MFS LOW VOLATILITY EQUITY FUND

Transcription

1 QUARTERLY REPORT November 30, 2017 MFS LOW VOLATILITY EQUITY FUND

2 PORTFOLIO OF INVESTMENTS 11/30/17 (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 Value ($) Common Stocks 99.2% Aerospace 5.2% General Dynamics Corp. 2,534 $ 524,943 Honeywell International, Inc. 9,534 1,486,923 Lockheed Martin Corp. 2, ,071 Northrop Grumman Corp. 4,098 1,259,725 United Technologies Corp. 4, ,981 $ 4,708,643 Alcoholic Beverages 1.5% Constellation Brands, Inc., A 6,101 $ 1,327,517 Brokerage & Asset Managers 1.4% CME Group, Inc. 8,389 $ 1,254,491 Business Services 2.5% Amdocs Ltd. 35,386 $ 2,310,352 Cable TV 0.7% Comcast Corp., A 16,596 $ 623,014 Computer Software 2.0% Blackbaud, Inc. 4,078 $ 401,479 Intuit, Inc. 6,962 1,094,566 Oracle Corp. 7, ,881 $ 1,851,926 Computer Software - Systems 0.8% Apple, Inc. 4,287 $ 736,721 Consumer Products 1.8% Colgate-Palmolive Co. 5,887 $ 426,513 Procter & Gamble Co. 13,585 1,222,514 $ 1,649,027 Consumer Services 1.7% Bright Horizons Family Solutions, Inc. (a) 17,612 $ 1,566,587 Electronics 1.3% Texas Instruments, Inc. 12,305 $ 1,197,153 Energy - Independent 0.7% Occidental Petroleum Corp. 8,960 $ 631,680 Energy - Integrated 0.8% Exxon Mobil Corp. 8,183 $ 681,562 Entertainment 0.7% Madison Square Garden Co., A (a) 2,863 $ 620,269 Food & Beverages 5.9% Coca-Cola Co. 8,298 $ 379,799 Dr Pepper Snapple Group, Inc. 4, ,994 General Mills, Inc. 18,814 1,064,120 Mondelez International, Inc. 8, ,743 PepsiCo, Inc. 22,881 2,666,094 1

3 Portfolio of Investments (unaudited) continued Issuer Value ($) Common Stocks continued Food & Beverages continued Pinnacle Foods, Inc. 8,489 $ 494,315 $ 5,359,065 Gaming & Lodging 1.1% Carnival Corp. 15,490 $ 1,016,764 General Merchandise 4.3% Costco Wholesale Corp. 10,424 $ 1,922,498 Wal-Mart Stores, Inc. 20,552 1,998,271 $ 3,920,769 Health Maintenance Organizations 3.6% Aetna, Inc. 3,498 $ 630,270 Cigna Corp. 6,595 1,396,359 UnitedHealth Group, Inc. 5,321 1,214,093 $ 3,240,722 Insurance 9.1% Aon PLC 8,778 $ 1,230,851 Chubb Ltd. 4, ,759 Everest Re Group Ltd. 6,127 1,345,489 Hartford Financial Services Group, Inc. 18,437 1,059,021 Loews Corp. 24,178 1,215,670 Markel Corp. (a) 1,307 1,446,718 MetLife, Inc. 11, ,216 Travelers Cos., Inc. 4, ,636 $ 8,272,360 Internet 4.9% Alphabet, Inc., A (a) 2,004 $ 2,076,485 Alphabet, Inc., C (a) ,956 Facebook, Inc., A (a) 10,951 1,940,298 $ 4,491,739 Major Banks 0.6% PNC Financial Services Group, Inc. 4,000 $ 562,240 Medical & Health Technology & Services 1.5% Healthcare Services Group, Inc. 13,332 $ 692,331 Henry Schein, Inc. (a) 9, ,272 $ 1,361,603 Medical Equipment 6.2% Becton, Dickinson and Co. 2,100 $ 479,241 Cooper Cos., Inc. 3, ,746 Danaher Corp. 11,892 1,122,129 Medtronic PLC 15,274 1,254,454 Steris PLC 12,326 1,108,847 Stryker Corp. 2, ,496 Zimmer Biomet Holdings, Inc. 3, ,160 $ 5,606,073 Network & Telecom 1.9% Cisco Systems, Inc. 35,522 $ 1,324,971 Motorola Solutions, Inc. 4, ,835 $ 1,763,806 Oil Services 1.5% Schlumberger Ltd. 21,623 $ 1,359,006 2

4 Portfolio of Investments (unaudited) continued Issuer Value ($) Common Stocks continued Other Banks & Diversified Financials 2.9% M&T Bank Corp. 4,584 $ 774,467 Mastercard, Inc., A 5, ,011 U.S. Bancorp 9, ,846 Visa, Inc., A 4, ,528 $ 2,648,852 Pharmaceuticals 6.6% Eli Lilly & Co. 20,566 $ 1,740,706 Johnson & Johnson 15,189 2,116,283 Merck & Co., Inc. 22,841 1,262,422 Pfizer, Inc. 12, ,720 Zoetis, Inc. 5, ,342 $ 5,998,473 Pollution Control 2.6% Waste Connections, Inc. 34,251 $ 2,357,496 Real Estate 6.7% AvalonBay Communities, Inc., REIT 6,523 $ 1,182,816 Equity Lifestyle Properties, Inc., REIT 6, ,621 Mid-America Apartment Communities, Inc., REIT 6, ,006 Public Storage, Inc., REIT 4,745 1,011,254 Starwood Property Trust, Inc., REIT 84,694 1,836,166 Store Capital Corp., REIT 14, ,228 Sun Communities, Inc., REIT 4, ,918 $ 6,108,009 Restaurants 3.8% Aramark 12,774 $ 544,172 McDonald s Corp. 13,120 2,256,247 Starbucks Corp. 11, ,689 $ 3,452,108 Specialty Chemicals 1.5% Ecolab, Inc. 7,090 $ 963,673 Praxair, Inc. 2, ,124 $ 1,382,797 Specialty Stores 0.7% Home Depot, Inc. 3,625 $ 651,848 Telecommunications - Wireless 0.5% SBA Communications Corp., REIT (a) 2,756 $ 467,831 Telephone Services 0.8% Verizon Communications, Inc. 14,673 $ 746,709 Tobacco 2.8% Altria Group, Inc. 25,689 $ 1,742,485 Philip Morris International, Inc. 8, ,007 $ 2,568,492 Utilities - Electric Power 8.6% Alliant Energy Corp. 20,788 $ 937,747 American Electric Power Co., Inc. 7, ,670 DTE Energy Co. 9,602 1,109,703 Duke Energy Corp. 14,123 1,259,489 Exelon Corp. 11, ,152 3

5 Portfolio of Investments (unaudited) continued Issuer Value ($) Common Stocks continued Utilities - Electric Power continued NextEra Energy, Inc. 7,557 $ 1,194,308 Pinnacle West Capital Corp. 4, ,766 WEC Energy Group, Inc. 6, ,872 Xcel Energy, Inc. 28,337 1,462,473 $ 7,801,180 Total Common Stocks $90,296,884 Investment Companies (h) 0.0% Money Market Funds 0.0% MFS Institutional Money Market Portfolio, 1.19% (v) 26,565 $ 26,562 Other Assets, Less Liabilities 0.8% 762,730 Net Assets 100.0% $91,086,176 (a) (h) (v) Non-income producing security. 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. At period end, the aggregate values of the fund s investments in affiliated issuers and in unaffiliated issuers were $26,562 and $90,296,884, respectively. 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: PLC Public Limited Company REIT Real Estate Investment Trust See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report. 4

6 Supplemental Information 11/30/17 (unaudited) The fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies. (1) Investment Valuations 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. Securities and other assets, including commodity-linked structured notes, generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. Values obtained from third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under the fund s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an 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 halting 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 on a frequent basis 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 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 November 30, 2017 in valuing the fund s assets or liabilities: Financial Instruments Level 1 Level 2 Level 3 Total Equity Securities $90,296,884 $ $ $90,296,884 Mutual Funds 26,562 26,562 Total $90,323,446 $ $ $90,323,446 For further information regarding security characteristics, see the Portfolio of Investments. 5

7 Supplemental Information (unaudited) continued (2) Investments in Affiliated Issuers An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the fund assumes the following to be affiliated issuers: Affiliated Issuers Beginning Acquisitions Dispositions Ending MFS Institutional Money Market Portfolio 631,939 4,600,229 (5,205,603) 26,565 Affiliated Issuers Realized Gain (Loss) Change in Unrealized Appreciation (Depreciation) Capital Gain Distributions Dividend Income MFS Institutional Money Market Portfolio $(91) $ $ $1,485 $26,562 Ending Value 6