MFS NEW DISCOVERY FUND

Transcription

1 QUARTERLY REPORT November 30, 2017 MFS NEW DISCOVERY 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 Shares/Par Value ($) Common Stocks 96.9% Aerospace 2.4% Curtiss-Wright Corp. 103,731 $ 12,883,390 HEICO Corp. 65,338 5,903,942 Leidos Holdings, Inc. 167,827 10,668,762 $ 29,456,094 Automotive 2.3% Kar Auction Services, Inc. 337,961 $ 17,023,096 WABCO Holdings, Inc. (a) 75,699 11,313,215 $ 28,336,311 Biotechnology 3.4% ACADIA Pharmaceuticals, Inc. (a) 110,073 $ 3,329,708 Alder Biopharmaceuticals, Inc. (a) 185,099 2,036,089 Amicus Therapeutics, Inc. (a) 417,018 5,804,891 Bio-Techne Corp. 53,167 7,164,253 Exact Sciences Corp. (a) 78,012 4,640,154 MiMedx Group, Inc. (a)(l) 373,838 4,325,306 Neurocrine Biosciences, Inc. (a) 65,764 4,727,774 Spark Therapeutics, Inc. (a) 70,353 5,151,950 Tesaro, Inc. (a) 28,868 2,442,233 VTV Therapeutics, Inc. (a) 275,016 1,152,317 $ 40,774,675 Brokerage & Asset Managers 1.0% Hamilton Lane, Inc., A 216,832 $ 7,474,199 TMX Group Ltd. 91,403 4,923,853 $ 12,398,052 Business Services 5.5% CarGurus, Inc. (a)(l) 118,373 $ 3,489,636 CoStar Group, Inc. (a) 16,275 4,963,387 Global Payments, Inc. 103,177 10,375,479 WNS (Holdings) Ltd., ADR (a) 282,195 11,606,680 Yext, Inc. (a)(l) 1,167,166 16,702,146 Zendesk, Inc. (a) 575,135 19,330,287 $ 66,467,615 Chemicals 2.0% FMC Corp. 73,794 $ 6,966,154 Ingevity Corp. (a) 219,870 17,499,453 $ 24,465,607 Computer Software 5.8% 2U, Inc. (a) 94,248 $ 6,041,297 Cadence Design Systems, Inc. (a) 202,985 8,913,071 MuleSoft, Inc., A (a) 303,362 6,962,158 Okta, Inc. (a) 115,671 3,378,750 Paylocity Holding Corp. (a) 151,002 6,967,232 RingCentral, Inc. (a) 269,555 12,709,518 SendGrid, Inc. (a) 270,754 5,675,004 Twilio, Inc., A (a)(l) 396,310 10,565,625 Ultimate Software Group, Inc. (a) 45,822 9,669,817 $ 70,882,472 1

3 Portfolio of Investments (unaudited) continued Issuer Shares/Par Value ($) Common Stocks continued Computer Software - Systems 11.7% Five9, Inc. (a) 487,520 $ 11,949,115 ForeScout Tech, Inc. (a) 344,263 8,303,624 HubSpot, Inc. (a) 84,254 6,820,361 Interxion Holding N.V. (a) 181,852 10,498,316 Kinaxis, Inc. (a) 78,465 4,451,915 New Relic, Inc. (a) 207,766 11,693,071 NICE Systems Ltd., ADR 231,268 20,238,263 Proofpoint, Inc. (a) 84,521 7,611,116 Q2 Holdings, Inc. (a) 201,505 8,432,984 Rapid7, Inc. (a) 566,162 10,706,123 RealPage, Inc (a) 205,247 9,307,951 SS&C Technologies Holdings, Inc. 496,944 20,518,818 Switch, Inc. (a) 632,238 10,836,559 $ 141,368,216 Construction 5.5% Foundation Building Materials, Inc. (a) 661,147 $ 10,056,046 GMS, Inc. (a) 382,805 14,282,455 Lennox International, Inc. 28,772 6,034,639 Siteone Landscape Supply, Inc. (a) 150,480 11,252,894 Summit Materials, Inc., A (a) 365,138 11,231,645 Techtronic Industries Co. Ltd. 808,500 4,683,358 Trex Co., Inc. (a) 75,523 8,893,589 $ 66,434,626 Consumer Products 0.9% E.L.F. Beauty, Inc. (a)(l) 468,130 $ 10,373,761 Consumer Services 2.6% 51job, Inc., ADR (a) 113,549 $ 6,529,067 Bright Horizons Family Solutions, Inc. (a) 280,001 24,906,089 $ 31,435,156 Containers 1.7% Berry Global Group, Inc. (a) 346,872 $ 20,732,539 Electrical Equipment 1.8% Littlefuse, Inc. 66,713 $ 13,536,068 WESCO International, Inc. (a) 132,753 8,701,959 $ 22,238,027 Electronics 3.4% Inphi Corp. (a) 269,287 $ 11,059,617 MACOM Technology Solutions Holdings, Inc. (a) 160,718 5,237,800 Monolithic Power Systems, Inc. 97,391 11,526,225 Silicon Laboratories, Inc. (a) 150,465 13,707,361 $ 41,531,003 Entertainment 1.2% Live Nation, Inc. (a) 319,880 $ 14,516,154 Food & Beverages 3.8% Blue Buffalo Pet Products, Inc. (a) 393,421 $ 12,081,959 Cal-Maine Foods, Inc. (a)(l) 176,193 8,765,602 Flex Pharma, Inc. (a)(l) 222, ,255 Greencore Group PLC 2,562,754 7,281,792 Snyders-Lance, Inc. 446,771 17,281,102 $ 46,346,710 2

4 Portfolio of Investments (unaudited) continued Issuer Shares/Par Value ($) Common Stocks continued General Merchandise 0.4% Five Below, Inc. (a) 80,884 $ 4,998,631 Internet 2.6% GrubHub, Inc. (a) 209,429 $ 14,149,023 LogMeIn, Inc. 147,647 17,569,993 $ 31,719,016 Leisure & Toys 0.4% Funko, Inc., A (a) 613,924 $ 5,451,645 Machinery & Tools 2.2% Gardner Denver Holdings, Inc. (a) 276,447 $ 8,959,647 Ritchie Bros. Auctioneers, Inc. (l) 329,003 8,718,580 SPX FLOW, Inc. (a) 206,510 9,245,453 $ 26,923,680 Medical & Health Technology & Services 5.0% Capital Senior Living Corp. (a) 328,086 $ 5,334,678 Healthcare Services Group, Inc. 216,516 11,243,676 ICON PLC (a) 130,370 15,228,520 INC Research Holdings, Inc., A (a) 288,757 11,059,393 OptiNose, Inc. (a) 355,806 6,792,337 Teladoc, Inc. (a)(l) 289,813 10,752,062 $ 60,410,666 Medical Equipment 8.6% DexCom, Inc. (a) 227,324 $ 13,282,541 irhythm Technologies, Inc. (a) 126,018 6,993,999 Merit Medical Systems, Inc. (a) 310,230 13,479,494 Nevro Corp. (a) 127,164 9,514,410 NuVasive, Inc. (a) 160,714 9,271,591 NxStage Medical, Inc. (a) 228,576 5,872,117 Obalon Therapeutics, Inc. (a)(l) 287,124 2,363,031 PerkinElmer, Inc. 197,611 14,559,978 Steris PLC 165,031 14,846,189 Tactile Systems Technology, Inc. (a) 200,558 5,982,645 West Pharmaceutical Services, Inc. 87,645 8,758,365 $ 104,924,360 Oil Services 1.0% Patterson-UTI Energy, Inc. 273,042 $ 5,894,977 U.S. Silica Holdings, Inc. 181,570 6,022,677 $ 11,917,654 Other Banks & Diversified Financials 4.1% Bank of the Ozarks, Inc. 244,041 $ 11,767,657 Pinnacle Financial Partners, Inc. 157,308 10,799,194 Preferred Bank 118,586 7,423,484 Texas Capital Bancshares, Inc. (a) 104,807 9,469,313 Wintrust Financial Corp. 117,151 9,823,111 $ 49,282,759 Pharmaceuticals 1.3% Aratana Therapeutics, Inc. (a)(l) 608,472 $ 3,559,561 Collegium Pharmaceutical, Inc. (a)(l) 273,332 4,717,710 PetIQ, Inc. (a) 316,464 7,019,172 $ 15,296,443 3

5 Portfolio of Investments (unaudited) continued Issuer Shares/Par Value ($) Common Stocks continued Pollution Control 1.6% Clean Harbors, Inc. (a) 157,662 $ 8,491,675 Evoqua Water Technologies LLC (a) 480,593 10,400,033 $ 18,891,708 Railroad & Shipping 0.3% StealthGas, Inc. (a) 976,797 $ 3,877,884 Real Estate 2.2% Big Yellow Group PLC, REIT 458,482 $ 5,168,127 Life Storage, Inc., REIT 106,378 9,553,808 STAG Industrial, Inc., REIT 430,481 12,182,612 $ 26,904,547 Restaurants 5.5% Dave & Buster s, Inc. (a) 165,852 $ 8,795,132 Domino s Pizza Group PLC 1,328,843 5,847,854 Performance Food Group Co. (a) 577,879 17,134,112 U.S. Foods Holding Corp. (a) 662,132 19,281,284 Wingstop, Inc. 152,320 5,969,421 Zoe s Kitchen, Inc. (a)(l) 575,333 9,193,821 $ 66,221,624 Special Products & Services 1.0% Boyd Group Income Fund, IEU 155,140 $ 11,871,039 Specialty Chemicals 4.5% Axalta Coating Systems Ltd. (a) 205,216 $ 6,497,139 Ferro Corp. (a) 462,530 11,725,135 Ferroglobe PLC 366,715 5,984,789 Nexeo Solutions, Inc. (a) 522,839 4,146,113 RPM International, Inc. 242,928 12,867,896 Univar, Inc. (a) 455,978 13,433,112 $ 54,654,184 Specialty Stores 1.2% Michaels Co., Inc. (a) 307,650 $ 6,645,240 National Vision Holdings, Inc. (a) 110,516 3,601,716 Urban Outfitters, Inc. (a) 136,563 4,249,841 $ 14,496,797 Total Common Stocks $1,175,599,655 Investment Companies (h) 3.1% Money Market Funds 3.1% MFS Institutional Money Market Portfolio, 1.19% (v) 37,486,800 $ 37,483,052 Collateral for Securities Loaned 2.2% State Street Navigator Securities Lending Government Money Market Portfolio, 1.04% (j) 26,202,960 $ 26,202,960 Other Assets, Less Liabilities (2.2)% (26,189,047) Net Assets 100.0% $1,213,096,620 4

6 Portfolio of Investments (unaudited) continued (a) (h) (j) (l) (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 $37,483,052 and $1,201,802,615, respectively. The rate quoted is the annualized seven-day yield of the fund at period end. A portion of this security is on loan. 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 IEU International Equity Unit 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. 5

7 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 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, 2017 in valuing the fund s assets or liabilities: Financial Instruments Level 1 Level 2 Level 3 Total Equity Securities: United States $1,069,902,928 $ $ $1,069,902,928 Canada 29,965,386 29,965,386 Israel 20,238,263 20,238,263 United Kingdom 18,297,773 18,297,773 India 11,606,680 11,606,680 Netherlands 10,498,316 10,498,316 China 6,529,067 6,529,067 Hong Kong 4,683,358 4,683,358 Greece 3,877,884 3,877,884 Mutual Funds 63,686,012 63,686,012 Total $1,234,602,309 $4,683,358 $ $1,239,285,667 For further information regarding security characteristics, see the Portfolio of Investments. 6

8 Supplemental Information (unaudited) continued Of the level 2 investments presented above, equity investments amounting to $4,683,358 would have been considered level 1 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. (2) Securities Lending Collateral At November 30, 2017, the value of securities loaned was $33,590,375. These loans were collateralized by cash of $26,202,960 and U.S. Treasury Obligations of $7,422,865. (3) 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 Shares/Par Amount Acquisitions Shares/Par Amount Dispositions Shares/Par Amount Ending Shares/Par Amount MFS Institutional Money Market Portfolio 23,454, ,826,737 (88,794,462) 37,486,800 Affiliated Issuers Realized Gain (Loss) Change in Unrealized Appreciation (Depreciation) Capital Gain Distributions Dividend Income MFS Institutional Money Market Portfolio $(381) $(3,220) $ $90,637 $37,483,052 Ending Value 7