N-CSR 1 f37221d1.htm MFS SERIES TRUST X (EML) NCSR MFS SERIES TRUST X (EML) NCSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-04492

MFS SERIES TRUST X

(Exact name of registrant as specified in charter)

111 Huntington Avenue, Boston, Massachusetts 02199 (Address of principal executive offices) (Zip code)

Christopher R. Bohane

Massachusetts Financial Services Company

111Huntington Avenue Boston, Massachusetts 02199

(Name and address of agents for service)

Registrant's telephone number, including area code: (617) 954-5000

Date of fiscal year end: October 31*

Date of reporting period: October 31, 2023

*This Form N-CSR pertains only to the following series of the Registrant: MFS Emerging Markets Debt Local Currency Fund. Each remaining series of the Registrant has a fiscal year end other than October 31.

ITEM 1. REPORTS TO STOCKHOLDERS.

Item 1(a):


Annual Report
October 31, 2023
MFS®  Emerging Markets Debt Local Currency Fund
EML-ANN
MFS® Emerging Markets Debt Local Currency Fund
CONTENTS
The report is prepared for the general information of shareholders. It is authorized for distribution to prospective investors only when preceded or accompanied by a current prospectus.
NOT FDIC INSURED  •  MAY LOSE VALUE  •  NO BANK GUARANTEE
Portfolio Composition
Portfolio structure at value (v)
Portfolio structure reflecting equivalent exposure of derivative positions (i)
 
Currency exposure (i)(y)
Fixed income sectors (i)
Sovereign Emerging Markets 134.7%
Government Securities Hedge (t) 25.0%
Emerging Markets Corporate Bonds 2.9%
Other Government Entity-Emerging Markets Quasi Government 2.0%
 
1
Portfolio Composition - continued
Issuer country weightings (i)(x)
Mexico 23.5%
Brazil 19.1%
Czech Republic 17.8%
Chile 10.9%
Indonesia 8.1%
Hungary 8.1%
Poland 7.0%
Peru 6.7%
United States (42.7)%
Other Countries 41.5%
Composition including fixed income credit quality (a)(i)
AA 4.8%
A 11.6%
BBB 41.6%
BB 21.7%
B 0.6%
D 0.4%
Not Rated 83.9%
Non-Fixed Income (0.7)%
Cash & Cash Equivalents 6.4%
Other (q) (70.3)%
Currency exposure weightings (i)(y)
Brazilian Real 10.6%
Mexican Peso 10.4%
Thailand Baht 10.0%
Indonesian Rupiah 9.7%
Malaysian Ringgit 8.9%
Polish Zloty 7.6%
South African Rand 7.0%
United States Dollar 6.8%
Czech Koruna 6.4%
Other Currencies 22.6%
Portfolio facts
Average Duration (d) 6.3
Average Effective Maturity (m) 6.4 yrs.
 
(a) For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. Not Rated includes fixed income securities and fixed income derivatives that have not been rated by any rating agency. Non-Fixed Income includes equity securities (including convertible bonds and equity derivatives), ETFs and Options on ETFs, and/or commodity-linked derivatives. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies.
(d) Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. The Average Duration calculation reflects the impact of the equivalent exposure of derivative positions, if any. 
2
Portfolio Composition - continued
(f) The fund invests a portion of its assets in Exchange-Traded Funds (ETFs) or Options on ETFs to gain emerging markets equity exposure. Percentages include the direct exposure from investing in ETFs or Options on ETFs and not the indirect exposure to the underlying holdings.
(i) For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts.
(m) In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening feature (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity.
(o) Less than 0.1%.
(p) For purposes of the presentation of Portfolio structure at value, Other includes market value from currency derivatives and may be negative.
(q) For purposes of this presentation, Other includes equivalent exposure from currency derivatives and/or any  offsets to derivative positions and may be negative.
(t) For the purpose of managing the fund’s duration (but not its credit exposure), the fund holds futures contracts and USD swap agreements with a bond equivalent exposure of 25.0%.
(v) For purposes of this presentation, market value of fixed income and/or equity derivatives, if any, is included in Cash & Cash Equivalents.
(x) Represents the portfolio’s exposure to issuer countries as a percentage of a portfolio’s net assets. For purposes of this presentation, United States includes Cash & Cash Equivalents and Other.
(y) Represents the portfolio’s exposure to a particular currency as a percentage of a portfolio's net assets. For purposes of this presentation, United States Dollar includes Cash & Cash Equivalents.
Where the fund holds convertible bonds, they are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of October 31, 2023.
The portfolio is actively managed and current holdings may be different.
3
Management Review
Summary of Results
For the twelve months ended October 31, 2023, Class A shares of the MFS Emerging Markets Debt Local Currency Fund (fund) provided a total return of 12.26%, at net asset value. This compares with a return of 13.50% for the fund’s benchmark, the JPMorgan Government Bond Index Emerging Markets Global Diversified.
Market Environment
During the reporting period, central banks around the world had to combat the strongest inflationary pressures in four decades, fueled by the global fiscal response to the pandemic, disrupted supply chains and the dislocations to energy markets stemming from the war in Ukraine. Interest rates rose substantially, but the effects of a tighter monetary policy may not have been fully experienced yet, given that monetary policy works with long and variable lags. Strains resulting from the abrupt tightening of monetary policy began to affect some parts of the economy, most acutely among small and regional US banks, which suffered from deposit flight as depositors sought higher yields on their savings. Additionally, activity in the US housing sector has slowed as a result of higher mortgage rates. China’s abandonment of its Zero-COVID policy ushered in a brief uptick in economic activity in the world’s second-largest economy in early 2023, although its momentum soon stalled as the focus turned to the country’s highly indebted property development sector. In developed markets, consumer demand for services remained stronger than the demand for goods.
Policymakers found themselves in the difficult position of trying to restrain inflation without tipping economies into recession. Despite the challenging macroeconomic and geopolitical environment, central banks remained focused on controlling price pressures while also confronting increasing financial stability concerns. Central banks had to juggle achieving their inflation mandates while using macroprudential tools to keep banking systems liquid, a potentially difficult balancing act, and one that suggested that we may be nearing a peak in policy rates.
Against an environment of relatively tight labor markets, tighter global financial conditions and volatile materials prices, investor anxiety appeared to have increased over the potential that corporate profit margins may be past peak for this cycle. That said, signs that supply chains have generally normalized, coupled with low levels of unemployment across developed markets and hopes that inflation levels have peaked, were supportive factors for the macroeconomic backdrop.
Factors Affecting Performance 
Relative to the JPMorgan Government Bond Index Emerging Markets Global Diversified, the fund’s underweight allocation to both the Colombian Peso and Polish Zloty, and its overweight exposure to the Japanese Yen, detracted from performance. The fund’s overweight allocation to Mexican bonds and US Treasury bonds also held back relative performance over the reporting period.
On the positive side, the fund’s overweight allocation to the Mexican Peso and underweight allocation to the Egyptian Pound, Taiwan Dollar and Turkish Lira benefited relative performance. On the rates side, the fund’s overweight exposure to both the Czech Republic and Poland strengthened relative performance.
4
Management Review - continued
Respectfully,
Portfolio Manager(s)
Neeraj Arora, Ward Brown, and Matt Ryan
Note to Shareholders: Effective March 31, 2023, Neeraj Arora was added as Portfolio Manager of the fund. Effective April 30, 2024, Matt Ryan will no longer be a Portfolio Manager of the fund.
The views expressed in this report are those of the portfolio manager(s) only through the end of the period of the report as stated on the cover and do not necessarily reflect the views of MFS or any other person in the MFS organization. These views are subject to change at any time based on market or other conditions, and MFS disclaims any responsibility to update such views. These views may not be relied upon as investment advice or an indication of trading intent on behalf of any MFS portfolio. References to specific securities are not recommendations of such securities, and may not be representative of any MFS portfolio’s current or future investments.
5
Performance Summary THROUGH 10/31/23
The following chart illustrates a representative class of the fund’s historical performance in comparison to its benchmark(s). Performance results include the deduction of the maximum applicable sales charge and reflect the percentage change in net asset value, including reinvestment of dividends and capital gains distributions. The performance of other share classes will be greater than or less than that of the class depicted below. Benchmarks are unmanaged and may not be invested in directly. Benchmark returns do not reflect sales charges, commissions or expenses. (See Notes to Performance Summary.)
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or higher than quoted. The performance shown does not reflect the deduction of taxes, if any, that a shareholder would pay on fund distributions or the redemption of fund shares.
Growth of a Hypothetical $10,000 Investment
6
Performance Summary  - continued
Total Returns through 10/31/23
Average annual without sales charge
Share Class Class Inception Date 1-yr 5-yr 10-yr
A 9/15/2011 12.26% 1.13% (0.88)%
B 9/15/2011 11.41% 0.41% (1.60)%
C 9/15/2011 11.20% 0.38% (1.62)%
I 9/15/2011 12.57% 1.37% (0.67)%
R1 9/15/2011 11.36% 0.49% (1.56)%
R2 9/15/2011 11.96% 0.92% (1.11)%
R3 9/15/2011 12.23% 1.14% (0.84)%
R4 9/15/2011 12.49% 1.40% (0.57)%
R6 12/03/2012 12.41% 1.48% (0.54)%
Comparative benchmark(s)
JPMorgan Government Bond Index Emerging Markets Global Diversified (f) 13.50% 0.29% (1.16)%
Average annual with sales charge
       
A
With Initial Sales Charge (4.25%) 		7.49% 0.26% (1.31)%
B
With CDSC (Declining over six years from 4% to 0%) (v) 		7.41% 0.08% (1.60)%
C
With CDSC (1% for 12 months) (v) 		10.20% 0.38% (1.62)%
CDSC – Contingent Deferred Sales Charge.
Class I, R1, R2, R3, R4, and R6 shares do not have a sales charge.
(f) Source: FactSet Research Systems Inc.
(v) Assuming redemption at the end of the applicable period.
Benchmark Definition(s)
JPMorgan Government Bond Index Emerging Markets Global Diversified – a market capitalization weighted index that is designed to measure the performance of local currency government bonds issued in emerging markets. The index includes only the countries which give access to their capital market to foreign investors; it therefore excludes China, India, and Thailand. Individual country weights in the index are limited to 10% in order for the index to remain fully diversified.
It is not possible to invest directly in an index.
Notes to Performance Summary
Average annual total return represents the average annual change in value for each share class for the periods presented.
7
Performance Summary  - continued
Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers the fund's performance results would be less favorable. Please see the prospectus and financial statements for complete details.
Performance results do not include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles and may differ from amounts reported in the financial highlights.
From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower.
8
Expense Table
Fund expenses borne by the shareholders during the period,
May 1, 2023 through October 31, 2023
As a shareholder of the fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchase or redemption payments, and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period May 1, 2023 through October 31, 2023.
Actual Expenses
The first line for each share class in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the following table provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
9
Expense Table - continued
Share
Class 		  Annualized
Expense
Ratio 		Beginning
Account Value
5/01/23 		Ending
Account Value
10/31/23 		Expenses
Paid During
Period (p)
5/01/23-10/31/23
A Actual 1.12% $1,000.00 $961.27 $5.54
Hypothetical (h) 1.12% $1,000.00 $1,019.56 $5.70
B Actual 1.87% $1,000.00 $959.43 $9.24
Hypothetical (h) 1.87% $1,000.00 $1,015.78 $9.50
C Actual 1.87% $1,000.00 $957.63 $9.23
Hypothetical (h) 1.87% $1,000.00 $1,015.78 $9.50
I Actual 0.87% $1,000.00 $963.97 $4.31
Hypothetical (h) 0.87% $1,000.00 $1,020.82 $4.43
R1 Actual 1.87% $1,000.00 $959.75 $9.24
Hypothetical (h) 1.87% $1,000.00 $1,015.78 $9.50
R2 Actual 1.37% $1,000.00 $961.85 $6.77
Hypothetical (h) 1.37% $1,000.00 $1,018.30 $6.97
R3 Actual 1.12% $1,000.00 $963.19 $5.54
Hypothetical (h) 1.12% $1,000.00 $1,019.56 $5.70
R4 Actual 0.87% $1,000.00 $964.51 $4.31
Hypothetical (h) 0.87% $1,000.00 $1,020.82 $4.43
R6 Actual 0.77% $1,000.00 $962.95 $3.81
Hypothetical (h) 0.77% $1,000.00 $1,021.32 $3.92
(h) 5% class return per year before expenses.
(p) “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).  Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher.
Notes to Expense Table
Expense ratios include 0.02% of interest expense on uncovered collateral or margin obligations with the broker (See Note 2 of the Notes to Financial Statements) that are outside of the expense limitation arrangement (See Note 3 of the Notes to Financial Statements).
10
Portfolio of Investments
10/31/23
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Issuer     Shares/Par Value ($)
Bonds – 91.8%
Brazil – 11.8%
Aegea Finance S.à r.l., 9%, 1/20/2031 (n)   $ 715,000 $713,213
Federative Republic of Brazil, 0%, 1/01/2026   BRL 154,227,000 24,336,404
Federative Republic of Brazil, 10%, 1/01/2027     163,884,000 31,435,953
        $56,485,570
Chile – 5.2%
AES Gener S.A., 6.35% to 4/07/2025, FLR (CMT - 5yr. + 4.917%) to 4/07/2030, FLR (CMT - 5yr. + 5.167%) to 4/07/2045, FLR (CMT - 5yr. + 5.917%) to 10/07/2079 (n)   $ 936,000 $865,051
Republic of Chile, 2.5%, 3/01/2025   CLP 8,500,000,000 8,950,709
Republic of Chile, 5%, 10/01/2028 (n)     8,795,000,000 9,195,259
Republic of Chile, 4.7%, 9/01/2030     3,670,000,000 3,654,295
Republic of Chile, Inflation Linked Bond, 3.4%, 10/01/2039     2,050,843,215 2,281,775
        $24,947,089
China – 4.8%
China Development Bank, 3.45%, 9/20/2029   CNY 39,970,000 $5,660,782
People's Republic of China, 2.75%, 2/17/2032     24,780,000 3,401,368
People's Republic of China, 2.88%, 2/25/2033     101,940,000 14,183,791
        $23,245,941
Colombia – 6.3%
Empresas Publicas de Medellin E.S.P., 8.375%, 11/08/2027 (n)   COP 4,009,000,000 $789,041
Republic of Colombia, 7.5%, 8/26/2026     21,450,800,000 4,795,060
Republic of Colombia, 5.75%, 11/03/2027     91,004,300,000 18,502,155
Republic of Colombia, “B”, 7.75%, 9/18/2030     30,868,000,000 6,283,375
        $30,369,631
Czech Republic – 5.0%
Czech Republic, 2.4%, 9/17/2025   CZK 58,200,000 $2,400,341
Czech Republic, 2.5%, 8/25/2028     311,370,000 12,259,812
Czech Republic, 2%, 10/13/2033     244,710,000 8,333,220
PPF Telecom Group B.V., 3.25%, 9/29/2027   EUR 900,000 879,678
        $23,873,051
Dominican Republic – 1.2%
Dominican Republic, 13.625%, 2/03/2033 (n)   DOP 159,700,000 $3,228,712
Dominican Republic, 11.25%, 9/15/2035 (n)     160,250,000 2,779,415
        $6,008,127
11
Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
Guatemala – 0.2%
Central America Bottling Co., 5.25%, 4/27/2029 (n)   $ 1,245,000 $1,095,600
Hungary – 5.0%
Republic of Hungary, 5.5%, 6/24/2025   HUF 850,600,000 $2,263,726
Republic of Hungary, 4.5%, 3/23/2028     4,289,600,000 10,556,146
Republic of Hungary, 2.25%, 4/20/2033     3,199,470,000 5,911,211
Republic of Hungary, 2.25%, 6/22/2034     2,904,370,000 5,120,919
        $23,852,002
India – 0.4%
Shriram Transport Finance Co. Ltd., 4.4%, 3/13/2024 (n)   $ 1,720,000 $1,696,608
Indonesia – 8.0%
Republic of Indonesia, 6.375%, 8/15/2028   IDR 249,401,000,000 $15,261,112
Republic of Indonesia, 9%, 3/15/2029     36,969,000,000 2,509,936
Republic of Indonesia, 7%, 9/15/2030     123,476,000,000 7,698,264
Republic of Indonesia, 6.375%, 4/15/2032     58,369,000,000 3,505,226
Republic of Indonesia, 7.5%, 8/15/2032     103,331,000,000 6,581,375
Republic of Indonesia, 8.375%, 4/15/2039     38,705,000,000 2,670,243
Republic of Indonesia, 7.125%, 6/15/2043     6,000,000,000 375,584
        $38,601,740
Jamaica – 0.3%
Government of Jamaica, 9.625%, 11/03/2030   JMD 190,000,000 $1,216,199
Malaysia – 4.0%
Government of Malaysia, 3.733%, 6/15/2028   MYR 9,985,000 $2,076,917
Government of Malaysia, 4.232%, 6/30/2031     28,665,000 6,052,125
Government of Malaysia, 3.582%, 7/15/2032     25,387,000 5,103,797
Government of Malaysia, 3.757%, 5/22/2040     10,520,000 2,026,069
Government of Malaysia, 4.065%, 6/15/2050     20,945,000 4,050,228
        $19,309,136
Mexico – 10.5%
Electricidad Firme de Mexico, 4.9%, 11/20/2026 (n)   $ 1,096,000 $949,410
Grupo Axo S.A.P.I. de C.V., 5.75%, 6/08/2026 (n)     764,000 667,201
Petroleos Mexicanos, 7.47%, 11/12/2026   MXN 10,559,900 496,214
Red de Carreteras de Occidente SAPIB de C.V., 9%, 6/10/2028 (n)     10,311,000 530,305
United Mexican States, 10%, 12/05/2024     23,970,000 1,311,337
United Mexican States, 5%, 3/06/2025     314,300,000 16,155,358
United Mexican States, 5.75%, 3/05/2026     79,400,000 3,957,493
United Mexican States, 8.5%, 5/31/2029     39,700,000 2,045,885
United Mexican States, 7.75%, 5/29/2031     166,500,000 8,041,851
United Mexican States, 7.5%, 5/26/2033     86,400,000 4,004,860
12
Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
Mexico – continued
United Mexican States, 7.75%, 11/23/2034   MXN 265,300,000 $12,374,584
        $50,534,498
Peru – 6.6%
Banco de Credito del Peru, 4.65%, 9/17/2024 (n)   PEN 10,403,000 $2,606,437
Hunt Oil Co. of Peru LLC, 8.55%, 9/18/2033 (n)   $ 966,000 968,598
Peru LNG, 5.375%, 3/22/2030     1,360,000 1,041,821
Republic of Peru, 6.95%, 8/12/2031   PEN 84,369,000 21,394,687
Republic of Peru, 7.3%, 8/12/2033     18,864,000 4,808,072
San Miguel Industrias PET S.A., 3.5%, 8/02/2028 (n)   $ 945,000 769,830
        $31,589,445
Philippines – 0.5%
Republic of Philippines, 6.875%, 1/10/2029   PHP 140,000,000 $2,459,101
Poland – 5.0%
Can-Pack S.A./Eastern PA Land Investment Holding LLC, 3.875%, 11/15/2029 (n)   $ 1,113,000 $873,705
Republic of Poland, 0%, 10/25/2025   PLN 61,603,000 13,230,488
Republic of Poland, 2.75%, 4/25/2028     13,830,000 2,966,303
Republic of Poland, 1.25%, 10/25/2030     18,037,000 3,273,968
Republic of Poland, 1.75%, 4/25/2032     17,069,000 3,018,081
Synthos S.A., 2.5%, 6/07/2028 (n)   EUR 921,000 749,437
        $24,111,982
Romania – 4.9%
Republic of Romania, 4.75%, 2/24/2025   RON 85,935,000 $17,986,054
Republic of Romania, 4.25%, 4/28/2036     33,230,000 5,398,899
        $23,384,953
South Africa – 6.1%
Eskom Holdings SOC Ltd. (Republic of South Africa), 7.85%, 4/02/2026   ZAR 36,000,000 $1,834,427
Republic of South Africa, 8%, 1/31/2030     75,412,000 3,558,071
Republic of South Africa, 7%, 2/28/2031     82,744,000 3,510,432
Republic of South Africa, 8.875%, 2/28/2035     132,644,000 5,654,495
Republic of South Africa, 9%, 1/31/2040     353,571,000 14,061,265
Transnet SOC Ltd. (Republic of South Africa), 13.5%, 4/18/2028     14,800,000 804,977
        $29,423,667
13
Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
Sri Lanka – 0.3%
Republic of Sri Lanka, 6.75%, 4/18/2028 (a)(d)   $ 2,408,000 $1,196,448
Republic of Sri Lanka, 7.85%, 3/14/2029 (a)(d)(n)     972,000 482,951
        $1,679,399
Thailand – 3.8%
Kingdom of Thailand, 3.775%, 6/25/2032   THB 423,892,000 $12,288,225
Kingdom of Thailand, 1.6%, 6/17/2035     90,242,000 2,071,866
Kingdom of Thailand, 3.3%, 6/17/2038     84,884,000 2,272,801
Kingdom of Thailand, 2%, 6/17/2042     84,959,000 1,832,936
        $18,465,828
Uruguay – 1.9%
Oriental Republic of Uruguay, 8.5%, 3/15/2028   UYU 249,281,000 $5,919,515
Oriental Republic of Uruguay, 8.25%, 5/21/2031     67,477,000 1,533,892
Oriental Republic of Uruguay, 9.75%, 7/20/2033     64,341,000 1,594,591
        $9,047,998
Total Bonds (Identified Cost, $469,164,528)   $441,397,565
    
Underlying/Expiration Date/Exercise Price Put/Call Counterparty Notional
Amount 		Par Amount/
Number of
Contracts 		 
Purchased Options – 0.1%  
Equity ETFs – 0.1%  
iShares MSCI Emerging Markets ETF – June 2024 @ $37 Put Goldman Sachs International $5,505,000 1,500 $325,500
iShares MSCI Emerging Markets ETF – September 2024 @ $34 Put Goldman Sachs International 3,413,100 930 144,150
(Premiums Paid, $332,745)         $469,650
    
Issuer     Shares/Par  
Investment Companies (h) – 5.2%
Money Market Funds – 5.2%  
MFS Institutional Money Market Portfolio, 5.43% (v) (Identified Cost, $24,850,837)     24,851,577 $24,854,062
Other Assets, Less Liabilities – 2.9%   13,743,026
Net Assets – 100.0%   $480,464,303
    
(a) Non-income producing security.
(d) In default.
(h) An affiliated issuer, which 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 $24,854,062 and $441,867,215, respectively.
14
Portfolio of Investments – continued
(n) Securities exempt from registration under Rule 144A of the Securities Act of 1933. 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 $28,960,773, representing 6.0% of net assets.
(v) 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:
BUBOR Budapest Interbank Offered Rate
BZDIOVRA Brazil Interbank Deposit Rate
CLOIS Sinacofi Chile Interbank Rate Average
CMT Constant Maturity Treasury
ETF Exchange-Traded Fund
FLR Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted.
KLIBOR Kuala Lumpur Interbank Offered Rate
PRIBOR Prague Interbank Offered Rate
SOFR Secured Overnight Financing Rate
THBFIX Thai Baht Floating Rate Fixed
TIIE Interbank Equilibrium Interest Rate
USA-CPI-U Consumer Price Index - Urban Consumers
WIBOR Warsaw Interbank Offered Rate
    
Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below:
AUD Australian Dollar
BRL Brazilian Real
CAD Canadian Dollar
CLP Chilean Peso
CNH Chinese Yuan Renminbi (Offshore)
CNY China Yuan Renminbi
COP Colombian Peso
CZK Czech Koruna
EUR Euro
HUF Hungarian Forint
IDR Indonesian Rupiah
JPY Japanese Yen
KRW South Korean Won
MXN Mexican Peso
MYR Malaysian Ringgit
PEN Peruvian Nuevo Sol
PHP Philippine Peso
PLN Polish Zloty
RON Romanian New Leu
SGD Singapore Dollar
THB Thai Baht
TRY Turkish Lira
TWD Taiwan Dollar
UYU Uruguayan Peso
ZAR South African Rand
15
Portfolio of Investments – continued
Derivative Contracts at 10/31/23
Forward Foreign Currency Exchange Contracts
Currency
Purchased 		Currency
Sold 		Counterparty Settlement
Date 		Unrealized
Appreciation
(Depreciation)
Asset Derivatives
CLP 669,225,397 USD 733,261 Deutsche Bank AG 1/16/2024 $11,087
CZK 175,405,459 USD 7,502,343 HSBC Bank 1/19/2024 41,234
CZK 11,287,597 USD 481,327 State Street Bank Corp. 1/19/2024 4,113
HUF 1,047,097,132 USD 2,412,110 Morgan Stanley Capital Services, Inc. 11/21/2023 475,826
MXN 55,155,455 USD 2,994,195 Barclays Bank PLC 1/19/2024 26,102
PEN 36,812,928 USD 9,518,534 Merrill Lynch International 11/03/2023 64,174
PHP 69,040,000 USD 1,215,065 Barclays Bank PLC 11/08/2023 1,689
PLN 4,824,342 USD 1,119,668 Citibank N.A. 1/19/2024 22,756
SGD 3,447,420 USD 2,524,229 State Street Bank Corp. 1/19/2024 2,538
THB 20,341,285 USD 564,487 Barclays Bank PLC 1/16/2024 2,176
THB 84,875,759 USD 2,354,299 JPMorgan Chase Bank N.A. 1/16/2024 10,151
THB 17,413,865 USD 480,727 JPMorgan Chase Bank N.A. 11/13/2023 4,207
TRY 203,831,491 USD 6,635,972 BNP Paribas S.A. 1/19/2024 111,632
TRY 39,428,894 USD 1,282,862 State Street Bank Corp. 1/19/2024 22,386
TRY 9,473,057 USD 320,704 UBS AG 12/14/2023 2,736
TWD 11,190,760 USD 345,021 BNP Paribas S.A. 11/02/2023 0
TWD 565,087,570 USD 17,422,154 Citibank N.A. 11/02/2023 0
TWD 10,383,980 USD 320,147 Morgan Stanley Capital Services, Inc. 11/02/2023 0
ZAR 66,231,029 USD 3,490,455 Deutsche Bank AG 1/19/2024 39,064
USD 395,488 BRL 1,984,557 Barclays Bank PLC 11/30/2023 3,175
USD 3,133,978 BRL 15,451,231 Barclays Bank PLC 12/04/2023 80,888
USD 616,922 BRL 3,060,459 Goldman Sachs International 12/04/2023 12,190
USD 785,987 BRL 3,965,925 JPMorgan Chase Bank N.A. 11/30/2023 1,993
USD 13,416,792 CAD 18,283,667 State Street Bank Corp. 1/19/2024 213,560
USD 471,520 HUF 171,927,576 State Street Bank Corp. 1/19/2024 968
USD 571,638 IDR 8,782,281,946 BNP Paribas S.A. 11/09/2023 18,801
USD 841,550 IDR 13,038,808,105 JPMorgan Chase Bank N.A. 11/09/2023 20,769
USD 1,245,476 IDR 18,991,268,886 Morgan Stanley Capital Services, Inc. 11/09/2023 49,993
USD 1,217,861 KRW 1,621,033,368 Citibank N.A. 11/09/2023 17,184
USD 2,416,838 KRW 3,229,963,686 JPMorgan Chase Bank N.A. 11/09/2023 24,449
USD 2,472,641 KRW 3,281,534,249 Morgan Stanley Capital Services, Inc. 11/09/2023 42,055
USD 1,255,394 MYR 5,850,764 Barclays Bank PLC 12/18/2023 23,610
USD 550,530 PEN 2,112,000 Barclays Bank PLC 11/03/2023 759
USD 10,631,250 PEN 38,924,928 Goldman Sachs International 11/03/2023 498,771
USD 9,595,946 PEN 36,812,928 Merrill Lynch International 11/03/2023 13,239
USD 619,324 RON 2,902,951 Deutsche Bank AG 1/19/2024 1,408
USD 17,409,499 TWD 564,677,115 Barclays Bank PLC 11/02/2023 0
USD 345,615 TWD 11,190,760 BNP Paribas S.A. 11/02/2023 593
16
Portfolio of Investments – continued
Forward Foreign Currency Exchange Contracts - continued
Currency
Purchased 		Currency
Sold 		Counterparty Settlement
Date 		Unrealized
Appreciation
(Depreciation)
Asset Derivatives - continued
USD 18,106,384 TWD 565,087,570 Citibank N.A. 11/02/2023 $684,230
USD 1,004,222 TWD 32,369,175 Morgan Stanley Capital Services, Inc. 11/02/2023 6,252
            $2,556,758
Liability Derivatives
CNH 11,555,464 USD 1,586,160 Deutsche Bank AG 1/19/2024 $(3,641)
CNH 67,530,523 USD 9,257,634 Goldman Sachs International 1/19/2024 (9,337)
EUR 3,944,136 USD 4,194,411 Morgan Stanley Capital Services, Inc. 1/19/2024 (5,474)
IDR 133,416,393,225 USD 8,816,019 Citibank N.A. 11/09/2023 (417,577)
IDR 8,314,670,040 USD 539,879 Goldman Sachs International 11/09/2023 (16,477)
IDR 15,817,426,805 USD 1,006,607 Morgan Stanley Capital Services, Inc. 11/09/2023 (10,915)
JPY 1,093,794,743 USD 7,420,415 State Street Bank Corp. 1/19/2024 (109,595)
MYR 116,246,836 USD 24,954,724 Barclays Bank PLC 12/18/2023 (480,817)
PEN 2,112,000 USD 569,173 Barclays Bank PLC 11/03/2023 (19,402)
PEN 38,924,928 USD 10,146,477 Goldman Sachs International 11/03/2023 (13,999)
PLN 53,980,936 USD 12,862,523 HSBC Bank 1/19/2024 (79,612)
THB 950,448,678 USD 26,818,529 JPMorgan Chase Bank N.A. 11/13/2023 (350,795)
TWD 564,677,115 USD 17,423,049 Barclays Bank PLC 11/02/2023 (13,549)
TWD 21,985,195 USD 687,052 Morgan Stanley Capital Services, Inc. 11/02/2023 (9,229)
USD 13,327,543 AUD 20,988,545 State Street Bank Corp. 1/19/2024 (21,023)
USD 642,268 BRL 3,328,487 Citibank N.A. 11/30/2023 (15,716)
USD 2,135,967 CLP 2,026,499,061 Barclays Bank PLC 1/16/2024 (118,012)
USD 12,596,072 CLP 11,825,822,411 Goldman Sachs International 1/16/2024 (557,234)
USD 9,150,304 COP 39,389,769,215 Citibank N.A. 1/17/2024 (254,002)
USD 1,096,560 EUR 1,034,421 Brown Brothers Harriman 1/19/2024 (2,064)
USD 1,209,781 EUR 1,141,715 State Street Bank Corp. 1/19/2024 (2,797)
USD 6,460,036 HUF 2,380,642,869 State Street Bank Corp. 1/19/2024 (55,596)
USD 1,178,159 HUF 432,796,645 UBS AG 1/19/2024 (6,371)
USD 1,083,594 KRW 1,473,558,093 Morgan Stanley Capital Services, Inc. 11/09/2023 (7,849)
USD 1,182,109 MXN 21,775,445 Morgan Stanley Capital Services, Inc. 1/19/2024 (10,308)
USD 559,688 MXN 10,273,881 State Street Bank Corp. 1/19/2024 (2,907)
USD 9,475,413 PEN 36,812,929 Merrill Lynch International 2/29/2024 (67,795)
USD 3,532,525 PHP 200,940,608 Barclays Bank PLC 11/08/2023 (8,832)
USD 7,679,570 RON 36,111,801 HSBC Bank 1/19/2024 (7,118)
17
Portfolio of Investments – continued
Forward Foreign Currency Exchange Contracts - continued
Currency
Purchased 		Currency
Sold 		Counterparty Settlement
Date 		Unrealized
Appreciation
(Depreciation)
Liability Derivatives - continued
USD 16,868,871 TWD 543,751,172 Barclays Bank PLC 1/30/2024 $(81,985)
            $(2,760,028)
    
Futures Contracts
Description Long/
Short 		Currency Contracts Notional
Amount 		Expiration
Date 		Value/Unrealized
Appreciation
(Depreciation)
Liability Derivatives
Interest Rate Futures    
Euro-Bobl 5 yr Long EUR 122 $15,011,671 December – 2023 $(22,866)
U.S. Treasury Note 2 yr Long USD 266 53,844,219 December – 2023 (147,591)
U.S. Treasury Note 5 yr Long USD 419 43,775,680 December – 2023 (680,169)
            $(850,626)
18
Portfolio of Investments – continued
Cleared Swap Agreements
Maturity
Date 		Notional
Amount 		Counterparty Cash Flows
to Receive/
Frequency 		Cash Flows
to Pay/
Frequency 		Unrealized
Appreciation
(Depreciation) 		  Net Unamortized
Upfront Payments
(Receipts) 		  Value
Asset Derivatives          
Interest Rate Swaps          
1/02/26 BRL 84,992,000 centrally cleared 12.195% / At Maturity Daily BZDIOVRA / At Maturity $204,921   $—   $204,921
3/13/25 CLP 5,267,142,000 centrally cleared 8.23% / Semi-annually Daily CLOIS / Semi-annually 54,205   —   54,205
4/28/33 CLP 3,953,502,000 centrally cleared Daily CLOIS / Semi-annually 5.17% / Semi-annually 264,511   —   264,511
12/20/25 CZK 154,770,000 centrally cleared 5.03% / Annually PRIBOR / Semi-annually 37,050   (3,360)   33,690
12/20/28 CZK 55,000,000 centrally cleared 4.46% / Annually PRIBOR / Semi-annually 10,524   (291)   10,233
12/20/28 CZK 60,000,000 centrally cleared 4.54% / Annually PRIBOR / Semi-annually 19,767   733   20,500
4/13/32 USD 2,916,000 centrally cleared 3.116% / At Maturity USA-CPI-U / At Maturity 16,346   —   16,346
            $607,324   $(2,918)   $604,406
Liability Derivatives          
Interest Rate Swaps          
1/02/26 BRL 39,635,000 centrally cleared 10.08% / At Maturity Daily BZDIOVRA / At Maturity $(176,810)   $—   $(176,810)
1/02/26 BRL 25,000,000 centrally cleared 10.045% / At Maturity Daily BZDIOVRA / At Maturity (109,476)   —   (109,476)
1/02/26 BRL 15,000,000 centrally cleared 9.9325% / At Maturity Daily BZDIOVRA / At Maturity (70,627)   —   (70,627)
1/02/26 BRL 48,270,000 centrally cleared 9.9975% / At Maturity Daily BZDIOVRA / At Maturity (193,492)   —   (193,492)
1/02/29 BRL 22,600,000 centrally cleared 11.18% / At Maturity Daily BZDIOVRA / At Maturity (39,626)   —   (39,626)
8/02/25 CLP 5,375,000,000 centrally cleared 5.79% / Semi-annually Daily CLOIS / Semi-annually (184,685)   —   (184,685)
19
Portfolio of Investments – continued
Cleared Swap Agreements - continued
Maturity
Date 		Notional
Amount 		Counterparty Cash Flows
to Receive/
Frequency 		Cash Flows
to Pay/
Frequency 		Unrealized
Appreciation
(Depreciation) 		  Net Unamortized
Upfront Payments
(Receipts) 		  Value
Liability Derivatives - continued
Interest Rate Swaps - continued
9/20/25 CLP 5,254,000,000 centrally cleared 5.44% / Semi-annually Daily CLOIS / Semi-annually $(180,209)   $—   $(180,209)
9/20/25 CLP 4,375,000,000 centrally cleared 5.61% / Semi-annually Daily CLOIS / Semi-annually (134,488)   —   (134,488)
9/20/25 CLP 10,622,029,000 centrally cleared 6.14% / Semi-annually Daily CLOIS / Semi-annually (208,653)   —   (208,653)
10/23/33 CLP 2,251,371,000 centrally cleared Daily CLOIS / Semi-annually 6.1% / Semi-annually (14,092)   —   (14,092)
12/20/25 CZK 909,650,000 centrally cleared 4.64% / Annually PRIBOR / Semi-annually (84,831)   (7,561)   (92,392)
12/20/28 CZK 252,429,000 centrally cleared 4.03% / Annually PRIBOR / Semi-annually (161,566)   (2,603)   (164,169)
12/20/25 HUF 5,233,000,000 centrally cleared 7.765% / Annually BUBOR / Semi-annually (116,949)   —   (116,949)
3/28/25 MXN 36,098,000 centrally cleared 6.24% / 28 Days 28 day TIIE / 28 days (133,157)   —   (133,157)
4/09/25 MXN 144,884,000 centrally cleared 6.27% / 28 Days 28 day TIIE / 28 days (525,397)   —   (525,397)
4/11/25 MXN 73,866,000 centrally cleared 5.98% / 28 Days 28 day TIIE / 28 days (283,532)   —   (283,532)
12/20/25 MXN 870,179,000 centrally cleared 9.83% / 28 Days 28 day TIIE / 28 days (566,300)   (13,499)   (579,799)
12/20/28 PLN 42,008,000 centrally cleared 4.2% / Annually WIBOR / Semi-annually (192,115)   (4,087)   (196,202)
7/27/32 THB 200,000,000 centrally cleared 2.47% / Quarterly 6-Month THBFIX / Quarterly (299,948)   —   (299,948)
4/28/33 USD 4,867,000 centrally cleared 3.149% / Annually Daily SOFR / Annually (539,933)   —   (539,933)
            $(4,215,886)   $(27,750)   $(4,243,636)
    
20
Portfolio of Investments – continued
Uncleared Swap Agreements
Maturity
Date 		Notional
Amount 		Counterparty Cash Flows
to Receive/
Frequency 		Cash Flows
to Pay/
Frequency 		Unrealized
Appreciation
(Depreciation) 		  Net Unamortized
Upfront Payments
(Receipts) 		  Value
Liability Derivatives          
Interest Rate Swaps          
7/07/27 MYR 36,564,000 JPMorgan Chase Bank N.A. 3.65%/Quarterly 3-Month KLIBOR /Quarterly $(60,465)   $—   $(60,465)
At October 31, 2023, the fund had cash collateral of $6,862,875 to cover any collateral or margin obligations for certain derivative contracts.  Restricted cash and/or deposits with brokers in the Statement of Assets and Liabilities are comprised of cash collateral.
See Notes to Financial Statements
21
Financial Statements
Statement of Assets and Liabilities
At 10/31/23
This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.
Assets  
Investments in unaffiliated issuers, at value (identified cost, $469,497,273) $441,867,215
Investments in affiliated issuers, at value (identified cost, $24,850,837) 24,854,062
Cash 237,467
Restricted cash for  
Forward foreign currency exchange contracts 1,180,000
Deposits with brokers for  
Cleared swaps 4,620,137
Futures contracts 1,062,738
Receivables for  
Net daily variation margin on open cleared swap agreements 86,619
Forward foreign currency exchange contracts 2,556,758
Investments sold 1,209,435
Fund shares sold 804,494
Interest 8,099,669
Receivable from investment adviser 44,446
Other assets 549
Total assets $486,623,589
Liabilities  
Payables for  
Distributions $26,934
Forward foreign currency exchange contracts 2,760,028
Net daily variation margin on open futures contracts 51,135
Investments purchased 1,217,107
Fund shares reacquired 1,608,586
Uncleared swaps, at value 60,465
Payable to affiliates  
Administrative services fee 431
Shareholder servicing costs 40,887
Distribution and service fees 139
Payable for independent Trustees' compensation 14
Deferred foreign capital gains tax expense payable 148,348
Accrued expenses and other liabilities 245,212
Total liabilities $6,159,286
Net assets $480,464,303
22
Statement of Assets and Liabilities – continued
Net assets consist of  
Paid-in capital $572,171,366
Total distributable earnings (loss) (91,707,063)
Net assets $480,464,303
Shares of beneficial interest outstanding 91,052,253
    
  Net assets Shares
outstanding 		Net asset value
per share (a)
Class A $5,796,126 1,098,018 $5.28
Class B 67,420 12,757 5.28
Class C 901,520 170,698 5.28
Class I 100,571,065 19,133,079 5.26
Class R1 66,104 12,436 5.32
Class R2 55,522 10,506 5.28
Class R3 165,868 31,314 5.30
Class R4 126,068 23,748 5.31
Class R6 372,714,610 70,559,697 5.28
    
(a) Maximum offering price per share was equal to the net asset value per share for all share classes, except for Class A, for which the maximum offering price per share was $5.51 [100 / 95.75 x $5.28]. On sales of $100,000 or more, the maximum offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A, Class B, and Class C shares. Redemption price per share was equal to the net asset value per share for Classes I, R1, R2, R3, R4, and R6.
See Notes to Financial Statements
23
Financial Statements
Statement of Operations
Year ended 10/31/23
This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.
Net investment income (loss)  
Income  
Interest $31,194,273
Dividends from affiliated issuers 2,042,512
Other 2,732
Foreign taxes withheld (336,214)
Total investment income $32,903,303
Expenses  
Management fee $3,616,402
Distribution and service fees 23,056
Shareholder servicing costs 120,398
Administrative services fee 80,213
Independent Trustees' compensation 10,071
Custodian fee 224,921
Shareholder communications 19,677
Audit and tax fees 91,511
Legal fees 2,430
Miscellaneous 255,665
Total expenses $4,444,344
Reduction of expenses by investment adviser (649,279)
Net expenses $3,795,065
Net investment income (loss) $29,108,238
24
Statement of Operations – continued
Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)  
Unaffiliated issuers (net of $41,803 foreign capital gains tax) $(8,206,611)
Affiliated issuers 7,122
Futures contracts (3,583,070)
Swap agreements (2,221,245)
Forward foreign currency exchange contracts (933,351)
Foreign currency 114,373
Net realized gain (loss) $(14,822,782)
Change in unrealized appreciation or depreciation  
Unaffiliated issuers (net of $31,805 increase in deferred foreign capital gains tax) $38,500,573
Affiliated issuers (595)
Futures contracts 142,772
Swap agreements (1,384,610)
Forward foreign currency exchange contracts 964,679
Translation of assets and liabilities in foreign currencies 254,265
Net unrealized gain (loss) $38,477,084
Net realized and unrealized gain (loss) $23,654,302
Change in net assets from operations $52,762,540
See Notes to Financial Statements
25
Financial Statements
Statements of Changes in Net Assets
These statements describe the increases and/or decreases in net assets resulting from operations, any distributions, and any shareholder transactions.
  Year ended
  10/31/23 10/31/22
Change in net assets    
From operations    
Net investment income (loss) $29,108,238 $21,513,312
Net realized gain (loss) (14,822,782) (46,810,964)
Net unrealized gain (loss) 38,477,084 (56,129,840)
Change in net assets from operations $52,762,540 $(81,427,492)
Distributions to shareholders $(21,411,123) $(8,055,668)
Tax return of capital distributions to shareholders $— $(13,366,391)
Change in net assets from fund share transactions $29,363,215 $74,597,679
Total change in net assets $60,714,632 $(28,251,872)
Net assets    
At beginning of period 419,749,671 448,001,543
At end of period $480,464,303 $419,749,671
See Notes to Financial Statements
26
Financial Statements
Financial Highlights
The financial highlights table is intended to help you understand the fund's financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Class A  Year ended
  10/31/23 10/31/22 10/31/21 10/31/20 10/31/19
Net asset value, beginning of period $4.90 $6.20 $6.34 $6.94 $6.20
Income (loss) from investment operations
Net investment income (loss) (d) $0.31 $0.25 $0.26 $0.27 $0.33
Net realized and unrealized gain (loss) 0.30 (1.30) (0.14) (0.59) 0.72
 Total from investment operations  $0.61  $(1.05)  $0.12  $(0.32)  $1.05
Less distributions declared to shareholders
From net investment income $(0.23) $(0.09) $(0.26) $(0.14) $(0.18)
From tax return of capital — (0.16) — (0.14) (0.13)
 Total distributions declared to shareholders  $(0.23)  $(0.25)  $(0.26)  $(0.28)  $(0.31)
 Net asset value, end of period (x)  $5.28  $4.90  $6.20  $6.34  $6.94
 Total return (%) (r)(s)(t)(x) 12.26 (17.29) 1.75 (4.54) 17.31
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 1.24 1.27 1.36 1.44 1.40
Expenses after expense reductions 1.11 1.10 1.10 1.10 1.10
Net investment income (loss) 5.71 4.54 3.90 4.22 5.00
Portfolio turnover 69 64 82 78 136
Net assets at end of period (000 omitted)  $5,796  $3,398  $3,934  $1,916  $2,350
See Notes to Financial Statements
27
Financial Highlights – continued
Class B  Year ended
  10/31/23 10/31/22 10/31/21 10/31/20 10/31/19
Net asset value, beginning of period $4.91 $6.20 $6.35 $6.95 $6.20
Income (loss) from investment operations
Net investment income (loss) (d) $0.27 $0.21 $0.21 $0.23 $0.28
Net realized and unrealized gain (loss) 0.28 (1.29) (0.15) (0.60) 0.73
 Total from investment operations  $0.55  $(1.08)  $0.06  $(0.37)  $1.01
Less distributions declared to shareholders
From net investment income $(0.18) $(0.08) $(0.21) $(0.12) $(0.15)
From tax return of capital — (0.13) — (0.11) (0.11)
 Total distributions declared to shareholders  $(0.18)  $(0.21)  $(0.21)  $(0.23)  $(0.26)
 Net asset value, end of period (x)  $5.28  $4.91  $6.20  $6.35  $6.95
 Total return (%) (r)(s)(t)(x) 11.20 (17.76) 0.83 (5.25) 16.62
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 2.00 2.02 2.11 2.19 2.15
Expenses after expense reductions 1.86 1.85 1.85 1.85 1.85
Net investment income (loss) 4.96 3.78 3.20 3.48 4.28
Portfolio turnover 69 64 82 78 136
Net assets at end of period (000 omitted)  $67  $80  $101  $113  $131
    
Class C  Year ended
  10/31/23 10/31/22 10/31/21 10/31/20 10/31/19
Net asset value, beginning of period $4.90 $6.20 $6.34 $6.94 $6.20
Income (loss) from investment operations
Net investment income (loss) (d) $0.27 $0.21 $0.21 $0.22 $0.28
Net realized and unrealized gain (loss) 0.29 (1.30) (0.14) (0.59) 0.72
 Total from investment operations  $0.56  $(1.09)  $0.07  $(0.37)  $1.00
Less distributions declared to shareholders
From net investment income $(0.18) $(0.08) $(0.21) $(0.12) $(0.15)
From tax return of capital — (0.13) — (0.11) (0.11)
 Total distributions declared to shareholders  $(0.18)  $(0.21)  $(0.21)  $(0.23)  $(0.26)
 Net asset value, end of period (x)  $5.28  $4.90  $6.20  $6.34  $6.94
 Total return (%) (r)(s)(t)(x) 11.43 (17.93) 0.99 (5.26) 16.45
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 1.99 2.02 2.11 2.19 2.15
Expenses after expense reductions 1.86 1.85 1.85 1.85 1.85
Net investment income (loss) 4.97 3.78 3.19 3.46 4.18
Portfolio turnover 69 64 82 78 136
Net assets at end of period (000 omitted)  $902  $733  $1,003  $1,093  $1,268
See Notes to Financial Statements
28
Financial Highlights – continued
Class I  Year ended
  10/31/23 10/31/22 10/31/21 10/31/20 10/31/19
Net asset value, beginning of period $4.88 $6.18 $6.32 $6.92 $6.18
Income (loss) from investment operations
Net investment income (loss) (d) $0.33 $0.26 $0.27 $0.29 $0.35
Net realized and unrealized gain (loss) 0.29 (1.29) (0.13) (0.59) 0.72
 Total from investment operations  $0.62  $(1.03)  $0.14  $(0.30)  $1.07
Less distributions declared to shareholders
From net investment income $(0.24) $(0.10) $(0.28) $(0.15) $(0.19)
From tax return of capital — (0.17) — (0.15) (0.14)
 Total distributions declared to shareholders  $(0.24)  $(0.27)  $(0.28)  $(0.30)  $(0.33)
 Net asset value, end of period (x)  $5.26  $4.88  $6.18  $6.32  $6.92
 Total return (%) (r)(s)(t)(x) 12.57 (17.15) 2.00 (4.33) 17.64
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 0.99 1.04 1.11 1.18 1.15
Expenses after expense reductions 0.86 0.85 0.85 0.85 0.85
Net investment income (loss) 5.96 4.84 4.18 4.48 5.21
Portfolio turnover 69 64 82 78 136
Net assets at end of period (000 omitted)  $100,571  $49,753  $13,991  $15,055  $24,544
    
Class R1  Year ended
  10/31/23 10/31/22 10/31/21 10/31/20 10/31/19
Net asset value, beginning of period $4.93 $6.24 $6.35 $6.95 $6.21
Income (loss) from investment operations
Net investment income (loss) (d) $0.27 $0.21 $0.19 $0.22 $0.29
Net realized and unrealized gain (loss) 0.31 (1.31) (0.09)(g) (0.59) 0.72
 Total from investment operations  $0.58  $(1.10)  $0.10  $(0.37)  $1.01
Less distributions declared to shareholders
From net investment income $(0.19) $(0.08) $(0.21) $(0.12) $(0.16)
From tax return of capital — (0.13) — (0.11) (0.11)
 Total distributions declared to shareholders  $(0.19)  $(0.21)  $(0.21)  $(0.23)  $(0.27)
 Net asset value, end of period (x)  $5.32  $4.93  $6.24  $6.35  $6.95
 Total return (%) (r)(s)(t)(x) 11.59 (17.95) 1.47 (5.25) 16.43
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 1.99 2.02 2.09 2.18 2.15
Expenses after expense reductions 1.86 1.85 1.85 1.85 1.85
Net investment income (loss) 4.96 3.79 2.91 3.47 4.29
Portfolio turnover 69 64 82 78 136
Net assets at end of period (000 omitted)  $66  $59  $58  $58  $61
See Notes to Financial Statements
29
Financial Highlights – continued
Class R2  Year ended
  10/31/23 10/31/22 10/31/21 10/31/20 10/31/19
Net asset value, beginning of period $4.91 $6.21 $6.35 $6.95 $6.20
Income (loss) from investment operations
Net investment income (loss) (d) $0.30 $0.24 $0.24 $0.26 $0.32
Net realized and unrealized gain (loss) 0.28 (1.30) (0.14) (0.59) 0.73
 Total from investment operations  $0.58  $(1.06)  $0.10  $(0.33)  $1.05
Less distributions declared to shareholders
From net investment income $(0.21) $(0.09) $(0.24) $(0.14) $(0.18)
From tax return of capital — (0.15) — (0.13) (0.12)
 Total distributions declared to shareholders  $(0.21)  $(0.24)  $(0.24)  $(0.27)  $(0.30)
 Net asset value, end of period (x)  $5.28  $4.91  $6.21  $6.35  $6.95
 Total return (%) (r)(s)(t)(x) 11.75 (17.47) 1.50 (4.77) 17.19
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 1.49 1.52 1.61 1.68 1.65
Expenses after expense reductions 1.36 1.35 1.35 1.35 1.35
Net investment income (loss) 5.46 4.29 3.70 3.97 4.79
Portfolio turnover 69 64 82 78 136
Net assets at end of period (000 omitted)  $56  $50  $60  $59  $62
    
Class R3  Year ended
  10/31/23 10/31/22 10/31/21 10/31/20 10/31/19
Net asset value, beginning of period $4.92 $6.22 $6.36 $6.96 $6.22
Income (loss) from investment operations
Net investment income (loss) (d) $0.31 $0.25 $0.26 $0.27 $0.33
Net realized and unrealized gain (loss) 0.30 (1.30) (0.14) (0.59) 0.72
 Total from investment operations  $0.61  $(1.05)  $0.12  $(0.32)  $1.05
Less distributions declared to shareholders
From net investment income $(0.23) $(0.09) $(0.26) $(0.14) $(0.18)
From tax return of capital — (0.16) — (0.14) (0.13)
 Total distributions declared to shareholders  $(0.23)  $(0.25)  $(0.26)  $(0.28)  $(0.31)
 Net asset value, end of period (x)  $5.30  $4.92  $6.22  $6.36  $6.96
 Total return (%) (r)(s)(t)(x) 12.23 (17.22) 1.76 (4.52) 17.27
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 1.24 1.27 1.37 1.44 1.40
Expenses after expense reductions 1.11 1.10 1.10 1.10 1.10
Net investment income (loss) 5.72 4.55 3.96 4.21 5.01
Portfolio turnover 69 64 82 78 136
Net assets at end of period (000 omitted)  $166  $123  $132  $275  $211
See Notes to Financial Statements
30
Financial Highlights – continued
Class R4  Year ended
  10/31/23 10/31/22 10/31/21 10/31/20 10/31/19
Net asset value, beginning of period $4.93 $6.23 $6.38 $6.98 $6.23
Income (loss) from investment operations
Net investment income (loss) (d) $0.33 $0.27 $0.28 $0.29 $0.35
Net realized and unrealized gain (loss) 0.29 (1.30) (0.15) (0.59) 0.73
 Total from investment operations  $0.62  $(1.03)  $0.13  $(0.30)  $1.08
Less distributions declared to shareholders
From net investment income $(0.24) $(0.10) $(0.28) $(0.15) $(0.19)
From tax return of capital — (0.17) — (0.15) (0.14)
 Total distributions declared to shareholders  $(0.24)  $(0.27)  $(0.28)  $(0.30)  $(0.33)
 Net asset value, end of period (x)  $5.31  $4.93  $6.23  $6.38  $6.98
 Total return (%) (r)(s)(t)(x) 12.49 (16.98) 1.86 (4.25) 17.71
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 0.99 1.02 1.11 1.19 1.15
Expenses after expense reductions 0.86 0.85 0.85 0.85 0.85
Net investment income (loss) 5.96 4.79 4.19 4.42 5.29
Portfolio turnover 69 64 82 78 136
Net assets at end of period (000 omitted)  $126  $109  $127  $122  $64
    
Class R6  Year ended
  10/31/23 10/31/22 10/31/21 10/31/20 10/31/19
Net asset value, beginning of period $4.90 $6.20 $6.34 $6.94 $6.20
Income (loss) from investment operations
Net investment income (loss) (d) $0.33 $0.27 $0.28 $0.30 $0.36
Net realized and unrealized gain (loss) 0.29 (1.30) (0.14) (0.59) 0.72
 Total from investment operations  $0.62  $(1.03)  $0.14  $(0.29)  $1.08
Less distributions declared to shareholders
From net investment income $(0.24) $(0.10) $(0.28) $(0.16) $(0.20)
From tax return of capital — (0.17) — (0.15) (0.14)
 Total distributions declared to shareholders  $(0.24)  $(0.27)  $(0.28)  $(0.31)  $(0.34)
 Net asset value, end of period (x)  $5.28  $4.90  $6.20  $6.34  $6.94
 Total return (%) (r)(s)(t)(x) 12.64 (17.00) 2.10 (4.20) 17.69
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 0.90 0.92 1.02 1.08 1.08
Expenses after expense reductions 0.76 0.76 0.76 0.74 0.78
Net investment income (loss) 6.06 4.88 4.28 4.57 5.37
Portfolio turnover 69 64 82 78 136
Net assets at end of period (000 omitted)  $372,715  $365,446  $428,596  $346,556  $317,272
    
See Notes to Financial Statements
31
Financial Highlights – continued
(d) Per share data is based on average shares outstanding.
(g) The per share amount varies from the net realized and unrealized gain/loss for the period because of the timing of sales of fund shares and the per share amount of realized and unrealized gains and losses at such time.
(r) Certain expenses have been reduced without which performance would have been lower.
(s) From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower.
(t) Total returns do not include any applicable sales charges.
(x) The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.
See Notes to Financial Statements
32
Notes to Financial Statements
(1) Business and Organization
MFS Emerging Markets Debt Local Currency Fund (the fund) is a non-diversified series of MFS Series Trust X (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company.
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.
(2) Significant Accounting Policies
General — The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. The fund invests in high-yield securities rated below investment grade. Investments in below investment grade quality securities can involve a substantially greater risk of default or can already be in default, and their values can decline significantly. Below investment grade quality securities tend to be more sensitive to adverse news about the issuer, or the market or economy in general, than higher quality debt instruments. The fund invests in foreign securities, including securities of emerging market issuers. Investments in foreign securities are vulnerable to the effects of changes in the relative values of the local currency and the U.S. dollar and to the effects of changes in each country’s market, economic, industrial, political, regulatory, geopolitical, environmental, public health, and other conditions. Investments in emerging markets can involve additional and greater risks than the risks associated with investments in developed foreign markets. Emerging markets can have less developed markets, greater custody and operational risk, less developed legal, regulatory, accounting, and auditing systems, greater government involvement in the economy, greater risk of new or inconsistent government treatment of or restrictions on issuers and instruments, and greater political, social, and economic instability than developed markets.
Balance Sheet Offsetting — The fund's accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement, or similar agreement, does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the fund and the applicable counterparty. The fund's right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject. Balance sheet offsetting disclosures, to the extent applicable to the fund, have been included in the fund’s Significant Accounting Policies note under the captions for each of the fund’s in-scope financial instruments and transactions.
33
Notes to Financial Statements  - continued
Investment Valuations — Subject to its oversight, the fund's Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments to MFS as the fund's adviser, pursuant to the fund’s valuation policy and procedures which have been adopted by the adviser and approved by the Board. In accordance with Rule 2a-5 under the Investment Company Act of 1940, the Board of Trustees designated the adviser as the “valuation designee” of the fund. If the adviser, as valuation designee, determines that reliable market quotations are not readily available for an investment, the investment is valued at fair value as determined in good faith by the adviser in accordance with the adviser’s fair valuation policy and procedures.
Under the fund's valuation policy and procedures, debt instruments and floating rate loans, 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 may be valued at amortized cost, which approximates market value. Exchange-traded options are generally valued at the last sale or official closing price on their primary exchange as provided by a third-party pricing service. Exchange-traded options for which there were no sales reported that day are generally valued at the last daily bid quotation on their primary exchange as provided by a third-party pricing service. For put options, the position may be valued at the last daily ask quotation if there are no trades reported during the day. Options not traded on an exchange are generally valued at a broker/dealer bid quotation. Foreign currency options are generally valued at valuations provided by a third-party pricing service. Futures contracts are generally valued at last posted settlement price on their primary exchange as provided by a third-party pricing service. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation on their primary exchange as provided by a third-party pricing service. Forward foreign currency exchange contracts are generally valued at the mean of bid and asked prices for the time period interpolated from rates provided by a third-party pricing service for proximate time periods. Swap agreements are generally valued using valuations provided by a third-party pricing service, which for cleared swaps includes an evaluation of any trading activity at the clearinghouses. Open-end investment companies are generally valued at net asset value per share. 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.
Under the fund’s valuation policy and procedures, market quotations are not considered to be readily available for debt instruments, floating rate loans, and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services or otherwise determined by the adviser in accordance with the adviser’s fair valuation policy and procedures. 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, spreads and other market data. An investment may also be valued at fair value if the adviser determines that the 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 halt of trading of a specific security where trading does not resume
34
Notes to Financial Statements  - continued
prior to the close of the exchange or market on which the security is principally traded. 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 significant unobservable inputs, which may include the adviser's own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments, such as futures contracts, forward foreign currency exchange contracts, and swap agreements. The following is a summary of the levels used as of October 31, 2023 in valuing the fund's assets and liabilities:
Financial Instruments Level 1 Level 2 Level 3 Total
Equity Securities:        
United States $325,500 $144,150 $— $469,650
Non - U.S. Sovereign Debt — 426,990,671 — 426,990,671
Foreign Bonds — 14,406,894 — 14,406,894
Mutual Funds 24,854,062 — — 24,854,062
Total $25,179,562 $441,541,715 $— $466,721,277
Other Financial Instruments        
Futures Contracts – Liabilities $(850,626) $— $— $(850,626)
Forward Foreign Currency Exchange Contracts – Assets — 2,556,758 — 2,556,758
Forward Foreign Currency Exchange Contracts – Liabilities — (2,760,028) — (2,760,028)
Swap Agreements – Assets — 604,406 — 604,406
Swap Agreements – Liabilities — (4,304,101) — (4,304,101)
For further information regarding security characteristics, see the Portfolio of Investments.
35
Notes to Financial Statements  - continued
The following is a reconciliation of level 3 assets for which significant unobservable inputs were used to determine fair value. The table presents the activity of level 3 securities held at the beginning and the end of the period.
  Fixed Income
Securities
Balance as of 10/31/22 $2,036,062
Realized gain (loss) (3,896,129)
Change in unrealized appreciation or depreciation 3,041,517
Sales (1,181,450)
Balance as of 10/31/23 $—
Inflation-Adjusted Debt Securities — The fund invests in inflation-adjusted debt securities issued by foreign corporations and/or foreign governments. The principal value of these debt securities is adjusted through income according to changes in an inflation index or another general price or wage index. These debt securities typically pay a fixed rate of interest, but this fixed rate is applied to the inflation-adjusted principal amount. The principal paid at maturity of the debt security is typically equal to the inflation-adjusted principal amount, or the security’s original par value, whichever is greater. Other types of inflation-adjusted securities may use other methods to adjust for other measures of inflation.
Foreign Currency Translation — Purchases and sales of foreign investments, income, and expenses are converted into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions or on the reporting date for foreign denominated receivables and payables. Gains and losses attributable to foreign currency exchange rates on sales of securities are recorded for financial statement purposes as net realized gains and losses on investments. Gains and losses attributable to foreign exchange rate movements on receivables, payables, income and expenses are recorded for financial statement purposes as foreign currency transaction gains and losses. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.
Derivatives — The fund uses derivatives primarily to increase or decrease exposure to a particular market or segment of the market, or security, to increase or decrease interest rate or currency exposure, or as alternatives to direct investments. Derivatives are used for hedging or non-hedging purposes. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. When the fund uses derivatives as an investment to increase market exposure, or for hedging purposes, gains and losses from derivative instruments may be substantially greater than the derivative’s original cost.
The derivative instruments used by the fund during the period were purchased options, futures contracts, forward foreign currency exchange contracts, and swap agreements. Depending on the type of derivative, a fund may exit a derivative position by entering into an offsetting transaction with a counterparty or exchange, negotiating an agreement with the derivative counterparty, or novating the position to a third party. The fund may be unable to promptly close out a futures position in instances where the
36
Notes to Financial Statements  - continued
daily fluctuation in the price for that type of future exceeds the daily limit set by the exchange. The volume of derivative activity, based on month-end notional amounts during the period, was as follows for the year ended October 31, 2023:
  Percentage of Net Assets
  Forward
Foreign
Currency
Exchange
Contracts 		Futures
Contracts 		Swap
Agreements 		Purchased
Options
Average Notional Amount Outstanding 62.20% 10.55% 33.42% 0.06%
Notional Amount Outstanding as of October 31, 2023 75.61% 23.44% 53.64% 0.10%
Notional amounts outstanding are at absolute value and are determined, when applicable, by netting notional amounts of contracts to buy and sell the same underlying instrument with the same counterparty and the same settlement date.
The following table presents, by major type of derivative contract, the fair value, on a gross basis, of the asset and liability components of derivatives held by the fund at October 31, 2023 as reported in the Statement of Assets and Liabilities:
    Fair Value (a)
Risk Derivative Contracts Asset Derivatives Liability Derivatives
Equity Purchased Option Contracts $469,650 $—
Interest Rate Futures Contracts — (850,626)
Foreign Exchange Forward Foreign Currency Exchange Contracts 2,556,758 (2,760,028)
Interest Rate Cleared Swap Agreements 604,406 (4,243,636)
Interest Rate Uncleared Swap Agreements — (60,465)
Total   $3,630,814 $(7,914,755)
(a) The value of purchased options outstanding is included in investments in unaffiliated issuers, at value, within the Statement of Assets and Liabilities. Values presented in this table for futures contracts and cleared swap agreements correspond to the values reported in the Portfolio of Investments. Only the current day net variation margin for futures contracts and cleared swap agreements is reported separately within the Statement of Assets and Liabilities.
The following table presents, by major type of derivative contract, the realized gain (loss) on derivatives held by the fund for the year ended October 31, 2023 as reported in the Statement of Operations:
Risk Futures
Contracts 		Swap
Agreements 		Forward Foreign
Currency
Exchange
Contracts 		Unaffiliated Issuers
(Purchased
Options)
Interest Rate $(3,583,070) $(2,221,245) $— $—
Foreign Exchange — — (933,351) —
Equity — — — (85,694)
Total $(3,583,070) $(2,221,245) $(933,351) $(85,694)
37
Notes to Financial Statements  - continued
The following table presents, by major type of derivative contract, the change in unrealized appreciation or depreciation on derivatives held by the fund for the year ended October 31, 2023 as reported in the Statement of Operations:
Risk Futures
Contracts 		Swap
Agreements 		Forward Foreign
Currency
Exchange
Contracts 		Unaffiliated Issuers
(Purchased
Options)
Interest Rate $142,772 $(1,384,610) $— $—
Foreign Exchange — — 964,679 —
Equity — — — 136,905
Total $142,772 $(1,384,610) $964,679 $136,905
Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain, but not all, uncleared derivatives, the fund attempts to reduce its exposure to counterparty credit risk whenever possible by entering into an ISDA Master Agreement on a bilateral basis. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a specified deterioration in the credit quality of the other party. Upon an event of default or a termination of the ISDA Master Agreement, the non-defaulting party has the right to close out all transactions traded under such agreement and to net amounts owed under each agreement to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the fund's credit risk to such counterparty equal to any amounts payable by the fund under the applicable transactions, if any.
Collateral and margin requirements differ by type of derivative. For cleared derivatives (e.g., futures contracts, cleared swaps, and exchange-traded options), margin requirements are set by the clearing broker and the clearing house and collateral, in the form of cash or securities, is posted by the fund directly with the clearing broker. Collateral terms are counterparty agreement specific for uncleared derivatives (e.g., forward foreign currency exchange contracts, uncleared swap agreements, and uncleared options) and collateral, in the form of cash and securities, is held in segregated accounts with the fund's custodian in connection with these agreements. For derivatives traded under an ISDA Master Agreement, which contains a credit support annex, the collateral requirements are netted across all transactions traded under such counterparty-specific agreement and an amount is posted from one party to the other to collateralize such obligations. Cash that has been segregated or delivered to cover the fund's collateral or margin obligations under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities as restricted cash for uncleared derivatives and/or deposits with brokers for cleared derivatives. Securities pledged as collateral or margin for the same purpose, if any, are noted in the Portfolio of Investments. The fund may be required to make payments of interest on uncovered collateral or margin obligations with the broker. Any such payments are included in “Miscellaneous” expense in the Statement of Operations.
38
Notes to Financial Statements  - continued
The following table presents the fund's derivative assets and liabilities (by type) on a gross basis as of October 31, 2023:
Gross Amounts of: Derivative Assets Derivative Liabilities
Futures Contracts (a) $— $(51,135)
Uncleared Swaps, at value — (60,465)
Cleared Swap Agreements (a) 86,619 —
Forward Foreign Currency Exchange Contracts 2,556,758 (2,760,028)
Purchased Options (a) 469,650 —
Total Gross Amount of Derivative Assets
and Liabilities Presented in the
Statement of Assets & Liabilities 		$3,113,027 $(2,871,628)
Less: Derivative Assets and Liabilities Not Subject
to a Master Netting Agreement or
Similar Arrangement 		843,804 (336,154)
Total Gross Amount of Derivative Assets and
Liabilities Subject to a Master Netting Agreement or
Similar Arrangement 		$2,269,223 $(2,535,474)
(a) The value of purchased options outstanding is included in investments in unaffiliated issuers, at value, within the Statement of Assets and Liabilities. The amount presented here represents the fund's current day net variation margin for futures contracts and for cleared swap agreements. This amount, which is recognized within the Statement of Assets and Liabilities, differs from the fair value of the futures contracts and cleared swap agreements which is presented in the tables that follow the Portfolio of Investments.
39
Notes to Financial Statements  - continued
The following table presents (by counterparty) the fund's derivative assets net of amounts available for offset under Master Netting Agreements (or similar arrangements) and net of the related collateral held by the fund at October 31, 2023:
    Amounts Not Offset in the
Statement of Assets & Liabilities
  Gross Amount
of Derivative
Assets Subject
to a Master
Netting
Agreement (or
Similar
Arrangement)
by Counterparty 		Financial
Instruments
Available
for Offset 		Financial
Instruments
Collateral
Received (b) 		Cash
Collateral
Received (b) 		Net Amount
of Derivative
Assets by
Counterparty
Barclays Bank PLC $138,399 $(138,399) $— $— $—
BNP Paribas S.A. 131,026 — — — 131,026
Citibank N.A. 724,170 (687,295) — — 36,875
Deutsche Bank AG 51,559 (3,641) — — 47,918
Goldman Sachs International 510,961 (510,961) — — —
JPMorgan Chase Bank N.A. 61,569 (61,569) — — —
Merrill Lynch International 77,413 (67,795) — — 9,618
Morgan Stanley Capital Services, Inc. 574,126 (43,775) (530,351) — —
Total $2,269,223 $(1,513,435) $(530,351) $— $225,437
40
Notes to Financial Statements  - continued
The following table presents (by counterparty) the fund's derivative liabilities net of amounts available for offset under Master Netting Agreements (or similar arrangements) and net of the related collateral pledged by the fund at October 31, 2023:
    Amounts Not Offset in the
Statement of Assets & Liabilities
  Gross Amount
of Derivative
Liabilities Subject
to a Master
Netting
Agreement (or
Similar
Arrangement)
by Counterparty 		Financial
Instruments
Available
for Offset 		Financial
Instruments
Collateral
Pledged (b) 		Cash
Collateral
Pledged (b) 		Net Amount
of Derivative
Liabilities by
Counterparty
Barclays Bank PLC $(722,597) $138,399 $— $571,000 $(13,198)
Brown Brothers Harriman (2,064) — — — (2,064)
Citibank N.A. (687,295) 687,295 — — —
Deutsche Bank AG (3,641) 3,641 — — —
Goldman Sachs International (597,047) 510,961 — — (86,086)
JPMorgan Chase Bank N.A. (411,260) 61,569 — 349,691 —
Merrill Lynch International (67,795) 67,795 — — —
Morgan Stanley Capital Services, Inc. (43,775) 43,775 — — —
Total $(2,535,474) $1,513,435 $— $920,691 $(101,348)
(b) The amount presented here may be less than the total amount of collateral (received)/pledged as the excess collateral (received)/pledged is not shown for purposes of this presentation.
Purchased Options — The fund purchased put options for a premium. Purchased put options entitle the holder to sell a specified number of shares or units of a particular security, currency or index at a specified price at a specified date or within a specified period of time. Purchasing put options may hedge against an anticipated decline in the value of portfolio securities or currency or decrease the fund's exposure to an underlying instrument.
The premium paid is initially recorded as an investment in the Statement of Assets and Liabilities. That investment is subsequently marked-to-market daily with the difference between the premium paid and the market value of the purchased option being recorded as unrealized appreciation or depreciation. Premiums paid for purchased put options which have expired are treated as realized losses on investments in the Statement of Operations. Upon the exercise or closing of a purchased put option, the premium paid is offset against the proceeds on the sale of the underlying security or financial instrument in order to determine the realized gain or loss on investments.
41
Notes to Financial Statements  - continued
Whether or not the option is exercised, the fund's maximum risk of loss from purchasing an option is the amount of premium paid.  All option contracts involve credit risk if the counterparty to the option contract fails to perform. For uncleared options, this risk is mitigated in cases where there is an ISDA Master Agreement between the fund and the counterparty providing for netting as described above and, where applicable, by the posting of collateral by the counterparty to the fund to cover the fund’s exposure to the counterparty under such ISDA Master Agreement.
Futures Contracts — The fund entered into futures contracts which may be used to hedge against or obtain broad market exposure, interest rate exposure, currency exposure, or to manage duration. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.
Upon entering into a futures contract, the fund is required to deposit with the broker, either in cash or securities, an initial margin in an amount equal to a specified percentage of the notional amount of the contract. Subsequent payments (variation margin) are made or received by the fund each day, depending on the daily fluctuations in the value of the contract, and are recorded for financial statement purposes as unrealized gain or loss by the fund until the contract is closed or expires at which point the gain or loss on futures contracts is realized.
The fund bears the risk of interest rates, exchange rates or securities prices moving unexpectedly, in which case, the fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. While futures contracts may present less counterparty risk to the fund since the contracts are exchange traded and the exchange’s clearinghouse guarantees payments to the broker, there is still counterparty credit risk due to the insolvency of the broker. The fund’s maximum risk of loss due to counterparty credit risk is equal to the margin posted by the fund to the broker plus any gains or minus any losses on the outstanding futures contracts.
Forward Foreign Currency Exchange Contracts — The fund entered into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. These contracts may be used to hedge the fund’s currency risk or for non-hedging purposes. For hedging purposes, the fund may enter into contracts to deliver or receive foreign currency that the fund will receive from or use in its normal investment activities. The fund may also use contracts to hedge against declines in the value of foreign currency denominated securities due to unfavorable exchange rate movements. For non-hedging purposes, the fund may enter into contracts with the intent of changing the relative exposure of the fund’s portfolio of securities to different currencies to take advantage of anticipated exchange rate changes.
Forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any unrealized gains or losses are recorded as a receivable or payable for forward foreign currency exchange contracts until the contract settlement date. On contract settlement date, any gain or loss on the contract is recorded as realized gains or losses on forward foreign currency exchange contracts.
Risks may arise upon entering into these contracts from unanticipated movements in the value of the contract and from the potential inability of counterparties to meet the terms of their contracts. Generally, the fund’s maximum risk due to counterparty credit risk is the unrealized gain on the contract due to the use of Continuous Linked Settlement, a multicurrency cash settlement system for the centralized settlement of
42
Notes to Financial Statements  - continued
foreign transactions. This risk is mitigated in cases where there is an ISDA Master Agreement between the fund and the counterparty providing for netting as described above and, where applicable, by the posting of collateral by the counterparty to the fund to cover the fund’s exposure to the counterparty under such ISDA Master Agreement.
Swap Agreements — The fund entered into swap agreements which generally involve a periodic exchange of cash payments on a net basis, at specified intervals or upon the occurrence of specified events, between the fund and a counterparty. Certain swap agreements may be entered into as a bilateral contract (“uncleared swaps”) while others are required to be centrally cleared (“cleared swaps”). 
Both cleared and uncleared swap agreements are marked to market daily.  The value of uncleared swap agreements is reported in the Statement of Assets and Liabilities as “Uncleared swaps, at value” which includes any related interest accruals to be paid or received by the fund.  For cleared swaps, payments (variation margin) are made or received by the fund each day, depending on the daily fluctuations in the value of the cleared swap, such that only the current day net receivable or payable for variation margin is reported in the Statement of Assets and Liabilities.
For both cleared and uncleared swaps, premiums paid or received at the inception of the agreements are amortized over the term of the agreement as realized gain or loss on swap agreements in the Statement of Operations. The periodic exchange of net cash payments, as well as any liquidation payment received or made upon early termination, are recorded as a realized gain or loss on swap agreements in the Statement of Operations. The change in unrealized appreciation or depreciation on swap agreements in the Statement of Operations reflects the aggregate change over the reporting period in the value of swaps net of any unamortized premiums paid or received.
Risks related to swap agreements include the possible lack of a liquid market, unfavorable market and interest rate movements of the underlying instrument and the failure of the counterparty to perform under the terms of the agreements. The fund's maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from/paid to the counterparty over the contract's remaining life, to the extent that the amount is positive. To address counterparty risk, uncleared swap agreements are limited to only highly-rated counterparties.  Risk is further reduced by having an ISDA Master Agreement (“ISDA”) between the fund and the counterparty and, where applicable, by the posting of collateral by the counterparty to the fund to cover the fund’s exposure to the counterparty under such ISDA. The fund's counterparty risk due to cleared swaps is mitigated by the fact that the clearinghouse is the true counterparty to the transaction and the regulatory requirement safeguards in the event of a clearing broker bankruptcy.
The fund entered into interest rate swap agreements in order to manage its exposure to interest or foreign exchange rate fluctuations. Interest rate swap agreements involve the periodic exchange of cash flows, between the fund and a counterparty, based on the difference between two interest rates applied to a notional principal amount. The two interest rates exchanged may either be a fixed rate and a floating rate or two floating rates based on different indices.
43
Notes to Financial Statements  - continued
Indemnifications — Under the fund's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the fund. Additionally, in the normal course of business, the fund enters into agreements with service providers that may contain indemnification clauses. The fund's maximum exposure under these agreements is unknown as this would involve future claims that may be made against the fund that have not yet occurred.
Investment Transactions and Income —  Interest income is recorded on the accrual basis. All premium and discount is amortized or accreted for financial statement purposes in accordance with U.S. generally accepted accounting principles. Dividends received in cash are recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded when the fund is informed of the dividend if such information is obtained subsequent to the ex-dividend date. Dividend and interest payments received in additional securities are recorded on the ex-dividend or ex-interest date in an amount equal to the value of the security on such date. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted upward or downward based on the rate of inflation. Interest is accrued based on the principal amount, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond is generally recorded as an increase or decrease in interest income, respectively, even though the adjusted principal is not received until maturity. Debt obligations may be placed on non-accrual status or set to accrue at a rate of interest less than the contractual coupon when the collection of all or a portion of interest has become doubtful. Interest income for those debt obligations may be further reduced by the write-off of the related interest receivables when deemed uncollectible.
The fund may receive proceeds from litigation settlements. Any proceeds received from litigation involving portfolio holdings are reflected in the Statement of Operations in realized gain/loss if the security has been disposed of by the fund or in unrealized gain/loss if the security is still held by the fund. Any other proceeds from litigation not related to portfolio holdings are reflected as other income in the Statement of Operations.
Investment transactions are recorded on the trade date.  In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.
Tax Matters and Distributions — The fund intends to qualify as a regulated investment company, as defined under Subchapter M of the Internal Revenue Code, and to distribute all of its taxable income, including realized capital gains. As a result, no provision for federal income tax is required. The fund’s federal tax returns, when filed, will remain subject to examination by the Internal Revenue Service for a three year period. Management has analyzed the fund’s tax positions taken on federal and state tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability. Foreign taxes, if any, have been accrued by the fund in the accompanying financial statements in accordance with the applicable foreign tax law. Foreign income taxes may be withheld by certain countries in which the fund invests. Additionally, capital gains realized by the fund on securities issued in or by certain foreign countries may be subject to capital gains tax imposed by those countries.
44
Notes to Financial Statements  - continued
Distributions to shareholders are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no impact on net assets or net asset value per share. Temporary differences which arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future.
Book/tax differences primarily relate to amortization and accretion of debt securities, wash sale loss deferrals, and derivative transactions.
The tax character of distributions declared to shareholders for the last two fiscal years is as follows:
  Year ended
10/31/23 		Year ended
10/31/22
Ordinary income (including any short-term capital gains) $21,411,123 $8,055,668
Tax return of capital (b) — 13,366,391
Total distributions $21,411,123 $21,422,059
    
(b) Distributions in excess of tax basis earnings and profits are reported in the financial statements as a tax return of capital.
The federal tax cost and the tax basis components of distributable earnings were as follows:
As of 10/31/23  
Cost of investments $497,257,005
Gross appreciation 6,365,213
Gross depreciation (41,654,526)
Net unrealized appreciation (depreciation) $(35,289,313)
Undistributed ordinary income 3,870,556
Capital loss carryforwards (57,873,088)
Other temporary differences (2,415,218)
Total distributable earnings (loss) $(91,707,063)
As of October 31, 2023, the fund had capital loss carryforwards available to offset future realized gains. These net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses. Such losses are characterized as follows:
Short-Term $(26,974,198)
Long-Term (30,898,890)
Total $(57,873,088)
Multiple Classes of Shares of Beneficial Interest — The fund offers multiple classes of shares, which differ in their respective distribution and service fees. The fund's income and common expenses are allocated to shareholders based on the value of settled shares outstanding of each class. The fund's realized and unrealized gain (loss) are allocated to shareholders based on the daily net assets of each class. Dividends are declared separately for each class. Differences in per share dividend rates are generally
45
Notes to Financial Statements  - continued
due to differences in separate class expenses. Class B and Class C shares will convert to Class A shares approximately eight years after purchase. The fund’s distributions declared to shareholders as reported in the Statements of Changes in Net Assets are presented by class as follows:
  From net investment
income 		  From tax return of
capital
  Year
ended
10/31/23 		  Year
ended
10/31/22 		  Year
ended
10/31/23 		  Year
ended
10/31/22
Class A $203,926   $57,162   $—   $94,847
Class B 2,802   1,374   —   2,279
Class C 29,513   12,337   —   20,471
Class I 3,852,758   515,196   —   854,841
Class R1 2,267   789   —   1,308
Class R2 2,179   886   —   1,469
Class R3 6,548   2,144   —   3,557
Class R4 5,402   2,100   —   3,485
Class R6 17,305,728   7,463,680   —   12,384,134
Total $21,411,123   $8,055,668   $—   $13,366,391
(3) Transactions with Affiliates
Investment Adviser — The fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to the fund. The management fee is computed daily and paid monthly at the following annual rates based on the fund's average daily net assets:
Up to $1 billion 0.75%
In excess of $1 billion and up to $2.5 billion 0.70%
In excess of $2.5 billion 0.65%
MFS has agreed in writing to reduce its management fee by a specified amount if certain MFS mutual fund assets exceed thresholds agreed to by MFS and the fund's Board of Trustees. MFS has also agreed in writing to waive at least 0.01% of its management fee as part of this agreement. The agreement to waive at least 0.01% of the management fee will continue until modified by the fund's Board of Trustees, but such agreement will continue at least until February 28, 2025. For the year ended October 31, 2023, this management fee reduction amounted to $61,779, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended October 31, 2023 was equivalent to an annual effective rate of 0.74% of the fund's average daily net assets.
The investment adviser has agreed in writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, certain tax reclaim recovery expenses (including contingency fees and
46
Notes to Financial Statements  - continued
closing agreement expenses), and investment-related expenses, such that total fund operating expenses do not exceed the following rates annually of each class’s average daily net assets:
        Classes        
A B C I R1 R2 R3 R4 R6
1.10% 1.85% 1.85% 0.85% 1.85% 1.35% 1.10% 0.85% 0.78%
This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until February 28, 2025. For the year ended October 31, 2023, this reduction amounted to $587,500, which is included in the reduction of total expenses in the Statement of Operations.
Distributor — MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, as distributor, received $87 for the year ended October 31, 2023, as its portion of the initial sales charge on sales of Class A shares of the fund.
The Board of Trustees has adopted a distribution plan for certain share classes pursuant to Rule 12b-1 of the Investment Company Act of 1940.
The fund's distribution plan provides that the fund will pay MFD for services provided by MFD and financial intermediaries in connection with the distribution and servicing of certain share classes.  One component of the plan is a distribution fee paid to MFD and another component of the plan is a service fee paid to MFD. MFD may subsequently pay all, or a portion, of the distribution and/or service fees to financial intermediaries. The distribution and service fees are computed daily and paid monthly.
Distribution Plan Fee Table:
  Distribution
Fee Rate (d) 		Service
Fee Rate (d) 		Total
Distribution
Plan (d) 		Annual
Effective
Rate (e) 		Distribution
and Service
Fee
Class A — 0.25% 0.25% 0.25% $ 12,162
Class B 0.75% 0.25% 1.00% 1.00% 840
Class C 0.75% 0.25% 1.00% 1.00% 8,704
Class R1 0.75% 0.25% 1.00% 1.00% 673
Class R2 0.25% 0.25% 0.50% 0.50% 282
Class R3 — 0.25% 0.25% 0.25% 395
Total Distribution and Service Fees         $23,056
(d) In accordance with the distribution plan for certain classes, the fund pays distribution and/or service fees equal to these annual percentage rates of each class’s average daily net assets. The distribution and service fee rates disclosed by class represent the current rates in effect at the end of the reporting period. Any rate changes, if applicable, are detailed below.
(e) The annual effective rates represent actual fees incurred under the distribution plan for the year ended October 31, 2023 based on each class's average daily net assets. MFD has voluntarily agreed to rebate a portion of each class's 0.25% service fee attributable to accounts for which there is no financial intermediary specified on the account except for accounts attributable to MFS or its affiliates' seed money. There were no service fee rebates for the year ended October 31, 2023.
Certain Class A shares are subject to a contingent deferred sales charge (CDSC) in the event of a shareholder redemption within 18 months of purchase. Class B shares are subject to a CDSC in the event of a shareholder redemption within six years of
47
Notes to Financial Statements  - continued
purchase. Class C shares are subject to a CDSC in the event of a shareholder redemption within 12 months of purchase.  All contingent deferred sales charges are paid to MFD and during the year ended October 31, 2023, were as follows:
  Amount
Class A $—
Class B —
Class C 29
Shareholder Servicing Agent — MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from the fund for its services as shareholder servicing agent calculated as a percentage of the average daily net assets of the fund as determined periodically under the supervision of the fund's Board of Trustees. For the year ended October 31, 2023, the fee was $4,163, which equated to 0.0009% annually of the fund's average daily net assets. MFSC also receives reimbursement from the fund for out-of-pocket expenses, sub-accounting and other shareholder servicing costs which may be paid to affiliated and unaffiliated service providers. Class R6 shares do not incur sub-accounting fees. For the year ended October 31, 2023, these out-of-pocket expenses, sub-accounting and other shareholder servicing costs amounted to $116,235.
Administrator — MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to the fund.  Under an administrative services agreement, the fund reimburses MFS the costs incurred to provide these services.  The fund is charged an annual fixed amount of $17,500 plus a fee based on average daily net assets. The administrative services fee is computed daily and paid monthly. The administrative services fee incurred for the year ended October 31, 2023 was equivalent to an annual effective rate of 0.0166% of the fund's average daily net assets.
Trustees’ and Officers’ Compensation — The fund pays compensation to independent Trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee chairpersons. Independent Trustees’ compensation is accrued daily and paid subsequent to each Trustee Board meeting. The fund does not pay compensation directly to Trustees or officers of the fund who are also officers of the investment adviser, all of whom receive remuneration from MFS for their services to the fund. Certain officers and Trustees of the fund are officers or directors of MFS, MFD, and MFSC.
Other — The fund invests in the MFS Institutional Money Market Portfolio which is managed by MFS and seeks current income consistent with preservation of capital and liquidity. This money market fund does not pay a management fee to MFS but does incur investment and operating costs.
MFS purchased or redeemed the following fund shares:
Date Transaction Class Shares Amount
8/03/2022 Purchase Class R1 2,273 $12,000
8/03/2022 Redemption Class I 30 157
8/03/2022 Redemption Class R6 30 157
At October 31, 2023, MFS held 100% of the outstanding shares of Class R1 and Class R2, and approximately 79% of the outstanding shares of Class B.
48
Notes to Financial Statements  - continued
(4) Portfolio Securities
For the year ended October 31, 2023, purchases and sales of investments, other than short-term obligations, aggregated $366,135,936 and $291,840,650, respectively.
(5) Shares of Beneficial Interest
The fund's Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest. Transactions in fund shares were as follows:
  Year ended
10/31/23 		  Year ended
10/31/22
  Shares Amount   Shares Amount
Shares sold          
Class A 1,284,538 $7,171,299   278,538 $1,503,005
Class B 79 438   1,442 8,855
Class C 30,179 169,324   12,555 70,391
Class I 14,849,019 80,812,419   11,642,489 64,181,221
Class R1 — —   2,272 12,000
Class R3 5,179 28,709   3,347 18,577
Class R4 1,188 6,540   807 4,034
Class R6 2,835,971 15,658,521   9,356,291 53,178,449
  19,006,153 $103,847,250   21,297,741 $118,976,532
Shares issued to shareholders
in reinvestment of distributions 		         
Class A 36,673 $201,586   26,525 $146,587
Class B 421 2,317   447 2,473
Class C 5,373 29,513   5,894 32,759
Class I 702,588 3,847,892   257,662 1,364,783
Class R1 411 2,267   377 2,097
Class R2 397 2,179   424 2,355
Class R3 1,188 6,548   1,029 5,699
Class R4 979 5,402   1,003 5,585
Class R6 3,113,092 17,098,093   3,539,095 19,622,181
  3,861,122 $21,195,797   3,832,456 $21,184,519
Shares reacquired          
Class A (916,333) $(5,059,937)   (246,801) $(1,388,684)
Class B (4,012) (23,413)   (1,963) (10,137)
Class C (14,259) (77,844)   (30,729) (169,441)
Class I (6,612,938) (36,488,741)   (3,969,604) (22,497,648)
Class R3 (98) (524)   (600) (3,728)
Class R4 (547) (3,040)   (6) (36)
Class R6 (9,914,469) (54,026,333)   (7,471,723) (41,493,698)
  (17,462,656) $(95,679,832)   (11,721,426) $(65,563,372)
49
Notes to Financial Statements  - continued
  Year ended
10/31/23 		  Year ended
10/31/22
  Shares Amount   Shares Amount
Net change          
Class A 404,878 $2,312,948   58,262 $260,908
Class B (3,512) (20,658)   (74) 1,191
Class C 21,293 120,993   (12,280) (66,291)
Class I 8,938,669 48,171,570   7,930,547 43,048,356
Class R1 411 2,267   2,649 14,097
Class R2 397 2,179   424 2,355
Class R3 6,269 34,733   3,776 20,548
Class R4 1,620 8,902   1,804 9,583
Class R6 (3,965,406) (21,269,719)   5,423,663 31,306,932
  5,404,619 $29,363,215   13,408,771 $74,597,679
The fund is one of several mutual funds in which certain MFS funds may invest. The MFS funds do not invest in the underlying funds for the purpose of exercising management or control.  At the end of the period, the MFS Moderate Allocation Fund, the MFS Growth Allocation Fund, the MFS Conservative Allocation Fund, the MFS Lifetime 2030 Fund, the MFS Lifetime 2040 Fund, the MFS Lifetime 2035 Fund, the MFS Lifetime Income Fund, and the MFS Lifetime 2025 Fund were the owners of record of approximately 25%, 24%, 15%, 3%, 2%, 2%, 1%, and 1%, respectively, of the value of outstanding voting shares of the fund. In addition, the MFS Lifetime 2045 Fund was the owner of record of less than 1% of the value of outstanding voting shares of the fund.
Effective June 1, 2019, purchases of the fund’s Class B shares were closed to new and existing investors subject to certain exceptions. Effective September 29, 2023, purchases of Class R1 and Class R2 shares were closed to new eligible investors.
(6) Line of Credit
The fund and certain other funds managed by MFS participate in a $1.45 billion unsecured committed line of credit of which $1.2 billion is reserved for use by the fund and certain other MFS U.S. funds. The line of credit is provided by a syndicate of banks under a credit agreement. Borrowings may be made for temporary financing needs. Interest is charged to each fund, based on its borrowings, generally at a rate equal to the highest of 1) Daily Simple SOFR (Secured Overnight Financing Rate) plus 0.10%, 2) the Federal Funds Effective Rate, or 3) the Overnight Bank Funding Rate, each plus an agreed upon spread. A commitment fee, based on the average daily unused portion of the committed line of credit, is allocated among the participating funds. The line of credit expires on March 14, 2024 unless extended or renewed. In addition, the fund and other funds managed by MFS have established unsecured uncommitted borrowing arrangements with certain banks for temporary financing needs. Interest is charged to each fund, based on its borrowings, at rates equal to customary reference rates plus an agreed upon spread. For the year ended October 31, 2023, the fund’s commitment fee and interest expense were $2,511 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.
50
Notes to Financial Statements  - continued
(7) 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 following were affiliated issuers:
Affiliated Issuers Beginning
Value 		Purchases Sales
Proceeds 		Realized
Gain
(Loss) 		Change in
Unrealized
Appreciation or
Depreciation 		Ending
Value
MFS Institutional Money Market Portfolio  $75,804,189  $203,591,956  $254,548,610  $7,122  $(595)  $24,854,062
    
Affiliated Issuers Dividend
Income 		Capital Gain
Distributions
MFS Institutional Money Market Portfolio  $2,042,512  $—
51
Report of Independent Registered Public Accounting Firm
To the Shareholders of MFS Emerging Markets Debt Local Currency Fund and the Board of Trustees of MFS Series Trust X
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of MFS Emerging Markets Debt Local Currency Fund (the “Fund”) (one of the funds constituting MFS Series Trust X (the “Trust”)), including the portfolio of investments, as of October 31, 2023, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the funds constituting MFS Series Trust X) at October 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
52
Report of Independent Registered Public Accounting Firm – continued
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2023, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more MFS investment companies since 1993.
Boston, Massachusetts
December 14, 2023
53
Trustees and Officers — Identification and Background
The Trustees and Officers of the Trust, as of December 1, 2023, are listed below, together with their principal occupations during the past five years. (Their titles may have varied during that period.)  The address of each Trustee and Officer is 111 Huntington Avenue, Boston, Massachusetts 02199-7618.
Name, Age   Position(s) Held with Fund   Trustee/Officer Since(h)   Number of MFS Funds overseen by the Trustee   Principal Occupations During
the Past Five Years 		  Other Directorships During
the Past Five Years (j)
INTERESTED TRUSTEE                    
Michael W. Roberge (k)
(age 57) 		  Trustee   January 2021   136   Massachusetts Financial Services Company, Chairman (since January 2021); Chief Executive Officer (since January 2017); Director; Chairman of the Board (since January 2022); President (until December 2018); Chief Investment Officer (until December 2018)   N/A
INDEPENDENT TRUSTEES                    
John P. Kavanaugh
(age 69) 		  Trustee and Chair of Trustees   January 2009   136   Private investor   N/A
Steven E. Buller
(age 72) 		  Trustee   February 2014   136   Private investor   N/A
John A. Caroselli
(age 69) 		  Trustee   March 2017   136   Private investor; JC Global Advisors, LLC (management consulting), President (since 2015)   N/A
Maureen R. Goldfarb
(age 68) 		  Trustee   January 2009   136   Private investor   N/A
Peter D. Jones
(age 68) 		  Trustee   January 2019   136   Private investor   N/A
James W. Kilman, Jr.
(age 62) 		  Trustee   January 2019   136   Burford Capital Limited (finance and investment management), Senior Advisor (since May 3, 2021), Chief Financial Officer (2019 - May 2, 2021); KielStrand Capital LLC (family office), Chief Executive Officer (since 2016)   Alpha-En Corporation, Director (2016-2019)
54
Trustees and Officers - continued
Name, Age   Position(s) Held with Fund   Trustee/Officer Since(h)   Number of MFS Funds overseen by the Trustee   Principal Occupations During
the Past Five Years 		  Other Directorships During
the Past Five Years (j)
Clarence Otis, Jr.
(age 67) 		  Trustee   March 2017   136   Private investor   VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director
Maryanne L. Roepke
(age 67) 		  Trustee   May 2014   136   Private investor   N/A
Laurie J. Thomsen
(age 66) 		  Trustee   March 2005   136   Private investor   The Travelers Companies, Director; Dycom Industries, Inc., Director
    
Name, Age   Position(s) Held with
Fund 		  Trustee/Officer Since(h)   Number of MFS Funds for which the Person is an Officer   Principal Occupations During
the Past Five Years
OFFICERS                
Christopher R. Bohane (k)
(age 49) 		  Assistant Secretary and Assistant Clerk   July 2005   136   Massachusetts Financial Services Company, Senior Vice President and Senior Managing Counsel
Kino Clark (k)
(age 55) 		  Assistant Treasurer   January 2012   136   Massachusetts Financial Services Company, Vice President
John W. Clark, Jr. (k)
(age 56) 		  Assistant Treasurer   April 2017   136   Massachusetts Financial Services Company, Vice President
David L. DiLorenzo (k)
(age 55) 		  President   July 2005   136   Massachusetts Financial Services Company, Senior Vice President
Heidi W. Hardin (k)
(age 56) 		  Secretary and Clerk   April 2017   136   Massachusetts Financial Services Company, Executive Vice President and General Counsel
Brian E. Langenfeld (k)
(age 50) 		  Assistant Secretary and Assistant Clerk   June 2006   136   Massachusetts Financial Services Company, Vice President and Managing Counsel
55
Trustees and Officers - continued
Name, Age   Position(s) Held with
Fund 		  Trustee/Officer Since(h)   Number of MFS Funds for which the Person is an Officer   Principal Occupations During
the Past Five Years
Rosa E. Licea-Mailloux (k)
(age 47) 		  Chief Compliance Officer   March 2022   136   Massachusetts Financial Services Company, Vice President (since 2018); Director of Corporate Compliance (2018-2021), Senior Director Compliance (2021-2022), Senior Managing Director of North American Compliance & Chief Compliance Officer (since March 2022); Natixis Investment Managers (investment management), Funds Chief Compliance Officer, Deputy General Counsel & Senior Vice President (until 2018)
Amanda S. Mooradian (k)
(age 44) 		  Assistant Secretary and Assistant Clerk   September 2018   136   Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel
Susan A. Pereira (k)
(age 53) 		  Assistant Secretary and Assistant Clerk   July 2005   136   Massachusetts Financial Services Company, Vice President and Managing Counsel
Kasey L. Phillips (k)
(age 52) 		  Assistant Treasurer   September 2012   136   Massachusetts Financial Services Company, Vice President
Matthew A. Stowe (k)
(age 49) 		  Assistant Secretary and Assistant Clerk   October 2014   136   Massachusetts Financial Services Company, Vice President and Senior Managing Counsel
William B. Wilson (k)
(age 41) 		  Assistant Secretary and Assistant Clerk   October 2022   136   Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel
James O. Yost (k)
(age 63) 		  Treasurer   September 1990   136   Massachusetts Financial Services Company, Senior Vice President
(h) Date first appointed to serve as Trustee/Officer of an MFS Fund. Each Trustee has served continuously since appointment unless indicated otherwise. From January 2012 through December 2016, Messrs. DiLorenzo and Yost served as Treasurer and Deputy Treasurer of the Funds, respectively.
(j) Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”).
(k) “Interested person” of the Trust within the meaning of the Investment Company Act of 1940 (referred to as the 1940 Act), which is the principal federal law governing investment companies like the fund, as a result of a position with MFS. The address of MFS is 111 Huntington Avenue, Boston, Massachusetts 02199-7618.
56
Trustees and Officers - continued
Each Trustee (other than Messrs. Jones, Kilman and Roberge) has been elected by shareholders and each Trustee and Officer holds office until his or her successor is chosen and qualified or until his or her earlier death, resignation, retirement or removal. Mr. Roberge became a Trustee of the Funds on January 1, 2021 and Messrs. Jones and Kilman became Trustees of the Funds on January 1, 2019. The Trust does not hold annual meetings for the purpose of electing Trustees, and Trustees are not elected for fixed terms. Under the terms of the Board's retirement policy, an Independent Trustee shall retire at the end of the calendar year in which he or she reaches the earlier of 75 years of age or 15 years of service on the Board (or, in the case of any Independent Trustee who joined the Board prior to 2015, 20 years of service on the Board).
Messrs. Buller, Kilman and Otis and Ms. Roepke are members of the Trust’s Audit Committee.
Each of the Interested Trustees and certain Officers hold comparable officer positions with certain affiliates of MFS.
Investment Adviser Custodian
Massachusetts Financial Services Company
111 Huntington Avenue
Boston, MA 02199-7618 		State Street Bank and Trust Company
1 Congress Street, Suite 1
Boston, MA 02114-2016
    
Distributor Independent Registered Public Accounting Firm
MFS Fund Distributors, Inc.
111 Huntington Avenue
Boston, MA 02199-7618 		Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116
    
Portfolio Manager(s)  
Neeraj Arora
Ward Brown
Matt Ryan 		 
57
Board Review of Investment Advisory Agreement
MFS Emerging Markets Debt Local Currency Fund
The Investment Company Act of 1940 requires that both the full Board of Trustees and a majority of the non-interested (“independent”) Trustees, voting separately, annually approve the continuation of the Fund’s investment advisory agreement with MFS.  The Trustees consider matters bearing on the Fund and its advisory arrangements at their meetings throughout the year, including a review of performance data at each regular meeting.  In addition, the independent Trustees met several times over the course of three months beginning in May and ending in July, 2023 (“contract review meetings”) for the specific purpose of considering whether to approve the continuation of the investment advisory agreement for the Fund and the other investment companies that the Board oversees (the “MFS Funds”).  The independent Trustees were assisted in their evaluation of the Fund’s investment advisory agreement by independent legal counsel, from whom they received separate legal advice and with whom they met separately from MFS during various contract review meetings.  The independent Trustees were also assisted in this process by an independent consultant who was retained by and reported to the independent Trustees.
In connection with their deliberations regarding the continuation of the investment advisory agreement, the Trustees, including the independent Trustees, considered such information and factors as they believed, in light of the legal advice furnished to them and their own business judgment, to be relevant.  The investment advisory agreement for the Fund was considered separately, although the Trustees also took into account the common interests of all MFS Funds in their review.  As described below, the Trustees considered the nature, quality, and extent of the various investment advisory, administrative, and shareholder services performed by MFS under the existing investment advisory agreement and other arrangements with the Fund.
In connection with their contract review meetings, the Trustees received and relied upon materials that included, among other items: (i) information provided by Broadridge Financial Solutions, Inc. (“Broadridge”), an independent third party, on the investment performance of the Fund for various time periods ended December 31, 2022 and the investment performance of a group of funds with substantially similar investment classifications/objectives (the “Broadridge performance universe”), (ii) information provided by Broadridge on the Fund’s advisory fees and other expenses and the advisory fees and other expenses of comparable funds identified by Broadridge as well as all other funds in the same investment classification/category (the “Broadridge expense group and universe”), (iii) information provided by MFS on the advisory fees of portfolios of other clients of MFS, including institutional separate accounts and other clients, (iv) information as to whether and to what extent applicable expense waivers, reimbursements or fee “breakpoints” are observed for the Fund, (v) information regarding MFS’ financial results and financial condition, including MFS’ and certain of its affiliates’ estimated profitability from services performed for the Fund and the MFS Funds as a whole, and compared to MFS’ institutional business, (vi) MFS’ views regarding the outlook for the mutual fund industry and the strategic business plans of MFS, (vii) descriptions of various functions performed by MFS for the Funds, such as compliance monitoring and portfolio trading practices, and (viii) information regarding the overall organization of MFS, including information about
58
Board Review of Investment Advisory Agreement - continued
MFS’ senior management and other personnel providing investment advisory, administrative and other services to the Fund and the other MFS Funds.  The comparative performance, fee and expense information prepared and provided by Broadridge was not independently verified and the independent Trustees did not independently verify any information provided to them by MFS.
The Trustees’ conclusion as to the continuation of the investment advisory agreement was based on a comprehensive consideration of all information provided to the Trustees and not the result of any single factor.  Some of the factors that figured particularly in the Trustees’ deliberations are described below, although individual Trustees may have evaluated the information presented differently from one another, giving different weights to various factors.  It is also important to recognize that the fee arrangements for the Fund and other MFS Funds are the result of years of review and discussion between the independent Trustees and MFS, that certain aspects of such arrangements may receive greater scrutiny in some years than in others, and that the Trustees’ conclusions may be based, in part, on their consideration of these same arrangements during the course of the year and in prior years.
Based on information provided by Broadridge and MFS, the Trustees reviewed the Fund’s total return investment performance as well as the Broadridge performance universe over various time periods.  The Trustees placed particular emphasis on the total return performance of the Fund’s Class I shares in comparison to the performance of funds in its Broadridge performance universe over the five-year period ended December 31, 2022, which the Trustees believed was a long enough period to reflect differing market conditions.  The total return performance of the Fund’s Class I shares was in the 1st quintile relative to the other funds in the universe for this five-year period (the 1st quintile being the best performers and the 5th quintile being the worst performers).  The total return performance of the Fund’s Class I shares was in the 2nd quintile for each of the one- and three-year periods ended December 31, 2022 relative to the Broadridge performance universe.  Because of the passage of time, these performance results may differ from the performance results for more recent periods, including those shown elsewhere in this report.
In the course of their deliberations, the Trustees took into account information provided by MFS in connection with the contract review meetings, as well as during investment review meetings conducted with portfolio management personnel during the course of the year regarding the Fund’s performance.  After reviewing these and related factors, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that they were satisfied with MFS’ responses and efforts relating to investment performance.
In assessing the reasonableness of the Fund’s advisory fee, the Trustees considered, among other information, the Fund’s advisory fee and the total expense ratio of the Fund’s Class I shares as a percentage of average daily net assets and the advisory fee and total expense ratios of the Broadridge expense group based on information provided by Broadridge.  The Trustees considered that MFS currently observes an expense limitation for the Fund, which may not be changed without the Trustees’ approval.  The Trustees also considered that, according to the data provided by
59
Board Review of Investment Advisory Agreement - continued
Broadridge (which takes into account any fee reductions or expense limitations that were in effect during the Fund’s last fiscal year), the Fund’s effective advisory fee rate and total expense ratio were each approximately at the Broadridge expense group median.
The Trustees also considered the advisory fees charged by MFS to any institutional separate accounts advised by MFS (“separate accounts”) and unaffiliated investment companies for which MFS serves as subadviser (“subadvised funds”) that have comparable investment strategies to the Fund, if any.  In comparing these fees, the Trustees considered information provided by MFS as to the generally broader scope of services provided by MFS to the Fund, as well as the more extensive regulatory burdens imposed on MFS in managing the Fund, in comparison to separate accounts and subadvised funds.  The Trustees also considered the higher demands placed on MFS’ investment personnel and trading infrastructure as a result of the daily cash in-flows and out-flows of the Fund in comparison to separate accounts.
The Trustees also considered whether the Fund may benefit from any economies of scale in the management of the Fund in the event of growth in assets of the Fund and/or growth in assets of the MFS Funds as a whole.  They noted that the Fund’s advisory fee rate schedule is subject to contractual breakpoints that reduce the Fund’s advisory fee rate on average daily net assets over $1 billion and $2.5 billion.  The Trustees also noted that MFS has agreed in writing to waive a portion of the management fees of certain MFS Funds, including the Fund, if the total combined assets of certain funds within the MFS Funds’ complex increase above agreed upon thresholds (the “group fee waiver”), enabling the Fund’s shareholders to share in the benefits from any economies of scale at the complex level.  The group fee waiver is reviewed and renewed annually between the Board and MFS.  The Trustees concluded that the breakpoints and the group fee waiver were sufficient to allow the Fund to benefit from economies of scale as its assets and overall complex assets grow.
The Trustees also considered information prepared by MFS relating to MFS’ costs and profits with respect to the Fund, the MFS Funds considered as a group, and other investment companies and accounts advised by MFS, as well as MFS’ methodologies used to determine and allocate its costs to the MFS Funds, the Fund and other accounts and products for purposes of estimating profitability.
After reviewing these and other factors described herein, the Trustees concluded, within the context of their overall conclusions regarding the investment advisory agreement, that the advisory fees charged to the Fund represent reasonable compensation in light of the services being provided by MFS to the Fund.
In addition, the Trustees considered MFS’ resources and related efforts to continue to retain, attract and motivate capable personnel to serve the Fund.  The Trustees also considered current and developing conditions in the financial services industry, including the presence of large and well-capitalized companies which are spending, and appear to be prepared to continue to spend, substantial sums to engage personnel and to provide services to competing investment companies.  In this regard, the Trustees also considered the financial resources of MFS and its ultimate parent, Sun Life Financial Inc.  The Trustees also considered the advantages and possible disadvantages to the Fund of having an adviser that also serves other investment companies as well as other accounts.
60
Board Review of Investment Advisory Agreement - continued
The Trustees also considered the nature, quality, cost, and extent of administrative, transfer agency, and distribution services provided to the Fund by MFS and its affiliates under agreements and plans other than the investment advisory agreement, including any 12b-1 fees the Fund pays to MFS Fund Distributors, Inc., an affiliate of MFS.  The Trustees also considered the nature, extent and quality of certain other services MFS performs or arranges for on the Fund’s behalf, which may include securities lending programs, directed expense payment programs, class action recovery programs, and MFS’ interaction with third-party service providers, principally custodians and sub-custodians.  The Trustees concluded that the various non-advisory services provided by MFS and its affiliates on behalf of the Fund were satisfactory.
The Trustees considered so-called “fall-out benefits” to MFS such as reputational value derived from serving as investment manager to the MFS Funds.  The Trustees also considered that MFS discontinued its historic practice of obtaining investment research from portfolio brokerage commissions paid by certain MFS Funds effective January 2018, and directly pays or voluntarily reimburses a Fund, if applicable, for the costs of external research acquired through the use of the Fund’s portfolio brokerage commissions.
Based on their evaluation of factors that they deemed to be material, including those factors described above, the Board of Trustees, including the independent Trustees, concluded that the Fund’s investment advisory agreement with MFS should be continued for an additional one-year period, commencing August 1, 2023.
61
Proxy Voting Policies and Information
MFS votes proxies on behalf of the fund pursuant to proxy voting policies and procedures that are available without charge, upon request, by calling 1-800-225-2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s Web site at http://www.sec.gov.
Information regarding how the fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available by August 31 of each year without charge by visiting mfs.com/proxyvoting, or by visiting the SEC’s Web site at http://www.sec.gov.
Quarterly Portfolio Disclosure
The fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund's Form N-PORT reports are available on the SEC's Web site at  http://www.sec.gov. A shareholder can obtain the portfolio holdings report for the first and third quarters of the fund's fiscal year at mfs.com/openendfunds by choosing the fund's name and then scrolling to the “Resources” section and clicking on the “Prospectus and Reports” tab.
Further Information
From time to time, MFS may post important information about the fund or the MFS Funds on the MFS Web site (mfs.com). This information is available at https://www.mfs.com/announcements or at mfs.com/openendfunds by choosing the fund’s name and then scrolling to the “Resources” section and clicking on the “Announcements” tab, if any.
Information About Fund Contracts and Legal Claims
The fund has entered into contractual arrangements with an investment adviser, administrator, distributor, shareholder servicing agent, and custodian who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the fund.
Under the Trust’s By-Laws and Declaration of Trust, any claims asserted against or on behalf of the MFS Funds, including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.
Federal Tax Information (unaudited)
The fund will notify shareholders of amounts for use in preparing 2023 income tax forms in January 2024. The following information is provided pursuant to provisions of the Internal Revenue Code.
The fund intends to pass through the maximum amount allowable as Section 163(j) Interest Dividends as defined in Treasury Regulation §1.163(j)-1(b).
62
rev. 3/16
FACTS WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION?
    
Why? Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
    
What? The types of personal information we collect and share depend on the product or service you have with us. This information can include:
• Social Security number and account balances
• Account transactions and transaction history
• Checking account information and wire transfer instructions
When you are no longer our customer, we continue to share your information as described in this notice.
    
How? All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MFS chooses to share; and whether you can limit this sharing.
    
Reasons we can share your
personal information 		Does MFS share? Can you limit
this sharing?
For our everyday business purposes –
such as to process your transactions, maintain your
account(s), respond to court orders and legal
investigations, or report to credit bureaus 		Yes No
For our marketing purposes –
to offer our products and services to you 		No We don't share
For joint marketing with other
financial companies 		No We don't share
For our affiliates' everyday business purposes –
information about your transactions and experiences 		No We don't share
For our affiliates' everyday business purposes –
information about your creditworthiness 		No We don't share
For nonaffiliates to market to you No We don't share
    
Questions? Call 800-225-2606 or go to mfs.com.
63
Page 2
Who we are
Who is providing this notice? MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company.
    
What we do
How does MFS
protect my personal
information? 		To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you.
How does MFS
collect my personal
information? 		We collect your personal information, for example, when you
• open an account or provide account information
• direct us to buy securities or direct us to sell your securities
• make a wire transfer
We also collect your personal information from others, such as credit bureaus, affiliates, or other companies.
Why can't I limit all sharing? Federal law gives you the right to limit only
• sharing for affiliates' everyday business purposes – information about your creditworthiness
• affiliates from using your information to market to you
• sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing.
    
Definitions
Affiliates Companies related by common ownership or control. They can be financial and nonfinancial companies.
• MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice.
Nonaffiliates Companies not related by common ownership or control. They can be financial and nonfinancial companies.
• MFS does not share with nonaffiliates so they can market to you.
Joint marketing A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
• MFS doesn't jointly market.
    
Other important information
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours.
64
Save paper with eDelivery.
MFS® will send you prospectuses, reports, and proxies directly via e-mail so you will get information faster with less mailbox clutter.
To sign up:
1. Go to mfs.com.
2. Log in via MFS® Access.
3. Select eDelivery.
If you own your MFS fund shares through a financial institution or a retirement plan, MFS® TALK, MFS® Access, or eDelivery may not be available to you.
CONTACT
WEB SITE
mfs.com
MFS TALK
1-800-637-8255
24 hours a day
ACCOUNT SERVICE AND LITERATURE
Shareholders
1-800-225-2606
Financial advisors
1-800-343-2829
Retirement plan services
1-800-637-1255
MAILING ADDRESS
MFS Service Center, Inc.
P.O. Box 219341
Kansas City, MO 64121-9341
OVERNIGHT MAIL
MFS Service Center, Inc.
Suite 219341
430 W 7th Street
Kansas City, MO 64105-1407

Item 1(b):

Not applicable.

ITEM 2. CODE OF ETHICS.

The Registrant has adopted a Code of Ethics (the "Code") pursuant to Section 406 of the Sarbanes-Oxley Act and as defined in Form N-CSR that applies to the Registrant's principal executive officer and principal financial and accounting officer. During the period covered by this report, the Registrant has not amended any provision in the Code that relates to an element of the Code's definition enumerated in paragraph

(b)of Item 2 of this Form N-CSR. During the period covered by this report, the Registrant did not grant a waiver, including an implicit waiver, from any provision of the Code.

A copy of the Code is attached hereto as EX-99.COE.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Messrs. Steven E. Buller, James Kilman, and Clarence Otis, Jr. and Ms. Maryanne L. Roepke, members of the Audit Committee, have been determined by the Board of Trustees in their reasonable business judgment to meet the definition of "audit committee financial expert" as such term is defined in Form N-CSR. In addition, Messrs. Buller, Kilman, and Otis and Ms. Roepke are "independent" members of the Audit Committee (as such term has been defined by the Securities and Exchange Commission in regulations implementing Section 407 of the Sarbanes-Oxley Act of 2002). The Securities and Exchange Commission has stated that the designation of a person as an audit committee financial expert pursuant to this Item 3 on the Form N-CSR does not impose on such a person any duties, obligations or liability that are greater than the duties, obligations or liability imposed on such person as a member of the Audit Committee and the Board of Trustees in the absence of such designation or identification.

 

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Items 4(a) through 4(d) and 4(g):

The Board of Trustees has appointed Ernst & Young LLP ("E&Y") to serve as independent accountants to certain series of the Registrant. The tables below set forth the audit fees billed to the series of the Registrant with a fiscal year end of October 31, 2023 (the "Fund") as well as fees for non-audit services provided to the Fund and/or to the Fund's investment adviser, Massachusetts Financial Services Company ("MFS") and to various entities either controlling, controlled by, or under common control with MFS that provide ongoing services to the Fund ("MFS Related Entities").

For the fiscal years ended October 31, 2023 and 2022, audit fees billed to the Fund by E&Y were as follows:

Fees billed by E&Y:

 

Audit Fees

 

2023

 

2022

MFS Emerging Markets Debt Local

70,198

 

64,939

Currency Fund

 

 

 

For the fiscal years ended October 31, 2023 and 2022, fees billed by E&Y for audit-related, tax and other services provided to the Fund and for audit-related, tax and other services provided to MFS and MFS Related Entities were as follows:

Fees billed by E&Y:

Audit-Related Fees1

 

Tax Fees2

All Other Fees3

 

 

2023

2022

 

2023

2022

2023

 

2022

 

To MFS Emerging Markets

0

0

 

259

255

0

 

69

 

Debt Local Currency Fund

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees billed by E&Y:

Audit-Related Fees1

 

Tax Fees2

All Other Fees3

 

2023

2022

 

2023

2022

2023

 

2022

 

To MFS and MFS Related

 

 

 

 

 

 

 

 

 

 

 

Entities of MFS Emerging

0

662,511

 

0

0

 

3,600

 

111,415

 

Markets Debt Local Currency

 

 

 

 

 

 

 

 

 

 

 

Trust*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees Billed by E&Y:

 

 

 

Aggregate Fees for Non-audit Services

 

 

 

 

 

 

2023

 

 

2022

 

 

To MFS Emerging Markets Debt Local

 

 

 

 

 

 

 

 

 

 

Currency Fund, MFS and MFS Related

 

 

298,609

 

 

904,680

 

 

Entities #

 

 

 

 

 

 

 

 

 

 

 

*This amount reflects the fees billed to MFS and MFS Related Entities for non-audit services relating directly to the operations and financial reporting of the Fund (portions of which services also related to the operations and financial reporting of other funds within the MFS Funds complex).

# This amount reflects the aggregate fees billed by E&Y for non-audit services rendered to the Fund and for non-audit services rendered to MFS and the MFS Related Entities.

1 The fees included under "Audit-Related Fees" are fees related to assurance and related services that are reasonably related to the performance of the audit or review of financial statements, but not reported under ''Audit Fees,'' including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters and internal control reviews.

2 The fees included under "Tax Fees" are fees associated with tax compliance, tax advice and tax planning, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews and tax distribution and analysis.

3 The fees included under "All Other Fees" are fees for products and services provided by E&Y other than those reported under "Audit Fees," "Audit-Related Fees" and "Tax Fees," including fees for services related to review of internal controls and review of Rule 38a-1 compliance program.

Item 4(e)(1):

Set forth below are the policies and procedures established by the Audit Committee of the Board of Trustees relating to the pre-approval of audit and non-audit related services:

To the extent required by applicable law, pre-approval by the Audit Committee of the Board is needed for all audit and permissible non-audit services rendered to the Funds and all permissible non-audit services rendered to MFS or MFS Related Entities if the services relate directly to the operations and financial reporting of the Registrant. Pre-approval is currently on an engagement-by-engagement basis. In the event pre-approval of such services is necessary between regular meetings of the Audit Committee and it is not practical to

 

wait to seek pre-approval at the next regular meeting of the Audit Committee, pre-approval of such services may be referred to the Chair of the Audit Committee for approval; provided that the Chair may not pre-approve any individual engagement for such services exceeding $50,000 or multiple engagements for such services in the aggregate exceeding $100,000 in each period between regular meetings of the Audit Committee. Any engagement pre-approved by the Chair between regular meetings of the Audit Committee shall be presented for ratification by the entire Audit Committee at its next regularly scheduled meeting.

Item 4(e)(2):

None, or 0%, of the services relating to the Audit-Related Fees, Tax Fees and All Other Fees paid by the Fund and MFS and MFS Related Entities relating directly to the operations and financial reporting of the Registrant disclosed above were approved by the audit committee pursuant to paragraphs (c)(7)(i)(C) of Rule 2-01 of Regulation S-X (which permits audit committee approval after the start of the engagement with respect to services other than audit, review or attest services, if certain conditions are satisfied).

Item 4(f):

Not applicable.

Item 4(h):

The Registrant's Audit Committee has considered whether the provision by a Registrant's independent registered public accounting firm of non-audit services to MFS and MFS Related Entities that were not pre-approved by the Committee (because such services did not relate directly to the operations and financial reporting of the Registrant) was compatible with maintaining the independence of the independent registered public accounting firm as the Registrant's principal auditors.

Item 4(i):

Not applicable.

Item 4(j):

Not applicable.

 

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable to the Registrant.

ITEM 6. INVESTMENTS

A schedule of investments for each series covered by this Form N-CSR is included as part of the report to shareholders of such series under Item 1(a) of this Form N-CSR.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the Registrant.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the Registrant.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable to the Registrant.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There were no material changes to the procedures by which shareholders may send recommendations to the Board for nominees to the Registrant's Board since the Registrant last provided disclosure as to such procedures in response to the requirements of Item 407 (c)(2)(iv) of Regulation S-K or this Item.

ITEM 11. CONTROLS AND PROCEDURES.

(a)Based upon their evaluation of the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) as conducted within 90 days of the filing date of this report on Form N-CSR, the Registrant's principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the Registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.

(b)There were no changes in the Registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by the report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the Registrant.

ITEM 13. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.

Not Applicable.

ITEM 14. EXHIBITS.

(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Attached hereto as EX-99.COE.

(2)A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto as EX-99.302CERT.

(3)Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable.

(4)Change in the registrant's independent public accountant. Not applicable.

 

(b)If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for the purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Attached hereto as EX-99.906CERT.

 

Notice

A copy of the Amended and Restated Declaration of Trust, as amended, of the Registrant is on file with the Secretary of State of The Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and the obligations of or arising out of this instrument are not binding upon any of the Trustees or shareholders individually, but are binding only upon the assets and property of the respective constituent series of the Registrant.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) MFS SERIES TRUST X

By (Signature and Title)*

/S/ DAVID L. DILORENZO

David L. DiLorenzo, President

Date: December 14, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*

/S/ DAVID L. DILORENZO

David L. DiLorenzo, President (Principal Executive Officer)

Date: December 14, 2023

By (Signature and Title)*

/S/ JAMES O. YOST

James O. Yost, Treasurer (Principal Financial Officer and Accounting Officer) Date: December 14, 2023

* Print name and title of each signing officer under his or her signature.