MFS INTERNATIONAL GROWTH FUND

Transcription

1 QUARTERLY REPORT August 31, 2017 MFS INTERNATIONAL GROWTH 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. Common Stocks 98.7% Aerospace 1.0% Rolls-Royce Holdings PLC 4,363,592 $ 51,573,032 Alcoholic Beverages 5.2% AmBev S.A., ADR 4,493,328 $ 28,128,233 Carlsberg A.S., B 169,052 19,401,872 Diageo PLC 2,918,087 97,806,016 Pernod Ricard S.A. (l) 886, ,098,285 $ 266,434,406 Apparel Manufacturers 5.0% Burberry Group PLC 1,844,917 $ 42,870,371 Kering S.A. 249,981 93,830,144 LVMH Moet Hennessy Louis Vuitton SE 455, ,394,442 $ 256,094,957 Broadcasting 1.7% Publicis Groupe S.A. 559,521 $ 37,766,858 WPP PLC 2,671,796 49,059,597 $ 86,826,455 Business Services 8.4% Accenture PLC, A 960,724 $ 125,624,270 Amadeus IT Holding S.A. 1,398,201 86,669,960 Brenntag AG 765,194 40,549,858 Compass Group PLC 3,120,273 66,655,343 Experian Group Ltd. 2,237,275 44,957,559 Intertek Group PLC 964,505 63,732,025 $ 428,189,015 Computer Software 4.3% Dassault Systems S.A. 565,770 $ 55,733,886 OBIC Co. Ltd. 622,800 39,032,992 SAP AG 1,198, ,749,358 $ 220,516,236 Computer Software - Systems 1.6% NICE Systems Ltd., ADR 1,048,527 $ 82,015,782 Construction 0.8% Toto Ltd. 1,131,900 $ 43,089,112 Consumer Products 4.7% L Oréal 518,529 $ 109,475,176 Reckitt Benckiser Group PLC 1,044,707 99,048,817 Shiseido Co. Ltd. 737,300 30,575,801 $ 239,099,794 Containers 0.5% Brambles Ltd. 3,737,921 $ 27,664,290 Electrical Equipment 5.2% Keyence Corp. 78,700 $ 40,991,149 Legrand S.A. 309,235 21,675,436 Mettler-Toledo International, Inc. (a) 120,534 72,933,918 Prysmian S.p.A. 1,470,596 46,252,755 1

3 Portfolio of Investments (unaudited) continued Common Stocks continued Electrical Equipment continued Schneider Electric S.A. 1,056,561 $ 85,189,694 $ 267,042,952 Electronics 3.6% MediaTek, Inc. 2,509,000 $ 22,488,634 Mellanox Technologies Ltd. (a) 337,550 15,847,973 Taiwan Semiconductor Manufacturing Co. Ltd., ADR 3,856, ,581,460 $ 180,918,067 Energy - Independent 1.1% Caltex Australia Ltd. 1,009,591 $ 26,797,953 Oil Search Ltd. 5,295,946 28,249,176 $ 55,047,129 Energy - Integrated 0.8% Suncor Energy, Inc. 1,313,293 $ 41,152,476 Food & Beverages 5.9% Danone S.A. 1,276,398 $ 100,514,189 Nestle S.A. 2,359, ,123,036 $ 300,637,225 Food & Drug Stores 1.2% Sundrug Co. Ltd. 1,427,400 $ 59,142,284 Gaming & Lodging 0.7% Paddy Power Betfair PLC 401,417 $ 35,374,797 Insurance 2.8% AIA Group Ltd. 18,699,000 $ 143,484,644 Internet 4.5% Alibaba Group Holding Ltd., ADR (a) 792,941 $ 136,179,687 Baidu, Inc., ADR (a) 318,789 72,699,831 NAVER Corp. 31,253 20,925,874 $ 229,805,392 Leisure & Toys 0.3% BANDAI NAMCO Holdings, Inc. 427,100 $ 14,316,310 Machinery & Tools 1.4% GEA Group AG 931,854 $ 41,045,071 Ritchie Bros. Auctioneers, Inc. 1,079,469 32,087,999 $ 73,133,070 Major Banks 2.6% HSBC Holdings PLC 5,864,060 $ 56,909,063 UBS AG 4,578,250 75,432,869 $ 132,341,932 Medical & Health Technology & Services 1.4% Fresenius Medical Care AG & Co. KGaA 740,067 $ 69,159,541 Medical Equipment 3.9% Essilor International S.A. 454,082 $ 57,326,624 QIAGEN N.V. (a) 1,272,161 40,821,863 Sonova Holding AG 196,492 33,214,822 2

4 Portfolio of Investments (unaudited) continued Common Stocks continued Medical Equipment continued Terumo Corp. 1,708,700 $ 66,056,988 $ 197,420,297 Network & Telecom 0.6% LM Ericsson Telephone Co., B 5,312,100 $ 31,134,191 Other Banks & Diversified Financials 7.1% Aeon Credit Service Co. Ltd. 1,597,500 $ 33,872,493 Credicorp Ltd. 248,099 50,324,401 DBS Group Holdings Ltd. 3,363,900 51,154,997 Element Fleet Management Corp. 2,565,315 19,228,307 Grupo Financiero Banorte S.A. de C.V. 5,533,027 37,730,142 Grupo Financiero Inbursa S.A. de C.V. 6,899,160 11,537,670 HDFC Bank Ltd. 4,378, ,753,322 Julius Baer Group Ltd. 669,978 37,448,064 $ 363,049,396 Pharmaceuticals 8.6% Bayer AG 812,354 $ 103,959,742 Novartis AG 1,420, ,837,707 Novo Nordisk A.S., B 876,835 41,825,227 Roche Holding AG 676, ,686,354 $ 437,309,030 Railroad & Shipping 2.7% Adani Ports and Special Economic Zone Ltd. 1,827,682 $ 11,234,628 Canadian National Railway Co. 1,535, ,336,658 $ 135,571,286 Restaurants 1.3% Whitbread PLC 964,784 $ 46,883,411 Yum China Holdings, Inc. (a) 549,962 19,446,656 $ 66,330,067 Specialty Chemicals 6.9% Akzo Nobel N.V. 1,025,667 $ 93,773,259 Croda International PLC 756,013 37,559,427 L Air Liquide S.A. 559,486 68,302,452 Linde AG 363,024 69,599,717 Sika AG 4,527 32,101,361 Symrise AG 699,407 51,122,226 $ 352,458,442 Telecommunications - Wireless 0.9% SoftBank Corp. 586,700 $ 47,614,840 Tobacco 1.7% ITC Ltd. 7,321,903 $ 32,327,989 Japan Tobacco, Inc. 1,579,700 54,086,422 $ 86,414,411 Trucking 0.3% Yamato Holdings Co. Ltd. 742,500 $ 15,831,355 Total Common Stocks $5,036,192,213 3

5 Portfolio of Investments (unaudited) continued Investment Companies (h) 1.2% Money Market Funds 1.2% MFS Institutional Money Market Portfolio, 1.11% (v) 61,270,527 $ 61,270,527 Other Assets, Less Liabilities 0.1% 5,730,324 Net Assets 100.0% $5,103,193,064 (a) (h) (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 $61,270,527 and $5,036,192,213, respectively. 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 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. 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 $5,036,192,213 $ $ $5,036,192,213 Mutual Funds 61,270,527 61,270,527 Total $5,097,462,740 $ $ $5,097,462,740 For further information regarding security characteristics, see the Portfolio of Investments. (2) Securities Lending Collateral At August 31, 2017, the value of securities loaned was $102,645,774. These loans were collateralized by U.S. Treasury obligations of $109,885,411. 5

7 Supplemental Information (unaudited) continued (3) 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 $3,793,154,475 Gross unrealized appreciation 1,396,596,401 Gross unrealized depreciation (92,288,136) Net unrealized appreciation (depreciation) $1,304,308,265 The aggregate cost above includes prior fiscal year end tax adjustments, if applicable. (4) 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 43,619, ,096,794 (140,445,987) 61,270,527 Affiliated Issuer Realized Gain (Loss) Change in Unrealized Appreciation (Depreciation) Capital Gain Distributions Dividend Income MFS Institutional Money Market Portfolio $1,620 $3,640 $ $131,077 $61,270,527 (5) Issuer Country Weightings Issuer country weighting percentages of portfolio holdings based on net assets, as of August 31, 2017, are as follows: France 17.1% Switzerland 13.1% United Kingdom 12.9% Germany 10.6% Japan 8.7% United States 5.4% China 4.5% Canada 4.3% India 3.2% Other Countries 20.2% Ending Value 6