Quarterly Report May 31, 2018 MFS. Low Volatility Equity Fund

Transcription

1 Quarterly Report May 31, 2018 MFS Low Volatility Equity Fund

2 PORTFOLIO OF INVESTMENTS 5/31/18 (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 99.2% Aerospace 6.4% Boeing Co. 1,879 $ 661,709 General Dynamics Corp. 2, ,010 Honeywell International, Inc. 9,387 1,388,431 Lockheed Martin Corp. 3,755 1,181,098 Northrop Grumman Corp. 4,034 1,320,126 United Technologies Corp. 4, ,907 $ 5,727,281 Alcoholic Beverages 1.5% Constellation Brands, Inc., A 6,008 $ 1,340,265 Brokerage & Asset Managers 1.5% CME Group, Inc. 8,259 $ 1,345,391 Business Services 3.1% Amdocs Ltd. 40,855 $ 2,756,078 Cable TV 0.6% Comcast Corp., A 16,342 $ 509,544 Computer Software 0.8% Blackbaud, Inc. 4,016 $ 391,440 Oracle Corp. 7, ,721 $ 725,161 Consumer Products 1.1% Procter & Gamble Co. 13,377 $ 978,795 Consumer Services 2.9% Bookings Holdings, Inc. (a) 422 $ 889,964 Bright Horizons Family Solutions, Inc. (a) 17,341 1,754,909 $ 2,644,873 Containers 0.3% Berry Global Group, Inc. (a) 6,517 $ 314,706 Electronics 1.5% Texas Instruments, Inc. 12,115 $ 1,355,790 Energy - Independent 2.3% Marathon Petroleum Corp. 11,440 $ 904,104 Occidental Petroleum Corp. 8, ,728 Phillips 66 3, ,323 $ 2,082,155 Energy - Integrated 0.7% Exxon Mobil Corp. 8,057 $ 654,551 Food & Beverages 6.1% General Mills, Inc. 21,723 $ 918,666 Mondelez International, Inc. 14, ,314 PepsiCo, Inc. 24,956 2,501,839 Pinnacle Foods, Inc. 8, ,346 Tyson Foods, Inc., A 13, ,758 $ 5,422,923 1

3 Portfolio of Investments (unaudited) continued Common Stocks continued Gaming & Lodging 1.4% Carnival Corp. 15,251 $ 949,832 Marriott International, Inc., A 2, ,853 $ 1,300,685 General Merchandise 1.6% Wal-Mart Stores, Inc. 17,174 $ 1,417,542 Health Maintenance Organizations 4.1% Cigna Corp. 6,494 $ 1,099,888 Humana Inc. 4,610 1,341,418 UnitedHealth Group, Inc. 5,239 1,265,271 $ 3,706,577 Insurance 9.1% Allstate Corp. 3,900 $ 364,572 Aon PLC 8,643 1,208,896 Chubb Ltd. 8,005 1,046,173 Everest Re Group Ltd. 6,034 1,359,400 Hartford Financial Services Group, Inc. 18, ,999 Loews Corp. 23,806 1,163,399 MetLife, Inc. 12, ,927 Progressive Corp. 8, ,771 Prudential Financial, Inc. 3, ,060 Travelers Cos., Inc. 4, ,731 $ 8,160,928 Internet 5.2% Alphabet, Inc., A (a) 1,973 $ 2,170,300 Alphabet, Inc., C (a) ,925 Facebook, Inc., A (a) 10,178 1,951,937 $ 4,619,162 Major Banks 0.6% PNC Financial Services Group, Inc. 3,938 $ 564,749 Medical Equipment 5.2% Danaher Corp. 11,708 $ 1,162,370 Medtronic PLC 15,039 1,298,167 Steris PLC 12,136 1,260,202 Stryker Corp. 3, ,352 Varian Medical Systems, Inc. (a) 3, ,100 $ 4,657,191 Network & Telecom 2.7% Cisco Systems, Inc. 44,347 $ 1,894,060 Motorola Solutions, Inc. 4, ,798 $ 2,386,858 Other Banks & Diversified Financials 3.4% M&T Bank Corp. 4,513 $ 776,597 Mastercard, Inc., A 5,470 1,039,956 U.S. Bancorp 9, ,752 Visa, Inc., A 5, ,601 $ 3,060,906 Pharmaceuticals 5.9% Eli Lilly & Co. 23,699 $ 2,015,363 Johnson & Johnson 17,442 2,086,412 Pfizer, Inc. 20, ,786 2

4 Portfolio of Investments (unaudited) continued Common Stocks continued Pharmaceuticals continued Zoetis, Inc. 5,699 $ 477,006 $ 5,298,567 Pollution Control 3.1% Waste Connections, Inc. 36,281 $ 2,789,283 Printing & Publishing 0.6% Moody s Corp. 2,935 $ 500,623 Real Estate 7.1% AvalonBay Communities, Inc., REIT 6,424 $ 1,063,429 Extra Space Storage, Inc., REIT 10, ,024 Mid-America Apartment Communities, Inc., REIT 6, ,398 Public Storage, Inc., REIT 4, ,716 Starwood Property Trust, Inc., REIT 46,127 1,001,417 Store Capital Corp., REIT 23, ,318 Sun Communities, Inc., REIT 11,115 1,074,598 $ 6,329,900 Restaurants 3.7% Aramark 12,578 $ 488,278 McDonald s Corp. 10,767 1,722,828 Starbucks Corp. 19,489 1,104,441 $ 3,315,547 Specialty Chemicals 1.9% Ecolab, Inc. 8,945 $ 1,275,647 Praxair, Inc. 2, ,933 $ 1,694,580 Specialty Stores 3.0% Costco Wholesale Corp. 10,263 $ 2,034,537 Home Depot, Inc. 3, ,984 $ 2,700,521 Telecommunications - Wireless 0.5% SBA Communications Corp., REIT (a) 2,714 $ 429,002 Telephone Services 0.8% Verizon Communications, Inc. 14,448 $ 688,736 Tobacco 2.3% Altria Group, Inc. 25,294 $ 1,409,887 Philip Morris International, Inc. 7, ,639 $ 2,039,526 Utilities - Electric Power 8.2% American Electric Power Co., Inc. 6,934 $ 471,165 DTE Energy Co. 9, ,476 Duke Energy Corp. 13,907 1,073,064 Exelon Corp. 11, ,280 Great Plains Energy, Inc. 16, ,266 NextEra Energy, Inc. 9,224 1,529,431 WEC Energy Group, Inc. 15, ,740 Xcel Energy, Inc. 27,902 1,270,099 $ 7,325,521 Total Common Stocks $88,843,917 3

5 Portfolio of Investments (unaudited) continued Investment Companies (h) 0.6% Money Market Funds 0.6% MFS Institutional Money Market Portfolio, 1.82% (v) 558,735 $ 558,679 Other Assets, Less Liabilities 0.2% 203,290 Net Assets 100.0% $89,605,886 (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 $558,679 and $88,843,917, 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 5/31/18 (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 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 May 31, 2018 in valuing the fund s assets or liabilities: Financial Instruments Level 1 Level 2 Level 3 Total Equity Securities $88,843,917 $ $ $88,843,917 Mutual Funds 558, ,679 Total $89,402,596 $ $ $89,402,596 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 11,232,495 (11,305,699) 558,735 Affiliated Issuers Realized Gain (Loss) Change in Unrealized Appreciation/ Depreciation Capital Gain Distributions Dividend Income MFS Institutional Money Market Portfolio $(115) $1 $ $4,669 $558,679 Ending Value 6