MFS TOTAL RETURN FUND

Transcription

1 QUARTERLY REPORT December 31, 2012 MFS TOTAL RETURN FUND

2 PORTFOLIO OF INVESTMENTS 12/31/12 (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 - 4.4% Honeywell International, Inc. 946,380 $ 60,066,724 Lockheed Martin Corp. 987,440 91,130,838 Northrop Grumman Corp. 274,130 18,525,705 Precision Castparts Corp. 62,790 11,893,682 United Technologies Corp. 883,670 72,469,777 $ 254,086,726 Alcoholic Beverages - 0.9% Diageo PLC 1,750,332 $ 50,956,585 Diageo PLC, ADR 19,290 2,248,828 $ 53,205,413 Automotive - 1.2% Delphi Automotive PLC (a) 667,250 $ 25,522,313 General Motors Co. (a) 272,970 7,869,725 Johnson Controls, Inc. 1,194,140 36,660,098 $ 70,052,136 Broadcasting - 2.3% Omnicom Group, Inc. 679,740 $ 33,959,810 Viacom, Inc., B 778,440 41,054,926 Walt Disney Co. 1,134,340 56,478,789 $ 131,493,525 Brokerage & Asset Managers - 1.1% BlackRock, Inc. 189,250 $ 39,119,868 Franklin Resources, Inc. 208,610 26,222,277 $ 65,342,145 Business Services - 1.2% Accenture PLC, A 760,040 $ 50,542,660 Dun & Bradstreet Corp. 107,120 8,424,988 Fiserv, Inc. (a) 117,360 9,274,961 $ 68,242,609 Cable TV - 0.8% Comcast Corp., Special A 1,273,690 $ 45,789,156 Chemicals - 2.3% 3M Co. 630,780 $ 58,567,923 Celanese Corp. 244,470 10,886,249 E.I. du Pont de Nemours & Co. 165,080 7,423,648 PPG Industries, Inc. 403,350 54,593,423 $ 131,471,243 Computer Software - 1.0% Check Point Software Technologies Ltd. (a) 182,030 $ 8,671,909 Oracle Corp. 1,516,870 50,542,108 $ 59,214,017 1

3 Common Stocks - continued Computer Software - Systems - 1.1% Hewlett-Packard Co. 1,040,110 $ 14,821,568 International Business Machines Corp. 245,210 46,969,976 $ 61,791,544 Construction - 0.5% Stanley Black & Decker, Inc. 355,821 $ 26,320,079 Consumer Products - 0.6% Procter & Gamble Co. 373,338 $ 25,345,917 Reckitt Benckiser Group PLC 156,311 9,791,904 $ 35,137,821 Electrical Equipment - 2.4% Danaher Corp. 1,196,820 $ 66,902,238 Eaton Corp. PLC 542,403 29,398,243 Pentair Ltd. 187,510 9,216,117 Tyco International Ltd. 1,071,220 31,333,185 $ 136,849,783 Electronics - 0.4% Intel Corp. 607,710 $ 12,537,057 Microchip Technology, Inc. 242,540 7,904,379 $ 20,441,436 Energy - Independent - 2.6% Anadarko Petroleum Corp. 316,930 $ 23,551,068 Apache Corp. 422,430 33,160,755 EOG Resources, Inc. 101,730 12,287,967 EQT Corp. 186,460 10,997,411 Noble Energy, Inc. 255,350 25,979,309 Occidental Petroleum Corp. 604,160 46,284,698 $ 152,261,208 Energy - Integrated - 2.8% Chevron Corp. 598,075 $ 64,675,831 Exxon Mobil Corp. 1,107,238 95,831,449 $ 160,507,280 Engineering - Construction - 0.2% Fluor Corp. 183,920 $ 10,803,461 Food & Beverages - 3.1% Coca-Cola Enterprises, Inc. 154,290 $ 4,895,622 Dr Pepper Snapple Group, Inc. 169,730 7,498,671 General Mills, Inc. 1,049,360 42,404,638 Groupe Danone 457,032 30,195,917 J.M. Smucker Co. 57,190 4,932,066 Kellogg Co. 116,920 6,529,982 Kraft Foods Group, Inc. 68,906 3,133,156 Mondelez International, Inc. 375,620 9,567,041 Nestle S.A. 727,633 47,413,685 PepsiCo, Inc. 319,670 21,875,018 $ 178,445,796 2

4 Common Stocks - continued Food & Drug Stores - 1.1% CVS Caremark Corp. 967,629 $ 46,784,862 Kroger Co. 365,750 9,516,815 Walgreen Co. 225,820 8,357,598 $ 64,659,275 General Merchandise - 1.1% Kohl s Corp. 430,670 $ 18,510,197 Target Corp. 791,880 46,855,540 $ 65,365,737 Insurance - 4.0% ACE Ltd. 650,110 $ 51,878,778 Aon PLC 544,660 30,283,096 Chubb Corp. 175,010 13,181,753 MetLife, Inc. 1,375,780 45,318,193 Prudential Financial, Inc. 821,080 43,788,196 Travelers Cos., Inc. 619,253 44,474,750 $ 228,924,766 Leisure & Toys - 0.4% Hasbro, Inc. 589,240 $ 21,153,716 Major Banks - 7.2% Bank of America Corp. 1,850,270 $ 21,463,132 Bank of New York Mellon Corp. 2,325,818 59,773,523 Goldman Sachs Group, Inc. 572,742 73,058,970 JPMorgan Chase & Co. 2,953, ,867,637 Morgan Stanley 469,400 8,974,928 PNC Financial Services Group, Inc. 357,139 20,824,775 State Street Corp. 753,150 35,405,582 Wells Fargo & Co. 1,863,720 63,701,950 $ 413,070,497 Medical & Health Technology & Services - 0.5% AmerisourceBergen Corp. 239,780 $ 10,353,700 Express Scripts Holding Co. (a) 150,150 8,108,100 Quest Diagnostics, Inc. 155,530 9,062,733 $ 27,524,533 Medical Equipment - 2.1% Becton, Dickinson & Co. 116,890 $ 9,139,629 Covidien PLC 416,200 24,031,388 Medtronic, Inc. 474,370 19,458,657 St. Jude Medical, Inc. 787,870 28,473,622 Thermo Fisher Scientific, Inc. 594,570 37,921,675 $ 119,024,971 Metals & Mining - 0.1% Cliffs Natural Resources, Inc. 84,340 $ 3,252,150 Natural Gas - Pipeline - 0.3% Williams Cos., Inc. 551,790 $ 18,065,605 3

5 Common Stocks - continued Oil Services - 0.4% Schlumberger Ltd. 119,080 $ 8,251,053 Transocean, Inc. 346,120 15,454,258 $ 23,705,311 Other Banks & Diversified Financials - 1.2% American Express Co. 151,050 $ 8,682,354 MasterCard, Inc., A 16,886 8,295,754 SunTrust Banks, Inc. 264,590 7,501,127 Visa, Inc., A 146,450 22,198,891 Western Union Co. 1,029,601 14,012,870 Zions Bancorporation 384,790 8,234,506 $ 68,925,502 Pharmaceuticals - 4.9% Abbott Laboratories 757,350 $ 49,606,425 Bayer AG 108,839 10,335,620 Johnson & Johnson 1,352,920 94,839,692 Merck & Co., Inc. 395,570 16,194,636 Pfizer, Inc. 4,017, ,768,305 Roche Holding AG 49,601 10,104,959 $ 281,849,637 Printing & Publishing - 0.3% McGraw-Hill Cos., Inc. 167,740 $ 9,170,346 Moody s Corp. 221,330 11,137,326 $ 20,307,672 Railroad & Shipping - 0.3% Canadian National Railway Co. 94,840 $ 8,631,388 Union Pacific Corp. 60,630 7,622,404 $ 16,253,792 Restaurants - 0.3% McDonald s Corp. 193,560 $ 17,073,928 Specialty Chemicals - 0.5% Air Products & Chemicals, Inc. 377,810 $ 31,743,596 Specialty Stores - 0.5% Advance Auto Parts, Inc. 243,954 $ 17,650,072 Staples, Inc. 1,015,000 11,571,000 $ 29,221,072 Telecommunications - Wireless - 0.8% Vodafone Group PLC 18,432,047 $ 46,354,133 Vodafone Group PLC, ADR 96,450 2,429,576 $ 48,783,709 Telephone Services - 1.3% AT&T, Inc. 1,944,048 $ 65,533,858 CenturyLink, Inc. 203,623 7,965,732 $ 73,499,590 Tobacco - 2.7% Altria Group, Inc. 292,670 $ 9,195,691 Lorillard, Inc. 257,400 30,030,858 4

6 Common Stocks - continued Tobacco - continued Philip Morris International, Inc. 1,389,540 $ 116,221,126 $ 155,447,675 Trucking - 0.7% United Parcel Service, Inc., B 535,390 $ 39,474,305 Utilities - Electric Power - 1.0% Duke Energy Corp. 134,710 $ 8,594,498 NRG Energy, Inc. 340,490 7,827,865 PG&E Corp. 290,310 11,664,656 PPL Corp. 632,300 18,102,749 Public Service Enterprise Group, Inc. 451,240 13,807,944 $ 59,997,712 Total Common Stocks $3,488,780,129 Bonds % Agency - Other - 0.1% Financing Corp., 9.65%, 2018 $ 2,850,000 $ 4,165,338 Asset-Backed & Securitized - 1.7% Bayview Financial Revolving Mortgage Loan Trust, FRN, 1.81%, 2040 (z) $ 6,745,033 $ 4,263,755 BlackRock Capital Finance LP, 7.75%, 2026 (n) 938, ,427 Capital Trust Realty Ltd., CDO, 5.16%, 2035 (n) 3,859,601 3,896,653 Citigroup/Deutsche Bank Commercial Mortgage Trust, 5.322%, ,105,112 8,150,345 Credit Suisse Mortgage Capital Certificate, FRN, 5.695%, ,759,829 11,309,748 GMAC Mortgage Corp. Loan Trust, FRN, 5.805%, ,804,049 3,377,391 JPMorgan Chase Commercial Mortgage Securities Corp., 4.78%, , ,091 JPMorgan Chase Commercial Mortgage Securities Corp., A3, FRN, 5.93%, ,669,291 13,477,554 JPMorgan Chase Commercial Mortgage Securities Corp., A4, FRN, 5.812%, ,257,080 9,628,994 JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 4.948%, ,200,000 1,282,940 JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.214%, ,279,327 2,393,904 Merrill Lynch Mortgage Trust, A3, FRN, 5.85%, ,948,101 2,071,572 Merrill Lynch/Countrywide Commercial Mortgage Trust, FRN, 5.741%, ,723,839 13,430,877 Morgan Stanley Capital I, Inc., FRN, 1.179%, 2030 (i)(n) 26,682, ,135 Residential Asset Mortgage Products, Inc., FRN, 4.971%, , ,385 Residential Funding Mortgage Securities, Inc., FRN, 5.32%, ,112,841 4,875,509 Spirit Master Funding LLC, 5.05%, 2023 (z) 6,538,752 6,183,371 Wachovia Bank Commercial Mortgage Trust, A4, FRN, 5.921%, ,392,500 11,019,478 $ 97,639,129 Automotive - 0.3% Hyundai Capital America, 2.125%, 2017 (n) $ 1,330,000 $ 1,339,523 Toyota Motor Credit Corp., 3.2%, ,480,000 3,690,220 Toyota Motor Credit Corp., 3.4%, ,890,000 5,325,518 Volkswagen International Finance N.V., 2.375%, 2017 (n) 4,856,000 5,001,583 $ 15,356,844 Broadcasting - 0.2% Hearst-Argyle Television, Inc., 7.5%, 2027 $ 3,800,000 $ 3,040,000 News America, Inc., 8.5%, ,903,000 8,015,011 $ 11,055,011 5

7 Bonds - continued Cable TV - 0.4% Cox Communications, Inc., 4.625%, 2013 $ 6,711,000 $ 6,826,543 DIRECTV Holdings LLC, 4.6%, ,320,000 7,924,200 Time Warner Entertainment Co. LP, 8.375%, ,170,000 10,464,400 $ 25,215,143 Conglomerates - 0.2% ABB Finance (USA), Inc., 2.875%, 2022 $ 1,772,000 $ 1,814,246 General Electric Co., 2.7%, ,120,000 5,218,852 United Technologies Corp., 3.1%, ,450,000 2,594,521 $ 9,627,619 Consumer Services - 0.0% ebay, Inc., 1.35%, 2017 $ 1,644,000 $ 1,663,146 Defense Electronics - 0.1% BAE Systems Holdings, Inc., 5.2%, 2015 (n) $ 3,942,000 $ 4,316,845 Emerging Market Quasi-Sovereign - 0.4% CNOOC Finance (2012) Ltd., 3.875%, 2022 (n) $ 5,880,000 $ 6,248,547 Corporacion Nacional del Cobre de Chile, 3.75%, 2020 (n) 1,789,000 1,934,487 Petrobras International Finance Co., 5.375%, ,152,000 2,422,765 Petrobras International Finance Co., 6.75%, ,511,000 1,914,568 Petroleos Mexicanos, 8%, ,145,000 5,419,588 Qtel International Finance Ltd., 6.5%, 2014 (n) 1,395,000 1,495,440 Ras Laffan Liquefied Natural Gas Co. Ltd., 5.832%, 2016 (n) 4,098,176 4,514,141 $ 23,949,536 Emerging Market Sovereign - 0.4% Republic of Peru, 7.35%, 2025 $ 551,000 $ 798,399 Russian Federation, 3.625%, 2015 (z) 12,000,000 12,678,000 United Mexican States, 4.75%, ,817,000 8,833,210 $ 22,309,609 Energy - Independent - 0.1% Apache Corp., 3.25%, 2022 $ 2,382,000 $ 2,524,458 Apache Corp., 4.75%, ,827,000 1,988,885 EOG Resources, Inc., 2.625%, ,718,000 1,730,088 Hess Corp., 8.125%, ,740,000 2,290,026 $ 8,533,457 Energy - Integrated - 0.6% BP Capital Markets PLC, 4.5%, 2020 $ 1,661,000 $ 1,914,238 BP Capital Markets PLC, 4.742%, ,892,000 5,728,698 Husky Energy, Inc., 5.9%, ,370,000 4,683,971 Husky Energy, Inc., 7.25%, ,453,000 5,782,786 Petro-Canada, 6.05%, ,475,000 11,522,709 Total Capital International S.A., 1.55%, ,071,000 7,180,014 $ 36,812,416 Financial Institutions - 0.0% General Electric Capital Corp., 5.45%, 2013 $ 2,383,000 $ 2,387,101 Food & Beverages - 0.2% Anheuser-Busch InBev S.A., 8%, 2039 $ 5,850,000 $ 9,471,156 Kraft Foods Group, Inc., 3.5%, 2022 (n) 2,361,000 2,520,053 6

8 Bonds - continued Food & Beverages - continued Molson Coors Brewing Co., 5%, 2042 $ 2,013,000 $ 2,255,893 $ 14,247,102 Gaming & Lodging - 0.0% Wyndham Worldwide Corp., 6%, 2016 $ 50,000 $ 56,548 Insurance - 0.1% Metropolitan Life Global Funding I, 5.125%, 2013 (n) $ 3,340,000 $ 3,381,827 Metropolitan Life Global Funding I, 5.125%, 2014 (n) 1,320,000 1,403,292 $ 4,785,119 Insurance - Health - 0.1% WellPoint, Inc., 3.3%, 2023 $ 3,410,000 $ 3,498,677 Insurance - Property & Casualty - 0.3% Chubb Corp., 6.375% to 2017, FRN to 2067 $ 8,200,000 $ 8,938,000 Marsh & McLennan Cos., Inc., 4.8%, ,360,000 6,031,308 ZFS Finance USA Trust V, 6.5% to 2017, FRN to 2067 (n) 2,925,000 3,118,781 $ 18,088,089 International Market Quasi-Sovereign - 0.7% Achmea Hypotheekbank N.V., 3.2%, 2014 (n) $ 394,000 $ 413,026 ING Bank N.V., 3.9%, 2014 (n) 6,920,000 7,194,039 Irish Life & Permanent PLC, 3.6%, 2013 (e)(n) 8,600,000 8,600,060 KFW International Finance, Inc., 4.875%, ,250,000 8,825,425 Societe Financement de l Economie Francaise, 3.375%, 2014 (n) 4,053,000 4,211,006 Temasek Financial I Ltd., 2.375%, 2023 (n) 10,140,000 9,986,947 $ 39,230,503 Local Authorities - 0.1% New Jersey Turnpike Authority Rev. (Build America Bonds), F, 7.414%, 2040 $ 5,815,000 $ 8,582,591 Machinery & Tools - 0.1% Atlas Copco AB, 5.6%, 2017 (n) $ 5,970,000 $ 6,962,047 Major Banks - 1.7% ABN AMRO Bank N.V., FRN, 2.083%, 2014 (n) $ 5,900,000 $ 5,968,381 Banco Santander U.S. Debt S.A.U., 3.781%, 2015 (n) 2,600,000 2,614,794 Bank of America Corp., 7.375%, ,825,000 3,059,043 Bank of America Corp., 7.625%, ,980,000 5,092,693 Bank of America Corp., 5.49%, ,135,000 4,593,232 BNP Paribas, 7.195% to 2037, FRN to 2049 (n) 3,200,000 3,280,000 Commonwealth Bank of Australia, 5%, 2019 (n) 3,930,000 4,567,057 Credit Suisse New York, 5.5%, ,410,000 5,756,202 Goldman Sachs Group, Inc., 5.625%, ,364,000 6,982,434 HSBC Holdings PLC, 5.1%, ,688,000 4,355,089 ING Bank N.V., 3.75%, 2017 (n) 4,761,000 5,059,848 JPMorgan Chase & Co., 6.3%, ,750,000 8,327,894 JPMorgan Chase & Co., 3.25%, ,884,000 1,940,107 Merrill Lynch & Co., Inc., 6.15%, ,790,000 6,899,000 Morgan Stanley, 6.625%, ,920,000 8,155,739 PNC Funding Corp., 5.625%, ,510,000 7,516,329 Royal Bank of Scotland PLC, 2.55%, ,405,000 1,437,891 Wachovia Corp., 5.25%, ,613,000 4,919,026 7

9 Bonds - continued Major Banks - continued Wells Fargo & Co., 2.1%, 2017 $ 6,600,000 $ 6,823,555 $ 97,348,314 Medical & Health Technology & Services - 0.3% Aristotle Holding, Inc., 2.65%, 2017 (n) $ 7,200,000 $ 7,483,601 CareFusion Corp., 6.375%, ,240,000 7,440,876 $ 14,924,477 Metals & Mining - 0.1% Vale Overseas Ltd., 4.625%, 2020 $ 1,631,000 $ 1,762,297 Vale Overseas Ltd., 6.875%, ,269,000 1,591,079 $ 3,353,376 Mortgage-Backed % Fannie Mae, 4.01%, 2013 $ 913,453 $ 918,501 Fannie Mae, 4.021%, ,829,028 2,844,462 Fannie Mae, 4.743%, , ,875 Fannie Mae, 4.561%, ,870,701 4,005,207 Fannie Mae, 4.804%, , ,160 Fannie Mae, 4.825%, ,869,952 4,036,665 Fannie Mae, 4.88%, ,359,196 1,466,920 Fannie Mae, 4.564%, , ,140 Fannie Mae, 4.78%, ,210,846 2,379,119 Fannie Mae, 4.856%, , ,661 Fannie Mae, 4.907%, ,116,909 2,288,563 Fannie Mae, 5.19%, ,284,754 1,398,200 Fannie Mae, 5.09%, ,000,000 2,218,849 Fannie Mae, 5.35%, , ,307 Fannie Mae, 5.662%, ,179,280 1,321,090 Fannie Mae, 5.725%, ,022,094 2,291,109 Fannie Mae, 5.05%, ,402,397 2,672,619 Fannie Mae, 5.5%, ,484, ,747,800 Fannie Mae, 6%, ,610,452 51,723,027 Fannie Mae, 2.578%, ,000,000 4,283,016 Fannie Mae, 3.8%, , ,564 Fannie Mae, 3.849%, ,432,631 1,610,130 Fannie Mae, 3.91%, ,171,869 1,309,791 Fannie Mae, 4.5%, ,321,029 22,164,834 Fannie Mae, 5%, ,783,945 55,225,064 Fannie Mae, 4.6%, , ,410 Fannie Mae, 3%, ,257,393 7,670,384 Fannie Mae, 7.5%, , ,511 Fannie Mae, 6.5%, ,756,255 17,843,413 Fannie Mae, 4%, ,970,214 2,137,133 Fannie Mae, 3.5%, ,479,323 14,504,426 Fannie Mae, TBA, 3%, ,630,000 7,978,119 Fannie Mae, TBA, 3.5%, ,181,000 31,110,821 Freddie Mac, 6%, ,936,444 28,606,050 Freddie Mac, 5%, ,798,878 35,602,626 Freddie Mac, 2.412%, ,963,000 2,076,740 Freddie Mac, 3.154%, , ,845 Freddie Mac, 4.5%, ,873,460 13,687,669 Freddie Mac, 5.085%, ,789,000 8,048,203 Freddie Mac, 5.5%, ,247,457 23,172,231 Freddie Mac, 3.808%, ,739,000 6,484,949 8

10 Bonds - continued Mortgage-Backed - continued Freddie Mac, 6.5%, $ 8,814,112 $ 10,031,146 Freddie Mac, 4%, ,755,171 28,587,748 Freddie Mac, 3.5%, ,349,011 12,153,147 Freddie Mac, 3.882%, ,574,445 2,893,182 Freddie Mac, TBA, 2.5%, ,559,000 7,888,526 Freddie Mac, TBA, 3%, ,142,000 13,739,551 Ginnie Mae, 5.5%, ,775,071 11,911,850 Ginnie Mae, 6%, ,871,289 12,228,032 Ginnie Mae, 4.5%, ,049,032 34,217,914 Ginnie Mae, 5%, ,418,257 23,559,472 Ginnie Mae, 3.5%, ,900,808 10,800,413 Ginnie Mae, 4%, ,098,014 16,585,514 Ginnie Mae, TBA, 3%, ,530,000 19,670,877 $ 679,501,575 Natural Gas - Pipeline - 0.3% Enterprise Products Operating LLC, 6.5%, 2019 $ 5,184,000 $ 6,496,615 Kinder Morgan Energy Partners LP, 7.75%, ,520,000 3,389,980 Spectra Energy Capital LLC, 8%, ,327,000 7,035,257 $ 16,921,852 Network & Telecom - 0.2% AT&T, Inc., 5.55%, 2041 $ 8,008,000 $ 9,610,593 Telecom Italia Capital, 5.25%, ,186,000 4,301,115 $ 13,911,708 Oil Services - 0.1% Transocean, Inc., 3.8%, 2022 $ 2,855,000 $ 2,926,181 Other Banks & Diversified Financials - 0.7% American Express Co., 5.5%, 2016 $ 6,317,000 $ 7,221,986 Banco Bradesco S.A., 6.75%, 2019 (n) 3,383,000 3,831,248 Capital One Financial Corp., 6.15%, ,680,000 9,930,094 Groupe BPCE S.A., 12.5% to 2019, FRN to 2049 (n) 5,168,000 5,989,350 Nordea Bank AB, 4.875%, 2021 (z) 3,590,000 4,164,795 Svenska Handelsbanken AB, 4.875%, 2014 (n) 5,000,000 5,283,800 Swedbank AB, 2.125%, 2017 (n) 1,317,000 1,345,632 $ 37,766,905 Pharmaceuticals - 0.6% AbbVie, Inc., 1.2%, 2015 (n) $ 10,860,000 $ 10,932,556 Hospira, Inc., 6.05%, ,813,000 6,748,672 Roche Holdings, Inc., 6%, 2019 (n) 6,175,000 7,686,597 Teva Pharmaceutical Finance IV LLC, 3.65%, ,330,000 7,844,801 $ 33,212,626 Real Estate - 0.6% Boston Properties, Inc., REIT, 5%, 2015 $ 2,006,000 $ 2,191,431 ERP Operating LP, REIT, 5.375%, ,460,000 1,662,035 ERP Operating LP, REIT, 4.625%, ,212,000 5,870,865 HCP, Inc., REIT, 5.375%, ,146,000 4,721,282 HRPT Properties Trust, REIT, 6.25%, ,278,000 12,372,383 WEA Finance LLC, REIT, 6.75%, 2019 (n) 2,086,000 2,584,204 WEA Finance LLC, REIT, 4.625%, 2021 (n) 5,810,000 6,505,527 $ 35,907,727 9

11 Bonds - continued Retailers - 0.4% Home Depot, Inc., 5.95%, 2041 $ 1,578,000 $ 2,130,728 Limited Brands, Inc., 5.25%, ,262,000 2,375,100 Target Corp., 4%, ,822,000 5,981,401 Wal-Mart Stores, Inc., 5.25%, ,347,000 14,999,099 $ 25,486,328 Supranational - 0.2% Asian Development Bank, 2.75%, 2014 $ 5,390,000 $ 5,570,673 Asian Development Bank, 1.125%, ,322,000 3,382,324 $ 8,952,997 Telecommunications - Wireless - 0.3% Crown Castle Towers LLC, 6.113%, 2020 (n) $ 3,852,000 $ 4,639,669 Crown Castle Towers LLC, 4.883%, 2020 (n) 2,040,000 2,301,861 Rogers Communications, Inc., 6.8%, ,529,000 10,788,869 $ 17,730,399 Tobacco - 0.1% B.A.T. International Finance PLC, 3.25%, 2022 (n) $ 5,833,000 $ 6,079,969 Transportation - Services - 0.1% ERAC USA Finance Co., 7%, 2037 (n) $ 6,381,000 $ 8,102,779 U.S. Government Agencies and Equivalents - 0.5% Aid-Egypt, 4.45%, 2015 $ 9,559,000 $ 10,583,916 Small Business Administration, 4.35%, ,144 1,028,078 Small Business Administration, 4.77%, ,227,424 2,486,923 Small Business Administration, 5.18%, ,721,417 4,167,977 Small Business Administration, 5.52%, ,116,617 2,400,838 Small Business Administration, 4.99%, ,597,148 4,059,435 Small Business Administration, 4.95%, ,780,822 3,070,878 $ 27,798,045 U.S. Treasury Obligations % U.S. Treasury Bonds, 8.5%, 2020 $ 2,148,000 $ 3,233,410 U.S. Treasury Bonds, 6%, ,524,000 2,205,275 U.S. Treasury Bonds, 6.75%, ,000 1,430,670 U.S. Treasury Bonds, 5.25%, ,294,000 7,331,364 U.S. Treasury Bonds, 5.375%, ,690,000 6,694,975 U.S. Treasury Bonds, 4.5%, ,557,000 2,049,158 U.S. Treasury Bonds, 5%, ,452,000 3,459,620 U.S. Treasury Bonds, 4.5%, ,043, ,670,710 U.S. Treasury Notes, 1.375%, ,000 87,037 U.S. Treasury Notes, 3.875%, ,952,000 9,997,093 U.S. Treasury Notes, 3.125%, ,207,000 21,670,076 U.S. Treasury Notes, 2.75%, ,524,000 25,044,179 U.S. Treasury Notes, 2%, ,523,000 11,712,945 U.S. Treasury Notes, 1.5%, ,019,000 16,227,375 U.S. Treasury Notes, 1.875%, ,541,000 88,207,607 U.S. Treasury Notes, 1.875%, ,430,000 29,053,015 U.S. Treasury Notes, 4.75%, ,962,000 3,144,812 U.S. Treasury Notes, 0.5%, ,032,000 21,124,015 U.S. Treasury Notes, 2.125%, ,369, ,411,900 U.S. Treasury Notes, 4.25%, , ,138 U.S. Treasury Notes, 2.625%, ,568,000 4,888,116 10

12 Bonds - continued U.S. Treasury Obligations - continued U.S. Treasury Notes, 0.875%, 2016 $ 94,999,000 $ 96,305,236 U.S. Treasury Notes, 4.75%, ,870,000 3,407,453 U.S. Treasury Notes, 3.75%, ,535,000 5,280,794 U.S. Treasury Notes, 3.125%, ,370,000 59,309,025 U.S. Treasury Notes, 3.5%, ,133,000 64,010,295 U.S. Treasury Notes, 3.125%, ,239,000 5,940,942 $ 754,840,235 Utilities - Electric Power - 0.9% Bruce Mansfield Unit, 6.85%, 2034 $ 5,721,111 $ 5,961,398 MidAmerican Funding LLC, 6.927%, ,485,000 16,582,652 Oncor Electric Delivery Co., 7%, ,725,000 11,089,388 Progress Energy, Inc., 3.15%, ,169,000 6,245,039 PSEG Power LLC, 5.32%, ,099,000 5,764,736 System Energy Resources, Inc., 5.129%, 2014 (z) 1,483,497 1,503,003 Waterford 3 Funding Corp., 8.09%, ,991,771 4,122,314 $ 51,268,530 Total Bonds $2,194,515,893 Convertible Preferred Stocks - 0.3% Aerospace - 0.0% United Technologies Corp., 7.5% 41,830 $ 2,330,349 Automotive - 0.2% General Motors Co., 4.75% 193,780 $ 8,551,511 Utilities - Electric Power - 0.1% PPL Corp., 9.5% 58,230 $ 3,046,011 Total Convertible Preferred Stocks $ 13,927,871 Money Market Funds - 2.5% MFS Institutional Money Market Portfolio, 0.16%, at Net Asset Value (v) 141,908,556 $ 141,908,556 Total Investments $5,839,132,449 Other Assets, Less Liabilities - (1.5)% (84,776,132) Net Assets % $5,754,356,317 (a) Non-income producing security. (e) Guaranteed by Minister for Finance of Ireland. (i) Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security. (n) Securities exempt from registration under Rule 144A of the Securities Act of These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $171,478,732, representing 3.0% of net assets. (v) 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. 11

13 (z) Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities: Restricted Securities Acquisition Date Cost Value Bayview Financial Revolving Mortgage Loan Trust, FRN, 1.81%, /01/06 $6,745,033 $4,263,755 Nordea Bank AB, 4.875%, /11/11 3,575,615 4,164,795 Russian Federation, 3.625%, /22/10 11,969,261 12,678,000 Spirit Master Funding LLC, 5.05%, /04/05 6,479,987 6,183,371 System Energy Resources, Inc., 5.129%, /16/04 1,483,497 1,503,003 Total Restricted Securities $28,792,924 % of Net assets 0.5% The following abbreviations are used in this report and are defined: ADR American Depositary Receipt CDO Collateralized Debt Obligation FRN Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end. PLC Public Limited Company REIT Real Estate Investment Trust TBA To Be Announced See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report. 12

14 Supplemental Information 12/31/12 (unaudited) (1) Investment Valuations Equity securities, including restricted equity securities, are generally valued at the last sale or official closing price as provided by a third-party pricing service on the market or exchange on which they are primarily traded. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation as provided by a third-party pricing service on the market or exchange on which such securities are primarily traded. Debt instruments and floating rate loans (other than short-term instruments), including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less generally are 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. 13

15 Supplemental Information (unaudited) continued The following is a summary of the levels used as of December 31, 2012 in valuing the fund s assets or liabilities: Investments at Value Level 1 Level 2 Level 3 Total Equity Securities: United States $3,275,573,496 $ $ $3,275,573,496 United Kingdom 4,678, ,102, ,781,026 Switzerland 47,413,685 10,104,959 57,518,644 France 30,195,917 30,195,917 Germany 10,335,620 10,335,620 Israel 8,671,909 8,671,909 Canada 8,631,388 8,631,388 U.S. Treasury Bonds & U.S. Government Agency & Equivalents 786,803, ,803,618 Non-U.S. Sovereign Debt 94,442,644 94,442,644 U.S. Corporate Bonds 376,952, ,952,648 Residential Mortgage-Backed Securities 688,572, ,572,286 Commercial Mortgage-Backed Securities 80,408,009 80,408,009 Asset-Backed Securities (including CDOs) 8,160,408 8,160,408 Foreign Bonds 159,176, ,176,280 Mutual Funds 141,908, ,908,556 Total Investments $3,486,877,438 $2,352,255,011 $ $5,839,132,449 For further information regarding security characteristics, see the Portfolio of Investments. Of the level 2 investments presented above, equity investments amounting to $157,739,118 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 at fair value. 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 $5,129,511,517 Gross unrealized appreciation 795,712,632 Gross unrealized depreciation (86,091,700) Net unrealized appreciation (depreciation) $709,620,932 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 119,222, ,047,535 (142,361,899) 141,908,556 Underlying Affiliated Fund Realized Gain (Loss) Capital Gain Distributions Dividend Income Ending Value MFS Institutional Money Market Portfolio $ $ $53,806 $141,908,556 14