Quarterly Report July 31, 2018 MFS. Global Growth Fund

Transcription

1 Quarterly Report July 31, 2018 MFS Global Growth Fund

2 PORTFOLIO OF INVESTMENTS 7/31/18 (unaudited) The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes. Common Stocks 98.9% Aerospace 2.0% Rolls-Royce Holdings PLC 207,453 $ 2,698,418 United Technologies Corp. 29,698 4,031,206 $ 6,729,624 Airlines 0.8% Aena S.A. 14,982 $ 2,722,484 Alcoholic Beverages 3.1% AmBev S.A., ADR 475,968 $ 2,446,476 Diageo PLC 93,806 3,449,964 Pernod Ricard S.A. 28,894 4,660,944 $ 10,557,384 Apparel Manufacturers 6.5% Adidas AG 18,491 $ 4,089,887 Burberry Group PLC 98,063 2,711,974 Compagnie Financiere Richemont S.A. 13,843 1,216,322 LVMH Moet Hennessy Louis Vuitton SE 16,091 5,623,165 NIKE, Inc., B 59,594 4,583,374 VF Corp. 43,510 4,005,966 $ 22,230,688 Broadcasting 0.3% Walt Disney Co. 9,555 $ 1,085,066 Brokerage & Asset Managers 1.8% Blackstone Group LP 137,496 $ 4,801,360 Charles Schwab Corp. 26,151 1,335,270 $ 6,136,630 Business Services 12.3% Accenture PLC, A 48,155 $ 7,672,536 Brenntag AG 43,276 2,595,014 Cognizant Technology Solutions Corp., A 60,965 4,968,647 Compass Group PLC 89,491 1,925,780 Experian Group Ltd. 242,300 5,959,898 Fidelity National Information Services, Inc. 47,413 4,889,703 Fiserv, Inc. (a) 77,998 5,887,289 Intertek Group PLC 24,835 1,916,714 Verisk Analytics, Inc., A (a) 55,745 6,166,512 $ 41,982,093 Cable TV 1.8% Comcast Corp., A 174,140 $ 6,230,729 Chemicals 0.8% PPG Industries, Inc. 26,209 $ 2,900,288 Computer Software 3.1% Dassault Systemes S.A. 9,144 $ 1,366,506 Microsoft Corp. 88,081 9,343,633 $ 10,710,139 Computer Software - Systems 1.3% Apple, Inc. 23,713 $ 4,512,347 1

3 Portfolio of Investments (unaudited) continued Common Stocks continued Construction 1.6% Sherwin-Williams Co. 12,171 $ 5,364,125 Consumer Products 6.8% Colgate-Palmolive Co. 59,209 $ 3,967,595 Coty, Inc., A 196,091 2,629,580 Estee Lauder Cos., Inc., A 29,114 3,928,643 Kose Corp. 5,900 1,128,659 L Oréal S.A. 17,277 4,232,499 Reckitt Benckiser Group PLC 81,378 7,260,059 $ 23,147,035 Electrical Equipment 2.8% Amphenol Corp., A 40,942 $ 3,828,486 Fortive Corp. 40,377 3,314,144 Mettler-Toledo International, Inc. (a) 4,070 2,411,516 $ 9,554,146 Electronics 6.2% Analog Devices, Inc. 48,205 $ 4,634,429 Samsung Electronics Co. Ltd. 67,188 2,777,853 Taiwan Semiconductor Manufacturing Co. Ltd., ADR 195,708 8,065,126 Texas Instruments, Inc. 52,550 5,849,866 $ 21,327,274 Food & Beverages 3.5% Chr. Hansen Holding A.S. 7,366 $ 762,660 Danone S.A. 35,929 2,823,732 Nestle S.A. 77,376 6,306,361 PepsiCo, Inc. 17,134 1,970,410 $ 11,863,163 Food & Drug Stores 1.2% Sundrug Co. Ltd. 106,100 $ 4,241,533 Gaming & Lodging 1.6% Paddy Power Betfair PLC 50,485 $ 5,493,293 General Merchandise 1.4% Dollarama, Inc. 54,818 $ 1,980,587 Lojas Renner S.A. 338,164 2,782,219 $ 4,762,806 Insurance 1.7% Aon PLC 41,867 $ 6,010,008 Internet 7.4% Alibaba Group Holding Ltd., ADR (a) 25,673 $ 4,806,756 Alphabet, Inc., A (a) 11,135 13,665,095 Baidu, Inc., ADR (a) 18,446 4,559,482 Naver Corp. 3,574 2,287,564 $ 25,318,897 Leisure & Toys 1.1% Electronic Arts, Inc. (a) 28,258 $ 3,638,217 2

4 Portfolio of Investments (unaudited) continued Common Stocks continued Machinery & Tools 3.5% Colfax Corp. (a) 41,687 $ 1,346,490 Daikin Industries Ltd. 35,300 4,205,125 Nordson Corp. 36,404 4,882,140 Schindler Holding AG 7,037 1,640,297 $ 12,074,052 Medical & Health Technology & Services 0.8% CVS Health Corp. 28,580 $ 1,853,699 Express Scripts Holding Co. (a) 10, ,792 $ 2,649,491 Medical Equipment 5.4% Abbott Laboratories 68,550 $ 4,492,767 Cooper Cos., Inc. 6,653 1,733,106 Danaher Corp. 25,701 2,636,409 Sonova Holding AG 7,948 1,467,348 Thermo Fisher Scientific, Inc. 25,835 6,059,082 Waters Corp. (a) 10,267 2,025,371 $ 18,414,083 Oil Services 0.7% Schlumberger Ltd. 34,520 $ 2,330,790 Other Banks & Diversified Financials 5.7% Credicorp Ltd. 12,931 $ 2,958,225 HDFC Bank Ltd. 157,800 5,014,490 Julius Baer Group Ltd. 47,921 2,634,772 Mastercard, Inc., A 17,580 3,480,840 Visa, Inc., A 39,947 5,462,353 $ 19,550,680 Pharmaceuticals 3.7% Bayer AG 60,723 $ 6,764,074 Roche Holding AG 15,669 3,846,236 Zoetis, Inc. 24,184 2,091,432 $ 12,701,742 Printing & Publishing 1.4% Moody s Corp. 28,743 $ 4,918,502 Railroad & Shipping 1.8% Adani Ports and Special Economic Zone Ltd. 196,826 $ 1,147,186 Union Pacific Corp. 33,404 5,006,926 $ 6,154,112 Restaurants 1.8% Starbucks Corp. 116,150 $ 6,085,098 Specialty Chemicals 3.5% Croda International PLC 51,663 $ 3,485,448 Ecolab, Inc. 30,216 4,251,391 Sika AG 18,869 2,685,090 Symrise AG 16,368 1,479,133 $ 11,901,062 Specialty Stores 1.5% TJX Cos., Inc. 53,035 $ 5,158,184 Total Common Stocks $338,455,765 3

5 Portfolio of Investments (unaudited) continued Investment Companies (h) 1.1% Money Market Funds 1.1% MFS Institutional Money Market Portfolio, 1.98% (v) 3,826,151 $ 3,825,768 Other Assets, Less Liabilities (0.0)% (37,657) Net Assets 100.0% $342,243,876 (a) (h) (v) Non-income producing security. An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund s investments in affiliated issuers and in unaffiliated issuers were $3,825,768 and $338,455,765, 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: ADR American Depositary Receipt PLC Public Limited Company 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 7/31/18 (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 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, and other market data. 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. 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 July 31, 2018 in valuing the fund s assets or liabilities: Financial Instruments Level 1 Level 2 Level 3 Total Equity Securities $338,455,765 $ $ $338,455,765 Mutual Funds 3,825,768 3,825,768 Total $342,281,533 $ $ $342,281,533 Of the level 1 investments presented above, equity investments amounting to $18,526,565 would have been considered level 2 investments at the beginning of the period. The primary reason for changes in the classifications between levels 1 and 2 occurs when foreign equity securities are fair valued using other observable market-based inputs in place of the closing exchange price due to events occurring after the close of the exchange or market on which the investment is principally traded. The fund s foreign equity securities may often be valued using other observable market-based inputs. The fund s policy is to recognize transfers between the levels as of the end of the period. 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 3,515,847 41,048,588 (40,738,284) 3,826,151 Affiliated Issuers Realized Gain (Loss) Change in Unrealized Appreciation/ Depreciation Capital Gain Distributions Dividend Income MFS Institutional Money Market Portfolio $(281) $(62) $ $45,029 $3,825,768 (3) Issuer Country Weightings Issuer country weighting percentages of portfolio holdings based on net assets, as of July 31, 2018, are as follows: United States 59.0% United Kingdom 8.6% Switzerland 5.8% France 5.5% Germany 4.4% Japan 2.8% China 2.7% Taiwan 2.4% India 1.8% Other Countries 7.0% Ending Value 6