.05 | $4.80 | $7.89 | $(0.78) |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.16) | $(0.20) | $(0.22) | $(0.24) | $(0.22) |
From net realized gain | — | (4.28) | (2.13) | (1.20) | (3.09) | (3.57) |
Total distributions declared to shareholders | $— | $(4.44) | $(2.33) | $(1.42) | $(3.33) | $(3.79) |
Net asset value, end of period (x) | $31.34 | $27.74 | $38.59 | $32.87 | $29.49 | $24.93 |
Total return (%) (k)(r)(s)(x) | 12.98(n) | (17.21) | 24.80 | 16.59 | 32.95 | (4.37) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.81(a) | 0.82 | 0.80 | 0.82 | 0.83 | 0.82 |
Expenses after expense reductions | 0.79(a) | 0.79 | 0.78 | 0.79 | 0.81 | 0.81 |
Net investment income (loss) | 0.70(a) | 0.68 | 0.35 | 0.62 | 0.82 | 0.88 |
Portfolio turnover | 12(n) | 24 | 19 | 39 | 35 | 31 |
Net assets at end of period (000 omitted) | $411,604 | $405,178 | $384,928 | $372,405 | $361,842 | $319,422 |
Supplemental Ratios (%): | ||||||
Ratios of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees | 0.77(a) | 0.77 | 0.77 | 0.77 | 0.78 | 0.79 |
Service Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $27.20 | $37.92 | $32.34 | $29.05 | $24.61 | $29.17 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.07 | $0.12 | $0.04 | $0.11 | $0.16 | $0.18 |
Net realized and unrealized gain (loss) | 3.42 | (6.50) | 7.79 | 4.54 | 7.55 | (1.03) |
Total from investment operations | $3.49 | $(6.38) | $7.83 | $4.65 | $7.71 | $(0.85) |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.06) | $(0.12) | $(0.16) | $(0.18) | $(0.14) |
From net realized gain | — | (4.28) | (2.13) | (1.20) | (3.09) | (3.57) |
Total distributions declared to shareholders | $— | $(4.34) | $(2.25) | $(1.36) | $(3.27) | $(3.71) |
Net asset value, end of period (x) | $30.69 | $27.20 | $37.92 | $32.34 | $29.05 | $24.61 |
Total return (%) (k)(r)(s)(x) | 12.83(n) | (17.43) | 24.51 | 16.31 | 32.60 | (4.62) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.06(a) | 1.07 | 1.05 | 1.07 | 1.08 | 1.07 |
Expenses after expense reductions | 1.04(a) | 1.04 | 1.03 | 1.04 | 1.06 | 1.06 |
Net investment income (loss) | 0.47(a) | 0.39 | 0.10 | 0.37 | 0.57 | 0.63 |
Portfolio turnover | 12(n) | 24 | 19 | 39 | 35 | 31 |
Net assets at end of period (000 omitted) | $309,644 | $290,421 | $396,938 | $375,322 | $319,842 | $215,898 |
Supplemental Ratios (%): | ||||||
Ratios of expenses to average net assets after expense reductions excluding short sale expenses and interest expense and fees | 1.02(a) | 1.02 | 1.02 | 1.02 | 1.03 | 1.04 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(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 | $720,789,692 | $— | $— | $720,789,692 |
Mutual Funds | 4,850,698 | — | — | 4,850,698 |
Total | $725,640,390 | $— | $— | $725,640,390 |
Securities Sold Short | $(2,709,265) | $— | $— | $(2,709,265) |
Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $14,039,255 |
Long-term capital gains | 85,062,182 |
Total distributions | $99,101,437 |
As of 6/30/23 | |
Cost of investments | $462,689,082 |
Gross appreciation | 283,017,567 |
Gross depreciation | (20,066,259) |
Net unrealized appreciation (depreciation) | $262,951,308 |
As of 12/31/22 | |
Undistributed ordinary income | 1,902,699 |
Undistributed long-term capital gain | 38,785,228 |
Other temporary differences | 21 |
Net unrealized appreciation (depreciation) | 198,186,236 |
Six months ended 6/30/23 | Year ended 12/31/22 | ||
Initial Class | $— | $56,469,294 | |
Service Class | — | 42,632,143 | |
Total | $— | $99,101,437 |
Up to $1 billion | 0.75% |
In excess of $1 billion | 0.65% |
Six months ended 6/30/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 494,404 | $14,323,004 | 4,166,754 | $136,162,513 | |
Service Class | 268,243 | 7,660,312 | 546,740 | 17,085,861 | |
762,647 | $21,983,316 | 4,713,494 | $153,248,374 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 1,929,255 | $56,469,294 | |
Service Class | — | — | 1,483,889 | 42,632,143 | |
— | $— | 3,413,144 | $99,101,437 | ||
Shares reacquired | |||||
Initial Class | (1,970,311) | $(57,846,794) | (1,460,747) | $(46,824,246) | |
Service Class | (858,894) | (24,737,727) | (1,820,168) | (56,055,691) | |
(2,829,205) | $(82,584,521) | (3,280,915) | $(102,879,937) |
Six months ended 6/30/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Net change | |||||
Initial Class | (1,475,907) | $(43,523,790) | 4,635,262 | $145,807,561 | |
Service Class | (590,651) | (17,077,415) | 210,461 | 3,662,313 | |
(2,066,558) | $(60,601,205) | 4,845,723 | $149,469,874 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $7,722,089 | $44,846,201 | $47,940,107 | $235 | $(902) | $4,627,516 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $191,222 | $— |
1 | |
3 | |
4 | |
15 | |
16 | |
17 | |
18 | |
20 | |
28 | |
29 | |
29 | |
29 | |
29 |
Investment Grade Corporates | 34.9% |
U.S. Treasury Securities | 24.8% |
Mortgage-Backed Securities | 22.8% |
Collateralized Debt Obligations | 9.0% |
Commercial Mortgage-Backed Securities | 7.4% |
High Yield Corporates | 7.1% |
Municipal Bonds | 2.2% |
Emerging Markets Bonds | 1.3% |
U.S. Government Agencies | 0.8% |
Asset-Backed Securities | 0.8% |
Non-U.S. Government Bonds | 0.3% |
Residential Mortgage-Backed Securities (o) | 0.0% |
AAA | 7.9% |
AA | 4.3% |
A | 13.5% |
BBB | 28.7% |
BB | 6.6% |
B | 1.7% |
CCC | 0.2% |
C (o) | 0.0% |
U.S. Government | 12.5% |
Federal Agencies | 23.6% |
Not Rated | 12.4% |
Cash & Cash Equivalents | 1.0% |
Other (q) | (12.4)% |
Average Duration (d) | 6.2 | |
Average Effective Maturity (m) | 7.7 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 rating 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. The Average Duration calculation reflects the impact of the equivalent exposure of derivative positions, if any. |
(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 feature (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%. |
(q) | For purposes of this presentation, Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions and may be negative. |
(v) | For purposes of this presentation, market value of fixed income and/or equity derivatives, if any, is included in Cash & Cash Equivalents. |
January 1, 2023 through June 30, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/23 | Ending Account Value 6/30/23 | Expenses Paid During Period (p) 1/01/23-6/30/23 | |
Initial Class | Actual | 0.52% | $1,000.00 | $1,030.20 | $2.62 |
Hypothetical (h) | 0.52% | $1,000.00 | $1,022.22 | $2.61 | |
Service Class | Actual | 0.77% | $1,000.00 | $1,029.89 | $3.88 |
Hypothetical (h) | 0.77% | $1,000.00 | $1,020.98 | $3.86 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Bonds – 98.2% | ||||
Aerospace & Defense – 1.1% | ||||
Boeing Co., 2.196%, 2/04/2026 | $ | 6,236,000 | $ 5,723,452 | |
Boeing Co., 5.15%, 5/01/2030 | 1,704,000 | 1,687,557 | ||
Boeing Co., 5.705%, 5/01/2040 | 1,595,000 | 1,591,023 | ||
Boeing Co., 5.805%, 5/01/2050 | 3,159,000 | 3,147,472 | ||
TransDigm, Inc., 4.625%, 1/15/2029 | 5,158,000 | 4,588,338 | ||
$16,737,842 | ||||
Asset-Backed & Securitized – 17.1% | ||||
ACREC 2021-FL1 Ltd., “C”, FLR, 7.308% (LIBOR - 1mo. + 2.15%), 10/16/2036 (n) | $ | 2,546,000 | $ 2,416,347 | |
ACREC 2021-FL1 Ltd., “D”, FLR, 7.808% (LIBOR - 1mo. + 2.65%), 10/16/2036 (n) | 3,070,500 | 2,884,936 | ||
ACRES 2021-FL2 Issuer Ltd., “C”, FLR, 7.866% (LIBOR - 1mo. + 2.65%), 1/15/2037 (n) | 3,129,000 | 2,980,380 | ||
Allegro CLO Ltd., 2014-1RA, “A2”, FLR, 6.861% (LIBOR - 3mo. + 1.6%), 10/21/2028 (n) | 5,554,267 | 5,494,675 | ||
Arbor Realty Trust, Inc., CLO, 2019-FL2, “AS”, FLR, 6.711% (LIBOR - 1mo. + 1.45%), 9/15/2034 (n) | 296,335 | 294,982 | ||
Arbor Realty Trust, Inc., CLO, 2019-FL2, “B”, FLR, 7.011% (LIBOR - 1mo. + 1.75%), 9/15/2034 (n) | 784,500 | 779,707 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “C”, FLR, 7.219% (LIBOR - 1mo. + 2%), 12/15/2035 (n) | 905,000 | 849,816 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “D”, FLR, 8.169% (LIBOR - 1mo. + 2.95%), 12/15/2035 (n) | 831,500 | 791,003 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL2, “B”, FLR, 6.793% (LIBOR - 1mo. + 1.6%), 5/15/2036 (n) | 1,152,500 | 1,090,966 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL3, “C”, FLR, 7.043% (LIBOR - 1mo. + 1.85%), 8/15/2034 (n) | 1,740,000 | 1,619,642 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL3, “D”, FLR, 7.393% (LIBOR - 1mo. + 2.2%), 8/15/2034 (n) | 964,500 | 891,170 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL4, “C”, FLR, 7.493% (LIBOR - 1mo. + 2.3%), 11/15/2036 (n) | 3,443,500 | 3,275,326 | ||
Arbor Realty Trust, Inc., CLO, 2022-FL1, “D”, FLR, 8.066% (SOFR - 30 day + 3%), 1/15/2037 (n) | 9,290,000 | 8,737,454 | ||
AREIT 2019-CRE3 Trust, “B”, FLR, 6.866% (LIBOR - 1mo. + 1.55%), 9/14/2036 (n) | 2,569,500 | 2,424,608 | ||
AREIT 2019-CRE3 Trust, “C”, FLR, 7.216% (SOFR - 1mo. + 2.014%), 9/14/2036 (n) | 2,242,500 | 2,073,489 | ||
AREIT 2019-CRE3 Trust, “D”, FLR, 7.866% (LIBOR - 1mo. + 2.65%), 9/14/2036 (n) | 1,849,000 | 1,670,631 | ||
AREIT 2022-CRE6 Trust, “B”, FLR, 6.916% (SOFR - 30 day + 1.85%), 1/20/2037 (n) | 1,126,000 | 1,068,241 | ||
AREIT 2022-CRE6 Trust, “C”, FLR, 7.216% (SOFR - 30 day + 2.15%), 1/20/2037 (n) | 2,322,000 | 2,168,070 | ||
AREIT 2022-CRE6 Trust, “D”, FLR, 7.916% (SOFR - 30 day + 2.85%), 1/20/2037 (n) | 987,000 | 894,605 | ||
Bayview Commercial Asset Trust, 0%, 12/25/2036 (i)(n) | 63,975 | 6 | ||
Bayview Financial Revolving Mortgage Loan Trust, FLR, 6.777% (LIBOR - 1mo. + 1.6%), 12/28/2040 (n) | 23,774 | 31,580 | ||
BBCMS Mortgage Trust, 2019-C5, “A4”, 3.063%, 11/15/2052 | 2,755,000 | 2,408,444 | ||
BDS 2021-FL7 Ltd., “B”, FLR, 6.656% (LIBOR - 1mo. + 1.5%), 6/16/2036 (n) | 1,259,500 | 1,200,477 | ||
Brazos Securitization LLC, 5.413%, 9/01/2052 (n) | 3,427,000 | 3,503,536 | ||
BSPDF 2021-FL1 Issuer Ltd., “B”, FLR, 6.993% (LIBOR - 1mo. + 1.8%), 10/15/2036 (n) | 4,380,500 | 4,074,929 | ||
BSPRT 2019-FL5 Issuer Ltd., “C”, FLR, 7.193% (LIBOR - 1mo. + 2%), 5/15/2029 (n) | 3,295,000 | 3,208,638 | ||
BSPRT 2021-FL6 Issuer Ltd., “B”, FLR, 6.793% (LIBOR - 1mo. + 1.6%), 3/15/2036 (n) | 3,669,500 | 3,466,294 | ||
BSPRT 2021-FL6 Issuer Ltd., “C”, FLR, 7.243% (LIBOR - 1mo. + 2.05%), 3/15/2036 (n) | 1,288,000 | 1,185,579 | ||
BSPRT 2021-FL7 Issuer Ltd., “C”, FLR, 7.493% (LIBOR - 1mo. + 2.3%), 12/15/2038 (n) | 836,500 | 785,765 | ||
BSPRT 2021-FL7 Issuer Ltd., “D”, FLR, 7.943% (LIBOR - 1mo. + 2.75%), 12/15/2038 (n) | 952,500 | 862,581 | ||
Business Jet Securities LLC, 2020-1A, “A”, 2.981%, 11/15/2035 (n) | 596,584 | 563,645 | ||
Business Jet Securities LLC, 2021-1A, “B”, 2.918%, 4/15/2036 (n) | 391,525 | 346,652 | ||
BXMT 2020-FL2 Ltd., “B”, FLR, 6.616% (LIBOR - 1mo. + 1.4%), 2/15/2038 (n) | 1,731,000 | 1,514,073 | ||
Cantor Commercial Real Estate, 2019-CF2, “A5”, 2.874%, 11/15/2052 | 6,645,635 | 5,551,642 | ||
Capital Automotive, 2020-1A, “A4”, REIT, 3.19%, 2/15/2050 (n) | 2,384,462 | 2,222,145 | ||
CHCP 2021-FL1 Ltd., “B”, FLR, 6.831% (LIBOR - 1mo. + 1.65%), 2/15/2038 (n) | 1,102,500 | 1,051,950 | ||
CHCP 2021-FL1 Ltd., “C”, FLR, 7.281% (LIBOR - 1mo. + 2.1%), 2/15/2038 (n) | 1,249,000 | 1,184,289 | ||
Chesapeake Funding II LLC, 2023-1A, “A1”, 5.65%, 5/15/2035 (n) | 1,346,515 | 1,335,729 | ||
Citigroup Commercial Mortgage Trust, 2014-GC25, “A4”, 3.635%, 10/10/2047 | 3,128,793 | 3,008,320 | ||
Citigroup Commercial Mortgage Trust, 2016-P6, “A5”, 3.72%, 12/10/2049 | 1,754,000 | 1,630,894 | ||
CLNC 2019-FL1 Ltd., “B”, FLR, 7.105% (LIBOR - 1mo. + 1.9%), 8/20/2035 (n) | 1,850,000 | 1,776,457 | ||
CLNC 2019-FL1 Ltd., “C”, FLR, 7.605% (LIBOR - 1mo. + 2.4%), 8/20/2035 (n) | 3,006,500 | 2,871,858 | ||
Commercial Mortgage Trust, 2015-LC21, “A4”, 3.708%, 7/10/2048 | 10,000,000 | 9,518,489 | ||
Commercial Mortgage Trust, 2015-PC1, “A5”, 3.902%, 7/10/2050 | 2,888,848 | 2,760,304 | ||
Credit Acceptance Auto Loan Trust, 2021-3A, “C”, 1.63%, 9/16/2030 (n) | 523,000 | 482,495 | ||
CSAIL Commercial Mortgage Trust, 2015-C2, “A4”, 3.504%, 6/15/2057 | 2,695,346 | 2,564,659 | ||
Cutwater 2015-1A Ltd., “BR”, FLR, 7.06% (LIBOR - 3mo. + 1.8%), 1/15/2029 (n) | 10,770,000 | 10,636,732 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
DT Auto Owner Trust, 2023-1A, “A”, 5.48%, 4/15/2027 (n) | $ | 3,163,215 | $ 3,152,519 | |
GS Mortgage Securities Trust, 2015-GC30, “A4”, 3.382%, 5/10/2050 | 7,904,407 | 7,488,754 | ||
HarbourView CLO VII Ltd., 7RA, “B”, FLR, 6.961% (LIBOR - 3mo. + 1.7%), 7/18/2031 (n) | 6,545,000 | 6,294,470 | ||
JPMBB Commercial Mortgage Securities Trust, 2015-C28, “A4”, 3.227%, 10/15/2048 | 12,188,428 | 11,491,874 | ||
JPMorgan Chase Commercial Mortgage Securities Corp., 5.578%, 7/15/2042 (n) | 9,785 | 7,548 | ||
JPMorgan Mortgage Trust, “A1”, 3.717%, 10/25/2033 | 35,492 | 31,839 | ||
LCCM 2021-FL2 Trust, “C”, FLR, 7.411% (LIBOR - 1mo. + 2.15%), 12/13/2038 (n) | 1,985,500 | 1,808,092 | ||
LoanCore 2018-CRE1 Ltd., “AS”, FLR, 6.693% (LIBOR - 1mo. + 1.5%), 5/15/2028 (n) | 1,645,566 | 1,645,610 | ||
LoanCore 2018-CRE1 Ltd., “C”, FLR, 7.743% (LIBOR - 1mo. + 2.55%), 5/15/2028 (n) | 2,340,000 | 2,290,911 | ||
LoanCore 2018-CRE1 Ltd., “C”, FLR, 7.143% (LIBOR - 1mo. + 1.95%), 4/15/2034 (n) | 1,836,900 | 1,802,998 | ||
LoanCore 2018-CRE3 Ltd., “B”, FLR, 6.793% (LIBOR - 1mo. + 1.6%), 4/15/2034 (n) | 1,873,800 | 1,840,621 | ||
LoanCore 2019-CRE2 Ltd., “D”, FLR, 7.643% (LIBOR - 1mo. + 2.45%), 5/15/2036 (n) | 1,121,500 | 1,034,196 | ||
LoanCore 2019-CRE3 Ltd., “AS”, FLR, 6.563% (LIBOR - 1mo. + 1.37%), 4/15/2034 (n) | 360,401 | 359,806 | ||
LoanCore 2021-CRE5 Ltd., “AS”, FLR, 6.943% (LIBOR - 1mo. + 1.75%), 7/15/2036 (n) | 5,666,000 | 5,301,403 | ||
LoanCore 2021-CRE5 Ltd., “B”, FLR, 7.193% (LIBOR - 1mo. + 2%), 7/15/2036 (n) | 5,318,000 | 4,909,093 | ||
LoanCore 2021-CRE6 Ltd., “B”, FLR, 7.093% (LIBOR - 1mo. + 1.9%), 11/15/2038 (n) | 9,970,000 | 9,347,553 | ||
Madison Park Funding Ltd., 2017- 23A, “CR”, FLR, 7.291% (LIBOR - 3mo. + 2%), 7/27/2031 (n) | 5,894,060 | 5,745,105 | ||
Madison Park Funding XLI Ltd., 2012-A, “B1R”, FLR, 6.622% (LIBOR - 3mo. + 1.35%), 4/22/2027 (n) | 7,430,000 | 7,316,262 | ||
Merrill Lynch Mortgage Investors, Inc., “A”, 4.714%, 5/25/2036 | 45,922 | 44,960 | ||
Merrill Lynch Mortgage Investors, Inc., “A5”, 3.576%, 4/25/2035 | 69,218 | 60,864 | ||
MF1 2020-FL4 Ltd., “AS”, FLR, 7.361% (LIBOR - 1mo. + 2.1%), 11/15/2035 (n) | 2,602,500 | 2,559,559 | ||
MF1 2021-FL5 Ltd., “C”, FLR, 6.961% (LIBOR - 1mo. + 1.7%), 7/15/2036 (n) | 2,589,000 | 2,428,943 | ||
MF1 2022-FL8 Ltd., “C”, FLR, 7.266% (SOFR - 30 day + 2.2%), 2/19/2037 (n) | 2,433,741 | 2,271,923 | ||
MF1 2022-FL8 Ltd., “D”, FLR, 7.716% (SOFR - 30 day + 2.65%), 2/19/2037 (n) | 1,407,473 | 1,307,249 | ||
Neuberger Berman CLO Ltd., 2013-15A, “CR2”, FLR, 7.11% (LIBOR - 3mo. + 1.85%), 10/15/2029 (n) | 7,481,614 | 7,140,692 | ||
Oaktree CLO 2019-1A Ltd., “BR”, FLR, 7.023% (LIBOR - 3mo. + 1.75%), 4/22/2030 (n) | 5,000,000 | 4,850,825 | ||
Oaktree CLO 2019-1A Ltd., “CR”, FLR, 7.622% (LIBOR - 3mo. + 2.35%), 4/22/2030 (n) | 5,744,568 | 5,508,076 | ||
Palmer Square Loan Funding 2020-1A Ltd., “A2”, FLR, 6.729% (LIBOR - 3mo. + 1.35%), 2/20/2028 (n) | 3,930,000 | 3,893,294 | ||
Palmer Square Loan Funding 2020-1A Ltd., “B”, FLR, 7.279% (LIBOR - 3mo. + 1.9%), 2/20/2028 (n) | 3,453,628 | 3,421,388 | ||
Parallel 2015-1A Ltd., “C1R”, FLR, 7% (LIBOR - 3mo. + 1.75%), 7/20/2027 (n) | 1,233,002 | 1,224,744 | ||
Parallel 2015-1A Ltd., “C2R”, FLR, 7% (LIBOR - 3mo. + 1.75%), 7/20/2027 (n) | 1,328,413 | 1,317,131 | ||
PFP III 2021-7 Ltd., “B”, FLR, 6.558% (LIBOR - 1mo. + 1.4%), 4/14/2038 (n) | 935,953 | 882,955 | ||
PFP III 2021-7 Ltd., “C”, FLR, 6.808% (LIBOR - 1mo. + 1.65%), 4/14/2038 (n) | 1,640,418 | 1,516,945 | ||
PFP III 2021-8 Ltd., “D”, FLR, 7.308% (LIBOR - 1mo. + 2.15%), 8/09/2037 (n) | 3,737,500 | 3,467,498 | ||
Preferred Term Securities XIX Ltd., CDO, FLR, 5.902% (LIBOR - 3mo. + 0.35%), 12/22/2035 (n) | 129,037 | 114,843 | ||
Race Point CLO Ltd., 2013-8A, “AR-2”, FLR, 6.419% (LIBOR - 3mo. + 1.04%), 2/20/2030 (n) | 3,223,475 | 3,190,002 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL7, “C”, FLR, 7.35% (LIBOR - 1mo. + 2.2%), 11/25/2036 (n) | 1,340,000 | 1,258,857 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL7, “D”, FLR, 8.1% (LIBOR - 1mo. + 2.95%), 11/25/2036 (n) | 1,575,000 | 1,414,542 | ||
Residential Funding Mortgage Securities, Inc., FGIC, 4.223%, 12/25/2035 | 2,975 | 2,954 | ||
Starwood Commercial Mortgage, 2021-FL2, “C”, FLR, 7.258% (LIBOR - 1mo. + 2.1%), 4/18/2038 (n) | 2,027,000 | 1,800,432 | ||
Starwood Commercial Mortgage, 2022-FL3, “B”, FLR, 7.016% (SOFR - 30 day + 1.95%), 11/15/2038 (n) | 1,391,000 | 1,326,389 | ||
Starwood Commercial Mortgage, 2022-FL3, “C”, FLR, 7.266% (SOFR - 30 day + 2.2%), 11/15/2038 (n) | 2,632,000 | 2,459,838 | ||
Toyota Lease Owner Trust, 2023-A, “A2”, 5.3%, 8/20/2025 (n) | 1,174,000 | 1,168,468 | ||
UBS Commercial Mortgage Trust, 2017-C8, “A4”, 3.983%, 2/15/2051 | 5,865,766 | 5,400,621 | ||
Voya CLO 2012-4A Ltd., “A2R3”, FLR, 6.698% (LIBOR - 3mo. + 1.45%), 10/15/2030 (n) | 1,957,793 | 1,887,763 | ||
Voya CLO 2012-4A Ltd., “BR3”, FLR, 7.197% (LIBOR - 3mo. + 1.95%), 10/15/2030 (n) | 828,265 | 783,293 | ||
Voya CLO 2012-4A Ltd., “C1R3”, FLR, 8.547% (LIBOR - 3mo. + 3.3%), 10/15/2030 (n) | 1,187,823 | 1,079,994 | ||
Wells Fargo Commercial Mortgage Trust, 2016-LC25, “A4”, 3.64%, 12/15/2059 | 13,071,416 | 12,156,602 | ||
Wells Fargo Commercial Mortgage Trust, 2017-C42, “A5”, 3.589%, 12/15/2050 | 3,970,000 | 3,586,362 | ||
$263,550,870 | ||||
Automotive – 0.1% | ||||
Volkswagen Group of America Finance LLC, 3.75%, 5/13/2030 (n) | $ | 2,118,000 | $ 1,910,134 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Broadcasting – 1.3% | ||||
Discovery Communications LLC, 4.65%, 5/15/2050 | $ | 4,028,000 | $ 3,068,344 | |
Prosus N.V., 3.68%, 1/21/2030 (n) | 4,905,000 | 4,163,953 | ||
WarnerMedia Holdings, Inc., 5.05%, 3/15/2042 | 5,334,000 | 4,495,854 | ||
WarnerMedia Holdings, Inc., 5.141%, 3/15/2052 | 4,694,000 | 3,822,080 | ||
WarnerMedia Holdings, Inc., 5.391%, 3/15/2062 | 1,915,000 | 1,560,670 | ||
WMG Acquisition Corp., 3%, 2/15/2031 (n) | 3,382,000 | 2,735,970 | ||
$19,846,871 | ||||
Brokerage & Asset Managers – 1.6% | ||||
Charles Schwab Corp., 5.853% to 5/19/2033, FLR (SOFR - 1 day + 2.5%) to 5/19/2034 | $ | 2,300,000 | $ 2,334,238 | |
Charles Schwab Corp., 5% to 6/01/2027, FLR (CMT - 5yr. + 3.256%) to 6/01/2170 | 6,058,000 | 5,076,422 | ||
LPL Holdings, Inc., 4%, 3/15/2029 (n) | 4,555,000 | 3,996,185 | ||
Morgan Stanley Domestic Holdings, Inc., 3.8%, 8/24/2027 | 5,272,000 | 4,998,075 | ||
Morgan Stanley Domestic Holdings, Inc., 4.5%, 6/20/2028 | 3,485,000 | 3,356,798 | ||
Raymond James Financial, Inc., 4.95%, 7/15/2046 | 4,683,000 | 4,223,407 | ||
$23,985,125 | ||||
Building – 0.7% | ||||
Standard Industries, Inc., 4.375%, 7/15/2030 (n) | $ | 5,875,000 | $ 5,088,320 | |
Standard Industries, Inc., 3.375%, 1/15/2031 (n) | 2,760,000 | 2,221,919 | ||
Vulcan Materials Co., 3.5%, 6/01/2030 | 3,356,000 | 3,031,919 | ||
$10,342,158 | ||||
Business Services – 1.2% | ||||
Equinix, Inc., 2.15%, 7/15/2030 | $ | 4,789,000 | $ 3,870,233 | |
Fiserv, Inc., 3.5%, 7/01/2029 | 2,280,000 | 2,081,037 | ||
Fiserv, Inc., 5.6%, 3/02/2033 | 2,183,000 | 2,221,885 | ||
Global Payments, Inc., 2.9%, 5/15/2030 | 5,153,000 | 4,367,567 | ||
Global Payments, Inc., 2.9%, 11/15/2031 | 1,508,000 | 1,226,778 | ||
Iron Mountain, Inc., 4.5%, 2/15/2031 (n) | 5,315,000 | 4,566,800 | ||
$18,334,300 | ||||
Cable TV – 1.5% | ||||
CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 8/15/2030 (n) | $ | 6,587,000 | $ 5,484,936 | |
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 5.25%, 4/01/2053 | 6,586,000 | 5,319,398 | ||
CSC Holdings LLC, 4.125%, 12/01/2030 (n) | 2,940,000 | 2,056,606 | ||
CSC Holdings LLC, 4.5%, 11/15/2031 (n) | 4,065,000 | 2,834,184 | ||
Sirius XM Radio, Inc., 5.5%, 7/01/2029 (n) | 2,184,000 | 1,970,091 | ||
Sirius XM Radio, Inc., 4.125%, 7/01/2030 (n) | 3,995,000 | 3,262,136 | ||
Time Warner Cable, Inc., 4.5%, 9/15/2042 | 3,558,000 | 2,661,356 | ||
Time Warner Entertainment Co. LP, 8.375%, 7/15/2033 | 290,000 | 318,557 | ||
$23,907,264 | ||||
Chemicals – 0.2% | ||||
Axalta Coating Systems Ltd., 3.375%, 2/15/2029 (n) | $ | 3,100,000 | $ 2,638,875 | |
Computer Software – 0.6% | ||||
Dell International LLC/EMC Corp., 5.3%, 10/01/2029 | $ | 7,950,000 | $ 7,892,038 | |
Oracle Corp., 4.9%, 2/06/2033 | 1,320,000 | 1,281,330 | ||
$9,173,368 | ||||
Computer Software - Systems – 0.3% | ||||
SS&C Technologies Holdings, Inc., 5.5%, 9/30/2027 (n) | $ | 4,802,000 | $ 4,597,089 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Conglomerates – 1.0% | ||||
BWX Technologies, Inc., 4.125%, 6/30/2028 (n) | $ | 1,627,000 | $ 1,484,392 | |
Regal Rexnord Corp., 6.05%, 4/15/2028 (n) | 1,521,000 | 1,509,908 | ||
Regal Rexnord Corp., 6.3%, 2/15/2030 (n) | 4,643,000 | 4,629,257 | ||
Regal Rexnord Corp., 6.4%, 4/15/2033 (n) | 3,600,000 | 3,596,965 | ||
Westinghouse Air Brake Technologies Corp., 4.95%, 9/15/2028 | 4,993,000 | 4,809,377 | ||
$16,029,899 | ||||
Consumer Products – 0.3% | ||||
GSK Consumer Healthcare Capital US LLC, 3.375%, 3/24/2029 | $ | 1,510,000 | $ 1,372,019 | |
GSK Consumer Healthcare Capital US LLC, 3.625%, 3/24/2032 | 3,229,000 | 2,894,605 | ||
$4,266,624 | ||||
Consumer Services – 0.9% | ||||
Match Group Holdings II LLC, 3.625%, 10/01/2031 (n) | $ | 4,782,000 | $ 3,930,517 | |
Meituan, 3.05%, 10/28/2030 | 1,373,000 | 1,087,767 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2026 (n) | 2,145,000 | 1,782,656 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2029 (n) | 6,221,000 | 4,206,722 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2031 (n) | 2,145,000 | 1,284,705 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2043 (n) | 5,294,766 | 1,671,492 | ||
$13,963,859 | ||||
Containers – 0.2% | ||||
Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 2/01/2026 | $ | 3,086,000 | $ 2,990,846 | |
Electrical Equipment – 0.3% | ||||
Arrow Electronics, Inc., 2.95%, 2/15/2032 | $ | 4,838,000 | $ 3,992,568 | |
Electronics – 0.9% | ||||
Broadcom, Inc., 4.15%, 11/15/2030 | $ | 2,376,000 | $ 2,186,037 | |
Broadcom, Inc., 3.469%, 4/15/2034 (n) | 3,589,000 | 2,944,088 | ||
Broadcom, Inc., 3.137%, 11/15/2035 (n) | 3,219,000 | 2,469,118 | ||
Broadcom, Inc., 3.187%, 11/15/2036 (n) | 3,936,000 | 2,974,644 | ||
Broadcom, Inc., 4.926%, 5/15/2037 (n) | 3,219,000 | 2,913,208 | ||
$13,487,095 | ||||
Emerging Market Quasi-Sovereign – 0.1% | ||||
Indian Railway Finance Corp., 2.8%, 2/10/2031 (n) | $ | 1,268,000 | $ 1,044,785 | |
Energy - Independent – 1.0% | ||||
Energean Israel Finance Ltd., 4.875%, 3/30/2026 | $ | 3,943,000 | $ 3,658,158 | |
EQT Corp., 3.9%, 10/01/2027 | 2,315,000 | 2,140,263 | ||
EQT Corp., 5%, 1/15/2029 | 1,294,000 | 1,218,288 | ||
EQT Corp., 3.625%, 5/15/2031 (n) | 1,506,000 | 1,295,299 | ||
Leviathan Bond Ltd., 6.5%, 6/30/2027 (n) | 2,197,000 | 2,098,135 | ||
Leviathan Bond Ltd., 6.75%, 6/30/2030 (n) | 2,670,000 | 2,484,435 | ||
Tengizchevroil Finance Co. International Ltd., 3.25%, 8/15/2030 | 3,294,000 | 2,512,334 | ||
$15,406,912 | ||||
Energy - Integrated – 0.2% | ||||
Eni S.p.A., 4%, 9/12/2023 (n) | $ | 2,526,000 | $ 2,515,312 | |
Financial Institutions – 1.9% | ||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 4.5%, 9/15/2023 | $ | 960,000 | $ 956,396 | |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 6.5%, 7/15/2025 | 3,195,000 | 3,210,799 | ||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3%, 10/29/2028 | 2,329,000 | 2,013,776 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Financial Institutions – continued | ||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.3%, 1/30/2032 | $ | 2,763,000 | $ 2,260,407 | |
Air Lease Corp., 5.85%, 12/15/2027 | 1,536,000 | 1,533,937 | ||
Avolon Holdings Funding Ltd., 5.25%, 5/15/2024 (n) | 5,681,000 | 5,581,430 | ||
Avolon Holdings Funding Ltd., 3.95%, 7/01/2024 (n) | 4,592,000 | 4,454,472 | ||
Avolon Holdings Funding Ltd., 2.125%, 2/21/2026 (n) | 2,890,000 | 2,568,542 | ||
Avolon Holdings Funding Ltd., 4.25%, 4/15/2026 (n) | 1,779,000 | 1,657,344 | ||
Avolon Holdings Funding Ltd., 2.75%, 2/21/2028 (n) | 2,615,000 | 2,202,951 | ||
Global Aircraft Leasing Co. Ltd., 6.5% (6.5% Cash or 7.25% PIK), 9/15/2024 (n)(p) | 3,989,171 | 3,651,488 | ||
$30,091,542 | ||||
Food & Beverages – 0.7% | ||||
Anheuser-Busch InBev Worldwide, Inc., 5.45%, 1/23/2039 | $ | 1,299,000 | $ 1,344,139 | |
JBS USA Lux S.A./JBS USA Finance, Inc., 5.5%, 1/15/2030 (n) | 4,965,000 | 4,762,924 | ||
PT Indofood CBP Sukses Makmur Tbk, 3.541%, 4/27/2032 | 5,223,000 | 4,374,263 | ||
$10,481,326 | ||||
Gaming & Lodging – 0.2% | ||||
Marriott International, Inc., 3.5%, 10/15/2032 | $ | 3,330,000 | $ 2,876,114 | |
Insurance – 0.3% | ||||
Corebridge Financial, Inc., 3.9%, 4/05/2032 | $ | 3,293,000 | $ 2,861,278 | |
Corebridge Financial, Inc., 4.35%, 4/05/2042 | 442,000 | 356,654 | ||
Corebridge Financial, Inc., 4.4%, 4/05/2052 | 1,291,000 | 1,014,952 | ||
$4,232,884 | ||||
Insurance - Health – 0.3% | ||||
Humana, Inc., 5.875%, 3/01/2033 | $ | 4,453,000 | $ 4,627,569 | |
Insurance - Property & Casualty – 2.0% | ||||
Allied World Assurance Co. Holdings Ltd., 4.35%, 10/29/2025 | $ | 6,835,000 | $ 6,489,826 | |
American International Group, Inc., 3.9%, 4/01/2026 | 2,462,000 | 2,365,569 | ||
Aon Corp., 3.75%, 5/02/2029 | 7,982,000 | 7,388,587 | ||
Brown & Brown, Inc., 4.95%, 3/17/2052 | 3,943,000 | 3,374,763 | ||
Fairfax Financial Holdings Ltd., 4.85%, 4/17/2028 | 5,692,000 | 5,478,034 | ||
Fairfax Financial Holdings Ltd., 3.375%, 3/03/2031 | 1,060,000 | 894,685 | ||
Fairfax Financial Holdings Ltd., 5.625%, 8/16/2032 | 2,374,000 | 2,293,240 | ||
Liberty Mutual Group, Inc., 3.951%, 10/15/2050 (n) | 2,900,000 | 2,120,881 | ||
$30,405,585 | ||||
International Market Quasi-Sovereign – 0.3% | ||||
Electricite de France S.A., 4.875%, 9/21/2038 (n) | $ | 2,687,000 | $ 2,257,230 | |
Electricite de France S.A., 6.9%, 5/23/2053 (n) | 1,704,000 | 1,765,726 | ||
$4,022,956 | ||||
Machinery & Tools – 0.3% | ||||
Ashtead Capital, Inc., 5.55%, 5/30/2033 (n) | $ | 3,631,000 | $ 3,539,442 | |
CNH Industrial N.V., 3.85%, 11/15/2027 | 1,328,000 | 1,247,807 | ||
$4,787,249 | ||||
Major Banks – 8.8% | ||||
Bank of America Corp., 3.419% to 12/20/2027, FLR (LIBOR - 3mo. + 1.04%) to 12/20/2028 | $ | 8,192,000 | $ 7,512,257 | |
Bank of America Corp., 2.496% to 2/13/2030, FLR (LIBOR - 3mo. + 0.99%) to 2/13/2031 | 9,824,000 | 8,224,961 | ||
Bank of America Corp., 2.572% to 10/20/2031, FLR (SOFR + 1.21%) to 10/20/2032 | 10,928,000 | 8,900,861 | ||
Bank of America Corp., 6.5% to 10/23/2024, FLR (LIBOR - 3mo. + 4.174%) to 10/23/2049 | 3,843,000 | 3,832,316 | ||
Bank of America Corp., 6.1%, 12/29/2049 | 6,096,000 | 6,044,184 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Major Banks – continued | ||||
Bank of America Corp., 5.875% to 3/15/2028, FLR (LIBOR - 3mo. + 2.931%) to 12/31/2059 | $ | 3,924,000 | $ 3,595,365 | |
Barclays PLC, 4.972% to 5/16/2028, FLR (LIBOR - 3mo. + 1.902%) to 5/16/2029 | 3,191,000 | 3,015,575 | ||
Barclays PLC, 2.894% to 11/24/2031, FLR (CMT - 1yr. + 1.3%) to 11/24/2032 | 3,776,000 | 2,971,600 | ||
Capital One Financial Corp., 5.817% to 2/01/2033, FLR (SOFR - 1 day + 2.6%) to 2/01/2034 | 2,325,000 | 2,218,224 | ||
Capital One Financial Corp., 6.377% to 6/08/2033, FLR (SOFR - 1 day + 2.860%) to 6/08/2034 | 2,325,000 | 2,308,342 | ||
Deutsche Bank AG, 2.311% to 11/16/2026, FLR (SOFR - 1 day + 1.219%) to 11/16/2027 | 5,055,000 | 4,343,950 | ||
Deutsche Bank AG, 6.72% to 1/18/2028, FLR (SOFR - 1 day + 3.18%) to 1/18/2029 | 5,453,000 | 5,460,773 | ||
Goldman Sachs Group, Inc., 2.6%, 2/07/2030 | 6,000,000 | 5,110,065 | ||
HSBC Holdings PLC, 4.7% to 9/09/2031, FLR (CMT - 1yr. + 3.25%) to 9/09/2169 | 6,176,000 | 4,619,101 | ||
HSBC Holdings PLC, 4% to 9/09/2026, FLR (CMT - 1yr. + 3.222%) to 9/09/2170 | 2,447,000 | 2,069,456 | ||
JPMorgan Chase & Co., 3.509% to 1/23/2028, FLR (LIBOR - 3mo. + 0.945%) to 1/23/2029 | 2,290,000 | 2,116,823 | ||
JPMorgan Chase & Co., 4.005% to 4/23/2028, FLR (LIBOR - 3mo. + 1.12%) to 4/23/2029 | 11,383,000 | 10,716,562 | ||
JPMorgan Chase & Co., 4.203% to 7/23/2028, FLR (LIBOR - 3mo. + 1.26%) to 7/23/2029 | 2,576,000 | 2,448,397 | ||
JPMorgan Chase & Co., 2.956% to 5/13/2030, FLR (SOFR - 1 day + 2.515%) to 5/13/2031 | 4,435,000 | 3,802,792 | ||
JPMorgan Chase & Co., 2.545% to 11/08/2031, FLR (SOFR - 1 day + 1.18%) to 11/08/2032 | 6,741,000 | 5,523,065 | ||
Lloyds Bank PLC, 3.75%, 1/11/2027 | 2,765,000 | 2,589,883 | ||
Mitsubishi UFJ Financial Group, Inc., 2.048%, 7/17/2030 | 8,031,000 | 6,511,375 | ||
Morgan Stanley, 2.511% to 10/20/2031, FLR (SOFR - 1 day + 1.2%) to 10/20/2032 | 6,985,000 | 5,641,902 | ||
NatWest Group PLC, 6.016% to 3/02/2033, FLR (CMT - 1yr. + 2.1%) to 3/02/2034 | 769,000 | 773,102 | ||
Sumitomo Mitsui Financial Group, Inc., 2.13%, 7/08/2030 | 9,717,000 | 7,907,138 | ||
Sumitomo Mitsui Trust Bank Ltd., 0.85%, 3/25/2024 (n) | 1,311,000 | 1,264,486 | ||
UBS Group AG, 4.375% to 2/10/2031, FLR (CMT - 1yr. + 3.313%) to 8/10/2069 (n) | 7,084,000 | 4,990,253 | ||
UBS Group Funding (Jersey) Ltd., 4.125%, 9/24/2025 (n) | 4,524,000 | 4,322,776 | ||
Wells Fargo & Co., 2.572% to 2/11/2030, FLR (LIBOR - 3mo. +1%) to 2/11/2031 | 4,514,000 | 3,821,957 | ||
Westpac Banking Corp., 2.894% to 2/04/2025, FLR (CMT - 5yr. + 1.35%) to 2/04/2030 | 2,633,000 | 2,460,081 | ||
$135,117,622 | ||||
Medical & Health Technology & Services – 2.2% | ||||
Adventist Health System/West, 5.43%, 3/01/2032 | $ | 4,476,000 | $ 4,437,278 | |
Alcon Finance Corp., 2.6%, 5/27/2030 (n) | 1,096,000 | 934,162 | ||
Alcon Finance Corp., 5.375%, 12/06/2032 (n) | 1,318,000 | 1,335,555 | ||
Alcon, Inc., 2.75%, 9/23/2026 (n) | 593,000 | 544,609 | ||
DaVita, Inc., 4.625%, 6/01/2030 (n) | 2,840,000 | 2,438,077 | ||
HCA, Inc., 5.25%, 6/15/2026 | 1,458,000 | 1,442,064 | ||
HCA, Inc., 4.125%, 6/15/2029 | 4,581,000 | 4,239,206 | ||
HCA, Inc., 4.375%, 3/15/2042 (n) | 3,251,000 | 2,685,654 | ||
HCA, Inc., 4.625%, 3/15/2052 (n) | 2,141,000 | 1,759,360 | ||
Marin General Hospital, 7.242%, 8/01/2045 | 2,243,000 | 2,209,489 | ||
Northwell Healthcare, Inc., 3.979%, 11/01/2046 | 1,503,000 | 1,174,595 | ||
ProMedica Toledo Hospital, “B”, 5.325%, 11/15/2028 | 7,120,000 | 5,767,200 | ||
ProMedica Toledo Hospital, “B”, AGM, 5.75%, 11/15/2038 | 2,562,000 | 2,521,712 | ||
Tower Health, 4.451%, 2/01/2050 | 6,211,000 | 2,810,477 | ||
$34,299,438 | ||||
Metals & Mining – 1.4% | ||||
Anglo American Capital PLC, 2.25%, 3/17/2028 (n) | $ | 2,504,000 | $ 2,151,835 | |
Anglo American Capital PLC, 3.875%, 3/16/2029 (n) | 3,434,000 | 3,120,650 | ||
Anglo American Capital PLC, 2.875%, 3/17/2031 (n) | 2,927,000 | 2,416,702 | ||
Anglo American Capital PLC, 4.75%, 3/16/2052 (n) | 4,511,000 | 3,726,699 | ||
FMG Resources Ltd., 4.375%, 4/01/2031 (n) | 3,922,000 | 3,348,651 | ||
Glencore Funding LLC, 2.85%, 4/27/2031 (n) | 4,010,000 | 3,310,004 | ||
Novelis Corp., 3.25%, 11/15/2026 (n) | 759,000 | 687,022 | ||
Novelis Corp., 3.875%, 8/15/2031 (n) | 2,661,000 | 2,188,970 | ||
$20,950,533 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Midstream – 3.3% | ||||
Cheniere Corpus Christi Holdings LLC, 2.742%, 12/31/2039 | $ | 3,855,000 | $ 3,038,426 | |
Cheniere Energy Partners LP, 4.5%, 10/01/2029 | 2,483,000 | 2,278,789 | ||
Enbridge, Inc., 4.25%, 12/01/2026 | 4,734,000 | 4,565,606 | ||
Enbridge, Inc., 5.7%, 3/08/2033 | 1,601,000 | 1,622,984 | ||
Energy Transfer LP, 5.55%, 2/15/2028 | 1,261,000 | 1,257,458 | ||
Energy Transfer LP, 5.75%, 2/15/2033 | 3,863,000 | 3,888,287 | ||
Kinder Morgan (Delaware), Inc., 7.75%, 1/15/2032 | 3,350,000 | 3,782,255 | ||
Kinder Morgan Energy Partners LP, 6.375%, 3/01/2041 | 2,040,000 | 2,045,908 | ||
Kinder Morgan Energy Partners LP, 5.4%, 9/01/2044 | 2,612,000 | 2,315,715 | ||
MPLX LP, 4.95%, 3/14/2052 | 6,323,000 | 5,370,088 | ||
ONEOK, Inc., 5.2%, 7/15/2048 | 2,708,000 | 2,308,482 | ||
Plains All American Pipeline LP/PAA Finance Corp., 3.55%, 12/15/2029 | 2,839,000 | 2,501,692 | ||
Sabine Pass Liquefaction LLC, 4.2%, 3/15/2028 | 2,675,000 | 2,535,270 | ||
Sabine Pass Liquefaction LLC, 4.5%, 5/15/2030 | 1,975,000 | 1,877,360 | ||
Targa Resources Corp., 4.2%, 2/01/2033 | 930,000 | 823,179 | ||
Targa Resources Corp., 6.125%, 3/15/2033 | 4,345,000 | 4,439,677 | ||
Targa Resources Corp., 4.95%, 4/15/2052 | 1,533,000 | 1,266,605 | ||
Venture Global Calcasieu Pass LLC, 6.25%, 1/15/2030 (n) | 4,349,000 | 4,313,935 | ||
$50,231,716 | ||||
Mortgage-Backed – 22.7% | ||||
Fannie Mae, 5%, 7/01/2023 - 3/01/2042 | $ | 2,437,041 | $ 2,452,604 | |
Fannie Mae, 5.5%, 10/01/2023 - 4/01/2040 | 3,490,813 | 3,571,004 | ||
Fannie Mae, 4.5%, 5/01/2024 - 6/01/2044 | 7,972,577 | 7,847,568 | ||
Fannie Mae, 3.5%, 3/01/2026 - 7/01/2046 | 6,410,119 | 5,990,841 | ||
Fannie Mae, 3.95%, 1/01/2027 | 314,066 | 305,801 | ||
Fannie Mae, 3%, 11/01/2028 - 8/01/2047 | 5,782,747 | 5,245,741 | ||
Fannie Mae, 2.5%, 11/01/2031 - 11/01/2046 | 744,611 | 645,633 | ||
Fannie Mae, 6.5%, 7/01/2032 - 1/01/2033 | 1,990 | 2,052 | ||
Fannie Mae, 3%, 2/25/2033 (i) | 356,440 | 30,824 | ||
Fannie Mae, 6%, 10/01/2035 - 3/01/2039 | 902,175 | 929,732 | ||
Fannie Mae, 4%, 12/01/2039 - 1/01/2047 | 13,322,121 | 12,797,749 | ||
Fannie Mae, 3.25%, 5/25/2040 | 121,477 | 111,372 | ||
Fannie Mae, 2%, 10/25/2040 - 4/25/2046 | 266,628 | 237,721 | ||
Fannie Mae, 4%, 7/25/2046 (i) | 383,476 | 71,194 | ||
Fannie Mae, 3.5%, 12/01/2046 (f) | 1,341,728 | 1,245,273 | ||
Fannie Mae, UMBS, 2.5%, 11/01/2036 - 9/01/2052 | 48,043,027 | 41,244,106 | ||
Fannie Mae, UMBS, 2%, 2/01/2037 - 4/01/2052 | 46,613,624 | 39,239,979 | ||
Fannie Mae, UMBS, 3%, 9/01/2037 - 10/01/2052��� | 19,428,089 | 17,323,751 | ||
Fannie Mae, UMBS, 5%, 3/01/2038 - 3/01/2053 | 7,372,312 | 7,237,986 | ||
Fannie Mae, UMBS, 1.5%, 2/01/2042 | 174,537 | 141,227 | ||
Fannie Mae, UMBS, 3.5%, 5/01/2052 - 4/01/2053 | 2,577,101 | 2,348,900 | ||
Fannie Mae, UMBS, 4.5%, 9/01/2052 | 803,237 | 777,327 | ||
Fannie Mae, UMBS, 6%, 12/01/2052 - 2/01/2053 | 2,137,588 | 2,178,629 | ||
Fannie Mae, UMBS, 5.5%, 1/01/2053 - 3/01/2053 | 6,783,224 | 6,751,036 | ||
Federal Home Loan Bank, 5%, 7/01/2035 | 742,924 | 749,081 | ||
Freddie Mac, 3.531%, 7/25/2023 | 989,614 | 986,053 | ||
Freddie Mac, 2.67%, 12/25/2024 | 2,784,000 | 2,678,585 | ||
Freddie Mac, 2.811%, 1/25/2025 | 3,418,235 | 3,289,225 | ||
Freddie Mac, 4%, 7/01/2025 - 4/01/2044 | 1,337,004 | 1,284,699 | ||
Freddie Mac, 4.5%, 7/01/2025 - 5/01/2042 | 2,084,562 | 2,058,685 | ||
Freddie Mac, 3.3%, 10/25/2026 | 2,958,000 | 2,818,058 | ||
Freddie Mac, 3%, 6/15/2028 - 2/25/2059 | 10,128,151 | 9,135,136 | ||
Freddie Mac, 1.219%, 7/25/2029 (i) | 4,035,296 | 215,538 | ||
Freddie Mac, 1.267%, 8/25/2029 (i) | 6,961,791 | 391,748 | ||
Freddie Mac, 1.985%, 4/25/2030 (i) | 1,901,414 | 194,948 | ||
Freddie Mac, 5.5%, 5/01/2034 - 1/01/2038 | 160,910 | 164,578 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mortgage-Backed – continued | ||||
Freddie Mac, 6%, 8/01/2034 - 7/01/2038 | $ | 44,723 | $ 45,734 | |
Freddie Mac, 5%, 11/01/2035 - 7/01/2041 | 748,324 | 754,813 | ||
Freddie Mac, 5.5%, 2/15/2036 (i) | 71,554 | 11,236 | ||
Freddie Mac, 3.5%, 11/01/2037 - 10/25/2058 | 11,265,378 | 10,491,578 | ||
Freddie Mac, 4.5%, 12/15/2040 (i) | 50,204 | 4,190 | ||
Freddie Mac, 4%, 8/15/2044 (i) | 75,708 | 8,199 | ||
Freddie Mac, 3.25%, 11/25/2061 | 781,584 | 681,038 | ||
Freddie Mac, UMBS, 2%, 4/01/2037 - 5/01/2052 | 44,392,800 | 36,703,372 | ||
Freddie Mac, UMBS, 5%, 2/01/2038 - 10/01/2052 | 1,166,693 | 1,149,447 | ||
Freddie Mac, UMBS, 3.5%, 12/01/2046 - 4/01/2053 | 3,152,513 | 2,882,041 | ||
Freddie Mac, UMBS, 3%, 3/01/2047 - 6/01/2052 | 2,687,877 | 2,395,679 | ||
Freddie Mac, UMBS, 2.5%, 2/01/2051 - 9/01/2052 | 16,601,199 | 14,116,047 | ||
Freddie Mac, UMBS, 4%, 10/01/2052 | 1,376,243 | 1,291,695 | ||
Freddie Mac, UMBS, 4.5%, 10/01/2052 | 1,624,120 | 1,561,684 | ||
Freddie Mac, UMBS, 6%, 1/01/2053 | 3,025,002 | 3,051,499 | ||
Freddie Mac, UMBS, 5.5%, 4/01/2053 | 797,740 | 802,845 | ||
Ginnie Mae, 5.5%, 5/15/2033 - 4/20/2053 | 5,299,978 | 5,298,921 | ||
Ginnie Mae, 4.5%, 10/20/2033 - 12/20/2052 | 13,764,374 | 13,378,116 | ||
Ginnie Mae, 6%, 1/20/2036 - 1/15/2039 | 83,695 | 86,392 | ||
Ginnie Mae, 4%, 10/20/2040 - 10/20/2052 | 9,304,124 | 8,829,956 | ||
Ginnie Mae, 3.5%, 11/15/2040 - 1/20/2053 | 10,333,396 | 9,621,221 | ||
Ginnie Mae, 3%, 11/20/2044 - 10/20/2052 | 15,404,142 | 13,875,624 | ||
Ginnie Mae, 2.5%, 8/20/2051 - 4/20/2052 | 12,560,615 | 10,880,877 | ||
Ginnie Mae, 2%, 1/20/2052 - 3/20/2052 | 9,762,176 | 8,204,557 | ||
Ginnie Mae, 5%, 1/20/2053 - 5/20/2053 | 12,090,514 | 11,883,997 | ||
Ginnie Mae, TBA, 5.5%, 7/20/2053 | 3,050,000 | 3,035,703 | ||
UMBS, TBA, 5%, 7/18/2038 - 7/13/2053 | 3,300,000 | 3,256,188 | ||
UMBS, TBA, 2%, 7/13/2053 | 3,225,000 | 2,629,761 | ||
$349,626,794 | ||||
Municipals – 2.2% | ||||
Bridgeview, IL, Stadium and Redevelopment Projects, Taxable, AAC, 5.06%, 12/01/2025 | $ | 610,000 | $ 597,104 | |
Bridgeview, IL, Stadium and Redevelopment Projects, Taxable, AAC, 5.14%, 12/01/2036 | 8,850,000 | 8,014,836 | ||
Escambia County, FL, Health Facilities Authority Rev., Taxable (Baptist Health Care Corp.), “B”, AGM, 3.607%, 8/15/2040 | 1,295,000 | 1,014,552 | ||
New Jersey Economic Development Authority State Pension Funding Rev., Taxable, “A”, NPFG, 7.425%, 2/15/2029 | 8,019,000 | 8,613,037 | ||
Oklahoma Development Finance Authority, Health System Rev., Taxable (OU Medicine Project), “C”, 5.45%, 8/15/2028 | 3,770,000 | 3,228,511 | ||
Philadelphia, PA, School District, Taxable, “B”, AGM, 6.615%, 6/01/2030 | 3,250,000 | 3,471,633 | ||
Philadelphia, PA, School District, Taxable, “B”, AGM, 6.765%, 6/01/2040 | 2,195,000 | 2,532,187 | ||
State of Florida, Taxable, “A”, 2.154%, 7/01/2030 | 7,272,000 | 6,061,260 | ||
$33,533,120 | ||||
Natural Gas - Distribution – 0.7% | ||||
Boston Gas Co., 3.15%, 8/01/2027 (n) | $ | 9,122,000 | $ 8,299,645 | |
NiSource, Inc., 3.6%, 5/01/2030 | 2,622,000 | 2,361,320 | ||
$10,660,965 | ||||
Oils – 0.1% | ||||
Marathon Petroleum Corp., 5.85%, 12/15/2045 | $ | 2,507,000 | $ 2,291,016 | |
Other Banks & Diversified Financials – 1.9% | ||||
Bangkok Bank (Hong Kong), 3.733% to 9/25/2029, FLR (CMT - 5yr. + 1.9%) to 9/25/2034 (n) | $ | 3,225,000 | $ 2,733,804 | |
Discover Financial Services, 6.7%, 11/29/2032 | 7,435,000 | 7,659,782 | ||
Groupe BPCE S.A., 4.5%, 3/15/2025 (n) | 5,458,000 | 5,237,515 | ||
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 | 4,228,208 | ||
Macquarie Group Ltd., 4.442% to 6/21/2032, FLR (SOFR - 1 day + 2.405%) to 6/21/2033 (n) | 11,447,000 | 10,207,668 | ||
$30,066,977 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Real Estate - Office – 0.3% | ||||
Boston Properties LP, REIT, 2.55%, 4/01/2032 | $ | 7,238,000 | $ 5,454,446 | |
Specialty Chemicals – 0.2% | ||||
International Flavors & Fragrances, Inc., 2.3%, 11/01/2030 (n) | $ | 4,745,000 | $ 3,760,095 | |
Specialty Stores – 0.5% | ||||
DICK'S Sporting Goods, 3.15%, 1/15/2032 | $ | 3,801,000 | $ 3,114,464 | |
Penske Automotive Group Co., 3.75%, 6/15/2029 | 5,509,000 | 4,757,527 | ||
$7,871,991 | ||||
Telecommunications - Wireless – 1.3% | ||||
Crown Castle, Inc., REIT, 3.8%, 2/15/2028 | $ | 3,824,000 | $ 3,564,156 | |
Rogers Communications, Inc., 4.5%, 3/15/2042 (n) | 6,129,000 | 5,087,695 | ||
Rogers Communications, Inc., 4.55%, 3/15/2052 (n) | 6,129,000 | 4,929,083 | ||
SBA Communications Corp., 3.125%, 2/01/2029 | 4,025,000 | 3,411,812 | ||
T-Mobile USA, Inc., 2.55%, 2/15/2031 | 1,939,000 | 1,611,717 | ||
T-Mobile USA, Inc., 4.375%, 4/15/2040 | 635,000 | 560,764 | ||
Vodafone Group PLC, 5.625%, 2/10/2053 | 1,337,000 | 1,310,698 | ||
$20,475,925 | ||||
Tobacco – 1.1% | ||||
B.A.T. Capital Corp., 4.742%, 3/16/2032 | $ | 5,611,000 | $ 5,115,832 | |
B.A.T. International Finance PLC, 4.448%, 3/16/2028 | 4,936,000 | 4,659,136 | ||
Philip Morris International, Inc., 5.125%, 11/17/2027 | 2,140,000 | 2,146,549 | ||
Philip Morris International, Inc., 5.625%, 11/17/2029 | 922,000 | 939,456 | ||
Philip Morris International, Inc., 5.125%, 2/15/2030 | 3,757,000 | 3,714,707 | ||
$16,575,680 | ||||
Transportation - Services – 0.3% | ||||
ERAC USA Finance LLC, 7%, 10/15/2037 (n) | $ | 3,603,000 | $ 4,117,349 | |
U.S. Government Agencies and Equivalents – 0.8% | ||||
Small Business Administration, 4.93%, 1/01/2024 | $ | 546 | $ 543 | |
Small Business Administration, 4.34%, 3/01/2024 | 1,104 | 1,094 | ||
Small Business Administration, 4.99%, 9/01/2024 | 1,292 | 1,269 | ||
Small Business Administration, 4.86%, 1/01/2025 | 3,847 | 3,793 | ||
Small Business Administration, 4.625%, 2/01/2025 | 5,124 | 5,006 | ||
Small Business Administration, 5.11%, 4/01/2025 | 2,231 | 2,178 | ||
Small Business Administration, 4.43%, 5/01/2029 | 75,667 | 72,826 | ||
Small Business Administration, 3.21%, 9/01/2030 | 1,311,986 | 1,239,859 | ||
Small Business Administration, 3.25%, 11/01/2030 | 126,034 | 118,726 | ||
Small Business Administration, 2.85%, 9/01/2031 | 280,106 | 258,123 | ||
Small Business Administration, 2.37%, 8/01/2032 | 207,491 | 187,209 | ||
Small Business Administration, 2.13%, 1/01/2033 | 1,019,542 | 918,120 | ||
Small Business Administration, 2.21%, 2/01/2033 | 259,272 | 233,542 | ||
Small Business Administration, 2.22%, 3/01/2033 | 829,535 | 746,239 | ||
Small Business Administration, 2.08%, 4/01/2033 | 1,520,688 | 1,363,263 | ||
Small Business Administration, 2.45%, 6/01/2033 | 1,579,019 | 1,427,454 | ||
Small Business Administration, 3.15%, 7/01/2033 | 2,286,037 | 2,139,450 | ||
Small Business Administration, 3.16%, 8/01/2033 | 2,419,049 | 2,274,397 | ||
Small Business Administration, 3.62%, 9/01/2033 | 1,985,287 | 1,886,604 | ||
$12,879,695 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Treasury Obligations – 12.3% | ||||
U.S. Treasury Bonds, 1.375%, 11/15/2040 (f) | $ | 30,300,000 | $ 20,272,594 | |
U.S. Treasury Bonds, 1.75%, 8/15/2041 | 9,700,000 | 6,814,629 | ||
U.S. Treasury Bonds, 2.375%, 2/15/2042 | 9,900,000 | 7,707,691 | ||
U.S. Treasury Bonds, 4%, 11/15/2042 | 9,080,000 | 9,021,831 | ||
U.S. Treasury Bonds, 2.375%, 11/15/2049 | 14,700,000 | 10,976,191 | ||
U.S. Treasury Bonds, 1.625%, 11/15/2050 | 3,500,000 | 2,173,555 | ||
U.S. Treasury Bonds, 2.25%, 2/15/2052 | 8,500,000 | 6,142,578 | ||
U.S. Treasury Notes, 2.25%, 3/31/2024 | 34,400,000 | 33,595,094 | ||
U.S. Treasury Notes, 4.25%, 9/30/2024 | 70,000,000 | 69,081,250 | ||
U.S. Treasury Notes, 4.625%, 2/28/2025 | 9,100,000 | 9,029,262 | ||
U.S. Treasury Notes, 3.875%, 3/31/2025 | 15,600,000 | 15,293,484 | ||
$190,108,159 | ||||
Utilities - Electric Power – 1.5% | ||||
American Electric Power Co., Inc., 5.95%, 11/01/2032 | $ | 2,985,000 | $ 3,112,214 | |
Calpine Corp., 3.75%, 3/01/2031 (n) | 3,680,000 | 2,981,173 | ||
Enel Finance International N.V., 7.5%, 10/14/2032 (n) | 746,000 | 827,105 | ||
FirstEnergy Corp., 5.1%, 7/15/2047 | 2,074,000 | 1,860,430 | ||
FirstEnergy Corp., 3.4%, 3/01/2050 | 2,429,000 | 1,673,970 | ||
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n) | 5,303,000 | 4,374,005 | ||
Pacific Gas & Electric Co., 3%, 6/15/2028 | 2,630,000 | 2,266,847 | ||
Pacific Gas & Electric Co., 3.3%, 8/01/2040 | 8,840,000 | 5,955,621 | ||
$23,051,365 | ||||
Total Bonds (Identified Cost, $1,660,402,469) | $1,511,319,907 | |||
Investment Companies (h) – 1.2% | ||||
Money Market Funds – 1.2% | ||||
MFS Institutional Money Market Portfolio, 5.04% (v) (Identified Cost, $19,033,134) | 19,033,600 | $ 19,037,407 | ||
Other Assets, Less Liabilities – 0.6% | 9,519,950 | |||
Net Assets – 100.0% | $1,539,877,264 |
(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 $19,037,407 and $1,511,319,907, 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 $425,091,299, representing 27.6% of net assets. | |||
(p) | Payment-in-kind (PIK) security for which interest income may be received in additional securities and/or cash. | |||
(v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
The following abbreviations are used in this report and are defined: | |
AAC | Ambac Assurance Corp. |
AGM | Assured Guaranty Municipal |
CDO | Collateralized Debt Obligation |
CLO | Collateralized Loan Obligation |
CMT | Constant Maturity Treasury |
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 6/30/23 | ||||||
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 30 yr | Long | USD | 742 | $101,074,313 | September – 2023 | $1,174,015 |
U.S. Treasury Ultra Note 10 yr | Short | USD | 181 | 21,437,188 | September – 2023 | 259,013 |
$1,433,028 | ||||||
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 2 yr | Long | USD | 270 | $54,902,813 | September – 2023 | $(582,027) |
U.S. Treasury Note 5 yr | Long | USD | 522 | 55,902,937 | September – 2023 | (1,049,072) |
$(1,631,099) |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/23Assets | |
Investments in unaffiliated issuers, at value (identified cost, $1,660,402,469) | $1,511,319,907 |
Investments in affiliated issuers, at value (identified cost, $19,033,134) | 19,037,407 |
Cash | 14,168 |
Receivables for | |
Net daily variation margin on open futures contracts | 865,343 |
Investments sold | 7,084,817 |
TBA sale commitments | 1,598,167 |
Fund shares sold | 203,039 |
Interest | 13,370,923 |
Other assets | 2,554 |
Total assets | $1,553,496,325 |
Liabilities | |
Payables for | |
Investments purchased | $806,183 |
TBA purchase commitments | 10,573,733 |
Fund shares reacquired | 2,020,217 |
Payable to affiliates | |
Investment adviser | 41,174 |
Administrative services fee | 1,265 |
Shareholder servicing costs | 279 |
Distribution and/or service fees | 10,973 |
Accrued expenses and other liabilities | 165,237 |
Total liabilities | $13,619,061 |
Net assets | $1,539,877,264 |
Net assets consist of | |
Paid-in capital | $1,717,756,735 |
Total distributable earnings (loss) | (177,879,471) |
Net assets | $1,539,877,264 |
Shares of beneficial interest outstanding | 134,147,339 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $739,333,368 | 63,725,440 | $11.60 |
Service Class | 800,543,896 | 70,421,899 | 11.37 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/23 | |
Net investment income (loss) | |
Income | |
Interest | $34,197,179 |
Dividends from affiliated issuers | 647,683 |
Other | 376,720 |
Total investment income | $35,221,582 |
Expenses | |
Management fee | $3,829,821 |
Distribution and/or service fees | 1,000,866 |
Shareholder servicing costs | 6,947 |
Administrative services fee | 117,100 |
Independent Trustees' compensation | 13,465 |
Custodian fee | 43,009 |
Shareholder communications | 11,715 |
Audit and tax fees | 45,422 |
Legal fees | 3,765 |
Miscellaneous | 47,942 |
Total expenses | $5,120,052 |
Reduction of expenses by investment adviser | (98,346) |
Net expenses | $5,021,706 |
Net investment income (loss) | $30,199,876 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $(4,673,456) |
Affiliated issuers | (303) |
Futures contracts | (1,375,469) |
Net realized gain (loss) | $(6,049,228) |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $20,876,587 |
Affiliated issuers | (8,679) |
Futures contracts | 949,777 |
Net unrealized gain (loss) | $21,817,685 |
Net realized and unrealized gain (loss) | $15,768,457 |
Change in net assets from operations | $45,968,333 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/23 (unaudited) | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $30,199,876 | $47,125,406 |
Net realized gain (loss) | (6,049,228) | (91,828,320) |
Net unrealized gain (loss) | 21,817,685 | (225,379,690) |
Change in net assets from operations | $45,968,333 | $(270,082,604) |
Total distributions to shareholders | $— | $(62,907,525) |
Change in net assets from fund share transactions | $(38,203,916) | $(106,813,226) |
Total change in net assets | $7,764,417 | $(439,803,355) |
Net assets | ||
At beginning of period | 1,532,112,847 | 1,971,916,202 |
At end of period | $1,539,877,264 | $1,532,112,847 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $11.26 | $13.63 | $14.12 | $13.48 | $12.65 | $13.22 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.23 | $0.36 | $0.29 | $0.37 | $0.42 | $0.39 |
Net realized and unrealized gain (loss) | 0.11 | (2.25) | (0.40) | 0.76 | 0.87 | (0.53) |
Total from investment operations | $0.34 | $(1.89) | $(0.11) | $1.13 | $1.29 | $(0.14) |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.34) | $(0.38) | $(0.49) | $(0.46) | $(0.43) |
From net realized gain | — | (0.14) | (0.00)(w) | — | — | — |
Total distributions declared to shareholders | $— | $(0.48) | $(0.38) | $(0.49) | $(0.46) | $(0.43) |
Net asset value, end of period (x) | $11.60 | $11.26 | $13.63 | $14.12 | $13.48 | $12.65 |
Total return (%) (k)(r)(s)(x) | 3.02(n) | (13.93) | (0.81) | 8.47 | 10.21 | (1.09) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.54(a) | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 |
Expenses after expense reductions | 0.52(a) | 0.53 | 0.53 | 0.53 | 0.53 | 0.53 |
Net investment income (loss) | 4.07(a) | 2.94 | 2.10 | 2.71 | 3.14 | 3.04 |
Portfolio turnover | 22(n) | 120 | 161 | 112 | 79 | 48 |
Portfolio turnover (excluding TBA transactions) (e) | 14(n) | — | — | — | — | — |
Net assets at end of period (000 omitted) | $739,333 | $730,323 | $928,578 | $921,342 | $939,179 | $862,752 |
Service Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $11.04 | $13.37 | $13.86 | $13.24 | $12.43 | $12.99 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.22 | $0.32 | $0.25 | $0.33 | $0.38 | $0.35 |
Net realized and unrealized gain (loss) | 0.11 | (2.21) | (0.40) | 0.74 | 0.85 | (0.52) |
Total from investment operations | $0.33 | $(1.89) | $(0.15) | $1.07 | $1.23 | $(0.17) |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.30) | $(0.34) | $(0.45) | $(0.42) | $(0.39) |
From net realized gain | — | (0.14) | (0.00)(w) | — | — | — |
Total distributions declared to shareholders | $— | $(0.44) | $(0.34) | $(0.45) | $(0.42) | $(0.39) |
Net asset value, end of period (x) | $11.37 | $11.04 | $13.37 | $13.86 | $13.24 | $12.43 |
Total return (%) (k)(r)(s)(x) | 2.99(n) | (14.18) | (1.07) | 8.17 | 9.92 | (1.33) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.79(a) | 0.79 | 0.79 | 0.79 | 0.79 | 0.79 |
Expenses after expense reductions | 0.77(a) | 0.78 | 0.78 | 0.78 | 0.78 | 0.78 |
Net investment income (loss) | 3.82(a) | 2.68 | 1.85 | 2.46 | 2.89 | 2.79 |
Portfolio turnover | 22(n) | 120 | 161 | 112 | 79 | 48 |
Portfolio turnover (excluding TBA transactions) (e) | 14(n) | — | — | — | — | — |
Net assets at end of period (000 omitted) | $800,544 | $801,789 | $1,043,338 | $1,090,009 | $1,105,005 | $1,137,033 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(e) | Portfolio turnover rates excluding TBA transactions for periods prior to the six months ended June 30, 2023 are not available. Refer to Note 2 for more information on TBA transactions and mortgage dollar rolls. |
(k) | The total return does not reflect expenses that apply to separate accounts. Inclusion of these charges would reduce the total return figures for all periods shown. |
(n) | Not annualized. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | $— | $202,987,854 | $— | $202,987,854 |
Non - U.S. Sovereign Debt | — | 5,067,741 | — | 5,067,741 |
Municipal Bonds | — | 33,533,120 | — | 33,533,120 |
U.S. Corporate Bonds | — | 463,680,335 | — | 463,680,335 |
Residential Mortgage-Backed Securities | — | 349,767,411 | — | 349,767,411 |
Commercial Mortgage-Backed Securities | — | 114,118,391 | — | 114,118,391 |
Asset-Backed Securities (including CDOs) | — | 149,291,862 | — | 149,291,862 |
Foreign Bonds | — | 192,873,193 | — | 192,873,193 |
Mutual Funds | 19,037,407 | — | — | 19,037,407 |
Total | $19,037,407 | $1,511,319,907 | $— | $1,530,357,314 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $1,433,028 | $— | $— | $1,433,028 |
Futures Contracts – Liabilities | (1,631,099) | — | — | (1,631,099) |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Futures Contracts | $1,433,028 | $(1,631,099) |
Risk | Futures Contracts |
Interest Rate | $(1,375,469) |
Risk | Futures Contracts |
Interest Rate | $949,777 |
Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $43,461,158 |
Long-term capital gains | 19,446,367 |
Total distributions | $62,907,525 |
As of 6/30/23 | |
Cost of investments | $1,683,310,361 |
Gross appreciation | 2,153,042 |
Gross depreciation | (155,106,089) |
Net unrealized appreciation (depreciation) | $(152,953,047) |
As of 12/31/22 | |
Undistributed ordinary income | 47,031,722 |
Capital loss carryforwards | (97,348,762) |
Net unrealized appreciation (depreciation) | (173,530,764) |
Short-Term | $(41,517,725) |
Long-Term | (55,831,037) |
Total | $(97,348,762) |
Six months ended 6/30/23 | Year ended 12/31/22 | ||
Initial Class | $— | $30,812,385 | |
Service Class | — | 32,095,140 | |
Total | $— | $62,907,525 |
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 | $270,906,181 | $278,582,880 |
Non-U.S. Government securities | 66,616,272 | 61,114,488 |
Six months ended 6/30/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 3,510,256 | $40,691,683 | 5,320,660 | $64,038,372 | |
Service Class | 3,895,838 | 44,221,611 | 5,776,933 | 68,112,867 | |
7,406,094 | $84,913,294 | 11,097,593 | $132,151,239 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 2,598,960 | $30,225,899 | |
Service Class | — | — | 2,810,433 | 32,095,140 | |
— | $— | 5,409,393 | $62,321,039 | ||
Shares reacquired | |||||
Initial Class | (4,667,822) | $(54,028,267) | (11,162,526) | $(135,116,602) | |
Service Class | (6,082,285) | (69,088,943) | (13,997,512) | (166,168,902) | |
(10,750,107) | $(123,117,210) | (25,160,038) | $(301,285,504) | ||
Net change | |||||
Initial Class | (1,157,566) | $(13,336,584) | (3,242,906) | $(40,852,331) | |
Service Class | (2,186,447) | (24,867,332) | (5,410,146) | (65,960,895) | |
(3,344,013) | $(38,203,916) | (8,653,052) | $(106,813,226) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $43,144,046 | $191,455,725 | $215,553,382 | $(303) | $(8,679) | $19,037,407 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $647,683 | $— |
1 | |
3 | |
4 | |
18 | |
19 | |
20 | |
21 | |
23 | |
32 | |
33 | |
33 | |
33 | |
33 |
U.S. Treasury Note 5 yr Future - SEP 2023 | 3.0% |
Microsoft Corp. | 2.5% |
Goldman Sachs Group, Inc. | 2.0% |
JPMorgan Chase & Co. | 1.9% |
Eaton Corp. PLC | 1.9% |
Comcast Corp., “A” | 1.8% |
UMBS, TBA, 2.5%, 30 year (h) | 1.7% |
UMBS, TBA, 2.0%, 30 year (h) | 1.7% |
Charles Schwab Corp. | 1.6% |
Johnson & Johnson | 1.5% |
AAA | 4.0% |
AA | 2.0% |
A | 5.1% |
BBB | 9.2% |
BB | 0.1% |
CCC (o) | 0.0% |
U.S. Government | 4.9% |
Federal Agencies | 13.0% |
Not Rated | 2.9% |
Non-Fixed Income | 60.6% |
Cash & Cash Equivalents | 1.0% |
Other | (2.8)% |
Financials | 14.4% |
Industrials | 9.3% |
Health Care | 9.1% |
Information Technology | 7.9% |
Communication Services | 4.8% |
Consumer Staples | 4.1% |
Energy | 3.2% |
Utilities | 2.6% |
Consumer Discretionary | 2.6% |
Materials | 2.6% |
Investment Grade Corporates | 14.0% |
Mortgage-Backed Securities | 13.0% |
U.S. Treasury Securities | 7.8% |
Collateralized Debt Obligations | 3.2% |
Commercial Mortgage-Backed Securities | 2.0% |
Municipal Bonds | 0.5% |
Asset-Backed Securities | 0.5% |
Emerging Markets Bonds | 0.1% |
High Yield Corporates | 0.1% |
Non-U.S. Government Bonds (o) | 0.0% |
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 rating 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 |
(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. |
(h) | UMBS may include both Fannie Mae and Freddie Mac securities. |
(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, 2023 through June 30, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/23 | Ending Account Value 6/30/23 | Expenses Paid During Period (p) 1/01/23-6/30/23 | |
Initial Class | Actual | 0.61% | $1,000.00 | $1,043.58 | $3.09 |
Hypothetical (h) | 0.61% | $1,000.00 | $1,021.77 | $3.06 | |
Service Class | Actual | 0.86% | $1,000.00 | $1,042.37 | $4.36 |
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 – 59.9% | ||||
Aerospace & Defense – 1.9% | ||||
General Dynamics Corp. | 36,283 | $ 7,806,287 | ||
Honeywell International, Inc. | 68,487 | 14,211,053 | ||
Howmet Aerospace, Inc. | 130,533 | 6,469,215 | ||
L3Harris Technologies, Inc. | 64,236 | 12,575,482 | ||
$41,062,037 | ||||
Alcoholic Beverages – 0.8% | ||||
Constellation Brands, Inc., “A” | 43,715 | $ 10,759,573 | ||
Diageo PLC | 153,100 | 6,570,023 | ||
$17,329,596 | ||||
Automotive – 2.0% | ||||
Aptiv PLC (a) | 166,406 | $ 16,988,388 | ||
Lear Corp. | 80,618 | 11,572,714 | ||
LKQ Corp. | 247,074 | 14,397,002 | ||
$42,958,104 | ||||
Broadcasting – 0.8% | ||||
Omnicom Group, Inc. | 159,534 | $ 15,179,660 | ||
Warner Bros. Discovery, Inc. (a) | 180,137 | 2,258,918 | ||
$17,438,578 | ||||
Brokerage & Asset Managers – 2.6% | ||||
Cboe Global Markets, Inc. | 65,322 | $ 9,015,089 | ||
Charles Schwab Corp. | 611,189 | 34,642,193 | ||
CME Group, Inc. | 39,159 | 7,255,771 | ||
Invesco Ltd. | 279,228 | 4,693,823 | ||
$55,606,876 | ||||
Business Services – 2.5% | ||||
Accenture PLC, “A” | 38,609 | $ 11,913,965 | ||
Amdocs Ltd. | 132,658 | 13,113,243 | ||
Cognizant Technology Solutions Corp., “A” | 115,891 | 7,565,365 | ||
Fidelity National Information Services, Inc. | 153,353 | 8,388,409 | ||
Fiserv, Inc. (a) | 98,404 | 12,413,665 | ||
$53,394,647 | ||||
Cable TV – 1.8% | ||||
Comcast Corp., “A” | 951,597 | $ 39,538,855 | ||
Chemicals – 0.7% | ||||
PPG Industries, Inc. | 105,874 | $ 15,701,114 | ||
Computer Software – 3.3% | ||||
Dun & Bradstreet Holdings, Inc. | 552,113 | $ 6,387,947 | ||
Microsoft Corp. | 163,133 | 55,553,312 | ||
Oracle Corp. | 75,651 | 9,009,278 | ||
$70,950,537 | ||||
Computer Software - Systems – 0.2% | ||||
Seagate Technology Holdings PLC | 80,209 | $ 4,962,531 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Construction – 2.0% | ||||
Masco Corp. | 404,653 | $ 23,218,989 | ||
Stanley Black & Decker, Inc. | 120,348 | 11,277,811 | ||
Vulcan Materials Co. | 38,435 | 8,664,787 | ||
$43,161,587 | ||||
Consumer Products – 0.2% | ||||
Kenvue, Inc. (a) | 162,510 | $ 4,293,514 | ||
Consumer Services – 0.2% | ||||
Booking Holdings, Inc. (a) | 1,788 | $ 4,828,190 | ||
Electrical Equipment – 1.2% | ||||
Johnson Controls International PLC | 390,683 | $ 26,621,140 | ||
Electronics – 3.0% | ||||
Analog Devices, Inc. | 20,340 | $ 3,962,435 | ||
Applied Materials, Inc. | 98,478 | 14,234,010 | ||
Intel Corp. | 520,385 | 17,401,675 | ||
NXP Semiconductors N.V. | 99,560 | 20,377,941 | ||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 87,499 | 8,830,399 | ||
$64,806,460 | ||||
Energy - Independent – 2.7% | ||||
ConocoPhillips | 242,397 | $ 25,114,753 | ||
Hess Corp. | 149,340 | 20,302,773 | ||
Pioneer Natural Resources Co. | 69,460 | 14,390,723 | ||
$59,808,249 | ||||
Energy - Integrated – 0.5% | ||||
Suncor Energy, Inc. | 362,890 | $ 10,644,956 | ||
Food & Beverages – 0.8% | ||||
Archer Daniels Midland Co. | 87,458 | $ 6,608,327 | ||
Danone S.A. | 99,106 | 6,071,232 | ||
J.M. Smucker Co. | 30,691 | 4,532,140 | ||
$17,211,699 | ||||
General Merchandise – 0.1% | ||||
Dollar Tree, Inc. (a) | 20,203 | $ 2,899,131 | ||
Health Maintenance Organizations – 1.5% | ||||
Cigna Group | 115,537 | $ 32,419,682 | ||
Insurance – 3.3% | ||||
Aon PLC | 76,581 | $ 26,435,761 | ||
Chubb Ltd. | 101,945 | 19,630,529 | ||
Travelers Cos., Inc. | 51,319 | 8,912,058 | ||
Willis Towers Watson PLC | 75,054 | 17,675,217 | ||
$72,653,565 | ||||
Internet – 1.1% | ||||
Alphabet, Inc., “A” (a) | 200,567 | $ 24,007,869 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Leisure & Toys – 0.3% | ||||
Electronic Arts, Inc. | 51,002 | $ 6,614,959 | ||
Machinery & Tools – 3.4% | ||||
Eaton Corp. PLC | 202,351 | $ 40,692,786 | ||
Ingersoll Rand, Inc. | 222,134 | 14,518,678 | ||
Regal Rexnord Corp. | 115,534 | 17,780,683 | ||
$72,992,147 | ||||
Major Banks – 6.3% | ||||
Bank of America Corp. | 918,463 | $ 26,350,704 | ||
Goldman Sachs Group, Inc. | 137,774 | 44,437,626 | ||
JPMorgan Chase & Co. | 283,251 | 41,196,025 | ||
Morgan Stanley | 195,203 | 16,670,336 | ||
PNC Financial Services Group, Inc. | 68,420 | 8,617,499 | ||
$137,272,190 | ||||
Medical & Health Technology & Services – 1.5% | ||||
ICON PLC (a) | 51,400 | $ 12,860,280 | ||
McKesson Corp. | 46,097 | 19,697,709 | ||
$32,557,989 | ||||
Medical Equipment – 2.0% | ||||
Becton, Dickinson and Co. | 26,741 | $ 7,059,891 | ||
Boston Scientific Corp. (a) | 158,155 | 8,554,604 | ||
Danaher Corp. | 24,172 | 5,801,280 | ||
Medtronic PLC | 248,738 | 21,913,818 | ||
$43,329,593 | ||||
Metals & Mining – 0.2% | ||||
Glencore PLC | 903,283 | $ 5,099,165 | ||
Other Banks & Diversified Financials – 1.2% | ||||
Northern Trust Corp. | 174,127 | $ 12,909,776 | ||
Truist Financial Corp. | 458,587 | 13,918,115 | ||
$26,827,891 | ||||
Pharmaceuticals – 4.2% | ||||
Bayer AG | 248,910 | $ 13,762,513 | ||
Johnson & Johnson | 199,381 | 33,001,543 | ||
Merck & Co., Inc. | 41,808 | 4,824,225 | ||
Organon & Co. | 158,391 | 3,296,117 | ||
Pfizer, Inc. | 459,825 | 16,866,381 | ||
Roche Holding AG | 41,789 | 12,769,445 | ||
Vertex Pharmaceuticals, Inc. (a) | 18,058 | 6,354,791 | ||
$90,875,015 | ||||
Railroad & Shipping – 0.9% | ||||
Union Pacific Corp. | 99,053 | $ 20,268,225 | ||
Restaurants – 0.2% | ||||
Wendy's Co. | 235,617 | $ 5,124,670 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Specialty Chemicals – 1.2% | ||||
Axalta Coating Systems Ltd. (a) | 434,619 | $ 14,259,849 | ||
DuPont de Nemours, Inc. | 171,943 | 12,283,608 | ||
$26,543,457 | ||||
Specialty Stores – 0.9% | ||||
Ross Stores, Inc. | 29,452 | $ 3,302,453 | ||
Walmart Stores, Inc. | 100,125 | 15,737,647 | ||
$19,040,100 | ||||
Telecommunications - Wireless – 0.8% | ||||
T-Mobile US, Inc. (a) | 119,862 | $ 16,648,832 | ||
Tobacco – 1.0% | ||||
Philip Morris International, Inc. | 215,250 | $ 21,012,705 | ||
Utilities - Electric Power – 2.6% | ||||
Duke Energy Corp. | 132,975 | $ 11,933,177 | ||
Exelon Corp. | 230,692 | 9,398,392 | ||
National Grid PLC | 426,081 | 5,630,380 | ||
PG&E Corp. (a) | 847,438 | 14,643,729 | ||
Southern Co. | 227,986 | 16,016,016 | ||
$57,621,694 | ||||
Total Common Stocks (Identified Cost, $803,243,831) | $1,304,127,549 | |||
Bonds – 38.1% | ||||
Aerospace & Defense – 0.1% | ||||
BAE Systems PLC, 3.4%, 4/15/2030 (n) | $ | 1,108,000 | $ 1,001,934 | |
Huntington Ingalls Industries, Inc., 3.844%, 5/01/2025 | 504,000 | 484,611 | ||
Raytheon Technologies Corp., 4.125%, 11/16/2028 | 1,570,000 | 1,512,122 | ||
$2,998,667 | ||||
Asset-Backed & Securitized – 5.7% | ||||
ACRES 2021-FL2 Issuer Ltd., “AS”, FLR, 6.908% (LIBOR - 1mo. + 1.75%), 1/15/2037 (n) | $ | 1,851,500 | $ 1,797,563 | |
Allegro CLO Ltd., 2016-1A, “BR2”, FLR, 6.81% (LIBOR - 3mo. + 1.55%), 1/15/2030 (n) | 2,407,803 | 2,361,443 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL1, “AS”, FLR, 6.419% (LIBOR - 1mo. + 1.2%), 12/15/2035 (n) | 2,115,000 | 2,043,890 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL3, “B”, FLR, 6.793% (LIBOR - 1mo. + 1.6%), 8/15/2034 (n) | 1,807,500 | 1,699,910 | ||
Arbor Realty Trust, Inc., CLO, 2022-FL1, “B”, FLR, 7.166% (SOFR - 30 day + 2.1%), 1/15/2037 (n) | 5,076,500 | 4,900,941 | ||
AREIT 2019-CRE3 Trust, “AS”, FLR, 6.516% (LIBOR - 1mo. + 1.3%), 9/14/2036 (n) | 2,931,780 | 2,878,228 | ||
AREIT 2022-CRE6 Trust, “B”, FLR, 6.916% (SOFR - 30 day + 1.85%), 1/20/2037 (n) | 3,088,500 | 2,930,072 | ||
Bayview Financial Revolving Mortgage Loan Trust, FLR, 6.777% (LIBOR - 1mo. + 1.6%), 12/28/2040 (n) | 485,846 | 645,363 | ||
Brazos Securitization LLC, 5.243%, 9/01/2040 (n) | 1,552,000 | 1,549,420 | ||
BSPRT 2021-FL6 Issuer Ltd., “AS”, FLR, 6.493% (LIBOR - 1mo. + 1.3%), 3/15/2036 (n) | 4,964,000 | 4,752,807 | ||
BSPRT 2021-FL7 Issuer Ltd., “B”, FLR, 7.243% (LIBOR - 1mo. + 2.05%), 12/15/2038 (n) | 849,500 | 828,317 | ||
BSPRT 2022-FL8 Issuer Ltd., “B”, FLR, 7.117% (SOFR - 30 day + 2.05%), 2/15/2037 (n) | 1,817,000 | 1,753,510 | ||
Business Jet Securities LLC, 2021-1A, “A”, 2.162%, 4/15/2036 (n) | 865,328 | 793,510 | ||
BXMT 2021-FL4 Ltd., “AS”, FLR, 6.561% (LIBOR - 1mo. + 1.3%), 5/15/2038 (n) | 5,214,000 | 4,912,016 | ||
CHCP 2021-FL1 Ltd., “AS”, FLR, 6.516% (LIBOR - 1mo. + 1.3%) 2/15/2038 (n) | 2,203,500 | 2,119,409 | ||
Chesapeake Funding II LLC, 2023-1A, “A1”, 5.65%, 5/15/2035 (n) | 2,334,935 | 2,316,231 | ||
Columbia Cent CLO 28 Ltd., “A-2-R”, 7.023%, 11/07/2030 (n) | 3,492,733 | 3,386,484 | ||
Commercial Mortgage Trust, 2015-LC21, “A4”, 3.708%, 7/10/2048 | 3,980,975 | 3,789,287 | ||
Credit Acceptance Auto Loan Trust, 2021-3A, “B”, 1.38%, 7/15/2030 (n) | 1,118,000 | 1,051,301 | ||
CSAIL Commercial Mortgage Trust, 2015-C2, “A4”, 3.504%, 6/15/2057 | 2,316,427 | 2,204,112 | ||
Cutwater 2015-1A Ltd., “AR”, FLR, 6.48% (LIBOR - 3mo. + 1.22%), 1/15/2029 (n) | 997,583 | 993,372 | ||
Dryden Senior Loan Fund, 2013-26A, “AR”, CLO, FLR, 6.16% (LIBOR - 3mo. + 0.9%), 4/15/2029 (n) | 1,749,939 | 1,734,702 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
Dryden Senior Loan Fund, 2018-55A, “A1”, CLO, FLR, 6.28% (LIBOR - 3mo. + 1.02%), 4/15/2031 (n) | $ | 4,414,000 | $ 4,368,801 | |
GLS Auto Select Receivables Trust, 2023-1A, “A2”, 6.27%, 8/16/2027 (n) | 1,888,095 | 1,883,468 | ||
GMAC Mortgage Corp. Loan Trust, FGIC, 5.805%, 10/25/2036 | 93,589 | 92,574 | ||
GS Mortgage Securities Trust, 2015-GC30, “A4”, 3.382%, 5/10/2050 | 4,243,101 | 4,019,978 | ||
JPMBB Commercial Mortgage Securities Trust, 2014-C26, “A4”, 3.494%, 1/15/2048 | 4,880,000 | 4,657,580 | ||
JPMBB Commercial Mortgage Securities Trust, 2015-C28, “A4”, 3.227%, 10/15/2048 | 3,256,792 | 3,070,670 | ||
LCCM 2021-FL2 Trust, “B”, FLR, 7.161% (LIBOR - 1mo. + 1.9%), 12/13/2038 (n) | 2,562,000 | 2,500,650 | ||
LoanCore 2021-CRE5 Ltd., “AS”, FLR, 6.943% (LIBOR - 1mo. + 1.75%), 7/15/2036 (n) | 5,288,000 | 4,947,727 | ||
MF1 2020-FL4 Ltd., “A”, FLR, 6.961% (LIBOR - 1mo. + 1.7%), 11/15/2035 (n) | 884,058 | 876,244 | ||
MF1 2021-FL5 Ltd., “AS”, FLR, 6.461% (LIBOR - 1mo. + 1.2%), 7/15/2036 (n) | 5,459,500 | 5,297,751 | ||
MF1 2022-FL8 Ltd., “B”, FLR, 7.017% (SOFR - 30 day + 1.95%), 2/19/2037 (n) | 2,251,053 | 2,152,259 | ||
MidOcean Credit CLO, 2013-2A, “BR”, FLR, 6.949% (LIBOR - 3mo. + 1.65%), 1/29/2030 (n) | 3,932,725 | 3,892,702 | ||
Morgan Stanley Bank of America Merrill Lynch Trust, 2017-C34, “A4”, 3.536%, 11/15/2052 | 1,600,004 | 1,463,325 | ||
Neuberger Berman CLO Ltd., 2013-15A, “BR2”, FLR, 6.61% (LIBOR - 3mo. + 1.35%), 10/15/2029 (n) | 1,750,540 | 1,708,888 | ||
Neuberger Berman CLO Ltd., 2015-20A, “ARR”, FLR, 6.42% (LIBOR - 3mo. + 1.16%), 7/15/2034 (n) | 1,900,000 | 1,870,328 | ||
Oaktree CLO 2019-1A Ltd., “BR”, FLR, 7.023% (LIBOR - 3mo. + 1.75%), 4/22/2030 (n) | 5,195,227 | 5,040,227 | ||
OneMain Financial Issuance Trust 2022-3A, “A”, 5.94%, 5/15/2034 (n) | 2,137,000 | 2,125,941 | ||
PFP III 2021-7 Ltd., “AS”, FLR, 6.343% (LIBOR - 1mo. + 1.15%), 4/14/2038 (n) | 3,912,305 | 3,796,594 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL5, “A”, FLR, 6.15% (LIBOR - 1mo. + 1%), 4/25/2038 (n) | 1,654,340 | 1,617,769 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL7, “B”, FLR, 6.95% (LIBOR - 1mo. + 1.8%), 11/25/2036 (n) | 1,130,000 | 1,087,154 | ||
Residential Funding Mortgage Securities, Inc., FGIC, 4.223%, 12/25/2035 | 63,221 | 62,785 | ||
Santander Drive Auto Receivables Trust, 2022-6, “A2”, 4.37%, 5/15/2025 | 180,490 | 180,210 | ||
Starwood Commercial Mortgage, 2022-FL3, “AS”, FLR, 6.867% (SOFR - 30 day + 1.8%), 11/15/2038 (n) | 5,210,500 | 4,982,348 | ||
Toyota Lease Owner Trust, 2023-A, “A2”, 5.3%, 8/20/2025 (n) | 505,000 | 502,621 | ||
TPG Real Estate Finance, 2021-FL4, “A”, FLR, 6.358% (LIBOR - 1mo. + 1.2%), 3/15/2038 (n) | 4,496,301 | 4,346,291 | ||
Verizon Owner Trust, 2020-A, “B”, 1.98%, 7/22/2024 | 199,607 | 199,254 | ||
Voya CLO 2012-4A Ltd., “A2R3”, FLR, 6.698% (LIBOR - 3mo. + 1.45%), 10/15/2030 (n) | 2,010,166 | 1,938,262 | ||
Wells Fargo Commercial Mortgage Trust, 2015-C28, “A4”, 3.54%, 5/15/2048 | 4,315,766 | 4,100,259 | ||
$124,224,548 | ||||
Automotive – 0.4% | ||||
Hyundai Capital America, 2.65%, 2/10/2025 (n) | $ | 804,000 | $ 761,943 | |
Lear Corp., 4.25%, 5/15/2029 | 656,000 | 612,641 | ||
Magna International, Inc., 2.45%, 6/15/2030 | 1,902,000 | 1,610,378 | ||
Stellantis N.V., 2.691%, 9/15/2031 (n) | 2,944,000 | 2,352,508 | ||
Volkswagen Group of America Finance LLC, 3.35%, 5/13/2025 (n) | 3,607,000 | 3,454,566 | ||
$8,792,036 | ||||
Broadcasting – 0.3% | ||||
Walt Disney Co., 3.5%, 5/13/2040 | $ | 4,664,000 | $ 3,856,254 | |
WarnerMedia Holdings, Inc., 5.05%, 3/15/2042 | 1,937,000 | 1,632,634 | ||
WarnerMedia Holdings, Inc., 5.141%, 3/15/2052 | 1,692,000 | 1,377,707 | ||
$6,866,595 | ||||
Brokerage & Asset Managers – 0.4% | ||||
Charles Schwab Corp., 5.853% to 5/19/2033, FLR (SOFR - 1 day + 2.5%) to 5/19/2034 | $ | 2,941,000 | $ 2,984,779 | |
Intercontinental Exchange, Inc., 2.1%, 6/15/2030 | 2,155,000 | 1,796,753 | ||
LPL Holdings, Inc., 4.375%, 5/15/2031 (n) | 2,431,000 | 2,100,304 | ||
Morgan Stanley Domestic Holdings, Inc., 4.5%, 6/20/2028 | 975,000 | 939,133 | ||
Raymond James Financial, Inc., 4.95%, 7/15/2046 | 2,057,000 | 1,855,124 | ||
$9,676,093 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Building – 0.2% | ||||
Martin Marietta Materials, Inc., 2.5%, 3/15/2030 | $ | 190,000 | $ 160,534 | |
Masco Corp., 2%, 2/15/2031 | 3,622,000 | 2,857,132 | ||
Vulcan Materials Co., 3.5%, 6/01/2030 | 380,000 | 343,304 | ||
$3,360,970 | ||||
Business Services – 0.7% | ||||
Equinix, Inc., 2.625%, 11/18/2024 | $ | 2,863,000 | $ 2,734,101 | |
Equinix, Inc., 1.8%, 7/15/2027 | 1,829,000 | 1,584,513 | ||
Equinix, Inc., 2.5%, 5/15/2031 | 2,363,000 | 1,923,943 | ||
Experian Finance PLC, 4.25%, 2/01/2029 (n) | 1,450,000 | 1,373,725 | ||
Fiserv, Inc., 2.65%, 6/01/2030 | 730,000 | 622,110 | ||
Global Payments, Inc., 1.2%, 3/01/2026 | 2,011,000 | 1,787,126 | ||
Global Payments, Inc., 2.9%, 11/15/2031 | 1,699,000 | 1,382,159 | ||
RELX Capital, Inc., 3%, 5/22/2030 | 620,000 | 552,736 | ||
Verisk Analytics, Inc., 4.125%, 3/15/2029 | 1,857,000 | 1,772,636 | ||
Verisk Analytics, Inc., 5.75%, 4/01/2033 | 1,422,000 | 1,488,683 | ||
$15,221,732 | ||||
Cable TV – 0.4% | ||||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 6.384%, 10/23/2035 | $ | 1,053,000 | $ 1,026,343 | |
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 3.5%, 6/01/2041 | 2,122,000 | 1,435,330 | ||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 5.375%, 5/01/2047 | 430,000 | 355,419 | ||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 5.25%, 4/01/2053 | 1,734,000 | 1,400,522 | ||
Cox Communications, Inc., 1.8%, 10/01/2030 (n) | 1,333,000 | 1,048,527 | ||
Time Warner Entertainment Co. LP, 8.375%, 7/15/2033 | 2,526,000 | 2,774,739 | ||
$8,040,880 | ||||
Chemicals – 0.1% | ||||
RPM International, Inc., 2.95%, 1/15/2032 | $ | 1,427,000 | $ 1,128,856 | |
Sherwin-Williams Co., 2.3%, 5/15/2030 | 1,542,000 | 1,294,796 | ||
$2,423,652 | ||||
Computer Software – 0.1% | ||||
Oracle Corp., 4.9%, 2/06/2033 | $ | 740,000 | $ 718,321 | |
Roper Technologies, Inc., 4.2%, 9/15/2028 | 675,000 | 647,649 | ||
Roper Technologies, Inc., 2.95%, 9/15/2029 | 411,000 | 363,340 | ||
Roper Technologies, Inc., 2%, 6/30/2030 | 1,302,000 | 1,064,118 | ||
$2,793,428 | ||||
Conglomerates – 0.2% | ||||
Carrier Global Corp., 3.377%, 4/05/2040 | $ | 3,222,000 | $ 2,473,451 | |
Westinghouse Air Brake Technologies Corp., 3.2%, 6/15/2025 | 808,000 | 766,906 | ||
Westinghouse Air Brake Technologies Corp., 4.95%, 9/15/2028 | 2,112,000 | 2,034,329 | ||
$5,274,686 | ||||
Consumer Products – 0.2% | ||||
GSK Consumer Healthcare Capital US LLC, 3.375%, 3/24/2029 | $ | 1,861,000 | $ 1,690,945 | |
Kenvue, Inc., 4.9%, 3/22/2033 (n) | 1,983,000 | 2,006,429 | ||
$3,697,374 | ||||
Consumer Services – 0.1% | ||||
Booking Holdings, Inc., 4.625%, 4/13/2030 | $ | 1,430,000 | $ 1,393,337 | |
Electrical Equipment – 0.1% | ||||
Arrow Electronics, Inc., 2.95%, 2/15/2032 | $ | 2,690,000 | $ 2,219,927 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Electronics – 0.2% | ||||
Broadcom, Inc., 4.15%, 11/15/2030 | $ | 505,000 | $ 464,625 | |
Broadcom, Inc., 4.3%, 11/15/2032 | 1,329,000 | 1,219,065 | ||
Broadcom, Inc., 3.469%, 4/15/2034 (n) | 1,184,000 | 971,246 | ||
Broadcom, Inc., 3.187%, 11/15/2036 (n) | 2,359,000 | 1,782,821 | ||
Broadcom, Inc., 4.926%, 5/15/2037 (n) | 683,000 | 618,118 | ||
$5,055,875 | ||||
Energy - Integrated – 0.3% | ||||
BP Capital Markets America, Inc., 2.721%, 1/12/2032 | $ | 4,182,000 | $ 3,550,747 | |
Eni S.p.A., 4.75%, 9/12/2028 (n) | 3,564,000 | 3,479,597 | ||
$7,030,344 | ||||
Financial Institutions – 0.6% | ||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 4.875%, 1/16/2024 | $ | 362,000 | $ 359,456 | |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 2.45%, 10/29/2026 | 4,225,000 | 3,773,562 | ||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.65%, 7/21/2027 | 2,329,000 | 2,133,001 | ||
Air Lease Corp., 2.2%, 1/15/2027 | 1,394,000 | 1,236,120 | ||
Air Lease Corp., 2.875%, 1/15/2032 | 1,830,000 | 1,469,396 | ||
Avolon Holdings Funding Ltd., 4.375%, 5/01/2026 (n) | 682,000 | 637,242 | ||
Avolon Holdings Funding Ltd., 3.25%, 2/15/2027 (n) | 2,183,000 | 1,944,842 | ||
Avolon Holdings Funding Ltd., 2.528%, 11/18/2027 (n) | 1,821,000 | 1,535,281 | ||
Park Aerospace Holdings Ltd., 5.5%, 2/15/2024 (n) | 639,000 | 631,721 | ||
$13,720,621 | ||||
Food & Beverages – 0.4% | ||||
Anheuser-Busch InBev S.A., 8%, 11/15/2039 | $ | 2,950,000 | $ 3,721,574 | |
Anheuser-Busch InBev Worldwide, Inc., 4.375%, 4/15/2038 | 737,000 | 682,371 | ||
Constellation Brands, Inc., 3.5%, 5/09/2027 | 1,544,000 | 1,460,897 | ||
Diageo Capital PLC, 2.375%, 10/24/2029 | 2,618,000 | 2,269,099 | ||
Keurig Dr Pepper, Inc., 3.2%, 5/01/2030 | 304,000 | 272,588 | ||
$8,406,529 | ||||
Gaming & Lodging – 0.3% | ||||
GLP Capital LP/GLP Financing II, Inc., 5.3%, 1/15/2029 | $ | 1,593,000 | $ 1,516,780 | |
Las Vegas Sands Corp., 3.9%, 8/08/2029 | 783,000 | 698,640 | ||
Marriott International, Inc., 4%, 4/15/2028 | 1,731,000 | 1,632,449 | ||
Marriott International, Inc., 4.625%, 6/15/2030 | 1,979,000 | 1,894,855 | ||
Marriott International, Inc., 2.85%, 4/15/2031 | 7,000 | 5,886 | ||
Marriott International, Inc., 2.75%, 10/15/2033 | 1,600,000 | 1,271,592 | ||
$7,020,202 | ||||
Insurance – 0.4% | ||||
AIA Group Ltd., 3.375%, 4/07/2030 (n) | $ | 2,338,000 | $ 2,137,297 | |
Corebridge Financial, Inc., 3.9%, 4/05/2032 | 3,078,000 | 2,674,465 | ||
Metropolitan Life Global Funding I, 3.3%, 3/21/2029 (n) | 4,200,000 | 3,787,815 | ||
$8,599,577 | ||||
Insurance - Health – 0.2% | ||||
Humana, Inc., 3.7%, 3/23/2029 | $ | 1,850,000 | $ 1,694,369 | |
Humana, Inc., 5.875%, 3/01/2033 | 1,686,000 | 1,752,095 | ||
$3,446,464 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Insurance - Property & Casualty – 0.4% | ||||
Aon Corp., 4.5%, 12/15/2028 | $ | 1,979,000 | $ 1,904,109 | |
Aon Corp., 3.75%, 5/02/2029 | 1,893,000 | 1,752,267 | ||
Aon Corp./Aon Global Holdings PLC, 2.6%, 12/02/2031 | 172,000 | 141,646 | ||
Brown & Brown, Inc., 4.2%, 3/17/2032 | 2,124,000 | 1,907,409 | ||
Fairfax Financial Holdings Ltd., 5.625%, 8/16/2032 | 3,006,000 | 2,903,739 | ||
Liberty Mutual Group, Inc., 3.951%, 10/15/2050 (n) | 1,087,000 | 794,965 | ||
$9,404,135 | ||||
International Market Quasi-Sovereign – 0.0% | ||||
Electricite de France S.A., 6.9%, 5/23/2053 (n) | $ | 629,000 | $ 651,785 | |
Machinery & Tools – 0.2% | ||||
Ashtead Capital, Inc., 5.5%, 8/11/2032 (n) | $ | 2,832,000 | $ 2,738,158 | |
CNH Industrial Capital LLC, 4.2%, 1/15/2024 | 1,679,000 | 1,662,298 | ||
CNH Industrial Capital LLC, 1.875%, 1/15/2026 | 448,000 | 409,093 | ||
$4,809,549 | ||||
Major Banks – 2.6% | ||||
Bank of America Corp., 3.366% to 1/23/2025, FLR (LIBOR - 3mo. + 0.81%) to 1/23/2026 | $ | 1,626,000 | $ 1,557,891 | |
Bank of America Corp., 3.5%, 4/19/2026 | 1,361,000 | 1,305,542 | ||
Bank of America Corp., 2.572% to 10/20/2031, FLR (SOFR + 1.21%) to 10/20/2032 | 3,452,000 | 2,811,655 | ||
Barclays PLC, 2.894% to 11/24/2031, FLR (CMT - 1yr. + 1.3%) to 11/24/2032 | 877,000 | 690,173 | ||
Barclays PLC, 7.437% to 11/02/2032, FLR (CMT - 1yr. + 3.5%) to 11/02/2033 | 1,993,000 | 2,156,207 | ||
Capital One Financial Corp., 3.75%, 3/09/2027 | 1,728,000 | 1,609,515 | ||
Capital One Financial Corp., 3.273% to 3/01/2029, FLR (SOFR - 1 day + 1.79%) to 3/01/2030 | 3,742,000 | 3,177,253 | ||
Deutsche Bank AG, 2.311% to 11/16/2026, FLR (SOFR - 1 day + 1.219%) to 11/16/2027 | 880,000 | 756,217 | ||
Deutsche Bank AG, 6.72% to 1/18/2028, FLR (SOFR - 1 day + 3.18%) to 1/18/2029 | 2,180,000 | 2,183,108 | ||
Goldman Sachs Group, Inc., 2.6%, 2/07/2030 | 2,258,000 | 1,923,088 | ||
Goldman Sachs Group, Inc., 2.383% to 7/21/2031, FLR (SOFR - 1 day + 1.248%) to 7/21/2032 | 2,831,000 | 2,267,628 | ||
HSBC Holdings PLC, 4.7% to 9/09/2031, FLR (CMT - 1yr. + 3.25%) to 9/09/2169 | 922,000 | 689,574 | ||
HSBC Holdings PLC, 4% to 9/09/2026, FLR (CMT - 1yr. + 3.222%) to 9/09/2170 | 442,000 | 373,804 | ||
JPMorgan Chase & Co., 3.782% to 2/01/2027, FLR (LIBOR - 3mo. + 1.337%) to 2/01/2028 | 3,163,000 | 3,008,769 | ||
JPMorgan Chase & Co., 2.739% to 10/15/2029, FLR (SOFR - 1 day + 1.51%) to 10/15/2030 | 897,000 | 772,696 | ||
JPMorgan Chase & Co., 2.956% to 5/13/2030, FLR (SOFR - 1 day + 2.515%) to 5/13/2031 | 476,000 | 408,146 | ||
JPMorgan Chase & Co., 2.545% to 11/08/2031, FLR (SOFR - 1 day + 1.18%) to 11/08/2032 | 4,631,000 | 3,794,291 | ||
JPMorgan Chase & Co., 2.963% to 1/25/2032, FLR (SOFR - 1 day + 1.26%) to 1/25/2033 | 1,781,000 | 1,500,338 | ||
JPMorgan Chase & Co., 3.897% to 1/23/2048, FLR (LIBOR - 3mo. + 1.22%) to 1/23/2049 | 938,000 | 758,211 | ||
Mitsubishi UFJ Financial Group, Inc., 2.852% to 1/19/2032, FLR (CMT - 1yr. + 1.1%) to 1/19/2033 | 2,674,000 | 2,203,784 | ||
Morgan Stanley, 3.875%, 4/29/2024 | 522,000 | 514,352 | ||
Morgan Stanley, 4%, 7/23/2025 | 1,063,000 | 1,032,048 | ||
Morgan Stanley, 2.699% to 1/22/2030, FLR (SOFR - 1 day + 1.143%) to 1/22/2031 | 2,483,000 | 2,111,775 | ||
Morgan Stanley, 2.943% to 1/21/2032, FLR (SOFR - 1 day + 1.29%) to 1/21/2033 | 3,130,000 | 2,601,742 | ||
Royal Bank of Canada, 1.15%, 6/10/2025 | 2,774,000 | 2,560,688 | ||
State Street Corp., 2.901% to 3/30/2025, FLR (SOFR + 2.6%) to 3/30/2026 | 344,000 | 328,052 | ||
Sumitomo Mitsui Financial Group, Inc., 2.472%, 1/14/2029 | 5,230,000 | 4,459,715 | ||
UBS Group AG, 2.095% to 2/11/2031, FLR (CMT - 1yr. + 1.0%) to 2/11/2032 (n) | 6,416,000 | 4,859,333 | ||
Wells Fargo & Co., 3.35% to 3/02/2032, FLR (SOFR - 1 day + 1.5%) to 3/02/2033 | 5,150,000 | 4,407,646 | ||
$56,823,241 | ||||
Medical & Health Technology & Services – 0.4% | ||||
Adventist Health System/West, 5.43%, 3/01/2032 | $ | 2,533,000 | $ 2,511,087 | |
Alcon Finance Corp., 2.6%, 5/27/2030 (n) | 302,000 | 257,406 | ||
Cigna Corp., 3.2%, 3/15/2040 | 474,000 | 364,377 | ||
HCA, Inc., 4.125%, 6/15/2029 | 1,809,000 | 1,674,028 | ||
HCA, Inc., 5.125%, 6/15/2039 | 1,932,000 | 1,792,281 | ||
HCA, Inc., 4.375%, 3/15/2042 (n) | 1,202,000 | 992,973 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Medical & Health Technology & Services – continued | ||||
Laboratory Corp. of America Holdings, 4.7%, 2/01/2045 | $ | 980,000 | $ 848,771 | |
Northwell Healthcare, Inc., 3.979%, 11/01/2046 | 153,000 | 119,570 | ||
Northwell Healthcare, Inc., 4.26%, 11/01/2047 | 1,205,000 | 988,915 | ||
$9,549,408 | ||||
Medical Equipment – 0.1% | ||||
Boston Scientific Corp., 2.65%, 6/01/2030 | $ | 1,590,000 | $ 1,385,320 | |
Metals & Mining – 0.4% | ||||
Anglo American Capital PLC, 3.875%, 3/16/2029 (n) | $ | 496,000 | $ 450,740 | |
Anglo American Capital PLC, 5.625%, 4/01/2030 (n) | 1,394,000 | 1,387,625 | ||
Anglo American Capital PLC, 2.625%, 9/10/2030 (n) | 4,564,000 | 3,764,761 | ||
Glencore Funding LLC, 2.5%, 9/01/2030 (n) | 1,695,000 | 1,387,912 | ||
Glencore Funding LLC, 2.85%, 4/27/2031 (n) | 709,000 | 585,235 | ||
$7,576,273 | ||||
Midstream – 0.6% | ||||
Cheniere Corpus Christi Holdings LLC, 3.7%, 11/15/2029 | $ | 1,833,000 | $ 1,659,624 | |
Enbridge, Inc., 2.5%, 1/15/2025 | 969,000 | 921,520 | ||
Energy Transfer LP, 5.75%, 2/15/2033 | 2,187,000 | 2,201,316 | ||
Kinder Morgan Energy Partners LP, 4.15%, 2/01/2024 | 1,030,000 | 1,019,905 | ||
ONEOK, Inc., 4.95%, 7/13/2047 | 2,331,000 | 1,920,865 | ||
Plains All American Pipeline LP, 3.8%, 9/15/2030 | 1,881,000 | 1,668,987 | ||
Sabine Pass Liquefaction LLC, 4.5%, 5/15/2030 | 512,000 | 486,688 | ||
Spectra Energy Partners LP, 3.375%, 10/15/2026 | 828,000 | 777,372 | ||
Targa Resources Corp., 4.2%, 2/01/2033 | 746,000 | 660,313 | ||
Targa Resources Corp., 6.125%, 3/15/2033 | 2,281,000 | 2,330,703 | ||
$13,647,293 | ||||
Mortgage-Backed – 13.0% | ||||
Fannie Mae, 5%, 12/01/2023 - 3/01/2041 | $ | 1,637,126 | $ 1,644,162 | |
Fannie Mae, 3%, 11/01/2028 - 9/01/2046 | 3,271,456 | 3,044,831 | ||
Fannie Mae, 6.5%, 6/01/2031 - 7/01/2037 | 612,013 | 630,179 | ||
Fannie Mae, 2.5%, 11/01/2031 | 58,123 | 53,765 | ||
Fannie Mae, 5.5%, 2/01/2033 - 4/01/2040 | 3,820,770 | 3,860,802 | ||
Fannie Mae, 3%, 2/25/2033 (i) | 277,411 | 23,997 | ||
Fannie Mae, 4.5%, 8/01/2033 - 6/01/2044 | 3,676,398 | 3,625,755 | ||
Fannie Mae, 6%, 1/01/2034 - 7/01/2037 | 2,230,063 | 2,272,485 | ||
Fannie Mae, 3.5%, 4/01/2038 - 7/01/2046 | 9,777,686 | 9,117,762 | ||
Fannie Mae, 3.25%, 5/25/2040 | 85,685 | 78,557 | ||
Fannie Mae, 4%, 9/01/2040 - 6/01/2047 | 6,817,128 | 6,547,296 | ||
Fannie Mae, 2%, 10/25/2040 - 4/25/2046 | 224,879 | 203,053 | ||
Fannie Mae, 4%, 7/25/2046 (i) | 290,915 | 54,010 | ||
Fannie Mae, UMBS, 5.5%, 10/01/2025 - 3/01/2053 | 6,067,782 | 6,045,203 | ||
Fannie Mae, UMBS, 2%, 9/01/2036 - 3/01/2052 | 29,936,712 | 25,143,839 | ||
Fannie Mae, UMBS, 2.5%, 11/01/2036 - 5/01/2052 | 43,866,438 | 37,601,130 | ||
Fannie Mae, UMBS, 5%, 10/01/2037 - 6/01/2053 | 4,555,984 | 4,475,673 | ||
Fannie Mae, UMBS, 4.5%, 4/01/2038 - 10/01/2052 | 3,917,390 | 3,787,942 | ||
Fannie Mae, UMBS, 1.5%, 2/01/2042 - 9/01/2051 | 1,687,760 | 1,311,926 | ||
Fannie Mae, UMBS, 3%, 6/01/2051 - 8/01/2052 | 15,243,175 | 13,448,145 | ||
Fannie Mae, UMBS, 3.5%, 5/01/2052 - 4/01/2053 | 3,441,712 | 3,136,944 | ||
Fannie Mae, UMBS, 6%, 12/01/2052 - 2/01/2053 | 933,804 | 959,603 | ||
Freddie Mac, 3.06%, 7/25/2023 | 9,301 | 9,267 | ||
Freddie Mac, 3.458%, 8/25/2023 | 804,848 | 801,600 | ||
Freddie Mac, 1.041%, 4/25/2024 (i) | 4,002,013 | 19,406 | ||
Freddie Mac, 0.636%, 7/25/2024 (i) | 14,179,000 | 79,642 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mortgage-Backed – continued | ||||
Freddie Mac, 0.726%, 7/25/2024 (i) | $ | 4,201,178 | $ 17,525 | |
Freddie Mac, 4.5%, 8/01/2024 - 5/01/2042 | 623,917 | 616,770 | ||
Freddie Mac, 0.436%, 8/25/2024 (i) | 15,246,000 | 79,523 | ||
Freddie Mac, 0.504%, 8/25/2024 (i) | 24,622,285 | 99,090 | ||
Freddie Mac, 3.064%, 8/25/2024 | 767,062 | 746,707 | ||
Freddie Mac, 0.465%, 10/25/2024 (i) | 17,839,786 | 56,784 | ||
Freddie Mac, 0.399%, 11/25/2024 (i) | 15,385,000 | 58,109 | ||
Freddie Mac, 2.67%, 12/25/2024 | 1,261,000 | 1,213,253 | ||
Freddie Mac, 0.777%, 6/25/2027 (i) | 13,682,000 | 326,766 | ||
Freddie Mac, 0.884%, 6/25/2027 (i) | 4,575,524 | 110,515 | ||
Freddie Mac, 0.706%, 7/25/2027 (i) | 11,743,381 | 227,245 | ||
Freddie Mac, 0.458%, 8/25/2027 (i) | 9,650,000 | 131,015 | ||
Freddie Mac, 0.553%, 8/25/2027 (i) | 6,451,040 | 96,700 | ||
Freddie Mac, 0.406%, 9/25/2027 (i) | 10,419,000 | 121,920 | ||
Freddie Mac, 0.324%, 11/25/2027 (i) | 16,290,000 | 145,813 | ||
Freddie Mac, 0.414%, 11/25/2027 (i) | 11,432,446 | 121,753 | ||
Freddie Mac, 0.456%, 11/25/2027 (i) | 10,188,874 | 126,210 | ||
Freddie Mac, 0.375%, 12/25/2027 (i) | 10,109,000 | 109,450 | ||
Freddie Mac, 0.415%, 12/25/2027 (i) | 11,210,000 | 141,585 | ||
Freddie Mac, 0.492%, 12/25/2027 (i) | 17,395,869 | 248,942 | ||
Freddie Mac, 1.219%, 7/25/2029 (i) | 825,995 | 44,119 | ||
Freddie Mac, 1.267%, 8/25/2029 (i) | 5,181,787 | 291,585 | ||
Freddie Mac, 1.916%, 4/25/2030 (i) | 900,000 | 91,259 | ||
Freddie Mac, 1.985%, 4/25/2030 (i) | 2,701,417 | 276,971 | ||
Freddie Mac, 1.768%, 5/25/2030 (i) | 1,301,002 | 122,726 | ||
Freddie Mac, 1.906%, 5/25/2030 (i) | 3,334,078 | 338,315 | ||
Freddie Mac, 1.436%, 6/25/2030 (i) | 1,327,631 | 102,869 | ||
Freddie Mac, 1.703%, 8/25/2030 (i) | 1,191,673 | 110,853 | ||
Freddie Mac, 1.262%, 9/25/2030 (i) | 775,587 | 53,802 | ||
Freddie Mac, 1.171%, 11/25/2030 (i) | 1,356,411 | 88,400 | ||
Freddie Mac, 0.42%, 1/25/2031 (i) | 5,320,183 | 100,988 | ||
Freddie Mac, 0.872%, 1/25/2031 (i) | 2,233,850 | 108,745 | ||
Freddie Mac, 1.026%, 1/25/2031 (i) | 1,493,151 | 86,301 | ||
Freddie Mac, 0.611%, 3/25/2031 (i) | 4,286,962 | 133,469 | ||
Freddie Mac, 0.828%, 3/25/2031 (i) | 1,837,683 | 86,479 | ||
Freddie Mac, 1.325%, 5/25/2031 (i) | 822,353 | 63,589 | ||
Freddie Mac, 1.039%, 7/25/2031 (i) | 1,237,840 | 76,177 | ||
Freddie Mac, 0.608%, 8/25/2031 (i) | 1,664,942 | 55,492 | ||
Freddie Mac, 0.632%, 9/25/2031 (i) | 5,442,448 | 183,684 | ||
Freddie Mac, 0.955%, 9/25/2031 (i) | 1,567,181 | 87,722 | ||
Freddie Mac, 0.441%, 11/25/2031 (i) | 8,030,040 | 196,068 | ||
Freddie Mac, 0.597%, 12/25/2031 (i) | 7,179,988 | 241,737 | ||
Freddie Mac, 0.665%, 12/25/2031 (i) | 12,162,189 | 465,071 | ||
Freddie Mac, 0.433%, 11/25/2032 (i) | 8,340,202 | 164,715 | ||
Freddie Mac, 5%, 9/01/2033 - 1/15/2040 | 885,159 | 888,902 | ||
Freddie Mac, 5.5%, 12/01/2033 - 2/01/2037 | 625,495 | 633,167 | ||
Freddie Mac, 6%, 4/01/2034 - 6/01/2037 | 780,988 | 800,414 | ||
Freddie Mac, 6.5%, 5/01/2034 - 7/01/2037 | 386,046 | 396,805 | ||
Freddie Mac, 5.5%, 2/15/2036 (i) | 54,342 | 8,534 | ||
Freddie Mac, 4%, 8/01/2037 - 4/01/2044 | 2,245,911 | 2,160,456 | ||
Freddie Mac, 3.5%, 11/01/2037 - 10/25/2058 | 6,628,912 | 6,182,315 | ||
Freddie Mac, 3%, 1/01/2038 - 2/25/2059 | 8,520,788 | 7,687,118 | ||
Freddie Mac, 4.5%, 12/15/2040 (i) | 38,118 | 3,181 | ||
Freddie Mac, 4%, 8/15/2044 (i) | 57,496 | 6,227 | ||
Freddie Mac, 3.25%, 11/25/2061 | 607,279 | 529,156 | ||
Freddie Mac, UMBS, 2%, 12/01/2031 - 5/01/2052 | 33,122,601 | 27,514,793 | ||
Freddie Mac, UMBS, 6.5%, 10/01/2034 | 22,887 | 23,613 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Mortgage-Backed – continued | ||||
Freddie Mac, UMBS, 5%, 10/01/2035 - 3/01/2053 | $ | 1,743,155 | $ 1,713,729 | |
Freddie Mac, UMBS, 6%, 1/01/2036 - 1/01/2053 | 1,065,528 | 1,075,024 | ||
Freddie Mac, UMBS, 3%, 4/01/2037 - 6/01/2052 | 3,837,048 | 3,391,560 | ||
Freddie Mac, UMBS, 2.5%, 5/01/2037 - 5/01/2052 | 6,872,491 | 5,918,236 | ||
Freddie Mac, UMBS, 3.5%, 12/01/2046 - 5/01/2052 | 2,284,591 | 2,099,003 | ||
Freddie Mac, UMBS, 4%, 8/01/2047 - 10/01/2052 | 5,985,856 | 5,628,016 | ||
Freddie Mac, UMBS, 1.5%, 3/01/2051 - 2/01/2052 | 2,238,161 | 1,732,894 | ||
Freddie Mac, UMBS, 5.5%, 7/01/2052 - 4/01/2053 | 1,127,778 | 1,130,423 | ||
Freddie Mac, UMBS, 4.5%, 10/01/2052 | 3,104,935 | 2,985,571 | ||
Ginnie Mae, 6%, 9/15/2032 - 1/15/2038 | 946,579 | 979,222 | ||
Ginnie Mae, 5.5%, 5/15/2033 - 4/20/2053 | 4,355,901 | 4,347,652 | ||
Ginnie Mae, 4.5%, 7/20/2033 - 12/20/2052 | 8,511,799 | 8,234,857 | ||
Ginnie Mae, 5%, 7/20/2033 - 5/20/2053 | 8,743,663 | 8,600,659 | ||
Ginnie Mae, 4%, 1/20/2041 - 10/20/2052 | 5,245,273 | 4,994,906 | ||
Ginnie Mae, 3.5%, 12/15/2041 - 11/20/2052 | 6,704,705 | 6,247,479 | ||
Ginnie Mae, 3%, 4/20/2045 - 10/20/2052 | 10,778,714 | 9,700,074 | ||
Ginnie Mae, 2.5%, 8/20/2051 - 4/20/2052 | 15,839,402 | 13,720,994 | ||
Ginnie Mae, 2%, 1/20/2052 - 3/20/2052 | 7,059,190 | 5,932,810 | ||
Ginnie Mae, 0.588%, 2/16/2059 (i) | 2,384,717 | 78,516 | ||
Ginnie Mae, TBA, 5%, 7/20/2053 | 125,000 | 122,832 | ||
Ginnie Mae, TBA, 5.5%, 7/20/2053 | 800,000 | 796,250 | ||
Ginnie Mae, TBA, 6%, 8/21/2053 | 1,550,000 | 1,559,566 | ||
UMBS, TBA, 2%, 7/18/2038 - 7/13/2053 | 5,000,000 | 4,158,412 | ||
UMBS, TBA, 4.5%, 7/18/2038 | 875,000 | 857,910 | ||
UMBS, TBA, 5%, 7/18/2038 - 7/13/2053 | 2,375,000 | 2,339,667 | ||
UMBS, TBA, 3%, 7/13/2053 | 1,475,000 | 1,298,058 | ||
$282,822,786 | ||||
Municipals – 0.5% | ||||
New Jersey Economic Development Authority State Pension Funding Rev., Taxable, “A”, NPFG, 7.425%, 2/15/2029 | $ | 2,750,000 | $ 2,953,716 | |
New Jersey Turnpike Authority Rev., Taxable (Build America Bonds), “F”, 7.414%, 1/01/2040 | 3,685,000 | 4,615,644 | ||
Rhode Island Student Loan Authority Education Loan Rev., Taxable, 6.081%, 12/01/2042 | 2,820,000 | 2,821,600 | ||
State of Florida, Taxable, “A”, 2.154%, 7/01/2030 | 1,437,000 | 1,197,749 | ||
�� $11,588,709 | ||||
Natural Gas - Distribution – 0.0% | ||||
NiSource, Inc., 5.65%, 2/01/2045 | $ | 414,000 | $ 413,625 | |
Natural Gas - Pipeline – 0.2% | ||||
APA Infrastructure Ltd., 4.2%, 3/23/2025 (n) | $ | 3,344,000 | $ 3,241,399 | |
APA Infrastructure Ltd., 4.25%, 7/15/2027 (n) | 253,000 | 241,013 | ||
$3,482,412 | ||||
Network & Telecom – 0.2% | ||||
Verizon Communications, Inc., 3.15%, 3/22/2030 | $ | 1,053,000 | $ 935,684 | |
Verizon Communications, Inc., 4.272%, 1/15/2036 | 1,477,000 | 1,331,718 | ||
Verizon Communications, Inc., 4.812%, 3/15/2039 | 1,877,000 | 1,756,112 | ||
$4,023,514 | ||||
Oils – 0.2% | ||||
Phillips 66 Co., 2.15%, 12/15/2030 | $ | 2,934,000 | $ 2,394,110 | |
Valero Energy Corp., 6.625%, 6/15/2037 | 2,124,000 | 2,279,017 | ||
$4,673,127 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Other Banks & Diversified Financials – 0.4% | ||||
Macquarie Group Ltd., 4.442% to 6/21/2032, FLR (SOFR - 1 day + 2.405%) to 6/21/2033 (n) | $ | 5,881,000 | $ 5,244,282 | |
Northern Trust Corp., 6.125%, 11/02/2032 | 2,959,000 | 3,067,723 | ||
$8,312,005 | ||||
Pollution Control – 0.0% | ||||
Republic Services, Inc., 1.45%, 2/15/2031 | $ | 851,000 | $ 667,865 | |
Real Estate - Office – 0.1% | ||||
Boston Properties LP, REIT, 2.55%, 4/01/2032 | $ | 1,316,000 | $ 991,717 | |
Real Estate - Retail – 0.1% | ||||
Brixmor Operating Partnership LP, REIT, 4.125%, 5/15/2029 | $ | 172,000 | $ 153,423 | |
Brixmor Operating Partnership LP, REIT, 4.05%, 7/01/2030 | 1,681,000 | 1,515,197 | ||
Realty Income Corp., REIT, 3.25%, 1/15/2031 | 485,000 | 423,909 | ||
$2,092,529 | ||||
Retailers – 0.2% | ||||
Alimentation Couche-Tard, Inc., 3.439%, 5/13/2041 (n) | $ | 2,106,000 | $ 1,517,452 | |
Best Buy Co., Inc., 4.45%, 10/01/2028 | 1,738,000 | 1,682,661 | ||
$3,200,113 | ||||
Specialty Stores – 0.1% | ||||
Genuine Parts Co., 2.75%, 2/01/2032 | $ | 2,771,000 | $ 2,273,775 | |
Telecommunications - Wireless – 0.6% | ||||
Crown Castle, Inc., REIT, 1.35%, 7/15/2025 | $ | 701,000 | $ 640,884 | |
Crown Castle, Inc., REIT, 3.65%, 9/01/2027 | 2,565,000 | 2,397,412 | ||
Rogers Communications, Inc., 3.8%, 3/15/2032 (n) | 5,197,000 | 4,542,811 | ||
T-Mobile USA, Inc., 2.05%, 2/15/2028 | 1,892,000 | 1,640,526 | ||
T-Mobile USA, Inc., 4.5%, 4/15/2050 | 2,244,000 | 1,925,455 | ||
Vodafone Group PLC, 5.625%, 2/10/2053 | 750,000 | 735,246 | ||
$11,882,334 | ||||
Tobacco – 0.4% | ||||
B.A.T. International Finance PLC, 4.448%, 3/16/2028 | $ | 4,200,000 | $ 3,964,419 | |
Philip Morris International, Inc., 5.125%, 11/17/2027 | 869,000 | 871,659 | ||
Philip Morris International, Inc., 5.625%, 11/17/2029 | 374,000 | 381,081 | ||
Philip Morris International, Inc., 5.125%, 2/15/2030 | 1,404,000 | 1,388,195 | ||
Philip Morris International, Inc., 5.75%, 11/17/2032 | 1,653,000 | 1,692,796 | ||
$8,298,150 | ||||
Transportation - Services – 0.1% | ||||
ERAC USA Finance LLC, 7%, 10/15/2037 (n) | $ | 1,826,000 | $ 2,086,672 | |
U.S. Government Agencies and Equivalents – 0.0% | ||||
Small Business Administration, 4.35%, 7/01/2023 | $ | 127 | $ 127 | |
Small Business Administration, 4.77%, 4/01/2024 | 14,362 | 14,160 | ||
Small Business Administration, 5.18%, 5/01/2024 | 18,803 | 18,575 | ||
Small Business Administration, 5.52%, 6/01/2024 | 866 | 862 | ||
Small Business Administration, 4.99%, 9/01/2024 | 27,399 | 26,910 | ||
Small Business Administration, 4.95%, 3/01/2025 | 1,412 | 1,402 | ||
Small Business Administration, 5.11%, 8/01/2025 | 141,573 | 139,303 | ||
$201,339 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
U.S. Treasury Obligations – 4.9% | ||||
U.S. Treasury Bonds, 1.75%, 8/15/2041 | $ | 4,700,000 | $ 3,301,934 | |
U.S. Treasury Bonds, 2.375%, 2/15/2042 | 6,600,000 | 5,138,461 | ||
U.S. Treasury Bonds, 2.875%, 5/15/2043 | 9,096,000 | 7,608,307 | ||
U.S. Treasury Bonds, 2.5%, 2/15/2045 | 9,797,000 | 7,585,021 | ||
U.S. Treasury Bonds, 3%, 11/15/2045 | 3,638,000 | 3,067,999 | ||
U.S. Treasury Bonds, 2.875%, 5/15/2049 | 900,000 | 743,871 | ||
U.S. Treasury Bonds, 2.375%, 11/15/2049 (f) | 43,390,000 | 32,398,432 | ||
U.S. Treasury Bonds, 2.25%, 2/15/2052 | 6,300,000 | 4,552,734 | ||
U.S. Treasury Notes, 0.375%, 11/30/2025 | 33,750,000 | 30,464,649 | ||
U.S. Treasury Notes, 2.5%, 3/31/2027 | 12,600,000 | 11,808,070 | ||
$106,669,478 | ||||
Utilities - Electric Power – 1.0% | ||||
American Electric Power Co., Inc., 5.95%, 11/01/2032 | $ | 1,273,000 | $ 1,327,252 | |
American Transmission Systems, Inc., 2.65%, 1/15/2032 (n) | 250,000 | 206,733 | ||
Duke Energy Carolinas LLC, 4.95%, 1/15/2033 | 3,995,000 | 3,965,408 | ||
Duke Energy Corp., 2.65%, 9/01/2026 | 294,000 | 271,723 | ||
Duke Energy Corp., 4.5%, 8/15/2032 | 3,023,000 | 2,850,045 | ||
Enel Finance International N.V., 6.8%, 10/14/2025 (n) | 926,000 | 943,247 | ||
Enel Finance International N.V., 4.75%, 5/25/2047 (n) | 392,000 | 333,445 | ||
Evergy, Inc., 2.9%, 9/15/2029 | 1,644,000 | 1,434,536 | ||
Exelon Corp., 4.05%, 4/15/2030 | 1,632,000 | 1,525,066 | ||
FirstEnergy Corp., 3.4%, 3/01/2050 | 1,078,000 | 742,915 | ||
Georgia Power Co., 3.7%, 1/30/2050 | 147,000 | 112,388 | ||
Jersey Central Power & Light Co., 4.3%, 1/15/2026 (n) | 1,333,000 | 1,289,325 | ||
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n) | 924,000 | 762,131 | ||
Oncor Electric Delivery Co. LLC, 5.75%, 3/15/2029 | 2,121,000 | 2,201,458 | ||
Pacific Gas & Electric Co., 2.1%, 8/01/2027 | 480,000 | 410,008 | ||
Pacific Gas & Electric Co., 3%, 6/15/2028 | 1,410,000 | 1,215,306 | ||
Pacific Gas & Electric Co., 2.5%, 2/01/2031 | 1,738,000 | 1,360,652 | ||
Pacific Gas & Electric Co., 3.3%, 8/01/2040 | 926,000 | 623,858 | ||
Xcel Energy, Inc., 3.4%, 6/01/2030 | 968,000 | 861,977 | ||
$22,437,473 | ||||
Utilities - Gas – 0.0% | ||||
East Ohio Gas Co., 2%, 6/15/2030 (n) | $ | 1,135,000 | $ 914,386 | |
Total Bonds (Identified Cost, $914,957,978) | $831,142,550 | |||
Preferred Stocks – 0.8% | ||||
Computer Software - Systems – 0.3% | ||||
Samsung Electronics Co. Ltd. | 122,507 | $ 5,559,969 | ||
Consumer Products – 0.5% | ||||
Henkel AG & Co. KGaA | 149,739 | $ 11,970,336 | ||
Total Preferred Stocks (Identified Cost, $17,159,640) | $17,530,305 | |||
Investment Companies (h) – 1.1% | ||||
Money Market Funds – 1.1% | ||||
MFS Institutional Money Market Portfolio, 5.04% (v) (Identified Cost, $24,055,514) | 24,056,737 | $ 24,061,548 | ||
Other Assets, Less Liabilities – 0.1% | 2,718,631 | |||
Net Assets – 100.0% | $2,179,580,583 |
(a) | Non-income producing security. | |||
(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 $24,061,548 and $2,152,800,404, 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 $171,204,219, representing 7.9% 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 |
Derivative Contracts at 6/30/23 | ||||||
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 30 yr | Long | USD | 140 | $19,070,625 | September – 2023 | $221,512 |
U.S. Treasury Ultra Note 10 yr | Short | USD | 272 | 32,215,000 | September – 2023 | 389,236 |
$610,748 | ||||||
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 2 yr | Long | USD | 44 | $8,947,125 | September – 2023 | $(94,849) |
U.S. Treasury Note 5 yr | Long | USD | 617 | 66,076,844 | September – 2023 | (1,239,995) |
$(1,334,844) |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/23Assets | |
Investments in unaffiliated issuers, at value (identified cost, $1,735,361,449) | $2,152,800,404 |
Investments in affiliated issuers, at value (identified cost, $24,055,514) | 24,061,548 |
Cash | 34,702 |
Foreign currency, at value (identified cost, $28,779) | 28,893 |
Receivables for | |
Net daily variation margin on open futures contracts | 92,901 |
Investments sold | 7,404,848 |
TBA sale commitments | 4,673,272 |
Fund shares sold | 154,275 |
Interest and dividends | 8,210,158 |
Receivable from investment adviser | 74,285 |
Other assets | 3,434 |
Total assets | $2,197,538,720 |
Liabilities | |
Payables for | |
Investments purchased | $705,410 |
TBA purchase commitments | 15,868,563 |
Fund shares reacquired | 1,136,703 |
Payable to affiliates | |
Administrative services fee | 1,753 |
Shareholder servicing costs | 466 |
Distribution and/or service fees | 16,078 |
Accrued expenses and other liabilities | 229,164 |
Total liabilities | $17,958,137 |
Net assets | $2,179,580,583 |
Net assets consist of | |
Paid-in capital | $1,563,352,454 |
Total distributable earnings (loss) | 616,228,129 |
Net assets | $2,179,580,583 |
Shares of beneficial interest outstanding | 94,174,737 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $996,658,648 | 42,472,724 | $23.47 |
Service Class | 1,182,921,935 | 51,702,013 | 22.88 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/23 | |
Net investment income (loss) | |
Income | |
Interest | $16,512,588 |
Dividends | 16,152,837 |
Dividends from affiliated issuers | 647,074 |
Other | 112,915 |
Income on securities loaned | 1,844 |
Foreign taxes withheld | (329,471) |
Total investment income | $33,097,787 |
Expenses | |
Management fee | $7,267,299 |
Distribution and/or service fees | 1,464,711 |
Shareholder servicing costs | 10,706 |
Administrative services fee | 163,037 |
Independent Trustees' compensation | 18,750 |
Custodian fee | 60,792 |
Shareholder communications | 24,524 |
Audit and tax fees | 42,026 |
Legal fees | 5,173 |
Miscellaneous | 39,827 |
Total expenses | $9,096,845 |
Reduction of expenses by investment adviser | (1,031,500) |
Net expenses | $8,065,345 |
Net investment income (loss) | $25,032,442 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $55,906,159 |
Affiliated issuers | 2,908 |
Futures contracts | (781,910) |
Foreign currency | (6,389) |
Net realized gain (loss) | $55,120,768 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $11,113,791 |
Affiliated issuers | (1,981) |
Futures contracts | (248,383) |
Translation of assets and liabilities in foreign currencies | 11,340 |
Net unrealized gain (loss) | $10,874,767 |
Net realized and unrealized gain (loss) | $65,995,535 |
Change in net assets from operations | $91,027,977 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/23 (unaudited) | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $25,032,442 | $39,724,474 |
Net realized gain (loss) | 55,120,768 | 92,004,343 |
Net unrealized gain (loss) | 10,874,767 | (389,683,653) |
Change in net assets from operations | $91,027,977 | $(257,954,836) |
Total distributions to shareholders | $— | $(236,287,143) |
Change in net assets from fund share transactions | $(93,142,592) | $(5,860,762) |
Total change in net assets | $(2,114,615) | $(500,102,741) |
Net assets | ||
At beginning of period | 2,181,695,198 | 2,681,797,939 |
At end of period | $2,179,580,583 | $2,181,695,198 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $22.49 | $27.78 | $26.02 | $24.90 | $21.78 | $24.70 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.28 | $0.45 | $0.39 | $0.47 | $0.52 | $0.53 |
Net realized and unrealized gain (loss) | 0.70 | (3.10) | 3.24 | 1.88 | 3.83 | (1.80) |
Total from investment operations | $0.98 | $(2.65) | $3.63 | $2.35 | $4.35 | $(1.27) |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.44) | $(0.51) | $(0.57) | $(0.58) | $(0.54) |
From net realized gain | — | (2.20) | (1.36) | (0.66) | (0.65) | (1.11) |
Total distributions declared to shareholders | $— | $(2.64) | $(1.87) | $(1.23) | $(1.23) | $(1.65) |
Net asset value, end of period (x) | $23.47 | $22.49 | $27.78 | $26.02 | $24.90 | $21.78 |
Total return (%) (k)(r)(s)(x) | 4.36(n) | (9.58) | 14.12 | 9.81 | 20.38 | (5.61) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.71(a) | 0.71 | 0.70 | 0.71 | 0.70 | 0.70 |
Expenses after expense reductions | 0.61(a) | 0.61 | 0.61 | 0.61 | 0.62 | 0.62 |
Net investment income (loss) | 2.45(a) | 1.84 | 1.43 | 1.95 | 2.18 | 2.20 |
Portfolio turnover | 17(n) | 67 | 98 | 84 | 42 | 26 |
Net assets at end of period (000 omitted) | $996,659 | $1,001,860 | $1,274,331 | $1,219,438 | $1,223,166 | $1,134,301 |
Service Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $21.95 | $27.18 | $25.50 | $24.43 | $21.38 | $24.28 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.24 | $0.38 | $0.32 | $0.40 | $0.45 | $0.46 |
Net realized and unrealized gain (loss) | 0.69 | (3.04) | 3.17 | 1.83 | 3.76 | (1.77) |
Total from investment operations | $0.93 | $(2.66) | $3.49 | $2.23 | $4.21 | $(1.31) |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.37) | $(0.45) | $(0.50) | $(0.51) | $(0.48) |
From net realized gain | — | (2.20) | (1.36) | (0.66) | (0.65) | (1.11) |
Total distributions declared to shareholders | $— | $(2.57) | $(1.81) | $(1.16) | $(1.16) | $(1.59) |
Net asset value, end of period (x) | $22.88 | $21.95 | $27.18 | $25.50 | $24.43 | $21.38 |
Total return (%) (k)(r)(s)(x) | 4.24(n) | (9.84) | 13.84 | 9.52 | 20.12 | (5.87) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.96(a) | 0.96 | 0.95 | 0.96 | 0.95 | 0.95 |
Expenses after expense reductions | 0.86(a) | 0.86 | 0.86 | 0.86 | 0.87 | 0.87 |
Net investment income (loss) | 2.20(a) | 1.60 | 1.17 | 1.71 | 1.93 | 1.95 |
Portfolio turnover | 17(n) | 67 | 98 | 84 | 42 | 26 |
Net assets at end of period (000 omitted) | $1,182,922 | $1,179,835 | $1,407,467 | $1,319,320 | $1,323,813 | $1,191,222 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(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 | $1,234,749,436 | $— | $— | $1,234,749,436 |
Germany | 25,732,849 | — | — | 25,732,849 |
United Kingdom | 17,299,568 | — | — | 17,299,568 |
Switzerland | 12,769,445 | — | — | 12,769,445 |
Canada | 10,644,956 | — | — | 10,644,956 |
Taiwan | 8,830,399 | — | — | 8,830,399 |
France | 6,071,232 | — | — | 6,071,232 |
South Korea | — | 5,559,969 | — | 5,559,969 |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | — | 106,870,817 | — | 106,870,817 |
Non - U.S. Sovereign Debt | — | 651,785 | — | 651,785 |
Municipal Bonds | — | 11,588,709 | — | 11,588,709 |
U.S. Corporate Bonds | — | 218,966,235 | — | 218,966,235 |
Residential Mortgage-Backed Securities | — | 282,978,145 | — | 282,978,145 |
Commercial Mortgage-Backed Securities | — | 42,769,848 | — | 42,769,848 |
Asset-Backed Securities (including CDOs) | — | 81,299,341 | — | 81,299,341 |
Foreign Bonds | — | 86,017,670 | — | 86,017,670 |
Mutual Funds | 24,061,548 | — | — | 24,061,548 |
Total | $1,340,159,433 | $836,702,519 | $— | $2,176,861,952 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $610,748 | $— | $— | $610,748 |
Futures Contracts – Liabilities | (1,334,844) | — | — | (1,334,844) |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Futures Contracts | $610,748 | $(1,334,844) |
Risk | Futures Contracts |
Interest Rate | $(781,910) |
Risk | Futures Contracts |
Interest Rate | $(248,383) |
Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $50,184,261 |
Long-term capital gains | 186,102,882 |
Total distributions | $236,287,143 |
As of 6/30/23 | |
Cost of investments | $1,775,269,911 |
Gross appreciation | 514,516,716 |
Gross depreciation | (112,924,675) |
Net unrealized appreciation (depreciation) | $401,592,041 |
As of 12/31/22 | |
Undistributed ordinary income | 41,339,241 |
Undistributed long-term capital gain | 92,309,620 |
Other temporary differences | (679) |
Net unrealized appreciation (depreciation) | 391,551,970 |
Six months ended 6/30/23 | Year ended 12/31/22 | ||
Initial Class | $— | $109,061,121 | |
Service Class | — | 127,226,022 | |
Total | $— | $236,287,143 |
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 | $222,146,277 | $262,050,811 |
Non-U.S. Government securities | 143,587,516 | 180,158,788 |
Six months ended 6/30/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 643,026 | $14,661,852 | 1,216,820 | $28,906,952 | |
Service Class | 1,835,273 | 41,167,590 | 3,979,494 | 96,027,646 | |
2,478,299 | $55,829,442 | 5,196,314 | $124,934,598 |
Six months ended 6/30/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 4,817,187 | $109,061,121 | |
Service Class | — | — | 5,751,628 | 127,226,022 | |
— | $— | 10,568,815 | $236,287,143 | ||
Shares reacquired | |||||
Initial Class | (2,724,583) | $(62,316,486) | (7,347,668) | $(180,956,671) | |
Service Class | (3,880,105) | (86,655,548) | (7,768,222) | (186,125,832) | |
(6,604,688) | $(148,972,034) | (15,115,890) | $(367,082,503) | ||
Net change | |||||
Initial Class | (2,081,557) | $(47,654,634) | (1,313,661) | $(42,988,598) | |
Service Class | (2,044,832) | (45,487,958) | 1,962,900 | 37,127,836 | |
(4,126,389) | $(93,142,592) | 649,239 | $(5,860,762) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $23,640,356 | $171,509,251 | $171,088,986 | $2,908 | $(1,981) | $24,061,548 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $647,074 | $— |
1 | |
2 | |
3 | |
6 | |
7 | |
8 | |
9 | |
11 | |
18 | |
19 | |
19 | |
19 | |
19 |
NextEra Energy, Inc. | 12.0% |
PG&E Corp. | 6.5% |
Dominion Energy, Inc. | 5.5% |
Southern Co. | 4.9% |
Sempra Energy | 4.7% |
DTE Energy Co. | 4.1% |
Edison International | 3.6% |
RWE AG | 3.4% |
PPL Corp. | 3.2% |
Cellnex Telecom S.A. | 3.1% |
Utilities-Electric Power | 81.6% |
Telecommunications - Wireless | 6.9% |
Energy - Renewables | 5.6% |
Natural Gas - Distribution | 2.6% |
Utilities - Water | 1.3% |
United States | 73.0% |
Germany | 5.3% |
Portugal | 4.5% |
United Kingdom | 4.4% |
Spain | 4.3% |
Italy | 2.4% |
France | 1.3% |
Brazil | 1.2% |
Canada | 1.0% |
Other Countries | 2.6% |
(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 (included in Other Countries) includes Cash & Cash Equivalents. |
January 1, 2023 through June 30, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/23 | Ending Account Value 6/30/23 | Expenses Paid During Period (p) 1/01/23-6/30/23 | |
Initial Class | Actual | 0.80% | $1,000.00 | $990.91 | $3.95 |
Hypothetical (h) | 0.80% | $1,000.00 | $1,020.83 | $4.01 | |
Service Class | Actual | 1.05% | $1,000.00 | $989.60 | $5.18 |
Hypothetical (h) | 1.05% | $1,000.00 | $1,019.59 | $5.26 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 98.8% | ||||
Energy - Renewables – 5.6% | ||||
AES Corp. | 977,627 | $ 20,266,208 | ||
EDP Renovaveis S.A. | 1,836,862 | 36,670,213 | ||
Orsted A/S | 96,057 | 9,077,094 | ||
$66,013,515 | ||||
Natural Gas - Distribution – 2.6% | ||||
Atmos Energy Corp. | 156,176 | $ 18,169,516 | ||
China Resources Gas Group Ltd. | 1,763,500 | 6,046,513 | ||
Southwest Gas Holdings, Inc. | 96,096 | 6,116,510 | ||
$30,332,539 | ||||
Telecommunications - Wireless – 6.9% | ||||
Cellnex Telecom S.A. | 908,627 | $ 36,675,367 | ||
Rogers Communications, Inc., “B” | 252,183 | 11,505,522 | ||
SBA Communications Corp., REIT | 129,437 | 29,998,319 | ||
Vodafone Group PLC | 3,264,523 | 3,066,753 | ||
$81,245,961 | ||||
Telephone Services – 0.7% | ||||
Hellenic Telecommunications Organization S.A. | 444,444 | $ 7,618,996 | ||
Utilities - Electric Power – 81.6% | ||||
Alliant Energy Corp. | 545,356 | $ 28,620,283 | ||
Ameren Corp. | 445,652 | 36,396,399 | ||
American Electric Power Co., Inc. | 363,598 | 30,614,952 | ||
CenterPoint Energy, Inc. | 405,418 | 11,817,935 | ||
CLP Holdings Ltd. | 1,030,500 | 8,020,932 | ||
Constellation Energy | 328,908 | 30,111,527 | ||
Dominion Energy, Inc. | 1,240,480 | 64,244,459 | ||
DTE Energy Co. | 437,084 | 48,087,982 | ||
E.ON SE | 1,693,932 | 21,589,536 | ||
Edison International | 614,055 | 42,646,120 | ||
Enel S.p.A. | 4,210,753 | 28,340,573 | ||
Energias de Portugal S.A. | 3,239,450 | 15,822,163 | ||
Energisa S.A., IEU | 648,800 | 6,802,088 | ||
Equatorial Energia S.A. | 986,700 | 6,625,121 | ||
Evergy, Inc. | 415,092 | 24,249,675 | ||
Exelon Corp. | 448,486 | 18,271,322 | ||
Iberdrola S.A. | 1,026,245 | 13,382,075 | ||
National Grid PLC | 1,573,005 | 20,786,227 | ||
NextEra Energy, Inc. | 1,900,734 | 141,034,464 | ||
PG&E Corp. (a) | 4,401,020 | 76,049,626 | ||
Pinnacle West Capital Corp. | 222,396 | 18,116,378 | ||
Portland General Electric Co. | 307,046 | 14,378,964 | ||
PPL Corp. | 1,418,817 | 37,541,898 | ||
Public Service Enterprise Group, Inc. | 294,077 | 18,412,161 | ||
RWE AG | 927,781 | 40,364,186 | ||
Sempra Energy | 378,760 | 55,143,669 | ||
Southern Co. | 813,617 | 57,156,594 | ||
SSE PLC | 1,189,890 | 27,820,446 | ||
Xcel Energy, Inc. | 230,835 | 14,351,012 | ||
$956,798,767 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Utilities - Water – 1.4% | ||||
Veolia Environnement S.A. | 498,265 | $ 15,740,316 | ||
Total Common Stocks (Identified Cost, $891,838,050) | $1,157,750,094 | |||
Investment Companies (h) – 1.0% | ||||
Money Market Funds – 1.0% | ||||
MFS Institutional Money Market Portfolio, 5.04% (v) (Identified Cost, $12,398,286) | 12,397,660 | $ 12,400,139 | ||
Other Assets, Less Liabilities – 0.2% | 1,954,535 | |||
Net Assets – 100.0% | $1,172,104,768 |
(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 $12,400,139 and $1,157,750,094, 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: | |
IEU | International Equity Unit |
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 6/30/23 | ||||||
Forward Foreign Currency Exchange Contracts | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Asset Derivatives | ||||||
CAD | 1,101,673 | USD | 824,021 | BNP Paribas S.A. | 7/21/2023 | $7,780 |
EUR | 68,824 | USD | 74,906 | Brown Brothers Harriman | 7/21/2023 | 253 |
EUR | 2,029,424 | USD | 2,211,962 | HSBC Bank | 7/21/2023 | 4,263 |
EUR | 2,765,501 | USD | 2,979,908 | Merrill Lynch International | 7/21/2023 | 40,149 |
EUR | 3,585,236 | USD | 3,893,147 | State Street Bank Corp. | 7/21/2023 | 22,099 |
GBP | 680,263 | USD | 851,599 | Brown Brothers Harriman | 7/21/2023 | 12,429 |
USD | 162,055,135 | EUR | 147,150,644 | Merrill Lynch International | 7/21/2023 | 1,359,726 |
$1,446,699 | ||||||
Liability Derivatives | ||||||
EUR | 1,058,788 | USD | 1,159,602 | Brown Brothers Harriman | 7/21/2023 | $(3,355) |
EUR | 1,597,210 | USD | 1,758,187 | HSBC Bank | 7/21/2023 | (13,959) |
EUR | 3,885,308 | USD | 4,243,644 | State Street Bank Corp. | 7/21/2023 | (705) |
USD | 14,507 | CAD | 19,343 | Brown Brothers Harriman | 7/21/2023 | (98) |
USD | 7,908,108 | CAD | 10,601,029 | HSBC Bank | 7/21/2023 | (96,036) |
USD | 17,559 | EUR | 16,135 | Brown Brothers Harriman | 7/21/2023 | (61) |
USD | 1,899 | EUR | 1,741 | State Street Bank Corp. | 7/21/2023 | (3) |
USD | 150,779 | GBP | 119,245 | Brown Brothers Harriman | 7/21/2023 | (678) |
USD | 407,107 | GBP | 326,615 | HSBC Bank | 7/21/2023 | (7,740) |
Forward Foreign Currency Exchange Contracts - continued | ||||||
Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
Liability Derivatives - continued | ||||||
USD | 35,313,477 | GBP | 28,220,482 | State Street Bank Corp. | 7/21/2023 | $(530,416) |
$(653,051) |
Financial Statements | Statement of Assets and Liabilities (unaudited) |
At 6/30/23Assets | |
Investments in unaffiliated issuers, at value (identified cost, $891,838,050) | $1,157,750,094 |
Investments in affiliated issuers, at value (identified cost, $12,398,286) | 12,400,139 |
Foreign currency, at value (identified cost, $6,533) | 6,738 |
Receivables for | |
Forward foreign currency exchange contracts | 1,446,699 |
Fund shares sold | 151,499 |
Interest and dividends | 3,360,449 |
Other assets | 2,042 |
Total assets | $1,175,117,660 |
Liabilities | |
Payables for | |
Forward foreign currency exchange contracts | $653,051 |
Investments purchased | 113,055 |
Fund shares reacquired | 1,818,018 |
Payable to affiliates | |
Investment adviser | 46,520 |
Administrative services fee | 968 |
Shareholder servicing costs | 559 |
Distribution and/or service fees | 8,778 |
Payable for independent Trustees' compensation | 245 |
Accrued expenses and other liabilities | 371,698 |
Total liabilities | $3,012,892 |
Net assets | $1,172,104,768 |
Net assets consist of | |
Paid-in capital | $784,221,919 |
Total distributable earnings (loss) | 387,882,849 |
Net assets | $1,172,104,768 |
Shares of beneficial interest outstanding | 32,970,994 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $526,651,375 | 14,635,008 | $35.99 |
Service Class | 645,453,393 | 18,335,986 | 35.20 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/23 | |
Net investment income (loss) | |
Income | |
Dividends | $20,206,989 |
Interest | 306,119 |
Dividends from affiliated issuers | 207,983 |
Other | 50,797 |
Income on securities loaned | 1,495 |
Foreign taxes withheld | (179,536) |
Total investment income | $20,593,847 |
Expenses | |
Management fee | $4,441,864 |
Distribution and/or service fees | 833,572 |
Shareholder servicing costs | 9,111 |
Administrative services fee | 92,694 |
Independent Trustees' compensation | 11,084 |
Custodian fee | 61,817 |
Shareholder communications | 19,847 |
Audit and tax fees | 35,719 |
Legal fees | 2,827 |
Miscellaneous | 199,125 |
Total expenses | $5,707,660 |
Reduction of expenses by investment adviser | (76,924) |
Net expenses | $5,630,736 |
Net investment income (loss) | $14,963,111 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $13,480,125 |
Affiliated issuers | 2,425 |
Forward foreign currency exchange contracts | (17,479,740) |
Foreign currency | (227,726) |
Net realized gain (loss) | $(4,224,916) |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(38,842,839) |
Affiliated issuers | (959) |
Forward foreign currency exchange contracts | 14,857,026 |
Translation of assets and liabilities in foreign currencies | 53,177 |
Net unrealized gain (loss) | $(23,933,595) |
Net realized and unrealized gain (loss) | $(28,158,511) |
Change in net assets from operations | $(13,195,400) |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/23 (unaudited) | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $14,963,111 | $22,268,570 |
Net realized gain (loss) | (4,224,916) | 96,439,674 |
Net unrealized gain (loss) | (23,933,595) | (114,645,691) |
Change in net assets from operations | $(13,195,400) | $4,062,553 |
Total distributions to shareholders | $— | $(77,825,621) |
Change in net assets from fund share transactions | $(65,374,366) | $28,354,613 |
Total change in net assets | $(78,569,766) | $(45,408,455) |
Net assets | ||
At beginning of period | 1,250,674,534 | 1,296,082,989 |
At end of period | $1,172,104,768 | $1,250,674,534 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $36.32 | $38.31 | $35.33 | $35.18 | $29.38 | $29.50 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.47 | $0.71 | $0.78 | $0.87 | $0.90 | $0.89 |
Net realized and unrealized gain (loss) | (0.80) | (0.32) | 4.11 | 0.99 | 6.37 | (0.56) |
Total from investment operations | $(0.33) | $0.39 | $4.89 | $1.86 | $7.27 | $0.33 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.92) | $(0.65) | $(0.84) | $(1.37) | $(0.33) |
From net realized gain | — | (1.46) | (1.26) | (0.87) | (0.10) | (0.12) |
Total distributions declared to shareholders | $— | $(2.38) | $(1.91) | $(1.71) | $(1.47) | $(0.45) |
Net asset value, end of period (x) | $35.99 | $36.32 | $38.31 | $35.33 | $35.18 | $29.38 |
Total return (%) (k)(r)(s)(x) | (0.91)(n) | 0.76 | 14.09 | 5.90 | 25.07 | 1.06 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.81(a) | 0.78 | 0.79 | 0.80 | 0.79 | 0.78 |
Expenses after expense reductions | 0.80(a) | 0.77 | 0.77 | 0.79 | 0.78 | 0.78 |
Net investment income (loss) | 2.64(a) | 1.92 | 2.16 | 2.63 | 2.69 | 2.98 |
Portfolio turnover | 10(n) | 29 | 16 | 32 | 28 | 27 |
Net assets at end of period (000 omitted) | $526,651 | $549,238 | $584,216 | $537,240 | $556,301 | $492,930 |
Service Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $35.57 | $37.58 | $34.69 | $34.56 | $28.86 | $28.98 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.42 | $0.60 | $0.68 | $0.77 | $0.80 | $0.81 |
Net realized and unrealized gain (loss) | (0.79) | (0.32) | 4.03 | 0.97 | 6.27 | (0.56) |
Total from investment operations | $(0.37) | $0.28 | $4.71 | $1.74 | $7.07 | $0.25 |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.83) | $(0.56) | $(0.74) | $(1.27) | $(0.25) |
From net realized gain | — | (1.46) | (1.26) | (0.87) | (0.10) | (0.12) |
Total distributions declared to shareholders | $— | $(2.29) | $(1.82) | $(1.61) | $(1.37) | $(0.37) |
Net asset value, end of period (x) | $35.20 | $35.57 | $37.58 | $34.69 | $34.56 | $28.86 |
Total return (%) (k)(r)(s)(x) | (1.04)(n) | 0.48 | 13.82 | 5.62 | 24.80 | 0.81 |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 1.06(a) | 1.03 | 1.04 | 1.05 | 1.04 | 1.04 |
Expenses after expense reductions | 1.05(a) | 1.02 | 1.02 | 1.04 | 1.03 | 1.03 |
Net investment income (loss) | 2.38(a) | 1.66 | 1.91 | 2.38 | 2.44 | 2.76 |
Portfolio turnover | 10(n) | 29 | 16 | 32 | 28 | 27 |
Net assets at end of period (000 omitted) | $645,453 | $701,436 | $711,867 | $679,629 | $733,992 | $727,201 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(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 | $841,795,973 | $— | $— | $841,795,973 |
Germany | 61,953,722 | — | — | 61,953,722 |
Portugal | 52,492,376 | — | — | 52,492,376 |
United Kingdom | 51,673,426 | — | — | 51,673,426 |
Spain | 50,057,442 | — | — | 50,057,442 |
Italy | 28,340,573 | — | — | 28,340,573 |
France | 15,740,316 | — | — | 15,740,316 |
Brazil | 13,427,209 | — | — | 13,427,209 |
Canada | 11,505,522 | — | — | 11,505,522 |
Other Countries | 16,696,090 | 14,067,445 | — | 30,763,535 |
Mutual Funds | 12,400,139 | — | — | 12,400,139 |
Total | $1,156,082,788 | $14,067,445 | $— | $1,170,150,233 |
Other Financial Instruments | ||||
Forward Foreign Currency Exchange Contracts – Assets | $— | $1,446,699 | $— | $1,446,699 |
Forward Foreign Currency Exchange Contracts – Liabilities | — | (653,051) | — | (653,051) |
Fair Value | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Foreign Exchange | Forward Foreign Currency Exchange Contracts | $1,446,699 | $(653,051) |
Risk | Forward Foreign Currency Exchange Contracts |
Foreign Exchange | $(17,479,740) |
Risk | Forward Foreign Currency Exchange Contracts |
Foreign Exchange | $14,857,026 |
Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $42,430,357 |
Long-term capital gains | 35,395,264 |
Total distributions | $77,825,621 |
As of 6/30/23 | |
Cost of investments | $909,928,851 |
Gross appreciation | 292,050,773 |
Gross depreciation | (31,829,391) |
Net unrealized appreciation (depreciation) | $260,221,382 |
As of 12/31/22 | |
Undistributed ordinary income | 38,927,153 |
Undistributed long-term capital gain | 62,554,400 |
Other temporary differences | (68,031) |
Net unrealized appreciation (depreciation) | 299,664,727 |
Six months ended 6/30/23 | Year ended 12/31/22 | ||
Initial Class | $— | $34,761,572 | |
Service Class | — | 43,064,049 | |
Total | $— | $77,825,621 |
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 6/30/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 1,228,274 | $44,077,701 | 1,003,536 | $37,516,319 | |
Service Class | 672,491 | 23,705,580 | 2,874,003 | 106,408,790 | |
1,900,765 | $67,783,281 | 3,877,539 | $143,925,109 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 917,434 | $34,761,572 | |
Service Class | — | — | 1,159,194 | 43,064,049 | |
— | $— | 2,076,628 | $77,825,621 | ||
Shares reacquired | |||||
Initial Class | (1,715,405) | $(60,963,793) | (2,047,407) | $(75,308,977) | |
Service Class | (2,054,819) | (72,193,854) | (3,259,548) | (118,087,140) | |
(3,770,224) | $(133,157,647) | (5,306,955) | $(193,396,117) | ||
Net change | |||||
Initial Class | (487,131) | $(16,886,092) | (126,437) | $(3,031,086) | |
Service Class | (1,382,328) | (48,488,274) | 773,649 | 31,385,699 | |
(1,869,459) | $(65,374,366) | 647,212 | $28,354,613 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $15,431,494 | $108,921,092 | $111,953,913 | $2,425 | $(959) | $12,400,139 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $207,983 | $— |
1 | |
2 | |
3 | |
6 | |
7 | |
8 | |
9 | |
11 | |
17 | |
18 | |
18 | |
18 | |
18 |
JPMorgan Chase & Co. | 4.1% |
Johnson & Johnson | 2.9% |
Aon PLC | 2.7% |
Cigna Group | 2.7% |
Marsh & McLennan Cos., Inc. | 2.6% |
Comcast Corp., “A” | 2.5% |
ConocoPhillips | 2.5% |
Texas Instruments, Inc. | 2.4% |
Progressive Corp. | 2.3% |
Northrop Grumman Corp. | 2.3% |
Financials | 24.7% |
Health Care | 17.1% |
Industrials | 16.0% |
Information Technology | 8.5% |
Consumer Staples | 7.5% |
Utilities | 7.4% |
Energy | 4.8% |
Materials | 3.7% |
Consumer Discretionary | 3.6% |
Communication Services | 3.6% |
Real Estate | 2.1% |
(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, 2023 through June 30, 2023
Share Class | Annualized Expense Ratio | Beginning Account Value 1/01/23 | Ending Account Value 6/30/23 | Expenses Paid During Period (p) 1/01/23-6/30/23 | |
Initial Class | Actual | 0.69% | $1,000.00 | $1,019.49 | $3.45 |
Hypothetical (h) | 0.69% | $1,000.00 | $1,021.37 | $3.46 | |
Service Class | Actual | 0.94% | $1,000.00 | $1,018.07 | $4.70 |
Hypothetical (h) | 0.94% | $1,000.00 | $1,020.13 | $4.71 |
(h) | 5% class return per year before expenses. |
(p) | “Expenses Paid During Period” are equal to each class's annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – 99.0% | ||||
Aerospace & Defense – 6.5% | ||||
General Dynamics Corp. | 189,930 | $ 40,863,440 | ||
Honeywell International, Inc. | 227,883 | 47,285,722 | ||
Northrop Grumman Corp. | 123,016 | 56,070,693 | ||
Raytheon Technologies Corp. | 164,696 | 16,133,620 | ||
$160,353,475 | ||||
Alcoholic Beverages – 1.6% | ||||
Diageo PLC | 933,889 | $ 40,076,237 | ||
Brokerage & Asset Managers – 4.2% | ||||
BlackRock, Inc. | 37,157 | $ 25,680,689 | ||
Citigroup, Inc. | 658,913 | 30,336,355 | ||
KKR & Co., Inc. | 271,245 | 15,189,720 | ||
NASDAQ, Inc. | 668,677 | 33,333,548 | ||
$104,540,312 | ||||
Business Services – 3.2% | ||||
Accenture PLC, “A” | 161,624 | $ 49,873,934 | ||
Equifax, Inc. | 122,319 | 28,781,661 | ||
$78,655,595 | ||||
Cable TV – 3.6% | ||||
Charter Communications, Inc., “A” (a) | 69,176 | $ 25,413,187 | ||
Comcast Corp., “A” | 1,503,160 | 62,456,298 | ||
$87,869,485 | ||||
Chemicals – 1.0% | ||||
PPG Industries, Inc. | 159,011 | $ 23,581,331 | ||
Construction – 1.4% | ||||
Masco Corp. | 43,473 | $ 2,494,481 | ||
Otis Worldwide Corp. | 98,078 | 8,729,923 | ||
Sherwin-Williams Co. | 86,207 | 22,889,682 | ||
$34,114,086 | ||||
Consumer Products – 1.7% | ||||
International Flavors & Fragrances, Inc. | 15,691 | $ 1,248,847 | ||
Kenvue, Inc. (a) | 275,559 | 7,280,269 | ||
Kimberly-Clark Corp. | 153,228 | 21,154,657 | ||
Reckitt Benckiser Group PLC | 167,555 | 12,580,425 | ||
$42,264,198 | ||||
Electrical Equipment – 0.8% | ||||
Johnson Controls International PLC | 297,207 | $ 20,251,685 | ||
Electronics – 6.5% | ||||
Analog Devices, Inc. | 158,207 | $ 30,820,306 | ||
KLA Corp. | 77,827 | 37,747,652 | ||
NXP Semiconductors N.V. | 150,412 | 30,786,328 | ||
Texas Instruments, Inc. | 331,961 | 59,759,619 | ||
$159,113,905 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Energy - Independent – 4.8% | ||||
ConocoPhillips | 583,621 | $ 60,468,972 | ||
EOG Resources, Inc. | 193,442 | 22,137,503 | ||
Pioneer Natural Resources Co. | 172,224 | 35,681,368 | ||
$118,287,843 | ||||
Food & Beverages – 2.9% | ||||
Archer Daniels Midland Co. | 95,997 | $ 7,253,533 | ||
Nestle S.A. | 346,100 | 41,607,017 | ||
PepsiCo, Inc. | 124,597 | 23,077,856 | ||
$71,938,406 | ||||
Gaming & Lodging – 1.4% | ||||
Marriott International, Inc., “A” | 185,965 | $ 34,159,911 | ||
Health Maintenance Organizations – 2.7% | ||||
Cigna Group | 235,405 | $ 66,054,643 | ||
Insurance – 11.1% | ||||
Aon PLC | 193,370 | $ 66,751,324 | ||
Chubb Ltd. | 245,598 | 47,292,351 | ||
Marsh & McLennan Cos., Inc. | 334,760 | 62,961,661 | ||
Progressive Corp. | 436,409 | 57,767,459 | ||
Travelers Cos., Inc. | 222,632 | 38,662,273 | ||
$273,435,068 | ||||
Machinery & Tools – 4.5% | ||||
Eaton Corp. PLC | 173,138 | $ 34,818,052 | ||
Illinois Tool Works, Inc. | 171,489 | 42,899,688 | ||
PACCAR, Inc. | 178,341 | 14,918,225 | ||
Trane Technologies PLC | 99,634 | 19,055,999 | ||
$111,691,964 | ||||
Major Banks – 7.2% | ||||
Goldman Sachs Group, Inc. | 29,438 | $ 9,494,932 | ||
JPMorgan Chase & Co. | 686,137 | 99,791,765 | ||
Morgan Stanley | 516,540 | 44,112,516 | ||
PNC Financial Services Group, Inc. | 189,366 | 23,850,648 | ||
$177,249,861 | ||||
Medical & Health Technology & Services – 1.7% | ||||
McKesson Corp. | 100,553 | $ 42,967,302 | ||
Medical Equipment – 5.6% | ||||
Abbott Laboratories | 331,853 | $ 36,178,614 | ||
Boston Scientific Corp. (a) | 471,305 | 25,492,887 | ||
Danaher Corp. | 62,405 | 14,977,200 | ||
Medtronic PLC | 314,932 | 27,745,509 | ||
Thermo Fisher Scientific, Inc. | 62,702 | 32,714,769 | ||
$137,108,979 | ||||
Other Banks & Diversified Financials – 2.2% | ||||
American Express Co. | 259,093 | $ 45,134,000 | ||
Truist Financial Corp. | 296,865 | 9,009,853 | ||
$54,143,853 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Pharmaceuticals – 7.1% | ||||
Johnson & Johnson | 426,258 | $ 70,554,224 | ||
Merck & Co., Inc. | 427,396 | 49,317,224 | ||
Pfizer, Inc. | 1,283,301 | 47,071,481 | ||
Roche Holding AG | 27,893 | 8,523,251 | ||
$175,466,180 | ||||
Railroad & Shipping – 2.5% | ||||
Canadian National Railway Co. | 123,768 | $ 14,984,592 | ||
Union Pacific Corp. | 228,604 | 46,776,950 | ||
$61,761,542 | ||||
Real Estate – 2.1% | ||||
Prologis, Inc., REIT | 341,374 | $ 41,862,694 | ||
Public Storage, Inc., REIT | 31,915 | 9,315,350 | ||
$51,178,044 | ||||
Specialty Chemicals – 1.8% | ||||
Corteva, Inc. | 162,246 | $ 9,296,696 | ||
DuPont de Nemours, Inc. | 491,358 | 35,102,615 | ||
$44,399,311 | ||||
Specialty Stores – 3.5% | ||||
Lowe's Cos., Inc. | 243,619 | $ 54,984,809 | ||
Target Corp. | 229,487 | 30,269,335 | ||
$85,254,144 | ||||
Utilities - Electric Power – 7.4% | ||||
American Electric Power Co., Inc. | 151,479 | $ 12,754,532 | ||
Dominion Energy, Inc. | 661,122 | 34,239,508 | ||
Duke Energy Corp. | 483,815 | 43,417,558 | ||
Exelon Corp. | 518,960 | 21,142,430 | ||
PG&E Corp. (a) | 357,504 | 6,177,669 | ||
Southern Co. | 662,394 | 46,533,179 | ||
Xcel Energy, Inc. | 290,085 | 18,034,585 | ||
$182,299,461 | ||||
Total Common Stocks (Identified Cost, $1,346,509,520) | $2,438,216,821 | |||
Investment Companies (h) – 1.1% | ||||
Money Market Funds – 1.1% | ||||
MFS Institutional Money Market Portfolio, 5.04% (v) (Identified Cost, $27,570,569) | 27,570,136 | $ 27,575,650 | ||
Other Assets, Less Liabilities – (0.1)% | (2,360,844) | |||
Net Assets – 100.0% | $2,463,431,627 |
(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 $27,575,650 and $2,438,216,821, 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 6/30/23Assets | |
Investments in unaffiliated issuers, at value (identified cost, $1,346,509,520) | $2,438,216,821 |
Investments in affiliated issuers, at value (identified cost, $27,570,569) | 27,575,650 |
Cash | 47,542 |
Receivables for | |
Fund shares sold | 117,202 |
Interest and dividends | 2,874,392 |
Other assets | 3,842 |
Total assets | $2,468,835,449 |
Liabilities | |
Payables for | |
Investments purchased | $3,128,920 |
Fund shares reacquired | 1,980,516 |
Payable to affiliates | |
Investment adviser | 57,932 |
Administrative services fee | 1,962 |
Shareholder servicing costs | 404 |
Distribution and/or service fees | 16,361 |
Payable for independent Trustees' compensation | 315 |
Accrued expenses and other liabilities | 217,412 |
Total liabilities | $5,403,822 |
Net assets | $2,463,431,627 |
Net assets consist of | |
Paid-in capital | $1,076,097,486 |
Total distributable earnings (loss) | 1,387,334,141 |
Net assets | $2,463,431,627 |
Shares of beneficial interest outstanding | 113,559,799 |
Net assets | Shares outstanding | Net asset value per share | |
Initial Class | $1,252,479,945 | 57,007,176 | $21.97 |
Service Class | 1,210,951,682 | 56,552,623 | 21.41 |
Financial Statements | Statement of Operations (unaudited) |
Six months ended 6/30/23 | |
Net investment income (loss) | |
Income | |
Dividends | $29,304,328 |
Dividends from affiliated issuers | 520,984 |
Other | 9,774 |
Income on securities loaned | 237 |
Foreign taxes withheld | (267,343) |
Total investment income | $29,567,980 |
Expenses | |
Management fee | $8,290,936 |
Distribution and/or service fees | 1,495,251 |
Shareholder servicing costs | 10,602 |
Administrative services fee | 180,477 |
Independent Trustees' compensation | 21,014 |
Custodian fee | 58,250 |
Shareholder communications | 26,079 |
Audit and tax fees | 34,265 |
Legal fees | 5,621 |
Miscellaneous | 30,438 |
Total expenses | $10,152,933 |
Reduction of expenses by investment adviser | (365,799) |
Net expenses | $9,787,134 |
Net investment income (loss) | $19,780,846 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $75,758,297 |
Affiliated issuers | (8,593) |
Foreign currency | 35,942 |
Net realized gain (loss) | $75,785,646 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(49,238,264) |
Affiliated issuers | 2,016 |
Translation of assets and liabilities in foreign currencies | 2,506 |
Net unrealized gain (loss) | $(49,233,742) |
Net realized and unrealized gain (loss) | $26,551,904 |
Change in net assets from operations | $46,332,750 |
Financial Statements | Statements of Changes in Net Assets |
Six months ended | Year ended | |
6/30/23 (unaudited) | 12/31/22 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $19,780,846 | $37,120,192 |
Net realized gain (loss) | 75,785,646 | 168,424,957 |
Net unrealized gain (loss) | (49,233,742) | (384,367,410) |
Change in net assets from operations | $46,332,750 | $(178,822,261) |
Total distributions to shareholders | $— | $(183,745,122) |
Change in net assets from fund share transactions | $(29,466,318) | $(23,553,592) |
Total change in net assets | $16,866,432 | $(386,120,975) |
Net assets | ||
At beginning of period | 2,446,565,195 | 2,832,686,170 |
At end of period | $2,463,431,627 | $2,446,565,195 |
Financial Statements | Financial Highlights |
Initial Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $21.55 | $24.72 | $20.40 | $20.95 | $17.30 | $20.92 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.19 | $0.35 | $0.31 | $0.31 | $0.33 | $0.41 |
Net realized and unrealized gain (loss) | 0.23 | (1.83) | 4.84 | 0.29 | 4.68 | (2.32) |
Total from investment operations | $0.42 | $(1.48) | $5.15 | $0.60 | $5.01 | $(1.91) |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.32) | $(0.31) | $(0.30) | $(0.44) | $(0.32) |
From net realized gain | — | (1.37) | (0.52) | (0.85) | (0.92) | (1.39) |
Total distributions declared to shareholders | $— | $(1.69) | $(0.83) | $(1.15) | $(1.36) | $(1.71) |
Net asset value, end of period (x) | $21.97 | $21.55 | $24.72 | $20.40 | $20.95 | $17.30 |
Total return (%) (k)(r)(s)(x) | 1.95(n) | (5.91) | 25.45 | 3.48 | 29.80 | (10.09) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.72(a) | 0.72 | 0.72 | 0.73 | 0.73 | 0.73 |
Expenses after expense reductions | 0.69(a) | 0.70 | 0.70 | 0.71 | 0.72 | 0.72 |
Net investment income (loss) | 1.77(a) | 1.60 | 1.33 | 1.64 | 1.67 | 2.02 |
Portfolio turnover | 8(n) | 13 | 9 | 17 | 13 | 8 |
Net assets at end of period (000 omitted) | $1,252,480 | $1,207,158 | $1,363,583 | $1,183,318 | $945,183 | $823,744 |
Service Class | Six months ended | Year ended | ||||
6/30/23 (unaudited) | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |
Net asset value, beginning of period | $21.03 | $24.16 | $19.96 | $20.52 | $16.96 | $20.55 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.16 | $0.29 | $0.24 | $0.25 | $0.27 | $0.35 |
Net realized and unrealized gain (loss) | 0.22 | (1.79) | 4.75 | 0.29 | 4.59 | (2.28) |
Total from investment operations | $0.38 | $(1.50) | $4.99 | $0.54 | $4.86 | $(1.93) |
Less distributions declared to shareholders | ||||||
From net investment income | $— | $(0.26) | $(0.27) | $(0.25) | $(0.38) | $(0.27) |
From net realized gain | — | (1.37) | (0.52) | (0.85) | (0.92) | (1.39) |
Total distributions declared to shareholders | $— | $(1.63) | $(0.79) | $(1.10) | $(1.30) | $(1.66) |
Net asset value, end of period (x) | $21.41 | $21.03 | $24.16 | $19.96 | $20.52 | $16.96 |
Total return (%) (k)(r)(s)(x) | 1.81(n) | (6.14) | 25.16 | 3.22 | 29.51 | (10.36) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses before expense reductions | 0.97(a) | 0.97 | 0.97 | 0.98 | 0.98 | 0.98 |
Expenses after expense reductions | 0.94(a) | 0.95 | 0.95 | 0.96 | 0.97 | 0.97 |
Net investment income (loss) | 1.52(a) | 1.35 | 1.08 | 1.38 | 1.42 | 1.77 |
Portfolio turnover | 8(n) | 13 | 9 | 17 | 13 | 8 |
Net assets at end of period (000 omitted) | $1,210,952 | $1,239,407 | $1,469,104 | $1,267,251 | $1,279,123 | $1,127,848 |
(a) | Annualized. |
(d) | Per share data is based on average shares outstanding. |
(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 | $2,438,216,821 | $— | $— | $2,438,216,821 |
Mutual Funds | 27,575,650 | — | — | 27,575,650 |
Total | $2,465,792,471 | $— | $— | $2,465,792,471 |
Year ended 12/31/22 | |
Ordinary income (including any short-term capital gains) | $43,571,664 |
Long-term capital gains | 140,173,458 |
Total distributions | $183,745,122 |
As of 6/30/23 | |
Cost of investments | $1,379,478,985 |
Gross appreciation | 1,131,396,193 |
Gross depreciation | (45,082,707) |
Net unrealized appreciation (depreciation) | $1,086,313,486 |
As of 12/31/22 | |
Undistributed ordinary income | 37,784,723 |
Undistributed long-term capital gain | 168,675,190 |
Other temporary differences | 16,193 |
Net unrealized appreciation (depreciation) | 1,134,525,285 |
Six months ended 6/30/23 | Year ended 12/31/22 | ||
Initial Class | $— | $91,353,058 | |
Service Class | — | 92,392,064 | |
Total | $— | $183,745,122 |
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 6/30/23 | Year ended 12/31/22 | ||||
Shares | Amount | Shares | Amount | ||
Shares sold | |||||
Initial Class | 5,379,287 | $115,715,160 | 6,563,655 | $146,371,031 | |
Service Class | 3,503,241 | 72,902,708 | 24,366,893 | 539,149,730 | |
8,882,528 | $188,617,868 | 30,930,548 | $685,520,761 | ||
Shares issued to shareholders in reinvestment of distributions | |||||
Initial Class | — | $— | 4,288,876 | $91,353,058 | |
Service Class | — | — | 4,439,792 | 92,392,064 | |
— | $— | 8,728,668 | $183,745,122 | ||
Shares reacquired | |||||
Initial Class | (4,389,200) | $(94,594,212) | (9,999,661) | $(220,090,375) | |
Service Class | (5,888,397) | (123,489,974) | (30,676,378) | (672,729,100) | |
(10,277,597) | $(218,084,186) | (40,676,039) | $(892,819,475) | ||
Net change | |||||
Initial Class | 990,087 | $21,120,948 | 852,870 | $17,633,714 | |
Service Class | (2,385,156) | (50,587,266) | (1,869,693) | (41,187,306) | |
(1,395,069) | $(29,466,318) | (1,016,823) | $(23,553,592) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $29,657,201 | $192,052,282 | $194,127,256 | $(8,593) | $2,016 | $27,575,650 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $520,984 | $— |
Item 1(b):
Not applicable.
ITEM 2. CODE OF ETHICS.
During the period covered by this report, the Registrant has not amended any provision in its Code of Ethics (the "Code") that relates to an element of the Code's definition enumerated in paragraph (b) of Item 2 of this Form N-CSR. During the period covered by this report, the Registrant did not grant a waiver, including an implicit waiver, from any provision of the Code.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to the Registrant.
ITEM 6. INVESTMENTS
A schedule of investments for each series covered by this Form N-CSR is included as part of the report to shareholders of such series under Item 1(a) of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the Registrant.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There were no material changes to the procedures by which shareholders may send recommendations to the Board for nominees to the Registrant's Board since the Registrant last provided disclosure as to such procedures in response to the requirements of Item 407 (c)(2)(iv) of Regulation S-K or this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a)Based upon their evaluation of the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) as conducted within 90 days of the filing date of this report on Form N-CSR, the Registrant's principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the Registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
(b)There were no changes in the Registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by the report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 13. 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 15, 2023
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 15, 2023
By (Signature and Title)*
/S/ JAMES O. YOST
James O. Yost, Treasurer (Principal Financial Officer and Accounting Officer) Date: August 15, 2023
* Print name and title of each signing officer under his or her signature.