MFS SERIES TRUST XIII (0000356349) (Filer)
SEC · EDGAR 财务披露 · October 28, 2026 at 8:57 AM ET
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
811-03327
MFS SERIES TRUST XIII
(Exact name of registrant as specified in charter)
111 Huntington Avenue, Boston, Massachusetts 02199
(Address of principal executive offices) (Zip code)
Christopher R. Bohane
Massachusetts Financial Services Company
111 Huntington Avenue
Boston, Massachusetts 02199
(Name and address of agents for service)
Registrant's telephone number, including area code:
(617) 954-5000
Date of fiscal year end:
February 28*
Date of reporting period:
August 31, 2026
*This Form N-CSR pertains to the following series of the Registrant: MFS Diversified Income Fund, MFS Government Securities Fund and MFS New Discovery Value Fund. The remaining series of the Registrant has a fiscal year end other than February 28.
ITEM 1. REPORTS TO STOCKHOLDERS.
Item 1(a):
MFS® Diversified
Income Fund
Class A-DIFAX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS Diversified Income Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment ~ | Costs paid as a percentage of a $10,000 investment (annualized) ~ |
| A | $45 | 0.89% |
˜ Expenses are direct expenses and do not include underlying fund fees and expenses.
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 1,771,014,850 | Portfolio Turnover Rate (%): | 22 | |
| Total Number of Holdings: | 1,376 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Fixed Income ~ | 61.4% |
| Equities | 37.0% |
| Money Market Funds | 1.5% |
| Purchased Options | 0.1% |
Equity sectors
| Real Estate | 12.5% |
| Health Care | 4.9% |
| Financials | 4.2% |
| Consumer Staples | 3.6% |
| Energy | 2.9% |
| Industrials | 2.4% |
| Consumer Discretionary | 1.9% |
| Information Technology | 1.6% |
| Utilities | 1.4% |
| Communication Services | 1.0% |
| Materials | 0.5% |
| Convertible Debt | 0.1% |
Composition including fixed income credit quality
| AAA | 1.2% |
| AA | 0.9% |
| A | 6.2% |
| BBB | 12.2% |
| BB | 16.2% |
| B | 10.9% |
| CCC | 3.0% |
| CC | 0.0% |
| C | 0.2% |
| D | 0.2% |
| U.S. Government | 3.8% |
| Federal Agencies | 5.9% |
| Not Rated | 0.7% |
| Non-Fixed Income | 37.1% |
| Money Market Funds | 1.5% |
MFS uses the Global Industry Classification Standard (GICS®) for sector/industry reporting. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.
Ratings are assigned using Moody’s, Fitch, and Standard & Poor’s and applying a hierarchy: If all 3 agencies rate a security, the middle rating is assigned; if 2 agencies rate a security, the lower rating is assigned. If none of the 3 agencies rate a security, we use DBRS Morningstar. If none of the 4 agencies rate a security, we use Kroll Bond Rating Agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change.
~ The fund invests a portion of its assets in Exchange-Traded Funds (ETFs) or Options on ETFs to gain fixed income exposure. Percentages include the direct exposure from investing in ETFs or Options on ETFs and not the indirect exposure to the underlying holdings.
The fund invests a portion of its assets in the MFS High Yield Pooled Portfolio. Percentages include the indirect exposure to the underlying holdings of the MFS High Yield Pooled Portfolio and not the direct exposure from investing in the MFS High Yield Pooled Portfolio itself.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
DIFA-SEM
MFS® Diversified
Income Fund
Class C-DIFCX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS Diversified Income Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment ~ | Costs paid as a percentage of a $10,000 investment (annualized) ~ |
| C | $83 | 1.64% |
˜ Expenses are direct expenses and do not include underlying fund fees and expenses.
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 1,771,014,850 | Portfolio Turnover Rate (%): | 22 | |
| Total Number of Holdings: | 1,376 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Fixed Income ~ | 61.4% |
| Equities | 37.0% |
| Money Market Funds | 1.5% |
| Purchased Options | 0.1% |
Equity sectors
| Real Estate | 12.5% |
| Health Care | 4.9% |
| Financials | 4.2% |
| Consumer Staples | 3.6% |
| Energy | 2.9% |
| Industrials | 2.4% |
| Consumer Discretionary | 1.9% |
| Information Technology | 1.6% |
| Utilities | 1.4% |
| Communication Services | 1.0% |
| Materials | 0.5% |
| Convertible Debt | 0.1% |
Composition including fixed income credit quality
| AAA | 1.2% |
| AA | 0.9% |
| A | 6.2% |
| BBB | 12.2% |
| BB | 16.2% |
| B | 10.9% |
| CCC | 3.0% |
| CC | 0.0% |
| C | 0.2% |
| D | 0.2% |
| U.S. Government | 3.8% |
| Federal Agencies | 5.9% |
| Not Rated | 0.7% |
| Non-Fixed Income | 37.1% |
| Money Market Funds | 1.5% |
MFS uses the Global Industry Classification Standard (GICS®) for sector/industry reporting. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.
Ratings are assigned using Moody’s, Fitch, and Standard & Poor’s and applying a hierarchy: If all 3 agencies rate a security, the middle rating is assigned; if 2 agencies rate a security, the lower rating is assigned. If none of the 3 agencies rate a security, we use DBRS Morningstar. If none of the 4 agencies rate a security, we use Kroll Bond Rating Agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change.
~ The fund invests a portion of its assets in Exchange-Traded Funds (ETFs) or Options on ETFs to gain fixed income exposure. Percentages include the direct exposure from investing in ETFs or Options on ETFs and not the indirect exposure to the underlying holdings.
The fund invests a portion of its assets in the MFS High Yield Pooled Portfolio. Percentages include the indirect exposure to the underlying holdings of the MFS High Yield Pooled Portfolio and not the direct exposure from investing in the MFS High Yield Pooled Portfolio itself.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
DIFC-SEM
MFS® Diversified
Income Fund
Class I-DIFIX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS Diversified Income Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment ~ | Costs paid as a percentage of a $10,000 investment (annualized) ~ |
| I | $33 | 0.64% |
˜ Expenses are direct expenses and do not include underlying fund fees and expenses.
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 1,771,014,850 | Portfolio Turnover Rate (%): | 22 | |
| Total Number of Holdings: | 1,376 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Fixed Income ~ | 61.4% |
| Equities | 37.0% |
| Money Market Funds | 1.5% |
| Purchased Options | 0.1% |
Equity sectors
| Real Estate | 12.5% |
| Health Care | 4.9% |
| Financials | 4.2% |
| Consumer Staples | 3.6% |
| Energy | 2.9% |
| Industrials | 2.4% |
| Consumer Discretionary | 1.9% |
| Information Technology | 1.6% |
| Utilities | 1.4% |
| Communication Services | 1.0% |
| Materials | 0.5% |
| Convertible Debt | 0.1% |
Composition including fixed income credit quality
| AAA | 1.2% |
| AA | 0.9% |
| A | 6.2% |
| BBB | 12.2% |
| BB | 16.2% |
| B | 10.9% |
| CCC | 3.0% |
| CC | 0.0% |
| C | 0.2% |
| D | 0.2% |
| U.S. Government | 3.8% |
| Federal Agencies | 5.9% |
| Not Rated | 0.7% |
| Non-Fixed Income | 37.1% |
| Money Market Funds | 1.5% |
MFS uses the Global Industry Classification Standard (GICS®) for sector/industry reporting. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.
Ratings are assigned using Moody’s, Fitch, and Standard & Poor’s and applying a hierarchy: If all 3 agencies rate a security, the middle rating is assigned; if 2 agencies rate a security, the lower rating is assigned. If none of the 3 agencies rate a security, we use DBRS Morningstar. If none of the 4 agencies rate a security, we use Kroll Bond Rating Agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change.
~ The fund invests a portion of its assets in Exchange-Traded Funds (ETFs) or Options on ETFs to gain fixed income exposure. Percentages include the direct exposure from investing in ETFs or Options on ETFs and not the indirect exposure to the underlying holdings.
The fund invests a portion of its assets in the MFS High Yield Pooled Portfolio. Percentages include the indirect exposure to the underlying holdings of the MFS High Yield Pooled Portfolio and not the direct exposure from investing in the MFS High Yield Pooled Portfolio itself.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
DIFI-SEM
MFS® Diversified
Income Fund
Class R1-DIFDX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS Diversified Income Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment ~ | Costs paid as a percentage of a $10,000 investment (annualized) ~ |
| R1 | $83 | 1.64% |
˜ Expenses are direct expenses and do not include underlying fund fees and expenses.
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 1,771,014,850 | Portfolio Turnover Rate (%): | 22 | |
| Total Number of Holdings: | 1,376 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Fixed Income ~ | 61.4% |
| Equities | 37.0% |
| Money Market Funds | 1.5% |
| Purchased Options | 0.1% |
Equity sectors
| Real Estate | 12.5% |
| Health Care | 4.9% |
| Financials | 4.2% |
| Consumer Staples | 3.6% |
| Energy | 2.9% |
| Industrials | 2.4% |
| Consumer Discretionary | 1.9% |
| Information Technology | 1.6% |
| Utilities | 1.4% |
| Communication Services | 1.0% |
| Materials | 0.5% |
| Convertible Debt | 0.1% |
Composition including fixed income credit quality
| AAA | 1.2% |
| AA | 0.9% |
| A | 6.2% |
| BBB | 12.2% |
| BB | 16.2% |
| B | 10.9% |
| CCC | 3.0% |
| CC | 0.0% |
| C | 0.2% |
| D | 0.2% |
| U.S. Government | 3.8% |
| Federal Agencies | 5.9% |
| Not Rated | 0.7% |
| Non-Fixed Income | 37.1% |
| Money Market Funds | 1.5% |
MFS uses the Global Industry Classification Standard (GICS®) for sector/industry reporting. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.
Ratings are assigned using Moody’s, Fitch, and Standard & Poor’s and applying a hierarchy: If all 3 agencies rate a security, the middle rating is assigned; if 2 agencies rate a security, the lower rating is assigned. If none of the 3 agencies rate a security, we use DBRS Morningstar. If none of the 4 agencies rate a security, we use Kroll Bond Rating Agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change.
~ The fund invests a portion of its assets in Exchange-Traded Funds (ETFs) or Options on ETFs to gain fixed income exposure. Percentages include the direct exposure from investing in ETFs or Options on ETFs and not the indirect exposure to the underlying holdings.
The fund invests a portion of its assets in the MFS High Yield Pooled Portfolio. Percentages include the indirect exposure to the underlying holdings of the MFS High Yield Pooled Portfolio and not the direct exposure from investing in the MFS High Yield Pooled Portfolio itself.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
DIFR1-SEM
MFS® Diversified
Income Fund
Class R2-DIFEX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS Diversified Income Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment ~ | Costs paid as a percentage of a $10,000 investment (annualized) ~ |
| R2 | $58 | 1.14% |
˜ Expenses are direct expenses and do not include underlying fund fees and expenses.
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 1,771,014,850 | Portfolio Turnover Rate (%): | 22 | |
| Total Number of Holdings: | 1,376 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Fixed Income ~ | 61.4% |
| Equities | 37.0% |
| Money Market Funds | 1.5% |
| Purchased Options | 0.1% |
Equity sectors
| Real Estate | 12.5% |
| Health Care | 4.9% |
| Financials | 4.2% |
| Consumer Staples | 3.6% |
| Energy | 2.9% |
| Industrials | 2.4% |
| Consumer Discretionary | 1.9% |
| Information Technology | 1.6% |
| Utilities | 1.4% |
| Communication Services | 1.0% |
| Materials | 0.5% |
| Convertible Debt | 0.1% |
Composition including fixed income credit quality
| AAA | 1.2% |
| AA | 0.9% |
| A | 6.2% |
| BBB | 12.2% |
| BB | 16.2% |
| B | 10.9% |
| CCC | 3.0% |
| CC | 0.0% |
| C | 0.2% |
| D | 0.2% |
| U.S. Government | 3.8% |
| Federal Agencies | 5.9% |
| Not Rated | 0.7% |
| Non-Fixed Income | 37.1% |
| Money Market Funds | 1.5% |
MFS uses the Global Industry Classification Standard (GICS®) for sector/industry reporting. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.
Ratings are assigned using Moody’s, Fitch, and Standard & Poor’s and applying a hierarchy: If all 3 agencies rate a security, the middle rating is assigned; if 2 agencies rate a security, the lower rating is assigned. If none of the 3 agencies rate a security, we use DBRS Morningstar. If none of the 4 agencies rate a security, we use Kroll Bond Rating Agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change.
~ The fund invests a portion of its assets in Exchange-Traded Funds (ETFs) or Options on ETFs to gain fixed income exposure. Percentages include the direct exposure from investing in ETFs or Options on ETFs and not the indirect exposure to the underlying holdings.
The fund invests a portion of its assets in the MFS High Yield Pooled Portfolio. Percentages include the indirect exposure to the underlying holdings of the MFS High Yield Pooled Portfolio and not the direct exposure from investing in the MFS High Yield Pooled Portfolio itself.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
DIFR2-SEM
MFS® Diversified
Income Fund
Class R3-DIFFX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS Diversified Income Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment ~ | Costs paid as a percentage of a $10,000 investment (annualized) ~ |
| R3 | $45 | 0.89% |
˜ Expenses are direct expenses and do not include underlying fund fees and expenses.
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 1,771,014,850 | Portfolio Turnover Rate (%): | 22 | |
| Total Number of Holdings: | 1,376 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Fixed Income ~ | 61.4% |
| Equities | 37.0% |
| Money Market Funds | 1.5% |
| Purchased Options | 0.1% |
Equity sectors
| Real Estate | 12.5% |
| Health Care | 4.9% |
| Financials | 4.2% |
| Consumer Staples | 3.6% |
| Energy | 2.9% |
| Industrials | 2.4% |
| Consumer Discretionary | 1.9% |
| Information Technology | 1.6% |
| Utilities | 1.4% |
| Communication Services | 1.0% |
| Materials | 0.5% |
| Convertible Debt | 0.1% |
Composition including fixed income credit quality
| AAA | 1.2% |
| AA | 0.9% |
| A | 6.2% |
| BBB | 12.2% |
| BB | 16.2% |
| B | 10.9% |
| CCC | 3.0% |
| CC | 0.0% |
| C | 0.2% |
| D | 0.2% |
| U.S. Government | 3.8% |
| Federal Agencies | 5.9% |
| Not Rated | 0.7% |
| Non-Fixed Income | 37.1% |
| Money Market Funds | 1.5% |
MFS uses the Global Industry Classification Standard (GICS®) for sector/industry reporting. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.
Ratings are assigned using Moody’s, Fitch, and Standard & Poor’s and applying a hierarchy: If all 3 agencies rate a security, the middle rating is assigned; if 2 agencies rate a security, the lower rating is assigned. If none of the 3 agencies rate a security, we use DBRS Morningstar. If none of the 4 agencies rate a security, we use Kroll Bond Rating Agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change.
~ The fund invests a portion of its assets in Exchange-Traded Funds (ETFs) or Options on ETFs to gain fixed income exposure. Percentages include the direct exposure from investing in ETFs or Options on ETFs and not the indirect exposure to the underlying holdings.
The fund invests a portion of its assets in the MFS High Yield Pooled Portfolio. Percentages include the indirect exposure to the underlying holdings of the MFS High Yield Pooled Portfolio and not the direct exposure from investing in the MFS High Yield Pooled Portfolio itself.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
DIFR3-SEM
MFS® Diversified
Income Fund
Class R4-DIFGX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS Diversified Income Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment ~ | Costs paid as a percentage of a $10,000 investment (annualized) ~ |
| R4 | $33 | 0.64% |
˜ Expenses are direct expenses and do not include underlying fund fees and expenses.
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 1,771,014,850 | Portfolio Turnover Rate (%): | 22 | |
| Total Number of Holdings: | 1,376 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Fixed Income ~ | 61.4% |
| Equities | 37.0% |
| Money Market Funds | 1.5% |
| Purchased Options | 0.1% |
Equity sectors
| Real Estate | 12.5% |
| Health Care | 4.9% |
| Financials | 4.2% |
| Consumer Staples | 3.6% |
| Energy | 2.9% |
| Industrials | 2.4% |
| Consumer Discretionary | 1.9% |
| Information Technology | 1.6% |
| Utilities | 1.4% |
| Communication Services | 1.0% |
| Materials | 0.5% |
| Convertible Debt | 0.1% |
Composition including fixed income credit
quality
| AAA | 1.2% |
| AA | 0.9% |
| A | 6.2% |
| BBB | 12.2% |
| BB | 16.2% |
| B | 10.9% |
| CCC | 3.0% |
| CC | 0.0% |
| C | 0.2% |
| D | 0.2% |
| U.S. Government | 3.8% |
| Federal Agencies | 5.9% |
| Not Rated | 0.7% |
| Non-Fixed Income | 37.1% |
| Money Market Funds | 1.5% |
MFS uses the Global Industry Classification Standard (GICS®) for sector/industry reporting. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.
Ratings are assigned using Moody’s, Fitch, and Standard & Poor’s and applying a hierarchy: If all 3 agencies rate a security, the middle rating is assigned; if 2 agencies rate a security, the lower rating is assigned. If none of the 3 agencies rate a security, we use DBRS Morningstar. If none of the 4 agencies rate a security, we use Kroll Bond Rating Agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change.
~ The fund invests a portion of its assets in Exchange-Traded Funds (ETFs) or Options on ETFs to gain fixed income exposure. Percentages include the direct exposure from investing in ETFs or Options on ETFs and not the indirect exposure to the underlying holdings.
The fund invests a portion of its assets in the MFS High Yield Pooled Portfolio. Percentages include the indirect exposure to the underlying holdings of the MFS High Yield Pooled Portfolio and not the direct exposure from investing in the MFS High Yield Pooled Portfolio itself.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
DIFR4-SEM
MFS® Diversified
Income Fund
Class R6-DIFHX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS Diversified Income Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment ~ | Costs paid as a percentage of a $10,000 investment (annualized) ~ |
| R6 | $28 | 0.55% |
˜ Expenses are direct expenses and do not include underlying fund fees and expenses.
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 1,771,014,850 | Portfolio Turnover Rate (%): | 22 | |
| Total Number of Holdings: | 1,376 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Fixed Income ~ | 61.4% |
| Equities | 37.0% |
| Money Market Funds | 1.5% |
| Purchased Options | 0.1% |
Equity sectors
| Real Estate | 12.5% |
| Health Care | 4.9% |
| Financials | 4.2% |
| Consumer Staples | 3.6% |
| Energy | 2.9% |
| Industrials | 2.4% |
| Consumer Discretionary | 1.9% |
| Information Technology | 1.6% |
| Utilities | 1.4% |
| Communication Services | 1.0% |
| Materials | 0.5% |
| Convertible Debt | 0.1% |
Composition including fixed income credit
quality
| AAA | 1.2% |
| AA | 0.9% |
| A | 6.2% |
| BBB | 12.2% |
| BB | 16.2% |
| B | 10.9% |
| CCC | 3.0% |
| CC | 0.0% |
| C | 0.2% |
| D | 0.2% |
| U.S. Government | 3.8% |
| Federal Agencies | 5.9% |
| Not Rated | 0.7% |
| Non-Fixed Income | 37.1% |
| Money Market Funds | 1.5% |
MFS uses the Global Industry Classification Standard (GICS®) for sector/industry reporting. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.
Ratings are assigned using Moody’s, Fitch, and Standard & Poor’s and applying a hierarchy: If all 3 agencies rate a security, the middle rating is assigned; if 2 agencies rate a security, the lower rating is assigned. If none of the 3 agencies rate a security, we use DBRS Morningstar. If none of the 4 agencies rate a security, we use Kroll Bond Rating Agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change.
~ The fund invests a portion of its assets in Exchange-Traded Funds (ETFs) or Options on ETFs to gain fixed income exposure. Percentages include the direct exposure from investing in ETFs or Options on ETFs and not the indirect exposure to the underlying holdings.
The fund invests a portion of its assets in the MFS High Yield Pooled Portfolio. Percentages include the indirect exposure to the underlying holdings of the MFS High Yield Pooled Portfolio and not the direct exposure from investing in the MFS High Yield Pooled Portfolio itself.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
DIFR6-SEM
MFS® Government
Securities Fund
Class A-MFGSX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS Government Securities Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| A | $38 | 0.77% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 1,916,146,033 | Average Effective Maturity (yrs): | 6.6 | |
| Total Number of Holdings: | 812 | Average Effective Duration (yrs): | 5.5 | |
| Portfolio Turnover Rate (%): | 87 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Fixed Income | 91.8% |
| Money Market Funds | 8.2% |
Composition including fixed income credit
quality
| AAA | 6.3% |
| AA | 1.4% |
| A | 0.2% |
| U.S. Government | 27.1% |
| Federal Agencies | 56.8% |
| Money Market Funds | 8.2% |
Ratings are assigned using Moody’s, Fitch, and Standard & Poor’s and applying a hierarchy: If all 3 agencies rate a security, the middle rating is assigned; if 2 agencies rate a security, the lower rating is assigned. If none of the 3 agencies rate a security, we use DBRS Morningstar. If none of the 4 agencies rate a security, we use Kroll Bond Rating Agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
MFGA-SEM
MFS® Government
Securities Fund
Class B-MFGBX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS Government Securities Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| B | $75 | 1.52% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 1,916,146,033 | Average Effective Maturity (yrs): | 6.6 | |
| Total Number of Holdings: | 812 | Average Effective Duration (yrs): | 5.5 | |
| Portfolio Turnover Rate (%): | 87 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Fixed Income | 91.8% |
| Money Market Funds | 8.2% |
Composition including fixed income credit quality
| AAA | 6.3% |
| AA | 1.4% |
| A | 0.2% |
| U.S. Government | 27.1% |
| Federal Agencies | 56.8% |
| Money Market Funds | 8.2% |
Ratings are assigned using Moody’s, Fitch, and Standard & Poor’s and applying a hierarchy: If all 3 agencies rate a security, the middle rating is assigned; if 2 agencies rate a security, the lower rating is assigned. If none of the 3 agencies rate a security, we use DBRS Morningstar. If none of the 4 agencies rate a security, we use Kroll Bond Rating Agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
MFGB-SEM
MFS® Government
Securities Fund
Class C-MFGDX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS Government Securities Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| C | $75 | 1.52% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 1,916,146,033 | Average Effective Maturity (yrs): | 6.6 | |
| Total Number of Holdings: | 812 | Average Effective Duration (yrs): | 5.5 | |
| Portfolio Turnover Rate (%): | 87 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Fixed Income | 91.8% |
| Money Market Funds | 8.2% |
Composition including fixed income credit quality
| AAA | 6.3% |
| AA | 1.4% |
| A | 0.2% |
| U.S. Government | 27.1% |
| Federal Agencies | 56.8% |
| Money Market Funds | 8.2% |
Ratings are assigned using Moody’s, Fitch, and Standard & Poor’s and applying a hierarchy: If all 3 agencies rate a security, the middle rating is assigned; if 2 agencies rate a security, the lower rating is assigned. If none of the 3 agencies rate a security, we use DBRS Morningstar. If none of the 4 agencies rate a security, we use Kroll Bond Rating Agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
MFGC-SEM
MFS® Government
Securities Fund
Class I-MGSIX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS Government Securities Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| I | $26 | 0.52% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 1,916,146,033 | Average Effective Maturity (yrs): | 6.6 | |
| Total Number of Holdings: | 812 | Average Effective Duration (yrs): | 5.5 | |
| Portfolio Turnover Rate (%): | 87 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Fixed Income | 91.8% |
| Money Market Funds | 8.2% |
Composition including fixed income credit quality
| AAA | 6.3% |
| AA | 1.4% |
| A | 0.2% |
| U.S. Government | 27.1% |
| Federal Agencies | 56.8% |
| Money Market Funds | 8.2% |
Ratings are assigned using Moody’s, Fitch, and Standard & Poor’s and applying a hierarchy: If all 3 agencies rate a security, the middle rating is assigned; if 2 agencies rate a security, the lower rating is assigned. If none of the 3 agencies rate a security, we use DBRS Morningstar. If none of the 4 agencies rate a security, we use Kroll Bond Rating Agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
MFGI-SEM
MFS® Government
Securities Fund
Class R1-MFGGX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS Government Securities Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| R1 | $76 | 1.52% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 1,916,146,033 | Average Effective Maturity (yrs): | 6.6 | |
| Total Number of Holdings: | 812 | Average Effective Duration (yrs): | 5.5 | |
| Portfolio Turnover Rate (%): | 87 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Fixed Income | 91.8% |
| Money Market Funds | 8.2% |
Composition including fixed income credit quality
| AAA | 6.3% |
| AA | 1.4% |
| A | 0.2% |
| U.S. Government | 27.1% |
| Federal Agencies | 56.8% |
| Money Market Funds | 8.2% |
Ratings are assigned using Moody’s, Fitch, and Standard & Poor’s and applying a hierarchy: If all 3 agencies rate a security, the middle rating is assigned; if 2 agencies rate a security, the lower rating is assigned. If none of the 3 agencies rate a security, we use DBRS Morningstar. If none of the 4 agencies rate a security, we use Kroll Bond Rating Agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
MFGR1-SEM
MFS® Government
Securities Fund
Class R2-MGVSX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS Government Securities Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| R2 | $51 | 1.02% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 1,916,146,033 | Average Effective Maturity (yrs): | 6.6 | |
| Total Number of Holdings: | 812 | Average Effective Duration (yrs): | 5.5 | |
| Portfolio Turnover Rate (%): | 87 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Fixed Income | 91.8% |
| Money Market Funds | 8.2% |
Composition including fixed income credit quality
| AAA | 6.3% |
| AA | 1.4% |
| A | 0.2% |
| U.S. Government | 27.1% |
| Federal Agencies | 56.8% |
| Money Market Funds | 8.2% |
Ratings are assigned using Moody’s, Fitch, and Standard & Poor’s and applying a hierarchy: If all 3 agencies rate a security, the middle rating is assigned; if 2 agencies rate a security, the lower rating is assigned. If none of the 3 agencies rate a security, we use DBRS Morningstar. If none of the 4 agencies rate a security, we use Kroll Bond Rating Agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
MFGR2-SEM
MFS® Government
Securities Fund
Class R3-MFGHX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS Government Securities Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| R3 | $38 | 0.77% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 1,916,146,033 | Average Effective Maturity (yrs): | 6.6 | |
| Total Number of Holdings: | 812 | Average Effective Duration (yrs): | 5.5 | |
| Portfolio Turnover Rate (%): | 87 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Fixed Income | 91.8% |
| Money Market Funds | 8.2% |
Composition including fixed income credit quality
| AAA | 6.3% |
| AA | 1.4% |
| A | 0.2% |
| U.S. Government | 27.1% |
| Federal Agencies | 56.8% |
| Money Market Funds | 8.2% |
Ratings are assigned using Moody’s, Fitch, and Standard & Poor’s and applying a hierarchy: If all 3 agencies rate a security, the middle rating is assigned; if 2 agencies rate a security, the lower rating is assigned. If none of the 3 agencies rate a security, we use DBRS Morningstar. If none of the 4 agencies rate a security, we use Kroll Bond Rating Agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
MFGR3-SEM
MFS® Government
Securities Fund
Class R4-MFGJX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS Government Securities Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| R4 | $26 | 0.52% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 1,916,146,033 | Average Effective Maturity (yrs): | 6.6 | |
| Total Number of Holdings: | 812 | Average Effective Duration (yrs): | 5.5 | |
| Portfolio Turnover Rate (%): | 87 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Fixed Income | 91.8% |
| Money Market Funds | 8.2% |
Composition including fixed income credit quality
| AAA | 6.3% |
| AA | 1.4% |
| A | 0.2% |
| U.S. Government | 27.1% |
| Federal Agencies | 56.8% |
| Money Market Funds | 8.2% |
Ratings are assigned using Moody’s, Fitch, and Standard & Poor’s and applying a hierarchy: If all 3 agencies rate a security, the middle rating is assigned; if 2 agencies rate a security, the lower rating is assigned. If none of the 3 agencies rate a security, we use DBRS Morningstar. If none of the 4 agencies rate a security, we use Kroll Bond Rating Agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
MFGR4-SEM
MFS® Government
Securities Fund
Class R6-MFGKX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS Government Securities Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| R6 | $21 | 0.42% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 1,916,146,033 | Average Effective Maturity (yrs): | 6.6 | |
| Total Number of Holdings: | 812 | Average Effective Duration (yrs): | 5.5 | |
| Portfolio Turnover Rate (%): | 87 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Fixed Income | 91.8% |
| Money Market Funds | 8.2% |
Composition including fixed income credit quality
| AAA | 6.3% |
| AA | 1.4% |
| A | 0.2% |
| U.S. Government | 27.1% |
| Federal Agencies | 56.8% |
| Money Market Funds | 8.2% |
Ratings are assigned using Moody’s, Fitch, and Standard & Poor’s and applying a hierarchy: If all 3 agencies rate a security, the middle rating is assigned; if 2 agencies rate a security, the lower rating is assigned. If none of the 3 agencies rate a security, we use DBRS Morningstar. If none of the 4 agencies rate a security, we use Kroll Bond Rating Agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
MFGR6-SEM
MFS® New Discovery
Value Fund
Class A-NDVAX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS New Discovery Value Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| A | $64 | 1.23% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 2,285,841,364 | Portfolio Turnover Rate (%): | 31 | |
| Total Number of Holdings: | 146 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Equities | 97.6% |
| Money Market Funds | 2.4% |
Equity sectors
| Financials | 25.0% |
| Health Care | 12.6% |
| Industrials | 11.6% |
| Consumer Discretionary | 9.1% |
| Information Technology | 8.8% |
| Energy | 7.9% |
| Real Estate | 7.8% |
| Utilities | 6.0% |
| Materials | 5.7% |
| Consumer Staples | 2.0% |
| Communication Services | 1.1% |
Top ten holdings
| Plains GP Holdings LP | 1.4% |
| Cathay General Bancorp, Inc. | 1.3% |
| United Community Bank, Inc. | 1.2% |
| Prosperity Bancshares, Inc. | 1.2% |
| Hancock Whitney Corp. | 1.2% |
| First Interstate BancSystem, Inc. | 1.2% |
| Columbia Banking System, Inc. | 1.2% |
| CVB Financial Corp. | 1.1% |
| M/I Homes, Inc. | 1.1% |
| Popular, Inc. | 1.1% |
MFS uses the Global Industry Classification Standard (GICS®) for sector/industry reporting. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
NDVA-SEM
MFS® New Discovery
Value Fund
Class B-NDVBX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS New Discovery Value Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| B | $102 | 1.97% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 2,285,841,364 | Portfolio Turnover Rate (%): | 31 | |
| Total Number of Holdings: | 146 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Equities | 97.6% |
| Money Market Funds | 2.4% |
Equity sectors
| Financials | 25.0% |
| Health Care | 12.6% |
| Industrials | 11.6% |
| Consumer Discretionary | 9.1% |
| Information Technology | 8.8% |
| Energy | 7.9% |
| Real Estate | 7.8% |
| Utilities | 6.0% |
| Materials | 5.7% |
| Consumer Staples | 2.0% |
| Communication Services | 1.1% |
Top ten holdings
| Plains GP Holdings LP | 1.4% |
| Cathay General Bancorp, Inc. | 1.3% |
| United Community Bank, Inc. | 1.2% |
| Prosperity Bancshares, Inc. | 1.2% |
| Hancock Whitney Corp. | 1.2% |
| First Interstate BancSystem, Inc. | 1.2% |
| Columbia Banking System, Inc. | 1.2% |
| CVB Financial Corp. | 1.1% |
| M/I Homes, Inc. | 1.1% |
| Popular, Inc. | 1.1% |
MFS uses the Global Industry Classification Standard (GICS®) for sector/industry reporting. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
NDVB-SEM
MFS® New Discovery
Value Fund
Class C-NDVCX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS New Discovery Value Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| C | $103 | 1.98% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 2,285,841,364 | Portfolio Turnover Rate (%): | 31 | |
| Total Number of Holdings: | 146 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Equities | 97.6% |
| Money Market Funds | 2.4% |
Equity sectors
| Financials | 25.0% |
| Health Care | 12.6% |
| Industrials | 11.6% |
| Consumer Discretionary | 9.1% |
| Information Technology | 8.8% |
| Energy | 7.9% |
| Real Estate | 7.8% |
| Utilities | 6.0% |
| Materials | 5.7% |
| Consumer Staples | 2.0% |
| Communication Services | 1.1% |
Top ten holdings
| Plains GP Holdings LP | 1.4% |
| Cathay General Bancorp, Inc. | 1.3% |
| United Community Bank, Inc. | 1.2% |
| Prosperity Bancshares, Inc. | 1.2% |
| Hancock Whitney Corp. | 1.2% |
| First Interstate BancSystem, Inc. | 1.2% |
| Columbia Banking System, Inc. | 1.2% |
| CVB Financial Corp. | 1.1% |
| M/I Homes, Inc. | 1.1% |
| Popular, Inc. | 1.1% |
MFS uses the Global Industry Classification Standard (GICS®) for sector/industry reporting. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
NDVC-SEM
MFS® New Discovery
Value Fund
Class I-NDVIX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS New Discovery Value Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| I | $51 | 0.98% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 2,285,841,364 | Portfolio Turnover Rate (%): | 31 | |
| Total Number of Holdings: | 146 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Equities | 97.6% |
| Money Market Funds | 2.4% |
Equity sectors
| Financials | 25.0% |
| Health Care | 12.6% |
| Industrials | 11.6% |
| Consumer Discretionary | 9.1% |
| Information Technology | 8.8% |
| Energy | 7.9% |
| Real Estate | 7.8% |
| Utilities | 6.0% |
| Materials | 5.7% |
| Consumer Staples | 2.0% |
| Communication Services | 1.1% |
Top ten holdings
| Plains GP Holdings LP | 1.4% |
| Cathay General Bancorp, Inc. | 1.3% |
| United Community Bank, Inc. | 1.2% |
| Prosperity Bancshares, Inc. | 1.2% |
| Hancock Whitney Corp. | 1.2% |
| First Interstate BancSystem, Inc. | 1.2% |
| Columbia Banking System, Inc. | 1.2% |
| CVB Financial Corp. | 1.1% |
| M/I Homes, Inc. | 1.1% |
| Popular, Inc. | 1.1% |
MFS uses the Global Industry Classification Standard (GICS®) for sector/industry reporting. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
NDVI-SEM
MFS® New Discovery
Value Fund
Class R1-NDVRX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS New Discovery Value Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| R1 | $102 | 1.98% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 2,285,841,364 | Portfolio Turnover Rate (%): | 31 | |
| Total Number of Holdings: | 146 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Equities | 97.6% |
| Money Market Funds | 2.4% |
Equity sectors
| Financials | 25.0% |
| Health Care | 12.6% |
| Industrials | 11.6% |
| Consumer Discretionary | 9.1% |
| Information Technology | 8.8% |
| Energy | 7.9% |
| Real Estate | 7.8% |
| Utilities | 6.0% |
| Materials | 5.7% |
| Consumer Staples | 2.0% |
| Communication Services | 1.1% |
Top ten holdings
| Plains GP Holdings LP | 1.4% |
| Cathay General Bancorp, Inc. | 1.3% |
| United Community Bank, Inc. | 1.2% |
| Prosperity Bancshares, Inc. | 1.2% |
| Hancock Whitney Corp. | 1.2% |
| First Interstate BancSystem, Inc. | 1.2% |
| Columbia Banking System, Inc. | 1.2% |
| CVB Financial Corp. | 1.1% |
| M/I Homes, Inc. | 1.1% |
| Popular, Inc. | 1.1% |
MFS uses the Global Industry Classification Standard (GICS®) for sector/industry reporting. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
NDVR1-SEM
MFS® New Discovery
Value Fund
Class R2-NDVSX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS New Discovery Value Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| R2 | $77 | 1.48% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 2,285,841,364 | Portfolio Turnover Rate (%): | 31 | |
| Total Number of Holdings: | 146 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Equities | 97.6% |
| Money Market Funds | 2.4% |
Equity sectors
| Financials | 25.0% |
| Health Care | 12.6% |
| Industrials | 11.6% |
| Consumer Discretionary | 9.1% |
| Information Technology | 8.8% |
| Energy | 7.9% |
| Real Estate | 7.8% |
| Utilities | 6.0% |
| Materials | 5.7% |
| Consumer Staples | 2.0% |
| Communication Services | 1.1% |
Top ten holdings
| Plains GP Holdings LP | 1.4% |
| Cathay General Bancorp, Inc. | 1.3% |
| United Community Bank, Inc. | 1.2% |
| Prosperity Bancshares, Inc. | 1.2% |
| Hancock Whitney Corp. | 1.2% |
| First Interstate BancSystem, Inc. | 1.2% |
| Columbia Banking System, Inc. | 1.2% |
| CVB Financial Corp. | 1.1% |
| M/I Homes, Inc. | 1.1% |
| Popular, Inc. | 1.1% |
MFS uses the Global Industry Classification Standard (GICS®) for sector/industry reporting. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
NDVR2-SEM
MFS® New Discovery
Value Fund
Class R3-NDVTX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS New Discovery Value Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| R3 | $63 | 1.22% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 2,285,841,364 | Portfolio Turnover Rate (%): | 31 | |
| Total Number of Holdings: | 146 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Equities | 97.6% |
| Money Market Funds | 2.4% |
Equity sectors
| Financials | 25.0% |
| Health Care | 12.6% |
| Industrials | 11.6% |
| Consumer Discretionary | 9.1% |
| Information Technology | 8.8% |
| Energy | 7.9% |
| Real Estate | 7.8% |
| Utilities | 6.0% |
| Materials | 5.7% |
| Consumer Staples | 2.0% |
| Communication Services | 1.1% |
Top ten holdings
| Plains GP Holdings LP | 1.4% |
| Cathay General Bancorp, Inc. | 1.3% |
| United Community Bank, Inc. | 1.2% |
| Prosperity Bancshares, Inc. | 1.2% |
| Hancock Whitney Corp. | 1.2% |
| First Interstate BancSystem, Inc. | 1.2% |
| Columbia Banking System, Inc. | 1.2% |
| CVB Financial Corp. | 1.1% |
| M/I Homes, Inc. | 1.1% |
| Popular, Inc. | 1.1% |
MFS uses the Global Industry Classification Standard (GICS®) for sector/industry reporting. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
NDVR3-SEM
MFS® New Discovery
Value Fund
Class R4-NDVUX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS New Discovery Value Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| R4 | $51 | 0.98% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 2,285,841,364 | Portfolio Turnover Rate (%): | 31 | |
| Total Number of Holdings: | 146 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Equities | 97.6% |
| Money Market Funds | 2.4% |
Equity sectors
| Financials | 25.0% |
| Health Care | 12.6% |
| Industrials | 11.6% |
| Consumer Discretionary | 9.1% |
| Information Technology | 8.8% |
| Energy | 7.9% |
| Real Estate | 7.8% |
| Utilities | 6.0% |
| Materials | 5.7% |
| Consumer Staples | 2.0% |
| Communication Services | 1.1% |
Top ten holdings
| Plains GP Holdings LP | 1.4% |
| Cathay General Bancorp, Inc. | 1.3% |
| United Community Bank, Inc. | 1.2% |
| Prosperity Bancshares, Inc. | 1.2% |
| Hancock Whitney Corp. | 1.2% |
| First Interstate BancSystem, Inc. | 1.2% |
| Columbia Banking System, Inc. | 1.2% |
| CVB Financial Corp. | 1.1% |
| M/I Homes, Inc. | 1.1% |
| Popular, Inc. | 1.1% |
MFS uses the Global Industry Classification Standard (GICS®) for sector/industry reporting. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
NDVR4-SEM
MFS® New Discovery
Value Fund
Class R6-NDVVX
Semiannual Shareholder Report
This semiannual shareholder report contains important information about MFS New Discovery Value Fund for the period of March 1, 2026 to August 31, 2026. You can find additional information about the fund at funds.mfs.com. You can also request this information by contacting us at 1‑800‑225‑2606 or by sending an e-mail request to [email protected].
FUND EXPENSES
What were the fund costs for the last six months?
| (based on a hypothetical $10,000 investment) | ||
| Class Name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment (annualized) |
| R6 | $45 | 0.87% |
FUND STATISTICS AS OF 8/31/26
| Net Assets ($): | 2,285,841,364 | Portfolio Turnover Rate (%): | 31 | |
| Total Number of Holdings: | 146 |
Where the fund holds derivatives, they are not included in the total number of portfolio holdings.
PORTFOLIO COMPOSITION (BASED ON TOTAL INVESTMENTS AS OF 8/31/26)
Portfolio structure
| Equities | 97.6% |
| Money Market Funds | 2.4% |
Equity sectors
| Financials | 25.0% |
| Health Care | 12.6% |
| Industrials | 11.6% |
| Consumer Discretionary | 9.1% |
| Information Technology | 8.8% |
| Energy | 7.9% |
| Real Estate | 7.8% |
| Utilities | 6.0% |
| Materials | 5.7% |
| Consumer Staples | 2.0% |
| Communication Services | 1.1% |
Top ten holdings
| Plains GP Holdings LP | 1.4% |
| Cathay General Bancorp, Inc. | 1.3% |
| United Community Bank, Inc. | 1.2% |
| Prosperity Bancshares, Inc. | 1.2% |
| Hancock Whitney Corp. | 1.2% |
| First Interstate BancSystem, Inc. | 1.2% |
| Columbia Banking System, Inc. | 1.2% |
| CVB Financial Corp. | 1.1% |
| M/I Homes, Inc. | 1.1% |
| Popular, Inc. | 1.1% |
MFS uses the Global Industry Classification Standard (GICS®) for sector/industry reporting. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS.
ADDITIONAL INFORMATION
You can find the fund’s summary prospectus, prospectus, most recent annual and semiannual reports, financial information, portfolio holdings, and statement of additional information online at funds.mfs.com. Proxy voting information is available without charge by calling 1‑800‑225‑2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s website at http://www.sec.gov.
IMPORTANT NOTICE REGARDING DELIVERY OF SHAREHOLDER MATERIALS
The fund produces financial annual and semiannual reports and updates its summary prospectus and prospectus annually. To avoid sending duplicate copies of materials to households, only one copy of the fund's annual and semiannual report and summary prospectus may be mailed to shareholders having the same last name and residential address on the fund's records. However, any shareholder may contact the fund at 1-800-225-2606 or the shareholder's financial intermediary to request that copies of these reports and summary prospectuses be sent personally to that shareholder.
NDVR6-SEM
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 in the financial statements of such series under Item 7 of this Form N-CSR.
MFS Diversified Income Fund
ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
MFS Diversified Income Fund
Portfolio of Investments − 8/31/26 (unaudited)
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – 37.9% |
||||
|
Aerospace & Defense – 0.2% |
||||
|
Boeing Co., 5.15%, 5/01/2030 |
$ |
561,000 |
$562,622 |
|
|
Boeing Co., 5.805%, 5/01/2050 |
1,882,000 |
1,774,067 |
||
|
Honeywell Aerospace, Inc., 4.6%, 3/16/2033 |
668,000 |
645,895 |
||
|
Honeywell Aerospace, Inc., 4.95%, 3/16/2036 |
668,000 |
641,712 |
||
|
Honeywell Aerospace, Inc., 5.732%, 3/16/2056 |
307,000 |
291,710 |
||
|
Huntington Ingalls Industries, Inc., 5.749%, 1/15/2035 |
324,000 |
326,808 |
||
|
$4,242,814 |
||||
|
Asset-Backed & Securitized – 1.4% |
||||
|
3650R Commercial Mortgage Trust, 2021-PF1, “XA”, 1.096%, 11/15/2054 (i) |
$ |
6,315,709 |
$187,716 |
|
|
Affirm, Inc., 2026-X1, “A”, 4.27%, 4/15/2031 (n) |
224,106 |
224,023 |
||
|
AmeriCredit Automobile Receivables Trust, 2026-1, “A”, 4.16%, 7/12/2029 (n) |
484,477 |
484,056 |
||
|
Angel Oak Mortgage Trust, 2024-13, “A1”, 5.464%, 12/26/2069 (n) |
661,173 |
659,000 |
||
|
ARDN Mortgage Trust, 2025-ARCP, “A”, FLR, 5.389% (SOFR - 1mo. + 1.75%), 6/15/2035 (n) |
1,097,000 |
1,098,714 |
||
|
AREIT 2022-CRE6 Trust, “AS”, FLR, 5.286% (SOFR - 30 day + 1.65%), 1/20/2037 (n) |
946,500 |
945,371 |
||
|
ARI Fleet Lease Trust, 2023-B, “A2”, 6.05%, 7/15/2032 (n) |
20,089 |
20,128 |
||
|
AutoNation Finance Trust, 2026-N1A, “A2”, 4.48%, 2/15/2029 (n) |
195,000 |
194,825 |
||
|
Babson CLO Ltd., 2021-3A, “B1R”, FLR, 5.359% (SOFR - 3mo. + 1.63%), 1/18/2035 (n) |
900,000 |
901,317 |
||
|
BBCMS Mortgage Trust, 2021-C9, “XA”, 1.659%, 2/15/2054 (i) |
3,311,847 |
178,890 |
||
|
BBCMS Mortgage Trust, 2022-C18, “XA”, 0.656%, 12/15/2055 (i) |
4,143,352 |
124,421 |
||
|
BDS Ltd., 2024-FL13, “A”, FLR, 5.223% (SOFR - 1mo. + 1.5762%), 9/19/2039 (n) |
333,076 |
333,229 |
||
|
Benchmark 2021-B24 Mortgage Trust, “XA”, 1.19%, 3/15/2054 (i) |
6,160,910 |
206,574 |
||
|
Benchmark 2021-B26 Mortgage Trust, “XA”, 0.934%, 6/15/2054 (i) |
6,102,573 |
168,012 |
||
|
Benchmark 2021-B27 Mortgage Trust, “XA”, 1.343%, 7/15/2054 (i) |
7,215,688 |
292,632 |
||
|
Benchmark 2022-B36 Mortgage Trust, “XA”, 0.808%, 7/15/2055 (i) |
6,928,501 |
240,233 |
||
|
Business Jet Securities LLC, 2024-1A, “A”, 6.197%, 5/15/2039 (n) |
125,700 |
126,584 |
||
|
BX Trust, 2026-CLS, “A”, 5.039%, 5/15/2043 (n) |
399,000 |
399,499 |
||
|
BX Trust, 2026-LBTY, “A”, FLR, 4.9% (SOFR - 1mo. + 1.25%), 8/15/2048 (n) |
289,509 |
289,507 |
||
|
CarMax Select Receivables Trust, 2026-B, “A2”, 4.35%, 4/16/2029 |
147,000 |
146,946 |
||
|
Citigroup Commercial Mortgage Trust, 2019-XA, “C7”, 0.938%, 12/15/2072 (i)(n) |
8,316,892 |
193,907 |
||
|
Colt Funding LLC, 2024-6, “A1”, 5.39%, 11/25/2069 (n) |
478,438 |
476,699 |
||
|
Commercial Mortgage Pass-Through Certificates, 2021-BN32, “XA”, 0.811%, 4/15/2054 (i) |
4,528,375 |
114,125 |
||
|
Commercial Mortgage Pass-Through Certificates, 2022-BN43, “XA”, 1.067%, 8/15/2055 (i) |
7,850,482 |
334,674 |
||
|
Commercial Mortgage Pass-Through Certificates, 2024-CBM, “A2”, 5.867%, 12/10/2041 (n) |
201,342 |
201,969 |
||
|
CPS Auto Receivables Trust, 2026-C, “A”, 4.52%, 4/15/2030 (n) |
171,490 |
171,456 |
||
|
ELM Trust, 2024-ELM, “A10”, 5.994%, 6/10/2039 (n) |
1,030,787 |
1,029,768 |
||
|
EQT Trust, 2024-EXTR, “B”, 5.655%, 7/05/2041 (n) |
234,585 |
234,850 |
||
|
Exeter Automobile Receivables Trust, 2026-2A, “A2”, 4.31%, 11/15/2028 |
492,365 |
492,397 |
||
|
GLS Auto Select Receivables Trust, 2026-2A, “A2”, 4.04%, 11/15/2028 (n) |
243,889 |
243,678 |
||
|
GLS Auto Select Receivables Trust, 2026-3A, “A2”, 4.47%, 3/15/2029 (n) |
186,000 |
185,943 |
||
|
Home Owner Mortgage Enhanced, 5.077%, 8/25/2060 (n) |
399,022 |
391,723 |
||
|
JPMorgan Mortgage Trust, 2026-NQM1, “A1”, 4.745%, 6/25/2066 (n) |
152,745 |
149,648 |
||
|
JPMorgan Mortgage Trust, 2026-NQM5, “A1”, 5.677%, 1/25/2067 (n) |
322,874 |
322,275 |
||
|
KREF 2018-FT1 Ltd., “AS”, FLR, 5.054% ((SOFR - 1mo. + 0.11448%) + 1.3%), 2/15/2039 (n) |
9,159 |
9,158 |
||
|
LAD Select Auto Receivables Trust, 2026-A, “A2”, 4.59%, 4/16/2029 (n) |
258,000 |
257,973 |
||
|
MF1 2021-FL7 Ltd., “A”, FLR, 4.833% ((SOFR - 1mo. + 0.11448%) + 1.08%), 10/16/2036 (n) |
146,247 |
146,243 |
||
|
MF1 2022-FL8 Ltd., “A”, FLR, 4.997% (SOFR - 1mo. + 1.35%), 2/19/2037 (n) |
471,359 |
471,356 |
||
|
MF1 2024-FL5 LLC, “A”, FLR, 5.327% (SOFR - 1mo. + 1.688%), 8/18/2041 (n) |
1,151,000 |
1,151,707 |
||
|
Morgan Stanley Capital I Trust, 2018-H4, “XA”, 0.966%, 12/15/2051 (i) |
8,451,064 |
124,450 |
||
DIFFS-SEM
1
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Asset-Backed & Securitized – continued |
||||
|
Morgan Stanley Capital I Trust, 2021-L5, “XA”, 1.301%, 5/15/2054 (i) |
$ |
2,338,360 |
$97,016 |
|
|
Morgan Stanley Residential Mortgage Loan Trust, 2024-NQM3, “A1”, 5.044%, 7/25/2069 (n) |
224,452 |
222,449 |
||
|
Morgan Stanley Residential Mortgage Loan Trust, 2025-NQM3, “A1”, 5.53%, 5/25/2070 (n) |
289,795 |
288,738 |
||
|
Morgan Stanley Residential Mortgage Loan Trust, 2026-INV1, “A9”, FLR, 4.793% (SOFR - 1mo. + 1.15%), 2/25/2061 (n) |
238,418 |
236,626 |
||
|
MTN Commercial Mortgage Trust, 2026-LPFX, “A”, 5.153%, 5/15/2043 (n) |
100,000 |
98,715 |
||
|
New Residential Mortgage Loan Trust, 2026-NQM2, “A1”, 4.743%, 12/25/2065 (n) |
455,625 |
446,859 |
||
|
New Residential Mortgage Loan Trust, 2026-NQM8, “A1”, 5.564%, 8/25/2066 (n) |
310,055 |
308,542 |
||
|
New Residential Mortgage Loan Trust, 2026-NQM9, “A1”, 4.833%, 2/25/2066 (n) |
918,899 |
902,645 |
||
|
OBX Trust, 2024-NQM1, “A1”, 5.928%, 11/25/2063 (n) |
196,497 |
196,301 |
||
|
OBX Trust, 2024-NQM1, “A2”, 6.253%, 11/25/2063 (n) |
53,038 |
52,989 |
||
|
OBX Trust, 2024-NQM15, “A1”, 5.316%, 10/25/2064 (n) |
124,582 |
124,295 |
||
|
OBX Trust, 2024-NQM16, “A1”, 5.53%, 10/25/2064 (n) |
224,256 |
224,105 |
||
|
OBX Trust, 2024-NQM3, “A1”, 6.129%, 12/25/2063 (n) |
238,909 |
238,931 |
||
|
OBX Trust, 2025-NQM8, “A1”, 5.472%, 3/25/2065 (n) |
218,387 |
217,701 |
||
|
Ocwen Loan Investment Trust, 2026-HB3, “A”, 3%, 6/25/2039 (n) |
191,325 |
187,410 |
||
|
Palmer Square Loan Funding, 2024-3A Ltd., “A2R”, FLR, 4.907% (SOFR - 3mo. + 1.15%), 8/08/2032 (n) |
250,000 |
250,052 |
||
|
Palmer Square Loan Funding, 2025-2A Ltd., “A2”, FLR, 5.153% (SOFR - 3mo. + 1.4%), 7/15/2033 (n) |
1,225,000 |
1,225,167 |
||
|
PFS Financing Corp., 2023-C, “B”, 5.91%, 10/15/2028 (n) |
208,000 |
208,346 |
||
|
PFS Financing Corp., 2025-A, “A”, FLR, 4.286% (SOFR - 1mo. + 0.65%), 1/15/2029 (n) |
692,000 |
692,200 |
||
|
PMT Loan Trust, 2026-CNF1, “A26”, FLR, 4.843% (SOFR - 1mo. + 1.2%), 1/25/2057 (n) |
169,264 |
168,889 |
||
|
PMT Loan Trust, 2026-INV2, “A35”, FLR, 4.793% (SOFR - 1mo. + 1.15%), 1/25/2057 (n) |
919,584 |
912,652 |
||
|
Provident Funding Mortgage Trust, 2024-1, “A3”, 5.5%, 12/25/2054 (n) |
296,946 |
295,420 |
||
|
Provident Funding Mortgage Trust, 2025-3, “A4”, 5.5%, 8/25/2055 (n) |
697,800 |
694,105 |
||
|
RCKT Trust, 2025-1A, “A”, 4.9%, 7/25/2034 (n) |
32,561 |
32,587 |
||
|
Santander Drive Auto Receivables Trust, 2026-1, “A2”, 4.04%, 3/15/2029 |
229,863 |
229,665 |
||
|
Sequoia Mortgage Trust, 2026-Med2, “A1A”, 5.613%, 8/25/2056 (n) |
387,461 |
383,954 |
||
|
Shackleton 2019-14A CLO Ltd., “BRR”, FLR, 5.279% (SOFR - 3mo. + 1.55%), 7/20/2034 (n) |
948,207 |
948,349 |
||
|
Verus Securitization Trust, 2024-1, “A2”, 5.915%, 1/25/2069 (n) |
102,971 |
102,816 |
||
|
Virginia Power Fuel Securitization LLC, 5.088%, 5/01/2027 |
135,902 |
136,121 |
||
|
Wells Fargo Commercial Mortgage Trust, 2018-C48, “XA”, 1.098%, 1/15/2052 (i)(n) |
4,775,566 |
76,251 |
||
|
$24,125,572 |
||||
|
Auto & Auto Components – 0.1% |
||||
|
Ford Motor Credit Co. LLC, 5.753%, 4/06/2033 |
$ |
580,000 |
$570,775 |
|
|
Hyundai Capital America, 6.375%, 4/08/2030 (n) |
661,000 |
684,380 |
||
|
Stellantis Financial Services US Corp., 5.4%, 6/15/2029 (n) |
643,000 |
635,138 |
||
|
$1,890,293 |
||||
|
Brokerage & Asset Managers – 0.4% |
||||
|
Blue Owl Finance LLC, 6.75%, 8/18/2036 |
$ |
579,000 |
$577,633 |
|
|
Carlyle Group, Inc., 5.05%, 9/19/2035 |
441,000 |
416,843 |
||
|
Charles Schwab Corp., 6.136% to 8/24/2033, FLR (SOFR - 1 day + 2.01%) to 8/24/2034 |
500,000 |
520,755 |
||
|
Charles Schwab Corp., 4.914% to 11/14/2035, FLR (SOFR - 1 day + 1.23%) to 11/14/2036 |
762,000 |
724,868 |
||
|
Charles Schwab Corp., 5.493% to 5/21/2036, FLR (SOFR - 1 day + 1.28%) to 5/21/2037 |
924,000 |
910,875 |
||
|
Citadel Securities Global Holdings LLC, 5.5%, 6/18/2030 (n) |
643,000 |
644,466 |
||
|
Citadel Securities Global Holdings LLC, 5.75%, 3/27/2036 (n) |
800,000 |
776,350 |
||
|
Jefferies Financial Group, Inc., 5.125%, 4/28/2031 |
469,000 |
458,664 |
||
|
Jefferies Financial Group, Inc., 5.5%, 2/15/2036 |
753,000 |
713,023 |
||
|
LPL Holdings, Inc., 4.625%, 11/15/2027 (n) |
440,000 |
436,964 |
||
|
LPL Holdings, Inc., 4.375%, 5/15/2031 (n) |
724,000 |
689,172 |
||
|
LPL Holdings, Inc., 5.65%, 3/15/2035 |
902,000 |
883,465 |
||
|
$7,753,078 |
||||
2
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Building – 0.3% |
||||
|
Ferguson Enterprises, Inc., 5%, 10/03/2034 |
$ |
1,167,000 |
$1,130,222 |
|
|
JH North America Holdings, Inc., 5.875%, 1/31/2031 (n) |
565,000 |
568,611 |
||
|
JH North America Holdings, Inc., 6.125%, 7/31/2032 (n) |
516,000 |
520,541 |
||
|
Martin Marietta Materials, Inc., 5.625%, 8/15/2036 |
573,000 |
573,043 |
||
|
Martin Marietta Materials, Inc., 5.5%, 12/01/2054 |
216,000 |
196,933 |
||
|
Martin Marietta Materials, Inc., 6.375%, 8/15/2056 |
564,000 |
576,018 |
||
|
Vulcan Materials Co., 4.5%, 6/15/2047 |
419,000 |
340,148 |
||
|
Vulcan Materials Co., 5.7%, 12/01/2054 |
581,000 |
550,951 |
||
|
$4,456,467 |
||||
|
Business Services – 0.2% |
||||
|
Automatic Data Processing, Inc., 5%, 5/07/2036 |
$ |
594,000 |
$576,745 |
|
|
Beacon Point DC LLC, 6.129%, 11/30/2042 (n) |
692,000 |
656,782 |
||
|
Experian PLC, 5.35%, 8/24/2036 (n) |
640,000 |
623,113 |
||
|
Paychex, Inc., 5.35%, 4/15/2032 |
897,000 |
896,200 |
||
|
QTS Fayetteville I Dc1-2 LLC, 5.7%, 4/15/2036 (n) |
541,000 |
489,537 |
||
|
$3,242,377 |
||||
|
Cable TV – 0.2% |
||||
|
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 6.384%, 10/23/2035 |
$ |
444,000 |
$432,839 |
|
|
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 7.087%, 9/01/2038 (n) |
345,000 |
341,566 |
||
|
Comcast Corp., 5.35%, 5/15/2053 |
844,000 |
694,519 |
||
|
United Group B.V., 6.25%, 1/31/2032 (n) |
EUR |
520,000 |
606,471 |
|
|
Videotron Ltd., 3.625%, 6/15/2029 (n) |
$ |
483,000 |
464,768 |
|
|
Videotron Ltd., 5.7%, 1/15/2035 (n) |
726,000 |
712,087 |
||
|
$3,252,250 |
||||
|
Chemicals – 0.1% |
||||
|
Dangote Fertiliser Ltd., 7.75%, 5/05/2031 (n) |
$ |
834,000 |
$837,033 |
|
|
ICL Group Ltd., 6.036%, 6/16/2036 (n) |
731,000 |
720,925 |
||
|
Maxam Prill S.à r.l., 7.75%, 7/15/2030 (n) |
705,000 |
728,694 |
||
|
$2,286,652 |
||||
|
Conglomerates – 0.3% |
||||
|
Eaton Corp. PLC, 4.5%, 3/06/2033 |
$ |
794,000 |
$764,733 |
|
|
Eaton Corp. PLC, 4.8%, 3/06/2036 |
484,000 |
462,619 |
||
|
GE Vernova, Inc., 4.875%, 2/04/2036 |
699,000 |
670,878 |
||
|
nVent Finance S.à r.l., 5.65%, 5/15/2033 |
855,000 |
864,708 |
||
|
Regal Rexnord Corp., 6.05%, 4/15/2028 |
903,000 |
918,411 |
||
|
Regal Rexnord Corp., 6.3%, 2/15/2030 |
171,000 |
176,272 |
||
|
Regal Rexnord Corp., 6.4%, 4/15/2033 |
258,000 |
267,914 |
||
|
Westinghouse Air Brake Technologies Corp., 4.7%, 9/15/2028 |
563,000 |
561,779 |
||
|
Westinghouse Air Brake Technologies Corp., 5.611%, 3/11/2034 |
527,000 |
531,714 |
||
|
$5,219,028 |
||||
|
Consumer Products – 0.1% |
||||
|
Haleon US Capital LLC, 3.625%, 3/24/2032 |
$ |
685,000 |
$634,812 |
|
|
Haleon US Capital LLC, 5.375%, 8/21/2036 |
1,009,000 |
1,002,291 |
||
|
$1,637,103 |
||||
3
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Consumer Services – 0.2% |
||||
|
CBRE Services, Inc., 5.95%, 8/15/2034 |
$ |
768,000 |
$782,447 |
|
|
Meituan, 4.5%, 5/05/2031 (n) |
786,000 |
754,725 |
||
|
Rentokil Terminix Funding PLC, 4.625%, 4/23/2031 (n) |
200,000 |
194,093 |
||
|
Rentokil Terminix LLC, 5%, 4/28/2030 (n) |
923,000 |
916,366 |
||
|
$2,647,631 |
||||
|
Containers – 0.1% |
||||
|
San Miguel Industrias PET S.A., 3.75%, 8/02/2028 (n) |
$ |
2,000,000 |
$1,940,000 |
|
|
Diversified Financial Services – 0.5% |
||||
|
Avolon Holdings Funding Ltd., 2.75%, 2/21/2028 (n) |
$ |
1,192,000 |
$1,154,857 |
|
|
Avolon Holdings Funding Ltd., 4.95%, 10/15/2032 (n) |
625,000 |
602,334 |
||
|
Blackstone Secured Lending Fund, 5.35%, 4/13/2028 |
416,000 |
414,772 |
||
|
Blackstone Secured Lending Fund, 5.9%, 5/21/2031 |
381,000 |
373,505 |
||
|
Blue Owl Credit Income Corp., 6.55%, 10/15/2031 (n) |
932,000 |
926,006 |
||
|
Goldman Sachs Private Credit Corp., 6.15%, 6/16/2031 (n) |
536,000 |
530,270 |
||
|
IIFL Finance Ltd., 7.6%, 9/10/2029 (n) |
729,000 |
737,840 |
||
|
Macquarie AirFinance Holdings Ltd., 5.15%, 3/17/2030 (n) |
939,000 |
930,089 |
||
|
Muangthai Capital PCL, 7.55%, 7/21/2030 (n) |
403,000 |
407,745 |
||
|
Muthoot Finance Ltd., 7.125%, 2/14/2028 (n) |
714,000 |
720,767 |
||
|
Muthoot Finance Ltd., 6.375%, 3/02/2030 (n) |
669,000 |
668,195 |
||
|
SMBC Aviation Capital Finance DAC, 5.3%, 4/03/2029 (n) |
911,000 |
917,240 |
||
|
SMBC Aviation Capital Finance DAC, 5.25%, 11/26/2035 (n) |
530,000 |
509,143 |
||
|
SMBC Aviation Capital Finance DAC, 5.7%, 7/23/2036 (n) |
480,000 |
474,172 |
||
|
Tata Capital Ltd., 5.332%, 1/21/2030 |
200,000 |
199,638 |
||
|
$9,566,573 |
||||
|
Electrical Equipment – 0.0% |
||||
|
Arrow Electronics, Inc., 5.875%, 4/10/2034 |
$ |
785,000 |
$793,442 |
|
|
Emerging Market Quasi-Sovereign – 3.5% |
||||
|
Abu Dhabi Crude Oil Pipeline, 4.6%, 11/02/2047 |
$ |
870,000 |
$750,823 |
|
|
Al Jawaher Assets Co. SPC (Sultanate of Oman), 4.662%, 10/29/2030 (n) |
803,000 |
781,744 |
||
|
Aloqabank JSC (Republic of Uzbekistan), 7.7%, 5/18/2031 (n) |
427,000 |
425,483 |
||
|
Avilease Capital Ltd. (Kingdom of Saudi Arabia), 4.75%, 11/12/2030 (n) |
1,002,000 |
972,148 |
||
|
Baiterek National Investment Holding JSC (Republic of Kazakhstan), 5.45%, 5/08/2028 (n) |
640,000 |
644,055 |
||
|
Baiterek National Investment Holding JSC (Republic of Kazakhstan), 4.65%, 10/01/2030 (n) |
306,000 |
300,063 |
||
|
Baiterek National Investment Holding JSC (Republic of Kazakhstan), 5.2%, 5/06/2033 (n) |
772,000 |
761,964 |
||
|
Banco Nacional de Comercio Exterior, S.N.C. (United Mexican States), 6%, 5/14/2036 (n) |
619,000 |
613,119 |
||
|
Bank Gospodarstwa Krajowego (Republic of Poland), 5.375%, 5/22/2033 (n) |
1,041,000 |
1,040,056 |
||
|
Bank Gospodarstwa Krajowego (Republic of Poland), 4.25%, 3/18/2037 |
EUR |
364,000 |
422,172 |
|
|
Bulgarian Energy Holding EAD, 2.45%, 7/22/2028 |
1,054,000 |
1,183,594 |
||
|
Bulgarian Energy Holding EAD, 4.25%, 6/19/2030 |
515,000 |
590,628 |
||
|
Chile Electricity Lux MPC II S.à r.l., 6.01%, 1/20/2033 (n) |
$ |
395,175 |
404,082 |
|
|
Chile Electricity Lux MPC II S.à r.l., 5.58%, 10/20/2035 (n) |
664,703 |
662,709 |
||
|
Chile Electricity Lux MPC II S.à r.l., 5.672%, 10/20/2035 (n) |
708,736 |
712,230 |
||
|
Codelco, Inc. (Republic of Chile), 6.33%, 1/13/2035 (n) |
720,000 |
740,448 |
||
|
Codelco, Inc. (Republic of Chile), 6.44%, 1/26/2036 (n) |
597,000 |
621,854 |
||
|
Codelco, Inc. (Republic of Chile), 5.529%, 1/30/2037 (n) |
688,000 |
666,528 |
||
|
Codelco, Inc. (Republic of Chile), 6.78%, 1/13/2055 (n) |
817,000 |
840,856 |
||
|
Comisión Ejecutiva Hidroeléctrica del Río Lempa (Republic of El Salvador), 8.65%, 1/24/2033 (n) |
330,000 |
356,235 |
||
|
Comision Federal de Electricidad (United Mexican States), 6.045%, 1/28/2034 (n) |
824,000 |
802,164 |
||
|
Corporacion Financiera de Desarrollo S.A. (Republic of Peru), 5.95%, 4/30/2029 (n) |
1,013,000 |
1,033,371 |
||
|
Corporacion Financiera de Desarrollo S.A. (Republic of Peru), 5.5%, 5/06/2030 (n) |
423,000 |
425,940 |
||
4
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Emerging Market Quasi-Sovereign – continued |
||||
|
DAE Funding LLC (United Arab Emirates), 4.95%, 1/15/2033 (n) |
$ |
700,000 |
$669,196 |
|
|
DAE Sukuk (DIFC) Ltd. (United Arab Emirates), 4.5%, 10/16/2030 (n) |
735,000 |
711,473 |
||
|
Danantara Investment (Republic of Indonesia), 5.35%, 6/18/2031 (n) |
619,000 |
614,198 |
||
|
Danantara Investment (Republic of Indonesia), 5.95%, 6/18/2036 (n) |
627,000 |
617,579 |
||
|
Dhafrah PV2 Energy Co. LLC (United Arab Emirates), 5.794%, 6/30/2053 (n) |
812,744 |
785,293 |
||
|
Dua Capital Ltd. (Federation of Malaysia), 2.78%, 5/11/2031 |
878,000 |
795,227 |
||
|
Ecopetrol S.A. (Republic of Colombia), 8.375%, 1/19/2036 |
724,000 |
765,749 |
||
|
El Fondo Mivivienda S.A. (Republic of Peru), 5.4%, 3/31/2031 (n) |
840,000 |
840,611 |
||
|
Empresa Nacional del Petroleo (Republic of Chile), 5.25%, 11/06/2029 |
495,000 |
496,486 |
||
|
Empresa Nacional del Petroleo (Republic of Chile), 5.95%, 7/30/2034 (n) |
487,000 |
488,706 |
||
|
Empresa Nacional del Petroleo (Republic of Chile), 4.5%, 9/14/2047 |
895,000 |
708,768 |
||
|
Eskom Holdings SOC Ltd. (Republic of South Africa), 6.35%, 8/10/2028 (n) |
684,000 |
694,996 |
||
|
Export-Import Bank of India, 5.5%, 1/18/2033 (n) |
1,143,000 |
1,146,734 |
||
|
Export-Import Bank of India, 5.5%, 1/13/2035 (n) |
1,099,000 |
1,094,971 |
||
|
Export-Import Bank of India, 5%, 1/12/2036 (n) |
1,048,000 |
1,000,997 |
||
|
Export-Import Bank of India, 5.75%, 1/12/2056 (n) |
455,000 |
433,344 |
||
|
GACI First Investment Co. (Kingdom of Saudi Arabia), 5.25%, 5/14/2033 |
874,000 |
864,540 |
||
|
Grupo Energia Bogota S.A. ESP (Republic of Colombia), 5.75%, 10/22/2035 (n) |
687,000 |
671,062 |
||
|
Indian Railway Finance Corp., 2.8%, 2/10/2031 (n) |
1,354,000 |
1,218,803 |
||
|
JSC National Co. Kazakhstan Temir Zholy, 4.875%, 4/29/2031 (n) |
518,000 |
505,192 |
||
|
JSC National Co. Kazakhstan Temir Zholy, 5.25%, 4/29/2036 (n) |
468,000 |
447,676 |
||
|
JSC National Co. QazaqGaz (Republic of Kazakhstan), 5.625%, 5/08/2036 (n) |
695,000 |
680,369 |
||
|
JSCB Agrobank (Republic of Uzbekistan), 9.25%, 10/02/2029 (n) |
399,000 |
430,762 |
||
|
Ma'aden Sukuk Ltd. (Kingdom of Saudi Arabia), 5.25%, 2/13/2030 (n) |
1,287,000 |
1,285,010 |
||
|
Ma'aden Sukuk Ltd. (Kingdom of Saudi Arabia), 5.25%, 1/29/2036 (n) |
1,211,000 |
1,177,868 |
||
|
Magyar Export-Import Bank PLC (Republic of Hungary), 6.125%, 12/04/2027 (n) |
798,000 |
807,689 |
||
|
Magyar Fejlesztesi Bank Zrt. (Republic of Hungary), 4.375%, 6/27/2030 |
EUR |
523,000 |
618,546 |
|
|
MVM Energetika Zartkoruen Mukodo Reszvenytarsasag (Republic of Hungary), 6.5%, 3/13/2031 |
$ |
852,000 |
884,236 |
|
|
National Bank of Uzbekistan, 8.5%, 7/05/2029 |
668,000 |
706,388 |
||
|
Navoi Mining & Metallurgical Co. (Republic of Uzbekistan), 6.75%, 5/14/2030 (n) |
1,234,000 |
1,271,665 |
||
|
Navoi Mining & Metallurgical Co. (Republic of Uzbekistan), 6.95%, 10/17/2031 (n) |
752,000 |
787,998 |
||
|
Office Cherifien des Phosphates S.A. (Kingdom of Morocco), 6.75%, 5/02/2034 (n) |
675,000 |
700,472 |
||
|
Office Cherifien des Phosphates S.A. (Kingdom of Morocco), 6.7%, 3/01/2036 (n) |
723,000 |
743,120 |
||
|
Office Cherifien des Phosphates S.A. (Kingdom of Morocco), 7.5%, 5/02/2054 (n) |
407,000 |
423,788 |
||
|
Office Cherifien des Phosphates S.A. (Kingdom of Morocco), 6.741%, 4/22/2174 (n) |
879,000 |
870,197 |
||
|
Ooredoo International Finance Ltd. (State of Qatar), 4.625%, 10/10/2034 (n) |
662,000 |
642,235 |
||
|
Petroleos de Venezuela S.A., 6%, 11/15/2026 (a)(d) |
1,796,000 |
717,502 |
||
|
Petroleos de Venezuela S.A., 6%, 5/16/2027 (a)(d) |
1,810,568 |
716,985 |
||
|
Petroleos Mexicanos, 6.75%, 9/21/2047 |
1,119,000 |
939,345 |
||
|
Petroleos Mexicanos, 7.69%, 1/23/2050 |
1,582,000 |
1,441,321 |
||
|
Petroleos Mexicanos, 6.95%, 1/28/2060 |
335,000 |
274,700 |
||
|
PETRONAS Capital Ltd. (Federation of Malaysia), 4.95%, 1/03/2031 (n) |
1,199,000 |
1,198,543 |
||
|
PETRONAS Capital Ltd. (Federation of Malaysia), 5.34%, 4/03/2035 (n) |
1,187,000 |
1,189,806 |
||
|
PETRONAS Capital Ltd. (Federation of Malaysia), 5.848%, 4/03/2055 (n) |
319,000 |
314,357 |
||
|
PT Bank Mandiri Tbk (Republic of Indonesia), 5.25%, 4/10/2031 |
720,000 |
713,003 |
||
|
PT Pertamina Hulu Energi (Republic of Indonesia), 5.25%, 5/21/2030 (n) |
858,000 |
851,672 |
||
|
PT Perusahaan Listrik Negara (Republic of Indonesia), 5.45%, 2/03/2036 (n) |
920,000 |
867,019 |
||
|
QNB Finance Ltd. (State of Qatar), 2.75%, 2/12/2027 |
1,129,000 |
1,119,540 |
||
|
SA Global Sukuk Ltd. (Kingdom of Saudi Arabia), 4.125%, 9/17/2030 (n) |
1,023,000 |
983,371 |
||
|
Saudi Arabian Oil Co., 5%, 2/02/2036 (n) |
726,000 |
697,971 |
||
|
Saudi Arabian Oil Co., 5.75%, 7/17/2054 (n) |
638,000 |
576,725 |
||
|
Sonangol Finance Ltd. (Republic of Angola), 10%, 1/29/2031 (n) |
1,019,000 |
1,047,086 |
||
|
State Oil Co. of the Azerbaijan Republic, 5.83%, 7/07/2035 |
574,000 |
570,186 |
||
|
State Oil Co. of the Azerbaijan Republic, 6.57%, 7/07/2056 |
571,000 |
566,906 |
||
5
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Emerging Market Quasi-Sovereign – continued |
||||
|
STC Sukuk Co. II Ltd. (Kingdom of Saudi Arabia), 4.489%, 1/15/2031 (n) |
$ |
507,000 |
$495,136 |
|
|
STC Sukuk Co. II Ltd. (Kingdom of Saudi Arabia), 5.083%, 1/15/2036 (n) |
510,000 |
499,698 |
||
|
T.C. Ziraat Bankasi A.S. (Republic of Turkey), 7.25%, 2/04/2030 (n) |
586,000 |
589,142 |
||
|
Telecommunications Co. (Republic of Serbia), 7%, 10/28/2029 (n) |
886,000 |
882,210 |
||
|
Turkiye Ihracat Kredi Bankasi A.S., 6.125%, 5/02/2029 (n) |
415,000 |
409,911 |
||
|
Turkiye Vakiflar Bankasi T.A.O., 6.875%, 1/07/2030 (n) |
712,000 |
708,743 |
||
|
Uzbekneftegaz JSC (Republic of Uzbekistan), 4.75%, 11/16/2028 (n) |
324,000 |
314,621 |
||
|
$62,039,709 |
||||
|
Emerging Market Sovereign – 8.7% |
||||
|
Arab Republic of Egypt, 0%, 11/10/2026 |
EGP |
60,800,000 |
$1,144,242 |
|
|
Arab Republic of Egypt, 0%, 12/29/2026 |
40,650,000 |
741,729 |
||
|
Arab Republic of Egypt, 5.875%, 2/16/2031 |
$ |
1,366,000 |
1,320,646 |
|
|
Arab Republic of Egypt, 7.903%, 2/21/2048 |
1,528,000 |
1,358,079 |
||
|
Arab Republic of Egypt, 8.875%, 5/29/2050 |
1,830,000 |
1,794,287 |
||
|
Benin Sukuk S.A., 6.2%, 1/29/2033 (n) |
433,000 |
420,548 |
||
|
Commonwealth of Bahamas, 8.25%, 6/24/2036 (n) |
522,000 |
575,421 |
||
|
Democratic Socialist Republic of Sri Lanka, 3.35%, 3/15/2033 (n) |
1,630,525 |
1,564,024 |
||
|
Democratic Socialist Republic of Sri Lanka, 3.6%, 5/15/2036 (n) |
565,350 |
577,864 |
||
|
Democratic Socialist Republic of Sri Lanka, 3.6%, 2/15/2038 (n) |
498,971 |
511,671 |
||
|
Dominican Republic, 7.05%, 2/03/2031 (n) |
1,196,000 |
1,252,212 |
||
|
Dominican Republic, 4.875%, 9/23/2032 (n) |
839,000 |
789,919 |
||
|
Dominican Republic, 4.875%, 9/23/2032 |
824,000 |
775,796 |
||
|
Dominican Republic, 6%, 2/22/2033 (n) |
610,000 |
606,950 |
||
|
Dominican Republic, 6.15%, 5/17/2038 (n) |
755,000 |
733,105 |
||
|
Eagle Funding LuxCo S.à r.l. (United Mexican States), 5.5%, 8/17/2030 (n) |
1,109,000 |
1,107,336 |
||
|
Federal Republic of Nigeria, 0%, 9/22/2026 |
NGN |
1,132,434,000 |
837,350 |
|
|
Federal Republic of Nigeria, 0%, 10/20/2026 |
1,168,112,000 |
851,028 |
||
|
Federal Republic of Nigeria, 0%, 10/27/2026 |
1,062,282,000 |
770,972 |
||
|
Federal Republic of Nigeria, 7.875%, 2/16/2032 |
$ |
704,000 |
739,691 |
|
|
Federal Republic of Nigeria, 7.375%, 9/28/2033 |
1,553,000 |
1,584,851 |
||
|
Federal Republic of Nigeria, 8.631%, 1/13/2036 (n) |
703,000 |
760,930 |
||
|
Federal Republic of Nigeria, 7.696%, 2/23/2038 |
595,000 |
603,201 |
||
|
Federative Republic of Brazil, 6.625%, 3/15/2035 |
684,000 |
690,635 |
||
|
Federative Republic of Brazil, 6.25%, 5/22/2036 |
846,000 |
819,774 |
||
|
Federative Republic of Brazil, 7.25%, 1/12/2056 |
474,000 |
454,898 |
||
|
Gabonese Republic, 9.375%, 8/05/2033 (n) |
436,000 |
391,925 |
||
|
Government of Honduras, 6.4%, 7/29/2036 (n) |
929,000 |
931,787 |
||
|
Government of Ukraine, 4%, 2/01/2032 (n) |
2,512,960 |
2,061,247 |
||
|
Government of Ukraine, 0%, 2/01/2034 (n) |
779,905 |
432,580 |
||
|
Government of Ukraine, 4.5%, 2/01/2034 (n) |
188,729 |
129,345 |
||
|
Government of Ukraine, 0%, 2/01/2035 (n) |
217,038 |
124,950 |
||
|
Government of Ukraine, 4.5%, 2/01/2035 (n) |
440,367 |
296,351 |
||
|
Government of Ukraine, 4.5%, 2/01/2036 (n) |
629,096 |
417,742 |
||
|
Hazine Mustesarligi Varlik Kiralama A.S. (Republic of Turkey), 6.5%, 4/26/2030 (n) |
631,000 |
631,277 |
||
|
Hazine Mustesarligi Varlik Kiralama A.S. (Republic of Turkey), 6.75%, 9/01/2030 (n) |
672,000 |
674,927 |
||
|
Hazine Mustesarligi Varlik Kiralama A.S. (Republic of Turkey), 6.7%, 7/02/2032 (n) |
729,000 |
724,646 |
||
|
Islamic Republic of Pakistan, 6.975%, 4/24/2029 (n) |
842,000 |
844,310 |
||
|
Kingdom of Saudi Arabia, 4.875%, 1/12/2036 (n) |
835,000 |
802,439 |
||
|
Kingdom of Saudi Arabia, 4.625%, 10/04/2047 |
697,000 |
557,670 |
||
|
Kingdom of Saudi Arabia, 3.25%, 11/17/2051 (n) |
736,000 |
452,252 |
||
|
Kingdom of Saudi Arabia, 5.875%, 1/12/2056 (n) |
968,000 |
896,538 |
||
|
Oriental Republic of Uruguay, 8%, 10/29/2035 |
UYU |
25,941,309 |
649,675 |
|
|
Oriental Republic of Uruguay, 5.442%, 2/14/2037 |
$ |
967,000 |
963,132 |
|
6
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Emerging Market Sovereign – continued |
||||
|
Oriental Republic of Uruguay, 4.975%, 4/20/2055 |
$ |
753,000 |
$641,933 |
|
|
Oriental Republic of Uruguay, 5.25%, 9/10/2060 |
940,742 |
824,560 |
||
|
Republic of Angola, 9.244%, 1/15/2031 (n) |
679,000 |
712,797 |
||
|
Republic of Angola, 8.75%, 4/14/2032 (n) |
782,000 |
798,871 |
||
|
Republic of Angola, 9.375%, 3/31/2033 (n) |
1,039,000 |
1,075,367 |
||
|
Republic of Angola, 9.875%, 3/31/2037 (n) |
849,000 |
878,451 |
||
|
Republic of Angola, 9.375%, 5/08/2048 |
349,000 |
332,451 |
||
|
Republic of Angola, 9.125%, 11/26/2049 |
1,922,000 |
1,778,862 |
||
|
Republic of Argentina, 4.125%, 7/09/2035 |
4,857,000 |
3,669,463 |
||
|
Republic of Argentina, 5%, 1/09/2038 |
3,749,000 |
2,972,957 |
||
|
Republic of Argentina, 3.5%, 7/09/2041 |
4,236,000 |
2,981,297 |
||
|
Republic of Barbados, 8%, 6/26/2035 (n) |
690,000 |
730,820 |
||
|
Republic of Benin, 7.96%, 2/13/2038 (n) |
816,000 |
862,219 |
||
|
Republic of Benin, 8.375%, 1/23/2041 (n) |
533,000 |
573,780 |
||
|
Republic of Chile, 5.65%, 1/13/2037 |
1,491,000 |
1,508,892 |
||
|
Republic of Chile, 4.375%, 8/03/2038 |
EUR |
728,481 |
836,193 |
|
|
Republic of Chile, 4.75%, 8/03/2046 |
620,138 |
717,457 |
||
|
Republic of Colombia, 6.125%, 1/21/2031 |
$ |
632,000 |
630,926 |
|
|
Republic of Colombia, 6.5%, 1/21/2033 |
894,000 |
892,212 |
||
|
Republic of Colombia, 6.25%, 7/09/2036 |
COP |
4,064,700,000 |
816,520 |
|
|
Republic of Colombia, 7.75%, 11/07/2036 |
$ |
2,791,000 |
2,968,228 |
|
|
Republic of Colombia, 12.75%, 11/28/2040 |
COP |
2,870,400,000 |
886,434 |
|
|
Republic of Colombia, 9.25%, 5/28/2042 |
3,940,600,000 |
938,228 |
||
|
Republic of Congo, 8.75%, 4/16/2032 (n) |
$ |
366,000 |
377,579 |
|
|
Republic of Congo, 9.5%, 4/16/2037 (n) |
442,000 |
461,681 |
||
|
Republic of Costa Rica, 7%, 4/04/2044 |
272,000 |
286,862 |
||
|
Republic of Costa Rica, 7.158%, 3/12/2045 |
1,215,000 |
1,293,939 |
||
|
Republic of Costa Rica, 7.3%, 11/13/2054 (n) |
1,185,000 |
1,279,575 |
||
|
Republic of Cote d'Ivoire, 7.625%, 1/30/2033 (n) |
1,331,000 |
1,413,982 |
||
|
Republic of Cote d'Ivoire, 8.075%, 4/01/2036 (n) |
1,090,000 |
1,173,225 |
||
|
Republic of Cote d'Ivoire, 8.25%, 1/30/2037 (n) |
1,910,000 |
2,069,361 |
||
|
Republic of Cote d'Ivoire, 6.75%, 2/25/2041 (n) |
623,000 |
589,897 |
||
|
Republic of Ecuador, 8.75%, 1/29/2034 (n) |
1,086,000 |
1,083,285 |
||
|
Republic of Ecuador, 6.9%, 7/31/2035 |
3,195,789 |
2,922,549 |
||
|
Republic of Ecuador, 9.25%, 1/29/2039 (n) |
1,012,000 |
1,020,602 |
||
|
Republic of Ecuador, 5.5%, 7/31/2040 |
2,239,000 |
1,830,382 |
||
|
Republic of El Salvador, 7.65%, 6/15/2035 |
273,000 |
282,823 |
||
|
Republic of El Salvador, 9.65%, 11/21/2054 (n) |
619,000 |
703,351 |
||
|
Republic of Guatemala, 3.7%, 10/07/2033 |
936,000 |
821,948 |
||
|
Republic of Guatemala, 6.6%, 6/13/2036 (n) |
703,000 |
733,693 |
||
|
Republic of Guatemala, 6.25%, 8/15/2036 (n) |
1,013,000 |
1,035,955 |
||
|
Republic of Guatemala, 6.25%, 8/15/2036 |
312,000 |
319,070 |
||
|
Republic of Guatemala, 6.55%, 2/06/2037 (n) |
794,000 |
826,046 |
||
|
Republic of Guatemala, 6.875%, 8/15/2055 (n) |
491,000 |
514,106 |
||
|
Republic of Honduras, 8.625%, 11/27/2034 |
788,000 |
905,002 |
||
|
Republic of Hungary, 5.375%, 9/26/2030 (n) |
698,000 |
703,418 |
||
|
Republic of Hungary, 5.5%, 6/16/2034 (n) |
1,509,000 |
1,511,788 |
||
|
Republic of Hungary, 6%, 9/26/2035 (n) |
454,000 |
463,624 |
||
|
Republic of Hungary, 6%, 9/26/2035 |
2,123,000 |
2,168,005 |
||
|
Republic of Hungary, 5.5%, 3/26/2036 (n) |
903,000 |
889,282 |
||
|
Republic of Hungary, 5.5%, 3/26/2036 |
1,173,000 |
1,155,181 |
||
|
Republic of Hungary, 4.25%, 5/21/2037 |
EUR |
888,000 |
996,880 |
|
|
Republic of Hungary, 6.25%, 9/23/2037 |
HUF |
291,060,000 |
970,518 |
|
|
Republic of Hungary, 3%, 10/27/2038 |
281,500,000 |
688,361 |
||
7
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Emerging Market Sovereign – continued |
||||
|
Republic of Hungary, 6.75%, 9/23/2055 (n) |
$ |
1,396,000 |
$1,444,798 |
|
|
Republic of Indonesia, 4.1%, 3/04/2034 |
EUR |
515,000 |
578,309 |
|
|
Republic of Indonesia, 5.69%, 5/29/2036 |
$ |
519,000 |
518,582 |
|
|
Republic of Indonesia, 4.46%, 3/04/2038 |
EUR |
430,000 |
473,130 |
|
|
Republic of Montenegro, 4.875%, 4/01/2032 (n) |
198,000 |
230,443 |
||
|
Republic of Panama, 5.227%, 2/23/2034 |
$ |
895,000 |
865,197 |
|
|
Republic of Panama, 6.4%, 2/14/2035 |
906,000 |
938,616 |
||
|
Republic of Panama, 6.7%, 1/26/2036 |
336,000 |
352,649 |
||
|
Republic of Panama, 5.662%, 2/23/2038 |
746,000 |
725,858 |
||
|
Republic of Panama, 8%, 3/01/2038 |
952,000 |
1,089,136 |
||
|
Republic of Panama, 4.5%, 1/19/2063 |
1,037,000 |
757,529 |
||
|
Republic of Paraguay, 8.5%, 4/04/2038 (n) |
PYG |
6,685,000,000 |
1,088,123 |
|
|
Republic of Paraguay, 5.4%, 3/30/2050 (n) |
$ |
1,713,000 |
1,495,483 |
|
|
Republic of Peru, 6.9%, 8/12/2037 |
PEN |
2,846,000 |
859,270 |
|
|
Republic of Peru, 7.6%, 8/12/2039 |
1,827,000 |
576,483 |
||
|
Republic of Peru, 5.875%, 8/08/2054 |
$ |
173,000 |
164,264 |
|
|
Republic of Peru, 6.2%, 6/30/2055 |
264,000 |
260,726 |
||
|
Republic of Philippines, 8%, 7/19/2031 |
PHP |
42,335,000 |
706,912 |
|
|
Republic of Philippines, 5%, 1/27/2036 |
$ |
978,000 |
940,682 |
|
|
Republic of Poland, 5.375%, 2/12/2035 |
1,349,000 |
1,340,263 |
||
|
Republic of Poland, 5.375%, 4/14/2036 |
1,156,000 |
1,139,544 |
||
|
Republic of Poland, 6.125%, 4/14/2056 |
1,926,000 |
1,854,777 |
||
|
Republic of Romania, 3.625%, 3/27/2032 |
1,082,000 |
963,292 |
||
|
Republic of Romania, 7.5%, 7/27/2033 |
RON |
2,380,000 |
541,085 |
|
|
Republic of Romania, 6.375%, 1/30/2034 (n) |
$ |
554,000 |
551,897 |
|
|
Republic of Romania, 6%, 5/25/2034 (n) |
928,000 |
905,272 |
||
|
Republic of Romania, 5.75%, 3/24/2035 |
1,220,000 |
1,160,955 |
||
|
Republic of Romania, 6.625%, 5/16/2036 (n) |
1,680,000 |
1,681,839 |
||
|
Republic of Romania, 5.75%, 7/04/2036 (n) |
1,074,000 |
1,009,429 |
||
|
Republic of Romania, 7.5%, 2/10/2037 (n) |
610,000 |
648,787 |
||
|
Republic of Romania, 6.5%, 10/07/2045 (n) |
EUR |
446,000 |
505,891 |
|
|
Republic of Serbia, 6%, 6/12/2034 (n) |
$ |
854,000 |
853,274 |
|
|
Republic of Serbia, 5.5%, 5/06/2036 (n) |
1,069,000 |
1,022,241 |
||
|
Republic of South Africa, 7.1%, 11/19/2036 (n) |
1,486,000 |
1,583,270 |
||
|
Republic of South Africa, 6.125%, 12/11/2037 (n) |
1,159,000 |
1,129,865 |
||
|
Republic of South Africa, 6.5%, 2/28/2041 |
ZAR |
23,183,000 |
1,127,501 |
|
|
Republic of South Africa, 8.75%, 1/31/2044 |
4,876,000 |
287,199 |
||
|
Republic of South Africa, 7.3%, 4/20/2052 |
$ |
1,812,000 |
1,779,072 |
|
|
Republic of South Africa, 7.95%, 11/19/2054 (n) |
1,529,000 |
1,613,737 |
||
|
Republic of South Africa, 7.25%, 12/11/2055 (n) |
879,000 |
854,950 |
||
|
Republic of Suriname, 7.7%, 11/06/2030 (n) |
336,000 |
345,223 |
||
|
Republic of Suriname, 8.5%, 11/06/2035 (n) |
443,000 |
477,448 |
||
|
Republic of Turkey, 6.375%, 5/22/2031 |
738,000 |
730,560 |
||
|
Republic of Turkey, 5.875%, 6/26/2031 |
1,529,000 |
1,487,146 |
||
|
Republic of Turkey, 6.5%, 1/03/2035 |
592,000 |
571,098 |
||
|
Republic of Turkey, 6.95%, 9/16/2035 |
1,186,000 |
1,168,231 |
||
|
Republic of Turkey, 4.875%, 4/16/2043 |
580,000 |
427,629 |
||
|
Republic of Turkey, 5.75%, 5/11/2047 |
1,575,000 |
1,244,079 |
||
|
Republic of Uzbekistan, 5.375%, 2/20/2029 |
1,081,000 |
1,078,941 |
||
|
Republic of Uzbekistan, 6.947%, 5/25/2032 (n) |
771,000 |
814,835 |
||
|
Republic of Venezuela, 7.65%, 4/21/2027 (a)(d) |
882,000 |
425,565 |
||
|
Republic of Venezuela, 9.25%, 9/15/2027 (a)(d) |
3,699,000 |
1,914,232 |
||
|
Republic of Venezuela, 11.95%, 8/05/2031 (a)(d) |
1,291,000 |
739,098 |
||
|
Republic of Zambia, 5.75%, 6/30/2033 |
290,171 |
284,966 |
||
8
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Emerging Market Sovereign – continued |
||||
|
State of Kuwait, 5.509%, 7/29/2036 (n) |
$ |
712,000 |
$712,165 |
|
|
Sultanate of Oman, 6.5%, 3/08/2047 |
809,000 |
820,172 |
||
|
Sultanate of Oman, 6.75%, 1/17/2048 |
1,657,000 |
1,724,141 |
||
|
United Mexican States, 5.85%, 7/02/2032 |
1,166,000 |
1,169,381 |
||
|
United Mexican States, 5.625%, 2/09/2034 |
1,401,000 |
1,359,040 |
||
|
United Mexican States, 5.625%, 9/22/2035 |
914,000 |
875,155 |
||
|
United Mexican States, 6.875%, 5/13/2037 |
703,000 |
722,051 |
||
|
United Mexican States, 6.25%, 8/27/2037 |
834,000 |
818,154 |
||
|
United Mexican States, 6.625%, 1/29/2038 |
698,000 |
699,047 |
||
|
United Mexican States, 6.125%, 2/09/2038 |
1,030,000 |
992,405 |
||
|
United Mexican States, 6.338%, 5/04/2053 |
622,000 |
559,178 |
||
|
$154,671,110 |
||||
|
Energy - Independent – 0.2% |
||||
|
APA Corp., 6.1%, 2/15/2035 |
$ |
212,000 |
$216,477 |
|
|
APA Corp., 6.75%, 2/15/2055 |
385,000 |
395,425 |
||
|
Azule Energy Finance PLC, 8.25%, 1/22/2031 (n) |
488,000 |
495,203 |
||
|
Azule Energy Finance PLC, 8.625%, 1/22/2033 (n) |
280,000 |
287,058 |
||
|
Occidental Petroleum Corp., 4.4%, 4/15/2046 |
625,000 |
503,248 |
||
|
Pioneer Natural Resources Co., 1.9%, 8/15/2030 |
717,000 |
640,243 |
||
|
Pioneer Natural Resources Co., 2.15%, 1/15/2031 |
501,000 |
446,159 |
||
|
Santos Finance Ltd., 6.875%, 9/19/2033 (n) |
381,000 |
405,922 |
||
|
Santos Finance Ltd., 5.75%, 11/13/2035 (n) |
321,000 |
316,473 |
||
|
SierraCol Energy Andina LLC/SierraCol Energy, 9%, 11/14/2030 (n) |
628,000 |
640,303 |
||
|
$4,346,511 |
||||
|
Energy - Integrated – 0.1% |
||||
|
BP Capital Markets America, Inc., 3.001%, 3/17/2052 |
$ |
1,126,000 |
$690,539 |
|
|
Eni S.p.A., 6%, 5/18/2056 (n) |
671,000 |
640,593 |
||
|
$1,331,132 |
||||
|
Entertainment & Leisure – 0.1% |
||||
|
Carnival Corp., 5.875%, 6/15/2031 (n) |
$ |
508,000 |
$509,737 |
|
|
Carnival Corp., 5.75%, 8/01/2032 (n) |
227,000 |
224,645 |
||
|
Carnival Corp., 6.125%, 2/15/2033 (n) |
377,000 |
377,914 |
||
|
Royal Caribbean Cruises Ltd., 5.625%, 9/30/2031 (n) |
590,000 |
590,887 |
||
|
$1,703,183 |
||||
|
Food & Beverages – 0.6% |
||||
|
Anheuser-Busch InBev Worldwide, Inc., 5.55%, 1/23/2049 |
$ |
1,859,000 |
$1,753,681 |
|
|
Bacardi Ltd., 5.15%, 5/15/2038 (n) |
1,632,000 |
1,491,044 |
||
|
Central American Bottling Corp., 5.25%, 4/27/2029 (n) |
1,214,000 |
1,192,440 |
||
|
Flowers Foods, Inc., 5.75%, 3/15/2035 |
418,000 |
393,850 |
||
|
JBS N.V./JBS USA Foods Group Holdings, Inc./JBS USA Food Co., 3%, 2/02/2029 |
360,000 |
344,344 |
||
|
JBS N.V./JBS USA Foods Group Holdings, Inc./JBS USA Food Co., 3.75%, 12/01/2031 |
242,000 |
223,903 |
||
|
JBS N.V./JBS USA Foods Group Holdings, Inc./JBS USA Food Co., 3.625%, 1/15/2032 |
371,000 |
340,817 |
||
|
JBS N.V./JBS USA Foods Group Holdings, Inc./JBS USA Food Co., 6.5%, 12/01/2052 |
399,000 |
386,739 |
||
|
Kraft Heinz Foods Co., 4.875%, 10/01/2049 |
406,000 |
330,681 |
||
|
Kraft Heinz Foods Co., 5.5%, 6/01/2050 |
511,000 |
451,420 |
||
|
Mars, Inc., 4.75%, 4/20/2033 (n) |
1,024,000 |
994,916 |
||
|
Mars, Inc., 3.95%, 4/01/2049 (n) |
758,000 |
570,538 |
||
|
Mars, Inc., 5.7%, 5/01/2055 (n) |
932,000 |
880,688 |
||
9
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Food & Beverages – continued |
||||
|
SYSCO Corp., 4.45%, 3/15/2048 |
$ |
640,000 |
$499,580 |
|
|
$9,854,641 |
||||
|
Global Systemically Important Banks – 1.8% |
||||
|
Bank of America Corp., 3.419% to 12/20/2027, FLR ((SOFR - 3mo. + 0.26161%) + 1.04%) to 12/20/2028 |
$ |
1,704,000 |
$1,676,821 |
|
|
Bank of America Corp., 5.819% to 9/15/2028, FLR (SOFR - 1 day + 1.57%) to 9/15/2029 |
989,000 |
1,007,458 |
||
|
Bank of America Corp., 2.687% to 4/22/2031, FLR (SOFR - 1 day + 1.32%) to 4/22/2032 |
2,307,000 |
2,067,194 |
||
|
Bank of New York Mellon Corp., 5.182% to 8/12/2033, FLR (SOFR - 1 day + 1.035%) to 8/12/2034 |
813,000 |
806,664 |
||
|
BNP Paribas S.A., 6.875% to 12/15/2033, FLR (CMT - 5yr. + 2.853%) to 6/15/2174 (n) |
732,000 |
717,032 |
||
|
Goldman Sachs Group, Inc., 4.692% to 10/23/2029, FLR (SOFR - 1 day + 1.135%) to 10/23/2030 |
704,000 |
695,643 |
||
|
Goldman Sachs Group, Inc., 4.972% to 6/03/2031, FLR (SOFR - 1 day + 1.03%) to 6/03/2032 |
580,000 |
570,968 |
||
|
Goldman Sachs Group, Inc., 5.24% to 7/21/2031, FLR (SOFR - 1 day + 1.17%) to 7/21/2032 |
591,000 |
587,608 |
||
|
Goldman Sachs Group, Inc., 5.016% to 10/23/2034, FLR (SOFR - 1 day + 1.42%) to 10/23/2035 |
471,000 |
452,171 |
||
|
Goldman Sachs Group, Inc., 5.065% to 1/21/2036, FLR (SOFR - 1 day + 1.19%) to 1/21/2037 |
840,000 |
797,589 |
||
|
HSBC Holdings PLC, 5.13% to 3/03/2030, FLR (SOFR - 1 day + 1.29%) to 3/03/2031 |
342,000 |
341,152 |
||
|
HSBC Holdings PLC, 2.357% to 8/18/2030, FLR (SOFR - 1 day + 1.947%) to 8/18/2031 |
554,000 |
497,605 |
||
|
HSBC Holdings PLC, 5.208% to 5/12/2033, FLR (SOFR - 1 day + 1.32%) to 5/12/2034 |
528,000 |
516,739 |
||
|
HSBC Holdings PLC, 5.279% to 3/10/2036, FLR (SOFR - 1 day + 1.55%) to 3/10/2037 |
650,000 |
624,846 |
||
|
HSBC Holdings PLC, 6.75% to 5/18/2033, FLR (CMT - 5yr. + 2.513%) to 11/18/2174 |
350,000 |
347,300 |
||
|
JPMorgan Chase & Co., 5.581% to 4/22/2029, FLR (SOFR - 1 day + 1.16%) to 4/22/2030 |
788,000 |
800,266 |
||
|
JPMorgan Chase & Co., 2.545% to 11/08/2031, FLR (SOFR - 1 day + 1.18%) to 11/08/2032 |
3,189,000 |
2,803,014 |
||
|
JPMorgan Chase & Co., 4.946% to 10/22/2034, FLR (SOFR - 1 day + 1.34%) to 10/22/2035 |
499,000 |
482,878 |
||
|
JPMorgan Chase & Co., 4.898% to 1/22/2036, FLR (SOFR - 1 day + 1.07%) to 1/22/2037 |
887,000 |
843,412 |
||
|
JPMorgan Chase & Co., 5.803% to 7/23/2036, FLR (CMT - 5yr. + 1.25%) to 7/23/2041 |
906,000 |
896,078 |
||
|
Mitsubishi UFJ Financial Group, Inc., 1.64% to 10/13/2026, FLR (CMT - 1yr. + 0.67%) to 10/13/2027 |
2,438,000 |
2,430,056 |
||
|
Mitsubishi UFJ Financial Group, Inc., 2.494% to 10/13/2031, FLR (CMT - 1yr. + 0.97%) to 10/13/2032 |
2,019,000 |
1,765,371 |
||
|
Morgan Stanley, 5.449% to 7/20/2028, FLR (SOFR - 1 day + 1.63%) to 7/20/2029 |
705,000 |
712,271 |
||
|
Morgan Stanley, 5.424% to 7/21/2033, FLR (SOFR - 1 day + 1.88%) to 7/21/2034 |
450,000 |
447,873 |
||
|
Morgan Stanley, 5.073% to 1/30/2036, FLR (SOFR - 1 day + 1.184%) to 1/30/2037 |
1,580,000 |
1,506,264 |
||
|
Royal Bank of Canada, 4.95%, 8/05/2032 |
1,188,000 |
1,174,858 |
||
|
Sumitomo Mitsui Financial Group, Inc., 1.71%, 1/12/2031 |
1,589,000 |
1,379,379 |
||
|
UBS Group AG, 5.58%, 5/09/2036 (n) |
2,681,000 |
2,666,251 |
||
|
UBS Group AG, 3.179% to 2/11/2042, FLR (CMT - 1yr. + 1.1%) to 2/11/2043 (n) |
633,000 |
456,506 |
||
|
UBS Group AG, 7% to 8/05/2035, FLR (USD SOFR ICE Swap Rate - 5yr. + 3.296%) to 8/05/2172 (n) |
413,000 |
412,084 |
||
|
Wells Fargo & Co., 5.574% to 7/25/2028, FLR (SOFR - 1 day + 1.74%) to 7/25/2029 |
569,000 |
576,759 |
||
|
$31,060,110 |
||||
|
Hardware, Peripherals, & Assembly – 0.0% |
||||
|
Apple, Inc., 2.65%, 5/11/2050 |
$ |
1,169,000 |
$681,563 |
|
|
Industrial – 0.2% |
||||
|
Booz Allen Hamilton, Inc., 5.9%, 1/30/2034 |
$ |
508,000 |
$499,958 |
|
|
Booz Allen Hamilton, Inc., 5.95%, 4/15/2035 |
530,000 |
525,465 |
||
|
Jacobs Solutions, Inc., 5.375%, 3/03/2036 |
770,000 |
737,355 |
||
|
WSP Global, Inc., 5.039%, 9/18/2031 (n) |
470,000 |
460,488 |
||
|
WSP Global, Inc., 5.714%, 9/18/2036 (n) |
836,000 |
806,038 |
||
|
$3,029,304 |
||||
|
Insurance – 0.3% |
||||
|
Athene Holding Ltd., 6.15%, 8/15/2036 |
$ |
707,000 |
$699,477 |
|
|
Corebridge Financial, Inc., 3.9%, 4/05/2032 |
369,000 |
341,473 |
||
|
Corebridge Financial, Inc., 4.35%, 4/05/2042 |
862,000 |
709,736 |
||
|
Corebridge Global Funding, 4.9%, 8/21/2032 (n) |
518,000 |
503,450 |
||
10
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Insurance – continued |
||||
|
Equitable America Global Funding, 5.125%, 6/15/2031 (n) |
$ |
921,000 |
$911,600 |
|
|
Northwestern Mutual Life Insurance Co., 6.17%, 5/29/2055 (n) |
752,000 |
741,377 |
||
|
Pacific Life Insurance Co., 5.95%, 9/15/2055 (n) |
696,000 |
658,239 |
||
|
Sammons Financial Group, Inc., 4.75%, 4/08/2032 (n) |
859,000 |
808,373 |
||
|
Sammons Financial Group, Inc., 5.95%, 6/15/2036 (n) |
116,000 |
110,707 |
||
|
$5,484,432 |
||||
|
Insurance - Health – 0.2% |
||||
|
Elevance Health, Inc., 5.65%, 6/15/2054 |
$ |
559,000 |
$512,566 |
|
|
Horseshoe Funding Trust II, 6.887%, 11/15/2055 (n) |
601,000 |
604,156 |
||
|
Humana, Inc., 5.375%, 4/15/2031 |
341,000 |
341,648 |
||
|
Humana, Inc., 5.55%, 5/01/2035 |
346,000 |
339,006 |
||
|
Humana, Inc., 4.95%, 10/01/2044 |
560,000 |
470,811 |
||
|
UnitedHealth Group, Inc., 2.3%, 5/15/2031 |
438,000 |
388,506 |
||
|
UnitedHealth Group, Inc., 5.5%, 7/15/2044 |
529,000 |
499,341 |
||
|
UnitedHealth Group, Inc., 5.875%, 2/15/2053 |
569,000 |
546,811 |
||
|
$3,702,845 |
||||
|
Insurance - Property & Casualty – 0.3% |
||||
|
Arthur J. Gallagher & Co., 6.5%, 2/15/2034 |
$ |
381,000 |
$402,612 |
|
|
Arthur J. Gallagher & Co., 6.75%, 2/15/2054 |
731,000 |
769,926 |
||
|
Brown & Brown, Inc., 5.25%, 6/23/2032 |
261,000 |
256,896 |
||
|
Brown & Brown, Inc., 6.25%, 6/23/2055 |
154,000 |
147,967 |
||
|
Fairfax Financial Holdings Ltd., 3.375%, 3/03/2031 |
197,000 |
182,054 |
||
|
Fairfax Financial Holdings Ltd., 5.625%, 8/16/2032 |
312,000 |
314,431 |
||
|
Fairfax Financial Holdings Ltd., 6.5%, 5/20/2055 |
888,000 |
885,925 |
||
|
Marsh & McLennan Cos., Inc., 4.85%, 11/15/2031 |
347,000 |
342,612 |
||
|
Marsh & McLennan Cos., Inc., 2.9%, 12/15/2051 |
431,000 |
256,224 |
||
|
Marsh & McLennan Cos., Inc., 5.4%, 3/15/2055 |
430,000 |
386,484 |
||
|
Progressive Corp., 5.15%, 3/26/2036 |
577,000 |
563,279 |
||
|
$4,508,410 |
||||
|
International Market Quasi-Sovereign – 0.1% |
||||
|
Israel Electric Corp. Ltd., 5.633%, 1/28/2038 (n) |
$ |
721,000 |
$691,119 |
|
|
NBN Co. Ltd. (Commonwealth of Australia), 5.75%, 10/06/2028 (n) |
811,000 |
826,757 |
||
|
Ontario Teachers' Cadillac Fairview Properties, 2.5%, 10/15/2031 (n) |
921,000 |
806,106 |
||
|
$2,323,982 |
||||
|
International Market Sovereign – 0.3% |
||||
|
Government of Bermuda, 5%, 7/15/2032 (n) |
$ |
1,832,000 |
$1,809,118 |
|
|
State of Israel, 5%, 1/13/2036 |
575,000 |
553,259 |
||
|
State of Israel, 5.875%, 1/13/2056 |
3,608,000 |
3,367,414 |
||
|
$5,729,791 |
||||
|
Internet – 0.0% |
||||
|
Alphabet, Inc., 5.45%, 8/15/2036 |
$ |
571,000 |
$566,500 |
|
|
Local Authorities – 0.1% |
||||
|
Province of Córdoba, 8.6%, 2/03/2035 (n) |
$ |
740,000 |
$728,900 |
|
|
Provincia de Neuquen Argentina, 7.35%, 8/25/2034 (n) |
620,000 |
609,975 |
||
|
Republic of Argentina, 8.1%, 12/11/2034 (n) |
666,000 |
664,335 |
||
|
$2,003,210 |
||||
11
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Machinery & Tools – 0.1% |
||||
|
Ashtead Capital, Inc., 5.55%, 5/30/2033 (n) |
$ |
839,000 |
$834,959 |
|
|
CNH Industrial Capital LLC, 5.5%, 1/12/2029 |
446,000 |
450,828 |
||
|
Sunbelt Rentals Holdings, Inc., 5.65%, 8/12/2036 (n) |
347,000 |
339,679 |
||
|
$1,625,466 |
||||
|
Media – 0.2% |
||||
|
Prosus N.V., 4.193%, 1/19/2032 (n) |
$ |
625,000 |
$588,447 |
|
|
Prosus N.V., 5.873%, 7/13/2036 (n) |
853,000 |
845,933 |
||
|
Prosus N.V., 4.027%, 8/03/2050 (n) |
852,000 |
582,306 |
||
|
Walt Disney Co., 3.5%, 5/13/2040 |
738,000 |
587,778 |
||
|
Walt Disney Co., 3.8%, 5/13/2060 |
561,000 |
388,192 |
||
|
WMG Acquisition Corp., 3.75%, 12/01/2029 (n) |
600,000 |
570,924 |
||
|
WMG Acquisition Corp., 3.875%, 7/15/2030 (n) |
654,000 |
615,135 |
||
|
$4,178,715 |
||||
|
Medical & Health Technology & Services – 0.4% |
||||
|
Alcon Finance Corp., 2.75%, 9/23/2026 (n) |
$ |
2,224,000 |
$2,221,628 |
|
|
Baxter International, Inc., 4.9%, 12/15/2030 |
255,000 |
250,432 |
||
|
Baxter International, Inc., 5.65%, 12/15/2035 |
328,000 |
320,115 |
||
|
CommonSpirit Health, 5.548%, 12/01/2054 |
314,000 |
285,982 |
||
|
CommonSpirit Health, 5.662%, 9/01/2055 |
475,000 |
438,495 |
||
|
HCA, Inc., 4.9%, 11/15/2035 |
239,000 |
226,028 |
||
|
HCA, Inc., 5.7%, 11/15/2055 |
541,000 |
488,748 |
||
|
ICON Investments Six DAC, 5.421%, 8/13/2031 (n) |
510,000 |
507,383 |
||
|
ICON Investments Six DAC, 5.995%, 8/13/2036 (n) |
873,000 |
870,424 |
||
|
Marin General Hospital, 7.242%, 8/01/2045 |
839,000 |
869,591 |
||
|
Thermo Fisher Scientific, Inc., 4.473%, 10/07/2032 |
712,000 |
689,368 |
||
|
Thermo Fisher Scientific, Inc., 2.8%, 10/15/2041 |
632,000 |
444,389 |
||
|
$7,612,583 |
||||
|
Medical Equipment – 0.2% |
||||
|
Abbott Laboratories, 4.65%, 3/15/2036 |
$ |
996,000 |
$943,329 |
|
|
Augusta SpinCo Corp., 4.945%, 3/23/2033 |
445,000 |
435,294 |
||
|
Augusta SpinCo Corp., 5.245%, 3/23/2036 |
489,000 |
476,720 |
||
|
Danaher Corp., 2.6%, 10/01/2050 |
1,155,000 |
657,962 |
||
|
Stryker Corp., 4.625%, 9/11/2034 |
942,000 |
900,579 |
||
|
$3,413,884 |
||||
|
Metals & Mining – 0.2% |
||||
|
First Quantum Minerals Ltd., 8%, 3/01/2033 (n) |
$ |
329,000 |
$342,968 |
|
|
Northern Star Resources Ltd. Co., 6.125%, 4/11/2033 (n) |
1,119,000 |
1,138,795 |
||
|
Samarco Mineracao S.A., 9% (4% Cash + 5% PIK) to 12/30/2026, (5.5% Cash + 3.5% PIK) to 12/30/2027, 9.25% Cash to 12/30/2029, 9.5% Cash to 6/30/2031 (n)(p) |
1,224,073 |
1,225,247 |
||
|
$2,707,010 |
||||
|
Midstream – 0.6% |
||||
|
Cheniere Energy Partners LP, 5.55%, 10/30/2035 |
$ |
684,000 |
$681,191 |
|
|
Cheniere Energy Partners LP, 5.35%, 11/30/2036 (n) |
352,000 |
342,327 |
||
|
Columbia Pipelines Operating Co. LLC, 6.497%, 8/15/2043 (n) |
781,000 |
804,300 |
||
|
Eastern Energy Gas Holdings LLC, 5.65%, 10/15/2054 |
628,000 |
572,445 |
||
|
Energy Transfer LP, 4%, 10/01/2027 |
465,000 |
461,838 |
||
|
Energy Transfer LP, 5.95%, 5/15/2054 |
900,000 |
834,566 |
||
|
Enterprise Products Operating LLC, 4.85%, 1/31/2034 |
786,000 |
765,521 |
||
12
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Midstream – continued |
||||
|
Esentia Energy Development S.A.B. de C.V., 6.125%, 7/30/2033 (n) |
$ |
830,000 |
$817,882 |
|
|
Esentia Energy Development S.A.B. de C.V., 6.5%, 7/30/2038 (n) |
696,000 |
674,424 |
||
|
Galaxy Pipeline Assets Bidco Ltd., 1.75%, 9/30/2027 (n) |
376,116 |
369,562 |
||
|
Green Palm Bidco S.à r.l., 5.957%, 6/30/2041 (n) |
1,027,000 |
1,006,109 |
||
|
Plains All American Pipeline LP, 5.95%, 6/15/2035 |
998,000 |
1,010,211 |
||
|
Plains All American Pipeline LP, 5.6%, 1/15/2036 |
363,000 |
357,684 |
||
|
Targa Resources Corp., 4.95%, 4/15/2052 |
1,352,000 |
1,112,534 |
||
|
Western Midstream Operating LP, 5.7%, 7/01/2036 |
699,000 |
688,320 |
||
|
$10,498,914 |
||||
|
Mortgage-Backed – 5.8% |
||||
|
Fannie Mae, 3%, 11/01/2028 - 9/01/2046 |
$ |
1,529,135 |
$1,415,734 |
|
|
Fannie Mae, 3.5%, 1/25/2030 - 12/01/2047 |
2,295,189 |
2,115,307 |
||
|
Fannie Mae, 2.5%, 11/01/2031 - 10/01/2046 |
384,431 |
330,397 |
||
|
Fannie Mae, 3.5%, 12/25/2031 - 2/25/2036 (i) |
196,566 |
13,612 |
||
|
Fannie Mae, 6.5%, 1/01/2033 - 10/01/2037 |
26,462 |
27,445 |
||
|
Fannie Mae, 3%, 2/25/2033 (i) |
285,611 |
18,970 |
||
|
Fannie Mae, 5.5%, 5/01/2033 - 5/01/2044 |
1,421,299 |
1,433,992 |
||
|
Fannie Mae, 5%, 11/01/2033 - 3/25/2042 |
1,917,605 |
1,899,613 |
||
|
Fannie Mae, 4.5%, 3/01/2034 - 11/25/2042 |
958,878 |
930,322 |
||
|
Fannie Mae, 4.208%, 4/25/2034 |
3,092 |
3,091 |
||
|
Fannie Mae, 6%, 8/01/2034 - 6/01/2038 |
68,835 |
70,774 |
||
|
Fannie Mae, 4%, 9/01/2040 - 7/01/2043 |
2,630,701 |
2,494,783 |
||
|
Fannie Mae, 1%, 3/25/2041 |
185,335 |
162,173 |
||
|
Fannie Mae, 4.108%, 3/25/2041 |
23,769 |
23,703 |
||
|
Fannie Mae, 2.25%, 4/25/2041 |
285,128 |
274,261 |
||
|
Fannie Mae, 4.258%, 7/25/2041 |
29,481 |
29,300 |
||
|
Fannie Mae, 2%, 8/25/2044 |
142,185 |
132,514 |
||
|
Fannie Mae, 4.058%, 12/25/2045 |
72,316 |
71,501 |
||
|
Fannie Mae, 2.242%, 8/25/2046 (i) |
670,015 |
49,432 |
||
|
Fannie Mae, 2.442%, 12/25/2047 (i) |
166,296 |
15,911 |
||
|
Fannie Mae, 4.5%, 3/15/2048 (i) |
123,360 |
28,370 |
||
|
Fannie Mae, 2.392%, 10/25/2048 (i) |
414,421 |
37,123 |
||
|
Fannie Mae, 2.292%, 6/25/2050 (i) |
399,577 |
37,845 |
||
|
Fannie Mae, 2%, 9/25/2050 - 11/25/2051 (i) |
481,492 |
57,066 |
||
|
Fannie Mae, 4%, 9/25/2050 (i) |
386,275 |
73,474 |
||
|
Fannie Mae, 2.5%, 2/25/2051 (i) |
174,098 |
23,396 |
||
|
Fannie Mae, 5.093%, 11/25/2053 |
464,384 |
473,399 |
||
|
Fannie Mae, 5.643%, 11/25/2053 |
319,487 |
328,165 |
||
|
Fannie Mae, 4.543%, 12/25/2053 |
125,040 |
125,527 |
||
|
Fannie Mae, 6.643%, 7/25/2054 |
327,540 |
339,610 |
||
|
Fannie Mae, 4.793%, 10/25/2054 |
368,445 |
368,974 |
||
|
Fannie Mae, 4.993%, 11/25/2054 |
808,461 |
812,987 |
||
|
Fannie Mae, 4.643%, 12/25/2054 |
685,144 |
689,228 |
||
|
Fannie Mae, 5.043%, 12/25/2054 |
790,175 |
795,470 |
||
|
Fannie Mae, 5.143%, 12/25/2054 |
845,242 |
852,600 |
||
|
Fannie Mae, 4.943%, 1/25/2055 |
692,232 |
695,408 |
||
|
Fannie Mae, 6.083%, 3/25/2055 |
486,868 |
487,199 |
||
|
Fannie Mae, UMBS, 2.5%, 8/01/2036 - 9/01/2052 |
7,468,283 |
6,241,454 |
||
|
Fannie Mae, UMBS, 5.5%, 8/01/2038 - 11/01/2052 |
490,632 |
496,489 |
||
|
Fannie Mae, UMBS, 1.5%, 2/01/2042 - 9/01/2051 |
1,747,196 |
1,306,426 |
||
|
Fannie Mae, UMBS, 2%, 2/01/2042 - 2/01/2052 |
3,172,589 |
2,550,688 |
||
|
Fannie Mae, UMBS, 3.5%, 5/01/2049 |
318,563 |
289,695 |
||
|
Fannie Mae, UMBS, 3%, 8/01/2050 - 8/01/2052 |
2,437,613 |
2,094,812 |
||
13
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Mortgage-Backed – continued |
||||
|
Fannie Mae, UMBS, 4%, 8/01/2051 |
$ |
327,943 |
$303,805 |
|
|
Fannie Mae, UMBS, 5%, 8/01/2052 - 3/01/2053 |
1,914,095 |
1,861,190 |
||
|
Fannie Mae, UMBS, 6.5%, 6/01/2053 - 1/01/2054 |
450,389 |
464,304 |
||
|
Fannie Mae, UMBS, 6%, 9/01/2053 - 10/01/2054 |
1,974,469 |
2,005,342 |
||
|
Freddie Mac, 1.486%, 3/25/2027 (i) |
2,188,000 |
11,510 |
||
|
Freddie Mac, 0.692%, 7/25/2027 (i) |
41,804,842 |
132,187 |
||
|
Freddie Mac, 0.53%, 8/25/2027 (i) |
31,083,344 |
102,734 |
||
|
Freddie Mac, 0.476%, 12/25/2027 (i) |
183,645 |
741 |
||
|
Freddie Mac, 0.431%, 1/25/2028 (i) |
56,607,800 |
192,597 |
||
|
Freddie Mac, 0.432%, 1/25/2028 - 5/25/2033 (i) |
26,356,928 |
130,615 |
||
|
Freddie Mac, 0.249%, 2/25/2028 (i) |
69,699,500 |
123,159 |
||
|
Freddie Mac, 0.246%, 4/25/2028 (i) |
46,679,303 |
93,821 |
||
|
Freddie Mac, 0.617%, 10/25/2028 (i) |
6,087,848 |
51,011 |
||
|
Freddie Mac, 0.6%, 5/25/2029 (i) |
6,523,706 |
67,880 |
||
|
Freddie Mac, 1.005%, 7/25/2029 (i) |
4,906,286 |
106,256 |
||
|
Freddie Mac, 1.207%, 7/25/2029 (i) |
7,737,161 |
205,557 |
||
|
Freddie Mac, 1.256%, 8/25/2029 (i) |
13,685,551 |
382,454 |
||
|
Freddie Mac, 0.733%, 1/25/2030 (i) |
2,474,430 |
39,641 |
||
|
Freddie Mac, 1.434%, 1/25/2030 - 6/25/2030 (i) |
7,970,982 |
331,487 |
||
|
Freddie Mac, 1.913%, 4/25/2030 (i) |
3,344,437 |
194,894 |
||
|
Freddie Mac, 1.954%, 4/25/2030 (i) |
8,166,315 |
483,153 |
||
|
Freddie Mac, 1.769%, 5/25/2030 (i) |
4,373,949 |
247,998 |
||
|
Freddie Mac, 1.908%, 5/25/2030 (i) |
9,928,903 |
593,048 |
||
|
Freddie Mac, 5.5%, 6/01/2030 - 9/01/2041 |
491,246 |
497,912 |
||
|
Freddie Mac, 1.2%, 6/25/2030 (i) |
3,036,462 |
107,283 |
||
|
Freddie Mac, 1.701%, 8/25/2030 (i) |
3,506,241 |
193,906 |
||
|
Freddie Mac, 1.261%, 9/25/2030 (i) |
2,193,674 |
91,965 |
||
|
Freddie Mac, 0.404%, 1/25/2031 (i) |
12,490,986 |
130,150 |
||
|
Freddie Mac, 0.87%, 1/25/2031 (i) |
4,987,462 |
156,410 |
||
|
Freddie Mac, 5.481%, 2/25/2031 (i) |
2,871,045 |
49,794 |
||
|
Freddie Mac, 1.321%, 7/25/2031 (i) |
3,953,830 |
208,022 |
||
|
Freddie Mac, 0.954%, 9/25/2031 (i) |
5,826,990 |
217,713 |
||
|
Freddie Mac, 0.434%, 6/25/2032 (i) |
17,860,106 |
308,051 |
||
|
Freddie Mac, 4.101%, 10/15/2032 |
19,354 |
19,343 |
||
|
Freddie Mac, 0.302%, 11/25/2032 (i) |
11,453,817 |
126,853 |
||
|
Freddie Mac, 0.3%, 8/25/2033 (i) |
12,475,897 |
134,690 |
||
|
Freddie Mac, 0.363%, 10/25/2033 (i) |
11,781,459 |
171,060 |
||
|
Freddie Mac, 5%, 5/01/2034 - 12/01/2044 |
931,313 |
926,023 |
||
|
Freddie Mac, 6%, 8/01/2034 - 10/01/2038 |
304,132 |
312,136 |
||
|
Freddie Mac, 1.092%, 9/25/2034 (i) |
1,508,629 |
94,926 |
||
|
Freddie Mac, 0.22%, 1/25/2035 (i) |
17,854,931 |
146,289 |
||
|
Freddie Mac, 0.427%, 1/25/2035 (i) |
6,569,974 |
136,119 |
||
|
Freddie Mac, 3.951%, 4/15/2035 |
10,121 |
10,061 |
||
|
Freddie Mac, 5.5%, 2/15/2036 (i) |
87,032 |
12,998 |
||
|
Freddie Mac, 6.5%, 5/01/2037 |
3,290 |
3,408 |
||
|
Freddie Mac, 4%, 8/01/2037 - 4/15/2044 |
1,337,237 |
1,289,035 |
||
|
Freddie Mac, 4.451%, 5/15/2039 |
24,987 |
25,047 |
||
|
Freddie Mac, 4.5%, 7/01/2039 - 5/01/2042 |
533,687 |
517,520 |
||
|
Freddie Mac, 3%, 7/15/2039 - 10/01/2046 |
2,315,587 |
2,059,483 |
||
|
Freddie Mac, 4.5%, 12/15/2040 (i) |
10,904 |
987 |
||
|
Freddie Mac, 3.5%, 2/01/2042 - 10/25/2058 |
1,886,218 |
1,746,312 |
||
|
Freddie Mac, 4.151%, 8/15/2046 |
38,951 |
38,602 |
||
|
Freddie Mac, 2.249%, 11/15/2048 (i) |
785,918 |
60,489 |
||
|
Freddie Mac, 3%, 2/25/2049 - 10/25/2052 (i) |
500,838 |
59,947 |
||
14
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Mortgage-Backed – continued |
||||
|
Freddie Mac, 2.292%, 8/25/2049 (i) |
$ |
319,786 |
$29,856 |
|
|
Freddie Mac, 2.5%, 11/25/2050 - 3/25/2051 (i) |
1,433,286 |
229,425 |
||
|
Freddie Mac, 2%, 2/25/2051 - 3/25/2052 (i) |
1,089,677 |
135,996 |
||
|
Freddie Mac, 4.843%, 9/25/2053 |
813,613 |
820,128 |
||
|
Freddie Mac, 5.093%, 10/25/2053 |
619,057 |
631,076 |
||
|
Freddie Mac, 5.643%, 11/25/2053 |
912,201 |
937,000 |
||
|
Freddie Mac, 5.873%, 12/25/2053 |
448,194 |
449,232 |
||
|
Freddie Mac, 4.943%, 1/25/2054 - 12/25/2054 |
1,605,581 |
1,620,404 |
||
|
Freddie Mac, 4.743%, 9/25/2054 |
680,408 |
683,706 |
||
|
Freddie Mac, 5.143%, 12/25/2054 |
976,520 |
983,998 |
||
|
Freddie Mac, 6.093%, 1/25/2055 |
299,253 |
301,894 |
||
|
Freddie Mac, 7.593%, 9/25/2055 |
87,265 |
90,140 |
||
|
Freddie Mac, 2.349%, 8/15/2057 (i) |
279,425 |
29,498 |
||
|
Freddie Mac, 3.25%, 11/25/2061 |
674,856 |
618,997 |
||
|
Freddie Mac, UMBS, 2.5%, 3/01/2037 - 9/01/2052 |
1,686,279 |
1,411,383 |
||
|
Freddie Mac, UMBS, 2%, 2/01/2042 - 2/01/2052 |
3,591,281 |
2,865,866 |
||
|
Freddie Mac, UMBS, 3%, 3/01/2047 - 9/01/2052 |
1,529,096 |
1,333,384 |
||
|
Freddie Mac, UMBS, 1.5%, 11/01/2051 |
32,414 |
24,187 |
||
|
Freddie Mac, UMBS, 3.5%, 5/01/2052 |
114,050 |
102,302 |
||
|
Freddie Mac, UMBS, 6%, 10/01/2052 - 7/01/2054 |
139,872 |
141,601 |
||
|
Freddie Mac, UMBS, 5.5%, 4/01/2053 |
246,079 |
247,508 |
||
|
Freddie Mac, UMBS, 6.5%, 11/01/2054 |
321,842 |
333,335 |
||
|
Ginnie Mae, 3.5%, 8/20/2029 - 1/20/2043 (i) |
777,168 |
93,242 |
||
|
Ginnie Mae, 5.5%, 5/15/2033 - 2/20/2053 |
2,269,334 |
2,268,664 |
||
|
Ginnie Mae, 4.5%, 7/20/2033 - 9/20/2041 |
1,353,875 |
1,311,568 |
||
|
Ginnie Mae, 5.646%, 8/20/2034 |
161,692 |
162,904 |
||
|
Ginnie Mae, 4%, 5/16/2039 - 7/20/2052 |
405,952 |
390,206 |
||
|
Ginnie Mae, 5%, 8/20/2039 - 1/20/2053 |
893,580 |
876,600 |
||
|
Ginnie Mae, 4%, 12/20/2039 - 8/16/2042 (i) |
252,116 |
40,203 |
||
|
Ginnie Mae, 1.983%, 3/20/2040 (i) |
600,299 |
37,738 |
||
|
Ginnie Mae, 3.867%, 9/20/2041 |
861,341 |
839,716 |
||
|
Ginnie Mae, 3.5%, 12/15/2041 - 4/20/2047 |
2,046,151 |
1,874,955 |
||
|
Ginnie Mae, 2.5%, 6/20/2042 - 11/20/2051 |
2,069,471 |
1,739,432 |
||
|
Ginnie Mae, 2.433%, 8/20/2044 - 7/20/2050 (i) |
807,089 |
78,891 |
||
|
Ginnie Mae, 2.383%, 12/20/2044 (i) |
164,445 |
10,726 |
||
|
Ginnie Mae, 3%, 4/20/2045 - 2/20/2052 |
2,993,336 |
2,624,174 |
||
|
Ginnie Mae, 1.883%, 10/20/2045 (i) |
567,268 |
39,704 |
||
|
Ginnie Mae, 2.283%, 4/20/2046 (i) |
444,389 |
38,953 |
||
|
Ginnie Mae, 2.496%, 2/16/2048 (i) |
331,613 |
27,789 |
||
|
Ginnie Mae, 2.233%, 2/20/2049 (i) |
512,272 |
37,428 |
||
|
Ginnie Mae, 2.5%, 10/20/2050 - 2/20/2051 (i) |
1,171,232 |
170,756 |
||
|
Ginnie Mae, 2.561%, 5/20/2051 (i) |
297,254 |
34,214 |
||
|
Ginnie Mae, 2.533%, 6/20/2051 (i) |
1,073,396 |
114,979 |
||
|
Ginnie Mae, 2.361%, 7/20/2051 (i) |
318,788 |
31,734 |
||
|
Ginnie Mae, 3%, 2/20/2052 (i) |
209,958 |
34,231 |
||
|
Ginnie Mae, 2%, 3/20/2052 |
143,955 |
115,622 |
||
|
Ginnie Mae, 4.689%, 7/20/2053 - 10/20/2054 |
1,722,668 |
1,729,050 |
||
|
Ginnie Mae, 4.539%, 8/20/2053 |
704,251 |
704,872 |
||
|
Ginnie Mae, 4.639%, 8/20/2053 - 12/20/2064 |
2,832,361 |
2,834,141 |
||
|
Ginnie Mae, 4.889%, 8/20/2053 - 4/20/2055 |
1,118,154 |
1,127,994 |
||
|
Ginnie Mae, 4.989%, 9/20/2053 - 5/20/2055 |
2,116,029 |
2,138,329 |
||
|
Ginnie Mae, 5.039%, 9/20/2053 |
848,450 |
859,661 |
||
|
Ginnie Mae, 4.939%, 10/20/2053 |
788,198 |
796,533 |
||
|
Ginnie Mae, 4.289%, 11/20/2053 |
568,237 |
566,968 |
||
15
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Mortgage-Backed – continued |
||||
|
Ginnie Mae, 4.739%, 11/20/2053 - 11/20/2054 |
$ |
3,003,961 |
$3,022,728 |
|
|
Ginnie Mae, 4.839%, 12/20/2053 - 4/20/2064 |
3,508,290 |
3,527,801 |
||
|
Ginnie Mae, 4.589%, 3/20/2054 |
152,035 |
152,010 |
||
|
Ginnie Mae, 4.838%, 3/20/2054 |
702,207 |
704,526 |
||
|
Ginnie Mae, 4.789%, 6/20/2054 - 3/20/2064 |
1,398,101 |
1,404,177 |
||
|
Ginnie Mae, 5.139%, 5/20/2055 |
861,875 |
869,221 |
||
|
Ginnie Mae, 7.589%, 5/20/2055 |
174,305 |
176,930 |
||
|
Ginnie Mae, 6.117%, 6/20/2055 |
511,383 |
485,844 |
||
|
Ginnie Mae, 6.192%, 6/20/2055 |
239,354 |
227,522 |
||
|
Ginnie Mae, 1.711%, 7/20/2055 (i) |
332,621 |
14,390 |
||
|
Ginnie Mae, 6%, 11/20/2055 |
340,893 |
347,304 |
||
|
Ginnie Mae, 4.369%, 2/20/2056 |
263,877 |
263,297 |
||
|
Ginnie Mae, 2.099%, 12/20/2062 (i) |
469,936 |
20,132 |
||
|
Ginnie Mae, 2.461%, 5/20/2064 (i) |
588,508 |
25,630 |
||
|
Ginnie Mae, 4.462%, 7/20/2064 |
61,205 |
61,335 |
||
|
Ginnie Mae, 4.439%, 8/20/2065 - 2/20/2066 |
1,090,621 |
1,085,639 |
||
|
Ginnie Mae, 4.488%, 9/20/2065 |
546,589 |
547,941 |
||
|
Ginnie Mae, 4.532%, 10/20/2066 |
80,732 |
81,007 |
||
|
Ginnie Mae, 4.552%, 10/20/2066 |
199,711 |
200,505 |
||
|
Ginnie Mae, 4.541%, 1/20/2067 |
182,737 |
183,490 |
||
|
Ginnie Mae, 4.392%, 2/20/2067 |
157,322 |
157,645 |
||
|
Ginnie Mae, 4.506%, 3/20/2067 |
309,679 |
310,452 |
||
|
Ginnie Mae, 4.089%, 5/20/2067 |
622,892 |
621,713 |
||
|
Ginnie Mae, 5.041%, 7/20/2067 |
391,530 |
393,787 |
||
|
Ginnie Mae, 4.232%, 11/20/2067 |
128,715 |
128,438 |
||
|
Ginnie Mae, 4.298%, 4/20/2068 |
641,204 |
641,342 |
||
|
UMBS, TBA, 2.5%, 9/25/2056 |
550,000 |
448,551 |
||
|
UMBS, TBA, 3%, 9/25/2056 |
1,025,000 |
873,363 |
||
|
$103,445,771 |
||||
|
Municipals – 0.1% |
||||
|
Kentucky Higher Education Student Loan Corp. Rev., Taxable, “A-2”, 6.195%, 6/01/2040 |
$ |
830,000 |
$851,480 |
|
|
New Hampshire National Finance Authority, Utility Refunding Rev., Taxable (Wheeling Power Co. Project), “A”, 6.89%, 4/01/2034 |
630,000 |
651,519 |
||
|
$1,502,999 |
||||
|
Natural Gas - Distribution – 0.1% |
||||
|
Boston Gas Co., 5.843%, 1/10/2035 (n) |
$ |
920,000 |
$933,044 |
|
|
Natural Gas - Pipeline – 0.2% |
||||
|
APA Infrastructure Ltd., 5%, 3/23/2035 (n) |
$ |
236,000 |
$226,232 |
|
|
APA Infrastructure Ltd., 5.75%, 9/16/2044 (n) |
1,083,000 |
1,038,552 |
||
|
Promigas S.A. /Gases del Pacifico S.A.C., 7.75%, 6/24/2056 (n) |
517,000 |
525,996 |
||
|
Spire, Inc., 4.6%, 9/01/2031 |
1,118,000 |
1,087,161 |
||
|
Spire, Inc., 6.25%, 6/01/2056 |
757,000 |
754,530 |
||
|
$3,632,471 |
||||
|
Network & Telecom – 0.0% |
||||
|
NTT Finance Corp., 5.171%, 7/16/2032 (n) |
$ |
798,000 |
$785,147 |
|
16
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Non-Global Systemically Important Banks – 1.4% |
||||
|
AIB Group PLC, 6.608% to 9/13/2028, FLR (SOFR - 1 day + 2.33%) to 9/13/2029 (n) |
$ |
994,000 |
$1,024,844 |
|
|
Banco de Crédito del Perú, 6.45% to 7/30/2030, FLR (CMT - 5yr. + 2.486%) to 7/30/2035 (n) |
829,000 |
846,094 |
||
|
Banco Internacional del Peru S.A.A. (Interbank), 4.8%, 7/15/2031 (n) |
734,000 |
714,975 |
||
|
Banco Mercantil del Norte S.A., 8.45%, 9/24/2174 (n) |
733,000 |
734,099 |
||
|
Banco Mercantil del Norte S.A., 8%, 10/24/2174 (n) |
620,000 |
620,620 |
||
|
Banco Santander Chile, 4.55%, 11/20/2030 (n) |
725,000 |
710,761 |
||
|
Bangkok Bank Public Co. Ltd. (Hong Kong), 3.733% to 9/25/2029, FLR (CMT - 5yr. + 1.9%) to 9/25/2034 |
605,000 |
571,075 |
||
|
Bank Hapoalim B.M., 4.722%, 7/14/2029 (n) |
1,229,000 |
1,206,936 |
||
|
Bank Leumi le-Israel B.M., 5.642%, 6/29/2033 (n) |
756,000 |
756,771 |
||
|
Bank Polska Kasa Opieki S.A., 3.625%, 6/03/2030 |
EUR |
511,000 |
588,656 |
|
|
BBVA Bancomer S.A. (Texas), 8.125%, 1/08/2039 (n) |
$ |
476,000 |
503,935 |
|
|
BBVA Mexico S.A. (CoCo), 8.45% to 6/29/2033, FLR (CMT - 5yr. + 4.661%) to 6/29/2038 (n) |
362,000 |
389,638 |
||
|
BBVA Mexico S.A. Institucion de Banca Multiple Grupo, 5.4%, 6/03/2031 (n) |
832,000 |
823,680 |
||
|
BBVA Mexico S.A. Institucion de Banca Multiple Grupo, 7.625%, 2/11/2035 (n) |
485,000 |
500,035 |
||
|
CaixaBank S.A., 6.84% to 9/13/2033, FLR (SOFR - 1 day + 2.77%) to 9/13/2034 (n) |
1,010,000 |
1,080,187 |
||
|
Commonwealth Bank of Australia, 3.61% to 9/12/2029, FLR (CMT - 1yr. + 2.05%) to 9/12/2034 (n) |
818,000 |
780,162 |
||
|
Commonwealth Bank of Australia, 3.305%, 3/11/2041 (n) |
751,000 |
556,366 |
||
|
Deutsche Bank AG, 5.706% to 2/08/2027, FLR (SOFR - 1 day + 1.594%) to 2/08/2028 |
1,091,000 |
1,095,814 |
||
|
Deutsche Bank AG, 5.373% to 1/10/2028, FLR (SOFR - 1 day + 1.21%) to 1/10/2029 |
564,000 |
567,661 |
||
|
Deutsche Bank AG, 4.95% to 8/04/2030, FLR (SOFR - 1 day + 1.3%) to 8/04/2031 |
484,000 |
476,785 |
||
|
HDFC Bank Ltd./GIFT City, 5.401%, 8/26/2031 (n) |
711,000 |
709,275 |
||
|
ICICI Bank Ltd., 5.459%, 7/30/2031 (n) |
719,000 |
719,640 |
||
|
Industrial Subordinated Trust 2.0, 6.55% to 4/15/2031, FLR (CMT - 5yr. + 2.864%) to 4/15/2036 (n) |
423,000 |
423,211 |
||
|
Intesa Sanpaolo S.p.A., 7.2%, 11/28/2033 (n) |
620,000 |
684,112 |
||
|
Intesa Sanpaolo S.p.A., 6.005%, 6/29/2037 (n) |
457,000 |
447,586 |
||
|
M&T Bank Corp., 5.053% to 1/27/2033, FLR (SOFR - 1 day + 1.850%) to 1/27/2034 |
494,000 |
480,251 |
||
|
Mizrahi Tefahot Bank Ltd., 5.837%, 4/15/2036 (n) |
757,000 |
753,950 |
||
|
National Australia Bank Ltd., 3.347% to 1/12/2032, FLR (CMT - 5yr. + 1.7%) to 1/12/2037 (n) |
1,931,000 |
1,724,996 |
||
|
Nationwide Building Society, 4.351%, 9/30/2030 (n) |
819,000 |
795,417 |
||
|
NBK SPC Ltd. (State of Kuwait), 5.5% to 6/06/2029, FLR (SOFR - 1 day + 1.16%) to 6/06/2030 (n) |
426,000 |
427,967 |
||
|
Pinnacle Financial Partners, Inc., 5.596% to 5/19/2031, FLR (SOFR - 1 day + 1.7%) to 5/19/2032 |
1,377,000 |
1,361,179 |
||
|
PNC Financial Services Group, Inc., 5.676% to 1/22/2034, FLR (SOFR - 1 day + 1.902%) to 1/22/2035 |
698,000 |
705,421 |
||
|
PNC Financial Services Group, Inc., 5.575% to 1/29/2035, FLR (SOFR - 1 day + 1.394%) to 1/29/2036 |
292,000 |
292,294 |
||
|
$24,074,393 |
||||
|
Pharmaceuticals & Biotechnology – 0.4% |
||||
|
AbbVie, Inc., 5.35%, 3/15/2044 |
$ |
1,063,000 |
$1,002,441 |
|
|
AbbVie, Inc., 5.4%, 3/15/2054 |
468,000 |
428,396 |
||
|
AbbVie, Inc., 6%, 9/15/2056 |
360,000 |
357,742 |
||
|
Bayer U.S. Finance LLC, 5.375%, 7/20/2033 (n) |
584,000 |
576,830 |
||
|
Biocon Biologics Global PLC, 6.67%, 10/09/2029 (n) |
751,000 |
755,124 |
||
|
Eli Lilly & Co., 4.7%, 2/09/2034 |
1,155,000 |
1,127,071 |
||
|
Eli Lilly & Co., 5.5%, 2/12/2055 |
272,000 |
256,178 |
||
|
Merck & Co., Inc., 4.75%, 12/04/2035 |
748,000 |
714,144 |
||
|
Mylan, Inc., 5.2%, 4/15/2048 |
271,000 |
218,946 |
||
|
Pfizer Investment Enterprises Pte. Ltd., 5.3%, 5/19/2053 |
275,000 |
245,913 |
||
|
Pfizer, Inc., 2.55%, 5/28/2040 |
715,000 |
501,295 |
||
|
Viatris, Inc., 4%, 6/22/2050 |
774,000 |
518,233 |
||
|
$6,702,313 |
||||
|
Pollution Control – 0.0% |
||||
|
Ambipar Lux S.à r.l., 10.875%, 2/05/2033 (a)(d)(n) |
$ |
488,000 |
$172,020 |
|
17
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Railroads – 0.1% |
||||
|
Burlington Northern Santa Fe LLC, 5.2%, 4/15/2054 |
$ |
1,172,000 |
$1,044,314 |
|
|
Burlington Northern Santa Fe LLC, 5.5%, 3/15/2055 |
356,000 |
330,916 |
||
|
Canadian Pacific Railway Co., 3.1%, 12/02/2051 |
1,362,000 |
849,677 |
||
|
$2,224,907 |
||||
|
Real Estate - Apartment – 0.1% |
||||
|
American Homes 4 Rent LP, REIT, 5.25%, 3/15/2035 |
$ |
1,248,000 |
$1,214,882 |
|
|
Real Estate - Healthcare – 0.0% |
||||
|
Alexandria Real Estate Equities, Inc., REIT, 7.25% to 2/15/2032, FLR (CMT - 5yr. + 2.889%) to 2/15/2057 |
$ |
567,000 |
$566,774 |
|
|
Real Estate - Other – 0.0% |
||||
|
Prologis LP, REIT, 5.125%, 1/15/2034 |
$ |
453,000 |
$447,726 |
|
|
Real Estate - Retail – 0.2% |
||||
|
NNN REIT, Inc., 5.6%, 10/15/2033 |
$ |
449,000 |
$452,921 |
|
|
Realty Income Corp., REIT, 5.375%, 9/01/2054 |
951,000 |
882,196 |
||
|
STORE Capital Corp., REIT, 4.625%, 3/15/2029 |
325,000 |
320,801 |
||
|
STORE Capital Corp., REIT, 2.75%, 11/18/2030 |
1,030,000 |
922,890 |
||
|
$2,578,808 |
||||
|
Real Estate - Storage & Office – 0.2% |
||||
|
Boston Properties LP, REIT, 2.75%, 10/01/2026 |
$ |
637,000 |
$636,210 |
|
|
COPT Defense Properties, REIT, 2%, 1/15/2029 |
494,000 |
461,733 |
||
|
COPT Defense Properties, REIT, 2.75%, 4/15/2031 |
363,000 |
325,574 |
||
|
Highwoods Realty LP, 4.2%, 4/15/2029 |
501,000 |
488,792 |
||
|
Highwoods Realty LP, 5.35%, 1/15/2033 |
908,000 |
888,559 |
||
|
$2,800,868 |
||||
|
Refining – 0.1% |
||||
|
Dangote Petroleum Refinery, 7.5%, 7/16/2031 |
$ |
589,000 |
$588,431 |
|
|
Raizen Fuels Finance S.A., 6.25%, 7/08/2032 (a)(d)(z) |
1,517,000 |
864,902 |
||
|
$1,453,333 |
||||
|
Retail & E-commerce – 0.2% |
||||
|
Alimentation Couche-Tard, Inc., 3.8%, 1/25/2050 (n) |
$ |
683,000 |
$481,368 |
|
|
Amazon.com, Inc., 5.65%, 3/13/2046 |
1,020,000 |
956,323 |
||
|
Dick's Sporting Goods, 4.1%, 1/15/2052 |
967,000 |
658,670 |
||
|
Home Depot, Inc., 3.9%, 6/15/2047 |
1,234,000 |
928,541 |
||
|
$3,024,902 |
||||
|
Semiconductor & Electronic Components – 0.1% |
||||
|
Broadcom, Inc., 5.2%, 7/15/2035 |
$ |
530,000 |
$505,075 |
|
|
Broadcom, Inc., 4.8%, 2/15/2036 |
384,000 |
352,383 |
||
|
Broadcom, Inc., 5.7%, 1/15/2056 |
446,000 |
401,770 |
||
|
Intel Corp., 5.7%, 2/10/2053 |
488,000 |
435,678 |
||
|
$1,694,906 |
||||
|
Software – 0.3% |
||||
|
Kaspi.kz JSC, 6.25%, 3/26/2030 (n) |
$ |
1,064,000 |
$1,075,313 |
|
|
Microsoft Corp., 2.525%, 6/01/2050 |
1,014,000 |
570,877 |
||
|
Microsoft Corp., 2.5%, 9/15/2050 |
1,010,000 |
565,664 |
||
|
Oracle Corp., 4.95%, 2/04/2031 |
584,000 |
559,608 |
||
18
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Software – continued |
||||
|
Oracle Corp., 4.8%, 9/26/2032 |
$ |
273,000 |
$252,413 |
|
|
Oracle Corp., 5.35%, 5/04/2033 |
704,000 |
663,357 |
||
|
Oracle Corp., 5.7%, 2/04/2036 |
572,000 |
528,896 |
||
|
Oracle Corp., 4%, 7/15/2046 |
598,000 |
383,474 |
||
|
Oracle Corp., 5.55%, 2/06/2053 |
538,000 |
407,101 |
||
|
Salesforce, Inc., 5.55%, 3/15/2036 |
766,000 |
751,993 |
||
|
$5,758,696 |
||||
|
Supermarkets – 0.0% |
||||
|
Kroger Co., 5.5%, 9/15/2054 |
$ |
384,000 |
$344,560 |
|
|
Supranational – 0.1% |
||||
|
African Development Bank, 5.875% to 8/07/2035, FLR (CMT - 5yr. + 1.653%) to 8/07/2174 |
$ |
821,000 |
$802,650 |
|
|
African Export-Import Bank, 6.25%, 1/23/2032 (n) |
717,000 |
716,046 |
||
|
Corporación Andina de Fomento, 6.75%, 12/17/2173 (n) |
613,000 |
626,792 |
||
|
$2,145,488 |
||||
|
Telecommunications - Wireless – 0.3% |
||||
|
American Tower Corp., 5.2%, 2/15/2029 |
$ |
541,000 |
$544,489 |
|
|
American Tower Corp., 5.45%, 2/15/2034 |
305,000 |
303,715 |
||
|
Cellnex Finance Co. S.A., 3.875%, 7/07/2041 (n) |
519,000 |
402,178 |
||
|
HTA Group Ltd./Mauritius, 6.75%, 4/01/2031 (n) |
453,000 |
457,826 |
||
|
Rogers Communications, Inc., 4.5%, 3/15/2042 |
779,000 |
640,524 |
||
|
T-Mobile USA, Inc., 5.05%, 7/15/2033 |
572,000 |
560,031 |
||
|
T-Mobile USA, Inc., 4.5%, 4/15/2050 |
428,000 |
326,663 |
||
|
T-Mobile USA, Inc., 5.75%, 1/15/2054 |
427,000 |
385,239 |
||
|
Veon Midco B.V., 6.95%, 6/01/2031 (n) |
434,000 |
433,519 |
||
|
Veon Midco B.V., 7.45%, 6/01/2033 (n) |
311,000 |
311,008 |
||
|
Vodafone Group PLC, 5.625%, 2/10/2053 |
864,000 |
773,756 |
||
|
$5,138,948 |
||||
|
Tobacco – 0.1% |
||||
|
B.A.T. Capital Corp., 6.343%, 8/02/2030 |
$ |
639,000 |
$667,488 |
|
|
Japan Tobacco, Inc., 5.25%, 6/15/2030 (n) |
536,000 |
541,038 |
||
|
$1,208,526 |
||||
|
Transportation & Logistics – 0.3% |
||||
|
Adani Ports & Special Economic Zone Ltd., 5%, 8/02/2041 (n) |
$ |
865,000 |
$745,573 |
|
|
Aeropuertos Dominicanos Siglo XXI S.A., 7%, 6/30/2034 (n) |
632,000 |
654,474 |
||
|
Corporación Quiport S.A. (Republic of Ecuador), 9%, 12/15/2037 (n) |
323,000 |
356,107 |
||
|
Element Fleet Management Corp., 6.319%, 12/04/2028 (n) |
898,000 |
925,396 |
||
|
ERAC USA Finance LLC, 4.7%, 4/30/2031 (n) |
533,000 |
525,569 |
||
|
ERAC USA Finance LLC, 5.25%, 4/30/2036 (n) |
494,000 |
483,468 |
||
|
IRB Infrastructure Developers Ltd., 7.11%, 3/11/2032 (n) |
751,000 |
760,283 |
||
|
Kingston Airport Revenue Ltd., 6.75%, 12/15/2036 (n) |
446,538 |
445,199 |
||
|
Montego Bay Airport Revenue Finance Ltd., 6.6%, 6/15/2035 (n) |
543,000 |
532,846 |
||
|
$5,428,915 |
||||
|
Travel, Gaming, & Lodging – 0.2% |
||||
|
Flutter Treasury DAC, 6.375%, 4/29/2029 (n) |
$ |
709,000 |
$716,930 |
|
|
Flutter Treasury DAC, 5.875%, 6/04/2031 (n) |
446,000 |
438,294 |
||
|
Las Vegas Sands Corp., 5.3%, 5/15/2031 |
329,000 |
325,074 |
||
|
Las Vegas Sands Corp., 6.2%, 8/15/2034 |
594,000 |
600,658 |
||
19
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Travel, Gaming, & Lodging – continued |
||||
|
Marriott International, Inc., 2.85%, 4/15/2031 |
$ |
378,000 |
$343,149 |
|
|
Marriott International, Inc., 3.5%, 10/15/2032 |
347,000 |
314,897 |
||
|
Sands China Ltd., 2.85%, 3/08/2029 |
683,000 |
646,136 |
||
|
Wynn Macau Ltd., 6.75%, 2/15/2034 (n) |
707,000 |
700,373 |
||
|
$4,085,511 |
||||
|
U.S. Government Agencies and Equivalents – 0.0% |
||||
|
Small Business Administration, 5.16%, 2/01/2028 |
$ |
3,388 |
$3,389 |
|
|
Small Business Administration, 2.21%, 2/01/2033 |
40,825 |
37,779 |
||
|
Small Business Administration, 2.22%, 3/01/2033 |
81,951 |
76,379 |
||
|
Small Business Administration, 3.15%, 7/01/2033 |
83,246 |
79,152 |
||
|
Small Business Administration, 3.16%, 8/01/2033 |
103,973 |
98,159 |
||
|
Small Business Administration, 3.62%, 9/01/2033 |
77,646 |
74,850 |
||
|
$369,708 |
||||
|
U.S. Treasury Obligations – 3.8% |
||||
|
U.S. Treasury Bonds, 6.375%, 8/15/2027 |
$ |
106,000 |
$108,132 |
|
|
U.S. Treasury Bonds, 2.375%, 2/15/2042 |
5,989,000 |
4,229,731 |
||
|
U.S. Treasury Bonds, 3.25%, 5/15/2042 |
1,714,000 |
1,366,580 |
||
|
U.S. Treasury Bonds, 2.875%, 5/15/2043 |
6,853,400 |
5,084,902 |
||
|
U.S. Treasury Bonds, 4.75%, 11/15/2043 |
2,027,000 |
1,926,442 |
||
|
U.S. Treasury Bonds, 4.75%, 2/15/2045 |
5,301,000 |
5,002,612 |
||
|
U.S. Treasury Bonds, 5%, 5/15/2045 |
2,193,000 |
2,132,864 |
||
|
U.S. Treasury Bonds, 5%, 5/15/2046 |
2,790,000 |
2,707,608 |
||
|
U.S. Treasury Bonds, 2.875%, 11/15/2046 (f) |
2,136,000 |
1,498,454 |
||
|
U.S. Treasury Bonds, 4.75%, 2/15/2056 |
619,000 |
573,155 |
||
|
U.S. Treasury Bonds, 5%, 5/15/2056 |
2,377,000 |
2,290,834 |
||
|
U.S. Treasury Notes, 3.625%, 3/31/2028 (f) |
8,375,000 |
8,286,016 |
||
|
U.S. Treasury Notes, 2.375%, 5/15/2029 |
6,034,500 |
5,726,646 |
||
|
U.S. Treasury Notes, 4.5%, 5/31/2029 |
2,740,000 |
2,746,850 |
||
|
U.S. Treasury Notes, 3.875%, 9/30/2029 |
4,658,000 |
4,585,765 |
||
|
U.S. Treasury Notes, 4.625%, 4/30/2031 |
2,748,000 |
2,762,706 |
||
|
U.S. Treasury Notes, 1.625%, 5/15/2031 |
4,940,000 |
4,344,112 |
||
|
U.S. Treasury Notes, 1.875%, 2/15/2032 |
5,550,000 |
4,840,857 |
||
|
U.S. Treasury Notes, 2.75%, 8/15/2032 (f) |
7,333,000 |
6,644,672 |
||
|
$66,858,938 |
||||
|
Utilities – 1.4% |
||||
|
Adani Electricity Mumbai Ltd., 3.867%, 7/22/2031 (n) |
$ |
1,362,000 |
$1,240,359 |
|
|
Adani Transmission Step-One Ltd., 4.25%, 5/21/2036 (n) |
1,984,375 |
1,776,386 |
||
|
AEP Texas, Inc., 5.7%, 5/15/2034 |
1,043,000 |
1,053,149 |
||
|
AEP Transmission Co. LLC, 5.375%, 6/15/2035 |
229,000 |
228,021 |
||
|
AEP Transmission Co. LLC, 5.4%, 3/15/2053 |
1,016,000 |
925,858 |
||
|
AES Andes S.A., 6.25%, 3/14/2032 (n) |
456,000 |
467,247 |
||
|
AES Andes S.A., 8.15% to 6/10/2030, FLR (CMT - 5yr. + 3.835%) to 6/10/2035, FLR (CMT - 5yr. + 4.085%) to 6/10/2050, FLR (CMT - 5yr. + 4.835%) to 6/10/2055 (n) |
434,000 |
459,020 |
||
|
Alfa Desarrollo S.p.A., 4.55%, 9/27/2051 (n) |
1,011,272 |
792,908 |
||
|
American Transmission Systems, Inc., 2.65%, 1/15/2032 (n) |
257,000 |
226,543 |
||
|
Berkshire Hathaway Energy Co., 5.15%, 11/15/2043 |
292,000 |
264,556 |
||
|
Berkshire Hathaway Energy Co., 4.6%, 5/01/2053 |
139,000 |
110,155 |
||
|
CFE FIBRA E Banco Citi Mexico S.A., 5.875%, 9/23/2040 (n) |
715,957 |
690,398 |
||
|
Cox Asset Mexico S.A. de C.V., 7.125%, 1/08/2032 (n) |
279,000 |
279,755 |
||
|
Cox Asset Mexico S.A. de C.V., 7.75%, 5/08/2036 (n) |
240,000 |
241,416 |
||
|
Duke Energy Carolinas LLC, 2.85%, 3/15/2032 |
383,000 |
341,594 |
||
20
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Utilities – continued |
||||
|
Duke Energy Florida LLC, 3.4%, 10/01/2046 |
$ |
388,000 |
$270,568 |
|
|
Duke Energy Florida LLC, 6.2%, 11/15/2053 |
791,000 |
803,452 |
||
|
Enel Finance International N.V., 7.75%, 10/14/2052 (n) |
1,023,000 |
1,185,622 |
||
|
Energuate Trust, 6.35%, 9/15/2035 (n) |
795,000 |
779,378 |
||
|
Eversource Energy, 4.45%, 12/15/2030 |
413,000 |
401,957 |
||
|
Eversource Energy, 5.5%, 1/01/2034 |
413,000 |
412,490 |
||
|
FirstEnergy Corp., 2.65%, 3/01/2030 |
750,000 |
691,050 |
||
|
Florida Power & Light Co., 3.95%, 3/01/2048 |
1,477,000 |
1,110,038 |
||
|
Georgia Power Co., 4.7%, 5/15/2032 |
434,000 |
426,135 |
||
|
Georgia Power Co., 5.125%, 5/15/2052 |
703,000 |
618,681 |
||
|
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n) |
1,114,000 |
980,234 |
||
|
MidAmerican Energy Co., 5.85%, 9/15/2054 |
806,000 |
777,970 |
||
|
NextEra Energy Capital Holdings, Inc., 2.44%, 1/15/2032 |
470,000 |
408,830 |
||
|
NextEra Energy, Inc., 6% to 10/01/2031, FLR (CMT - 5yr. + 1.84%) to 10/01/2056 |
496,000 |
489,735 |
||
|
NextEra Energy, Inc., 6.2% to 10/01/2036, FLR (CMT - 5yr. + 1.765%) to 10/01/2056 |
331,000 |
322,580 |
||
|
Northern States Power Co. of Minnesota, 5.05%, 5/15/2035 |
577,000 |
564,709 |
||
|
Pacific Gas & Electric Co., 2.5%, 2/01/2031 |
274,000 |
243,983 |
||
|
Pacific Gas & Electric Co., 4%, 12/01/2046 |
503,000 |
361,647 |
||
|
PSEG Power LLC, 5.2%, 5/15/2030 (n) |
688,000 |
688,769 |
||
|
PSEG Power LLC, 5.75%, 5/15/2035 (n) |
569,000 |
567,543 |
||
|
Public Service Electric & Gas Co., 5.5%, 3/01/2055 |
518,000 |
478,479 |
||
|
Saavi Energia S.à r.l., 8.875%, 2/10/2035 (n) |
595,000 |
654,441 |
||
|
Sociedad Transmisora Metropolitana S.p.A., 6.385%, 12/15/2055 (n) |
719,000 |
715,729 |
||
|
Vistra Operations Co. LLC, 4.7%, 1/31/2031 (n) |
699,000 |
678,226 |
||
|
Vistra Operations Co. LLC, 5.35%, 1/31/2036 (n) |
699,000 |
667,637 |
||
|
Xcel Energy, Inc., 4.6%, 6/01/2032 |
615,000 |
594,689 |
||
|
$24,991,937 |
||||
|
Utilities - Other – 0.1% |
||||
|
Aegea Finance S.à r.l., 7.625%, 1/20/2036 (n) |
$ |
693,000 |
$567,840 |
|
|
National Central Cooling Co. PJSC, 2.5%, 10/21/2027 |
957,000 |
928,750 |
||
|
Nova Securitisation S.à r.l., 5.75%, 2/03/2031 (n) |
616,000 |
590,919 |
||
|
$2,087,509 |
||||
|
Total Bonds (Identified Cost, $680,616,974) |
$671,800,285 |
|||
|
Common Stocks – 35.9% |
||||
|
Aerospace & Defense – 0.5% |
||||
|
General Dynamics Corp. |
14,020 |
$5,206,327 |
||
|
Leidos Holdings, Inc. |
22,831 |
3,201,135 |
||
|
$8,407,462 |
||||
|
Alcoholic Beverages – 0.5% |
||||
|
Ambev S.A. |
3,328,000 |
$9,653,451 |
||
|
Apparel, Footwear, & Accessories – 0.2% |
||||
|
Columbia Sportswear Co. |
15,987 |
$917,654 |
||
|
Compagnie Financiere Richemont S.A. |
3,633 |
863,587 |
||
|
LVMH Moet Hennessy Louis Vuitton SE |
3,961 |
2,085,588 |
||
|
$3,866,829 |
||||
21
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Common Stocks – continued |
||||
|
Auto & Auto Components – 0.3% |
||||
|
Compagnie Generale des Etablissements Michelin |
105,365 |
$4,283,535 |
||
|
PT Astra International Tbk |
6,861,200 |
1,859,089 |
||
|
$6,142,624 |
||||
|
Brokerage & Asset Managers – 0.8% |
||||
|
Northern Trust Corp. |
77,630 |
$14,405,023 |
||
|
Business Services – 0.2% |
||||
|
Cognizant Technology Solutions Corp., “A” |
21,858 |
$1,411,590 |
||
|
Tata Consultancy Services Ltd. |
68,380 |
1,718,741 |
||
|
Verisk Analytics, Inc., “A” |
5,375 |
1,041,568 |
||
|
$4,171,899 |
||||
|
Construction – 2.2% |
||||
|
American Homes 4 Rent LP, REIT |
138,123 |
$4,599,496 |
||
|
Anhui Conch Cement Co. Ltd. |
662,000 |
1,426,066 |
||
|
Compagnie de Saint-Gobain S.A. |
30,935 |
2,814,237 |
||
|
Equity Lifestyle Properties, Inc., REIT |
63,220 |
4,011,309 |
||
|
Equity Residential, REIT |
135,478 |
8,825,037 |
||
|
Essex Property Trust, Inc., REIT |
24,976 |
7,067,209 |
||
|
Meritage Homes Corp. |
28,793 |
1,999,098 |
||
|
Mid-America Apartment Communities, Inc., REIT |
46,809 |
6,031,340 |
||
|
Midea Group Co. Ltd., “A” |
148,300 |
1,936,109 |
||
|
Techtronic Industries Co. Ltd. |
48,500 |
835,746 |
||
|
$39,545,647 |
||||
|
Consumer Products – 1.1% |
||||
|
Colgate-Palmolive Co. |
129,893 |
$11,666,989 |
||
|
Kimberly-Clark Corp. |
68,911 |
7,438,943 |
||
|
$19,105,932 |
||||
|
Consumer Services – 0.0% |
||||
|
Localiza Rent a Car S.A. |
99,700 |
$674,794 |
||
|
Containers – 0.1% |
||||
|
Smurfit Westrock PLC |
25,488 |
$1,195,387 |
||
|
Diversified Financial Services – 0.1% |
||||
|
IG Group Holdings PLC |
70,823 |
$1,336,793 |
||
|
Energy - Independent – 2.6% |
||||
|
Cenovus Energy, Inc. |
44,734 |
$1,436,962 |
||
|
ConocoPhillips |
28,814 |
3,817,567 |
||
|
Eni S.p.A. |
325,091 |
8,800,188 |
||
|
ExxonMobil Holdings Corp. |
12,166 |
1,958,118 |
||
|
PetroChina Co. Ltd. |
4,502,000 |
5,859,988 |
||
|
Suncor Energy, Inc. |
107,748 |
7,209,114 |
||
|
TotalEnergies SE |
74,101 |
6,501,019 |
||
|
Valero Energy Corp. |
15,068 |
5,408,207 |
||
|
Woodside Energy Group Ltd. |
209,666 |
4,883,038 |
||
|
$45,874,201 |
||||
22
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Common Stocks – continued |
||||
|
Engineering - Construction – 0.2% |
||||
|
Doosan Bobcat, Inc. |
58,900 |
$2,670,206 |
||
|
Entertainment & Leisure – 0.8% |
||||
|
Brunswick Corp. |
68,629 |
$5,208,941 |
||
|
Lamar Advertising Co., REIT |
32,886 |
4,900,343 |
||
|
NetEase, Inc. |
140,200 |
3,415,087 |
||
|
$13,524,371 |
||||
|
Food & Beverages – 0.4% |
||||
|
Inner Mongolia Yili Industrial Group Co. Ltd., “A” |
211,800 |
$835,242 |
||
|
Nomad Foods Ltd. |
149,057 |
1,735,023 |
||
|
PepsiCo, Inc. |
17,717 |
2,486,404 |
||
|
WH Group Ltd. |
1,633,000 |
1,544,782 |
||
|
$6,601,451 |
||||
|
Food & Drug Stores – 0.7% |
||||
|
Jeronimo Martins SGPS S.A. |
110,668 |
$2,313,835 |
||
|
Tesco PLC |
1,573,752 |
9,718,632 |
||
|
$12,032,467 |
||||
|
Global Systemically Important Banks – 1.2% |
||||
|
BNP Paribas S.A. |
68,701 |
$8,201,808 |
||
|
China Construction Bank Corp. |
7,523,000 |
9,099,931 |
||
|
ING Groep N.V. |
89,162 |
3,157,213 |
||
|
$20,458,952 |
||||
|
Hardware, Peripherals, & Assembly – 0.9% |
||||
|
Hon Hai Precision Industry Co. Ltd. |
876,000 |
$6,877,271 |
||
|
Lenovo Group Ltd. |
746,000 |
2,858,963 |
||
|
Seagate Technology Holdings PLC |
4,650 |
3,851,967 |
||
|
SK Square Co. Ltd. |
4,145 |
3,107,031 |
||
|
$16,695,232 |
||||
|
Health Maintenance Organizations – 0.7% |
||||
|
Cigna Group |
43,684 |
$12,060,279 |
||
|
Insurance – 1.3% |
||||
|
American International Group, Inc. |
37,945 |
$2,897,480 |
||
|
Hartford Insurance Group, Inc. |
25,733 |
3,535,200 |
||
|
Lincoln National Corp. |
76,262 |
3,247,999 |
||
|
Manulife Financial Corp. |
41,771 |
1,771,866 |
||
|
MetLife, Inc. |
60,761 |
5,782,624 |
||
|
Sompo Holdings, Inc. |
107,700 |
4,606,692 |
||
|
Zurich Insurance Group AG |
2,385 |
1,748,439 |
||
|
$23,590,300 |
||||
|
Machinery & Tools – 0.4% |
||||
|
AGCO Corp. |
17,023 |
$2,013,991 |
||
|
GEA Group AG |
24,021 |
1,874,987 |
||
|
Wabtec Corp. |
9,286 |
2,655,146 |
||
|
$6,544,124 |
||||
23
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Common Stocks – continued |
||||
|
Media – 0.2% |
||||
|
Omnicom Group, Inc. |
44,341 |
$3,881,168 |
||
|
Medical & Health Technology & Services – 1.4% |
||||
|
Healthcare Realty Trust, Inc., REIT |
292,841 |
$5,575,693 |
||
|
Healthpeak Properties, Inc., REIT |
351,562 |
7,319,521 |
||
|
Ventas, Inc., REIT |
123,412 |
11,251,472 |
||
|
$24,146,686 |
||||
|
Medical Equipment – 0.1% |
||||
|
Medtronic PLC |
28,135 |
$2,550,438 |
||
|
Metals & Mining – 0.7% |
||||
|
Rio Tinto PLC |
63,951 |
$6,567,533 |
||
|
Toyota Tsusho Corp. |
134,800 |
6,310,074 |
||
|
$12,877,607 |
||||
|
Network & Telecom – 0.3% |
||||
|
LM Ericsson Telephone Co., “B” |
541,567 |
$5,469,020 |
||
|
Non-Global Systemically Important Banks – 0.8% |
||||
|
AIB Group PLC |
172,826 |
$2,201,180 |
||
|
DBS Group Holdings Ltd. |
27,340 |
1,664,791 |
||
|
Grupo Financiero Banorte S.A. de C.V. |
232,688 |
2,634,852 |
||
|
M&T Bank Corp. |
9,200 |
2,152,248 |
||
|
Popular, Inc. |
20,640 |
3,471,442 |
||
|
Regions Financial Corp. |
49,986 |
1,493,582 |
||
|
$13,618,095 |
||||
|
Oil Services – 0.3% |
||||
|
Tenaris S.A. |
162,863 |
$4,526,922 |
||
|
Pharmaceuticals & Biotechnology – 4.0% |
||||
|
AbbVie, Inc. |
17,723 |
$4,544,532 |
||
|
Gilead Sciences, Inc. |
105,910 |
15,498,869 |
||
|
Johnson & Johnson |
85,461 |
22,719,807 |
||
|
Novartis AG |
60,073 |
9,160,139 |
||
|
Pfizer, Inc. |
541,358 |
15,407,049 |
||
|
Sanofi S.A. |
39,768 |
3,548,047 |
||
|
$70,878,443 |
||||
|
Real Estate – 2.8% |
||||
|
Acadia Realty Trust, REIT |
232,363 |
$4,756,471 |
||
|
Essential Properties Realty Trust, REIT |
195,344 |
5,860,320 |
||
|
Federal Realty Investment Trust, REIT |
45,430 |
5,271,243 |
||
|
Janus Living, Inc., “A”, REIT |
152,800 |
4,545,800 |
||
|
Kimco Realty Corp., REIT |
121,353 |
2,877,280 |
||
|
NNN REIT, Inc. |
121,096 |
5,473,539 |
||
|
Regency Centers Corp., REIT |
71,802 |
5,368,635 |
||
|
Simon Property Group, Inc., REIT |
70,295 |
14,925,034 |
||
|
$49,078,322 |
||||
24
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Common Stocks – continued |
||||
|
Real Estate - Storage & Office – 3.8% |
||||
|
Americold Realty Trust, Inc., REIT |
302,382 |
$4,520,611 |
||
|
BXP, Inc., REIT |
134,910 |
9,172,531 |
||
|
Cousins Properties, Inc., REIT |
230,120 |
6,671,179 |
||
|
Extra Space Storage, Inc., REIT |
49,890 |
7,039,479 |
||
|
Highwoods Properties, Inc., REIT |
241,558 |
7,391,675 |
||
|
Prologis, Inc., REIT |
174,343 |
24,394,072 |
||
|
Rexford Industrial Realty, Inc., REIT |
202,038 |
7,483,487 |
||
|
$66,673,034 |
||||
|
Restaurants – 0.5% |
||||
|
Aramark |
172,888 |
$9,735,323 |
||
|
Retail & E-commerce – 0.3% |
||||
|
Home Depot, Inc. |
3,427 |
$1,123,473 |
||
|
Ross Stores, Inc. |
13,425 |
3,068,150 |
||
|
Shimamura Co. Ltd. (l) |
96,900 |
1,985,919 |
||
|
$6,177,542 |
||||
|
Semiconductor & Electronic Components – 0.1% |
||||
|
NVIDIA Corp. |
10,457 |
$2,308,696 |
||
|
Telecom - Infrastructure – 1.9% |
||||
|
Blackstone Digital Infrastructure Trust, Inc., REIT (a) |
105,210 |
$2,110,513 |
||
|
Digital Realty Trust, Inc., REIT |
74,445 |
13,816,247 |
||
|
Equinix, Inc., REIT |
16,803 |
17,588,036 |
||
|
$33,514,796 |
||||
|
Telecom Services – 0.6% |
||||
|
KDDI Corp. |
410,000 |
$7,595,587 |
||
|
Koninklijke KPN N.V. |
229,821 |
1,103,032 |
||
|
PT Telekom Indonesia |
9,476,900 |
1,386,798 |
||
|
$10,085,417 |
||||
|
Tobacco – 0.9% |
||||
|
Altria Group, Inc. |
42,351 |
$2,900,196 |
||
|
British American Tobacco PLC |
136,626 |
7,597,317 |
||
|
Imperial Brands PLC |
63,999 |
2,186,566 |
||
|
Philip Morris International, Inc. |
18,711 |
3,504,570 |
||
|
$16,188,649 |
||||
|
Transportation & Logistics – 0.3% |
||||
|
Union Pacific Corp. |
6,198 |
$1,863,553 |
||
|
Yangzijiang Shipbuilding Holdings Ltd. |
725,900 |
2,758,773 |
||
|
$4,622,326 |
||||
|
Travel, Gaming, & Lodging – 0.8% |
||||
|
Japan Airlines Co. Ltd. |
204,100 |
$3,830,874 |
||
|
Ryman Hospitality Properties, Inc., REIT |
25,851 |
3,276,873 |
||
|
VICI Properties, Inc., REIT |
292,700 |
7,507,755 |
||
|
$14,615,502 |
||||
25
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Common Stocks – continued |
||||
|
Utilities – 0.9% |
||||
|
Ameren Corp. |
9,965 |
$1,056,390 |
||
|
Atmos Energy Corp. |
33,689 |
5,596,753 |
||
|
CLP Holdings Ltd. |
295,500 |
2,963,405 |
||
|
Edison International |
83,807 |
4,523,902 |
||
|
Xcel Energy, Inc. |
23,020 |
1,742,384 |
||
|
$15,882,834 |
||||
|
Total Common Stocks (Identified Cost, $492,595,766) |
$635,388,244 |
|||
|
Convertible Preferred Stocks – 0.5% |
||||
|
Utilities – 0.5% |
||||
|
NextEra Energy, Inc., 7.234% |
107,185 |
$5,133,090 |
||
|
PG&E Corp., 6% |
97,379 |
3,299,200 |
||
|
Total Convertible Preferred Stocks (Identified Cost, $9,268,658) |
$8,432,290 |
|||
|
Preferred Stocks – 0.2% |
||||
|
Hardware, Peripherals, & Assembly – 0.2% |
||||
|
Samsung Electronics Co. Ltd. (Identified Cost, $1,482,424) |
28,156 |
$3,836,836 |
||
|
Convertible Bonds – 0.1% |
||||
|
Utilities – 0.1% |
||||
|
PG&E Corp., 4.25%, 12/01/2027 (Identified Cost, $950,000) |
$ |
950,000 |
$939,550 |
|
|
Mutual Funds (h) – 24.9% |
||||
|
Bond Funds – 24.0% |
||||
|
MFS High Yield Pooled Portfolio (v) |
51,807,742 |
$425,859,642 |
||
|
Money Market Funds – 0.9% |
||||
|
MFS Institutional Money Market Portfolio, 3.75% (v) |
15,847,117 |
$15,848,702 |
||
|
Total Mutual Funds (Identified Cost, $432,113,876) |
$441,708,344 |
|||
|
Underlying/Expiration Date/Exercise Price (Rate) |
Counterparty |
Notional
Amount |
Par Amount/
Number of
Contracts |
||
|
Purchased Options – 0.1% |
|||||
|
Market Index Securities – 0.0% |
|||||
|
Put - S&P 500 Index – 9/18/2026 @ $5,400 |
Goldman Sachs International |
$80,747,625 |
105 |
$3,675 |
|
|
Put - S&P 500 Index – 12/18/2026 @ $5,500 |
Goldman Sachs International |
130,734,250 |
170 |
249,900 |
|
|
$253,575 |
|||||
26
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Underlying/Expiration Date/Exercise Price (Rate) |
Counterparty |
Notional Amount |
Par Amount/ Number of Contracts |
Value ($) |
|
|
Purchased Options – continued |
|||||
|
Medical & Health Technology & Services – 0.1% |
|||||
|
Call - Welltower, Inc. – 1/15/2027 @ $240 |
Merrill Lynch International |
$19,418,928 |
822 |
$1,059,558 |
|
|
Call - Welltower, Inc. – 2/19/2027 @ $270 |
Morgan Stanley Capital Services LLC |
8,929,872 |
378 |
170,100 |
|
|
$1,229,658 |
|||||
|
Total Purchased Options
(Premiums Paid, $4,297,939) |
$1,483,233 |
||||
|
Other Assets, Less Liabilities – 0.4% |
7,426,068 |
||||
|
Net Assets – 100.0% |
$1,771,014,850 |
||||
|
(a) |
Non-income producing security. |
|
(d) |
In default. |
|
(f) |
All or a portion of the security has been segregated as collateral for open futures contracts and cleared swap agreements. |
|
(h) |
An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $441,708,344 and $1,321,880,438, 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. |
|
(l) |
A portion of this security is on loan. See Note 2 for additional information. |
|
(n) |
Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $240,766,801, representing 13.6% 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. |
|
(z) |
Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities: |
|
Restricted Securities |
Acquisition
Date |
Cost |
Value |
|
Raizen Fuels Finance S.A., 6.25%, 7/08/2032 |
6/26/25 |
$1,500,394 |
$864,902 |
|
% of Net assets |
0.0% |
|
The following abbreviations are used in this report and are defined: |
|
|
CLO |
Collateralized Loan Obligation |
|
CMT |
Constant Maturity Treasury |
|
FLR |
Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
|
ICE |
Intercontinental Exchange |
|
REIT |
Real Estate Investment Trust |
|
SOFR |
Secured Overnight Financing Rate |
|
TBA |
To Be Announced |
|
UMBS |
Uniform Mortgage-Backed Security |
|
Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below: |
|
|
BRL |
Brazilian Real |
|
COP |
Colombian Peso |
|
CZK |
Czech Koruna |
|
EGP |
Egypt Pound |
|
EUR |
Euro |
|
HUF |
Hungarian Forint |
27
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
INR |
Indian Rupee |
|
MXN |
Mexican Peso |
|
NGN |
Nigerian Naira |
|
PEN |
Peruvian Nuevo Sol |
|
PHP |
Philippine Peso |
|
PYG |
Paraguayan Guarani |
|
RON |
Romanian New Leu |
|
TRY |
Turkish Lira |
|
UYU |
Uruguayan Peso |
|
ZAR |
South African Rand |
|
Derivative Contracts at 8/31/26 |
||||||
|
Forward Foreign Currency Exchange Contracts |
||||||
|
Currency
Purchased |
Currency
Sold |
Counterparty |
Settlement
Date |
Unrealized
Appreciation
(Depreciation) |
||
|
Asset Derivatives |
||||||
|
CZK |
18,388,265 |
USD |
867,406 |
Citibank N.A. |
10/16/2026 |
$16,909 |
|
EUR |
346,808 |
USD |
397,643 |
Barclays Bank PLC |
10/16/2026 |
5,888 |
|
EUR |
400,145 |
USD |
458,075 |
HSBC Bank |
10/16/2026 |
7,516 |
|
EUR |
544,413 |
USD |
624,443 |
JPMorgan Chase Bank N.A. |
10/16/2026 |
9,013 |
|
EUR |
429,231 |
USD |
490,012 |
State Street Corp. |
10/16/2026 |
9,423 |
|
EUR |
705,269 |
USD |
814,927 |
UBS AG |
10/16/2026 |
5,694 |
|
HUF |
10,107,743 |
USD |
31,439 |
HSBC Bank |
10/16/2026 |
647 |
|
HUF |
183,940,428 |
USD |
579,060 |
Merrill Lynch International |
10/16/2026 |
4,835 |
|
HUF |
87,621,603 |
USD |
277,630 |
State Street Corp. |
10/16/2026 |
513 |
|
INR |
83,538,023 |
USD |
873,527 |
JPMorgan Chase Bank N.A. |
10/09/2026 |
1,816 |
|
MXN |
12,480,064 |
USD |
721,110 |
Deutsche Bank AG |
10/16/2026 |
10,583 |
|
MXN |
4,678,238 |
USD |
273,313 |
State Street Corp. |
10/16/2026 |
967 |
|
RON |
2,550,518 |
USD |
559,663 |
UBS AG |
10/16/2026 |
2,430 |
|
TRY |
21,014,861 |
USD |
417,508 |
BNP Paribas |
10/16/2026 |
3,085 |
|
TRY |
33,942,218 |
USD |
670,126 |
Citibank N.A. |
10/16/2026 |
9,196 |
|
ZAR |
711,947 |
USD |
42,912 |
Deutsche Bank AG |
10/16/2026 |
1,150 |
|
ZAR |
9,688,234 |
USD |
588,014 |
HSBC Bank |
10/16/2026 |
11,593 |
|
ZAR |
6,907,073 |
USD |
427,297 |
State Street Corp. |
10/16/2026 |
183 |
|
USD |
715,441 |
PHP |
43,971,000 |
JPMorgan Chase Bank N.A. |
11/05/2026 |
10,269 |
|
$111,710 |
||||||
|
Liability Derivatives |
||||||
|
BRL |
3,706,203 |
USD |
706,480 |
Barclays Bank PLC |
11/24/2026 |
$(3,424 ) |
|
EUR |
864,180 |
USD |
1,011,450 |
BNP Paribas |
10/16/2026 |
(5,927 ) |
|
EUR |
612,043 |
USD |
715,648 |
HSBC Bank |
10/16/2026 |
(3,500 ) |
|
EUR |
488,719 |
USD |
571,546 |
NatWest Markets PLC |
10/16/2026 |
(2,894 ) |
|
EUR |
535,913 |
USD |
626,030 |
State Street Corp. |
10/16/2026 |
(2,464 ) |
|
USD |
1,345,440 |
COP |
4,417,752,653 |
Goldman Sachs International |
10/30/2026 |
(8,848 ) |
|
USD |
11,166,498 |
EUR |
9,723,802 |
Deutsche Bank AG |
10/16/2026 |
(147,704 ) |
|
USD |
1,533,196 |
EUR |
1,344,641 |
HSBC Bank |
10/16/2026 |
(31,371 ) |
|
USD |
1,015,477 |
EUR |
885,247 |
JPMorgan Chase Bank N.A. |
10/16/2026 |
(14,559 ) |
|
USD |
282,415 |
EUR |
246,720 |
State Street Corp. |
10/16/2026 |
(4,658 ) |
|
USD |
848,194 |
HUF |
269,702,550 |
HSBC Bank |
10/16/2026 |
(7,941 ) |
|
USD |
892,299 |
HUF |
283,831,408 |
Merrill Lynch International |
10/16/2026 |
(8,686 ) |
|
USD |
287,926 |
INR |
27,971,942 |
JPMorgan Chase Bank N.A. |
10/09/2026 |
(5,175 ) |
|
USD |
399,607 |
PEN |
1,366,312 |
Goldman Sachs International |
10/22/2026 |
(5,759 ) |
|
USD |
554,176 |
RON |
2,550,518 |
Deutsche Bank AG |
10/16/2026 |
(7,917 ) |
|
USD |
420,304 |
ZAR |
6,970,848 |
Deutsche Bank AG |
10/16/2026 |
(11,124 ) |
|
USD |
1,479,935 |
ZAR |
24,481,579 |
State Street Corp. |
10/16/2026 |
(35,235 ) |
|
$(307,186 ) |
||||||
28
MFS Diversified Income Fund
Portfolio of Investments (unaudited) – continued
|
Futures Contracts |
||||||
|
Description |
Long/
Short |
Currency |
Contracts |
Notional
Amount |
Expiration
Date |
Value/Unrealized
Appreciation
(Depreciation) |
|
Asset Derivatives |
||||||
|
Interest Rate Futures |
||||||
|
Euro-Bund 10 yr |
Short |
EUR |
78 |
$11,167,467 |
September – 2026 |
$263,912 |
|
U.S. Treasury Bond 30 yr |
Long |
USD |
3 |
325,875 |
December – 2026 |
762 |
|
U.S. Treasury Ultra Note 10 yr |
Short |
USD |
82 |
8,972,594 |
December – 2026 |
21,721 |
|
$286,395 |
||||||
|
Liability Derivatives |
||||||
|
Interest Rate Futures |
||||||
|
U.S. Treasury Note 10 yr |
Long |
USD |
87 |
$9,366,094 |
December – 2026 |
$(23,150 ) |
|
U.S. Treasury Note 2 yr |
Long |
USD |
366 |
75,115,782 |
December – 2026 |
(144,858 ) |
|
U.S. Treasury Note 5 yr |
Long |
USD |
293 |
30,971,016 |
December – 2026 |
(131,514 ) |
|
U.S. Treasury Ultra Bond 30 yr |
Long |
USD |
18 |
1,980,562 |
December – 2026 |
(10,670 ) |
|
$(310,192 ) |
||||||
|
Cleared Swap Agreements |
||||||||
|
Maturity
Date |
Notional
Amount |
Counterparty |
Cash Flows
to Receive/
Frequency |
Cash Flows
to Pay/
Frequency |
Unrealized
Appreciation
(Depreciation) |
Net
Unamortized
Upfront
Payments
(Receipts) |
Value |
|
|
Liability Derivatives |
||||||||
|
Interest Rate Swaps |
||||||||
|
5/01/28 |
USD |
19,850,000 |
centrally cleared |
1-day SOFR / Annually |
3.719% / Annually |
$241,887 |
$— |
$241,887 |
|
8/31/28 |
USD |
31,625,000 |
centrally cleared |
1-day SOFR / Annually |
4.089% / Annually |
74,401 |
— |
74,401 |
|
1/09/29 |
USD |
9,850,000 |
centrally cleared |
1-day SOFR / Annually |
3.35% / Annually |
205,915 |
— |
205,915 |
|
4/30/29 |
USD |
9,960,000 |
centrally cleared |
1-day SOFR / Annually |
3.637% / Annually |
144,321 |
— |
144,321 |
|
1/14/31 |
USD |
5,904,000 |
centrally cleared |
1-day SOFR / Annually |
3.511% / Annually |
171,849 |
— |
171,849 |
|
6/12/33 |
USD |
4,785,000 |
centrally cleared |
1-day SOFR / Annually |
4.036% / Annually |
61,858 |
— |
61,858 |
|
$900,231 |
$— |
$900,231 |
||||||
At August 31, 2026, the fund had liquid securities collateral with an aggregate value of $2,591,151 to cover any collateral or margin obligations for certain derivative contracts.
See Notes to Financial Statements
29
MFS Diversified Income Fund
Financial Statements | Statement of Assets and Liabilities
This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.
|
At 8/31/26 (unaudited) Assets |
|
|
Investments in unaffiliated issuers, at value, including $1,462,931 of securities on loan (identified cost, $1,189,211,761) |
$1,321,880,438 |
|
Investments in affiliated issuers, at value (identified cost, $432,113,876) |
441,708,344 |
|
Cash |
754,368 |
|
Foreign currency, at value (identified cost, $47,379) |
47,395 |
|
Receivables for |
|
|
Net daily variation margin on open cleared swap agreements |
109,107 |
|
Forward foreign currency exchange contracts |
111,710 |
|
Net daily variation margin on open futures contracts |
6,536 |
|
Investments sold |
5,958,558 |
|
TBA sale commitments |
445,696 |
|
Fund shares sold |
321,711 |
|
Interest and dividends |
10,118,749 |
|
Other assets |
52,403 |
|
Total assets |
$1,781,515,015 |
|
Liabilities |
|
|
Payables for |
|
|
Distributions |
$586,944 |
|
Forward foreign currency exchange contracts |
307,186 |
|
Investments purchased |
4,721,575 |
|
TBA purchase commitments |
1,326,566 |
|
Fund shares reacquired |
2,865,260 |
|
Payable to affiliates |
|
|
Investment adviser |
9,500 |
|
Administrative services fee |
2,738 |
|
Shareholder servicing costs |
417,380 |
|
Distribution and service fees |
34,441 |
|
Accrued expenses and other liabilities |
228,575 |
|
Total liabilities |
$10,500,165 |
|
Net assets |
$1,771,014,850 |
|
Net assets consist of |
|
|
Paid-in capital |
$1,645,531,010 |
|
Total distributable earnings (loss) |
125,483,840 |
|
Net assets |
$1,771,014,850 |
|
Shares of beneficial interest outstanding |
137,750,409 |
|
Net assets |
Shares
outstanding |
Net asset value
per share (a) |
|
|
Class A |
$1,041,659,495 |
81,010,021 |
$12.86 |
|
Class C |
52,198,652 |
4,060,926 |
12.85 |
|
Class I |
489,682,627 |
38,097,633 |
12.85 |
|
Class R1 |
209,124 |
16,279 |
12.85 |
|
Class R2 |
787,792 |
61,293 |
12.85 |
|
Class R3 |
1,985,631 |
154,300 |
12.87 |
|
Class R4 |
1,721,107 |
133,859 |
12.86 |
|
Class R6 |
182,770,422 |
14,216,098 |
12.86 |
|
(a) |
Maximum offering price per share was equal to the net asset value per share for all share classes, except for Class A, for which the maximum offering price per share was $13.43 [100 / 95.75 x $12.86]. On sales of $100,000 or more, the maximum offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A and Class C shares. Redemption price per share was equal to the net asset value per share for Classes I, R1, R2, R3, R4, and R6. |
See Notes to Financial Statements
30
MFS Diversified Income Fund
Financial Statements | Statement of Operations
This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.
|
Six months ended 8/31/26 (unaudited) Net investment income (loss) |
|
|
Income |
|
|
Interest |
$20,123,475 |
|
Dividends from affiliated issuers |
17,091,823 |
|
Dividends from unaffiliated issuers |
12,998,255 |
|
Other |
28,088 |
|
Income on securities loaned |
11,243 |
|
Foreign taxes withheld |
(432,811 ) |
|
Total investment income |
$49,820,073 |
|
Expenses |
|
|
Management fee |
$5,002,762 |
|
Distribution and service fees |
1,630,209 |
|
Shareholder servicing costs |
859,271 |
|
Administrative services fee |
127,936 |
|
Independent Trustees' compensation |
18,810 |
|
Custodian fee |
130,184 |
|
Shareholder communications |
51,168 |
|
Audit and tax fees |
49,910 |
|
Legal fees |
4,521 |
|
Miscellaneous |
122,873 |
|
Total expenses |
$7,997,644 |
|
Fees paid indirectly |
(883 ) |
|
Reduction of expenses by investment adviser and distributor |
(628,155 ) |
|
Net expenses |
$7,368,606 |
|
Net investment income (loss) |
$42,451,467 |
|
Realized and unrealized gain (loss) |
|
|
Realized gain (loss) (identified cost basis) |
|
|
Unaffiliated issuers |
$37,589,048 |
|
Affiliated issuers |
(466,639 ) |
|
Futures contracts |
(2,650,564 ) |
|
Swap agreements |
211,095 |
|
Forward foreign currency exchange contracts |
(76,993 ) |
|
Foreign currency |
(85,134 ) |
|
Net realized gain (loss) |
$34,520,813 |
|
Change in unrealized appreciation or depreciation |
|
|
Unaffiliated issuers (includes $47,500 decrease in deferred foreign capital gains tax) |
$(37,690,427 ) |
|
Affiliated issuers |
(10,447,999 ) |
|
Futures contracts |
(173,511 ) |
|
Swap agreements |
1,027,672 |
|
Forward foreign currency exchange contracts |
(23,065 ) |
|
Translation of assets and liabilities in foreign currencies |
(46,277 ) |
|
Net unrealized gain (loss) |
$(47,353,607 ) |
|
Net realized and unrealized gain (loss) |
$(12,832,794 ) |
|
Change in net assets from operations |
$29,618,673 |
See Notes to Financial Statements
31
MFS Diversified Income Fund
Financial Statements | Statements of Changes in Net Assets
These statements describe the increases and/or decreases in net assets resulting from operations, any distributions, and any shareholder transactions.
|
Six months ended |
Year ended |
|
|
(unaudited) |
|
|
|
Change in net assets |
||
|
From operations |
||
|
Net investment income (loss) |
$42,451,467 |
$83,744,143 |
|
Net realized gain (loss) |
34,520,813 |
32,670,533 |
|
Net unrealized gain (loss) |
(47,353,607 ) |
81,464,381 |
|
Change in net assets from operations |
$29,618,673 |
$197,879,057 |
|
Total distributions to shareholders |
$(43,834,857 ) |
$(106,781,199 ) |
|
Change in net assets from fund share transactions |
$(92,265,240 ) |
$(227,526,942 ) |
|
Total change in net assets |
$(106,481,424 ) |
$(136,429,084 ) |
|
Net assets |
||
|
At beginning of period |
1,877,496,274 |
2,013,925,358 |
|
At end of period |
$1,771,014,850 |
$1,877,496,274 |
See Notes to Financial Statements
32
MFS Diversified Income Fund
Financial Statements | Financial Highlights
The financial highlights table is intended to help you understand the fund's financial performance for the semiannual period and the past 5 fiscal years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
|
Class A |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$12.95 |
$12.33 |
$11.88 |
$11.48 |
$12.91 |
$13.14 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.30 |
$0.54 |
$0.52 |
$0.47 |
$0.41 |
$0.38 |
|
Net realized and unrealized gain (loss) |
(0.08 ) |
0.77 |
0.48 |
0.36 |
(1.31 ) |
0.07 |
|
Total from investment operations |
$0.22 |
$1.31 |
$1.00 |
$0.83 |
$(0.90 ) |
$0.45 |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$(0.31 ) |
$(0.69 ) |
$(0.55 ) |
$(0.43 ) |
$(0.38 ) |
$(0.41 ) |
|
From net realized gain |
— |
— |
— |
— |
(0.15 ) |
(0.27 ) |
|
Total distributions declared to shareholders |
$(0.31 ) |
$(0.69 ) |
$(0.55 ) |
$(0.43 ) |
$(0.53 ) |
$(0.68 ) |
|
Net asset value, end of period (x) |
$12.86 |
$12.95 |
$12.33 |
$11.88 |
$11.48 |
$12.91 |
|
Total return (%) (r)(s)(t)(x) |
1.70 (n) |
11.00 |
8.52 |
7.40 |
(6.96 ) |
3.22 |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions (f)(h) |
0.96 (a) |
0.95 |
0.96 |
0.95 |
0.97 |
0.99 |
|
Expenses after expense reductions (f)(h) |
0.89 (a) |
0.89 |
0.89 |
0.89 |
0.93 |
0.98 |
|
Net investment income (loss) |
4.59 (a) |
4.34 |
4.23 |
4.11 |
3.46 |
2.78 |
|
Portfolio turnover rate |
22 (n) |
43 |
48 |
60 |
62 |
72 |
|
Net assets at end of period (000 omitted) |
$1,041,659 |
$1,100,504 |
$1,147,997 |
$1,220,302 |
$1,300,451 |
$1,563,027 |
See Notes to Financial Statements
33
MFS Diversified Income Fund
Financial Highlights - continued
|
Class C |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$12.94 |
$12.32 |
$11.87 |
$11.47 |
$12.91 |
$13.14 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.25 |
$0.45 |
$0.43 |
$0.39 |
$0.32 |
$0.28 |
|
Net realized and unrealized gain (loss) |
(0.08 ) |
0.77 |
0.47 |
0.35 |
(1.32 ) |
0.06 |
|
Total from investment operations |
$0.17 |
$1.22 |
$0.90 |
$0.74 |
$(1.00 ) |
$0.34 |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$(0.26 ) |
$(0.60 ) |
$(0.45 ) |
$(0.34 ) |
$(0.29 ) |
$(0.30 ) |
|
From net realized gain |
— |
— |
— |
— |
(0.15 ) |
(0.27 ) |
|
Total distributions declared to shareholders |
$(0.26 ) |
$(0.60 ) |
$(0.45 ) |
$(0.34 ) |
$(0.44 ) |
$(0.57 ) |
|
Net asset value, end of period (x) |
$12.85 |
$12.94 |
$12.32 |
$11.87 |
$11.47 |
$12.91 |
|
Total return (%) (r)(s)(t)(x) |
1.32 (n) |
10.18 |
7.71 |
6.61 |
(7.74 ) |
2.44 |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions (f)(h) |
1.71 (a) |
1.70 |
1.70 |
1.70 |
1.72 |
1.74 |
|
Expenses after expense reductions (f)(h) |
1.64 (a) |
1.64 |
1.64 |
1.64 |
1.69 |
1.73 |
|
Net investment income (loss) |
3.84 (a) |
3.62 |
3.51 |
3.40 |
2.71 |
2.05 |
|
Portfolio turnover rate |
22 (n) |
43 |
48 |
60 |
62 |
72 |
|
Net assets at end of period (000 omitted) |
$52,199 |
$60,503 |
$87,071 |
$139,682 |
$220,775 |
$355,639 |
|
Class I |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$12.95 |
$12.32 |
$11.87 |
$11.47 |
$12.91 |
$13.14 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.31 |
$0.57 |
$0.55 |
$0.50 |
$0.44 |
$0.41 |
|
Net realized and unrealized gain (loss) |
(0.09 ) |
0.78 |
0.48 |
0.36 |
(1.32 ) |
0.07 |
|
Total from investment operations |
$0.22 |
$1.35 |
$1.03 |
$0.86 |
$(0.88 ) |
$0.48 |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$(0.32 ) |
$(0.72 ) |
$(0.58 ) |
$(0.46 ) |
$(0.41 ) |
$(0.44 ) |
|
From net realized gain |
— |
— |
— |
— |
(0.15 ) |
(0.27 ) |
|
Total distributions declared to shareholders |
$(0.32 ) |
$(0.72 ) |
$(0.58 ) |
$(0.46 ) |
$(0.56 ) |
$(0.71 ) |
|
Net asset value, end of period (x) |
$12.85 |
$12.95 |
$12.32 |
$11.87 |
$11.47 |
$12.91 |
|
Total return (%) (r)(s)(t)(x) |
1.75 (n) |
11.37 |
8.79 |
7.67 |
(6.81 ) |
3.47 |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions (f)(h) |
0.71 (a) |
0.70 |
0.71 |
0.70 |
0.72 |
0.74 |
|
Expenses after expense reductions (f)(h) |
0.64 (a) |
0.64 |
0.64 |
0.64 |
0.69 |
0.73 |
|
Net investment income (loss) |
4.84 (a) |
4.59 |
4.48 |
4.37 |
3.70 |
3.03 |
|
Portfolio turnover rate |
22 (n) |
43 |
48 |
60 |
62 |
72 |
|
Net assets at end of period (000 omitted) |
$489,683 |
$514,348 |
$558,991 |
$664,290 |
$816,791 |
$1,145,617 |
See Notes to Financial Statements
34
MFS Diversified Income Fund
Financial Highlights - continued
|
Class R1 |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$12.94 |
$12.32 |
$11.87 |
$11.46 |
$12.90 |
$13.13 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.25 |
$0.44 |
$0.42 |
$0.39 |
$0.32 |
$0.28 |
|
Net realized and unrealized gain (loss) |
(0.08 ) |
0.78 |
0.48 |
0.36 |
(1.32 ) |
0.06 |
|
Total from investment operations |
$0.17 |
$1.22 |
$0.90 |
$0.75 |
$(1.00 ) |
$0.34 |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$(0.26 ) |
$(0.60 ) |
$(0.45 ) |
$(0.34 ) |
$(0.29 ) |
$(0.30 ) |
|
From net realized gain |
— |
— |
— |
— |
(0.15 ) |
(0.27 ) |
|
Total distributions declared to shareholders |
$(0.26 ) |
$(0.60 ) |
$(0.45 ) |
$(0.34 ) |
$(0.44 ) |
$(0.57 ) |
|
Net asset value, end of period (x) |
$12.85 |
$12.94 |
$12.32 |
$11.87 |
$11.46 |
$12.90 |
|
Total return (%) (r)(s)(t)(x) |
1.32 (n) |
10.19 |
7.72 |
6.70 |
(7.75 ) |
2.44 |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions (f)(h) |
1.71 (a) |
1.70 |
1.70 |
1.70 |
1.72 |
1.74 |
|
Expenses after expense reductions (f)(h) |
1.64 (a) |
1.64 |
1.64 |
1.64 |
1.69 |
1.73 |
|
Net investment income (loss) |
3.85 (a) |
3.57 |
3.47 |
3.36 |
2.70 |
2.03 |
|
Portfolio turnover rate |
22 (n) |
43 |
48 |
60 |
62 |
72 |
|
Net assets at end of period (000 omitted) |
$209 |
$215 |
$189 |
$178 |
$180 |
$225 |
|
Class R2 |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$12.95 |
$12.32 |
$11.88 |
$11.47 |
$12.91 |
$13.14 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.28 |
$0.51 |
$0.49 |
$0.45 |
$0.38 |
$0.34 |
|
Net realized and unrealized gain (loss) |
(0.09 ) |
0.78 |
0.47 |
0.36 |
(1.32 ) |
0.07 |
|
Total from investment operations |
$0.19 |
$1.29 |
$0.96 |
$0.81 |
$(0.94 ) |
$0.41 |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$(0.29 ) |
$(0.66 ) |
$(0.52 ) |
$(0.40 ) |
$(0.35 ) |
$(0.37 ) |
|
From net realized gain |
— |
— |
— |
— |
(0.15 ) |
(0.27 ) |
|
Total distributions declared to shareholders |
$(0.29 ) |
$(0.66 ) |
$(0.52 ) |
$(0.40 ) |
$(0.50 ) |
$(0.64 ) |
|
Net asset value, end of period (x) |
$12.85 |
$12.95 |
$12.32 |
$11.88 |
$11.47 |
$12.91 |
|
Total return (%) (r)(s)(t)(x) |
1.50 (n) |
10.82 |
8.16 |
7.23 |
(7.28 ) |
2.96 |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions (f)(h) |
1.21 (a) |
1.20 |
1.21 |
1.20 |
1.22 |
1.24 |
|
Expenses after expense reductions (f)(h) |
1.14 (a) |
1.14 |
1.14 |
1.14 |
1.18 |
1.23 |
|
Net investment income (loss) |
4.34 (a) |
4.09 |
3.99 |
3.88 |
3.21 |
2.53 |
|
Portfolio turnover rate |
22 (n) |
43 |
48 |
60 |
62 |
72 |
|
Net assets at end of period (000 omitted) |
$788 |
$855 |
$883 |
$997 |
$1,289 |
$1,647 |
See Notes to Financial Statements
35
MFS Diversified Income Fund
Financial Highlights - continued
|
Class R3 |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$12.96 |
$12.33 |
$11.88 |
$11.48 |
$12.92 |
$13.15 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.30 |
$0.54 |
$0.52 |
$0.48 |
$0.41 |
$0.38 |
|
Net realized and unrealized gain (loss) |
(0.08 ) |
0.78 |
0.48 |
0.35 |
(1.32 ) |
0.07 |
|
Total from investment operations |
$0.22 |
$1.32 |
$1.00 |
$0.83 |
$(0.91 ) |
$0.45 |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$(0.31 ) |
$(0.69 ) |
$(0.55 ) |
$(0.43 ) |
$(0.38 ) |
$(0.41 ) |
|
From net realized gain |
— |
— |
— |
— |
(0.15 ) |
(0.27 ) |
|
Total distributions declared to shareholders |
$(0.31 ) |
$(0.69 ) |
$(0.55 ) |
$(0.43 ) |
$(0.53 ) |
$(0.68 ) |
|
Net asset value, end of period (x) |
$12.87 |
$12.96 |
$12.33 |
$11.88 |
$11.48 |
$12.92 |
|
Total return (%) (r)(s)(t)(x) |
1.70 (n) |
11.09 |
8.52 |
7.40 |
(7.04 ) |
3.21 |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions (f)(h) |
0.96 (a) |
0.95 |
0.96 |
0.95 |
0.97 |
0.99 |
|
Expenses after expense reductions (f)(h) |
0.89 (a) |
0.89 |
0.89 |
0.89 |
0.93 |
0.98 |
|
Net investment income (loss) |
4.60 (a) |
4.34 |
4.25 |
4.19 |
3.45 |
2.78 |
|
Portfolio turnover rate |
22 (n) |
43 |
48 |
60 |
62 |
72 |
|
Net assets at end of period (000 omitted) |
$1,986 |
$7,410 |
$7,885 |
$10,443 |
$21,712 |
$22,253 |
|
Class R4 |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$12.95 |
$12.33 |
$11.88 |
$11.48 |
$12.92 |
$13.15 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.32 |
$0.59 |
$0.55 |
$0.49 |
$0.44 |
$0.42 |
|
Net realized and unrealized gain (loss) |
(0.09 ) |
0.75 |
0.48 |
0.37 |
(1.32 ) |
0.06 |
|
Total from investment operations |
$0.23 |
$1.34 |
$1.03 |
$0.86 |
$(0.88 ) |
$0.48 |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$(0.32 ) |
$(0.72 ) |
$(0.58 ) |
$(0.46 ) |
$(0.41 ) |
$(0.44 ) |
|
From net realized gain |
— |
— |
— |
— |
(0.15 ) |
(0.27 ) |
|
Total distributions declared to shareholders |
$(0.32 ) |
$(0.72 ) |
$(0.58 ) |
$(0.46 ) |
$(0.56 ) |
$(0.71 ) |
|
Net asset value, end of period (x) |
$12.86 |
$12.95 |
$12.33 |
$11.88 |
$11.48 |
$12.92 |
|
Total return (%) (r)(s)(t)(x) |
1.83 (n) |
11.28 |
8.79 |
7.67 |
(6.80 ) |
3.47 |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions (f)(h) |
0.71 (a) |
0.70 |
0.71 |
0.69 |
0.72 |
0.74 |
|
Expenses after expense reductions (f)(h) |
0.64 (a) |
0.64 |
0.64 |
0.64 |
0.69 |
0.73 |
|
Net investment income (loss) |
4.90 (a) |
4.85 |
4.47 |
4.27 |
3.71 |
3.05 |
|
Portfolio turnover rate |
22 (n) |
43 |
48 |
60 |
62 |
72 |
|
Net assets at end of period (000 omitted) |
$1,721 |
$2,706 |
$17,456 |
$16,613 |
$4,146 |
$5,995 |
See Notes to Financial Statements
36
MFS Diversified Income Fund
Financial Highlights - continued
|
Class R6 |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$12.95 |
$12.33 |
$11.88 |
$11.48 |
$12.91 |
$13.14 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.32 |
$0.58 |
$0.56 |
$0.51 |
$0.45 |
$0.42 |
|
Net realized and unrealized gain (loss) |
(0.08 ) |
0.77 |
0.48 |
0.36 |
(1.31 ) |
0.07 |
|
Total from investment operations |
$0.24 |
$1.35 |
$1.04 |
$0.87 |
$(0.86 ) |
$0.49 |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$(0.33 ) |
$(0.73 ) |
$(0.59 ) |
$(0.47 ) |
$(0.42 ) |
$(0.45 ) |
|
From net realized gain |
— |
— |
— |
— |
(0.15 ) |
(0.27 ) |
|
Total distributions declared to shareholders |
$(0.33 ) |
$(0.73 ) |
$(0.59 ) |
$(0.47 ) |
$(0.57 ) |
$(0.72 ) |
|
Net asset value, end of period (x) |
$12.86 |
$12.95 |
$12.33 |
$11.88 |
$11.48 |
$12.91 |
|
Total return (%) (r)(s)(t)(x) |
1.87 (n) |
11.38 |
8.88 |
7.77 |
(6.64 ) |
3.57 |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions (f)(h) |
0.62 (a) |
0.61 |
0.62 |
0.61 |
0.63 |
0.65 |
|
Expenses after expense reductions (f)(h) |
0.55 (a) |
0.55 |
0.55 |
0.55 |
0.59 |
0.64 |
|
Net investment income (loss) |
4.93 (a) |
4.67 |
4.57 |
4.45 |
3.79 |
3.12 |
|
Portfolio turnover rate |
22 (n) |
43 |
48 |
60 |
62 |
72 |
|
Net assets at end of period (000 omitted) |
$182,770 |
$190,956 |
$193,454 |
$209,338 |
$223,996 |
$260,384 |
|
(a) |
Annualized. |
|
(d) |
Per share data is based on average shares outstanding. |
|
(f) |
Ratios do not reflect reductions from fees paid indirectly, if applicable. See Note 2 in the Notes to Financial Statements for additional information. |
|
(h) |
In addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying affiliated funds in which the fund invests. Accordingly, the expense ratio for the fund reflects only those fees and expenses borne directly by the fund. Because the underlying affiliated funds have varied expense and fee levels and the fund may own different proportions of the underlying affiliated funds at different times, the amount of fees and expenses incurred indirectly by the fund will vary. |
|
(n) |
Not annualized. |
|
(r) |
Certain expenses have been reduced without which performance would have been lower. |
|
(s) |
From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
|
(t) |
Total returns do not include any applicable sales charges. |
|
(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. |
See Notes to Financial Statements
37
MFS Diversified Income Fund
Notes to Financial Statements (unaudited)
(1) Business and Organization
MFS Diversified Income Fund (the fund) is a diversified series of MFS Series Trust XIII (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company.
The fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies.
(2) Significant Accounting Policies
General — The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued.
The fund invests in the MFS High Yield Pooled Portfolio (“High Yield Pooled Portfolio”). MFS does not receive a management fee from the High Yield Pooled Portfolio. The High Yield Pooled Portfolio’s investment objective is to seek total return with an emphasis on high current income, but also considering capital appreciation. The accounting policies of the High Yield Pooled Portfolio are outlined in its financial statements, which is available without charge by calling 1-800-225-2606 and on the Securities and Exchange Commission (SEC) web site at http://www.sec.gov. The accounting policies detailed in the Significant Accounting Policies note cover both the fund and the High Yield Pooled Portfolio. For purposes of this policy disclosure, “fund” refers to both the fund and the High Yield Pooled Portfolio in which the fund invests. The High Yield Pooled Portfolio’s financial statements are not covered by this report. The fund and the High Yield Pooled Portfolio invest in high-yield securities rated below investment grade. Investments in below investment grade quality securities can involve a substantially greater risk of default or can already be in default, and their values can decline significantly. Below investment grade quality securities tend to be more sensitive to adverse news about the issuer, or the market or economy in general, than higher quality debt instruments. The fund and the High Yield Pooled Portfolio invest in foreign securities. Investments in foreign securities are vulnerable to the effects of changes in the relative values of the local currency and the U.S. dollar and to the effects of changes in each country’s market, economic, industrial, political, regulatory, geopolitical, environmental, public health, and other conditions. The fund invests a significant amount of its net assets in U.S. and foreign real estate related investments and as a result is subject to certain risks associated with the direct ownership of real estate and the real estate industry in general. These include risks related to general, regional and local economic conditions; difficulties in valuing and disposing of real estate; fluctuations in interest rates and property tax rates, shifts in zoning laws, environmental regulations and other governmental action; cash flow dependency; increased operating expenses; lack of availability of mortgage funds; losses due to natural disasters; overbuilding; losses due to casualty or condemnation; changes in property values and rental rates; the management skill and creditworthiness of the manager; and other factors. The fund invests in emerging market issuers. Investments tied economically to emerging markets, especially frontier markets, can involve additional and greater risks than the risks associated with investments in developed markets. Emerging markets can have less developed markets, greater custody and operational risk, less developed legal, regulatory, and accounting systems, greater government involvement in the economy, greater risk of new or inconsistent government treatment of or restrictions on issuers and instruments, and greater political, social, geopolitical, and economic instability than developed markets.
Segment Reporting — An operating segment is defined in FASB Accounting Standards Codification Topic 280, Segment Reporting as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the entity’s chief operating decision maker (CODM) in making resource allocation decisions and assessing segment performance, and for which discrete financial information is available. The fund represents a single operating segment and the Chairman’s Committee of the fund's adviser acts as the segment’s CODM. The fund’s total returns, expense ratios, and changes in net assets which are used by the CODM to assess segment performance and to make resource allocation decisions to the segment are consistent with that presented within the fund’s financial statements.
Balance Sheet Offsetting — The fund's accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement, or similar agreement, does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the fund and the applicable counterparty. The fund's right to setoff
38
MFS Diversified Income Fund
Notes to Financial Statements (unaudited) - continued
may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject. Balance sheet offsetting disclosures, to the extent applicable to the fund, have been included in the fund’s Significant Accounting Policies note under the captions for each of the fund’s in-scope financial instruments and transactions.
Investment Valuations — The investments of the fund and the High Yield Pooled Portfolio are valued as described below.
Subject to its oversight, the fund's Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments to MFS as the fund's adviser, pursuant to the fund’s valuation policy and procedures which have been adopted by the adviser and approved by the Board. In accordance with Rule 2a-5 under the Investment Company Act of 1940, the Board of Trustees designated the adviser as the “valuation designee” of the fund. If the adviser, as valuation designee, determines that reliable market quotations are not readily available for an investment, the investment is valued at fair value as determined in good faith by the adviser in accordance with the adviser’s fair valuation policy and procedures.
Under the fund's valuation policy and procedures, equity securities, including restricted equity securities, are generally valued at the last sale or official closing price on their primary market or exchange as provided by a third-party pricing service. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation on their primary market or exchange as provided by a third-party pricing service. Debt instruments and floating rate loans, including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less may be valued at amortized cost, which approximates market value. Exchange-traded options are generally valued at the last sale or official closing price on their primary exchange as provided by a third-party pricing service. Exchange-traded options for which there were no sales reported that day are generally valued at the last daily bid quotation on their primary exchange as provided by a third-party pricing service. For put options, the position may be valued at the last daily ask quotation if there are no trades reported during the day. Options not traded on an exchange are generally valued at a broker/dealer bid quotation. Foreign currency options are generally valued at valuations provided by a third-party pricing service. Futures contracts are generally valued at last posted settlement price on their primary exchange as provided by a third-party pricing service. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation on their primary exchange as provided by a third-party pricing service. Forward foreign currency exchange contracts are generally valued at the mean of bid and asked prices for the time period interpolated from rates provided by a third-party pricing service for proximate time periods. Swap agreements are generally valued using valuations provided by a third-party pricing service, which for cleared swaps includes an evaluation of any trading activity at the clearinghouses. Open-end investment companies are generally valued at net asset value per share. The values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and asked prices for rates provided by a third-party pricing service.
Under the fund’s valuation policy and procedures, market quotations are not considered to be readily available for debt instruments, floating rate loans, and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services or otherwise determined by the adviser in accordance with the adviser’s fair valuation policy and procedures. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. In determining values, third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, spreads and other market data. Pricing services generally value debt instruments assuming orderly transactions of institutional round lot sizes, but a fund may hold or transact in such securities in smaller, odd lot sizes. In instances where a fund holds an odd lot size position in a debt instrument, such position will typically be valued using the pricing agent’s institutional round lot price for the debt instrument. Odd lots may trade at lower prices than institutional round lots, and the fund may receive different prices when it sells odd lot positions than it would receive for sales of institutional round lot positions. An investment may also be valued at fair value if the adviser determines that the investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halt of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. Events that occur after foreign markets close (such as developments in foreign markets and significant movements in the U.S. markets) and prior to the determination of the fund’s net asset value may be deemed to have a material effect on the value of securities traded in foreign markets. Accordingly, the fund’s foreign equity securities may often be valued at fair value. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s net asset value can differ
39
MFS Diversified Income Fund
Notes to Financial Statements (unaudited) - continued
depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.
Various inputs are used in determining the value of the fund's assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes significant unobservable inputs, which may include the adviser's own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments, such as futures contracts, forward foreign currency exchange contracts, and swap agreements. The following is a summary of the levels used as of August 31, 2026 in valuing the fund's assets and liabilities:
|
Financial Instruments |
Level 1 |
Level 2 |
Level 3 |
Total |
|
Equity Securities: |
||||
|
United States |
$440,614,652 |
$— |
$— |
$440,614,652 |
|
United Kingdom |
1,735,023 |
27,406,841 |
— |
29,141,864 |
|
France |
27,434,234 |
— |
— |
27,434,234 |
|
China |
5,630,314 |
19,801,072 |
— |
25,431,386 |
|
Japan |
15,891,580 |
8,437,566 |
— |
24,329,146 |
|
Italy |
13,327,110 |
— |
— |
13,327,110 |
|
Switzerland |
11,772,165 |
— |
— |
11,772,165 |
|
Canada |
10,417,942 |
— |
— |
10,417,942 |
|
Brazil |
10,328,245 |
— |
— |
10,328,245 |
|
Other Countries |
27,659,617 |
27,201,009 |
— |
54,860,626 |
|
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents |
— |
67,228,646 |
— |
67,228,646 |
|
Non - U.S. Sovereign Debt |
— |
226,910,080 |
— |
226,910,080 |
|
Municipal Bonds |
— |
1,502,999 |
— |
1,502,999 |
|
U.S. Corporate Bonds |
— |
149,056,613 |
— |
149,056,613 |
|
Residential Mortgage-Backed Securities |
— |
111,650,543 |
— |
111,650,543 |
|
Commercial Mortgage-Backed Securities |
— |
6,970,523 |
— |
6,970,523 |
|
Asset-Backed Securities (including CDOs) |
— |
8,950,277 |
— |
8,950,277 |
|
Foreign Bonds |
— |
100,470,154 |
— |
100,470,154 |
|
Purchased Options |
253,575 |
1,229,658 |
— |
1,483,233 |
|
Investment Companies |
441,708,344 |
— |
— |
441,708,344 |
|
Total |
$1,006,772,801 |
$756,815,981 |
$— |
$1,763,588,782 |
|
Other Financial Instruments |
||||
|
Futures Contracts – Assets |
$286,395 |
$— |
$— |
$286,395 |
|
Futures Contracts – Liabilities |
(310,192 ) |
— |
— |
(310,192 ) |
|
Forward Foreign Currency Exchange Contracts – Assets |
— |
111,710 |
— |
111,710 |
|
Forward Foreign Currency Exchange Contracts – Liabilities |
— |
(307,186 ) |
— |
(307,186 ) |
|
Swap Agreements – Liabilities |
— |
900,231 |
— |
900,231 |
For further information regarding security characteristics, see the Portfolio of Investments. Please refer to the High Yield Pooled Portfolio's financial statements for further information regarding the levels used in valuing its assets and liabilities.
The following is a reconciliation of level 3 assets for which significant unobservable inputs were used to determine fair value. The table presents the activity of level 3 securities held at the beginning and the end of the period.
40
MFS Diversified Income Fund
Notes to Financial Statements (unaudited) - continued
|
Equity
Securities |
|
|
Balance as of 2/28/26 |
$0 |
|
Realized gain (loss) |
(4,704,768) |
|
Change in unrealized appreciation or depreciation |
6,264,489 |
|
Sales |
(1,559,721) |
|
Balance as of 8/31/26 |
$— |
Foreign Currency Translation — Purchases and sales of foreign investments, income, and expenses are converted into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions or on the reporting date for foreign denominated receivables and payables. Gains and losses attributable to foreign currency exchange rates on sales of securities are recorded for financial statement purposes as net realized gains and losses on investments. Gains and losses attributable to foreign exchange rate movements on receivables, payables, income and expenses are recorded for financial statement purposes as foreign currency transaction gains and losses. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.
Derivatives — The fund uses derivatives primarily to increase or decrease exposure to a particular market or segment of the market, or security, to increase or decrease interest rate or currency exposure, or as alternatives to direct investments. Derivatives are used for hedging or non-hedging purposes. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. When the fund uses derivatives as an investment to increase market exposure, or for hedging purposes, gains and losses from derivative instruments may be substantially greater than the derivative’s original cost.
The derivative instruments used by the fund during the period were purchased options, futures contracts, forward foreign currency exchange contracts, and swap agreements. Depending on the type of derivative, a fund may exit a derivative position by entering into an offsetting transaction with a counterparty or exchange, negotiating an agreement with the derivative counterparty, or novating the position to a third party. The fund may be unable to promptly close out a futures position in instances where the daily fluctuation in the price for that type of future exceeds the daily limit set by the exchange. The fund's period end derivatives, as presented in the Portfolio of Investments and the associated Derivative Contract tables, generally are indicative of the volume of its derivative activity during the period.
The following table presents, by major type of derivative contract, the fair value, on a gross basis, of the asset and liability components of derivatives held by the fund at August 31, 2026 as reported in the Statement of Assets and Liabilities:
|
Fair Value (a) |
|||
|
Risk |
Derivative Contracts |
Asset Derivatives |
Liability Derivatives |
|
Equity |
Purchased Option Contracts |
$1,483,233 |
$— |
|
Interest Rate |
Futures Contracts |
286,395 |
(310,192) |
|
Foreign Exchange |
Forward Foreign Currency Exchange Contracts |
111,710 |
(307,186) |
|
Interest Rate |
Cleared Swap Agreements |
900,231 |
— |
|
Total |
$2,781,569 |
$(617,378) |
|
(a) The value of purchased options outstanding is included in investments in unaffiliated issuers, at value, within the Statement of Assets and Liabilities. Values presented in this table for futures contracts and cleared swap agreements correspond to the values reported in the Portfolio of Investments. Only the current day net variation margin for futures contracts and cleared swap agreements is reported separately within the Statement of Assets and Liabilities.
The following table presents, by major type of derivative contract, the realized gain (loss) on derivatives held by the fund for the six months ended August 31, 2026 as reported in the Statement of Operations:
|
Risk |
Futures
Contracts |
Swap
Agreements |
Forward Foreign
Currency
Exchange
Contracts |
Unaffiliated Issuers
(Purchased
Options) |
|
Interest Rate |
$(2,650,564 ) |
$211,095 |
$— |
$— |
|
Foreign Exchange |
— |
— |
(76,993 ) |
— |
|
Equity |
— |
— |
— |
756,795 |
|
Credit |
— |
— |
— |
(1,467 ) |
|
Total |
$(2,650,564 ) |
$211,095 |
$(76,993 ) |
$755,328 |
41
MFS Diversified Income Fund
Notes to Financial Statements (unaudited) - continued
The following table presents, by major type of derivative contract, the change in unrealized appreciation or depreciation on derivatives held by the fund for the six months ended August 31, 2026 as reported in the Statement of Operations:
|
Risk |
Futures
Contracts |
Swap
Agreements |
Forward Foreign
Currency
Exchange
Contracts |
Unaffiliated Issuers
(Purchased
Options) |
|
Interest Rate |
$(173,511 ) |
$1,027,672 |
$— |
$— |
|
Foreign Exchange |
— |
— |
(23,065 ) |
— |
|
Equity |
— |
— |
— |
(2,989,659 ) |
|
Credit |
— |
— |
— |
9,546 |
|
Total |
$(173,511 ) |
$1,027,672 |
$(23,065 ) |
$(2,980,113 ) |
Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain, but not all, uncleared derivatives, the fund attempts to reduce its exposure to counterparty credit risk whenever possible by entering into an ISDA Master Agreement on a bilateral basis. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a specified deterioration in the credit quality of the other party. Upon an event of default or a termination of the ISDA Master Agreement, the non-defaulting party has the right to close out all transactions traded under such agreement and to net amounts owed under each agreement to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the fund's credit risk to such counterparty equal to any amounts payable by the fund under the applicable transactions, if any.
Collateral and margin requirements differ by type of derivative. For exchange-traded and cleared derivatives (e.g., futures contracts, cleared swaps, and exchange-traded options), margin requirements are set by the exchange or clearing broker and the clearing house and collateral, in the form of cash or securities, is posted by the fund directly with the exchange or clearing broker. Collateral terms are counterparty agreement specific for uncleared derivatives (e.g., forward foreign currency exchange contracts, uncleared swap agreements, and uncleared options). Collateral, in the form of cash and securities, is held in segregated accounts with the fund's custodian in connection with these agreements. For derivatives traded under an ISDA Master Agreement, which contains a credit support annex, the collateral requirements are netted across all transactions traded under such counterparty-specific agreement and an amount is posted from one party to the other to collateralize such obligations. Cash that has been segregated or delivered to brokers to cover the fund's collateral or margin obligations under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities as cash collateral posted for uncleared derivatives and/or cash pledged for exchange-traded or cleared derivatives. Securities pledged as collateral or margin for the same purpose, if any, are noted in the Portfolio of Investments. The fund may be required to make payments of interest on uncovered collateral or margin obligations with the broker. Any such payments are included in “Miscellaneous” expense in the Statement of Operations.
Purchased Options — The fund purchased call and put options for a premium. Purchased call and put options entitle the holder to buy and sell a specified number of shares or units of a particular security, currency or index at a specified price at a specified date or within a specified period of time. Purchasing call options may hedge against an anticipated increase in the dollar cost of securities or currency to be acquired or increase the fund’s exposure to an underlying instrument. Purchasing put options may hedge against an anticipated decline in the value of portfolio securities or currency or decrease the fund's exposure to an underlying instrument.
A purchased swaption represents an option that gives the fund as purchaser the right, but not the obligation, to enter into a pre-defined interest rate or credit default swap agreement with the counterparty at a specified rate at a specified date or within a specified period of time. The fund enters into swaptions primarily to preserve a return or spread on a particular investment or portion of the fund’s investments, to adjust the fund’s sensitivity to underlying risk factors or to protect against an increase or decrease in the price of securities.
The premium paid is initially recorded as an investment in the Statement of Assets and Liabilities. That investment is subsequently marked-to-market daily with the difference between the premium paid and the market value of the purchased option being recorded as unrealized appreciation or depreciation. Premiums paid for purchased call and put options which have expired are treated as realized losses on investments in the Statement of Operations. Upon the exercise or closing of a purchased call option, the premium paid is added to the cost of the security or financial instrument purchased. Upon the exercise or closing of a purchased put option, the premium paid is offset against the proceeds on the sale of the underlying security or financial instrument in order to determine the realized gain or loss on investments.
42
MFS Diversified Income Fund
Notes to Financial Statements (unaudited) - continued
Whether or not the option is exercised, the fund's maximum risk of loss from purchasing an option is the amount of premium paid. All option contracts involve credit risk if the counterparty to the option contract fails to perform. For uncleared options, this risk is mitigated in cases where there is an ISDA Master Agreement between the fund and the counterparty providing for netting as described above and, where applicable, by the posting of collateral by the counterparty to the fund to cover the fund’s exposure to the counterparty under such ISDA Master Agreement.
Futures Contracts — The fund entered into futures contracts which may be used to hedge against or obtain broad market exposure, interest rate exposure, currency exposure, or to manage duration. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.
Upon entering into a futures contract, the fund is required to deposit with the broker, either in cash or securities, an initial margin in an amount equal to a specified percentage of the notional amount of the contract. Subsequent payments (variation margin) are made or received by the fund each day, depending on the daily fluctuations in the value of the contract, and are recorded for financial statement purposes as unrealized gain or loss by the fund until the contract is closed or expires at which point the gain or loss on futures contracts is realized.
The fund bears the risk of interest rates, exchange rates or securities prices moving unexpectedly, in which case, the fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. While futures contracts may present less counterparty risk to the fund since the contracts are exchange traded and the exchange’s clearinghouse guarantees payments to the broker, there is still counterparty credit risk due to the insolvency of the broker. The fund’s maximum risk of loss due to counterparty credit risk is equal to the margin posted by the fund to the broker plus any gains or minus any losses on the outstanding futures contracts.
Forward Foreign Currency Exchange Contracts — The fund entered into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. These contracts may be used to hedge the fund’s currency risk or for non-hedging purposes. For hedging purposes, the fund may enter into contracts to deliver or receive foreign currency that the fund will receive from or use in its normal investment activities. The fund may also use contracts to hedge against declines in the value of foreign currency denominated securities due to unfavorable exchange rate movements. For non-hedging purposes, the fund may enter into contracts with the intent of changing the relative exposure of the fund’s portfolio of securities to different currencies to take advantage of anticipated exchange rate changes.
Forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any unrealized gains or losses are recorded as a receivable or payable for forward foreign currency exchange contracts until the contract settlement date. On contract settlement date, any gain or loss on the contract is recorded as realized gains or losses on forward foreign currency exchange contracts.
Risks may arise upon entering into these contracts from unanticipated movements in the value of the contract and from the potential inability of counterparties to meet the terms of their contracts. Generally, the fund’s maximum risk due to counterparty credit risk is the unrealized gain on the contract due to the use of Continuous Linked Settlement, a multicurrency cash settlement system for the centralized settlement of foreign transactions. This risk is mitigated in cases where there is an ISDA Master Agreement between the fund and the counterparty providing for netting as described above and, where applicable, by the posting of collateral by the counterparty to the fund to cover the fund’s exposure to the counterparty under such ISDA Master Agreement.
Swap Agreements — The fund entered into swap agreements which generally involve a periodic exchange of cash payments on a net basis, at specified intervals or upon the occurrence of specified events, between the fund and a counterparty. Certain swap agreements may be entered into as a bilateral contract (“uncleared swaps”) while others are required to be centrally cleared (“cleared swaps”).
Both cleared and uncleared swap agreements are marked to market daily. The value of uncleared swap agreements is reported in the Statement of Assets and Liabilities as “Uncleared swaps, at value” which includes any related interest accruals to be paid or received by the fund. For cleared swaps, payments (variation margin) are made or received by the fund each day, depending on the daily fluctuations in the value of the cleared swap, such that only the current day net receivable or payable for variation margin is reported in the Statement of Assets and Liabilities.
For both cleared and uncleared swaps, premiums paid or received at the inception of the agreements are amortized over the term of the agreement as realized gain or loss on swap agreements in the Statement of Operations. The periodic exchange of net cash payments, as well as any liquidation payment received or made upon early termination, are recorded as a realized gain or loss on swap agreements in the Statement of Operations. The change in unrealized appreciation or depreciation on swap agreements in the Statement of Operations reflects the aggregate change over the reporting period in the value of swaps net of any unamortized premiums paid or received.
43
MFS Diversified Income Fund
Notes to Financial Statements (unaudited) - continued
Risks related to swap agreements include the possible lack of a liquid market, unfavorable market and interest rate movements of the underlying instrument and the failure of the counterparty to perform under the terms of the agreements. The fund's maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from/paid to the counterparty over the contract's remaining life, to the extent that the amount is positive. To address counterparty risk, uncleared swap agreements are limited to only highly-rated counterparties. Risk is further reduced by having an ISDA Master Agreement (“ISDA”) between the fund and the counterparty and, where applicable, by the posting of collateral by the counterparty to the fund to cover the fund’s exposure to the counterparty under such ISDA. The fund's counterparty risk due to cleared swaps is mitigated by the fact that the clearinghouse is the counterparty to the transaction and the regulatory requirement safeguards in the event of a clearing broker bankruptcy.
The fund entered into interest rate swap agreements in order to manage its exposure to interest rate fluctuations. Interest rate swap agreements involve the periodic exchange of cash flows, between the fund and a counterparty, based on the difference between two interest rates applied to a notional principal amount. The two interest rates exchanged may either be a fixed rate and a floating rate or two floating rates based on different indices.
Mortgage-Backed/Asset-Backed Securities — The fund invests a significant portion of its assets in asset-backed and/or mortgage-backed securities. For these securities, the value of the debt instrument also depends on the credit quality and adequacy of the underlying assets or collateral as well as whether there is a security interest in the underlying assets or collateral. Enforcing rights, if any, against the underlying assets or collateral may be difficult. U.S. Government securities not supported as to the payment of principal or interest by the U.S. Treasury, such as those issued by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, are subject to greater credit risk than are U.S. Government securities supported by the U.S. Treasury, such as those issued by Ginnie Mae.
Security Loans — Under its Securities Lending Agency Agreement with the fund, JPMorgan Chase and Co., as lending agent, loans the securities of the fund to certain qualified institutions (the “Borrowers”) approved by the fund. Security loans can be terminated at the discretion of either the lending agent or the fund and the related securities must be returned within the earlier of the standard trade settlement period for such securities or within three business days. The loans are collateralized by cash and/or U.S. Treasury and federal agency obligations in an amount typically at least equal to the market value of the securities loaned. On loans collateralized by cash, the cash collateral is invested in a money market fund. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. The lending agent provides the fund with indemnification against Borrower default. In the event of Borrower default, the lending agent will, for the benefit of the fund, either purchase securities identical to those loaned or, when such purchase is commercially impracticable, pay the fund the market value of the loaned securities. In return, the lending agent assumes the fund's rights to the related collateral. If the collateral value is less than the cost to purchase identical securities, the lending agent is responsible for the shortfall, but only to the extent that such shortfall is not due to a decline in collateral value resulting from collateral reinvestment for which the fund bears the risk of loss. At period end, the fund had investment securities on loan, all of which were classified as equity securities in the fund's Portfolio of Investments, with a fair value of $1,462,931. The fair value of the fund's investment securities on loan is presented gross in the Statement of Assets and Liabilities. These loans were collateralized by U.S. Treasury Obligations of $1,543,606 held by the custodian or a triparty custodian. The collateral on securities loaned exceeded the value of securities on loan at period end. A portion of the income generated upon investment of the collateral is remitted to the Borrowers, and the remainder is allocated between the fund and the lending agent. On loans collateralized by U.S. Treasury and/or federal agency obligations, a fee is received from the Borrower, and is allocated between the fund and the lending agent. Income from securities lending is separately reported in the Statement of Operations. The dividend and interest income earned on the securities loaned is accounted for in the same manner as other dividend and interest income.
Indemnifications — Under the fund's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the fund. Additionally, in the normal course of business, the fund enters into agreements with service providers that may contain indemnification clauses. The fund's maximum exposure under these agreements is unknown as this would involve future claims that may be made against the fund that have not yet occurred.
Investment Transactions and Income — Interest income is recorded on the accrual basis. All premium and discount is amortized or accreted for financial statement purposes in accordance with U.S. generally accepted accounting principles. Dividends received in cash are recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded when the fund is informed of the dividend if such information is obtained subsequent to the ex-dividend date. Dividend and interest payments received in additional securities are recorded on the ex-dividend or ex-interest date in an amount equal to the value of the security on such date. Distributions from REITs may be characterized as ordinary income, net capital gain, or a return of capital to the fund. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, estimates are used in reporting the character of income and distributions for financial statement purposes. The fund receives substantial distributions from
44
MFS Diversified Income Fund
Notes to Financial Statements (unaudited) - continued
holdings in REITs. Debt obligations may be placed on non-accrual status or set to accrue at a rate of interest less than the contractual coupon when the collection of all or a portion of interest has become doubtful. Interest income for those debt obligations may be further reduced by the write-off of the related interest receivables when deemed uncollectible.
The fund may receive proceeds from litigation settlements. Any proceeds received from litigation involving portfolio holdings are reflected in the Statement of Operations in realized gain/loss if the security has been disposed of by the fund or in unrealized gain/loss if the security is still held by the fund. Any other proceeds from litigation not related to portfolio holdings are reflected as other income in the Statement of Operations.
Investment transactions are recorded on the trade date. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.
The fund may purchase or sell mortgage-backed securities on a To Be Announced (“TBA”) basis. A TBA transaction is subject to extended settlement and typically does not designate the actual security to be delivered, but instead includes an approximate principal amount. The price of the TBA security and the date that it will be settled are fixed at the time the transaction is negotiated. The value of the security varies with market fluctuations and no interest accrues to the fund until settlement takes place. TBA purchase and sale commitments are held at carrying amount, which approximates fair value and are categorized as level 2 within the fair value hierarchy and included in TBA purchase and TBA sale commitments in the Statement of Assets and Liabilities, as applicable. Losses may arise as a result of changes in the value of the TBA investment prior to settlement date or due to counterparty non-performance.
The fund may also enter into mortgage dollar rolls, typically TBA dollar rolls, in which the fund sells TBA mortgage-backed securities to financial institutions and simultaneously agrees to repurchase similar (same issuer, type and coupon) securities at a later date at an agreed-upon price. During the period between the sale and repurchase, the fund will not be entitled to receive interest and principal payments on the securities sold. The fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. Dollar roll transactions involve the risk that the market value of the securities that the fund is required to purchase may decline below the agreed upon repurchase price of those securities.
The fund may purchase or sell securities on a when-issued or delayed delivery basis. In these extended settlement transactions, the receipt or delivery of the securities by the fund and related payments occur at a future date, usually beyond the customary settlement period. The price of such security and the date that the security will be settled are generally fixed at the time the transaction is negotiated. The value of the security varies with market fluctuations and for debt securities no interest accrues to the fund until settlement takes place. When the fund sells securities on a when-issued or delayed delivery basis, the fund typically owns or has the right to acquire securities equivalent in kind and amount to the securities sold. Purchase and sale commitments for when-issued or delayed delivery securities are held at carrying amount, which approximates fair value and are categorized as level 2 within the fair value hierarchy, and included in When-issued investments purchased and When-issued investments sold in the Statement of Assets and Liabilities, as applicable. Losses may arise due to changes in the value of the underlying securities prior to settlement date or if the counterparty does not perform under the contract’s terms, or if the issuer does not issue the securities.
To mitigate the counterparty credit risk on To Be Announced (“TBA”) transactions, mortgage dollar rolls, and other types of forward settling mortgage-backed and asset-backed security transactions, the fund whenever possible enters into a Master Securities Forward Transaction Agreement (“MSFTA”) on a bilateral basis with each of the counterparties with whom it undertakes a significant volume of transactions. The MSFTA gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a specified deterioration in the credit quality of the other party. Upon an event of default or a termination of the MSFTA, the non-defaulting party has the right to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the MSFTA could result in a reduction of the fund's credit risk to such counterparty equal to any amounts payable by the fund under the applicable transactions, if any.
For mortgage-backed and asset-backed securities traded under a MSFTA, the collateral and margining requirements are contract specific. Collateral amounts across all transactions traded under such agreement are netted and an amount is posted from one party to the other to collateralize such obligations. Cash posted to cover the fund's collateral or margin obligations under a MSFTA, if any, will be reported separately on the Statement of Assets and Liabilities as cash collateral posted. Securities pledged as collateral or margin for the same purpose, if any, are noted in the Portfolio of Investments.
Fees Paid Indirectly — The fund's custody fee may be reduced by a credit earned under an arrangement that measures the value of U.S. dollars deposited with the custodian by the fund. The amount of the credit, for the six months ended August 31, 2026, is shown as a reduction of total expenses in the Statement of Operations.
45
MFS Diversified Income Fund
Notes to Financial Statements (unaudited) - continued
Tax Matters and Distributions — The fund intends to qualify as a regulated investment company, as defined under Subchapter M of the Internal Revenue Code, and to distribute all of its taxable income, including realized capital gains. As a result, no provision for federal income tax is required. The fund’s federal tax returns, when filed, will remain subject to examination by the Internal Revenue Service for generally a three-year period. Management has analyzed the fund’s tax positions taken on federal and state tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability. Foreign taxes, if any, have been accrued by the fund in the accompanying financial statements in accordance with the applicable foreign tax law. Foreign income taxes may be withheld by certain countries in which the fund invests. Additionally, capital gains realized by the fund on securities issued in or by certain foreign countries may be subject to capital gains tax imposed by those countries.
Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no impact on net assets or net asset value per share. Temporary differences which arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future.
Book/tax differences primarily relate to amortization of premium and accretion of discount of debt securities, passive foreign investment companies, wash sale loss deferrals, straddle loss deferrals, and derivative transactions.
The tax character of distributions made during the six months ended August 31, 2026 will be determined at fiscal year end. The tax character of distributions declared to shareholders for the last fiscal year is as follows:
|
Year ended
2/28/26 |
|
|
Ordinary income (including any short-term capital gains) |
$106,781,199 |
The federal tax cost and the tax basis components of distributable earnings were as follows:
|
As of 8/31/26 |
|
|
Cost of investments |
$1,651,317,610 |
|
Gross appreciation |
150,704,073 |
|
Gross depreciation |
(38,432,901 ) |
|
Net unrealized appreciation (depreciation) |
$112,271,172 |
|
As of 2/28/26 |
|
|
Undistributed ordinary income |
10,022,479 |
|
Capital loss carryforwards |
(22,974,268 ) |
|
Other temporary differences |
(8,400,661 ) |
|
Net unrealized appreciation (depreciation) |
161,052,474 |
The aggregate cost above includes prior fiscal year end tax adjustments, if applicable.
As of February 28, 2026, the fund had capital loss carryforwards available to offset future realized gains. These net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses. Such losses are characterized as follows:
|
Short-Term |
$(22,974,268 ) |
Multiple Classes of Shares of Beneficial Interest — The fund offers multiple classes of shares, which differ in their respective distribution and service fees. The fund's income and common expenses are allocated to shareholders based on the value of settled shares outstanding of each class. The fund's realized and unrealized gain (loss) are allocated to shareholders based on the daily net assets of each class. Dividends are declared separately for each class. Differences in per share dividend rates are generally due to differences in separate class expenses. Class C shares will convert to Class A shares approximately eight years after purchase. The fund’s distributions declared to shareholders as reported in the Statements of Changes in Net Assets are presented by class as follows:
46
MFS Diversified Income Fund
Notes to Financial Statements (unaudited) - continued
|
Six months
ended
8/31/26 |
Year
ended
2/28/26 |
|
|
Class A |
$25,357,115 |
$61,035,181 |
|
Class C |
1,132,179 |
3,384,226 |
|
Class I |
12,398,898 |
30,424,798 |
|
Class R1 |
4,094 |
9,472 |
|
Class R2 |
18,150 |
44,245 |
|
Class R3 |
135,673 |
439,674 |
|
Class R4 |
52,091 |
361,126 |
|
Class R6 |
4,736,657 |
11,082,477 |
|
Total |
$43,834,857 |
$106,781,199 |
(3) Transactions with Affiliates
Investment Adviser — The fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to the fund. The management fee is computed daily and paid monthly at the following annual rates based on the fund's average daily net assets:
|
Up to $5 billion |
0.55% |
|
In excess of $5 billion |
0.50% |
MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund's Board of Trustees. MFS has also agreed in writing to waive at least 0.01% of its management fee as part of this agreement. The agreement to waive at least 0.01% of the management fee will continue until modified by the fund's Board of Trustees, but such agreement will continue at least until June 30, 2027. For the six months ended August 31, 2026, this management fee reduction amounted to $125,909, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the six months ended August 31, 2026 was equivalent to an annual effective rate of 0.54% of the fund's average daily net assets.
The investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, certain tax reclaim recovery expenses (including contingency fees and closing agreement expenses), and investment-related expenses (such as fees and expenses associated with investments in investment companies and other similar investment vehicles), such that total fund operating expenses do not exceed the following rates annually of each class’s average daily net assets:
|
Classes |
|||||||
|
A |
C |
I |
R1 |
R2 |
R3 |
R4 |
R6 |
|
0.89% |
1.64% |
0.64% |
1.64% |
1.14% |
0.89% |
0.64% |
0.55% |
This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until June 30, 2028. For the six months ended August 31, 2026, this reduction amounted to $502,198, which is included in the reduction of total expenses in the Statement of Operations.
Distributor — MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, as distributor, received $5,821 for the six months ended August 31, 2026, as its portion of the initial sales charge on sales of Class A shares of the fund.
The Board of Trustees has adopted a distribution plan for certain share classes pursuant to Rule 12b-1 of the Investment Company Act of 1940.
The fund's distribution plan provides that the fund will pay MFD for services provided by MFD and financial intermediaries in connection with the distribution and servicing of certain share classes. One component of the plan is a distribution fee paid to MFD and another component of the plan is a service fee paid to MFD. MFD may subsequently pay all, or a portion, of the distribution and/or service fees to financial intermediaries. The distribution and service fees are computed daily and paid monthly.
47
MFS Diversified Income Fund
Notes to Financial Statements (unaudited) - continued
Distribution Plan Fee Table:
|
Distribution
Fee Rate (d) |
Service
Fee Rate (d) |
Total
Distribution
Plan (d) |
Annual
Effective
Rate (e) |
Distribution
and Service
Fee |
|
|
Class A |
— |
0.25% |
0.25% |
0.25% |
$1,337,447 |
|
Class C |
0.75% |
0.25% |
1.00% |
1.00% |
282,753 |
|
Class R1 |
0.75% |
0.25% |
1.00% |
1.00% |
1,027 |
|
Class R2 |
0.25% |
0.25% |
0.50% |
0.50% |
2,018 |
|
Class R3 |
— |
0.25% |
0.25% |
0.25% |
6,964 |
|
Total Distribution and Service Fees |
$1,630,209 |
(d)
In accordance with the distribution plan for certain classes, the fund pays distribution and/or service fees equal to these annual percentage rates of each
class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting
period. Any rate changes, if applicable, are detailed below.
(e)
The annual effective rates represent actual fees incurred under the distribution plan for the six months ended August 31, 2026 based on each class's average daily net assets. MFD has voluntarily agreed to rebate a portion of each class's 0.25% service fee attributable to accounts for which there is no financial intermediary specified on the account except for accounts attributable to MFS or its affiliates' seed money. For the six months ended August 31, 2026, this rebate amounted to $22 and $26 for Class A and Class R3 shares, respectively, and is included in the reduction of total expenses in the Statement of Operations.
Certain Class A shares are subject to a contingent deferred sales charge (CDSC) in the event of a shareholder redemption within 18 months of purchase. Class C shares are subject to a CDSC in the event of a shareholder redemption within 12 months of purchase. All contingent deferred sales charges are paid to MFD and during the six months ended August 31, 2026, were as follows:
|
Amount |
|
|
Class A |
$2,374 |
|
Class C |
383 |
Shareholder Servicing Agent — MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent calculated as a percentage of the average daily net assets of the fund as determined periodically under the supervision of the fund's Board of Trustees. For the six months ended August 31, 2026, the fee was $101,455, which equated to 0.0112% annually of the fund's average daily net assets. MFSC also receives reimbursement from the fund for out-of-pocket expenses, sub-accounting and other shareholder servicing costs which may be paid to affiliated and unaffiliated service providers. Class R6 shares do not incur sub-accounting fees. For the six months ended August 31, 2026, these out-of-pocket expenses, sub-accounting and other shareholder servicing costs amounted to $757,816.
Administrator — MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to the fund. Under an administrative services agreement, the fund reimburses MFS the costs incurred to provide these services. The fund is charged an annual fixed amount of $17,500 plus a fee based on average daily net assets. The administrative services fee is computed daily and paid monthly. The administrative services fee incurred for the six months ended August 31, 2026 was equivalent to an annual effective rate of 0.0141% of the fund's average daily net assets.
Trustees’ and Officers’ Compensation — The fund pays compensation to independent Trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee chairpersons. Independent Trustees’ compensation is accrued daily and paid subsequent to each Trustee Board meeting. The fund does not pay compensation directly to Trustees or officers of the fund who are also officers of the investment adviser, all of whom receive remuneration from MFS for their services to the fund. Certain officers and Trustees of the fund are officers or directors of MFS, MFD, and MFSC.
Other — The fund invests in the MFS Institutional Money Market Portfolio which is managed by MFS and seeks current income consistent with preservation of capital and liquidity. This money market fund does not pay a management fee to MFS but does incur investment and operating costs.
The fund invests in the MFS High Yield Pooled Portfolio, which is a mutual fund advised by MFS that does not pay management fees to MFS and does not pay distribution and/or service fees to MFD, but does incur investment and operating costs. The fund invests in MFS High Yield Pooled Portfolio to gain exposure to high income debt instruments, rather than investing in high income debt instruments directly. Income earned on this investment is included in “Dividends from affiliated issuers” in the Statement of Operations.
48
MFS Diversified Income Fund
Notes to Financial Statements (unaudited) - continued
The adviser has voluntarily undertaken to reimburse the fund from its own resources on a quarterly basis for the cost of investment research embedded in the cost of the fund’s securities trades. This agreement may be rescinded at any time. For the six months ended August 31, 2026, this reimbursement amounted to $15,668, which is included in “Other” income in the Statement of Operations.
(4) Portfolio Securities
For the six months ended August 31, 2026, purchases and sales of investments, other than short-term obligations and purchased options with an expiration date of less than one year from the time of purchase, were as follows:
|
Purchases |
Sales |
|
|
U.S. Government securities |
$106,204,383 |
$120,091,056 |
|
Non-U.S. Government securities |
291,816,439 |
395,840,009 |
(5) Shares of Beneficial Interest
The fund's Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest. Transactions in fund shares were as follows:
|
Six months ended
8/31/26 |
Year ended
2/28/26 |
|||
|
Shares |
Amount |
Shares |
Amount |
|
|
Shares sold |
||||
|
Class A |
2,158,902 |
$27,631,952 |
5,270,398 |
$65,287,466 |
|
Class C |
116,527 |
1,485,342 |
210,600 |
2,613,608 |
|
Class I |
2,349,729 |
30,107,838 |
5,680,554 |
69,977,514 |
|
Class R1 |
458 |
5,877 |
874 |
10,825 |
|
Class R2 |
2,520 |
32,231 |
5,480 |
67,455 |
|
Class R3 |
70,733 |
894,174 |
88,628 |
1,097,347 |
|
Class R4 |
68,252 |
873,762 |
60,508 |
741,377 |
|
Class R6 |
1,090,874 |
13,957,933 |
2,296,527 |
28,546,192 |
|
5,857,995 |
$74,989,109 |
13,613,569 |
$168,341,784 |
|
|
Shares issued to shareholders
in reinvestment of distributions |
||||
|
Class A |
1,889,795 |
$24,153,812 |
4,672,937 |
$58,135,234 |
|
Class C |
85,455 |
1,091,642 |
262,139 |
3,255,933 |
|
Class I |
786,496 |
10,047,190 |
2,005,660 |
24,934,099 |
|
Class R1 |
320 |
4,085 |
761 |
9,466 |
|
Class R2 |
1,421 |
18,145 |
3,506 |
43,590 |
|
Class R3 |
9,052 |
115,411 |
35,263 |
438,921 |
|
Class R4 |
4,041 |
51,511 |
29,354 |
361,075 |
|
Class R6 |
358,391 |
4,580,952 |
862,318 |
10,728,164 |
|
3,134,971 |
$40,062,748 |
7,871,938 |
$97,906,482 |
|
|
Shares reacquired |
||||
|
Class A |
(7,993,850 ) |
$(102,319,201 ) |
(18,098,120 ) |
$(224,150,180 ) |
|
Class C |
(815,828 ) |
(10,431,147 ) |
(2,865,355 ) |
(35,378,295 ) |
|
Class I |
(4,763,606 ) |
(60,879,865 ) |
(13,320,438 ) |
(164,958,467 ) |
|
Class R1 |
(1,106 ) |
(14,115 ) |
(336 ) |
(4,094 ) |
|
Class R2 |
(8,649 ) |
(110,766 ) |
(14,658 ) |
(179,707 ) |
|
Class R3 |
(497,304 ) |
(6,409,200 ) |
(191,343 ) |
(2,389,228 ) |
|
Class R4 |
(147,404 ) |
(1,861,150 ) |
(1,296,524 ) |
(15,778,466 ) |
|
Class R6 |
(1,976,433 ) |
(25,291,653 ) |
(4,107,773 ) |
(50,936,771 ) |
|
(16,204,180 ) |
$(207,317,097 ) |
(39,894,547 ) |
$(493,775,208 ) |
|
49
MFS Diversified Income Fund
Notes to Financial Statements (unaudited) - continued
|
Six months ended 8/31/26 |
Year ended 2/28/26 |
|||
|
Shares |
Amount |
Shares |
Amount |
|
|
Net change |
||||
|
Class A |
(3,945,153 ) |
$(50,533,437 ) |
(8,154,785 ) |
$(100,727,480 ) |
|
Class C |
(613,846 ) |
(7,854,163 ) |
(2,392,616 ) |
(29,508,754 ) |
|
Class I |
(1,627,381 ) |
(20,724,837 ) |
(5,634,224 ) |
(70,046,854 ) |
|
Class R1 |
(328 ) |
(4,153 ) |
1,299 |
16,197 |
|
Class R2 |
(4,708 ) |
(60,390 ) |
(5,672 ) |
(68,662 ) |
|
Class R3 |
(417,519 ) |
(5,399,615 ) |
(67,452 ) |
(852,960 ) |
|
Class R4 |
(75,111 ) |
(935,877 ) |
(1,206,662 ) |
(14,676,014 ) |
|
Class R6 |
(527,168 ) |
(6,752,768 ) |
(948,928 ) |
(11,662,415 ) |
|
(7,211,214 ) |
$(92,265,240 ) |
(18,409,040 ) |
$(227,526,942 ) |
|
Effective September 29, 2023, purchases of the fund's Class R1 and Class R2 shares were closed to new eligible investors.
(6) Line of Credit
The fund and certain other funds managed by MFS participate in a $1.45 billion unsecured committed line of credit of which $1.2 billion is reserved for use by the fund and certain other MFS U.S. funds. The line of credit is provided by a syndicate of banks under a credit agreement. Borrowings may be made for temporary financing needs. Interest is charged to each fund, based on its borrowings, generally at a rate equal to the highest of 1) Daily Simple SOFR (Secured Overnight Financing Rate), 2) the Federal Funds Effective Rate, or 3) the Overnight Bank Funding Rate, each plus an agreed upon spread. A commitment fee, based on the average daily unused portion of the committed line of credit, is allocated among the participating funds. The line of credit expires on March 11, 2027 unless extended or renewed. In addition, the fund and other funds managed by MFS have established unsecured uncommitted borrowing arrangements with certain banks for temporary financing needs. Interest is charged to each fund, based on its borrowings, at rates equal to customary reference rates plus an agreed upon spread. For the six months ended August 31, 2026, the fund’s commitment fee and interest expense were $4,257 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.
(7) Investments in Affiliated Issuers
An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. The following were affiliated issuers for the six months ended August 31, 2026:
|
Affiliated Issuers |
Beginning
Value |
Purchases |
Sales
Proceeds |
Realized
Gain
(Loss) |
Change in
Unrealized
Appreciation or
Depreciation |
Ending
Value |
|
MFS High Yield Pooled Portfolio |
$412,340,130 |
$56,156,616 |
$31,719,221 |
$(469,858 ) |
$(10,448,025 ) |
$425,859,642 |
|
MFS Institutional Money Market Portfolio |
15,461,052 |
194,543,405 |
194,159,000 |
3,219 |
26 |
15,848,702 |
|
$427,801,182 |
$250,700,021 |
$225,878,221 |
$(466,639 ) |
$(10,447,999 ) |
$441,708,344 |
|
Affiliated Issuers |
Dividend
Income |
Capital Gain
Distributions |
|
MFS High Yield Pooled Portfolio |
$16,826,336 |
$— |
|
MFS Institutional Money Market Portfolio |
265,487 |
— |
|
$17,091,823 |
$— |
(8) Russia and Ukraine Conflict
The fund invests in securities and/or derivative instruments that are economically tied to Russia and/or Ukraine. Escalation of the conflict between Russia and Ukraine in late February 2022 caused market volatility and disruption in the tradability of Russian securities, including closure of the local securities market, temporary restriction on securities sales by non-residents, and disruptions to clearance and payment systems. To the extent that the fund is unable to sell securities, whether due to market constraints or to
50
MFS Diversified Income Fund
Notes to Financial Statements (unaudited) - continued
the sanctions imposed on Russia by the United States and other countries, those securities are considered illiquid and the value of those securities reflects their illiquid classification. Additionally, since there is no assurance on collectability of dividends declared by certain Russian issuers, all such dividends, related receivables, and/or currency denominated in Rubles, if applicable, have been valued at $0. Management continues to monitor these events and to evaluate the related impacts on fund performance.
(9) Subsequent Event
On September 23, 2026, the Board of Trustees of the High Yield Pooled Portfolio approved the liquidation of the High Yield Pooled Portfolio and the distribution of the High Yield Pooled Portfolio’s assets on or around October 30, 2026. The fund is the sole shareholder of the High Yield Pooled Portfolio. It is anticipated that the fund will receive the High Yield Pooled Portfolio’s assets through an in-kind transfer of portfolio securities, where possible, and cash on this date.
51
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
There is nothing to report for this item for MFS Diversified Income Fund.
ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
There is nothing to report for this item for MFS Diversified Income Fund.
ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.
This information is disclosed as part of the financial statements included in Item 7 above for MFS Diversified Income Fund. See the Statement of Operations and Note 3 within the Notes to Financial Statements for more information.
ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.
52
MFS Diversified Income Fund
Board Review of Investment Advisory Agreement
MFS Diversified Income Fund
The Investment Company Act of 1940 requires that both the full Board of Trustees and a majority of the non-interested (“independent”) Trustees, voting separately, annually approve the continuation of the Fund’s investment advisory agreement with MFS. The Trustees consider matters bearing on the Fund and its advisory arrangements at their meetings throughout the year, including a review of performance data at each regular meeting. In addition, the independent Trustees met several times over the course of several months beginning in April and ending in July, 2026 (“contract review meetings”) for the specific purpose of considering whether to approve the continuation of the investment advisory agreement for the Fund and the other investment companies that the Board oversees (the “MFS Funds”). The independent Trustees were assisted in their evaluation of the Fund’s investment advisory agreement by independent legal counsel, from whom they received separate legal advice and with whom they met separately from MFS during various contract review meetings. The independent Trustees were also assisted in this process by an independent consultant who was retained by and reported to the independent Trustees.
In connection with their deliberations regarding the continuation of the investment advisory agreement, the Trustees, including the independent Trustees, considered such information and factors as they believed, in light of the legal advice furnished to them and their own business judgment, to be relevant. The investment advisory agreement for the Fund was considered separately, although the Trustees also took into account the common interests of all MFS Funds in their review. As described below, the Trustees considered the nature, quality, and extent of the various investment advisory, administrative, and shareholder services performed by MFS under the existing investment advisory agreement and other arrangements with the Fund.
In connection with their contract review meetings, the Trustees received and relied upon materials that included, among other items: (i) information provided by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third party, on the investment performance of the Fund for various time periods ended December 31, 2025 and the investment performance of a group of funds with substantially similar investment classifications/objectives (the “Broadridge performance universe”), (ii) information provided by Broadridge on the Fund’s advisory fees and other expenses and the advisory fees and other expenses of comparable funds identified by Broadridge as well as all other funds in the same investment classification/category (the “Broadridge expense group and universe”), (iii) information provided by MFS on the advisory fees of portfolios of other clients of MFS, including institutional separate accounts and other clients, (iv) information as to whether and to what extent applicable expense waivers, reimbursements or fee “breakpoints” are observed for the Fund, (v) information regarding MFS’ financial results and financial condition, including MFS’ and certain of its affiliates’ estimated profitability from services performed for the Fund and the MFS Funds as a whole, and compared to MFS’ institutional business, (vi) MFS’ views regarding the outlook for the mutual fund industry and the strategic business plans of MFS, (vii) descriptions of various functions performed by MFS for the Funds, such as compliance monitoring and portfolio trading practices, and (viii) information regarding the overall organization of MFS, including information about MFS’ senior management and other personnel providing investment advisory, administrative and other services to the Fund and the other MFS Funds. The comparative performance, fee and expense information prepared and provided by Broadridge was not independently verified and the independent Trustees did not independently verify any information provided to them by MFS.
The Trustees’ conclusion as to the continuation of the investment advisory agreement was based on a comprehensive consideration of all information provided to the Trustees and not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations are described below, although individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. It is also important to recognize that the fee arrangements for the Fund and other MFS Funds are the result of years of review and discussion between the independent Trustees and MFS, that certain aspects of such arrangements may receive greater scrutiny in some years than in others, and that the Trustees’ conclusions may be based, in part, on their consideration of these same arrangements during the course of the year and in prior years.
Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Class I shares in comparison to the performance of funds in its Broadridge performance universe over the five-year period ended December 31, 2025, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Class I shares was in the 4th quintile relative to the other funds in the universe for this five-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Class I shares was in the 5th quintile for each of the one- and three-year periods ended December 31, 2025 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
The Trustees expressed continued concern to MFS about the substandard investment performance of the Fund. In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year, as to MFS’ efforts to improve the Fund’s performance. In addition, the Trustees requested that they receive a separate update on the Fund’s performance at each of their regular meetings. After reviewing these and related factors, the Trustees concluded, within the context
53
MFS Diversified Income Fund
Board Review of Investment Advisory Agreement - continued
of their overall conclusions regarding the investment advisory agreement, that MFS’s responses and efforts and plans to improve investment performance were sufficient to support approval of the continuance of the investment advisory agreement for an additional one-year period, but that they would continue to closely monitor the performance of the Fund.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered, among other information, the Fund’s advisory fee and the total expense ratio of the Fund’s Class I shares as a percentage of average daily net assets and the advisory fee and total expense ratios of the Broadridge expense group based on information provided by Broadridge. The Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the data provided by Broadridge (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate and total expense ratio were each approximately at the Broadridge expense group median.
The Trustees also considered the advisory fees charged by MFS to any institutional separate accounts advised by MFS (“separate accounts”) and unaffiliated investment companies for which MFS serves as subadviser (“subadvised funds”) that have comparable investment strategies to the Fund, if any. In comparing these fees, the Trustees considered information provided by MFS as to the generally broader scope of services provided by MFS to the Fund, as well as the more extensive regulatory burdens imposed on MFS in managing the Fund, in comparison to separate accounts and subadvised funds. The Trustees also considered the higher demands placed on MFS’ investment personnel and trading infrastructure as a result of the daily cash in-flows and out-flows of the Fund in comparison to separate accounts.
The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to a contractual breakpoint that reduces the Fund’s advisory fee rate on average daily net assets over $5 billion. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoint and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.
The Trustees also considered information prepared by MFS relating to MFS’ costs and profits with respect to the Fund, the MFS Funds considered as a group, and other investment companies and accounts advised by MFS, as well as MFS’ methodologies used to determine and allocate its costs to the MFS Funds, the Fund and other accounts and products for purposes of estimating profitability.
After reviewing these and other factors described herein, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that the advisory fees charged to the Fund represent reasonable compensation in light of the services being provided by MFS to the Fund.
In addition, the Trustees considered MFS’ resources and related efforts to continue to retain, attract and motivate capable personnel to serve the Fund. The Trustees also considered current and developing conditions in the financial services industry, including the presence of large and well-capitalized companies which are spending, and appear to be prepared to continue to spend, substantial sums to engage personnel and to provide services to competing investment companies. In this regard, the Trustees also considered the financial resources of MFS and its ultimate parent, Sun Life Financial Inc. The Trustees also considered the advantages and possible disadvantages to the Fund of having an adviser that also serves other investment companies as well as other accounts.
The Trustees also considered the nature, quality, cost, and extent of administrative, transfer agency, and distribution services provided to the Fund by MFS and its affiliates under agreements and plans other than the investment advisory agreement, including any 12b-1 fees the Fund pays to MFS Fund Distributors, Inc., an affiliate of MFS. The Trustees also considered the nature, extent and quality of certain other services MFS performs or arranges for on the Fund’s behalf, which may include securities lending programs, directed expense payment programs, class action recovery programs, and MFS’ interaction with third-party service providers, principally custodians and sub-custodians. The Trustees concluded that the various non-advisory services provided by MFS and its affiliates on behalf of the Fund were satisfactory.
The Trustees considered so-called “fall-out benefits” to MFS such as reputational value derived from serving as investment manager to the MFS Funds. The Trustees also considered that MFS discontinued its historic practice of obtaining investment research from portfolio brokerage commissions paid by certain MFS Funds effective January 2018, and directly pays or voluntarily reimburses a Fund, if applicable, for the costs of external research acquired through the use of the Fund’s portfolio brokerage commissions.
Based on their evaluation of factors that they deemed to be material, including those factors described above, the Board of Trustees, including the independent Trustees, concluded that the Fund’s investment advisory agreement with MFS should be continued for an additional one-year period, commencing August 1, 2026.
54
MFS Government Securities Fund
ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
MFS Government Securities Fund
Portfolio of Investments − 8/31/26 (unaudited)
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – 93.0% |
||||
|
Asset-Backed & Securitized – 7.9% |
||||
|
3650R Commercial Mortgage Trust, 2021-PF1, “XA”, 1.096%, 11/15/2054 (i) |
$ |
21,301,201 |
$633,114 |
|
|
ACREC 2021-FL1 Ltd., “AS”, FLR, 5.253% ((SOFR - 1mo. + 0.11448%) + 1.5%), 10/16/2036 (n) |
1,977,559 |
1,977,553 |
||
|
Affirm, Inc., 2026-X1, “A”, 4.27%, 4/15/2031 (n) |
2,201,686 |
2,200,879 |
||
|
AmeriCredit Automobile Receivables Trust, 2026-1, “A”, 4.16%, 7/12/2029 (n) |
4,948,079 |
4,943,777 |
||
|
AREIT 2022-CRE6 Trust, “AS”, FLR, 5.286% (SOFR - 30 day + 1.65%), 1/20/2037 (n) |
7,155,500 |
7,146,966 |
||
|
ARI Fleet Lease Trust, 2023-B, “A2”, 6.05%, 7/15/2032 (n) |
126,996 |
127,246 |
||
|
AutoNation Finance Trust, 2026-N1A, “A2”, 4.48%, 2/15/2029 (n) |
2,124,000 |
2,122,095 |
||
|
Babson CLO Ltd., 2021-3A, “B1R”, FLR, 5.359% (SOFR - 3mo. + 1.63%), 1/18/2035 (n) |
5,500,000 |
5,508,046 |
||
|
BBCMS Mortgage Trust, 2021-C10, “XA”, 1.306%, 7/15/2054 (i) |
18,262,336 |
791,354 |
||
|
BBCMS Mortgage Trust, 2021-C9, “XA”, 1.659%, 2/15/2054 (i) |
12,976,524 |
700,928 |
||
|
BBCMS Mortgage Trust, 2022-C18, “XA”, 0.656%, 12/15/2055 (i) |
22,297,816 |
669,583 |
||
|
BDS Ltd., 2024-FL13, “A”, FLR, 5.223% (SOFR - 1mo. + 1.5762%), 9/19/2039 (n) |
1,419,789 |
1,420,438 |
||
|
Benchmark 2021-B23 Mortgage Trust, “XA”, 1.352%, 2/15/2054 (i) |
42,355,766 |
1,661,024 |
||
|
Benchmark 2021-B24 Mortgage Trust, “XA”, 1.19%, 3/15/2054 (i) |
24,251,265 |
813,140 |
||
|
Benchmark 2021-B26 Mortgage Trust, “XA”, 0.934%, 6/15/2054 (i) |
35,795,997 |
985,514 |
||
|
Benchmark 2021-B27 Mortgage Trust, “XA”, 1.343%, 7/15/2054 (i) |
32,008,774 |
1,298,113 |
||
|
Benchmark 2021-B28 Mortgage Trust, “XA”, 1.327%, 8/15/2054 (i) |
37,668,840 |
1,602,455 |
||
|
Benchmark 2021-B29 Mortgage Trust, “XA”, 1.097%, 9/15/2054 (i) |
43,462,641 |
1,292,266 |
||
|
Business Jet Securities LLC, 2024-1A, “A”, 6.197%, 5/15/2039 (n) |
808,671 |
814,360 |
||
|
BX Trust, 2026-CLS, “A”, 5.039%, 5/15/2043 (n) |
3,995,000 |
3,999,994 |
||
|
BX Trust, 2026-LBTY, “A”, FLR, 4.9% (SOFR - 1mo. + 1.25%), 8/15/2048 (n) |
3,135,053 |
3,135,031 |
||
|
BXMT 2021-FL4 Ltd., “AS”, FLR, 5.304% ((SOFR - 1mo. + 0.11448%) + 1.3%), 5/15/2038 (n) |
7,779,500 |
7,739,319 |
||
|
CarMax Select Receivables Trust, 2026-B, “A2”, 4.35%, 4/16/2029 |
1,463,000 |
1,462,467 |
||
|
Citigroup Commercial Mortgage Trust, 2019-XA, “C7”, 0.938%, 12/15/2072 (i)(n) |
20,647,974 |
481,403 |
||
|
Commercial Mortgage Pass-Through Certificates, 2021-BN31, “XA”, 1.385%, 2/15/2054 (i) |
32,175,059 |
1,388,141 |
||
|
Commercial Mortgage Pass-Through Certificates, 2021-BN32, “XA”, 0.811%, 4/15/2054 (i) |
17,868,993 |
450,340 |
||
|
Commercial Mortgage Pass-Through Certificates, 2021-BN35, “XA”, 1.108%, 6/15/2064 (i) |
12,182,613 |
444,194 |
||
|
Commercial Mortgage Pass-Through Certificates, 2024-CBM, “A2”, 5.867%, 12/10/2041 (n) |
1,395,974 |
1,400,323 |
||
|
CPS Auto Receivables Trust, 2026-C, “A”, 4.52%, 4/15/2030 (n) |
1,857,014 |
1,856,646 |
||
|
EQT Trust, 2024-EXTR, “B”, 5.655%, 7/05/2041 (n) |
1,503,054 |
1,504,753 |
||
|
Exeter Automobile Receivables Trust, 2026-2A, “A2”, 4.31%, 11/15/2028 |
5,374,560 |
5,374,905 |
||
|
GLS Auto Select Receivables Trust, 2026-2A, “A2”, 4.04%, 11/15/2028 (n) |
2,512,983 |
2,510,814 |
||
|
GLS Auto Select Receivables Trust, 2026-3A, “A2”, 4.47%, 3/15/2029 (n) |
2,020,000 |
2,019,381 |
||
|
JPMorgan Mortgage Trust, 2026-NQM1, “A1”, 4.745%, 6/25/2066 (n) |
1,527,450 |
1,496,483 |
||
|
KREF 2018-FT1 Ltd., “AS”, FLR, 5.054% ((SOFR - 1mo. + 0.11448%) + 1.3%), 2/15/2039 (n) |
13,217 |
13,214 |
||
|
LAD Select Auto Receivables Trust, 2026-A, “A2”, 4.59%, 4/16/2029 (n) |
2,802,000 |
2,801,703 |
||
|
MF1 2021-FL7 Ltd., “A”, FLR, 4.833% ((SOFR - 1mo. + 0.11448%) + 1.08%), 10/16/2036 (n) |
971,106 |
971,075 |
||
|
Morgan Stanley Capital I Trust, 2018-H4, “XA”, 0.966%, 12/15/2051 (i) |
21,049,409 |
309,974 |
||
|
Morgan Stanley Capital I Trust, 2021-L5, “XA”, 1.301%, 5/15/2054 (i) |
14,568,904 |
604,449 |
||
|
Morgan Stanley Capital I Trust, 2021-L6, “XA”, 1.209%, 6/15/2054 (i) |
16,668,719 |
576,878 |
||
|
Morgan Stanley Capital I Trust, 2021-L7, “XA”, 1.171%, 10/15/2054 (i) |
74,389,392 |
2,545,270 |
||
|
Morgan Stanley Residential Mortgage Loan Trust, 2026-NQM1, “A1”, 4.809%, 12/25/2070 (n) |
1,693,846 |
1,662,206 |
||
|
Morgan Stanley Residential Mortgage Loan Trust, 2024-NQM3, “A1”, 5.044%, 7/25/2069 (n) |
1,149,351 |
1,139,093 |
||
|
Morgan Stanley Residential Mortgage Loan Trust, 2025-NQM3, “A1”, 5.53%, 5/25/2070 (n) |
2,073,148 |
2,065,587 |
||
|
Morgan Stanley Residential Mortgage Loan Trust, 2026-INV1, “A9”, FLR, 4.793% (SOFR - 1mo. + 1.15%), 2/25/2061 (n) |
2,461,493 |
2,442,988 |
||
|
MTN Commercial Mortgage Trust, 2026-LPFX, “A”, 5.153%, 5/15/2043 (n) |
641,696 |
633,453 |
||
|
New Residential Mortgage Loan Trust, 2026-NQM2, “A1”, 4.743%, 12/25/2065 (n) |
4,692,735 |
4,602,452 |
||
|
New Residential Mortgage Loan Trust, 2026-NQM9, “A1”, 4.833%, 2/25/2066 (n) |
9,509,619 |
9,341,410 |
||
|
OBX Trust, 2024-NQM1, “A2”, 6.253%, 11/25/2063 (n) |
341,757 |
341,441 |
||
MFGFS-SEM
1
MFS Government Securities Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Asset-Backed & Securitized – continued |
||||
|
OBX Trust, 2025-NQM8, “A1”, 5.472%, 3/25/2065 (n) |
$ |
1,562,308 |
$1,557,397 |
|
|
Ocwen Loan Investment Trust, 2026-HB3, “A”, 3%, 6/25/2039 (n) |
1,904,147 |
1,865,180 |
||
|
Palmer Square Loan Funding, 2024-3A Ltd., “A2R”, FLR, 4.907% (SOFR - 3mo. + 1.15%), 8/08/2032 (n) |
1,530,612 |
1,530,930 |
||
|
Palmer Square Loan Funding, 2025-2A Ltd., “A2”, FLR, 5.153% (SOFR - 3mo. + 1.4%), 7/15/2033 (n) |
8,550,000 |
8,551,163 |
||
|
PFS Financing Corp., 2023-C, “B”, 5.91%, 10/15/2028 (n) |
1,302,000 |
1,304,163 |
||
|
PFS Financing Corp., 2025-A, “A”, FLR, 4.286% (SOFR - 1mo. + 0.65%), 1/15/2029 (n) |
4,611,000 |
4,612,333 |
||
|
PMT Loan Trust, 2025-INV10, “A36”, FLR, 4.993% (SOFR - 1mo. + 1.35%), 10/01/2056 (n) |
1,982,244 |
1,982,685 |
||
|
PMT Loan Trust, 2026-CNF1, “A26”, FLR, 4.843% (SOFR - 1mo. + 1.2%), 1/25/2057 (n) |
1,737,210 |
1,733,358 |
||
|
PMT Loan Trust, 2026-INV2, “A35”, FLR, 4.793% (SOFR - 1mo. + 1.15%), 1/25/2057 (n) |
9,470,708 |
9,399,314 |
||
|
Provident Funding Mortgage Trust, 2024-1, “A3”, 5.5%, 12/25/2054 (n) |
1,945,433 |
1,935,437 |
||
|
RCKT Trust, 2025-1A, “A”, 4.9%, 7/25/2034 (n) |
232,350 |
232,534 |
||
|
Santander Drive Auto Receivables Trust, 2026-1, “A2”, 4.04%, 3/15/2029 |
2,379,543 |
2,377,502 |
||
|
Sequoia Mortgage Trust, 2026-Med2, “A1A”, 5.613%, 8/25/2056 (n) |
4,206,270 |
4,168,200 |
||
|
Shackleton 2019-14A CLO Ltd., “BRR”, FLR, 5.279% (SOFR - 3mo. + 1.55%), 7/20/2034 (n) |
6,434,263 |
6,435,228 |
||
|
Verus Securitization Trust, 2024-1, “A2”, 5.915%, 1/25/2069 (n) |
666,112 |
665,111 |
||
|
Wells Fargo Commercial Mortgage Trust, 2018-C48, “XA”, 1.098%, 1/15/2052 (i)(n) |
11,761,890 |
187,802 |
||
|
Wells Fargo Commercial Mortgage Trust, 2021-C60, “XA”, 1.624%, 8/15/2054 (i) |
18,204,978 |
1,035,352 |
||
|
$151,597,927 |
||||
|
Consumer Services – 0.1% |
||||
|
Conservation Fund, 3.474%, 12/15/2029 |
$ |
2,018,000 |
$1,904,355 |
|
|
Mortgage-Backed – 57.5% |
||||
|
Fannie Mae, 3%, 11/01/2028 - 9/01/2046 |
$ |
6,291,632 |
$5,847,948 |
|
|
Fannie Mae, 3.5%, 1/25/2030 - 12/01/2047 |
17,722,536 |
16,223,377 |
||
|
Fannie Mae, 2.5%, 11/01/2031 - 10/01/2046 |
2,004,447 |
1,820,325 |
||
|
Fannie Mae, 3.5%, 12/25/2031 - 2/25/2036 (i) |
582,651 |
40,848 |
||
|
Fannie Mae, 6.5%, 1/01/2032 - 10/01/2037 |
325,908 |
336,715 |
||
|
Fannie Mae, 6%, 1/01/2033 - 12/01/2037 |
896,516 |
915,097 |
||
|
Fannie Mae, 3%, 2/25/2033 - 1/25/2052 (i) |
1,138,771 |
115,775 |
||
|
Fannie Mae, 5.5%, 5/01/2033 - 5/01/2044 |
4,559,299 |
4,593,105 |
||
|
Fannie Mae, 5%, 11/01/2033 - 3/25/2042 |
5,915,158 |
5,860,934 |
||
|
Fannie Mae, 4.5%, 3/01/2034 - 6/01/2044 |
12,333,247 |
11,959,116 |
||
|
Fannie Mae, 4.208%, 4/25/2034 |
19,900 |
19,895 |
||
|
Fannie Mae, 4%, 9/01/2040 - 7/01/2047 |
24,576,006 |
23,283,851 |
||
|
Fannie Mae, 1%, 3/25/2041 |
1,208,706 |
1,057,651 |
||
|
Fannie Mae, 4.108%, 3/25/2041 |
216,051 |
215,450 |
||
|
Fannie Mae, 2.25%, 4/25/2041 |
934,773 |
899,147 |
||
|
Fannie Mae, 4.258%, 7/25/2041 |
208,495 |
207,212 |
||
|
Fannie Mae, 1.75%, 9/25/2041 |
644,404 |
622,876 |
||
|
Fannie Mae, 2.75%, 9/25/2042 |
666,578 |
642,656 |
||
|
Fannie Mae, 0.000%, 10/25/2043 |
1,862,755 |
1,372,730 |
||
|
Fannie Mae, 2%, 8/25/2044 - 4/25/2046 |
1,548,675 |
1,435,156 |
||
|
Fannie Mae, 4.058%, 12/25/2045 |
463,466 |
458,245 |
||
|
Fannie Mae, 2.242%, 8/25/2046 - 9/25/2046 (i) |
8,738,313 |
657,323 |
||
|
Fannie Mae, 2.442%, 12/25/2047 (i) |
1,822,531 |
174,383 |
||
|
Fannie Mae, 4.5%, 3/15/2048 (i) |
1,230,672 |
283,029 |
||
|
Fannie Mae, 2.392%, 10/25/2048 (i) |
4,541,870 |
406,854 |
||
|
Fannie Mae, 2.292%, 6/25/2050 (i) |
4,330,214 |
410,128 |
||
|
Fannie Mae, 2%, 9/25/2050 - 11/25/2051 (i) |
5,338,444 |
639,115 |
||
|
Fannie Mae, 4%, 9/25/2050 (i) |
2,569,195 |
488,688 |
||
|
Fannie Mae, 2.5%, 2/25/2051 (i) |
1,769,482 |
237,795 |
||
|
Fannie Mae, 5.093%, 11/25/2053 |
3,092,285 |
3,152,315 |
||
|
Fannie Mae, 5.543%, 11/25/2053 |
2,329,851 |
2,386,568 |
||
2
MFS Government Securities Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Mortgage-Backed – continued |
||||
|
Fannie Mae, 5.643%, 11/25/2053 |
$ |
6,744,727 |
$6,927,919 |
|
|
Fannie Mae, 4.543%, 12/25/2053 |
1,294,034 |
1,299,067 |
||
|
Fannie Mae, 6.643%, 7/25/2054 |
2,267,743 |
2,351,305 |
||
|
Fannie Mae, 4.793%, 10/25/2054 |
2,417,704 |
2,421,177 |
||
|
Fannie Mae, 4.593%, 11/25/2054 |
4,985,767 |
4,991,013 |
||
|
Fannie Mae, 4.993%, 11/25/2054 |
8,488,837 |
8,536,366 |
||
|
Fannie Mae, 4.643%, 12/25/2054 |
7,069,697 |
7,111,841 |
||
|
Fannie Mae, 5.043%, 12/25/2054 |
5,644,105 |
5,681,927 |
||
|
Fannie Mae, 5.143%, 12/25/2054 |
8,360,241 |
8,433,017 |
||
|
Fannie Mae, 4.943%, 1/25/2055 |
6,922,325 |
6,954,082 |
||
|
Fannie Mae, 6.083%, 3/25/2055 |
3,370,849 |
3,373,141 |
||
|
Fannie Mae, UMBS, 2.5%, 5/01/2036 - 8/01/2052 |
79,353,077 |
66,186,325 |
||
|
Fannie Mae, UMBS, 5.5%, 10/01/2038 - 5/01/2055 |
24,630,852 |
24,467,363 |
||
|
Fannie Mae, UMBS, 1.5%, 2/01/2042 - 3/01/2051 |
1,276,412 |
986,757 |
||
|
Fannie Mae, UMBS, 2%, 2/01/2042 - 4/01/2052 |
44,372,977 |
35,359,601 |
||
|
Fannie Mae, UMBS, 3.5%, 5/01/2049 - 2/01/2052 |
1,601,077 |
1,440,091 |
||
|
Fannie Mae, UMBS, 3%, 6/01/2051 - 8/01/2052 |
14,058,588 |
12,145,586 |
||
|
Fannie Mae, UMBS, 4%, 8/01/2051 - 2/01/2053 |
4,743,144 |
4,382,059 |
||
|
Fannie Mae, UMBS, 4.5%, 9/01/2052 - 10/01/2055 |
3,218,586 |
3,039,976 |
||
|
Fannie Mae, UMBS, 5%, 9/01/2052 - 11/01/2054 |
860,869 |
832,380 |
||
|
Fannie Mae, UMBS, 6%, 2/01/2053 - 12/01/2054 |
9,984,189 |
10,129,886 |
||
|
Freddie Mac, 3.12%, 9/25/2026 |
7,133,384 |
7,113,674 |
||
|
Freddie Mac, 2.525%, 10/25/2026 |
4,871,124 |
4,851,546 |
||
|
Freddie Mac, 3.413%, 12/25/2026 |
15,946,877 |
15,881,425 |
||
|
Freddie Mac, 1.486%, 3/25/2027 (i) |
5,583,000 |
29,368 |
||
|
Freddie Mac, 3.243%, 4/25/2027 |
10,090,226 |
10,014,926 |
||
|
Freddie Mac, 3.117%, 6/25/2027 |
20,236,646 |
20,047,166 |
||
|
Freddie Mac, 0.692%, 7/25/2027 (i) |
97,448,673 |
308,133 |
||
|
Freddie Mac, 0.53%, 8/25/2027 (i) |
75,230,522 |
248,644 |
||
|
Freddie Mac, 0.476%, 12/25/2027 (i) |
1,188,569 |
4,794 |
||
|
Freddie Mac, 0.431%, 1/25/2028 (i) |
134,107,728 |
456,275 |
||
|
Freddie Mac, 0.432%, 1/25/2028 - 5/25/2033 (i) |
120,310,068 |
1,384,813 |
||
|
Freddie Mac, 0.249%, 2/25/2028 (i) |
156,574,489 |
276,667 |
||
|
Freddie Mac, 0.246%, 4/25/2028 (i) |
104,965,666 |
210,970 |
||
|
Freddie Mac, 0.617%, 10/25/2028 (i) |
39,406,657 |
330,196 |
||
|
Freddie Mac, 0.6%, 5/25/2029 - 3/25/2031 (i) |
95,570,350 |
1,315,982 |
||
|
Freddie Mac, 1.005%, 7/25/2029 (i) |
31,354,116 |
679,039 |
||
|
Freddie Mac, 1.207%, 7/25/2029 (i) |
18,485,852 |
491,123 |
||
|
Freddie Mac, 1.256%, 8/25/2029 (i) |
32,564,151 |
910,031 |
||
|
Freddie Mac, 0.733%, 1/25/2030 (i) |
17,877,823 |
286,410 |
||
|
Freddie Mac, 1.434%, 1/25/2030 - 6/25/2030 (i) |
37,069,954 |
1,491,777 |
||
|
Freddie Mac, 1.697%, 1/25/2030 (i) |
19,001,797 |
863,216 |
||
|
Freddie Mac, 1.913%, 4/25/2030 (i) |
14,430,646 |
840,933 |
||
|
Freddie Mac, 1.954%, 4/25/2030 (i) |
20,077,463 |
1,187,867 |
||
|
Freddie Mac, 0.579%, 5/25/2030 (i) |
25,611,748 |
357,105 |
||
|
Freddie Mac, 1.769%, 5/25/2030 (i) |
12,033,779 |
682,302 |
||
|
Freddie Mac, 1.908%, 5/25/2030 (i) |
26,880,424 |
1,605,554 |
||
|
Freddie Mac, 5.5%, 6/01/2030 - 9/01/2041 |
1,952,793 |
1,979,868 |
||
|
Freddie Mac, 1.2%, 6/25/2030 (i) |
19,629,922 |
693,559 |
||
|
Freddie Mac, 1.467%, 6/25/2030 (i) |
28,880,806 |
1,216,636 |
||
|
Freddie Mac, 1.701%, 8/25/2030 (i) |
10,235,210 |
566,039 |
||
|
Freddie Mac, 1.261%, 9/25/2030 (i) |
6,568,138 |
275,355 |
||
|
Freddie Mac, 1.17%, 11/25/2030 (i) |
13,158,725 |
532,306 |
||
|
Freddie Mac, 0.404%, 1/25/2031 (i) |
49,249,574 |
513,156 |
||
3
MFS Government Securities Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Mortgage-Backed – continued |
||||
|
Freddie Mac, 0.626%, 1/25/2031 (i) |
$ |
70,182,335 |
$1,515,686 |
|
|
Freddie Mac, 0.87%, 1/25/2031 (i) |
19,512,958 |
611,940 |
||
|
Freddie Mac, 1.025%, 1/25/2031 (i) |
14,681,587 |
529,933 |
||
|
Freddie Mac, 5.481%, 2/25/2031 (i) |
18,431,877 |
319,673 |
||
|
Freddie Mac, 0.827%, 3/25/2031 (i) |
17,260,719 |
523,202 |
||
|
Freddie Mac, 1.321%, 5/25/2031 - 7/25/2031 (i) |
29,681,096 |
1,539,801 |
||
|
Freddie Mac, 1.039%, 7/25/2031 (i) |
11,674,001 |
481,003 |
||
|
Freddie Mac, 0.602%, 8/25/2031 (i) |
14,770,824 |
310,239 |
||
|
Freddie Mac, 0.632%, 9/25/2031 (i) |
50,814,178 |
1,211,918 |
||
|
Freddie Mac, 0.954%, 9/25/2031 (i) |
48,419,608 |
1,809,092 |
||
|
Freddie Mac, 0.441%, 11/25/2031 (i) |
73,361,326 |
1,184,859 |
||
|
Freddie Mac, 0.595%, 12/25/2031 (i) |
73,957,916 |
1,641,171 |
||
|
Freddie Mac, 0.664%, 12/25/2031 (i) |
12,187,459 |
303,378 |
||
|
Freddie Mac, 0.869%, 2/25/2032 (i) |
49,680,895 |
1,828,292 |
||
|
Freddie Mac, 0.434%, 6/25/2032 (i) |
116,203,070 |
2,004,271 |
||
|
Freddie Mac, 4.201%, 11/15/2032 |
30,789 |
30,756 |
||
|
Freddie Mac, 0.302%, 11/25/2032 (i) |
74,026,378 |
819,857 |
||
|
Freddie Mac, 4.2%, 4/25/2033 |
27,000,000 |
25,943,806 |
||
|
Freddie Mac, 0.3%, 8/25/2033 (i) |
78,666,400 |
849,282 |
||
|
Freddie Mac, 0.363%, 10/25/2033 (i) |
75,772,703 |
1,100,174 |
||
|
Freddie Mac, 5%, 5/01/2034 - 12/01/2044 |
5,424,635 |
5,394,406 |
||
|
Freddie Mac, 6%, 8/01/2034 - 10/01/2038 |
1,931,419 |
1,981,084 |
||
|
Freddie Mac, 1.092%, 9/25/2034 (i) |
9,883,118 |
621,864 |
||
|
Freddie Mac, 0.22%, 1/25/2035 (i) |
119,066,272 |
975,534 |
||
|
Freddie Mac, 0.427%, 1/25/2035 (i) |
47,468,092 |
983,463 |
||
|
Freddie Mac, 0.214%, 12/25/2035 (i) |
114,495,340 |
953,105 |
||
|
Freddie Mac, 5.5%, 2/15/2036 (i) |
206,995 |
30,913 |
||
|
Freddie Mac, 0.277%, 5/25/2036 (i) |
107,309,007 |
1,391,755 |
||
|
Freddie Mac, 6.5%, 5/01/2037 |
71,701 |
74,261 |
||
|
Freddie Mac, 4%, 8/01/2037 - 4/01/2044 |
2,697,460 |
2,569,567 |
||
|
Freddie Mac, 3.5%, 11/01/2037 - 10/25/2058 |
14,579,897 |
13,497,970 |
||
|
Freddie Mac, 3%, 1/01/2038 - 2/25/2059 |
11,679,526 |
10,488,392 |
||
|
Freddie Mac, 4.5%, 7/01/2039 - 5/01/2042 |
1,886,873 |
1,830,746 |
||
|
Freddie Mac, 4.5%, 12/15/2040 (i) |
25,948 |
2,349 |
||
|
Freddie Mac, 1.75%, 8/15/2041 |
523,325 |
498,291 |
||
|
Freddie Mac, 4.151%, 11/15/2043 - 8/15/2046 |
1,399,710 |
1,388,714 |
||
|
Freddie Mac, 2.249%, 11/15/2048 (i) |
8,994,227 |
692,256 |
||
|
Freddie Mac, 3%, 2/25/2049 - 10/25/2052 (i) |
6,766,206 |
790,586 |
||
|
Freddie Mac, 2.292%, 8/25/2049 (i) |
3,189,235 |
297,755 |
||
|
Freddie Mac, 2.5%, 11/25/2050 - 3/25/2051 (i) |
10,643,315 |
1,707,370 |
||
|
Freddie Mac, 2%, 2/25/2051 - 3/25/2052 (i) |
11,762,880 |
1,468,373 |
||
|
Freddie Mac, 4.843%, 9/25/2053 |
8,136,135 |
8,201,281 |
||
|
Freddie Mac, 5.093%, 10/25/2053 |
6,346,257 |
6,469,468 |
||
|
Freddie Mac, 5.643%, 11/25/2053 |
9,072,296 |
9,318,941 |
||
|
Freddie Mac, 5.873%, 12/25/2053 |
2,931,951 |
2,938,741 |
||
|
Freddie Mac, 4.743%, 1/25/2054 - 9/25/2054 |
8,012,202 |
8,054,781 |
||
|
Freddie Mac, 4.943%, 1/25/2054 - 12/25/2054 |
16,432,266 |
16,583,053 |
||
|
Freddie Mac, 5.143%, 12/25/2054 |
10,103,331 |
10,180,703 |
||
|
Freddie Mac, 6.093%, 1/25/2055 |
1,957,631 |
1,974,904 |
||
|
Freddie Mac, 7.593%, 9/25/2055 |
782,068 |
807,843 |
||
|
Freddie Mac, 2.349%, 8/15/2057 (i) |
2,794,252 |
294,978 |
||
|
Freddie Mac, 0.39%, 3/25/2061 (i) |
64,696,386 |
688,792 |
||
|
Freddie Mac, 3.25%, 11/25/2061 |
3,815,882 |
3,500,034 |
||
|
Freddie Mac, UMBS, 2.5%, 3/01/2037 - 9/01/2052 |
21,133,806 |
17,488,002 |
||
4
MFS Government Securities Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Mortgage-Backed – continued |
||||
|
Freddie Mac, UMBS, 2%, 2/01/2042 - 3/01/2052 |
$ |
15,931,688 |
$12,861,554 |
|
|
Freddie Mac, UMBS, 3.5%, 12/01/2046 - 5/01/2052 |
2,146,557 |
1,938,225 |
||
|
Freddie Mac, UMBS, 3%, 2/01/2050 - 8/01/2052 |
25,987,390 |
22,246,035 |
||
|
Freddie Mac, UMBS, 1.5%, 10/01/2051 - 11/01/2051 |
476,777 |
355,774 |
||
|
Freddie Mac, UMBS, 4%, 5/01/2052 |
3,467,615 |
3,192,531 |
||
|
Freddie Mac, UMBS, 5%, 11/01/2052 - 12/01/2054 |
7,390,971 |
7,169,635 |
||
|
Freddie Mac, UMBS, 5.5%, 12/01/2052 - 7/01/2055 |
14,346,559 |
14,279,966 |
||
|
Freddie Mac, UMBS, 6%, 2/01/2053 - 2/01/2055 |
9,175,076 |
9,315,333 |
||
|
Freddie Mac, UMBS, 6.5%, 4/01/2054 - 11/01/2054 |
3,260,550 |
3,378,773 |
||
|
Freddie Mac, UMBS, 4.5%, 11/01/2054 - 8/01/2055 |
1,204,453 |
1,131,645 |
||
|
Ginnie Mae, 3.5%, 8/20/2029 - 1/20/2043 (i) |
4,299,160 |
510,568 |
||
|
Ginnie Mae, 5.5%, 3/15/2033 - 10/20/2053 |
2,125,592 |
2,130,159 |
||
|
Ginnie Mae, 4.5%, 7/20/2033 - 10/20/2052 |
22,190,821 |
21,146,594 |
||
|
Ginnie Mae, 5.646%, 8/20/2034 |
483,555 |
487,183 |
||
|
Ginnie Mae, 4%, 5/16/2039 - 7/20/2056 |
2,964,795 |
2,746,648 |
||
|
Ginnie Mae, 5%, 8/20/2039 - 6/20/2056 |
12,102,858 |
11,795,401 |
||
|
Ginnie Mae, 4%, 12/20/2039 - 9/20/2047 (i) |
1,383,716 |
229,808 |
||
|
Ginnie Mae, 1.983%, 3/20/2040 (i) |
6,013,638 |
378,053 |
||
|
Ginnie Mae, 1.633%, 5/20/2041 (i) |
2,368,770 |
132,374 |
||
|
Ginnie Mae, 3.867%, 9/20/2041 |
5,552,734 |
5,413,327 |
||
|
Ginnie Mae, 2.396%, 11/16/2041 (i) |
1,414,272 |
39,648 |
||
|
Ginnie Mae, 3.5%, 12/15/2041 - 7/20/2043 |
5,413,313 |
4,961,123 |
||
|
Ginnie Mae, 2.5%, 6/20/2042 - 1/20/2066 |
20,102,934 |
16,853,753 |
||
|
Ginnie Mae, 3%, 2/20/2043 - 10/20/2052 |
38,935,370 |
33,990,978 |
||
|
Ginnie Mae, 2.433%, 8/20/2044 - 7/20/2050 (i) |
8,590,714 |
843,978 |
||
|
Ginnie Mae, 2.383%, 12/20/2044 - 4/20/2047 (i) |
2,199,611 |
155,220 |
||
|
Ginnie Mae, 1.883%, 10/20/2045 (i) |
5,554,918 |
388,793 |
||
|
Ginnie Mae, 2.283%, 4/20/2046 - 1/20/2049 (i) |
5,111,984 |
448,732 |
||
|
Ginnie Mae, 2.496%, 2/16/2048 (i) |
3,634,330 |
304,553 |
||
|
Ginnie Mae, 2.233%, 2/20/2049 (i) |
5,550,132 |
405,508 |
||
|
Ginnie Mae, 2.5%, 10/20/2050 - 2/20/2051 (i) |
10,971,190 |
1,615,565 |
||
|
Ginnie Mae, 2%, 11/20/2050 (i) |
169,294 |
19,443 |
||
|
Ginnie Mae, 2.583%, 3/20/2051 (i) |
3,599,907 |
415,484 |
||
|
Ginnie Mae, 2.561%, 5/20/2051 (i) |
3,225,056 |
371,207 |
||
|
Ginnie Mae, 2.533%, 6/20/2051 (i) |
10,998,707 |
1,176,864 |
||
|
Ginnie Mae, 2.361%, 7/20/2051 (i) |
3,458,699 |
344,304 |
||
|
Ginnie Mae, 2%, 1/20/2052 - 11/20/2052 |
31,480,497 |
25,285,497 |
||
|
Ginnie Mae, 3%, 2/20/2052 (i) |
2,271,764 |
370,387 |
||
|
Ginnie Mae, 4.689%, 7/20/2053 - 10/20/2054 |
15,883,108 |
15,942,501 |
||
|
Ginnie Mae, 4.539%, 8/20/2053 |
6,999,983 |
7,006,152 |
||
|
Ginnie Mae, 4.639%, 8/20/2053 - 12/20/2064 |
28,731,625 |
28,749,828 |
||
|
Ginnie Mae, 4.889%, 8/20/2053 - 4/20/2055 |
10,926,000 |
11,021,289 |
||
|
Ginnie Mae, 4.989%, 9/20/2053 - 5/20/2055 |
21,655,494 |
21,884,570 |
||
|
Ginnie Mae, 5.039%, 9/20/2053 |
8,616,410 |
8,730,258 |
||
|
Ginnie Mae, 4.939%, 10/20/2053 |
8,113,803 |
8,199,605 |
||
|
Ginnie Mae, 4.289%, 11/20/2053 - 8/20/2074 |
9,203,897 |
9,199,303 |
||
|
Ginnie Mae, 4.739%, 11/20/2053 - 11/20/2054 |
30,582,675 |
30,775,309 |
||
|
Ginnie Mae, 4.839%, 12/20/2053 - 4/20/2064 |
35,573,749 |
35,773,478 |
||
|
Ginnie Mae, 4.589%, 3/20/2054 |
7,449,693 |
7,448,509 |
||
|
Ginnie Mae, 4.838%, 3/20/2054 |
7,022,068 |
7,045,260 |
||
|
Ginnie Mae, 4.789%, 6/20/2054 - 3/20/2064 |
13,483,977 |
13,541,381 |
||
|
Ginnie Mae, 5.139%, 5/20/2055 |
8,557,331 |
8,630,263 |
||
|
Ginnie Mae, 7.589%, 5/20/2055 |
1,743,053 |
1,769,300 |
||
|
Ginnie Mae, 6.117%, 6/20/2055 |
3,433,575 |
3,262,094 |
||
5
MFS Government Securities Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
Mortgage-Backed – continued |
||||
|
Ginnie Mae, 6.192%, 6/20/2055 |
$ |
1,550,598 |
$1,473,948 |
|
|
Ginnie Mae, 1.711%, 7/20/2055 (i) |
3,326,210 |
143,898 |
||
|
Ginnie Mae, 6%, 11/20/2055 |
2,160,708 |
2,201,344 |
||
|
Ginnie Mae, 4.369%, 2/20/2056 |
6,157,130 |
6,143,590 |
||
|
Ginnie Mae, 4.182%, 12/20/2060 |
5,647 |
5,633 |
||
|
Ginnie Mae, 4.262%, 3/20/2061 - 10/20/2064 |
133,715 |
133,489 |
||
|
Ginnie Mae, 4.282%, 3/20/2061 - 3/20/2070 |
4,245,772 |
4,244,145 |
||
|
Ginnie Mae, 2.099%, 12/20/2062 (i) |
3,144,080 |
134,692 |
||
|
Ginnie Mae, 4.232%, 4/20/2063 - 11/20/2067 |
956,092 |
954,040 |
||
|
Ginnie Mae, 2.461%, 5/20/2064 (i) |
6,393,546 |
278,445 |
||
|
Ginnie Mae, 4.462%, 7/20/2064 |
408,125 |
408,991 |
||
|
Ginnie Mae, 4.382%, 3/20/2065 |
22,416 |
22,441 |
||
|
Ginnie Mae, 4.439%, 8/20/2065 - 2/20/2066 |
19,227,118 |
19,145,370 |
||
|
Ginnie Mae, 4.488%, 9/20/2065 |
8,142,291 |
8,162,436 |
||
|
Ginnie Mae, 4.832%, 2/20/2066 |
66,913 |
67,318 |
||
|
Ginnie Mae, 2.255%, 3/20/2066 (i) |
906,891 |
31,251 |
||
|
Ginnie Mae, 4.532%, 10/20/2066 |
538,330 |
540,167 |
||
|
Ginnie Mae, 4.552%, 10/20/2066 |
1,445,069 |
1,450,810 |
||
|
Ginnie Mae, 4.541%, 1/20/2067 |
1,294,920 |
1,300,255 |
||
|
Ginnie Mae, 4.392%, 2/20/2067 |
1,044,419 |
1,046,567 |
||
|
Ginnie Mae, 4.506%, 3/20/2067 |
2,069,795 |
2,074,957 |
||
|
Ginnie Mae, 4.089%, 5/20/2067 |
5,970,559 |
5,959,257 |
||
|
Ginnie Mae, 5.041%, 7/20/2067 |
2,616,857 |
2,631,942 |
||
|
Ginnie Mae, 4.139%, 8/20/2067 |
8,032,345 |
8,016,071 |
||
|
Ginnie Mae, 4.298%, 4/20/2068 |
4,717,402 |
4,718,423 |
||
|
Ginnie Mae, 4.039%, 12/20/2071 |
1,719,606 |
1,713,563 |
||
|
Ginnie Mae, 4.545%, 12/20/2071 |
437,365 |
433,672 |
||
|
Ginnie Mae, 3.639%, 11/20/2074 |
1,552,706 |
1,537,816 |
||
|
UMBS, TBA, 1.5%, 9/25/2056 |
5,050,000 |
3,762,861 |
||
|
UMBS, TBA, 2%, 9/25/2056 |
31,125,000 |
24,271,542 |
||
|
UMBS, TBA, 2.5%, 9/25/2056 |
12,154,000 |
9,912,173 |
||
|
$1,100,891,479 |
||||
|
U.S. Government Agencies and Equivalents – 0.1% |
||||
|
Small Business Administration, 2.21%, 2/01/2033 |
$ |
324,884 |
$300,639 |
|
|
Small Business Administration, 2.22%, 3/01/2033 |
624,944 |
582,447 |
||
|
Small Business Administration, 3.15%, 7/01/2033 |
521,289 |
495,655 |
||
|
Small Business Administration, 3.16%, 8/01/2033 |
207,947 |
196,318 |
||
|
Small Business Administration, 3.62%, 9/01/2033 |
194,114 |
187,125 |
||
|
$1,762,184 |
||||
|
U.S. Treasury Obligations – 27.4% |
||||
|
U.S. Treasury Bonds, 6.375%, 8/15/2027 |
$ |
2,309,000 |
$2,355,451 |
|
|
U.S. Treasury Bonds, 4.375%, 2/15/2038 |
2,078,000 |
2,010,709 |
||
|
U.S. Treasury Bonds, 3.125%, 2/15/2043 |
9,748,800 |
7,538,564 |
||
|
U.S. Treasury Bonds, 2.875%, 5/15/2043 |
27,528,200 |
20,424,634 |
||
|
U.S. Treasury Bonds, 4.75%, 11/15/2043 |
11,168,000 |
10,613,962 |
||
|
U.S. Treasury Bonds, 2.5%, 2/15/2045 |
97,983,000 |
66,111,733 |
||
|
U.S. Treasury Bonds, 4.75%, 2/15/2045 |
36,531,000 |
34,474,704 |
||
|
U.S. Treasury Bonds, 5%, 5/15/2045 |
4,336,000 |
4,217,099 |
||
|
U.S. Treasury Bonds, 4.625%, 5/15/2054 |
11,176,000 |
10,130,869 |
||
|
U.S. Treasury Bonds, 4.625%, 2/15/2055 |
11,722,000 |
10,624,436 |
||
|
U.S. Treasury Bonds, 4.75%, 8/15/2055 |
6,088,000 |
5,631,638 |
||
|
U.S. Treasury Bonds, 5%, 5/15/2056 |
25,843,400 |
24,906,577 |
||
6
MFS Government Securities Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Bonds – continued |
||||
|
U.S. Treasury Obligations – continued |
||||
|
U.S. Treasury Notes, 3.375%, 11/30/2027 |
$ |
21,069,000 |
$20,836,912 |
|
|
U.S. Treasury Notes, 3.375%, 12/31/2027 |
7,056,000 |
6,972,210 |
||
|
U.S. Treasury Notes, 2.75%, 2/15/2028 |
54,157,000 |
52,978,662 |
||
|
U.S. Treasury Notes, 3.625%, 3/31/2028 (f) |
65,576,000 |
64,879,255 |
||
|
U.S. Treasury Notes, 1%, 7/31/2028 |
32,248,000 |
30,285,407 |
||
|
U.S. Treasury Notes, 2.375%, 5/15/2029 |
19,515,500 |
18,519,905 |
||
|
U.S. Treasury Notes, 3.5%, 4/30/2030 |
18,675,000 |
18,079,734 |
||
|
U.S. Treasury Notes, 4.125%, 8/31/2030 |
37,647,000 |
37,174,942 |
||
|
U.S. Treasury Notes, 1.625%, 5/15/2031 |
41,833,000 |
36,786,894 |
||
|
U.S. Treasury Notes, 1.375%, 11/15/2031 |
11,425,300 |
9,768,185 |
||
|
U.S. Treasury Notes, 4.25%, 8/15/2035 |
31,630,000 |
30,563,723 |
||
|
$525,886,205 |
||||
|
Total Bonds (Identified Cost, $1,885,670,923) |
$1,782,042,150 |
|||
|
Mutual Funds (h) – 8.3% |
||||
|
Money Market Funds – 8.3% |
||||
|
MFS Institutional Money Market Portfolio, 3.75% (v) (Identified Cost, $159,900,949) |
159,892,483 |
$159,908,472 |
||
|
Other Assets, Less Liabilities – (1.3)% |
(25,804,589) |
|||
|
Net Assets – 100.0% |
$1,916,146,033 |
|||
|
(f) |
All or a portion of the security has been segregated as collateral for open futures contracts and cleared swap agreements. |
|
(h) |
An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $159,908,472 and $1,782,042,150, 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 $124,580,964, representing 6.5% 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: |
|
|
CLO |
Collateralized Loan Obligation |
|
FLR |
Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
|
SOFR |
Secured Overnight Financing Rate |
|
TBA |
To Be Announced |
|
UMBS |
Uniform Mortgage-Backed Security |
|
Derivative Contracts at 8/31/26 |
||||||
|
Futures Contracts |
||||||
|
Description |
Long/
Short |
Currency |
Contracts |
Notional
Amount |
Expiration
Date |
Value/Unrealized
Appreciation
(Depreciation) |
|
Asset Derivatives |
||||||
|
Interest Rate Futures |
||||||
|
U.S. Treasury Ultra Note 10 yr |
Short |
USD |
212 |
$23,197,437 |
December – 2026 |
$111,844 |
|
Liability Derivatives |
||||||
|
Interest Rate Futures |
||||||
|
U.S. Treasury Note 10 yr |
Long |
USD |
2,299 |
$247,501,719 |
December – 2026 |
$(741,886 ) |
7
MFS Government Securities Fund
Portfolio of Investments (unaudited) – continued
|
Futures Contracts - continued |
||||||
|
Description |
Long/ Short |
Currency |
Contracts |
Notional Amount |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
|
Liability Derivatives - continued |
||||||
|
Interest Rate Futures - continued |
||||||
|
U.S. Treasury Note 2 yr |
Long |
USD |
3,023 |
$620,423,519 |
December – 2026 |
$(1,197,993 ) |
|
U.S. Treasury Note 5 yr |
Long |
USD |
2,661 |
281,276,015 |
December – 2026 |
(1,194,403 ) |
|
U.S. Treasury Ultra Bond 30 yr |
Long |
USD |
344 |
37,850,750 |
December – 2026 |
(264,238 ) |
|
$(3,398,520 ) |
||||||
|
Cleared Swap Agreements |
||||||||
|
Maturity
Date |
Notional
Amount |
Counterparty |
Cash Flows
to Receive/
Frequency |
Cash Flows
to Pay/
Frequency |
Unrealized
Appreciation
(Depreciation) |
Net
Unamortized
Upfront
Payments
(Receipts) |
Value |
|
|
Asset Derivatives |
||||||||
|
Interest Rate Swaps |
||||||||
|
5/01/28 |
USD |
194,750,000 |
centrally cleared |
1-day SOFR / Annually |
3.7185% / Annually |
$2,373,173 |
$— |
$2,373,173 |
|
8/31/28 |
USD |
302,043,000 |
centrally cleared |
1-day SOFR / Annually |
4.089% / Annually |
710,583 |
— |
710,583 |
|
1/09/29 |
USD |
100,500,000 |
centrally cleared |
1-day SOFR / Annually |
3.35% / Annually |
2,100,961 |
— |
2,100,961 |
|
4/30/29 |
USD |
97,620,000 |
centrally cleared |
1-day SOFR / Annually |
3.637% / Annually |
1,414,518 |
— |
1,414,518 |
|
1/14/31 |
USD |
60,400,000 |
centrally cleared |
1-day SOFR / Annually |
3.5105% / Annually |
1,758,080 |
— |
1,758,080 |
|
6/12/33 |
USD |
47,552,000 |
centrally cleared |
1-day SOFR / Annually |
4.036% / Annually |
614,733 |
— |
614,733 |
|
$8,972,048 |
$— |
$8,972,048 |
||||||
At August 31, 2026, the fund had liquid securities collateral with an aggregate value of $25,974,193 to cover any collateral or margin obligations for certain derivative contracts.
See Notes to Financial Statements
8
MFS Government Securities Fund
Financial Statements | Statement of Assets and Liabilities
This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.
|
At 8/31/26 (unaudited) Assets |
|
|
Investments in unaffiliated issuers, at value (identified cost, $1,885,670,923) |
$1,782,042,150 |
|
Investments in affiliated issuers, at value (identified cost, $159,900,949) |
159,908,472 |
|
Receivables for |
|
|
Net daily variation margin on open cleared swap agreements |
1,070,885 |
|
Investments sold |
6,500,337 |
|
Fund shares sold |
508,379 |
|
Interest |
8,016,572 |
|
Other assets |
13,534 |
|
Total assets |
$1,958,060,329 |
|
Liabilities |
|
|
Payable to custodian |
$64,751 |
|
Payables for |
|
|
Distributions |
183,595 |
|
Due to cleared swap brokers |
162,850 |
|
Net daily variation margin on open futures contracts |
867,068 |
|
Investments purchased |
1,236,340 |
|
TBA purchase commitments |
38,001,771 |
|
Fund shares reacquired |
1,002,388 |
|
Payable to affiliates |
|
|
Investment adviser |
76,013 |
|
Administrative services fee |
2,945 |
|
Shareholder servicing costs |
188,926 |
|
Distribution and service fees |
10,723 |
|
Accrued expenses and other liabilities |
116,926 |
|
Total liabilities |
$41,914,296 |
|
Net assets |
$1,916,146,033 |
|
Net assets consist of |
|
|
Paid-in capital |
$2,361,506,144 |
|
Total distributable earnings (loss) |
(445,360,111 ) |
|
Net assets |
$1,916,146,033 |
|
Shares of beneficial interest outstanding |
227,217,065 |
|
Net assets |
Shares
outstanding |
Net asset value
per share (a) |
|
|
Class A |
$295,113,440 |
34,957,315 |
$8.44 |
|
Class B |
134,983 |
16,012 |
8.43 |
|
Class C |
3,664,728 |
433,305 |
8.46 |
|
Class I |
244,415,680 |
29,003,094 |
8.43 |
|
Class R1 |
588,934 |
69,820 |
8.44 |
|
Class R2 |
32,460,998 |
3,849,372 |
8.43 |
|
Class R3 |
14,234,194 |
1,686,851 |
8.44 |
|
Class R4 |
22,262,105 |
2,637,817 |
8.44 |
|
Class R6 |
1,303,270,971 |
154,563,479 |
8.43 |
|
(a) |
Maximum offering price per share was equal to the net asset value per share for all share classes, except for Class A, for which the maximum offering price per share was $8.81 [100 / 95.75 x $8.44]. On sales of $100,000 or more, the maximum offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A, Class B, and Class C shares. Redemption price per share was equal to the net asset value per share for Classes I, R1, R2, R3, R4, and R6. |
See Notes to Financial Statements
9
MFS Government Securities Fund
Financial Statements | Statement of Operations
This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.
|
Six months ended 8/31/26 (unaudited) Net investment income (loss) |
|
|
Income |
|
|
Interest |
$38,963,147 |
|
Dividends from affiliated issuers |
1,395,551 |
|
Total investment income |
$40,358,698 |
|
Expenses |
|
|
Management fee |
$3,669,118 |
|
Distribution and service fees |
513,744 |
|
Shareholder servicing costs |
478,671 |
|
Administrative services fee |
136,922 |
|
Independent Trustees' compensation |
20,295 |
|
Custodian fee |
66,557 |
|
Shareholder communications |
23,178 |
|
Audit and tax fees |
42,624 |
|
Legal fees |
4,657 |
|
Miscellaneous |
139,680 |
|
Total expenses |
$5,095,446 |
|
Fees paid indirectly |
(639 ) |
|
Reduction of expenses by investment adviser and distributor |
(135,403 ) |
|
Net expenses |
$4,959,404 |
|
Net investment income (loss) |
$35,399,294 |
|
Realized and unrealized gain (loss) |
|
|
Realized gain (loss) (identified cost basis) |
|
|
Unaffiliated issuers |
$(6,233,524 ) |
|
Affiliated issuers |
15,725 |
|
Futures contracts |
(31,375,851 ) |
|
Swap agreements |
1,925,809 |
|
Foreign currency |
(3 ) |
|
Net realized gain (loss) |
$(35,667,844 ) |
|
Change in unrealized appreciation or depreciation |
|
|
Unaffiliated issuers |
$(53,112,086 ) |
|
Affiliated issuers |
2,978 |
|
Futures contracts |
(7,638,114 ) |
|
Swap agreements |
10,266,530 |
|
Net unrealized gain (loss) |
$(50,480,692 ) |
|
Net realized and unrealized gain (loss) |
$(86,148,536 ) |
|
Change in net assets from operations |
$(50,749,242 ) |
See Notes to Financial Statements
10
MFS Government Securities Fund
Financial Statements | Statements of Changes in Net Assets
These statements describe the increases and/or decreases in net assets resulting from operations, any distributions, and any shareholder transactions.
|
Six months ended |
Year ended |
|
|
(unaudited) |
|
|
|
Change in net assets |
||
|
From operations |
||
|
Net investment income (loss) |
$35,399,294 |
$69,476,210 |
|
Net realized gain (loss) |
(35,667,844 ) |
6,714,110 |
|
Net unrealized gain (loss) |
(50,480,692 ) |
36,959,563 |
|
Change in net assets from operations |
$(50,749,242 ) |
$113,149,883 |
|
Total distributions to shareholders |
$(37,481,697 ) |
$(73,481,884 ) |
|
Change in net assets from fund share transactions |
$(17,604,454 ) |
$(20,315,781 ) |
|
Total change in net assets |
$(105,835,393 ) |
$19,352,218 |
|
Net assets |
||
|
At beginning of period |
2,021,981,426 |
2,002,629,208 |
|
At end of period |
$1,916,146,033 |
$2,021,981,426 |
See Notes to Financial Statements
11
MFS Government Securities Fund
Financial Statements | Financial Highlights
The financial highlights table is intended to help you understand the fund's financial performance for the semiannual period and the past 5 fiscal years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
|
Class A |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$8.83 |
$8.66 |
$8.54 |
$8.69 |
$9.81 |
$10.15 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.15 |
$0.28 |
$0.28 |
$0.25 |
$0.15 |
$0.07 |
|
Net realized and unrealized gain (loss) |
(0.39 ) |
0.19 |
0.16 |
(0.12 ) |
(1.11 ) |
(0.31 ) |
|
Total from investment operations |
$(0.24 ) |
$0.47 |
$0.44 |
$0.13 |
$(0.96 ) |
$(0.24 ) |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$(0.15 ) |
$(0.30 ) |
$(0.32 ) |
$(0.28 ) |
$(0.16 ) |
$(0.10 ) |
|
Net asset value, end of period (x) |
$8.44 |
$8.83 |
$8.66 |
$8.54 |
$8.69 |
$9.81 |
|
Total return (%) (r)(s)(t)(x) |
(2.67 )(n) |
5.57 |
5.23 |
1.51 |
(9.83 ) |
(2.43 ) |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions (f) |
0.78 (a) |
0.78 |
0.78 |
0.78 |
0.78 |
0.79 |
|
Expenses after expense reductions (f) |
0.77 (a) |
0.76 |
0.77 |
0.77 |
0.76 |
0.78 |
|
Net investment income (loss) |
3.36 (a) |
3.29 |
3.26 |
2.89 |
1.63 |
0.73 |
|
Portfolio turnover rate |
87 (n) |
139 |
195 |
195 |
198 |
398 |
|
Net assets at end of period (000 omitted) |
$295,113 |
$330,362 |
$367,305 |
$415,010 |
$468,595 |
$589,493 |
|
Supplemental Rate: |
||||||
|
Portfolio turnover rate (excluding TBA transactions) (e) |
32 (n) |
53 |
66 |
73 |
N/A |
N/A |
See Notes to Financial Statements
12
MFS Government Securities Fund
Financial Highlights - continued
|
Class B |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$8.82 |
$8.65 |
$8.53 |
$8.68 |
$9.80 |
$10.14 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.11 |
$0.22 |
$0.22 |
$0.18 |
$0.08 |
$(0.00 )(w) |
|
Net realized and unrealized gain (loss) |
(0.38 ) |
0.19 |
0.15 |
(0.12 ) |
(1.11 ) |
(0.32 ) |
|
Total from investment operations |
$(0.27 ) |
$0.41 |
$0.37 |
$0.06 |
$(1.03 ) |
$(0.32 ) |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$(0.12 ) |
$(0.24 ) |
$(0.25 ) |
$(0.21 ) |
$(0.09 ) |
$(0.02 ) |
|
Net asset value, end of period (x) |
$8.43 |
$8.82 |
$8.65 |
$8.53 |
$8.68 |
$9.80 |
|
Total return (%) (r)(s)(t)(x) |
(3.04 )(n) |
4.79 |
4.45 |
0.75 |
(10.52 ) |
(3.16 ) |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions (f) |
1.53 (a) |
1.53 |
1.53 |
1.53 |
1.53 |
1.54 |
|
Expenses after expense reductions (f) |
1.52 (a) |
1.52 |
1.52 |
1.52 |
1.51 |
1.53 |
|
Net investment income (loss) |
2.61 (a) |
2.55 |
2.51 |
2.12 |
0.83 |
(0.02 ) |
|
Portfolio turnover rate |
87 (n) |
139 |
195 |
195 |
198 |
398 |
|
Net assets at end of period (000 omitted) |
$135 |
$234 |
$535 |
$936 |
$1,529 |
$2,757 |
|
Supplemental Rate: |
||||||
|
Portfolio turnover rate (excluding TBA transactions) (e) |
32 (n) |
53 |
66 |
73 |
N/A |
N/A |
|
Class C |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$8.85 |
$8.67 |
$8.55 |
$8.70 |
$9.83 |
$10.17 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.11 |
$0.22 |
$0.22 |
$0.18 |
$0.07 |
$(0.00 )(w) |
|
Net realized and unrealized gain (loss) |
(0.38 ) |
0.20 |
0.15 |
(0.12 ) |
(1.11 ) |
(0.32 ) |
|
Total from investment operations |
$(0.27 ) |
$0.42 |
$0.37 |
$0.06 |
$(1.04 ) |
$(0.32 ) |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$(0.12 ) |
$(0.24 ) |
$(0.25 ) |
$(0.21 ) |
$(0.09 ) |
$(0.02 ) |
|
Net asset value, end of period (x) |
$8.46 |
$8.85 |
$8.67 |
$8.55 |
$8.70 |
$9.83 |
|
Total return (%) (r)(s)(t)(x) |
(3.03 )(n) |
4.90 |
4.44 |
0.76 |
(10.58 ) |
(3.15 ) |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions (f) |
1.53 (a) |
1.53 |
1.53 |
1.53 |
1.53 |
1.54 |
|
Expenses after expense reductions (f) |
1.52 (a) |
1.51 |
1.52 |
1.52 |
1.51 |
1.53 |
|
Net investment income (loss) |
2.61 (a) |
2.53 |
2.51 |
2.13 |
0.83 |
(0.01 ) |
|
Portfolio turnover rate |
87 (n) |
139 |
195 |
195 |
198 |
398 |
|
Net assets at end of period (000 omitted) |
$3,665 |
$3,454 |
$2,910 |
$3,704 |
$5,146 |
$10,187 |
|
Supplemental Rate: |
||||||
|
Portfolio turnover rate (excluding TBA transactions) (e) |
32 (n) |
53 |
66 |
73 |
N/A |
N/A |
See Notes to Financial Statements
13
MFS Government Securities Fund
Financial Highlights - continued
|
Class I |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$8.82 |
$8.64 |
$8.52 |
$8.67 |
$9.80 |
$10.14 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.16 |
$0.31 |
$0.30 |
$0.27 |
$0.17 |
$0.10 |
|
Net realized and unrealized gain (loss) |
(0.38 ) |
0.19 |
0.16 |
(0.12 ) |
(1.12 ) |
(0.32 ) |
|
Total from investment operations |
$(0.22 ) |
$0.50 |
$0.46 |
$0.15 |
$(0.95 ) |
$(0.22 ) |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$(0.17 ) |
$(0.32 ) |
$(0.34 ) |
$(0.30 ) |
$(0.18 ) |
$(0.12 ) |
|
Net asset value, end of period (x) |
$8.43 |
$8.82 |
$8.64 |
$8.52 |
$8.67 |
$9.80 |
|
Total return (%) (r)(s)(t)(x) |
(2.56 )(n) |
5.95 |
5.49 |
1.76 |
(9.71 ) |
(2.18 ) |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions (f) |
0.53 (a) |
0.53 |
0.53 |
0.53 |
0.53 |
0.53 |
|
Expenses after expense reductions (f) |
0.52 (a) |
0.51 |
0.52 |
0.52 |
0.51 |
0.52 |
|
Net investment income (loss) |
3.61 (a) |
3.53 |
3.51 |
3.15 |
1.88 |
0.97 |
|
Portfolio turnover rate |
87 (n) |
139 |
195 |
195 |
198 |
398 |
|
Net assets at end of period (000 omitted) |
$244,416 |
$257,737 |
$234,727 |
$358,416 |
$233,540 |
$274,851 |
|
Supplemental Rate: |
||||||
|
Portfolio turnover rate (excluding TBA transactions) (e) |
32 (n) |
53 |
66 |
73 |
N/A |
N/A |
|
Class R1 |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$8.82 |
$8.65 |
$8.53 |
$8.68 |
$9.80 |
$10.14 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.11 |
$0.22 |
$0.22 |
$0.18 |
$0.08 |
$(0.00 )(w) |
|
Net realized and unrealized gain (loss) |
(0.37 ) |
0.19 |
0.15 |
(0.12 ) |
(1.11 ) |
(0.32 ) |
|
Total from investment operations |
$(0.26 ) |
$0.41 |
$0.37 |
$0.06 |
$(1.03 ) |
$(0.32 ) |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$(0.12 ) |
$(0.24 ) |
$(0.25 ) |
$(0.21 ) |
$(0.09 ) |
$(0.02 ) |
|
Net asset value, end of period (x) |
$8.44 |
$8.82 |
$8.65 |
$8.53 |
$8.68 |
$9.80 |
|
Total return (%) (r)(s)(t)(x) |
(2.93 )(n) |
4.79 |
4.45 |
0.75 |
(10.52 ) |
(3.16 ) |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions (f) |
1.54 (a) |
1.53 |
1.53 |
1.53 |
1.53 |
1.54 |
|
Expenses after expense reductions (f) |
1.52 (a) |
1.52 |
1.52 |
1.52 |
1.51 |
1.53 |
|
Net investment income (loss) |
2.63 (a) |
2.58 |
2.51 |
2.15 |
0.89 |
(0.02 ) |
|
Portfolio turnover rate |
87 (n) |
139 |
195 |
195 |
198 |
398 |
|
Net assets at end of period (000 omitted) |
$589 |
$782 |
$1,501 |
$1,592 |
$1,587 |
$1,960 |
|
Supplemental Rate: |
||||||
|
Portfolio turnover rate (excluding TBA transactions) (e) |
32 (n) |
53 |
66 |
73 |
N/A |
N/A |
See Notes to Financial Statements
14
MFS Government Securities Fund
Financial Highlights - continued
|
Class R2 |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$8.82 |
$8.65 |
$8.53 |
$8.68 |
$9.80 |
$10.14 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.13 |
$0.26 |
$0.26 |
$0.23 |
$0.13 |
$0.05 |
|
Net realized and unrealized gain (loss) |
(0.38 ) |
0.19 |
0.16 |
(0.12 ) |
(1.11 ) |
(0.32 ) |
|
Total from investment operations |
$(0.25 ) |
$0.45 |
$0.42 |
$0.11 |
$(0.98 ) |
$(0.27 ) |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$(0.14 ) |
$(0.28 ) |
$(0.30 ) |
$(0.26 ) |
$(0.14 ) |
$(0.07 ) |
|
Net asset value, end of period (x) |
$8.43 |
$8.82 |
$8.65 |
$8.53 |
$8.68 |
$9.80 |
|
Total return (%) (r)(s)(t)(x) |
(2.80 )(n) |
5.31 |
4.97 |
1.26 |
(10.07 ) |
(2.67 ) |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions (f) |
1.03 (a) |
1.03 |
1.03 |
1.03 |
1.03 |
1.04 |
|
Expenses after expense reductions (f) |
1.02 (a) |
1.02 |
1.02 |
1.02 |
1.01 |
1.03 |
|
Net investment income (loss) |
3.12 (a) |
3.04 |
3.01 |
2.64 |
1.39 |
0.48 |
|
Portfolio turnover rate |
87 (n) |
139 |
195 |
195 |
198 |
398 |
|
Net assets at end of period (000 omitted) |
$32,461 |
$33,660 |
$37,232 |
$36,279 |
$40,295 |
$49,375 |
|
Supplemental Rate: |
||||||
|
Portfolio turnover rate (excluding TBA transactions) (e) |
32 (n) |
53 |
66 |
73 |
N/A |
N/A |
|
Class R3 |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$8.83 |
$8.65 |
$8.53 |
$8.68 |
$9.81 |
$10.15 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.15 |
$0.29 |
$0.28 |
$0.25 |
$0.15 |
$0.07 |
|
Net realized and unrealized gain (loss) |
(0.39 ) |
0.19 |
0.16 |
(0.12 ) |
(1.12 ) |
(0.31 ) |
|
Total from investment operations |
$(0.24 ) |
$0.48 |
$0.44 |
$0.13 |
$(0.97 ) |
$(0.24 ) |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$(0.15 ) |
$(0.30 ) |
$(0.32 ) |
$(0.28 ) |
$(0.16 ) |
$(0.10 ) |
|
Net asset value, end of period (x) |
$8.44 |
$8.83 |
$8.65 |
$8.53 |
$8.68 |
$9.81 |
|
Total return (%) (r)(s)(t)(x) |
(2.67 )(n) |
5.69 |
5.23 |
1.51 |
(9.93 ) |
(2.43 ) |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions (f) |
0.78 (a) |
0.78 |
0.78 |
0.78 |
0.78 |
0.79 |
|
Expenses after expense reductions (f) |
0.77 (a) |
0.77 |
0.77 |
0.77 |
0.76 |
0.78 |
|
Net investment income (loss) |
3.37 (a) |
3.29 |
3.26 |
2.89 |
1.62 |
0.73 |
|
Portfolio turnover rate |
87 (n) |
139 |
195 |
195 |
198 |
398 |
|
Net assets at end of period (000 omitted) |
$14,234 |
$17,078 |
$20,145 |
$22,264 |
$27,808 |
$38,286 |
|
Supplemental Rate: |
||||||
|
Portfolio turnover rate (excluding TBA transactions) (e) |
32 (n) |
53 |
66 |
73 |
N/A |
N/A |
See Notes to Financial Statements
15
MFS Government Securities Fund
Financial Highlights - continued
|
Class R4 |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$8.83 |
$8.65 |
$8.54 |
$8.69 |
$9.81 |
$10.15 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.16 |
$0.31 |
$0.30 |
$0.27 |
$0.17 |
$0.10 |
|
Net realized and unrealized gain (loss) |
(0.38 ) |
0.19 |
0.15 |
(0.12 ) |
(1.11 ) |
(0.32 ) |
|
Total from investment operations |
$(0.22 ) |
$0.50 |
$0.45 |
$0.15 |
$(0.94 ) |
$(0.22 ) |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$(0.17 ) |
$(0.32 ) |
$(0.34 ) |
$(0.30 ) |
$(0.18 ) |
$(0.12 ) |
|
Net asset value, end of period (x) |
$8.44 |
$8.83 |
$8.65 |
$8.54 |
$8.69 |
$9.81 |
|
Total return (%) (r)(s)(t)(x) |
(2.55 )(n) |
5.95 |
5.36 |
1.76 |
(9.60 ) |
(2.18 ) |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions (f) |
0.53 (a) |
0.53 |
0.53 |
0.53 |
0.53 |
0.54 |
|
Expenses after expense reductions (f) |
0.52 (a) |
0.51 |
0.52 |
0.52 |
0.51 |
0.53 |
|
Net investment income (loss) |
3.62 (a) |
3.53 |
3.51 |
3.14 |
1.87 |
0.98 |
|
Portfolio turnover rate |
87 (n) |
139 |
195 |
195 |
198 |
398 |
|
Net assets at end of period (000 omitted) |
$22,262 |
$24,638 |
$23,195 |
$42,489 |
$42,785 |
$53,252 |
|
Supplemental Rate: |
||||||
|
Portfolio turnover rate (excluding TBA transactions) (e) |
32 (n) |
53 |
66 |
73 |
N/A |
N/A |
|
Class R6 |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$8.82 |
$8.65 |
$8.53 |
$8.68 |
$9.80 |
$10.14 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.16 |
$0.31 |
$0.31 |
$0.28 |
$0.18 |
$0.11 |
|
Net realized and unrealized gain (loss) |
(0.38 ) |
0.19 |
0.16 |
(0.12 ) |
(1.11 ) |
(0.32 ) |
|
Total from investment operations |
$(0.22 ) |
$0.50 |
$0.47 |
$0.16 |
$(0.93 ) |
$(0.21 ) |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$(0.17 ) |
$(0.33 ) |
$(0.35 ) |
$(0.31 ) |
$(0.19 ) |
$(0.13 ) |
|
Net asset value, end of period (x) |
$8.43 |
$8.82 |
$8.65 |
$8.53 |
$8.68 |
$9.80 |
|
Total return (%) (r)(s)(t)(x) |
(2.51 )(n) |
5.93 |
5.59 |
1.87 |
(9.52 ) |
(2.08 ) |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions (f) |
0.44 (a) |
0.44 |
0.43 |
0.43 |
0.43 |
0.44 |
|
Expenses after expense reductions (f) |
0.42 (a) |
0.42 |
0.42 |
0.41 |
0.41 |
0.42 |
|
Net investment income (loss) |
3.71 (a) |
3.62 |
3.61 |
3.25 |
1.98 |
1.08 |
|
Portfolio turnover rate |
87 (n) |
139 |
195 |
195 |
198 |
398 |
|
Net assets at end of period (000 omitted) |
$1,303,271 |
$1,354,036 |
$1,315,080 |
$1,265,255 |
$1,308,767 |
$1,561,273 |
|
Supplemental Rate: |
||||||
|
Portfolio turnover rate (excluding TBA transactions) (e) |
32 (n) |
53 |
66 |
73 |
N/A |
N/A |
See Notes to Financial Statements
16
MFS Government Securities Fund
Financial Highlights - continued
|
(a) |
Annualized. |
|
(d) |
Per share data is based on average shares outstanding. |
|
(e) |
Portfolio turnover rate (excluding TBA transactions) is disclosed beginning with the period ending February 29, 2024. Refer to Note 2 for more information on TBA transactions and mortgage dollar rolls. |
|
(f) |
Ratios do not reflect reductions from fees paid indirectly, if applicable. See Note 2 in the Notes to Financial Statements for additional information. |
|
(n) |
Not annualized. |
|
(r) |
Certain expenses have been reduced without which performance would have been lower. |
|
(s) |
From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
|
(t) |
Total returns do not include any applicable sales charges. |
|
(w) |
Per share amount was less than $0.01. |
|
(x) |
The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
See Notes to Financial Statements
17
MFS Government Securities Fund
Notes to Financial Statements (unaudited)
(1) Business and Organization
MFS Government Securities Fund (the fund) is a diversified series of MFS Series Trust XIII (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company.
The fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies.
(2) Significant Accounting Policies
General — The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued.
Segment Reporting — An operating segment is defined in FASB Accounting Standards Codification Topic 280, Segment Reporting as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the entity’s chief operating decision maker (CODM) in making resource allocation decisions and assessing segment performance, and for which discrete financial information is available. The fund represents a single operating segment and the Chairman’s Committee of the fund's adviser acts as the segment’s CODM. The fund’s total returns, expense ratios, and changes in net assets which are used by the CODM to assess segment performance and to make resource allocation decisions to the segment are consistent with that presented within the fund’s financial statements.
Balance Sheet Offsetting — The fund's accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement, or similar agreement, does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the fund and the applicable counterparty. The fund's right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject. Balance sheet offsetting disclosures, to the extent applicable to the fund, have been included in the fund’s Significant Accounting Policies note under the captions for each of the fund’s in-scope financial instruments and transactions.
Investment Valuations — Subject to its oversight, the fund's Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments to MFS as the fund's adviser, pursuant to the fund’s valuation policy and procedures which have been adopted by the adviser and approved by the Board. In accordance with Rule 2a-5 under the Investment Company Act of 1940, the Board of Trustees designated the adviser as the “valuation designee” of the fund. If the adviser, as valuation designee, determines that reliable market quotations are not readily available for an investment, the investment is valued at fair value as determined in good faith by the adviser in accordance with the adviser’s fair valuation policy and procedures.
Under the fund's valuation policy and procedures, debt instruments and floating rate loans, including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less may be valued at amortized cost, which approximates market value. Exchange-traded options are generally valued at the last sale or official closing price on their primary exchange as provided by a third-party pricing service. Exchange-traded options for which there were no sales reported that day are generally valued at the last daily bid quotation on their primary exchange as provided by a third-party pricing service. For put options, the position may be valued at the last daily ask quotation if there are no trades reported during the day. Options not traded on an exchange are generally valued at a broker/dealer bid quotation. Foreign currency options are generally valued at valuations provided by a third-party pricing service. Futures contracts are generally valued at last posted settlement price on their primary exchange as provided by a third-party pricing service. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation on their primary exchange as provided by a third-party pricing service. Swap agreements are generally valued using valuations provided by a third-party pricing service, which for cleared swaps includes an evaluation of any trading activity at the clearinghouses. Open-end investment companies are generally valued at net asset value per share.
Under the fund’s valuation policy and procedures, market quotations are not considered to be readily available for debt instruments, floating rate loans, and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services or otherwise determined by the adviser in accordance with the adviser’s fair valuation policy and
18
MFS Government Securities Fund
Notes to Financial Statements (unaudited) - continued
procedures. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. In determining values, third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, spreads and other market data. Pricing services generally value debt instruments assuming orderly transactions of institutional round lot sizes, but a fund may hold or transact in such securities in smaller, odd lot sizes. In instances where a fund holds an odd lot size position in a debt instrument, such position will typically be valued using the pricing agent’s institutional round lot price for the debt instrument. Odd lots may trade at lower prices than institutional round lots, and the fund may receive different prices when it sells odd lot positions than it would receive for sales of institutional round lot positions. An investment may also be valued at fair value if the adviser determines that the investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halt of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.
Various inputs are used in determining the value of the fund's assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes significant unobservable inputs, which may include the adviser's own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments, such as futures contracts and swap agreements. The following is a summary of the levels used as of August 31, 2026 in valuing the fund's assets and liabilities:
|
Financial Instruments |
Level 1 |
Level 2 |
Level 3 |
Total |
|
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents |
$— |
$527,648,389 |
$— |
$527,648,389 |
|
U.S. Corporate Bonds |
— |
1,904,355 |
— |
1,904,355 |
|
Residential Mortgage-Backed Securities |
— |
1,147,289,821 |
— |
1,147,289,821 |
|
Commercial Mortgage-Backed Securities |
— |
45,451,571 |
— |
45,451,571 |
|
Asset-Backed Securities (including CDOs) |
— |
59,748,014 |
— |
59,748,014 |
|
Investment Companies |
159,908,472 |
— |
— |
159,908,472 |
|
Total |
$159,908,472 |
$1,782,042,150 |
$— |
$1,941,950,622 |
|
Other Financial Instruments |
||||
|
Futures Contracts – Assets |
$111,844 |
$— |
$— |
$111,844 |
|
Futures Contracts – Liabilities |
(3,398,520 ) |
— |
— |
(3,398,520 ) |
|
Swap Agreements – Assets |
— |
8,972,048 |
— |
8,972,048 |
For further information regarding security characteristics, see the Portfolio of Investments.
Foreign Currency Translation — Purchases and sales of foreign investments, income, and expenses are converted into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions or on the reporting date for foreign denominated receivables and payables. Gains and losses attributable to foreign currency exchange rates on sales of securities are recorded for financial statement purposes as net realized gains and losses on investments. Gains and losses attributable to foreign exchange rate movements on receivables, payables, income and expenses are recorded for financial statement purposes as foreign currency transaction gains and losses. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.
Derivatives — The fund uses derivatives primarily to increase or decrease exposure to a particular market or segment of the market, or security, to increase or decrease interest rate or currency exposure, or as alternatives to direct investments. Derivatives are used for hedging or non-hedging purposes. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. When the fund uses derivatives as an investment to increase market exposure, or for hedging purposes, gains and losses from derivative instruments may be substantially greater than the derivative’s original cost.
19
MFS Government Securities Fund
Notes to Financial Statements (unaudited) - continued
The derivative instruments used by the fund during the period were purchased options, futures contracts, and swap agreements. Depending on the type of derivative, a fund may exit a derivative position by entering into an offsetting transaction with a counterparty or exchange, negotiating an agreement with the derivative counterparty, or novating the position to a third party. The fund may be unable to promptly close out a futures position in instances where the daily fluctuation in the price for that type of future exceeds the daily limit set by the exchange. The fund's period end derivatives, as presented in the Portfolio of Investments and the associated Derivative Contract tables, generally are indicative of the volume of its derivative activity during the period.
The following table presents, by major type of derivative contract, the fair value, on a gross basis, of the asset and liability components of derivatives held by the fund at August 31, 2026 as reported in the Statement of Assets and Liabilities:
|
Fair Value (a) |
|||
|
Risk |
Derivative Contracts |
Asset Derivatives |
Liability Derivatives |
|
Interest Rate |
Futures Contracts |
$111,844 |
$(3,398,520) |
|
Interest Rate |
Cleared Swap Agreements |
8,972,048 |
— |
|
Total |
$9,083,892 |
$(3,398,520) |
|
(a) Values presented in this table for futures contracts and cleared swap agreements correspond to the values reported in the Portfolio of Investments. Only the current day net variation margin for futures contracts and cleared swap agreements is reported separately within the Statement of Assets and Liabilities.
The following table presents, by major type of derivative contract, the realized gain (loss) on derivatives held by the fund for the six months ended August 31, 2026 as reported in the Statement of Operations:
|
Risk |
Futures
Contracts |
Swap
Agreements |
Unaffiliated Issuers
(Purchased
Options) |
|
Interest Rate |
$(31,375,851 ) |
$1,925,809 |
$(12,130 ) |
The following table presents, by major type of derivative contract, the change in unrealized appreciation or depreciation on derivatives held by the fund for the six months ended August 31, 2026 as reported in the Statement of Operations:
|
Risk |
Futures
Contracts |
Swap
Agreements |
Unaffiliated Issuers
(Purchased
Options) |
|
Interest Rate |
$(7,638,114 ) |
$10,266,530 |
$78,916 |
Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain, but not all, uncleared derivatives, the fund attempts to reduce its exposure to counterparty credit risk whenever possible by entering into an ISDA Master Agreement on a bilateral basis. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a specified deterioration in the credit quality of the other party. Upon an event of default or a termination of the ISDA Master Agreement, the non-defaulting party has the right to close out all transactions traded under such agreement and to net amounts owed under each agreement to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the fund's credit risk to such counterparty equal to any amounts payable by the fund under the applicable transactions, if any.
Collateral and margin requirements differ by type of derivative. For exchange-traded and cleared derivatives (e.g., futures contracts, cleared swaps, and exchange-traded options), margin requirements are set by the exchange or clearing broker and the clearing house and collateral, in the form of cash or securities, is posted by the fund directly with the exchange or clearing broker. Collateral terms are counterparty agreement specific for uncleared derivatives (e.g., forward foreign currency exchange contracts, uncleared swap agreements, and uncleared options). Collateral, in the form of cash and securities, is held in segregated accounts with the fund's custodian in connection with these agreements. For derivatives traded under an ISDA Master Agreement, which contains a credit support annex, the collateral requirements are netted across all transactions traded under such counterparty-specific agreement and an amount is posted from one party to the other to collateralize such obligations. Cash that has been segregated or delivered to brokers to cover the fund's collateral or margin obligations under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities as cash collateral posted for uncleared derivatives and/or cash pledged for exchange-traded or cleared derivatives. Securities pledged as collateral or margin for the same purpose, if any, are noted in the Portfolio of Investments. The fund may be required to make payments of interest on uncovered collateral or margin obligations with the broker. Any such payments are included in “Miscellaneous” expense in the Statement of Operations.
20
MFS Government Securities Fund
Notes to Financial Statements (unaudited) - continued
Purchased Options — The fund purchased call and put options for a premium. Purchased call and put options entitle the holder to buy and sell a specified number of shares or units of a particular security, currency or index at a specified price at a specified date or within a specified period of time. Purchasing call options may hedge against an anticipated increase in the dollar cost of securities or currency to be acquired or increase the fund’s exposure to an underlying instrument. Purchasing put options may hedge against an anticipated decline in the value of portfolio securities or currency or decrease the fund's exposure to an underlying instrument.
A purchased swaption represents an option that gives the fund as purchaser the right, but not the obligation, to enter into a pre-defined interest rate or credit default swap agreement with the counterparty at a specified rate at a specified date or within a specified period of time. The fund enters into swaptions primarily to preserve a return or spread on a particular investment or portion of the fund’s investments, to adjust the fund’s sensitivity to underlying risk factors or to protect against an increase or decrease in the price of securities.
The premium paid is initially recorded as an investment in the Statement of Assets and Liabilities. That investment is subsequently marked-to-market daily with the difference between the premium paid and the market value of the purchased option being recorded as unrealized appreciation or depreciation. Premiums paid for purchased call and put options which have expired are treated as realized losses on investments in the Statement of Operations. Upon the exercise or closing of a purchased call option, the premium paid is added to the cost of the security or financial instrument purchased. Upon the exercise or closing of a purchased put option, the premium paid is offset against the proceeds on the sale of the underlying security or financial instrument in order to determine the realized gain or loss on investments.
Whether or not the option is exercised, the fund's maximum risk of loss from purchasing an option is the amount of premium paid. All option contracts involve credit risk if the counterparty to the option contract fails to perform. For uncleared options, this risk is mitigated in cases where there is an ISDA Master Agreement between the fund and the counterparty providing for netting as described above and, where applicable, by the posting of collateral by the counterparty to the fund to cover the fund’s exposure to the counterparty under such ISDA Master Agreement.
Futures Contracts — The fund entered into futures contracts which may be used to hedge against or obtain broad market exposure, interest rate exposure, or to manage duration. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.
Upon entering into a futures contract, the fund is required to deposit with the broker, either in cash or securities, an initial margin in an amount equal to a specified percentage of the notional amount of the contract. Subsequent payments (variation margin) are made or received by the fund each day, depending on the daily fluctuations in the value of the contract, and are recorded for financial statement purposes as unrealized gain or loss by the fund until the contract is closed or expires at which point the gain or loss on futures contracts is realized.
The fund bears the risk of interest rates or securities prices moving unexpectedly, in which case, the fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. While futures contracts may present less counterparty risk to the fund since the contracts are exchange traded and the exchange’s clearinghouse guarantees payments to the broker, there is still counterparty credit risk due to the insolvency of the broker. The fund's maximum risk of loss due to counterparty credit risk is equal to the margin posted by the fund to the broker plus any gains or minus any losses on the outstanding futures contracts.
Swap Agreements — The fund entered into swap agreements which generally involve a periodic exchange of cash payments on a net basis, at specified intervals or upon the occurrence of specified events, between the fund and a counterparty. Certain swap agreements may be entered into as a bilateral contract (“uncleared swaps”) while others are required to be centrally cleared (“cleared swaps”).
Both cleared and uncleared swap agreements are marked to market daily. The value of uncleared swap agreements is reported in the Statement of Assets and Liabilities as “Uncleared swaps, at value” which includes any related interest accruals to be paid or received by the fund. For cleared swaps, payments (variation margin) are made or received by the fund each day, depending on the daily fluctuations in the value of the cleared swap, such that only the current day net receivable or payable for variation margin is reported in the Statement of Assets and Liabilities.
For both cleared and uncleared swaps, premiums paid or received at the inception of the agreements are amortized over the term of the agreement as realized gain or loss on swap agreements in the Statement of Operations. The periodic exchange of net cash payments, as well as any liquidation payment received or made upon early termination, are recorded as a realized gain or loss on swap agreements in the Statement of Operations. The change in unrealized appreciation or depreciation on swap agreements in the Statement of Operations reflects the aggregate change over the reporting period in the value of swaps net of any unamortized premiums paid or received.
21
MFS Government Securities Fund
Notes to Financial Statements (unaudited) - continued
Risks related to swap agreements include the possible lack of a liquid market, unfavorable market and interest rate movements of the underlying instrument and the failure of the counterparty to perform under the terms of the agreements. The fund's maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from/paid to the counterparty over the contract's remaining life, to the extent that the amount is positive. To address counterparty risk, uncleared swap agreements are limited to only highly-rated counterparties. Risk is further reduced by having an ISDA Master Agreement (“ISDA”) between the fund and the counterparty and, where applicable, by the posting of collateral by the counterparty to the fund to cover the fund’s exposure to the counterparty under such ISDA. The fund's counterparty risk due to cleared swaps is mitigated by the fact that the clearinghouse is the counterparty to the transaction and the regulatory requirement safeguards in the event of a clearing broker bankruptcy.
The fund entered into interest rate swap agreements in order to manage its exposure to interest rate fluctuations. Interest rate swap agreements involve the periodic exchange of cash flows, between the fund and a counterparty, based on the difference between two interest rates applied to a notional principal amount. The two interest rates exchanged may either be a fixed rate and a floating rate or two floating rates based on different indices.
The fund entered into inflation swap agreements in order to manage its exposure to inflation risk. Inflation swap agreements involve the periodic exchange of cash flows, between the fund and a counterparty, based on the difference between two rates applied to a notional principal amount. The two rates exchanged are generally a fixed rate and a floating rate based on an inflation index.
Mortgage-Backed/Asset-Backed Securities — The fund invests a significant portion of its assets in asset-backed and/or mortgage-backed securities. For these securities, the value of the debt instrument also depends on the credit quality and adequacy of the underlying assets or collateral as well as whether there is a security interest in the underlying assets or collateral. Enforcing rights, if any, against the underlying assets or collateral may be difficult. U.S. Government securities not supported as to the payment of principal or interest by the U.S. Treasury, such as those issued by Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, are subject to greater credit risk than are U.S. Government securities supported by the U.S. Treasury, such as those issued by Ginnie Mae.
Indemnifications — Under the fund's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the fund. Additionally, in the normal course of business, the fund enters into agreements with service providers that may contain indemnification clauses. The fund's maximum exposure under these agreements is unknown as this would involve future claims that may be made against the fund that have not yet occurred.
Investment Transactions and Income — Interest income is recorded on the accrual basis. All premium and discount is amortized or accreted for financial statement purposes in accordance with U.S. generally accepted accounting principles. Interest payments received in additional securities are recorded on the ex-interest date in an amount equal to the value of the security on such date.
The fund may receive proceeds from litigation settlements. Any proceeds received from litigation involving portfolio holdings are reflected in the Statement of Operations in realized gain/loss if the security has been disposed of by the fund or in unrealized gain/loss if the security is still held by the fund. Any other proceeds from litigation not related to portfolio holdings are reflected as other income in the Statement of Operations.
Investment transactions are recorded on the trade date. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.
The fund may purchase or sell mortgage-backed securities on a To Be Announced (“TBA”) basis. A TBA transaction is subject to extended settlement and typically does not designate the actual security to be delivered, but instead includes an approximate principal amount. The price of the TBA security and the date that it will be settled are fixed at the time the transaction is negotiated. The value of the security varies with market fluctuations and no interest accrues to the fund until settlement takes place. TBA purchase and sale commitments are held at carrying amount, which approximates fair value and are categorized as level 2 within the fair value hierarchy and included in TBA purchase and TBA sale commitments in the Statement of Assets and Liabilities, as applicable. Losses may arise as a result of changes in the value of the TBA investment prior to settlement date or due to counterparty non-performance.
The fund may also enter into mortgage dollar rolls, typically TBA dollar rolls, in which the fund sells TBA mortgage-backed securities to financial institutions and simultaneously agrees to repurchase similar (same issuer, type and coupon) securities at a later date at an agreed-upon price. During the period between the sale and repurchase, the fund will not be entitled to receive interest and principal payments on the securities sold. The fund accounts for dollar roll transactions as purchases and sales and realizes gains and losses on these transactions. As such, these transactions may result in an increase to the fund’s portfolio turnover rate. Portfolio turnover rates including and excluding TBA transactions are presented in the Financial Highlights. Dollar roll transactions involve the risk that the market value of the securities that the fund is required to purchase may decline below the agreed upon repurchase price of those securities.
22
MFS Government Securities Fund
Notes to Financial Statements (unaudited) - continued
To mitigate the counterparty credit risk on To Be Announced (“TBA”) transactions, mortgage dollar rolls, and other types of forward settling mortgage-backed and asset-backed security transactions, the fund whenever possible enters into a Master Securities Forward Transaction Agreement (“MSFTA”) on a bilateral basis with each of the counterparties with whom it undertakes a significant volume of transactions. The MSFTA gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a specified deterioration in the credit quality of the other party. Upon an event of default or a termination of the MSFTA, the non-defaulting party has the right to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the MSFTA could result in a reduction of the fund's credit risk to such counterparty equal to any amounts payable by the fund under the applicable transactions, if any.
For mortgage-backed and asset-backed securities traded under a MSFTA, the collateral and margining requirements are contract specific. Collateral amounts across all transactions traded under such agreement are netted and an amount is posted from one party to the other to collateralize such obligations. Cash posted to cover the fund's collateral or margin obligations under a MSFTA, if any, will be reported separately on the Statement of Assets and Liabilities as cash collateral posted. Securities pledged as collateral or margin for the same purpose, if any, are noted in the Portfolio of Investments.
Fees Paid Indirectly — The fund's custody fee may be reduced by a credit earned under an arrangement that measures the value of U.S. dollars deposited with the custodian by the fund. The amount of the credit, for the six months ended August 31, 2026, is shown as a reduction of total expenses in the Statement of Operations.
Tax Matters and Distributions — The fund intends to qualify as a regulated investment company, as defined under Subchapter M of the Internal Revenue Code, and to distribute all of its taxable income, including realized capital gains. As a result, no provision for federal income tax is required. The fund’s federal tax returns, when filed, will remain subject to examination by the Internal Revenue Service for generally a three-year period. Management has analyzed the fund’s tax positions taken on federal and state tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability. Foreign taxes, if any, have been accrued by the fund in the accompanying financial statements in accordance with the applicable foreign tax law. Foreign income taxes may be withheld by certain countries in which the fund invests. Additionally, capital gains realized by the fund on securities issued in or by certain foreign countries may be subject to capital gains tax imposed by those countries.
Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no impact on net assets or net asset value per share. Temporary differences which arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future.
Book/tax differences primarily relate to amortization of premium and accretion of discount of debt securities, wash sale loss deferrals, and derivative transactions.
The tax character of distributions made during the six months ended August 31, 2026 will be determined at fiscal year end. The tax character of distributions declared to shareholders for the last fiscal year is as follows:
|
Year ended
2/28/26 |
|
|
Ordinary income (including any short-term capital gains) |
$73,481,884 |
The federal tax cost and the tax basis components of distributable earnings were as follows:
|
As of 8/31/26 |
|
|
Cost of investments |
$2,053,886,540 |
|
Gross appreciation |
1,935,498 |
|
Gross depreciation |
(113,871,416 ) |
|
Net unrealized appreciation (depreciation) |
$(111,935,918 ) |
|
As of 2/28/26 |
|
|
Undistributed ordinary income |
10,906,216 |
|
Capital loss carryforwards |
(301,851,066 ) |
|
Other temporary differences |
(6,155,092 ) |
|
Net unrealized appreciation (depreciation) |
(60,029,230 ) |
The aggregate cost above includes prior fiscal year end tax adjustments, if applicable.
23
MFS Government Securities Fund
Notes to Financial Statements (unaudited) - continued
As of February 28, 2026, the fund had capital loss carryforwards available to offset future realized gains. These net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses. Such losses are characterized as follows:
|
Short-Term |
$(107,244,460 ) |
|
Long-Term |
(194,606,606 ) |
|
Total |
$(301,851,066 ) |
Multiple Classes of Shares of Beneficial Interest — The fund offers multiple classes of shares, which differ in their respective distribution and service fees. The fund's income and common expenses are allocated to shareholders based on the value of settled shares outstanding of each class. The fund's realized and unrealized gain (loss) are allocated to shareholders based on the daily net assets of each class. Dividends are declared separately for each class. Differences in per share dividend rates are generally due to differences in separate class expenses. Class B and Class C shares will convert to Class A shares approximately eight years after purchase. The fund’s distributions declared to shareholders as reported in the Statements of Changes in Net Assets are presented by class as follows:
|
Six months ended
8/31/26 |
Year ended
2/28/26 |
|
|
Class A |
$5,572,199 |
$12,066,291 |
|
Class B |
2,509 |
10,898 |
|
Class C |
50,881 |
84,121 |
|
Class I |
4,727,561 |
9,080,755 |
|
Class R1 |
8,242 |
24,753 |
|
Class R2 |
554,355 |
1,140,087 |
|
Class R3 |
276,093 |
646,441 |
|
Class R4 |
453,006 |
903,396 |
|
Class R6 |
25,836,851 |
49,525,142 |
|
Total |
$37,481,697 |
$73,481,884 |
(3) Transactions with Affiliates
Investment Adviser — The fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to the fund. The management fee is computed daily and paid monthly at the following annual rates based on the fund's average daily net assets:
|
Up to $1 billion |
0.40% |
|
In excess of $1 billion and up to $2.5 billion |
0.35% |
|
In excess of $2.5 billion and up to $5 billion |
0.30% |
|
In excess of $5 billion |
0.29% |
MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund's Board of Trustees. MFS has also agreed in writing to waive at least 0.01% of its management fee as part of this agreement. The agreement to waive at least 0.01% of the management fee will continue until modified by the fund's Board of Trustees, but such agreement will continue at least until June 30, 2027. For the six months ended August 31, 2026, this management fee reduction amounted to $135,137, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the six months ended August 31, 2026 was equivalent to an annual effective rate of 0.36% of the fund's average daily net assets.
The investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, certain tax reclaim recovery expenses (including contingency fees and closing agreement expenses), and investment-related expenses, such that total fund operating expenses do not exceed the following rates annually of each class’s average daily net assets:
|
Classes |
||||||||
|
A |
B |
C |
I |
R1 |
R2 |
R3 |
R4 |
R6 |
|
0.80% |
1.55% |
1.55% |
0.55% |
1.55% |
1.05% |
0.80% |
0.55% |
0.44% |
24
MFS Government Securities Fund
Notes to Financial Statements (unaudited) - continued
This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until June 30, 2028. For the six months ended August 31, 2026, the fund’s actual operating expenses did not exceed the limit and therefore, the investment adviser did not pay any portion of the fund’s expenses related to this agreement.
Distributor — MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, as distributor, received $869 for the six months ended August 31, 2026, as its portion of the initial sales charge on sales of Class A shares of the fund.
The Board of Trustees has adopted a distribution plan for certain share classes pursuant to Rule 12b-1 of the Investment Company Act of 1940.
The fund's distribution plan provides that the fund will pay MFD for services provided by MFD and financial intermediaries in connection with the distribution and servicing of certain share classes. One component of the plan is a distribution fee paid to MFD and another component of the plan is a service fee paid to MFD. MFD may subsequently pay all, or a portion, of the distribution and/or service fees to financial intermediaries. The distribution and service fees are computed daily and paid monthly.
Distribution Plan Fee Table:
|
Distribution
Fee Rate (d) |
Service
Fee Rate (d) |
Total
Distribution
Plan (d) |
Annual
Effective
Rate (e) |
Distribution
and Service
Fee |
|
|
Class A |
— |
0.25% |
0.25% |
0.25% |
$389,424 |
|
Class B |
0.75% |
0.25% |
1.00% |
1.00% |
889 |
|
Class C |
0.75% |
0.25% |
1.00% |
1.00% |
17,952 |
|
Class R1 |
0.75% |
0.25% |
1.00% |
1.00% |
2,933 |
|
Class R2 |
0.25% |
0.25% |
0.50% |
0.50% |
83,237 |
|
Class R3 |
— |
0.25% |
0.25% |
0.25% |
19,309 |
|
Total Distribution and Service Fees |
$513,744 |
(d)
In accordance with the distribution plan for certain classes, the fund pays distribution and/or service fees equal to these annual percentage rates of each
class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting
period. Any rate changes, if applicable, are detailed below.
(e)
The annual effective rates represent actual fees incurred under the distribution plan for the six months ended August 31, 2026 based on each class's average daily net assets. MFD has voluntarily agreed to rebate a portion of each class's 0.25% service fee attributable to accounts for which there is no financial intermediary specified on the account except for accounts attributable to MFS or its affiliates' seed money. For the six months ended August 31, 2026, this rebate amounted to $266 for Class A shares and is included in the reduction of total expenses in the Statement of Operations.
Certain Class A shares are subject to a contingent deferred sales charge (CDSC) in the event of a shareholder redemption within 18 months of purchase. Class B shares are subject to a CDSC in the event of a shareholder redemption within six years of purchase. Class C shares are subject to a CDSC in the event of a shareholder redemption within 12 months of purchase. All contingent deferred sales charges are paid to MFD and during the six months ended August 31, 2026, were as follows:
|
Amount |
|
|
Class A |
$6,179 |
|
Class B |
— |
|
Class C |
1,541 |
Shareholder Servicing Agent — MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent calculated as a percentage of the average daily net assets of the fund as determined periodically under the supervision of the fund's Board of Trustees. For the six months ended August 31, 2026, the fee was $146,473, which equated to 0.0150% annually of the fund's average daily net assets. MFSC also receives reimbursement from the fund for out-of-pocket expenses, sub-accounting and other shareholder servicing costs which may be paid to affiliated and unaffiliated service providers. Class R6 shares do not incur sub-accounting fees. For the six months ended August 31, 2026, these out-of-pocket expenses, sub-accounting and other shareholder servicing costs amounted to $332,198.
Administrator — MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to the fund. Under an administrative services agreement, the fund reimburses MFS the costs incurred to provide these services. The fund is charged an annual fixed amount of $17,500 plus a fee based on average daily net assets. The administrative services fee is computed daily and paid monthly. The administrative services fee incurred for the six months ended August 31, 2026 was equivalent to an annual effective rate of 0.0140% of the fund's average daily net assets.
25
MFS Government Securities Fund
Notes to Financial Statements (unaudited) - continued
Trustees’ and Officers’ Compensation — The fund pays compensation to independent Trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee chairpersons. Independent Trustees’ compensation is accrued daily and paid subsequent to each Trustee Board meeting. The fund does not pay compensation directly to Trustees or officers of the fund who are also officers of the investment adviser, all of whom receive remuneration from MFS for their services to the fund. Certain officers and Trustees of the fund are officers or directors of MFS, MFD, and MFSC.
Other — The fund invests in the MFS Institutional Money Market Portfolio which is managed by MFS and seeks current income consistent with preservation of capital and liquidity. This money market fund does not pay a management fee to MFS but does incur investment and operating costs.
(4) Portfolio Securities
For the six months ended August 31, 2026, purchases and sales of investments, other than short-term obligations and purchased options with an expiration date of less than one year from the time of purchase, were as follows:
|
Purchases |
Sales |
|
|
U.S. Government securities |
$1,635,480,362 |
$1,811,475,020 |
|
Non-U.S. Government securities |
34,292,589 |
28,214,754 |
(5) Shares of Beneficial Interest
The fund's Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest. Transactions in fund shares were as follows:
|
Six months ended
8/31/26 |
Year ended
2/28/26 |
|||
|
Shares |
Amount |
Shares |
Amount |
|
|
Shares sold |
||||
|
Class A |
1,388,947 |
$11,901,845 |
3,174,979 |
$27,520,732 |
|
Class B |
— |
— |
348 |
3,000 |
|
Class C |
117,682 |
1,008,831 |
147,840 |
1,285,276 |
|
Class I |
3,004,049 |
25,704,129 |
7,812,761 |
67,567,470 |
|
Class R1 |
8,509 |
72,667 |
8,752 |
75,939 |
|
Class R2 |
499,359 |
4,285,839 |
1,046,448 |
9,049,571 |
|
Class R3 |
275,482 |
2,365,583 |
542,563 |
4,707,927 |
|
Class R4 |
282,629 |
2,425,667 |
692,543 |
5,999,314 |
|
Class R6 |
4,924,798 |
42,096,341 |
17,467,031 |
151,179,531 |
|
10,501,455 |
$89,860,902 |
30,893,265 |
$267,388,760 |
|
|
Shares issued to shareholders
in reinvestment of distributions |
||||
|
Class A |
624,517 |
$5,338,798 |
1,332,266 |
$11,571,999 |
|
Class B |
293 |
2,509 |
1,249 |
10,821 |
|
Class C |
5,935 |
50,815 |
9,624 |
83,804 |
|
Class I |
545,553 |
4,656,061 |
1,029,697 |
8,934,877 |
|
Class R1 |
971 |
8,242 |
2,853 |
24,753 |
|
Class R2 |
64,858 |
553,760 |
131,285 |
1,139,017 |
|
Class R3 |
32,240 |
275,610 |
74,448 |
646,441 |
|
Class R4 |
11,595 |
99,177 |
25,894 |
224,885 |
|
Class R6 |
2,980,372 |
25,442,877 |
5,577,099 |
48,401,072 |
|
4,266,334 |
$36,427,849 |
8,184,415 |
$71,037,669 |
|
26
MFS Government Securities Fund
Notes to Financial Statements (unaudited) - continued
|
Six months ended 8/31/26 |
Year ended 2/28/26 |
|||
|
Shares |
Amount |
Shares |
Amount |
|
|
Shares reacquired |
||||
|
Class A |
(4,465,124 ) |
$(38,317,396 ) |
(9,523,965 ) |
$(82,561,643 ) |
|
Class B |
(10,804 ) |
(92,774 ) |
(36,960 ) |
(319,576 ) |
|
Class C |
(80,750 ) |
(692,849 ) |
(102,535 ) |
(888,506 ) |
|
Class I |
(3,783,579 ) |
(32,534,467 ) |
(6,766,118 ) |
(58,621,561 ) |
|
Class R1 |
(28,258 ) |
(245,795 ) |
(96,552 ) |
(834,095 ) |
|
Class R2 |
(530,648 ) |
(4,538,402 ) |
(1,666,971 ) |
(14,441,012 ) |
|
Class R3 |
(555,659 ) |
(4,769,763 ) |
(1,010,374 ) |
(8,780,997 ) |
|
Class R4 |
(447,216 ) |
(3,822,078 ) |
(607,633 ) |
(5,262,957 ) |
|
Class R6 |
(6,852,208 ) |
(58,879,681 ) |
(21,616,306 ) |
(187,031,863 ) |
|
(16,754,246 ) |
$(143,893,205 ) |
(41,427,414 ) |
$(358,742,210 ) |
|
|
Net change |
||||
|
Class A |
(2,451,660 ) |
$(21,076,753 ) |
(5,016,720 ) |
$(43,468,912 ) |
|
Class B |
(10,511 ) |
(90,265 ) |
(35,363 ) |
(305,755 ) |
|
Class C |
42,867 |
366,797 |
54,929 |
480,574 |
|
Class I |
(233,977 ) |
(2,174,277 ) |
2,076,340 |
17,880,786 |
|
Class R1 |
(18,778 ) |
(164,886 ) |
(84,947 ) |
(733,403 ) |
|
Class R2 |
33,569 |
301,197 |
(489,238 ) |
(4,252,424 ) |
|
Class R3 |
(247,937 ) |
(2,128,570 ) |
(393,363 ) |
(3,426,629 ) |
|
Class R4 |
(152,992 ) |
(1,297,234 ) |
110,804 |
961,242 |
|
Class R6 |
1,052,962 |
8,659,537 |
1,427,824 |
12,548,740 |
|
(1,986,457 ) |
$(17,604,454 ) |
(2,349,734 ) |
$(20,315,781 ) |
|
The fund is one of several mutual funds in which certain MFS funds may invest. The MFS funds do not invest in the underlying funds for the purpose of exercising management or control. At the end of the period, the MFS Moderate Allocation Fund, the MFS Conservative Allocation Fund, the MFS Lifetime Income Fund, the MFS Lifetime 2030 Fund, and the MFS Lifetime 2035 Fund were the owners of record of approximately 33%, 18%, 4%, 3%, and 3%, respectively, of the value of outstanding voting shares of the fund. In addition, the MFS Lifetime 2040 Fund was the owner of record of less than 1% of the value of outstanding voting shares of the fund.
Effective June 1, 2019, purchases of the fund’s Class B shares were closed to new and existing investors subject to certain exceptions. Effective September 29, 2023, purchases of the fund's Class R1 and Class R2 shares were closed to new eligible investors.
(6) Line of Credit
The fund and certain other funds managed by MFS participate in a $1.45 billion unsecured committed line of credit of which $1.2 billion is reserved for use by the fund and certain other MFS U.S. funds. The line of credit is provided by a syndicate of banks under a credit agreement. Borrowings may be made for temporary financing needs. Interest is charged to each fund, based on its borrowings, generally at a rate equal to the highest of 1) Daily Simple SOFR (Secured Overnight Financing Rate), 2) the Federal Funds Effective Rate, or 3) the Overnight Bank Funding Rate, each plus an agreed upon spread. A commitment fee, based on the average daily unused portion of the committed line of credit, is allocated among the participating funds. The line of credit expires on March 11, 2027 unless extended or renewed. In addition, the fund and other funds managed by MFS have established unsecured uncommitted borrowing arrangements with certain banks for temporary financing needs. Interest is charged to each fund, based on its borrowings, at rates equal to customary reference rates plus an agreed upon spread. For the six months ended August 31, 2026, the fund’s commitment fee and interest expense were $4,696 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.
(7) Investments in Affiliated Issuers
An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. The following were affiliated issuers for the six months ended August 31, 2026:
27
MFS Government Securities Fund
Notes to Financial Statements (unaudited) - continued
|
Affiliated Issuers |
Beginning
Value |
Purchases |
Sales
Proceeds |
Realized
Gain
(Loss) |
Change in
Unrealized
Appreciation or
Depreciation |
Ending
Value |
|
MFS Institutional Money Market Portfolio |
$66,351,406 |
$734,562,721 |
$641,024,358 |
$15,725 |
$2,978 |
$159,908,472 |
|
Affiliated Issuers |
Dividend
Income |
Capital Gain
Distributions |
|
MFS Institutional Money Market Portfolio |
$1,395,551 |
$— |
28
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
There is nothing to report for this item for MFS Government Securities Fund.
ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
There is nothing to report for this item for MFS Government Securities Fund.
ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.
This information is disclosed as part of the financial statements included in Item 7 above for MFS Government Securities Fund. See the Statement of Operations and Note 3 within the Notes to Financial Statements for more information.
ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.
29
MFS Government Securities Fund
Board Review of Investment Advisory Agreement
MFS Government Securities Fund
The Investment Company Act of 1940 requires that both the full Board of Trustees and a majority of the non-interested (“independent”) Trustees, voting separately, annually approve the continuation of the Fund’s investment advisory agreement with MFS. The Trustees consider matters bearing on the Fund and its advisory arrangements at their meetings throughout the year, including a review of performance data at each regular meeting. In addition, the independent Trustees met several times over the course of several months beginning in April and ending in July, 2026 (“contract review meetings”) for the specific purpose of considering whether to approve the continuation of the investment advisory agreement for the Fund and the other investment companies that the Board oversees (the “MFS Funds”). The independent Trustees were assisted in their evaluation of the Fund’s investment advisory agreement by independent legal counsel, from whom they received separate legal advice and with whom they met separately from MFS during various contract review meetings. The independent Trustees were also assisted in this process by an independent consultant who was retained by and reported to the independent Trustees.
In connection with their deliberations regarding the continuation of the investment advisory agreement, the Trustees, including the independent Trustees, considered such information and factors as they believed, in light of the legal advice furnished to them and their own business judgment, to be relevant. The investment advisory agreement for the Fund was considered separately, although the Trustees also took into account the common interests of all MFS Funds in their review. As described below, the Trustees considered the nature, quality, and extent of the various investment advisory, administrative, and shareholder services performed by MFS under the existing investment advisory agreement and other arrangements with the Fund.
In connection with their contract review meetings, the Trustees received and relied upon materials that included, among other items: (i) information provided by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third party, on the investment performance of the Fund for various time periods ended December 31, 2025 and the investment performance of a group of funds with substantially similar investment classifications/objectives (the “Broadridge performance universe”), (ii) information provided by Broadridge on the Fund’s advisory fees and other expenses and the advisory fees and other expenses of comparable funds identified by Broadridge as well as all other funds in the same investment classification/category (the “Broadridge expense group and universe”), (iii) information provided by MFS on the advisory fees of portfolios of other clients of MFS, including institutional separate accounts and other clients, (iv) information as to whether and to what extent applicable expense waivers, reimbursements or fee “breakpoints” are observed for the Fund, (v) information regarding MFS’ financial results and financial condition, including MFS’ and certain of its affiliates’ estimated profitability from services performed for the Fund and the MFS Funds as a whole, and compared to MFS’ institutional business, (vi) MFS’ views regarding the outlook for the mutual fund industry and the strategic business plans of MFS, (vii) descriptions of various functions performed by MFS for the Funds, such as compliance monitoring and portfolio trading practices, and (viii) information regarding the overall organization of MFS, including information about MFS’ senior management and other personnel providing investment advisory, administrative and other services to the Fund and the other MFS Funds. The comparative performance, fee and expense information prepared and provided by Broadridge was not independently verified and the independent Trustees did not independently verify any information provided to them by MFS.
The Trustees’ conclusion as to the continuation of the investment advisory agreement was based on a comprehensive consideration of all information provided to the Trustees and not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations are described below, although individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. It is also important to recognize that the fee arrangements for the Fund and other MFS Funds are the result of years of review and discussion between the independent Trustees and MFS, that certain aspects of such arrangements may receive greater scrutiny in some years than in others, and that the Trustees’ conclusions may be based, in part, on their consideration of these same arrangements during the course of the year and in prior years.
Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Class I shares in comparison to the performance of funds in its Broadridge performance universe over the five-year period ended December 31, 2025, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Class I shares was in the 2nd quintile relative to the other funds in the universe for this five-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Class I shares was in the 3rd quintile for each of the one- and three-year periods ended December 31, 2025 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Fund’s performance. After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.
30
MFS Government Securities Fund
Board Review of Investment Advisory Agreement - continued
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered, among other information, the Fund’s advisory fee and the total expense ratio of the Fund’s Class I shares as a percentage of average daily net assets and the advisory fee and total expense ratios of the Broadridge expense group based on information provided by Broadridge. The Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the data provided by Broadridge (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate was higher than the Broadridge expense group median and the Fund’s total expense ratio was approximately at the Broadridge expense group median.
The Trustees also considered the advisory fees charged by MFS to any institutional separate accounts advised by MFS (“separate accounts”) and unaffiliated investment companies for which MFS serves as subadviser (“subadvised funds”) that have comparable investment strategies to the Fund, if any. In comparing these fees, the Trustees considered information provided by MFS as to the generally broader scope of services provided by MFS to the Fund, as well as the more extensive regulatory burdens imposed on MFS in managing the Fund, in comparison to separate accounts and subadvised funds. The Trustees also considered the higher demands placed on MFS’ investment personnel and trading infrastructure as a result of the daily cash in-flows and out-flows of the Fund in comparison to separate accounts.
The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to contractual breakpoints that reduce the Fund’s advisory fee rate on average daily net assets over $1 billion, $2.5 billion, and $5 billion. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoints and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.
The Trustees also considered information prepared by MFS relating to MFS’ costs and profits with respect to the Fund, the MFS Funds considered as a group, and other investment companies and accounts advised by MFS, as well as MFS’ methodologies used to determine and allocate its costs to the MFS Funds, the Fund and other accounts and products for purposes of estimating profitability.
After reviewing these and other factors described herein, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that the advisory fees charged to the Fund represent reasonable compensation in light of the services being provided by MFS to the Fund.
In addition, the Trustees considered MFS’ resources and related efforts to continue to retain, attract and motivate capable personnel to serve the Fund. The Trustees also considered current and developing conditions in the financial services industry, including the presence of large and well-capitalized companies which are spending, and appear to be prepared to continue to spend, substantial sums to engage personnel and to provide services to competing investment companies. In this regard, the Trustees also considered the financial resources of MFS and its ultimate parent, Sun Life Financial Inc. The Trustees also considered the advantages and possible disadvantages to the Fund of having an adviser that also serves other investment companies as well as other accounts.
The Trustees also considered the nature, quality, cost, and extent of administrative, transfer agency, and distribution services provided to the Fund by MFS and its affiliates under agreements and plans other than the investment advisory agreement, including any 12b-1 fees the Fund pays to MFS Fund Distributors, Inc., an affiliate of MFS. The Trustees also considered the nature, extent and quality of certain other services MFS performs or arranges for on the Fund’s behalf, which may include securities lending programs, directed expense payment programs, class action recovery programs, and MFS’ interaction with third-party service providers, principally custodians and sub-custodians. The Trustees concluded that the various non-advisory services provided by MFS and its affiliates on behalf of the Fund were satisfactory.
The Trustees considered so-called “fall-out benefits” to MFS such as reputational value derived from serving as investment manager to the MFS Funds. The Trustees also considered that MFS discontinued its historic practice of obtaining investment research from portfolio brokerage commissions paid by certain MFS Funds effective January 2018, and directly pays or voluntarily reimburses a Fund, if applicable, for the costs of external research acquired through the use of the Fund’s portfolio brokerage commissions.
Based on their evaluation of factors that they deemed to be material, including those factors described above, the Board of Trustees, including the independent Trustees, concluded that the Fund’s investment advisory agreement with MFS should be continued for an additional one-year period, commencing August 1, 2026.
31
MFS New Discovery Value Fund
ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
MFS New Discovery Value Fund
Portfolio of Investments − 8/31/26 (unaudited)
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
|
Issuer |
Shares/Par |
Value ($) |
||
|
Common Stocks – 99.7% |
||||
|
Aerospace & Defense – 1.7% |
||||
|
Applied Aerospace & Defense, Inc. (a) |
687,765 |
$9,078,498 |
||
|
Ducommun, Inc. (a) |
59,693 |
10,232,574 |
||
|
Mirion Technologies, Inc. (a) |
558,557 |
8,417,454 |
||
|
Parsons Corp. (a) |
241,030 |
11,723,699 |
||
|
$39,452,225 |
||||
|
Apparel, Footwear, & Accessories – 0.9% |
||||
|
Columbia Sportswear Co. |
172,624 |
$9,908,617 |
||
|
Wolverine World Wide, Inc. |
496,886 |
9,803,561 |
||
|
$19,712,178 |
||||
|
Auto & Auto Components – 2.1% |
||||
|
Atmus Filtration Technologies, Inc. |
243,512 |
$11,501,072 |
||
|
Goodyear Tire & Rubber Co. (a) |
1,107,519 |
6,944,144 |
||
|
Group 1 Automotive, Inc. |
56,071 |
15,113,377 |
||
|
Visteon Corp. |
154,385 |
15,719,481 |
||
|
$49,278,074 |
||||
|
Brokerage & Asset Managers – 1.2% |
||||
|
Lincoln International, Inc. |
480,140 |
$12,118,733 |
||
|
Ridgepost Capital, Inc. |
1,766,968 |
15,195,925 |
||
|
$27,314,658 |
||||
|
Business Services – 0.6% |
||||
|
Morningstar, Inc. |
63,440 |
$13,889,554 |
||
|
Chemicals – 3.4% |
||||
|
Ashland, Inc. |
62,265 |
$4,565,893 |
||
|
Avient Corp. |
516,989 |
22,778,535 |
||
|
CSW Industrials, Inc. |
21,894 |
6,764,151 |
||
|
Element Solutions, Inc. |
629,290 |
22,364,967 |
||
|
Quaker Chemical Corp. |
127,093 |
21,072,019 |
||
|
$77,545,565 |
||||
|
Construction – 3.6% |
||||
|
Independence Realty Trust, Inc., REIT |
1,274,505 |
$20,621,491 |
||
|
M/I Homes, Inc. (a) |
171,791 |
25,564,219 |
||
|
Meritage Homes Corp. |
184,724 |
12,825,387 |
||
|
SiteOne Landscape Supply, Inc. (a) |
186,642 |
18,389,836 |
||
|
Suncrete, Inc., “A” (a)(l) |
291,752 |
5,003,547 |
||
|
$82,404,480 |
||||
|
Consumer Products – 0.9% |
||||
|
Prestige Consumer Healthcare, Inc. (a) |
402,158 |
$20,823,741 |
||
NDVFS-SEM
1
MFS New Discovery Value Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Common Stocks – continued |
||||
|
Consumer Services – 1.8% |
||||
|
Grand Canyon Education, Inc. (a) |
95,332 |
$14,121,529 |
||
|
Life Time Group Holdings, Inc. (a) |
461,073 |
19,374,287 |
||
|
Phoenix Educations Partners, Inc. |
275,898 |
8,031,391 |
||
|
$41,527,207 |
||||
|
Containers – 0.6% |
||||
|
Silgan Holdings, Inc. |
319,325 |
$13,264,761 |
||
|
Diversified Financial Services – 1.7% |
||||
|
Bullish (a)(l) |
304,332 |
$10,356,418 |
||
|
Riot Platforms, Inc. (a) |
733,797 |
13,938,474 |
||
|
SLM Corp. |
609,355 |
15,824,949 |
||
|
$40,119,841 |
||||
|
Electrical Equipment – 2.4% |
||||
|
Belden, Inc. |
128,358 |
$14,691,857 |
||
|
Itron, Inc. (a) |
99,535 |
9,655,890 |
||
|
TriMas Corp. |
327,933 |
12,717,242 |
||
|
Vontier Corp. |
539,172 |
17,366,730 |
||
|
$54,431,719 |
||||
|
Energy - Independent – 5.0% |
||||
|
Antero Resources Corp. (a) |
509,181 |
$19,593,285 |
||
|
California Resources Corp. |
301,344 |
15,980,272 |
||
|
Core Natural Resources, Inc. |
139,966 |
14,318,522 |
||
|
Matador Resources Co. |
351,339 |
20,381,175 |
||
|
Peabody Energy Corp. |
401,175 |
11,910,886 |
||
|
Permian Resources Corp. |
934,203 |
21,757,588 |
||
|
Viper Energy, Inc., “A” |
224,218 |
10,042,724 |
||
|
$113,984,452 |
||||
|
Energy - Renewables – 0.2% |
||||
|
Fuelcell Energy, Inc. (a) |
251,637 |
$4,335,706 |
||
|
Entertainment & Leisure – 1.3% |
||||
|
Brunswick Corp. |
180,792 |
$13,722,113 |
||
|
Patrick Industries, Inc. |
184,161 |
15,049,637 |
||
|
$28,771,750 |
||||
|
Food & Beverages – 0.7% |
||||
|
Nomad Foods Ltd. |
1,379,044 |
$16,052,072 |
||
|
Forest & Paper Products – 0.3% |
||||
|
International Paper Co. |
194,522 |
$7,378,220 |
||
|
Hardware, Peripherals, & Assembly – 2.1% |
||||
|
Core Scientific, Inc. (a) |
319,421 |
$5,206,562 |
||
|
Digi International, Inc. (a) |
312,428 |
23,413,354 |
||
|
Insight Enterprises, Inc. (a) |
129,275 |
20,298,761 |
||
|
$48,918,677 |
||||
2
MFS New Discovery Value Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Common Stocks – continued |
||||
|
Insurance – 3.8% |
||||
|
AXIS Capital Holdings Ltd. |
160,897 |
$15,893,406 |
||
|
Hanover Insurance Group, Inc. |
72,098 |
16,302,079 |
||
|
Lincoln National Corp. |
441,316 |
18,795,649 |
||
|
Selective Insurance Group, Inc. |
247,108 |
22,558,489 |
||
|
Stewart Information Services Corp. |
197,136 |
13,533,386 |
||
|
$87,083,009 |
||||
|
Machinery & Tools – 5.5% |
||||
|
Albany International Corp. |
209,274 |
$11,600,058 |
||
|
Alliance Laundry Holdings, Inc. (a) |
567,188 |
12,994,277 |
||
|
ESAB Corp. |
212,599 |
16,025,713 |
||
|
Hayward Holdings, Inc. (a) |
1,166,267 |
16,386,051 |
||
|
Hillman Solutions Corp. (a) |
1,957,775 |
15,074,867 |
||
|
Kadant, Inc. |
55,607 |
16,634,278 |
||
|
Terex Corp. |
300,575 |
19,089,518 |
||
|
Timken Co. |
149,486 |
18,005,589 |
||
|
$125,810,351 |
||||
|
Media – 0.8% |
||||
|
Nexstar Media Group, Inc. |
102,601 |
$18,686,720 |
||
|
Medical & Health Technology & Services – 3.5% |
||||
|
Azenta, Inc. (a) |
439,706 |
$14,356,401 |
||
|
Lumexa Imaging Holdings, Inc. (a) |
1,570,758 |
18,330,746 |
||
|
Minimed Group, Inc. (a)(l) |
888,545 |
18,001,922 |
||
|
Option Care Health, Inc. (a) |
499,009 |
11,701,761 |
||
|
Waystar Holding Corp. (a) |
655,013 |
17,148,240 |
||
|
$79,539,070 |
||||
|
Medical Equipment – 3.2% |
||||
|
Concentra Group Holdings, Inc. |
618,926 |
$20,882,563 |
||
|
Envista Holdings Corp. (a) |
565,525 |
15,348,349 |
||
|
Merit Medical Systems, Inc. (a) |
193,022 |
17,499,375 |
||
|
UFP Technologies, Inc. (a) |
63,137 |
18,811,669 |
||
|
$72,541,956 |
||||
|
Metals & Mining – 1.0% |
||||
|
SSR Mining, Inc. |
635,453 |
$23,899,387 |
||
|
Natural Gas - Pipeline – 1.4% |
||||
|
Plains GP Holdings LP |
1,137,780 |
$32,108,152 |
||
|
Network & Telecom – 1.0% |
||||
|
Viasat, Inc. (a) |
326,900 |
$21,990,563 |
||
|
Non-Global Systemically Important Banks – 18.2% |
||||
|
BancFirst Corp. |
158,155 |
$17,273,689 |
||
|
Beacon Financial Corp. |
568,462 |
17,650,745 |
||
|
Cathay General Bancorp, Inc. |
471,043 |
28,832,542 |
||
|
Central Banco, Inc. |
700,733 |
22,497,033 |
||
|
Columbia Banking System, Inc. |
893,981 |
26,497,597 |
||
|
Community Financial System, “I” |
271,348 |
17,027,087 |
||
|
CVB Financial Corp. |
1,184,854 |
26,268,213 |
||
3
MFS New Discovery Value Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Common Stocks – continued |
||||
|
Non-Global Systemically Important Banks – continued |
||||
|
East West Bancorp, Inc. |
131,111 |
$16,632,742 |
||
|
Eastern Bankshares, Inc. |
1,105,031 |
24,266,481 |
||
|
First Hawaiian, Inc. |
955,971 |
24,482,417 |
||
|
First Interstate BancSystem, Inc. |
732,962 |
26,980,331 |
||
|
Hancock Whitney Corp. |
364,206 |
27,129,705 |
||
|
Popular, Inc. |
147,903 |
24,875,806 |
||
|
Prosperity Bancshares, Inc. |
393,681 |
28,171,812 |
||
|
Simmons First National Corp. |
744,962 |
16,821,242 |
||
|
Texas Capital Bancshares, Inc. |
208,980 |
20,308,676 |
||
|
UMB Financial Corp. |
160,930 |
22,792,516 |
||
|
United Community Bank, Inc. |
812,505 |
28,307,674 |
||
|
$416,816,308 |
||||
|
Oil Services – 1.6% |
||||
|
Expro Ltd. (a) |
1,239,970 |
$22,468,257 |
||
|
Noble Corp. PLC |
308,435 |
14,135,576 |
||
|
$36,603,833 |
||||
|
Pharmaceuticals & Biotechnology – 5.3% |
||||
|
ACADIA Pharmaceuticals, Inc. (a) |
480,195 |
$13,882,437 |
||
|
Cogent Biosciences, Inc. (a) |
244,840 |
8,569,400 |
||
|
Collegium Pharmaceutical, Inc. (a) |
354,483 |
8,723,827 |
||
|
Cytokinetics, Inc. (a) |
143,763 |
10,194,234 |
||
|
Ionis Pharmaceuticals, Inc. (a) |
162,362 |
9,800,170 |
||
|
Ligand Pharmaceuticals, Inc. (a) |
81,704 |
23,212,106 |
||
|
Mirum Pharmaceuticals, Inc. (a) |
153,297 |
15,030,771 |
||
|
Oruka Therapeutics, Inc. (a) |
108,967 |
10,092,524 |
||
|
Praxis Precision Medicines, Inc. (a) |
30,105 |
10,545,782 |
||
|
Tarsus Pharmaceuticals, Inc. (a) |
144,421 |
10,721,815 |
||
|
$120,773,066 |
||||
|
Pollution Control – 1.1% |
||||
|
GFL Environmental, Inc. |
578,878 |
$24,480,751 |
||
|
Real Estate – 5.0% |
||||
|
Acadia Realty Trust, REIT |
910,076 |
$18,629,256 |
||
|
Cushman & Wakefield Ltd. (a) |
962,665 |
12,986,351 |
||
|
Essential Properties Realty Trust, REIT |
657,097 |
19,712,910 |
||
|
Four Corners Property Trust, Inc., REIT |
566,864 |
14,103,576 |
||
|
Janus Living, Inc., “A”, REIT |
746,869 |
22,219,353 |
||
|
PennyMac Financial Services, Inc. |
154,893 |
11,324,227 |
||
|
Urban Edge Properties, REIT |
741,128 |
15,682,268 |
||
|
$114,657,941 |
||||
|
Real Estate - Storage & Office – 2.1% |
||||
|
Cousins Properties, Inc., REIT |
629,921 |
$18,261,410 |
||
|
Rexford Industrial Realty, Inc., REIT |
412,068 |
15,262,999 |
||
|
SmartStop Self Storage REIT |
433,469 |
14,074,738 |
||
|
$47,599,147 |
||||
|
Restaurants – 0.8% |
||||
|
Chefs' Warehouse, Inc. (a) |
162,457 |
$18,271,539 |
||
4
MFS New Discovery Value Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Common Stocks – continued |
||||
|
Retail & E-commerce – 2.2% |
||||
|
Bob's Discount Furniture (a) |
791,305 |
$13,317,663 |
||
|
Ollie's Bargain Outlet Holdings, Inc. (a) |
113,420 |
8,554,136 |
||
|
Rush Enterprises, Inc., “A” |
188,174 |
14,457,409 |
||
|
Yesway, Inc. (a) |
522,162 |
13,007,055 |
||
|
$49,336,263 |
||||
|
Semiconductor & Electronic Components – 1.9% |
||||
|
Advanced Energy Industries, Inc. |
46,469 |
$12,865,407 |
||
|
Benchmark Electronics, Inc. |
32,622 |
2,292,674 |
||
|
Sanmina Corp. (a) |
71,170 |
14,000,563 |
||
|
Synaptics, Inc. (a) |
105,342 |
10,188,678 |
||
|
Wolfspeed, Inc. (a) |
117,883 |
3,229,994 |
||
|
$42,577,316 |
||||
|
Software – 1.3% |
||||
|
ACI Worldwide, Inc. (a) |
297,766 |
$15,864,973 |
||
|
nCino, Inc. (a) |
599,582 |
13,550,553 |
||
|
$29,415,526 |
||||
|
Telecom - Infrastructure – 0.5% |
||||
|
Blackstone Digital Infrastructure Trust, Inc., REIT (a) |
569,329 |
$11,420,740 |
||
|
Telecom Services – 0.3% |
||||
|
EchoStar Corp., “A” (a) |
80,391 |
$6,948,998 |
||
|
Transportation & Logistics – 1.1% |
||||
|
ArcBest Corp. |
72,876 |
$10,054,702 |
||
|
Kirby Corp. (a) |
99,988 |
14,184,297 |
||
|
$24,238,999 |
||||
|
Travel, Gaming, & Lodging – 1.5% |
||||
|
Alaska Air Group, Inc. (a) |
236,513 |
$9,775,082 |
||
|
Brightstar Lottery PLC |
971,073 |
10,943,993 |
||
|
Wyndham Hotels & Resorts, Inc. |
188,940 |
13,917,320 |
||
|
$34,636,395 |
||||
|
Utilities – 6.1% |
||||
|
Brookfield Infrastructure Corp. (l) |
328,591 |
$12,558,748 |
||
|
MDU Resources Group, Inc. |
490,790 |
9,776,537 |
||
|
NorthWestern Corp. |
310,531 |
21,476,324 |
||
|
ONE Gas, Inc. |
223,277 |
17,699,168 |
||
|
Portland General Electric Co. |
478,037 |
23,356,888 |
||
|
Southwest Gas Holdings, Inc. |
237,491 |
20,977,580 |
||
|
Spire, Inc. |
247,814 |
20,281,097 |
||
|
UGI Corp. |
364,044 |
13,997,492 |
||
|
$140,123,834 |
||||
|
Total Common Stocks (Identified Cost, $1,881,169,275) |
$2,278,764,744 |
|||
|
Mutual Funds (h) – 0.6% |
||||
|
Money Market Funds – 0.6% |
||||
|
MFS Institutional Money Market Portfolio, 3.75% (v) (Identified Cost, $13,576,554) |
13,575,197 |
$13,576,554 |
||
5
MFS New Discovery Value Fund
Portfolio of Investments (unaudited) – continued
|
Issuer |
Shares/Par |
Value ($) |
||
|
Collateral for Securities Loaned – 1.8% |
||||
|
JPMorgan U.S. Government Money Market Fund - Class IM Shares, 3.62% (j) (Identified Cost, $42,249,413) |
42,249,413 |
$42,249,413 |
||
|
Other Assets, Less Liabilities – (2.1)% |
(48,749,347) |
|||
|
Net Assets – 100.0% |
$2,285,841,364 |
|||
|
(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 $13,576,554 and $2,321,014,157, 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: |
|
|
REIT |
Real Estate Investment Trust |
See Notes to Financial Statements
6
MFS New Discovery Value Fund
Financial Statements | Statement of Assets and Liabilities
This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.
|
At 8/31/26 (unaudited) Assets |
|
|
Investments in unaffiliated issuers, at value, including $41,329,483 of securities on loan (identified cost, $1,923,418,688) |
$2,321,014,157 |
|
Investments in affiliated issuers, at value (identified cost, $13,576,554) |
13,576,554 |
|
Receivables for |
|
|
Investments sold |
8,552,404 |
|
Fund shares sold |
858,493 |
|
Interest and dividends |
2,205,327 |
|
Other assets |
57,247 |
|
Total assets |
$2,346,264,182 |
|
Liabilities |
|
|
Payables for |
|
|
Investments purchased |
$12,652,631 |
|
Fund shares reacquired |
4,760,818 |
|
Collateral for securities loaned, at value |
42,249,413 |
|
Payable to affiliates |
|
|
Investment adviser |
210,591 |
|
Administrative services fee |
3,539 |
|
Shareholder servicing costs |
339,529 |
|
Distribution and service fees |
9,093 |
|
Accrued expenses and other liabilities |
197,204 |
|
Total liabilities |
$60,422,818 |
|
Net assets |
$2,285,841,364 |
|
Net assets consist of |
|
|
Paid-in capital |
$1,595,665,155 |
|
Total distributable earnings (loss) |
690,176,209 |
|
Net assets |
$2,285,841,364 |
|
Shares of beneficial interest outstanding |
123,108,872 |
|
Net assets |
Shares
outstanding |
Net asset value
per share (a) |
|
|
Class A |
$241,242,585 |
13,186,226 |
$18.30 |
|
Class B |
180,642 |
10,798 |
16.73 |
|
Class C |
6,610,978 |
399,958 |
16.53 |
|
Class I |
655,946,522 |
35,344,641 |
18.56 |
|
Class R1 |
2,125,519 |
128,127 |
16.59 |
|
Class R2 |
3,739,733 |
207,594 |
18.01 |
|
Class R3 |
42,245,481 |
2,302,059 |
18.35 |
|
Class R4 |
53,622,412 |
2,882,878 |
18.60 |
|
Class R6 |
1,280,127,492 |
68,646,591 |
18.65 |
|
(a) |
Maximum offering price per share was equal to the net asset value per share for all share classes, except for Class A, for which the maximum offering price per share was $19.42 [100 / 94.25 x $18.30]. On sales of $50,000 or more, the maximum offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A, Class B, and Class C shares. Redemption price per share was equal to the net asset value per share for Classes I, R1, R2, R3, R4, and R6. |
See Notes to Financial Statements
7
MFS New Discovery Value Fund
Financial Statements | Statement of Operations
This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.
|
Six months ended 8/31/26 (unaudited) Net investment income (loss) |
|
|
Income |
|
|
Dividends from unaffiliated issuers |
$23,249,705 |
|
Dividends from affiliated issuers |
424,571 |
|
Income on securities loaned |
176,046 |
|
Other |
153,778 |
|
Foreign taxes withheld |
(102,728 ) |
|
Total investment income |
$23,901,372 |
|
Expenses |
|
|
Management fee |
$10,480,546 |
|
Distribution and service fees |
566,127 |
|
Shareholder servicing costs |
664,175 |
|
Administrative services fee |
173,594 |
|
Independent Trustees' compensation |
25,823 |
|
Custodian fee |
60,479 |
|
Shareholder communications |
96,585 |
|
Audit and tax fees |
36,785 |
|
Legal fees |
6,479 |
|
Miscellaneous |
127,053 |
|
Total expenses |
$12,237,646 |
|
Reduction of expenses by investment adviser and distributor |
(172,805 ) |
|
Net expenses |
$12,064,841 |
|
Net investment income (loss) |
$11,836,531 |
|
Realized and unrealized gain (loss) |
|
|
Realized gain (loss) (identified cost basis) |
|
|
Unaffiliated issuers |
$314,206,781 |
|
Affiliated issuers |
5,286 |
|
Foreign currency |
(584 ) |
|
Net realized gain (loss) |
$314,211,483 |
|
Change in unrealized appreciation or depreciation |
|
|
Unaffiliated issuers |
$(184,384,846 ) |
|
Net realized and unrealized gain (loss) |
$129,826,637 |
|
Change in net assets from operations |
$141,663,168 |
See Notes to Financial Statements
8
MFS New Discovery Value Fund
Financial Statements | Statements of Changes in Net Assets
These statements describe the increases and/or decreases in net assets resulting from operations, any distributions, and any shareholder transactions.
|
Six months ended |
Year ended |
|
|
(unaudited) |
|
|
|
Change in net assets |
||
|
From operations |
||
|
Net investment income (loss) |
$11,836,531 |
$27,937,174 |
|
Net realized gain (loss) |
314,211,483 |
264,358,834 |
|
Net unrealized gain (loss) |
(184,384,846 ) |
(19,760,788 ) |
|
Change in net assets from operations |
$141,663,168 |
$272,535,220 |
|
Total distributions to shareholders |
$(77,931,713 ) |
$(271,323,939 ) |
|
Change in net assets from fund share transactions |
$(515,248,937 ) |
$(482,146,563 ) |
|
Total change in net assets |
$(451,517,482 ) |
$(480,935,282 ) |
|
Net assets |
||
|
At beginning of period |
2,737,358,846 |
3,218,294,128 |
|
At end of period |
$2,285,841,364 |
$2,737,358,846 |
See Notes to Financial Statements
9
MFS New Discovery Value Fund
Financial Statements | Financial Highlights
The financial highlights table is intended to help you understand the fund's financial performance for the semiannual period and the past 5 fiscal years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
|
Class A |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$17.91 |
$17.90 |
$17.28 |
$18.03 |
$20.03 |
$18.53 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.06 |
$0.13 |
$0.19 |
$0.16 |
$0.12 |
$0.05 |
|
Net realized and unrealized gain (loss) |
0.97 |
1.65 |
1.58 |
0.15 |
(0.77 ) |
3.32 |
|
Total from investment operations |
$1.03 |
$1.78 |
$1.77 |
$0.31 |
$(0.65 ) |
$3.37 |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$— |
$(0.19 ) |
$(0.29 ) |
$(0.18 ) |
$(0.23 ) |
$(0.15 ) |
|
From net realized gain |
(0.64 ) |
(1.58 ) |
(0.86 ) |
(0.88 ) |
(1.12 ) |
(1.72 ) |
|
Total distributions declared to shareholders |
$(0.64 ) |
$(1.77 ) |
$(1.15 ) |
$(1.06 ) |
$(1.35 ) |
$(1.87 ) |
|
Net asset value, end of period (x) |
$18.30 |
$17.91 |
$17.90 |
$17.28 |
$18.03 |
$20.03 |
|
Total return (%) (r)(s)(t)(x) |
5.75 (n) |
10.86 |
9.88 |
1.96 |
(2.88 ) |
18.34 |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions |
1.24 (a) |
1.23 |
1.21 |
1.20 |
1.20 |
1.19 |
|
Expenses after expense reductions |
1.23 (a) |
1.21 |
1.19 |
1.19 |
1.18 |
1.18 |
|
Net investment income (loss) |
0.69 (a) |
0.75 |
1.05 |
0.98 |
0.65 |
0.25 |
|
Portfolio turnover rate |
31 (n) |
47 |
34 |
34 |
30 |
44 |
|
Net assets at end of period (000 omitted) |
$241,243 |
$245,209 |
$268,230 |
$275,255 |
$306,254 |
$361,165 |
See Notes to Financial Statements
10
MFS New Discovery Value Fund
Financial Highlights - continued
|
Class B |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$16.49 |
$16.59 |
$16.07 |
$16.83 |
$18.77 |
$17.54 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.00 (w) |
$0.01 |
$0.06 |
$0.04 |
$(0.01 ) |
$(0.09 ) |
|
Net realized and unrealized gain (loss) |
0.88 |
1.50 |
1.45 |
0.12 |
(0.73 ) |
3.13 |
|
Total from investment operations |
$0.88 |
$1.51 |
$1.51 |
$0.16 |
$(0.74 ) |
$3.04 |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$— |
$(0.03 ) |
$(0.13 ) |
$(0.04 ) |
$(0.08 ) |
$(0.09 ) |
|
From net realized gain |
(0.64 ) |
(1.58 ) |
(0.86 ) |
(0.88 ) |
(1.12 ) |
(1.72 ) |
|
Total distributions declared to shareholders |
$(0.64 ) |
$(1.61 ) |
$(0.99 ) |
$(0.92 ) |
$(1.20 ) |
$(1.81 ) |
|
Net asset value, end of period (x) |
$16.73 |
$16.49 |
$16.59 |
$16.07 |
$16.83 |
$18.77 |
|
Total return (%) (r)(s)(t)(x) |
5.33 (n) |
10.02 |
9.04 |
1.21 |
(3.61 ) |
17.45 |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions |
1.99 (a) |
1.98 |
1.96 |
1.95 |
1.95 |
1.94 |
|
Expenses after expense reductions |
1.97 (a) |
1.96 |
1.94 |
1.94 |
1.93 |
1.93 |
|
Net investment income (loss) |
0.01 (a) |
0.07 |
0.35 |
0.23 |
(0.09 ) |
(0.49 ) |
|
Portfolio turnover rate |
31 (n) |
47 |
34 |
34 |
30 |
44 |
|
Net assets at end of period (000 omitted) |
$181 |
$615 |
$1,567 |
$2,834 |
$4,023 |
$6,016 |
|
Class C |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$16.30 |
$16.44 |
$15.94 |
$16.70 |
$18.66 |
$17.45 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$(0.00 )(w) |
$0.01 |
$0.06 |
$0.04 |
$(0.02 ) |
$(0.09 ) |
|
Net realized and unrealized gain (loss) |
0.87 |
1.49 |
1.44 |
0.13 |
(0.72 ) |
3.11 |
|
Total from investment operations |
$0.87 |
$1.50 |
$1.50 |
$0.17 |
$(0.74 ) |
$3.02 |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$— |
$(0.06 ) |
$(0.14 ) |
$(0.05 ) |
$(0.10 ) |
$(0.09 ) |
|
From net realized gain |
(0.64 ) |
(1.58 ) |
(0.86 ) |
(0.88 ) |
(1.12 ) |
(1.72 ) |
|
Total distributions declared to shareholders |
$(0.64 ) |
$(1.64 ) |
$(1.00 ) |
$(0.93 ) |
$(1.22 ) |
$(1.81 ) |
|
Net asset value, end of period (x) |
$16.53 |
$16.30 |
$16.44 |
$15.94 |
$16.70 |
$18.66 |
|
Total return (%) (r)(s)(t)(x) |
5.33 (n) |
10.01 |
9.06 |
1.24 |
(3.65 ) |
17.42 |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions |
1.99 (a) |
1.98 |
1.96 |
1.95 |
1.95 |
1.94 |
|
Expenses after expense reductions |
1.98 (a) |
1.96 |
1.94 |
1.94 |
1.93 |
1.93 |
|
Net investment income (loss) |
(0.05 )(a) |
0.03 |
0.34 |
0.23 |
(0.09 ) |
(0.48 ) |
|
Portfolio turnover rate |
31 (n) |
47 |
34 |
34 |
30 |
44 |
|
Net assets at end of period (000 omitted) |
$6,611 |
$9,047 |
$14,699 |
$21,695 |
$29,474 |
$37,588 |
See Notes to Financial Statements
11
MFS New Discovery Value Fund
Financial Highlights - continued
|
Class I |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$18.13 |
$18.10 |
$17.47 |
$18.20 |
$20.22 |
$18.69 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.09 |
$0.18 |
$0.24 |
$0.21 |
$0.16 |
$0.10 |
|
Net realized and unrealized gain (loss) |
0.98 |
1.66 |
1.59 |
0.16 |
(0.78 ) |
3.35 |
|
Total from investment operations |
$1.07 |
$1.84 |
$1.83 |
$0.37 |
$(0.62 ) |
$3.45 |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$— |
$(0.23 ) |
$(0.34 ) |
$(0.22 ) |
$(0.28 ) |
$(0.20 ) |
|
From net realized gain |
(0.64 ) |
(1.58 ) |
(0.86 ) |
(0.88 ) |
(1.12 ) |
(1.72 ) |
|
Total distributions declared to shareholders |
$(0.64 ) |
$(1.81 ) |
$(1.20 ) |
$(1.10 ) |
$(1.40 ) |
$(1.92 ) |
|
Net asset value, end of period (x) |
$18.56 |
$18.13 |
$18.10 |
$17.47 |
$18.20 |
$20.22 |
|
Total return (%) (r)(s)(t)(x) |
5.90 (n) |
11.12 |
10.08 |
2.30 |
(2.70 ) |
18.64 |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions |
0.99 (a) |
0.98 |
0.96 |
0.95 |
0.95 |
0.94 |
|
Expenses after expense reductions |
0.98 (a) |
0.96 |
0.94 |
0.94 |
0.93 |
0.93 |
|
Net investment income (loss) |
0.94 (a) |
1.03 |
1.31 |
1.22 |
0.91 |
0.46 |
|
Portfolio turnover rate |
31 (n) |
47 |
34 |
34 |
30 |
44 |
|
Net assets at end of period (000 omitted) |
$655,947 |
$832,362 |
$1,228,722 |
$1,388,622 |
$1,604,806 |
$1,795,671 |
|
Class R1 |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$16.36 |
$16.52 |
$16.03 |
$16.80 |
$18.78 |
$17.55 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$(0.00 )(w) |
$(0.00 )(w) |
$0.05 |
$0.04 |
$(0.01 ) |
$(0.10 ) |
|
Net realized and unrealized gain (loss) |
0.87 |
1.50 |
1.45 |
0.13 |
(0.74 ) |
3.14 |
|
Total from investment operations |
$0.87 |
$1.50 |
$1.50 |
$0.17 |
$(0.75 ) |
$3.04 |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$— |
$(0.08 ) |
$(0.15 ) |
$(0.06 ) |
$(0.11 ) |
$(0.09 ) |
|
From net realized gain |
(0.64 ) |
(1.58 ) |
(0.86 ) |
(0.88 ) |
(1.12 ) |
(1.72 ) |
|
Total distributions declared to shareholders |
$(0.64 ) |
$(1.66 ) |
$(1.01 ) |
$(0.94 ) |
$(1.23 ) |
$(1.81 ) |
|
Net asset value, end of period (x) |
$16.59 |
$16.36 |
$16.52 |
$16.03 |
$16.80 |
$18.78 |
|
Total return (%) (r)(s)(t)(x) |
5.31 (n) |
10.03 |
9.02 |
1.27 |
(3.65 ) |
17.45 |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions |
1.99 (a) |
1.98 |
1.96 |
1.95 |
1.95 |
1.94 |
|
Expenses after expense reductions |
1.98 (a) |
1.96 |
1.95 |
1.92 |
1.92 |
1.93 |
|
Net investment income (loss) |
(0.06 )(a) |
(0.02 ) |
0.31 |
0.25 |
(0.09 ) |
(0.51 ) |
|
Portfolio turnover rate |
31 (n) |
47 |
34 |
34 |
30 |
44 |
|
Net assets at end of period (000 omitted) |
$2,126 |
$2,115 |
$1,878 |
$1,972 |
$2,196 |
$2,224 |
See Notes to Financial Statements
12
MFS New Discovery Value Fund
Financial Highlights - continued
|
Class R2 |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$17.66 |
$17.68 |
$17.09 |
$17.84 |
$19.84 |
$18.38 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.04 |
$0.08 |
$0.15 |
$0.12 |
$0.07 |
$0.01 |
|
Net realized and unrealized gain (loss) |
0.95 |
1.63 |
1.54 |
0.14 |
(0.76 ) |
3.28 |
|
Total from investment operations |
$0.99 |
$1.71 |
$1.69 |
$0.26 |
$(0.69 ) |
$3.29 |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$— |
$(0.15 ) |
$(0.24 ) |
$(0.13 ) |
$(0.19 ) |
$(0.11 ) |
|
From net realized gain |
(0.64 ) |
(1.58 ) |
(0.86 ) |
(0.88 ) |
(1.12 ) |
(1.72 ) |
|
Total distributions declared to shareholders |
$(0.64 ) |
$(1.73 ) |
$(1.10 ) |
$(1.01 ) |
$(1.31 ) |
$(1.83 ) |
|
Net asset value, end of period (x) |
$18.01 |
$17.66 |
$17.68 |
$17.09 |
$17.84 |
$19.84 |
|
Total return (%) (r)(s)(t)(x) |
5.60 (n) |
10.57 |
9.54 |
1.73 |
(3.13 ) |
18.02 |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions |
1.49 (a) |
1.48 |
1.46 |
1.45 |
1.45 |
1.44 |
|
Expenses after expense reductions |
1.48 (a) |
1.46 |
1.44 |
1.44 |
1.43 |
1.43 |
|
Net investment income (loss) |
0.43 (a) |
0.49 |
0.83 |
0.73 |
0.40 |
0.05 |
|
Portfolio turnover rate |
31 (n) |
47 |
34 |
34 |
30 |
44 |
|
Net assets at end of period (000 omitted) |
$3,740 |
$3,868 |
$3,798 |
$5,265 |
$5,677 |
$6,251 |
|
Class R3 |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$17.95 |
$17.94 |
$17.33 |
$18.07 |
$20.08 |
$18.57 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.06 |
$0.13 |
$0.19 |
$0.17 |
$0.12 |
$0.05 |
|
Net realized and unrealized gain (loss) |
0.98 |
1.65 |
1.58 |
0.15 |
(0.78 ) |
3.33 |
|
Total from investment operations |
$1.04 |
$1.78 |
$1.77 |
$0.32 |
$(0.66 ) |
$3.38 |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$— |
$(0.19 ) |
$(0.30 ) |
$(0.18 ) |
$(0.23 ) |
$(0.15 ) |
|
From net realized gain |
(0.64 ) |
(1.58 ) |
(0.86 ) |
(0.88 ) |
(1.12 ) |
(1.72 ) |
|
Total distributions declared to shareholders |
$(0.64 ) |
$(1.77 ) |
$(1.16 ) |
$(1.06 ) |
$(1.35 ) |
$(1.87 ) |
|
Net asset value, end of period (x) |
$18.35 |
$17.95 |
$17.94 |
$17.33 |
$18.07 |
$20.08 |
|
Total return (%) (r)(s)(t)(x) |
5.79 (n) |
10.84 |
9.86 |
2.01 |
(2.92 ) |
18.36 |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions |
1.24 (a) |
1.23 |
1.21 |
1.20 |
1.20 |
1.19 |
|
Expenses after expense reductions |
1.22 (a) |
1.21 |
1.19 |
1.19 |
1.18 |
1.18 |
|
Net investment income (loss) |
0.66 (a) |
0.74 |
1.00 |
0.98 |
0.65 |
0.24 |
|
Portfolio turnover rate |
31 (n) |
47 |
34 |
34 |
30 |
44 |
|
Net assets at end of period (000 omitted) |
$42,245 |
$192,614 |
$204,333 |
$81,370 |
$99,012 |
$104,164 |
See Notes to Financial Statements
13
MFS New Discovery Value Fund
Financial Highlights - continued
|
Class R4 |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$18.17 |
$18.14 |
$17.50 |
$18.24 |
$20.25 |
$18.72 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.09 |
$0.17 |
$0.24 |
$0.21 |
$0.17 |
$0.09 |
|
Net realized and unrealized gain (loss) |
0.98 |
1.68 |
1.60 |
0.15 |
(0.78 ) |
3.36 |
|
Total from investment operations |
$1.07 |
$1.85 |
$1.84 |
$0.36 |
$(0.61 ) |
$3.45 |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$— |
$(0.24 ) |
$(0.34 ) |
$(0.22 ) |
$(0.28 ) |
$(0.20 ) |
|
From net realized gain |
(0.64 ) |
(1.58 ) |
(0.86 ) |
(0.88 ) |
(1.12 ) |
(1.72 ) |
|
Total distributions declared to shareholders |
$(0.64 ) |
$(1.82 ) |
$(1.20 ) |
$(1.10 ) |
$(1.40 ) |
$(1.92 ) |
|
Net asset value, end of period (x) |
$18.60 |
$18.17 |
$18.14 |
$17.50 |
$18.24 |
$20.25 |
|
Total return (%) (r)(s)(t)(x) |
5.89 (n) |
11.11 |
10.12 |
2.24 |
(2.66 ) |
18.60 |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions |
0.99 (a) |
0.98 |
0.96 |
0.95 |
0.95 |
0.94 |
|
Expenses after expense reductions |
0.98 (a) |
0.96 |
0.94 |
0.94 |
0.93 |
0.93 |
|
Net investment income (loss) |
0.94 (a) |
0.99 |
1.30 |
1.24 |
0.91 |
0.45 |
|
Portfolio turnover rate |
31 (n) |
47 |
34 |
34 |
30 |
44 |
|
Net assets at end of period (000 omitted) |
$53,622 |
$64,256 |
$63,305 |
$66,910 |
$73,846 |
$103,464 |
|
Class R6 |
Six months
ended |
Year ended |
||||
|
8/31/26
(unaudited) |
2/28/26 |
2/28/25 |
2/29/24 |
2/28/23 |
2/28/22 |
|
|
Net asset value, beginning of period |
$18.21 |
$18.17 |
$17.53 |
$18.27 |
$20.29 |
$18.75 |
|
Income (loss) from investment operations |
||||||
|
Net investment income (loss) (d) |
$0.10 |
$0.19 |
$0.26 |
$0.23 |
$0.18 |
$0.13 |
|
Net realized and unrealized gain (loss) |
0.98 |
1.68 |
1.59 |
0.15 |
(0.78 ) |
3.35 |
|
Total from investment operations |
$1.08 |
$1.87 |
$1.85 |
$0.38 |
$(0.60 ) |
$3.48 |
|
Less distributions declared to shareholders |
||||||
|
From net investment income |
$— |
$(0.25 ) |
$(0.35 ) |
$(0.24 ) |
$(0.30 ) |
$(0.22 ) |
|
From net realized gain |
(0.64 ) |
(1.58 ) |
(0.86 ) |
(0.88 ) |
(1.12 ) |
(1.72 ) |
|
Total distributions declared to shareholders |
$(0.64 ) |
$(1.83 ) |
$(1.21 ) |
$(1.12 ) |
$(1.42 ) |
$(1.94 ) |
|
Net asset value, end of period (x) |
$18.65 |
$18.21 |
$18.17 |
$17.53 |
$18.27 |
$20.29 |
|
Total return (%) (r)(s)(t)(x) |
5.93 (n) |
11.27 |
10.20 |
2.34 |
(2.59 ) |
18.75 |
|
Ratios (%) (to average net assets)
and Supplemental data: |
||||||
|
Expenses before expense reductions |
0.89 (a) |
0.88 |
0.86 |
0.86 |
0.85 |
0.84 |
|
Expenses after expense reductions |
0.87 (a) |
0.86 |
0.85 |
0.84 |
0.84 |
0.83 |
|
Net investment income (loss) |
1.05 (a) |
1.10 |
1.40 |
1.32 |
1.00 |
0.62 |
|
Portfolio turnover rate |
31 (n) |
47 |
34 |
34 |
30 |
44 |
|
Net assets at end of period (000 omitted) |
$1,280,127 |
$1,387,273 |
$1,431,761 |
$1,585,878 |
$1,728,213 |
$1,875,681 |
See Notes to Financial Statements
14
MFS New Discovery Value Fund
Financial Highlights - continued
|
(a) |
Annualized. |
|
(d) |
Per share data is based on average shares outstanding. |
|
(n) |
Not annualized. |
|
(r) |
Certain expenses have been reduced without which performance would have been lower. |
|
(s) |
From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
|
(t) |
Total returns do not include any applicable sales charges. |
|
(w) |
Per share amount was less than $0.01. |
|
(x) |
The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
See Notes to Financial Statements
15
MFS New Discovery Value Fund
Notes to Financial Statements (unaudited)
(1) Business and Organization
MFS New Discovery Value Fund (the fund) is a diversified series of MFS Series Trust XIII (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company.
The fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies.
(2) Significant Accounting Policies
General — The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. The fund will generally focus on securities of small size companies which may be more volatile than those of larger companies.
Segment Reporting — An operating segment is defined in FASB Accounting Standards Codification Topic 280, Segment Reporting as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the entity’s chief operating decision maker (CODM) in making resource allocation decisions and assessing segment performance, and for which discrete financial information is available. The fund represents a single operating segment and the Chairman’s Committee of the fund's adviser acts as the segment’s CODM. The fund’s total returns, expense ratios, and changes in net assets which are used by the CODM to assess segment performance and to make resource allocation decisions to the segment are consistent with that presented within the fund’s financial statements.
Balance Sheet Offsetting — The fund's accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement, or similar agreement, does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the fund and the applicable counterparty. The fund's right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject. Balance sheet offsetting disclosures, to the extent applicable to the fund, have been included in the fund’s Significant Accounting Policies note under the captions for each of the fund’s in-scope financial instruments and transactions.
Investment Valuations — Subject to its oversight, the fund's Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments to MFS as the fund's adviser, pursuant to the fund’s valuation policy and procedures which have been adopted by the adviser and approved by the Board. In accordance with Rule 2a-5 under the Investment Company Act of 1940, the Board of Trustees designated the adviser as the “valuation designee” of the fund. If the adviser, as valuation designee, determines that reliable market quotations are not readily available for an investment, the investment is valued at fair value as determined in good faith by the adviser in accordance with the adviser’s fair valuation policy and procedures.
Under the fund's valuation policy and procedures, equity securities, including restricted equity securities, are generally valued at the last sale or official closing price on their primary market or exchange as provided by a third-party pricing service. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation on their primary market or exchange as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less may be valued at amortized cost, which approximates market value. Open-end investment companies are generally valued at net asset value per share. The values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and asked prices for rates provided by a third-party pricing service.
Under the fund’s valuation policy and procedures, market quotations are not considered to be readily available for debt instruments, floating rate loans, and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services or otherwise determined by the adviser in accordance with the adviser’s fair valuation policy and procedures. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. In determining values, third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, spreads and other market data. An investment may also be valued at fair value if the adviser determines that the investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or
16
MFS New Discovery Value Fund
Notes to Financial Statements (unaudited) - continued
market) and prior to the determination of the fund’s net asset value, or after the halt of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. Events that occur after foreign markets close (such as developments in foreign markets and significant movements in the U.S. markets) and prior to the determination of the fund’s net asset value may be deemed to have a material effect on the value of securities traded in foreign markets. Accordingly, the fund’s foreign equity securities may often be valued at fair value. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.
Various inputs are used in determining the value of the fund's assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes significant unobservable inputs, which may include the adviser's own assumptions in determining the fair value of investments. The following is a summary of the levels used as of August 31, 2026 in valuing the fund's assets and liabilities:
|
Financial Instruments |
Level 1 |
Level 2 |
Level 3 |
Total |
|
Equity Securities |
$2,278,764,744 |
$— |
$— |
$2,278,764,744 |
|
Mutual Funds |
55,825,967 |
— |
— |
55,825,967 |
|
Total |
$2,334,590,711 |
$— |
$— |
$2,334,590,711 |
For further information regarding security characteristics, see the Portfolio of Investments.
Foreign Currency Translation — Purchases and sales of foreign investments, income, and expenses are converted into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions or on the reporting date for foreign denominated receivables and payables. Gains and losses attributable to foreign currency exchange rates on sales of securities are recorded for financial statement purposes as net realized gains and losses on investments. Gains and losses attributable to foreign exchange rate movements on receivables, payables, income and expenses are recorded for financial statement purposes as foreign currency transaction gains and losses. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.
Security Loans — Under its Securities Lending Agency Agreement with the fund, Goldman Sachs Agency Lending, as lending agent, loans the securities of the fund to certain qualified institutions (the “Borrowers”) approved by the fund. Security loans can be terminated at the discretion of either the lending agent or the fund and the related securities must be returned within the earlier of the standard trade settlement period for such securities or within five business days. The loans are collateralized by cash and/or U.S. government securities in an amount typically at least equal to the market value of the securities loaned. On loans collateralized by cash, the cash collateral is invested in a money market fund. The market value of the loaned securities is determined at the close of business of the fund and any additional required collateral is delivered to the fund on the next business day. The lending agent provides the fund with indemnification against Borrower default. In the event of Borrower default, the lending agent will, for the benefit of the fund, either purchase securities identical to those loaned or pay the fund the market value of the loaned securities. In return, the lending agent assumes the fund's rights to the related collateral. If the collateral value is less than the cost to purchase identical securities or the cash needed to pay their market value, the lending agent is responsible for the shortfall, but only to the extent that such shortfall is not due to a decline in collateral value resulting from collateral reinvestment for which the fund bears the risk of loss. At period end, the fund had investment securities on loan, all of which were classified as equity securities in the fund's Portfolio of Investments, with a fair value of $41,329,483. The fair value of the fund's investment securities on loan and a related liability of $42,249,413 for the obligation to return cash collateral received on securities loaned are both presented gross in the Statement of Assets and Liabilities. The collateral on securities loaned exceeded the value of securities on loan at period end. The liability for cash collateral for securities loaned is carried at fair value, which is categorized as level 2 within the fair value hierarchy. A portion of the income generated upon investment of the collateral is remitted to the Borrowers, and the remainder is allocated
17
MFS New Discovery Value Fund
Notes to Financial Statements (unaudited) - continued
between the fund and the lending agent. On loans collateralized by U.S. government securities, a fee is received from the Borrower, and is allocated between the fund and the lending agent. Income from securities lending is separately reported in the Statement of Operations. The dividend and interest income earned on the securities loaned is accounted for in the same manner as other dividend and interest income.
Indemnifications — Under the fund's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the fund. Additionally, in the normal course of business, the fund enters into agreements with service providers that may contain indemnification clauses. The fund's maximum exposure under these agreements is unknown as this would involve future claims that may be made against the fund that have not yet occurred.
Investment Transactions and Income — Interest income is recorded on the accrual basis. Dividends received in cash are recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded when the fund is informed of the dividend if such information is obtained subsequent to the ex-dividend date. Dividend payments received in additional securities are recorded on the ex-dividend date in an amount equal to the value of the security on such date.
The fund may receive proceeds from litigation settlements. Any proceeds received from litigation involving portfolio holdings are reflected in the Statement of Operations in realized gain/loss if the security has been disposed of by the fund or in unrealized gain/loss if the security is still held by the fund. Any other proceeds from litigation not related to portfolio holdings are reflected as other income in the Statement of Operations.
Investment transactions are recorded on the trade date. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.
Tax Matters and Distributions — The fund intends to qualify as a regulated investment company, as defined under Subchapter M of the Internal Revenue Code, and to distribute all of its taxable income, including realized capital gains. As a result, no provision for federal income tax is required. The fund’s federal tax returns, when filed, will remain subject to examination by the Internal Revenue Service for generally a three-year period. Management has analyzed the fund’s tax positions taken on federal and state tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability. Foreign taxes, if any, have been accrued by the fund in the accompanying financial statements in accordance with the applicable foreign tax law. Foreign income taxes may be withheld by certain countries in which the fund invests. Additionally, capital gains realized by the fund on securities issued in or by certain foreign countries may be subject to capital gains tax imposed by those countries.
Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no impact on net assets or net asset value per share. Temporary differences which arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future.
Book/tax differences primarily relate to wash sale loss deferrals and treating a portion of the proceeds from redemptions as a distribution for tax purposes.
The tax character of distributions made during the current period will be determined at fiscal year end. The tax character of distributions declared to shareholders for the last fiscal year is as follows:
|
Year ended
2/28/26 |
|
|
Ordinary income (including any short-term capital gains) |
$90,674,426 |
|
Long-term capital gains |
180,649,513 |
|
Total distributions |
$271,323,939 |
The federal tax cost and the tax basis components of distributable earnings were as follows:
18
MFS New Discovery Value Fund
Notes to Financial Statements (unaudited) - continued
|
As of 8/31/26 |
|
|
Cost of investments |
$1,970,453,635 |
|
Gross appreciation |
466,002,250 |
|
Gross depreciation |
(101,865,174 ) |
|
Net unrealized appreciation (depreciation) |
$364,137,076 |
|
As of 2/28/26 |
|
|
Undistributed ordinary income |
5,436,888 |
|
Undistributed long-term capital gain |
72,485,942 |
|
Net unrealized appreciation (depreciation) |
548,521,924 |
The aggregate cost above includes prior fiscal year end tax adjustments, if applicable.
Multiple Classes of Shares of Beneficial Interest — The fund offers multiple classes of shares, which differ in their respective distribution and service fees. The fund's income, realized and unrealized gain (loss), and common expenses are allocated to shareholders based on the daily net assets of each class. Dividends are declared separately for each class. Differences in per share dividend rates are generally due to differences in separate class expenses. Class B and Class C shares will convert to Class A shares approximately eight years after purchase. The fund’s distributions declared to shareholders as reported in the Statements of Changes in Net Assets are presented by class as follows:
|
Six months
ended
8/31/26 |
Year
ended
2/28/26 |
|
|
Class A |
$8,264,425 |
$23,885,761 |
|
Class B |
8,703 |
77,170 |
|
Class C |
270,692 |
1,021,360 |
|
Class I |
22,374,305 |
83,631,459 |
|
Class R1 |
78,691 |
196,777 |
|
Class R2 |
131,115 |
376,593 |
|
Class R3 |
1,532,546 |
19,042,685 |
|
Class R4 |
1,802,809 |
6,161,094 |
|
Class R6 |
43,468,427 |
136,931,040 |
|
Total |
$77,931,713 |
$271,323,939 |
(3) Transactions with Affiliates
Investment Adviser — The fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to the fund. The management fee is computed daily and paid monthly at the following annual rates based on the fund's average daily net assets:
|
Up to $1 billion |
0.90% |
|
In excess of $1 billion and up to $2.5 billion |
0.80% |
|
In excess of $2.5 billion and up to $5 billion |
0.75% |
|
In excess of $5 billion |
0.70% |
MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund's Board of Trustees. MFS has also agreed in writing to waive at least 0.01% of its management fee as part of this agreement. The agreement to waive at least 0.01% of the management fee will continue until modified by the fund's Board of Trustees, but such agreement will continue at least until June 30, 2027. For the six months ended August 31, 2026, this management fee reduction amounted to $172,805, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the six months ended August 31, 2026 was equivalent to an annual effective rate of 0.83% of the fund's average daily net assets.
The investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, certain tax reclaim recovery expenses (including contingency fees and closing agreement expenses), and investment-related expenses, such that total fund operating expenses do not exceed the following rates annually of each class’s average daily net assets:
19
MFS New Discovery Value Fund
Notes to Financial Statements (unaudited) - continued
|
Classes |
||||||||
|
A |
B |
C |
I |
R1 |
R2 |
R3 |
R4 |
R6 |
|
1.39% |
2.14% |
2.14% |
1.14% |
2.14% |
1.64% |
1.39% |
1.14% |
1.07% |
This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until June 30, 2028. For the six months ended August 31, 2026, the fund’s actual operating expenses did not exceed the limit and therefore, the investment adviser did not pay any portion of the fund’s expenses related to this agreement.
Distributor — MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, as distributor, received $2,131 for the six months ended August 31, 2026, as its portion of the initial sales charge on sales of Class A shares of the fund.
The Board of Trustees has adopted a distribution plan for certain share classes pursuant to Rule 12b-1 of the Investment Company Act of 1940.
The fund's distribution plan provides that the fund will pay MFD for services provided by MFD and financial intermediaries in connection with the distribution and servicing of certain share classes. One component of the plan is a distribution fee paid to MFD and another component of the plan is a service fee paid to MFD. MFD may subsequently pay all, or a portion, of the distribution and/or service fees to financial intermediaries. The distribution and service fees are computed daily and paid monthly.
Distribution Plan Fee Table:
|
Distribution
Fee Rate (d) |
Service
Fee Rate (d) |
Total
Distribution
Plan (d) |
Annual
Effective
Rate (e) |
Distribution
and Service
Fee |
|
|
Class A |
— |
0.25% |
0.25% |
0.25% |
$303,095 |
|
Class B |
0.75% |
0.25% |
1.00% |
1.00% |
2,033 |
|
Class C |
0.75% |
0.25% |
1.00% |
1.00% |
39,475 |
|
Class R1 |
0.75% |
0.25% |
1.00% |
1.00% |
10,415 |
|
Class R2 |
0.25% |
0.25% |
0.50% |
0.50% |
9,534 |
|
Class R3 |
— |
0.25% |
0.25% |
0.25% |
201,575 |
|
Total Distribution and Service Fees |
$566,127 |
(d)
In accordance with the distribution plan for certain classes, the fund pays distribution and/or service fees equal to these annual percentage rates of each
class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting
period. Any rate changes, if applicable, are detailed below.
(e)
The annual effective rates represent actual fees incurred under the distribution plan for the six months ended August 31, 2026 based on each class's average daily net assets. MFD has voluntarily agreed to rebate a portion of each class's 0.25% service fee attributable to accounts for which there is no financial intermediary specified on the account except for accounts attributable to MFS or its affiliates' seed money. For the six months ended August 31, 2026, there were no service fee rebates.
Certain Class A shares are subject to a contingent deferred sales charge (CDSC) in the event of a shareholder redemption within 18 months of purchase. Class B shares are subject to a CDSC in the event of a shareholder redemption within six years of purchase. Class C shares are subject to a CDSC in the event of a shareholder redemption within 12 months of purchase. All contingent deferred sales charges are paid to MFD and during the six months ended August 31, 2026, were as follows:
|
Amount |
|
|
Class A |
$320 |
|
Class B |
— |
|
Class C |
64 |
Shareholder Servicing Agent — MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent calculated as a percentage of the average daily net assets of the fund as determined periodically under the supervision of the fund's Board of Trustees. For the six months ended August 31, 2026, the fee was $37,954, which equated to 0.0030% annually of the fund's average daily net assets. MFSC also receives reimbursement from the fund for out-of-pocket expenses, sub-accounting and other shareholder servicing costs which may be paid to affiliated and unaffiliated service providers. Class R6 shares do not incur sub-accounting fees. For the six months ended August 31, 2026, these out-of-pocket expenses, sub-accounting and other shareholder servicing costs amounted to $626,221.
20
MFS New Discovery Value Fund
Notes to Financial Statements (unaudited) - continued
Administrator — MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to the fund. Under an administrative services agreement, the fund reimburses MFS the costs incurred to provide these services. The fund is charged an annual fixed amount of $17,500 plus a fee based on average daily net assets. The administrative services fee is computed daily and paid monthly. The administrative services fee incurred for the six months ended August 31, 2026 was equivalent to an annual effective rate of 0.0139% of the fund's average daily net assets.
Trustees’ and Officers’ Compensation — The fund pays compensation to independent Trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee chairpersons. Independent Trustees’ compensation is accrued daily and paid subsequent to each Trustee Board meeting. The fund does not pay compensation directly to Trustees or officers of the fund who are also officers of the investment adviser, all of whom receive remuneration from MFS for their services to the fund. Certain officers and Trustees of the fund are officers or directors of MFS, MFD, and MFSC.
Other — The fund invests in the MFS Institutional Money Market Portfolio which is managed by MFS and seeks current income consistent with preservation of capital and liquidity. This money market fund does not pay a management fee to MFS but does incur investment and operating costs.
During the six months ended August 31, 2026, pursuant to a policy adopted by the Board of Trustees and designed to comply with Rule 17a-7 under the Investment Company Act of 1940 (the “Act”) and relevant guidance, the fund engaged in sale transactions with funds and accounts for which MFS serves as investment adviser or sub-adviser (“cross-trades”) which amounted to $3,013,498. The sales transactions resulted in net realized gains (losses) of $1,579,599.
The adviser has voluntarily undertaken to reimburse the fund from its own resources on a quarterly basis for the cost of investment research embedded in the cost of the fund’s securities trades. This agreement may be rescinded at any time. For the six months ended August 31, 2026, this reimbursement amounted to $153,467, which is included in “Other” income in the Statement of Operations.
(4) Portfolio Securities
For the six months ended August 31, 2026, purchases and sales of investments, other than short-term obligations, aggregated $750,384,070 and $1,300,080,769, respectively.
(5) Shares of Beneficial Interest
The fund's Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest. Transactions in fund shares were as follows:
|
Six months ended
8/31/26 |
Year ended
2/28/26 |
|||
|
Shares |
Amount |
Shares |
Amount |
|
|
Shares sold |
||||
|
Class A |
231,459 |
$4,209,847 |
518,587 |
$8,844,756 |
|
Class B |
— |
— |
254 |
4,001 |
|
Class C |
4,862 |
78,476 |
11,953 |
189,419 |
|
Class I |
1,017,567 |
18,302,776 |
5,167,728 |
89,957,100 |
|
Class R1 |
2,467 |
40,761 |
6,535 |
103,472 |
|
Class R2 |
5,876 |
103,525 |
18,964 |
318,899 |
|
Class R3 |
288,375 |
5,225,676 |
1,396,891 |
24,075,895 |
|
Class R4 |
200,676 |
3,657,570 |
393,967 |
6,877,338 |
|
Class R6 |
3,046,423 |
56,001,964 |
10,618,203 |
179,864,840 |
|
4,797,705 |
$87,620,595 |
18,133,082 |
$310,235,720 |
|
21
MFS New Discovery Value Fund
Notes to Financial Statements (unaudited) - continued
|
Six months ended 8/31/26 |
Year ended 2/28/26 |
|||
|
Shares |
Amount |
Shares |
Amount |
|
|
Shares issued to shareholders
in reinvestment of distributions |
||||
|
Class A |
451,472 |
$8,257,423 |
1,426,401 |
$23,851,179 |
|
Class B |
520 |
8,703 |
4,899 |
75,618 |
|
Class C |
16,366 |
270,692 |
66,907 |
1,021,277 |
|
Class I |
1,192,961 |
22,129,428 |
4,868,412 |
82,402,405 |
|
Class R1 |
4,740 |
78,691 |
12,853 |
196,777 |
|
Class R2 |
7,276 |
131,115 |
22,821 |
376,593 |
|
Class R3 |
83,517 |
1,532,546 |
1,136,149 |
19,042,685 |
|
Class R4 |
96,925 |
1,802,809 |
363,231 |
6,161,094 |
|
Class R6 |
2,072,858 |
38,638,078 |
7,214,732 |
122,596,325 |
|
3,926,635 |
$72,849,485 |
15,116,405 |
$255,723,953 |
|
|
Shares reacquired |
||||
|
Class A |
(1,189,519 ) |
$(21,538,300 ) |
(3,238,497 ) |
$(55,666,499 ) |
|
Class B |
(27,037 ) |
(449,153 ) |
(62,310 ) |
(982,610 ) |
|
Class C |
(176,348 ) |
(2,903,400 ) |
(418,113 ) |
(6,536,459 ) |
|
Class I |
(12,765,526 ) |
(231,543,881 ) |
(32,018,033 ) |
(555,185,546 ) |
|
Class R1 |
(8,381 ) |
(134,281 ) |
(3,807 ) |
(60,240 ) |
|
Class R2 |
(24,514 ) |
(441,129 ) |
(37,615 ) |
(649,424 ) |
|
Class R3 |
(8,800,967 ) |
(166,207,589 ) |
(3,193,997 ) |
(55,761,136 ) |
|
Class R4 |
(950,413 ) |
(17,588,525 ) |
(711,351 ) |
(12,505,354 ) |
|
Class R6 |
(12,657,009 ) |
(234,912,759 ) |
(20,434,185 ) |
(360,758,968 ) |
|
(36,599,714 ) |
$(675,719,017 ) |
(60,117,908 ) |
$(1,048,106,236 ) |
|
|
Net change |
||||
|
Class A |
(506,588 ) |
$(9,071,030 ) |
(1,293,509 ) |
$(22,970,564 ) |
|
Class B |
(26,517 ) |
(440,450 ) |
(57,157 ) |
(902,991 ) |
|
Class C |
(155,120 ) |
(2,554,232 ) |
(339,253 ) |
(5,325,763 ) |
|
Class I |
(10,554,998 ) |
(191,111,677 ) |
(21,981,893 ) |
(382,826,041 ) |
|
Class R1 |
(1,174 ) |
(14,829 ) |
15,581 |
240,009 |
|
Class R2 |
(11,362 ) |
(206,489 ) |
4,170 |
46,068 |
|
Class R3 |
(8,429,075 ) |
(159,449,367 ) |
(660,957 ) |
(12,642,556 ) |
|
Class R4 |
(652,812 ) |
(12,128,146 ) |
45,847 |
533,078 |
|
Class R6 |
(7,537,728 ) |
(140,272,717 ) |
(2,601,250 ) |
(58,297,803 ) |
|
(27,875,374 ) |
$(515,248,937 ) |
(26,868,421 ) |
$(482,146,563 ) |
|
The fund is one of several mutual funds in which certain MFS funds may invest. The MFS funds do not invest in the underlying funds for the purpose of exercising management or control. At the end of the period, the MFS Growth Allocation Fund, the MFS Moderate Allocation Fund, the MFS Aggressive Growth Allocation Fund, and the MFS Conservative Allocation Fund were the owners of record of approximately 6%, 4%, 3%, and 2%, respectively, of the value of outstanding voting shares of the fund. In addition, the MFS Lifetime 2030 Fund, the MFS Lifetime 2035 Fund, the MFS Lifetime 2040 Fund, the MFS Lifetime 2045 Fund, the MFS Lifetime 2050 Fund, the MFS Lifetime 2055 Fund, the MFS Lifetime 2060 Fund, the MFS Lifetime 2065 Fund, the MFS Lifetime 2070 Fund, and the MFS Lifetime Income Fund were each the owners of record of less than 1% of the value of outstanding voting shares of the fund.
Effective June 1, 2019, purchases of the fund’s Class B shares were closed to new and existing investors subject to certain exceptions. Effective at the close of business on August 14, 2019, the fund was closed to new investors subject to certain exceptions. Effective September 29, 2023, purchases of the fund's Class R1 and Class R2 shares were closed to new eligible investors.
22
MFS New Discovery Value Fund
Notes to Financial Statements (unaudited) - continued
(6) Line of Credit
The fund and certain other funds managed by MFS participate in a $1.45 billion unsecured committed line of credit of which $1.2 billion is reserved for use by the fund and certain other MFS U.S. funds. The line of credit is provided by a syndicate of banks under a credit agreement. Borrowings may be made for temporary financing needs. Interest is charged to each fund, based on its borrowings, generally at a rate equal to the highest of 1) Daily Simple SOFR (Secured Overnight Financing Rate), 2) the Federal Funds Effective Rate, or 3) the Overnight Bank Funding Rate, each plus an agreed upon spread. A commitment fee, based on the average daily unused portion of the committed line of credit, is allocated among the participating funds. The line of credit expires on March 11, 2027 unless extended or renewed. In addition, the fund and other funds managed by MFS have established unsecured uncommitted borrowing arrangements with certain banks for temporary financing needs. Interest is charged to each fund, based on its borrowings, at rates equal to customary reference rates plus an agreed upon spread. For the six months ended August 31, 2026, the fund’s commitment fee and interest expense were $6,225 and $12,861, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.
(7) Investments in Affiliated Issuers
An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. The following were affiliated issuers for the six months ended August 31, 2026:
|
Affiliated Issuers |
Beginning
Value |
Purchases |
Sales
Proceeds |
Realized
Gain
(Loss) |
Change in
Unrealized
Appreciation or
Depreciation |
Ending
Value |
|
MFS Institutional Money Market Portfolio |
$2,381,565 |
$381,567,913 |
$370,378,210 |
$5,286 |
$— |
$13,576,554 |
|
Affiliated Issuers |
Dividend
Income |
Capital Gain
Distributions |
|
MFS Institutional Money Market Portfolio |
$424,571 |
$— |
23
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
There is nothing to report for this item for MFS New Discovery Value Fund.
ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
There is nothing to report for this item for MFS New Discovery Value Fund.
ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.
This information is disclosed as part of the financial statements included in Item 7 above for MFS New Discovery Value Fund. See the Statement of Operations and Note 3 within the Notes to Financial Statements for more information.
ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.
24
MFS New Discovery Value Fund
Board Review of Investment Advisory Agreement
MFS New Discovery Value Fund
The Investment Company Act of 1940 requires that both the full Board of Trustees and a majority of the non-interested (“independent”) Trustees, voting separately, annually approve the continuation of the Fund’s investment advisory agreement with MFS. The Trustees consider matters bearing on the Fund and its advisory arrangements at their meetings throughout the year, including a review of performance data at each regular meeting. In addition, the independent Trustees met several times over the course of several months beginning in April and ending in July, 2026 (“contract review meetings”) for the specific purpose of considering whether to approve the continuation of the investment advisory agreement for the Fund and the other investment companies that the Board oversees (the “MFS Funds”). The independent Trustees were assisted in their evaluation of the Fund’s investment advisory agreement by independent legal counsel, from whom they received separate legal advice and with whom they met separately from MFS during various contract review meetings. The independent Trustees were also assisted in this process by an independent consultant who was retained by and reported to the independent Trustees.
In connection with their deliberations regarding the continuation of the investment advisory agreement, the Trustees, including the independent Trustees, considered such information and factors as they believed, in light of the legal advice furnished to them and their own business judgment, to be relevant. The investment advisory agreement for the Fund was considered separately, although the Trustees also took into account the common interests of all MFS Funds in their review. As described below, the Trustees considered the nature, quality, and extent of the various investment advisory, administrative, and shareholder services performed by MFS under the existing investment advisory agreement and other arrangements with the Fund.
In connection with their contract review meetings, the Trustees received and relied upon materials that included, among other items: (i) information provided by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third party, on the investment performance of the Fund for various time periods ended December 31, 2025 and the investment performance of a group of funds with substantially similar investment classifications/objectives (the “Broadridge performance universe”), (ii) information provided by Broadridge on the Fund’s advisory fees and other expenses and the advisory fees and other expenses of comparable funds identified by Broadridge as well as all other funds in the same investment classification/category (the “Broadridge expense group and universe”), (iii) information provided by MFS on the advisory fees of portfolios of other clients of MFS, including institutional separate accounts and other clients, (iv) information as to whether and to what extent applicable expense waivers, reimbursements or fee “breakpoints” are observed for the Fund, (v) information regarding MFS’ financial results and financial condition, including MFS’ and certain of its affiliates’ estimated profitability from services performed for the Fund and the MFS Funds as a whole, and compared to MFS’ institutional business, (vi) MFS’ views regarding the outlook for the mutual fund industry and the strategic business plans of MFS, (vii) descriptions of various functions performed by MFS for the Funds, such as compliance monitoring and portfolio trading practices, and (viii) information regarding the overall organization of MFS, including information about MFS’ senior management and other personnel providing investment advisory, administrative and other services to the Fund and the other MFS Funds. The comparative performance, fee and expense information prepared and provided by Broadridge was not independently verified and the independent Trustees did not independently verify any information provided to them by MFS.
The Trustees’ conclusion as to the continuation of the investment advisory agreement was based on a comprehensive consideration of all information provided to the Trustees and not the result of any single factor. Some of the factors that figured particularly in the Trustees’ deliberations are described below, although individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors. It is also important to recognize that the fee arrangements for the Fund and other MFS Funds are the result of years of review and discussion between the independent Trustees and MFS, that certain aspects of such arrangements may receive greater scrutiny in some years than in others, and that the Trustees’ conclusions may be based, in part, on their consideration of these same arrangements during the course of the year and in prior years.
Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods. The Trustees placed particular emphasis on the total return performance of the Fund’s Class I shares in comparison to the performance of funds in its Broadridge performance universe over the five-year period ended December 31, 2025, which the Trustees believed was a long enough period to reflect differing market conditions. The total return performance of the Fund’s Class I shares was in the 4th quintile relative to the other funds in the universe for this five-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers). The total return performance of the Fund’s Class I shares was in the 4th quintile for the one-year period and the 5th quintile for the three-year period ended December 31, 2025 relative to the Broadridge performance universe. Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
The Trustees expressed concern to MFS about the substandard investment performance of the Fund. In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year, as to MFS’ efforts to improve the Fund’s performance. In addition, the Trustees requested that they receive a separate update on the Fund’s performance at each of their regular meetings. After reviewing these and related factors, the Trustees concluded, within the context
25
MFS New Discovery Value Fund
Board Review of Investment Advisory Agreement - continued
of their overall conclusions regarding the investment advisory agreement, that MFS’ responses and efforts and plans to improve investment performance were sufficient to support approval of the continuance of the investment advisory agreement for an additional one-year period, but that they would continue to closely monitor the performance of the Fund.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered, among other information, the Fund’s advisory fee and the total expense ratio of the Fund’s Class I shares as a percentage of average daily net assets and the advisory fee and total expense ratios of the Broadridge expense group based on information provided by Broadridge. The Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval. The Trustees also considered that, according to the data provided by Broadridge (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate and total expense ratio were each approximately at the Broadridge expense group median.
The Trustees also considered the advisory fees charged by MFS to any institutional separate accounts advised by MFS (“separate accounts”) and unaffiliated investment companies for which MFS serves as subadviser (“subadvised funds”) that have comparable investment strategies to the Fund, if any. In comparing these fees, the Trustees considered information provided by MFS as to the generally broader scope of services provided by MFS to the Fund, as well as the more extensive regulatory burdens imposed on MFS in managing the Fund, in comparison to separate accounts and subadvised funds. The Trustees also considered the higher demands placed on MFS’ investment personnel and trading infrastructure as a result of the daily cash in-flows and out-flows of the Fund in comparison to separate accounts.
The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole. They noted that the Fund’s advisory fee rate schedule is subject to contractual breakpoints that reduce the Fund’s advisory fee rate on average daily net assets over $1 billion, $2.5 billion, and $5 billion. The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level. The group fee waiver is reviewed and renewed annually between the Board and MFS. The Trustees concluded that the breakpoints and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.
The Trustees also considered information prepared by MFS relating to MFS’ costs and profits with respect to the Fund, the MFS Funds considered as a group, and other investment companies and accounts advised by MFS, as well as MFS’ methodologies used to determine and allocate its costs to the MFS Funds, the Fund and other accounts and products for purposes of estimating profitability.
After reviewing these and other factors described herein, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that the advisory fees charged to the Fund represent reasonable compensation in light of the services being provided by MFS to the Fund.
In addition, the Trustees considered MFS’ resources and related efforts to continue to retain, attract and motivate capable personnel to serve the Fund. The Trustees also considered current and developing conditions in the financial services industry, including the presence of large and well-capitalized companies which are spending, and appear to be prepared to continue to spend, substantial sums to engage personnel and to provide services to competing investment companies. In this regard, the Trustees also considered the financial resources of MFS and its ultimate parent, Sun Life Financial Inc. The Trustees also considered the advantages and possible disadvantages to the Fund of having an adviser that also serves other investment companies as well as other accounts.
The Trustees also considered the nature, quality, cost, and extent of administrative, transfer agency, and distribution services provided to the Fund by MFS and its affiliates under agreements and plans other than the investment advisory agreement, including any 12b-1 fees the Fund pays to MFS Fund Distributors, Inc., an affiliate of MFS. The Trustees also considered the nature, extent and quality of certain other services MFS performs or arranges for on the Fund’s behalf, which may include securities lending programs, directed expense payment programs, class action recovery programs, and MFS’ interaction with third-party service providers, principally custodians and sub-custodians. The Trustees concluded that the various non-advisory services provided by MFS and its affiliates on behalf of the Fund were satisfactory.
The Trustees considered so-called “fall-out benefits” to MFS such as reputational value derived from serving as investment manager to the MFS Funds. The Trustees also considered that MFS discontinued its historic practice of obtaining investment research from portfolio brokerage commissions paid by certain MFS Funds effective January 2018, and directly pays or voluntarily reimburses a Fund, if applicable, for the costs of external research acquired through the use of the Fund’s portfolio brokerage commissions.
Based on their evaluation of factors that they deemed to be material, including those factors described above, the Board of Trustees, including the independent Trustees, concluded that the Fund’s investment advisory agreement with MFS should be continued for an additional one-year period, commencing August 1, 2026.
26
ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable to the Registrant.
ITEM 15. 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 16. CONTROLS AND PROCEDURES.
-
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.
-
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 17. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.
Not applicable to the Registrant.
ITEM 19. EXHIBITS.
-
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.
-
Any policy required by the listing standards adopted pursuant to Rule 10D-1 under the Exchange Act (17 CFR 240.10D-1) by the registered national securities exchange or registered national securities association upon which the registrant’s securities are listed. Not applicable.
-
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.
-
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.
-
Change in the registrant's independent public accountant. Not applicable.
-
If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for the purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Attached hereto as EX-99.906CERT.
Notice
A copy of the Amended and Restated Declaration of Trust, as amended, of the Registrant is on file with the Secretary of State of The Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and the obligations of or arising out of this instrument are not binding upon any of the Trustees or shareholders individually, but are binding only upon the assets and property of the respective constituent series of the Registrant.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) MFS SERIES TRUST XIII
By (Signature and Title)*
/S/ DAVID L. DILORENZO
David L. DiLorenzo, President
Date: October 16, 2026
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: October 16, 2026
By (Signature and Title)*
/S/ KASEY L. PHILLIPS
Kasey L. Phillips, Treasurer (Principal Financial Officer and Accounting Officer)
Date: October 16, 2026
* Print name and title of each signing officer under his or her signature.