MFS EMERGING MARKETS EQUITY FUND

Transcription

1 QUARTERLY REPORT August 31, 2017 MFS EMERGING MARKETS EQUITY FUND

2 PORTFOLIO OF INVESTMENTS 8/31/17 (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 97.8% Airlines 0.5% Grupo Aeroportuario del Sureste S.A. de C.V., ADR 27,454 $ 5,591,282 Alcoholic Beverages 2.8% AmBev S.A., ADR 2,961,245 $ 18,537,394 Becle S.A.B. de C.V. (a) 585,900 1,025,368 China Resources Enterprise Ltd. 5,404,000 13,562,222 $ 33,124,984 Apparel Manufacturers 0.8% Stella International Holdings 5,157,000 $ 9,133,440 Automotive 1.3% Kia Motors Corp. 216,073 $ 6,793,001 Mahindra & Mahindra Ltd. 429,687 9,039,214 $ 15,832,215 Business Services 1.8% Cognizant Technology Solutions Corp., A 307,905 $ 21,790,437 Cable TV 1.7% Naspers Ltd. 89,885 $ 20,320,868 Computer Software - Systems 2.3% EPAM Systems, Inc. (a) 140,714 $ 11,444,269 Globant S.A. (a) 230,230 8,953,645 Linx S.A. 1,099,300 6,401,248 $ 26,799,162 Construction 2.2% PT Indocement Tunggal Prakarsa Tbk. 2,719,400 $ 4,035,686 Techtronic Industries Co. Ltd. 4,252,000 22,005,047 $ 26,040,733 Consumer Products 0.9% Dabur India Ltd. 2,151,566 $ 10,605,322 Consumer Services 6.8% 51job, Inc., ADR (a) 288,715 $ 17,149,671 China Maple Leaf Educational Systems 8,179,000 6,939,726 Ctrip.com International Ltd., ADR (a) 356,174 18,325,152 Kroton Educacional S.A. 2,618,000 14,945,268 MakeMyTrip Ltd. (a) 342,869 11,691,833 SEEK Ltd. 925,986 12,329,883 $ 81,381,533 Electrical Equipment 1.1% LS Industrial Systems Co. Ltd. 259,280 $ 13,382,490 Electronics 10.6% Samsung Electronics Co. Ltd. 29,919 $ 61,451,227 Silicon Motion Technology Corp., ADR 266,900 12,173,309 Taiwan Semiconductor Manufacturing Co. Ltd. 7,375,695 52,912,223 $ 126,536,759 1

3 Portfolio of Investments (unaudited) continued Issuer Value ($) Common Stocks continued Energy - Independent 1.1% Gran Tierra Energy, Inc. (a) 2,960,020 $ 6,068,189 Ultrapar Participacoes S.A. 275,540 6,429,281 $ 12,497,470 Energy - Integrated 2.4% LUKOIL PJSC, ADR 476,365 $ 23,937,341 YPF S.A., ADR 241,273 4,839,937 $ 28,777,278 Food & Beverages 3.8% AVI Ltd. 2,002,099 $ 15,204,179 BRF S.A. (a) 740,010 9,995,783 Orion Corp. (a) 143,376 11,100,323 Tingyi (Cayman Islands) Holding Corp. 6,502,000 8,657,425 $ 44,957,710 Food & Drug Stores 2.9% Clicks Group Ltd. 1,242,579 $ 14,213,184 Dairy Farm International Holdings Ltd. 1,223,700 9,911,970 Eurocash S.A. 976,530 10,714,373 $ 34,839,527 Forest & Paper Products 1.3% Fibria Celulose S.A. 1,153,207 $ 15,309,662 Furniture & Appliances 1.4% Coway Co. Ltd. 190,929 $ 16,729,146 General Merchandise 0.4% S.A.C.I. Falabella 502,799 $ 5,081,107 Insurance 2.1% AIA Group Ltd. 2,513,200 $ 19,284,753 Samsung Fire & Marine Insurance Co. Ltd. 23,437 5,747,012 $ 25,031,765 Internet 11.4% Alibaba Group Holding Ltd., ADR (a) 369,260 $ 63,416,712 Baidu, Inc., ADR (a) 147,611 33,662,689 NAVER Corp. 13,546 9,069,909 Tencent Holdings Ltd. 705,100 29,642,897 $ 135,792,207 Major Banks 3.5% China Construction Bank 29,757,490 $ 26,085,216 Industrial & Commercial Bank of China, H 20,650,000 15,462,927 $ 41,548,143 Metals & Mining 1.1% Iluka Resources Ltd. 1,729,067 $ 13,016,719 Network & Telecom 1.5% VTech Holdings Ltd. 1,255,900 $ 17,653,132 Oil Services 0.7% Lamprell PLC (a) 6,087,375 $ 7,871,589 2

4 Portfolio of Investments (unaudited) continued Issuer Value ($) Common Stocks continued Other Banks & Diversified Financials 16.3% Banco Bradesco S.A., ADR 2,352,591 $ 25,031,568 Credicorp Ltd. 42,920 8,705,893 E.Sun Financial Holding Co. Ltd. 21,318,631 13,139,154 Grupo Financiero Banorte S.A. de C.V. 1,006,545 6,863,709 Grupo Financiero Inbursa S.A. de C.V. 7,761,879 12,980,421 Housing Development Finance Corp. Ltd. 1,292,564 35,928,229 Kasikornbank Co. Ltd. 1,964,500 12,483,346 Komercni Banka A.S. 100,356 4,422,824 Kotak Mahindra Bank Ltd. 1,257,589 19,200,358 PT Bank Central Asia Tbk 4,869,900 6,916,849 Public Bank Berhad 2,203,151 10,639,709 Sberbank of Russia 3,422,460 10,827,613 Shriram Transport Finance Co. Ltd. 983,127 15,148,395 Turkiye Sinai Kalkinma Bankasi A.S. 14,869,200 6,544,239 Union National Bank 4,696,159 5,408,465 $ 194,240,772 Pharmaceuticals 0.9% Genomma Lab Internacional S.A., B (a) 7,904,711 $ 10,128,888 Real Estate 1.9% Aldar Properties PJSC 8,710,226 $ 5,488,199 Concentradora Fibra Hotelera Mexicana S.A. de C.V., REIT 5,489,760 4,492,089 Hang Lung Properties Ltd. 5,315,000 12,931,361 $ 22,911,649 Restaurants 3.5% Alsea S.A.B. de C.V. 1,673,585 $ 6,088,997 Jollibee Foods Corp. 1,518,800 7,070,123 Yum China Holdings, Inc. (a) 810,017 28,642,201 $ 41,801,321 Specialty Chemicals 1.4% Astra Argo Lestari 6,306,900 $ 6,972,476 PTT Global Chemical PLC 3,992,500 9,198,201 $ 16,170,677 Specialty Stores 3.1% Dufry AG (a) 146,018 $ 22,505,303 JD.com, Inc., ADR (a) 326,739 13,693,632 $ 36,198,935 Telecommunications - Wireless 1.0% Mobile TeleSystems PJSC, ADR 1,166,922 $ 11,657,551 Telephone Services 0.6% PT XL Axiata Tbk (a) 28,101,850 $ 7,582,571 Tobacco 0.5% PT Hanjaya Mandala Sampoerna Tbk 20,641,400 $ 5,631,442 Trucking 1.1% Emergent Capital, Inc. 845,241 $ 13,555,044 Utilities - Electric Power 1.1% CESC Ltd. 819,115 $ 13,014,608 Total Common Stocks $1,162,538,138 3

5 Portfolio of Investments (unaudited) continued Issuer Value ($) Preferred Stocks 0.7% Forest & Paper Products 0.7% Suzano Papel e Celulose S.A. 1,556,100 $ 8,650,904 Investment Companies (h) 1.6% Money Market Funds 1.6% MFS Institutional Money Market Portfolio, 1.11% (v) 19,091,135 $ 19,091,135 Other Assets, Less Liabilities (0.1)% (1,254,064) Net Assets 100.0% $1,189,026,113 (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 $19,091,135 and $1,171,189,042, 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 PJSC Public Joint Stock Company 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 8/31/17 (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 August 31, 2017 in valuing the fund s assets or liabilities: Financial Instruments Level 1 Level 2 Level 3 Total Equity Securities: China $275,240,469 $ $ $275,240,469 South Korea 124,273, ,273,110 India 114,627, ,627,959 Brazil 105,301, ,301,109 Hong Kong 90,919,705 90,919,705 Taiwan 78,224,686 78,224,686 South Africa 63,293,274 63,293,274 Mexico 47,170,754 47,170,754 Russia 35,594,892 10,827,613 46,422,505 Other Countries 200,389,363 25,326, ,715,471 Mutual Funds 19,091,135 19,091,135 Total $1,154,126,456 $36,153,721 $ $1,190,280,177 For further information regarding security characteristics, see the Portfolio of Investments. 5

7 Supplemental Information (unaudited) continued Of the level 2 investments presented above, equity investments amounting to $16,127,908 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) 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 $926,254,618 Gross unrealized appreciation 286,844,915 Gross unrealized depreciation (22,819,356) Net unrealized appreciation (depreciation) $264,025,559 The aggregate cost above includes prior fiscal year end tax adjustments, if applicable. (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 an affiliated issuer: Affiliated Issuer Beginning Acquisitions Dispositions Ending MFS Institutional Money Market Portfolio 19,889,594 58,619,557 (59,418,016) 19,091,135 Affiliated Issuer Realized Gain (Loss) Change in Unrealized Appreciation (Depreciation) Capital Gain Distributions Dividend Income MFS Institutional Money Market Portfolio $(782) $167 $ $64,625 $19,091,135 (4) Issuer Country Weightings Issuer country weighting percentages of portfolio holdings based on net assets, as of August 31, 2017, are as follows: China 23.1% South Korea 10.5% India 9.6% Brazil 8.9% Hong Kong 7.6% Taiwan 6.6% South Africa 5.3% United States 4.3% Mexico 4.0% Other Countries 20.1% Ending Value 6