QUARTERLY REPORT September 30, 2017 MFS GLOBAL EQUITY SERIES. MFS Variable Insurance Trust

Transcription

1 QUARTERLY REPORT September 30, 2017 MFS GLOBAL EQUITY SERIES MFS Variable Insurance Trust

2 PORTFOLIO OF INVESTMENTS 9/30/17 (unaudited) The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes. COMMON STOCKS 98.7% Aerospace 4.2% Honeywell International, Inc. 10,788 $ 1,529,091 MTU Aero Engines Holding AG 2, ,279 United Technologies Corp. 5, ,340 $ 2,601,710 Airlines 0.8% Aena S.A. 2,811 $ 507,485 Alcoholic Beverages 6.2% AmBev S.A. 54,168 $ 359,849 Carlsberg A.S., B 4, ,558 Diageo PLC 37,369 1,228,326 Heineken N.V. 5, ,998 Pernod Ricard S.A. 8,354 1,155,704 $ 3,792,435 Apparel Manufacturers 3.7% Burberry Group PLC 16,288 $ 384,136 Compagnie Financiere Richemont S.A. 7, ,049 LVMH Moet Hennessy Louis Vuitton SE 4,457 1,229,751 $ 2,258,936 Automotive 1.1% Delphi Automotive PLC 4,062 $ 399,701 Harley-Davidson, Inc. 5, ,625 $ 664,326 Broadcasting 4.1% Omnicom Group, Inc. 4,585 $ 339,611 Walt Disney Co. 11,239 1,107,828 WPP PLC 57,693 1,070,724 $ 2,518,163 Brokerage & Asset Managers 1.5% Deutsche Boerse AG 3,226 $ 349,673 Franklin Resources, Inc. 12, ,583 $ 896,256 Business Services 6.0% Accenture PLC, A 10,499 $ 1,418,100 Adecco S.A. 5, ,482 Brenntag AG 4, ,609 Cognizant Technology Solutions Corp., A 6, ,961 Compass Group PLC 31, ,702 PayPal Holdings, Inc. (a) 6, ,244 $ 3,655,098 Cable TV 1.9% British Sky Broadcasting Group PLC 26,507 $ 325,002 Comcast Corp., A 22, ,722 $ 1,188,724 Chemicals 2.8% 3M Co. 4,910 $ 1,030,609 Monsanto Co. 5, ,646 $ 1,692,255 Computer Software 2.5% Check Point Software Technologies Ltd. (a) 5,141 $ 586,177 Oracle Corp. 19, ,572 $ 1,543,749 Consumer Products 6.4% Colgate-Palmolive Co. 9,524 $ 693,823 Coty, Inc., A 51, ,841 Essity AB (a) 41,391 1,126,134 Reckitt Benckiser Group PLC 13,351 1,218,868 $ 3,896,666 Electrical Equipment 3.1% Amphenol Corp., A 4,627 $ 391,629 Legrand S.A. 7, ,886 Schneider Electric S.A. 9, ,002 W.W. Grainger, Inc. 1, ,027 $ 1,922,544 Electronics 2.0% Hoya Corp. 6,800 $ 367,119 Microchip Technology, Inc. 3, ,500 Samsung Electronics Co. Ltd ,518 $ 1,239,137 Entertainment 1.7% Time Warner, Inc. 10,036 $ 1,028,188 Food & Beverages 5.2% Danone S.A. 14,233 $ 1,116,475 Kellogg Co. 9, ,193 Nestle S.A. 18,258 1,529,121 $ 3,212,789 Gaming & Lodging 0.9% Marriott International, Inc., A 2,257 $ 248,857 Sands China Ltd. 24, ,891 Wynn Resorts Ltd. 1, ,601 $ 525,349 Insurance 0.3% Swiss Re Ltd. 2,096 $ 189,827 Internet 0.9% ebay, Inc. (a) 14,279 $ 549,170 Machinery & Tools 0.7% Kubota Corp. 25,200 $ 458,090 Major Banks 6.5% Bank of New York Mellon Corp. 19,452 $ 1,031,345 Erste Group Bank AG 6, ,834 Goldman Sachs Group, Inc. 2, ,893 1

3 Portfolio of Investments (unaudited) continued Major Banks continued State Street Corp. 12,472 $ 1,191,575 UBS AG 49, ,395 $ 3,965,042 Medical Equipment 12.7% Abbott Laboratories 14,259 $ 760,860 Cooper Cos., Inc. 2, ,508 Dentsply Sirona, Inc. 3, ,818 Medtronic PLC 17,240 1,340,755 Sonova Holding AG 1, ,661 Stryker Corp. 8,358 1,187,003 Thermo Fisher Scientific, Inc. 9,553 1,807,428 Waters Corp. (a) 2, ,968 Zimmer Biomet Holdings, Inc. 9,953 1,165,397 $ 7,778,398 Network & Telecom 0.7% Cisco Systems, Inc. 12,046 $ 405,107 Oil Services 1.1% National Oilwell Varco, Inc. 4,764 $ 170,218 NOW, Inc. (a) 2,831 39,096 Schlumberger Ltd. 6, ,088 $ 689,402 Other Banks & Diversified Financials 4.9% American Express Co. 9,699 $ 877,371 Grupo Financiero Banorte S.A. de C.V. 32, ,844 Julius Baer Group Ltd. 6, ,499 Kasikornbank Co. Ltd. 22, ,378 Komercni Banka A.S ,376 Visa, Inc., A 13,374 1,407,480 $ 3,034,948 Pharmaceuticals 5.8% Bayer AG 13,533 $ 1,844,184 Johnson & Johnson 1, ,279 Merck KGaA 4, ,887 Pharmaceuticals continued Roche Holding AG 3,933 $ 1,004,014 $ 3,571,364 Railroad & Shipping 3.2% Canadian National Railway Co. 12,475 $ 1,033,553 Kansas City Southern Co. 6, ,205 Union Pacific Corp. 2, ,868 $ 1,957,626 Restaurants 0.6% Whitbread PLC 6,748 $ 340,534 Specialty Chemicals 4.1% Akzo Nobel N.V. 9,959 $ 919,515 L Air Liquide S.A. 2, ,447 Linde AG 4, ,693 Praxair, Inc. 3, ,408 $ 2,541,063 Specialty Stores 1.4% AutoZone, Inc. (a) 507 $ 301,721 Hermes International ,035 Sally Beauty Holdings, Inc. (a) 11, ,314 Urban Outfitters, Inc. (a) 8, ,522 $ 875,592 Trucking 1.7% United Parcel Service, Inc., B 8,642 $ 1,037,818 Total Common Stocks $60,537,791 INVESTMENT COMPANIES (h) 1.3% Money Market Funds 1.3% MFS Institutional Money Market Portfolio, 1.11% (v) 772,306 $ 772,306 OTHER ASSETS, LESS LIABILITIES (0.0)% (8,480) Net Assets 100.0% $61,301,617 (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 $772,306 and $60,537,791, 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 See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report. 2

4 Supplemental Information 9/30/17 (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 September 30, 2017 in valuing the fund s assets or liabilities: Financial Instruments Level 1 Level 2 Level 3 Total Equity Securities $60,537,791 $ $ $60,537,791 Mutual Funds 772, ,306 Total $61,310,097 $ $ $61,310,097 For further information regarding security characteristics, see the Portfolio of Investments. Of the level 1 investments presented above, equity investments amounting to $14,224,618 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. 3

5 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 347,393 7,847,388 (7,422,475) 772,306 Affiliated Issuers Realized Gain (Loss) Change in Unrealized Appreciation (Depreciation) Capital Gain Distributions Dividend Income MFS Institutional Money Market Portfolio $38 $8 $ $3,568 $772,306 (3) Issuer Country Weightings Issuer country weighting percentages of portfolio holdings based on net assets, as of September 30, 2017, are as follows: United States 54.7% France 8.6% Switzerland 8.6% United Kingdom 8.5% Germany 6.9% Netherlands 2.5% Sweden 1.8% Canada 1.7% Japan 1.3% Other Countries 5.4% Ending Value 4