QUARTERLY REPORT November 30, 2016 MFS CORE EQUITY FUND

Transcription

1 QUARTERLY REPORT November 30, 2016 MFS CORE EQUITY FUND

2 PORTFOLIO OF INVESTMENTS 11/30/16 (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 % Aerospace - 3.9% Honeywell International, Inc. 174,504 $ 19,882,983 L-3 Communications Holdings, Inc. 28,734 4,533,363 Leidos Holdings, Inc. 102,634 5,254,861 Northrop Grumman Corp. 64,532 16,110,414 Orbital ATK, Inc. 45,278 3,863,572 Textron, Inc. 58,783 2,705,781 United Technologies Corp. 63,816 6,874,260 $ 59,225,234 Alcoholic Beverages - 0.5% Constellation Brands, Inc., A 40,885 $ 6,179,359 Molson Coors Brewing Co. 13,880 1,360,656 $ 7,540,015 Apparel Manufacturers - 1.6% Hanesbrands, Inc. 301,648 $ 7,007,283 NIKE, Inc., B 234,359 11,734,355 PVH Corp. 52,566 5,568,842 $ 24,310,480 Automotive - 0.9% Delphi Automotive PLC 98,723 $ 6,318,272 Harman International Industries, Inc. 66,471 7,269,933 $ 13,588,205 Biotechnology - 1.5% Alexion Pharmaceuticals, Inc. (a) 11,752 $ 1,440,678 Celgene Corp. (a) 178,875 21,198,476 $ 22,639,154 Broadcasting - 2.2% Interpublic Group of Companies, Inc. 282,643 $ 6,803,217 Time Warner, Inc. 175,911 16,152,148 Twenty-First Century Fox, Inc. 363,318 10,212,869 $ 33,168,234 Brokerage & Asset Managers - 1.3% Blackstone Group LP 339,452 $ 8,737,494 Charles Schwab Corp. 130,403 5,041,380 NASDAQ, Inc. 95,509 6,121,172 $ 19,900,046 Business Services - 2.5% Amdocs Ltd. 60,472 $ 3,566,034 Bright Horizons Family Solutions, Inc. (a) 33,212 2,285,650 Cognizant Technology Solutions Corp., A (a) 148,937 8,203,450 Fidelity National Information Services, Inc. 109,999 8,490,823 Gartner, Inc. (a) 39,718 4,083,805 Global Payments, Inc. 84,896 5,819,621 Total System Services, Inc. 45,885 2,258,460 Travelport Worldwide Ltd. 217,885 3,050,390 $ 37,758,233 1

3 Common Stocks - continued Cable TV - 1.1% Charter Communications, Inc., A (a) 59,751 $ 16,450,048 Chemicals - 2.2% Agrium, Inc. 44,159 $ 4,450,746 E.I. du Pont de Nemours & Co. 71,397 5,255,533 FMC Corp. 77,723 4,361,815 Ingevity Corp. (a) 80,530 4,217,356 Monsanto Co. 72,083 7,403,645 PPG Industries, Inc. 83,397 8,000,274 $ 33,689,369 Computer Software - 3.2% Adobe Systems, Inc. (a) 135,995 $ 13,981,646 Microsoft Corp. 196,507 11,841,512 Sabre Corp. 123,046 3,180,739 Salesforce.com, Inc. (a) 287,045 20,667,240 $ 49,671,137 Computer Software - Systems - 2.2% Apple, Inc. 145,897 $ 16,124,536 Hewlett Packard Enterprise 241,390 5,745,082 NCR Corp. (a) 99,750 3,865,313 SS&C Technologies Holdings, Inc. 250,353 7,513,094 Versum Materials, Inc. (a) 10, ,508 $ 33,494,533 Construction - 0.8% Sherwin-Williams Co. 34,011 $ 9,137,735 Toll Brothers, Inc. (a) 97,027 2,877,821 $ 12,015,556 Consumer Products - 1.8% Coty, Inc., A 98,959 $ 1,851,523 Estee Lauder Cos., Inc., A 60,907 4,732,474 Newell Brands, Inc. 80,058 3,763,527 Procter & Gamble Co. 209,201 17,250,714 $ 27,598,238 Consumer Services - 1.4% Nord Anglia Education, Inc. (a)(l) 213,763 $ 5,130,312 Priceline Group, Inc. (a) 7,508 11,289,629 ServiceMaster Global Holdings, Inc. (a) 129,751 4,959,083 $ 21,379,024 Containers - 0.5% Berry Plastics Group, Inc. (a) 98,829 $ 4,918,719 Graphic Packaging Holding Co. 244,186 3,069,418 $ 7,988,137 Electrical Equipment - 1.2% AMETEK, Inc. 192,887 $ 9,133,199 Johnson Controls International PLC 142,093 6,391,343 W.W. Grainger, Inc. 13,551 3,124,454 $ 18,648,996 2

4 Common Stocks - continued Electronics - 5.1% Broadcom Corp. 182,352 $ 31,089,192 KLA-Tencor Corp. 53,086 4,238,386 Mellanox Technologies Ltd. (a) 176,766 7,326,951 NVIDIA Corp. 105,432 9,720,830 Texas Instruments, Inc. 353,322 26,121,095 $ 78,496,454 Energy - Independent - 2.7% Concho Resources, Inc. (a) 34,156 $ 4,884,991 Energen Corp. (a) 20,550 1,275,539 EOG Resources, Inc. 71,281 7,307,728 EQT Corp. 16,039 1,124,013 Hess Corp. 149,962 8,391,874 Noble Energy, Inc. 60,150 2,295,324 Oasis Petroleum LLC (a) 71,522 1,070,684 PDC Energy, Inc. (a) 16,877 1,256,493 Phillips 66 82,851 6,883,261 Pioneer Natural Resources Co. 34,167 6,527,264 $ 41,017,171 Energy - Integrated - 2.3% Chevron Corp. (s) 314,997 $ 35,141,065 Engineering - Construction - 0.1% Team, Inc. (a) 42,639 $ 1,462,518 Food & Beverages - 3.2% Archer Daniels Midland Co. 123,794 $ 5,351,615 Mead Johnson Nutrition Co., A 66,827 4,817,558 Mondelez International, Inc. 222,250 9,165,590 Monster Worldwide, Inc. (a) 149,265 6,679,609 PepsiCo, Inc. 155,295 15,545,030 Snyders-Lance, Inc. 41,177 1,534,255 TreeHouse Foods, Inc. (a) 96,345 6,678,635 $ 49,772,292 Food & Drug Stores - 0.9% CVS Health Corp. 172,111 $ 13,233,615 Gaming & Lodging - 0.3% Marriott International, Inc., A 67,785 $ 5,340,102 General Merchandise - 1.7% Costco Wholesale Corp. 81,287 $ 12,201,992 Dollar Tree, Inc. (a) 90,135 7,946,302 Five Below, Inc. (a) 163,283 6,426,819 $ 26,575,113 Health Maintenance Organizations - 1.4% Cigna Corp. 43,255 $ 5,828,179 UnitedHealth Group, Inc. 102,280 16,192,970 $ 22,021,149 Insurance - 3.3% American International Group, Inc. 136,079 $ 8,617,883 Aon PLC 238,969 27,266,363 3

5 Common Stocks - continued Insurance - continued Chubb Ltd. 116,502 $ 14,912,256 $ 50,796,502 Internet - 5.0% Alphabet, Inc., A (a)(s) 43,045 $ 33,397,755 Alphabet, Inc., C (a) 14,399 10,915,018 Facebook, Inc., A (a) 200,636 23,759,315 LogMeIn, Inc. 77,990 7,865,292 $ 75,937,380 Machinery & Tools - 2.5% Illinois Tool Works, Inc. 71,635 $ 8,967,269 IPG Photonics Corp. (a) 65,348 6,268,180 ITT, Inc. 100,996 4,077,209 Roper Technologies, Inc. 70,049 12,686,574 SPX FLOW, Inc. (a) 184,843 5,792,980 $ 37,792,212 Major Banks - 3.1% Bank of America Corp. 725,911 $ 15,331,240 Goldman Sachs Group, Inc. 79,798 17,498,903 PNC Financial Services Group, Inc. 127,104 14,050,076 $ 46,880,219 Medical & Health Technology & Services - 1.3% athenahealth, Inc. (a) 15,496 $ 1,465,922 Healthcare Services Group, Inc. 32,655 1,271,912 LifePoint Hospitals, Inc. (a) 51,656 2,838,497 McKesson Corp. 52,449 7,542,691 MEDNAX, Inc. (a) 53,145 3,479,403 VCA, Inc. (a) 54,437 3,407,756 $ 20,006,181 Medical Equipment - 4.2% Abbott Laboratories 263,783 $ 10,042,219 CONMED Corp. 55,269 2,408,623 Danaher Corp. 68,097 5,323,142 DexCom, Inc. (a) 23,226 1,516,426 Medtronic PLC 211,958 15,475,054 NxStage Medical, Inc. (a) 55,567 1,373,616 Obalon Therapeutics, Inc. (a)(l) 63, ,458 PerkinElmer, Inc. 82,985 4,208,999 Steris PLC 53,864 3,534,017 Stryker Corp. 101,582 11,545,810 Zimmer Biomet Holdings, Inc. 76,693 7,811,949 $ 64,019,313 Metals & Mining - 0.3% First Quantum Minerals Ltd. 134,368 $ 1,534,434 Lundin Mining Corp. (a) 566,931 2,781,267 $ 4,315,701 Natural Gas - Distribution - 0.3% New Jersey Resources Corp. 102,840 $ 3,542,838 Sempra Energy 7, ,009 $ 4,336,847 4

6 Common Stocks - continued Natural Gas - Pipeline - 0.7% Cheniere Energy, Inc. (a) 189,760 $ 7,753,594 Enterprise Products Partners LP 87,687 2,273,724 $ 10,027,318 Network & Telecom - 1.2% Cisco Systems, Inc. 448,931 $ 13,387,122 Ixia (a) 366,505 5,039,444 $ 18,426,566 Oil Services - 1.4% Forum Energy Technologies, Inc. (a) 101,141 $ 2,199,817 Halliburton Co. 169,410 8,993,977 Oil States International, Inc. (a) 36,716 1,316,269 Schlumberger Ltd. 89,053 7,484,905 Superior Energy Services, Inc. 72,807 1,255,193 $ 21,250,161 Other Banks & Diversified Financials - 8.1% Bank of The Ozarks, Inc. 126,292 $ 6,127,688 Citigroup, Inc. (s) 682,537 38,488,261 Discover Financial Services 235,369 15,950,957 EuroDekania Ltd. 580,280 94,558 First Republic Bank 55,256 4,525,466 Signature Bank (a) 29,635 4,442,583 Texas Capital Bancshares, Inc. (a) 63,077 4,588,852 U.S. Bancorp 430,872 21,379,869 Visa, Inc., A 222,926 17,236,638 Wintrust Financial Corp. 108,888 7,169,186 Zions Bancorporation 80,280 3,194,341 $ 123,198,399 Pharmaceuticals - 4.7% Allergan PLC 82,656 $ 16,060,061 Eli Lilly & Co. 219,570 14,737,538 Merck & Co., Inc. 392,807 24,035,860 Zoetis, Inc. 327,243 16,486,502 $ 71,319,961 Pollution Control - 0.5% Clean Harbors, Inc. (a) 87,060 $ 4,601,121 Waste Connections, Inc. 49,694 3,798,609 $ 8,399,730 Railroad & Shipping - 1.3% Canadian Pacific Railway Ltd. 52,071 $ 7,979,881 Union Pacific Corp. 115,676 11,721,449 $ 19,701,330 Real Estate - 3.2% Gramercy Property Trust, Inc., REIT 822,686 $ 7,190,276 Life Storage, Inc., REIT 68,648 5,576,277 Medical Properties Trust, Inc., REIT 1,297,814 15,469,943 Store Capital Corp., REIT 235,347 5,817,778 Sun Communities, Inc., REIT 61,226 4,418,680 Tanger Factory Outlet Centers, Inc., REIT 203,245 7,005,855 Washington Prime Group, Inc., REIT 362,398 3,631,228 $ 49,110,037 5

7 Common Stocks - continued Restaurants - 1.7% Aramark 279,349 $ 9,612,399 Starbucks Corp. 242,798 14,075,000 YUM! Brands, Inc. 48,067 3,046,967 $ 26,734,366 Special Products & Services - 0.1% Hostess Brands, Inc. (a) 122,558 $ 1,587,126 Specialty Chemicals - 0.4% A. Schulman, Inc. 93,386 $ 3,109,754 Air Products & Chemicals, Inc. 20,160 2,912,314 $ 6,022,068 Specialty Stores - 2.6% Amazon.com, Inc. (a) 17,888 $ 13,426,196 Express, Inc. (a) 439,915 5,877,264 Lululemon Athletica, Inc. (a) 43,374 2,471,884 Ross Stores, Inc. 88,748 5,998,477 Tractor Supply Co. 77,397 5,810,193 Urban Outfitters, Inc. (a) 202,766 6,407,406 $ 39,991,420 Telecommunications - Wireless - 1.5% American Tower Corp., REIT 57,869 $ 5,918,263 SBA Communications Corp. (a) 172,938 17,113,944 $ 23,032,207 Telephone Services - 0.9% Verizon Communications, Inc. 288,540 $ 14,398,146 Tobacco - 1.1% Philip Morris International, Inc. 110,774 $ 9,779,129 Reynolds American, Inc. 122,499 6,627,196 $ 16,406,325 Trucking - 0.2% Swift Transportation Co. (a) 149,056 $ 3,721,928 Utilities - Electric Power - 2.6% Alliant Energy Corp. 83,751 $ 3,008,336 American Electric Power Co., Inc. 46,271 2,732,303 Calpine Corp. (a) 199,815 2,227,937 CMS Energy Corp. 93,809 3,772,998 Dominion Resources, Inc. 78,849 5,778,843 Exelon Corp. 149,918 4,873,834 FirstEnergy Corp. 48,350 1,512,872 NextEra Energy, Inc. 52,216 5,964,634 PNM Resources, Inc. 98,033 3,097,843 Xcel Energy, Inc. 169,406 6,608,528 $ 39,578,128 Total Common Stocks $1,509,113,689 Convertible Preferred Stocks - 0.4% Telephone Services - 0.4% Frontier Communications Corp., % 75,049 $ 5,765,264 6

8 Money Market Funds - 0.8% MFS Institutional Money Market Portfolio, 0.46% (v) 12,013,749 $ 12,013,749 Collateral for Securities Loaned - 0.0% State Street Navigator Securities Lending U.S. Government Fund, 0.26% (j) 304,217 $ 304,217 Total Investments $1,527,196,919 Securities Sold Short - (0.2)% Telecommunications - Wireless - (0.2)% Crown Castle International Corp., REIT (44,300) $ (3,697,278) Other Assets, Less Liabilities - 0.3% 5,310,143 Net Assets 100.0% $1,528,809,784 (a) (j) (l) (s) (v) Non-income producing security. The rate quoted is the annualized seven-day yield of the fund at period end. A portion of this security is on loan. Security or a portion of the security was pledged to cover collateral requirements for securities sold short and certain derivative transactions. Underlying affiliated fund 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. At November 30, 2016, the fund had cash collateral of $1,053,952 and other liquid securities with an aggregate value of $5,375,810 to cover commitments for securities sold short. 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. 7

9 Supplemental Information 11/30/16 (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. Equity securities held short, for which there were no sales reported for that day, are generally valued at the last quoted daily ask 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. 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 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 November 30, 2016 in valuing the fund s assets or liabilities: Investments at Value Level 1 Level 2 Level 3 Total Equity Securities: United States $1,489,109,146 $ $ $1,489,109,146 Canada 20,544,937 20,544,937 Hong Kong 5,130,312 5,130,312 Cayman Islands 94,558 94,558 Mutual Funds 12,317,966 12,317,966 Total Investments $1,527,102,361 $ $94,558 $1,527,196,919 Short Sales $(3,697,278) $ $ $(3,697,278) For further information regarding security characteristics, see the Portfolio of Investments. 8

10 Supplemental Information (unaudited) continued The following is a reconciliation of level 3 assets for which significant unobservable inputs were used to determine fair value. The fund s policy is to recognize transfers between the levels as of the end of the period. The table presents the activity of level 3 securities held at the beginning and the end of the period. Equity Securities Balance as of 8/31/16 $106,800 Change in unrealized appreciation (depreciation) (12,242) Balance as of 11/30/16 $94,558 The net change in unrealized appreciation (depreciation) from investments still held as level 3 at November 30, 2016 is $(12,242). At November 30, 2016, the fund held one level 3 security. (2) Portfolio Securities The cost and unrealized appreciation and depreciation in the value of the investments owned by the fund, as computed on a federal income tax basis, are as follows: Aggregate cost $1,281,216,059 Gross unrealized appreciation 277,206,149 Gross unrealized depreciation (31,225,289) Net unrealized appreciation (depreciation) $245,980,860 The aggregate cost above includes prior fiscal year end tax adjustments, if applicable. (3) Transactions in Underlying Affiliated Funds 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 an affiliated issuer: Underlying Affiliated Fund Beginning Shares/Par Amount Acquisitions Shares/Par Amount Dispositions Shares/Par Amount Ending Shares/Par Amount MFS Institutional Money Market Portfolio 10,178,267 72,931,765 (71,096,283) 12,013,749 Underlying Affiliated Fund Realized Gain (Loss) Capital Gain Distributions Dividend Income Ending Value MFS Institutional Money Market Portfolio $(375) $ $12,044 $12,013,749 9