0001193125-11-146094.txt : 20110520 0001193125-11-146094.hdr.sgml : 20110520 20110520104630 ACCESSION NUMBER: 0001193125-11-146094 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20110331 FILED AS OF DATE: 20110520 DATE AS OF CHANGE: 20110520 EFFECTIVENESS DATE: 20110520 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GLOBAL GOVERNMENTS VARIABLE ACCOUNT CENTRAL INDEX KEY: 0000827118 IRS NUMBER: 042461439 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-05450 FILM NUMBER: 11860057 BUSINESS ADDRESS: STREET 1: 500 BOYLSTON ST CITY: BOSTON STATE: MA ZIP: 02116 BUSINESS PHONE: 6179545244 MAIL ADDRESS: STREET 1: 500 BOYLSTON ST CITY: BOSTON STATE: MA ZIP: 02116 FORMER COMPANY: FORMER CONFORMED NAME: WORLD GOVERNMENTS VARIABLE ACCOUNT DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: GOVERNMENT MARKETS VARIABLE ACCOUNT DATE OF NAME CHANGE: 19890823 0000827118 S000002621 GLOBAL GOVERNMENTS VARIABLE ACCOUNT C000007210 Compass 2 C000007211 Compass 3 C000007212 Compass 3 - Level 2 N-Q 1 dnq.htm GLOBAL GOVERNMENTS VARIABLE ACCOUNT N-Q GLOBAL GOVERNMENTS VARIABLE ACCOUNT N-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05450

GLOBAL GOVERNMENTS VARIABLE ACCOUNT

(Exact name of registrant as specified in charter)

500 Boylston Street, Boston, Massachusetts 02116

(Address of principal executive offices) (Zip code)

Susan S. Newton

Massachusetts Financial Services Company

500 Boylston Street

Boston, Massachusetts 02116

(Name and address of agents for service)

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

Date of fiscal year end: December 31

Date of reporting period: March 31, 2011


ITEM 1. SCHEDULE OF INVESTMENTS.


LOGO


PORTFOLIO OF INVESTMENTS 3/31/11 (unaudited)

Global Governments Variable Account

 

Issuer           Shares/Par      Value ($)  

BONDS - 93.5%

  

Foreign Bonds - 66.4%

  

Australia - 0.6%

  

Commonwealth of Australia, 5.75%, 2021

     AUD         36,000       $ 37,964   
              

Austria - 1.0%

  

Republic of Austria, 4.65%, 2018

     EUR         40,000       $ 60,877   
              

Belgium - 0.4%

        

Kingdom of Belgium, 5.5%, 2017

     EUR         17,000       $ 26,319   
              

Canada - 3.0%

        

Bayview Commercial Asset Trust, FRN, 1.701%, 2023 (z)

     CAD         30,000       $ 26,095   

Canada Housing Trust, 4.6%, 2011 (n)

     CAD         57,000         59,704   

Government of Canada, 4.25%, 2018

     CAD         72,000         79,894   

Government of Canada, 5.75%, 2033

     CAD         10,000         13,378   
              
         $ 179,071   
              

Finland - 2.7%

  

Republic of Finland, 3.875%, 2017

     EUR         109,000       $ 160,453   
              

France - 2.5%

  

Republic of France, 6%, 2025

     EUR         49,000       $ 84,931   

Republic of France, 4.75%, 2035

     EUR         42,000         64,526   
              
         $ 149,457   
              

Germany - 12.6%

  

Federal Republic of Germany, 3.75%, 2013

     EUR         185,000       $ 273,000   

Federal Republic of Germany, 3.75%, 2015

     EUR         218,000         324,456   

Federal Republic of Germany, 4.25%, 2018

     EUR         56,000         85,246   

Federal Republic of Germany, 6.25%, 2030

     EUR         40,000         74,710   
              
         $ 757,412   
              

Italy - 11.1%

  

Buoni Poliennali del Tes, 3.75%, 2021

     EUR         59,000       $ 76,984   

Republic of Italy, 4.75%, 2013

     EUR         224,000         329,103   

Republic of Italy, 5.25%, 2017

     EUR         176,000         263,502   
              
         $ 669,589   
              

Japan - 22.7%

        

Government of Japan, 1.7%, 2017

     JPY         51,800,000       $ 661,633   

Government of Japan, 1.1%, 2020

     JPY         3,000,000         35,938   

Government of Japan, 2.1%, 2024

     JPY         21,350,000         271,473   

Government of Japan, 2.2%, 2027

     JPY         23,700,000         298,206   

Government of Japan, 2.4%, 2037

     JPY         8,000,000         100,944   
              
         $ 1,368,194   
              

Netherlands - 3.4%

        

Kingdom of the Netherlands, 3.75%, 2014

     EUR         119,000       $ 176,185   
Issuer           Shares/Par      Value ($)  

BONDS - continued

  

Foreign Bonds - continued

  

Netherlands - continued

  

Kingdom of the Netherlands, 5.5%, 2028

     EUR         19,000       $ 32,153   
              
         $ 208,338   
              

Norway - 0.6%

  

Eksportfinans A.S.A., 1.875%, 2013

      $ 35,000       $ 35,495   
              

Spain - 1.0%

  

Kingdom of Spain, 4.6%, 2019

     EUR         44,000       $ 60,528   
              

Sweden - 0.5%

  

Kingdom of Sweden, 5%, 2020

     SEK         170,000       $ 30,532   
              

United Kingdom - 4.3%

  

United Kingdom Treasury, 8%, 2015

     GBP         36,000       $ 71,874   

United Kingdom Treasury, 8%, 2021

     GBP         5,100         11,157   

United Kingdom Treasury, 4.25%, 2027

     GBP         51,000         82,214   

United Kingdom Treasury, 4.25%, 2036

     GBP         61,000         96,132   
              
         $ 261,377   
              

Total Foreign Bonds

         $ 4,005,606   
              

U.S. Bonds - 27.1%

  

Asset-Backed & Securitized - 1.1%

  

Commercial Mortgage Asset Trust, FRN, 0.748%, 2032 (i)(z)

      $ 791,476       $ 9,994   

Commercial Mortgage Pass-Through Certificates, FRN, 0.445%, 2017 (n)

        59,000         57,166   

First Union National Bank Commercial Mortgage Trust, FRN, 0.914%, 2043 (i)(n)

        149,599         121   
              
         $ 67,281   
              

Mortgage-Backed - 4.0%

  

Fannie Mae, 4.77%, 2012

      $ 36,041       $ 37,270   

Fannie Mae, 5.37%, 2013

        23,275         24,311   

Fannie Mae, 4.78%, 2015

        22,812         24,413   

Fannie Mae, 5.5%, 2015

        8,886         9,355   

Fannie Mae, 5.09%, 2016

        25,000         26,848   

Fannie Mae, 5.424%, 2016

        22,880         24,867   

Fannie Mae, 5.16%, 2018

        23,820         25,725   

Fannie Mae, 5.1%, 2019

        10,747         11,449   

Fannie Mae, 5.18%, 2019

        10,751         11,483   

Fannie Mae, 6.16%, 2019

        9,117         10,074   

Freddie Mac, 3.882%, 2017

        10,000         10,179   

Freddie Mac, 5.085%, 2019

        10,000         10,432   

Freddie Mac, 5%, 2028

        12,005         12,242   
              
         $ 238,648   
              

U.S. Government Agencies and Equivalents - 2.7%

  

Aid-Egypt, 4.45%, 2015

      $ 49,000       $ 53,339   

Small Business Administration, 4.57%, 2025

        29,147         30,587   
 

 

1


PORTFOLIO OF INVESTMENTS 3/31/11 (unaudited) - continued

Global Governments Variable Account

 

Issuer    Shares/Par      Value ($)  

BONDS - continued

  

U.S. Bonds - continued

  

U.S. Government Agencies and Equivalents - continued

  

Small Business Administration, 5.21%, 2026

   $ 74,619       $ 79,576   
           
      $ 163,502   
           

U.S. Treasury Obligations - 19.3%

  

U.S. Treasury Bonds, 6.875%, 2025

   $ 76,000       $ 100,035   

U.S. Treasury Bonds, 5.25%, 2029

     86,000         96,858   

U.S. Treasury Bonds, 4.5%, 2039

     17,100         17,095   

U.S. Treasury Notes, 1.375%, 2013

     105,000         106,218   
Issuer    Shares/Par      Value ($)  

BONDS - continued

  

U.S. Bonds - continued

  

U.S. Treasury Obligations - continued

  

U.S. Treasury Notes, 4.125%, 2015

   $ 165,000       $ 180,159   

U.S. Treasury Notes, 4.75%, 2017

     189,000         211,857   

U.S. Treasury Notes, 3.5%, 2020

     202,000         204,731   

U.S. Treasury Notes, TIPS, 1.25%, 2020

     238,313         246,114   
           
      $ 1,163,067   
           

Total U.S. Bonds

      $ 1,632,498   
           

Total Bonds

      $ 5,638,104   
           

MONEY MARKET FUNDS (v) - 5.9%

  

MFS Institutional Money Market

  

Portfolio, 0.19%, at Net Asset Value

     356,348       $ 356,348   
           

Total Investments

      $ 5,994,452   
           

OTHER ASSETS, LESS LIABILITIES - 0.6%

        33,285   
           

NET ASSETS - 100.0%

      $ 6,027,737   
           

 

 

 

(i) Interest only security for which the variable account receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security.
(n) Securities exempt from registration under Rule 144A of the Securities Act of 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 $116,991 representing 1.9% of net assets.
(v) Underlying affiliated fund that is available only to investment companies managed by MFS. The rate quoted is the annualized seven-day yield of the fund at period end.
(z) Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The variable account holds the following restricted securities:

 

     Acquisition                

Restricted Securities

   Date      Cost      Value  

Bayview Commercial Asset Trust, FRN, 1.701%, 2023

     5/25/06       $ 30,044       $ 26,095   

Commercial Mortgage Asset Trust, FRN, 0.748%, 2032

     8/25/03         19,355         9,994   
              

Total Restricted Securities

         $ 36,089   

% of Net Assets

           0.6

The following abbreviations are used in this report and are defined:

 

FRN    Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end.
TIPS    Treasury Inflation Protected Security

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
CAD    Canadian Dollar
CHF    Swiss Franc
CNY    Chinese Yuan Renminbi
DKK    Danish Krone
EUR    Euro
GBP    British Pound
IDR    Indonesian Rupiah
JPY    Japanese Yen
MXN    Mexican Peso
NOK    Norwegian Krone
NZD    New Zealand Dollar

 

2


PORTFOLIO OF INVESTMENTS 3/31/11 (unaudited) - continued

Global Governments Variable Account

 

PHP    Philippine Peso
SEK    Swedish Krona
SGD    Singapore Dollar
ZAR    South African Rand

See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.

 

3


Global Governments Variable Account

Supplemental Information (Unaudited) 3/31/11

(1) Investment Valuations

Debt instruments and floating rate loans (other than short-term instruments), including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less generally are valued at amortized cost, which approximates market value. 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. Open-end investment companies are generally valued at net asset value per share. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. Values obtained from third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. The values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and asked prices for rates provided by a third-party pricing service.

The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the variable account’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under the variable account’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially effected 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 variable account’s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. 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 variable account’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 variable account’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the variable account could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the variable account determines its net asset value per share.

Various inputs are used in determining the value of the variable account’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 variable account’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments not reflected in total investments, such as forward foreign currency exchange contracts. The following is a summary of the levels used as of March 31, 2011 in valuing the variable account’s assets or liabilities:

 

Investments at Value

   Level 1      Level 2      Level 3      Total  

U.S. Treasury Bonds & U.S. Government Agency & Equivalents

   $ —         $ 1,326,569       $ —         $ 1,326,569   

Non-U.S. Sovereign Debt

     —           3,979,511         —           3,979,511   

Residential Mortgage-Backed Securities

     —           238,648         —           238,648   

Commercial Mortgage-Backed Securities

     —           93,376         —           93,376   

Mutual Funds

     356,348         —           —           356,348   
                                   

Total Investments

   $ 356,348       $ 5,638,104       $ —         $ 5,994,452   
                                   

Other Financial Instruments

                           

Forward Foreign Currency Exchange Contracts

   $ —         $ 763       $ —         $ 763   

For further information regarding security characteristics, see the Portfolio of Investments.

 

4


Global Governments Variable Account

Supplemental Information (Unaudited) 3/31/11 - continued

(2) Derivative Contracts at 3/ 31/11

Forward Foreign Currency Exchange Contracts at 3/31/11

 

Type

   Currency   

Counterparty

   Contracts to
Deliver/Receive
     Settlement Date
Range
   In Exchange
For
     Contracts
at Value
     Net Unrealized
Appreciation
(Depreciation)
 

Asset Derivatives

  

BUY    AUD    Westpac Banking Corp      66,965       4/12/11    $ 66,360       $ 69,196       $ 2,836   
BUY    CAD    Barclays Bank PLC      10,000       4/12/11      10,238         10,312         74   
BUY    CAD    Brown Brothers Harriman Co.      2,000       4/12/11      2,022         2,062         40   
BUY    CAD    Goldman Sachs International      3,000       4/12/11      3,049         3,094         45   
BUY    CHF    Deutsche Bank AG      46,000       4/12/11      48,883         50,084         1,201   
BUY    CNY    HSBC Bank      6,000       4/18/11      916         917         1   
BUY    CNY    JPMorgan Case Bank N.A.      96,000       4/18/11      14,517         14,671         154   
BUY    DKK    Credit Suisse Group      213,472       4/12/11      37,549         40,570         3,021   
BUY    EUR    Barclays Bank PLC      44,000       4/12/11      59,835         62,348         2,513   
BUY    EUR    Brown Brothers Harriman Co.      26,000       4/12/11      36,079         36,842         763   
BUY    EUR    Citibank N.A.      42,000       4/12/11      57,737         59,514         1,777   
BUY    EUR    Credit Suisse Group      18,174       4/12/11      25,413         25,753         340   
BUY    EUR    Deutsche Bank AG      161,538       4/12/11      209,583         228,897         19,314   
BUY    EUR    HSBC Bank      44,000       4/12/11      59,475         62,348         2,873   
BUY    EUR    JPMorgan Case Bank N.A.      28,000       4/12/11      38,469         39,676         1,207   
BUY    EUR    UBS AG      8,000       4/12/11      10,872         11,336         464   
SELL    EUR    UBS AG      1,000       4/12/11      1,419         1,417         2   
BUY    GBP    Barclays Bank PLC      37,719       4/12/11      58,712         60,504         1,792   
BUY    GBP    Deutsche Bank AG      31,719       4/12/11      49,089         50,879         1,790   
BUY    GBP    Goldman Sachs International      1,000       4/12/11      1,597         1,604         7   
SELL    GBP    Barclays Bank PLC      5,536       4/12/11      9,000         8,881         119   
SELL    GBP    Brown Brothers Harriman Co.      5,000       4/12/11      8,164         8,020         144   
SELL    GBP    UBS AG      7,000       4/12/11      11,248         11,228         20   
BUY    IDR    Barclays Bank PLC      152,286,000       4/01/11      16,790         17,489         699   
BUY    IDR    HSBC Bank      133,218,000       5/11/11      14,786         15,208         422   
BUY    IDR    JPMorgan Case Bank N.A.      152,565,000       4/01/11      17,510         17,521         11   
SELL    JPY    Barclays Bank PLC      2,327,000       4/12/11      28,131         27,977         154   
SELL    JPY    Brown Brothers Harriman Co.      492,000       4/12/11      6,013         5,915         98   
SELL    JPY    Credit Suisse Group      2,904,000       4/12/11      35,275         34,914         361   
SELL    JPY    Deutsche Bank AG      2,252,000       4/12/11      27,591         27,075         516   
SELL    JPY    HSBC Bank      3,436,952       4/12/11      41,960         41,321         639   
SELL    JPY    JPMorgan Case Bank N.A.      2,784,168       4/12/11      34,219         33,473         746   
SELL    JPY    UBS AG      2,061,000       4/12/11      25,887         24,779         1,108   
BUY    MXN    JPMorgan Case Bank N.A.      191,000       4/12/11      15,500         16,047         547   
BUY    NOK    Barclays Bank PLC      83,000       4/12/11      14,112         15,002         890   
BUY    NOK    Deutsche Bank AG      94,000       4/12/11      15,975         16,990         1,015   
BUY    NZD    Westpac Banking Corp      27,000       4/12/11      19,934         20,590         656   
SELL    NZD    Westpac Banking Corp      27,000       4/12/11      20,934         20,590         344   
SELL    PHP    Barclays Bank PLC      702,000       5/03/11      16,179         16,151         28   
BUY    SEK    Credit Suisse Group      446,807       4/12/11      65,459         70,761         5,302   
BUY    SGD    Deutsche Bank AG      21,000       4/12/11      16,232         16,660         428   

 

5


Global Governments Variable Account

Supplemental Information (Unaudited) 3/31/11 - continued

Forward Foreign Currency Exchange Contracts at 3/31/11 - continued

 

BUY      SGD       JPMorgan Case Bank N.A.      20,000         5/06/11         15,722         15,867         145   
BUY      ZAR       Barclays Bank PLC      500         6/14/11         71         73         2   
BUY      ZAR       Deutsche Bank AG      500         6/14/11         71         73         2   
                          
                     $ 54,610   
                          

Liability Derivatives

  

SELL      AUD       Westpac Banking Corp      56,807         4/12/11       $ 56,147       $ 58,700       $ 2,553
BUY      CAD       Barclays Bank PLC      2,000         4/12/11         2,065         2,063         (2
SELL      CAD       Barclays Bank PLC      3,000         4/12/11         3,011         3,094         (83
SELL      CAD       Brown Brothers Harriman Co.      1,947         4/12/11         2,000         2,008         (8
SELL      CAD       Goldman Sachs International      71,317         4/12/11         71,807         73,543         (1,736
SELL      CHF       Citibank N.A.      18,000         4/12/11         18,805         19,598         (793
SELL      CHF       HSBC Bank      28,000         4/12/11         29,011         30,486         (1,475
SELL      DKK       Credit Suisse Group      3,000         4/12/11         542         570         (28
SELL      DKK       Royal Bank of Scotland PLC      4,000         4/12/11         729         760         (31
SELL      DKK       UBS AG      10,000         4/12/11         1,735         1,900         (165
BUY      EUR       UBS AG      52,359         4/12/11         74,432         74,192         (240
SELL      EUR       Barclays Bank PLC      4,000         4/12/11         5,390         5,668         (278
SELL      EUR       Brown Brothers Harriman Co.      10,000         4/12/11         13,626         14,170         (544
SELL      EUR       Citibank N.A.      39,000         4/12/11         53,079         55,263         (2,184
SELL      EUR       Credit Suisse Group      312,918         4/12/11         425,262         443,402         (18,140
SELL      EUR       HSBC Bank      81,033         4/12/11         109,119         114,822         (5,703
SELL      EUR       UBS AG      326,551         4/12/11-6/15/11         450,928         462,215         (11,287
BUY      GBP       Barclays Bank PLC      17,851         4/12/11         29,110         28,633         (477
SELL      GBP       Barclays Bank PLC      5,000         4/12/11         7,923         8,020         (97
SELL      IDR       Barclays Bank PLC      152,286,000         4/01/11         17,478         17,489         (11
SELL      IDR       JPMorgan Case Bank N.A.      152,565,000         4/01/11         17,027         17,521         (494
BUY      JPY       Barclays Bank PLC      3,893,000         4/12/11         47,699         46,804         (895
BUY      JPY       Citibank N.A.      3,973,000         4/12/11         48,914         47,766         (1,148
BUY      JPY       Credit Suisse Group      42,670,084         4/12/11         513,893         513,006         (887
BUY      JPY       Deutsche Bank AG      1,623,981         4/12/11         19,590         19,525         (65
BUY      JPY       HSBC Bank      1,350,000         4/12/11         16,504         16,231         (273
BUY      JPY       UBS AG      2,985,585         4/12/11         36,888         35,895         (993
SELL      JPY       JPMorgan Case Bank N.A.      587,000         4/12/11         6,996         7,057         (61
SELL      MXN       Royal Bank of Scotland PLC      190,000         4/12/11         15,671         15,963         (292
SELL      NOK       Barclays Bank PLC      4,000         4/12/11         688         723         (35
SELL      NOK       Deutsche Bank AG      1,000         4/12/11         167         181         (14
BUY      PHP       Barclays Bank PLC      703,000         5/03/11         16,215         16,174         (41
SELL      SEK       Barclays Bank PLC      56,000         4/12/11         8,456         8,869         (413
SELL      SEK       Credit Suisse Group      195,964         4/12/11         29,482         31,035         (1,553
SELL      SEK       HSBC Bank      195,000         4/12/11         30,055         30,882         (827
SELL      SEK       Royal Bank of Scotland PLC      5,000         4/12/11         771         792         (21
                          
                     $ (53,847
                          

At March 31, 2011, the variable account had sufficient cash and/or other liquid securities to cover any commitments under these derivative contracts.

 

6


Global Governments Variable Account

Supplemental Information (Unaudited) 3/31/11 - continued

(3) Transactions in Underlying Affiliated Funds-Affiliated Issuers

An affiliated issuer may be considered one in which the variable account owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the variable account assumes the following to be affiliated issuers:

 

     Beginning      Acquisitions      Dispositions     Ending  
     Shares/Par      Shares/Par      Shares/Par     Shares/Par  

Underlying Affiliated Funds

   Amount      Amount      Amount     Amount  

MFS Institutional Money Market Portfolio

     246,397         1,090,294         (980,343     356,348   
     Realized                      
     Gain      Capital Gain      Dividend     Ending  

Underlying Affiliated Funds

   (Loss)      Distributions      Income     Value  

MFS Institutional Money Market Portfolio

   $ —         $ —         $ 164      $ 356,348   

(4) Issuer Country Weightings

Issuer country weighting percentages of portfolio holdings based on net assets, as of March 31, 2011, are as follows:

 

United States

     33.0

Japan

     22.7

Germany

     12.8

Italy

     11.2

United Kingdom

     4.4

Netherlands

     3.5

Canada

     3.0

Finland

     2.7

France

     2.5

Other Countries

     4.2

The issuer country weighting percentages include both accrued interest amounts and the equivalent exposure from any derivative holdings, if applicable.

 

7


ITEM 2. 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 Form N-Q, 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 registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 3. EXHIBITS.

File as exhibits as part of this Form 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.


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: GLOBAL GOVERNMENTS VARIABLE ACCOUNT

 

By (Signature and Title)*    MARIA F. DIORIODWYER
  Maria F. DiOrioDwyer, President

Date: May 16, 2011

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)*    MARIA F. DIORIODWYER
  Maria F. DiOrioDwyer, President (Principal Executive Officer)

Date: May 16, 2011

 

By (Signature and Title)*    JOHN M. CORCORAN
  John M. Corcoran, Treasurer (Principal Financial Officer and Accounting Officer)

Date: May 16, 2011

 

* Print name and title of each signing officer under his or her signature.
EX-99.CERT 2 dex99cert.htm CERTIFICATIONS CERTIFICATIONS

EX-99.CERT

GLOBAL GOVERNMENTS VARIABLE ACCOUNT

CERTIFICATION

I, John M. Corcoran, certify that:

 

1. I have reviewed this report on Form N-Q of Global Governments Variable Account;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

  d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and


  b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: May 16, 2011     JOHN M. CORCORAN
    John M. Corcoran
   

Treasurer (Principal Financial Officer and

Accounting Officer)


EX-99.CERT

GLOBAL GOVERNMENTS VARIABLE ACCOUNT

CERTIFICATION

I, Maria F. DiOrioDwyer, certify that:

 

1. I have reviewed this report on Form N-Q of Global Governments Variable Account;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

  d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and


  b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: May 16, 2011     MARIA F. DIORIODWYER
    Maria F. DiOrioDwyer
    President (Principal Executive Officer)
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