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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 811-04096
MFS MUNICIPAL SERIES TRUST
(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
111 Huntington 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: March 31
Date of reporting period: March 31, 2019
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| ITEM 1. | REPORTS TO STOCKHOLDERS. |
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Annual Report
March 31, 2019
MFS® Municipal Series Trust
For the states of:
Alabama, Arkansas, California, Georgia, Maryland, and Massachusetts
Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the complete reports will be made available on the fund’s Web site (funds.mfs.com), and you will be notified by mail each time a report is posted and provided with a Web site link to access the report.
If you are already signed up to receive shareholder reports by email, you will not be affected by this change and you need not take any action. You may sign up to receive shareholder reports and other communications from the fund by email by contacting your financial intermediary (such as a broker-dealer or bank) or, if you hold your shares directly with the fund, by calling 1-800-225-2606 or by logging on to MFS Access at mfs.com.
Beginning on January 1, 2019, you may elect to receive all future reports in paper free of charge. Contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the fund, you can call 1-800-225-2606 or send an email request to orderliterature@mfs.com to let the fund know that you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with the MFS fund complex if you invest directly.
MSTA-ANN
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MFS® Municipal Series Trust
For the states of: Alabama, Arkansas, California, Georgia, Maryland, and Massachusetts
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
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LETTER FROM THE EXECUTIVE CHAIRMAN
The opinions expressed in this letter are subject to change and may not be relied upon for investment advice. No forecasts can be guaranteed.
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| (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. 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, which have not been rated by any rating agency. 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. |
| (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. |
| (j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (2.3)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
| (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 device (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. |
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statements of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of March 31, 2019.
The portfolio is actively managed and current holdings may be different.
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Portfolio Composition – continued
| (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. 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, which have not been rated by any rating agency. 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. |
| (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. |
| (j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (2.5)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
| (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 device (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. |
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statements of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of March 31, 2019.
The portfolio is actively managed and current holdings may be different.
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Portfolio Composition – continued
| (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. 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, which have not been rated by any rating agency. 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. |
| (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. |
| (j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (2.4)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
| (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 device (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. |
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statements of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of March 31, 2019.
The portfolio is actively managed and current holdings may be different.
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Portfolio Composition – continued
| (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. 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, which have not been rated by any rating agency. 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. |
| (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. |
| (j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (2.4)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
| (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 device (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. |
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statements of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of March 31, 2019.
The portfolio is actively managed and current holdings may be different.
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Portfolio Composition – continued
| (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. 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, which have not been rated by any rating agency. 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. |
| (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. |
| (j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (2.3)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
| (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 device (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. |
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statements of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of March 31, 2019.
The portfolio is actively managed and current holdings may be different.
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Portfolio Composition – continued
| (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. 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, which have not been rated by any rating agency. 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. |
| (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. |
| (j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (2.3)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
| (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 device (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. |
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statements of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of March 31, 2019.
The portfolio is actively managed and current holdings may be different.
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Summary of Results
For the twelve months ended March 31, 2019, Class A shares, at net asset value, of the municipal bond funds of Alabama, Arkansas, California, Georgia, Maryland and Massachusetts underperformed the Bloomberg Barclays Municipal Bond Index. The performance for the individual funds and the benchmark are set forth in the Performance Summary.
Market Environment
Led by weakness in China and Europe, the global economy decelerated during the reporting period, as business and investor sentiment was undermined by growing trade frictions. Slower growth, along with tighter financial conditions, contributed to an uptick in market volatility late in the period. Equity valuations fell, and credit spreads widened, fueled in part by interest rate concerns. In December, the US Federal Reserve (Fed) lifted rates for the fourth time in 2018 and indicated its intention to hike several more times, while allowing its balance sheet to run off at its predetermined pace.
Slowing global growth, rising trade tensions, abating inflationary pressures and increasing market volatility prompted the Fed to reverse course at the end of the period and indicate that its policy was on hold. The Fed also indicated that it would maintain a larger balance sheet than it had previously indicated. These dovish shifts helped equity valuations rebound, reduced volatility and narrowed credit spreads. Central banks globally tilted more dovish as well, with China lowering reserve requirements, The Bank of Canada and Bank of England holding rates steady and the European Central Bank acknowledging that it may not be able to hike rates in the fall of 2019, as it had earlier projected, while extending a refinancing facility for eurozone banks.
Emerging markets experienced considerable volatility during the period as tighter global financial conditions exposed structural weakness in some countries. Those pressures were somewhat relieved at the end of the period as the Fed adopted its more dovish posture and hopes grew for a trade deal between the US and China.
From a geopolitical perspective, the lack of consensus in the United Kingdom on the best path toward a rapidly approaching Brexit, a fractious Eurosceptic Italian coalition government, large-scale protests in France over stagnant wages and news that Germany’s Angela Merkel will not seek another term as chancellor were sources of uncertainty in Europe. In emerging markets, new Brazilian president Jair Bolsonaro took office, with markets generally encouraged by his market-friendly agenda. In contrast, markets were nervous about the less market-friendly approach of Mexico’s new president Andrés Manuel López Obrador. For much of the period, the contentious US-China trade relationship was a drag on global sentiment. Signs of progress toward a resolution helped steady markets late in the period while China’s economy showed tentative signs of stabilizing.
Over the reporting period, municipal bonds provided solid positive returns with the lower-quality and longer-duration segments performing especially well. Reduced primary market supply generally supported municipal bonds during the period, as supply was impacted in 2018, consequent of issuances pulled forward into 2017 before, and in anticipation of, proposed tax law changes. Further limiting issuance in calendar year 2018 and into 2019, were tax law changes which eliminated pre-refundings, where the proceeds had been used to advance refund previously-issued debt. Also of note, Puerto Rican bonds recovered strongly, boosted by ongoing progress in restructuring negotiations.
Fundamentals in municipals were generally stable for the period, due to stable-to-improving tax revenue.
Factors Affecting Performance
In all funds, security selection within “AA” and “A” rated (r) securities, and within “BBB” rated securities in the municipal bond funds of California, Maryland and Massachusetts, hindered performance relative to the Bloomberg Barclays Municipal Bond Index. Additionally, bond selection within the education sector held back relative returns across all funds.
In contrast, a longer duration (d) stance at the end of the reporting period positively impacted relative performance in the municipal bond funds of Alabama, California and Massachusetts as interest rates declined. In all funds, with the exception of the municipal bond fund of California, an out-of-benchmark exposure to non-rated securities benefited relative returns. An out-of-benchmark exposure to Puerto Rican bonds, across all funds, also helped in relative terms.
Respectfully,
Portfolio Manager(s)
Michael Dawson
| (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. |
| (r) | Bonds rated “BBB”, “Baa”, or higher are considered investment grade; bonds rated “BB”, “Ba”, or below are considered non-investment grade. The sources for bond quality ratings are Moody’s Investors Service, Standard & Poor’s and Fitch, Inc. and are applied using 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. Ratings are shown in the S&P and Fitch scale (e.g., AAA). For securities which are not rated by any of the three agencies, the security is considered Not Rated. |
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Management Review – continued
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.
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PERFORMANCE SUMMARY THROUGH 3/31/19
The following charts illustrate a representative class of each 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. Each fund's results have been compared to the Bloomberg Barclays Municipal Bond Index, a market capitalization-weighted index that measures the performance of the tax-exempt bond market. However, while this index is considered the benchmark for the performance of municipal bond funds, it is comprised of municipal bonds issued within the 50 states and the District of Columbia as well as U.S. territories and possessions such as Guam, Puerto Rico, and the Virgin Islands, while each of the funds invests a large percentage of its assets in municipal issuers of the state that is in the fund’s name. 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.
MFS Alabama Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/19
Average annual without sales charge
| Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
| A | 2/01/90 | 4.63% | 3.58% | 4.41% | N/A | |||||||||
| B | 9/07/93 | 3.85% | 2.80% | 3.63% | N/A | |||||||||
| I | 4/01/16 | 4.83% | N/A | N/A | 2.51% | |||||||||
| R6 | 8/01/17 | 4.92% | N/A | N/A | 3.08% | |||||||||
| Comparative benchmark(s) | ||||||||||||||
| Bloomberg Barclays Municipal Bond Index (f) | 5.38% | 3.73% | 4.72% | N/A | ||||||||||
| Average annual with sales charge | ||||||||||||||
| A With Initial Sales Charge (4.25%) |
0.18% | 2.68% | 3.96% | N/A | ||||||||||
| B With CDSC (Declining over six years from 4% to 0%) (v) |
(0.15)% | 2.44% | 3.63% | N/A | ||||||||||
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
| (v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS Arkansas Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/19
Average annual without sales charge
| Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
| A | 2/03/92 | 4.74% | 3.41% | 3.90% | N/A | |||||||||
| B | 9/07/93 | 3.97% | 2.63% | 3.10% | N/A | |||||||||
| I | 4/01/16 | 4.86% | N/A | N/A | 2.28% | |||||||||
| R6 | 8/01/17 | 4.83% | N/A | N/A | 2.93% | |||||||||
| Comparative benchmark(s) | ||||||||||||||
| Bloomberg Barclays Municipal Bond Index (f) | 5.38% | 3.73% | 4.72% | N/A | ||||||||||
| Average annual with sales charge | ||||||||||||||
| A With Initial Sales Charge (4.25%) |
0.29% | 2.51% | 3.45% | N/A | ||||||||||
| B With CDSC (Declining over six years from 4% to 0%) (v) |
(0.03)% | 2.27% | 3.10% | N/A | ||||||||||
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
| (v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS California Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/19
Average annual without sales charge
| Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
| A | 6/18/85 | 5.21% | 4.68% | 5.66% | N/A | |||||||||
| B | 9/07/93 | 4.43% | 3.89% | 4.86% | N/A | |||||||||
| C | 1/03/94 | 4.26% | 3.74% | 4.72% | N/A | |||||||||
| I | 4/01/16 | 5.27% | N/A | N/A | 3.01% | |||||||||
| R6 | 8/01/17 | 5.36% | N/A | N/A | 3.56% | |||||||||
| Comparative benchmark(s) | ||||||||||||||
| Bloomberg Barclays Municipal Bond Index (f) | 5.38% | 3.73% | 4.72% | N/A | ||||||||||
| Average annual with sales charge | ||||||||||||||
| A With Initial Sales Charge (4.25%) |
0.74% | 3.78% | 5.20% | N/A | ||||||||||
| B With CDSC (Declining over six years from 4% to 0%) (v) |
0.43% | 3.55% | 4.86% | N/A | ||||||||||
| C With CDSC (1% for 12 months) (v) |
3.26% | 3.74% | 4.72% | N/A | ||||||||||
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
| (v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS Georgia Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/19
Average annual without sales charge
| Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
| A | 6/06/88 | 4.51% | 3.45% | 4.26% | N/A | |||||||||
| B | 9/07/93 | 3.73% | 2.68% | 3.49% | N/A | |||||||||
| I | 4/01/16 | 4.70% | N/A | N/A | 2.41% | |||||||||
| R6 | 8/01/17 | 4.77% | N/A | N/A | 2.80% | |||||||||
| Comparative benchmark(s) | ||||||||||||||
| Bloomberg Barclays Municipal Bond Index (f) | 5.38% | 3.73% | 4.72% | N/A | ||||||||||
| Average annual with sales charge | ||||||||||||||
| A With Initial Sales Charge (4.25%) |
0.07% | 2.56% | 3.81% | N/A | ||||||||||
| B With CDSC (Declining over six years from 4% to 0%) (v) |
(0.27)% | 2.32% | 3.49% | N/A | ||||||||||
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
| (v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS Maryland Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/19
Average annual without sales charge
| Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
| A | 10/31/84 | 4.46% | 3.45% | 4.36% | N/A | |||||||||
| B | 9/07/93 | 3.58% | 2.67% | 3.58% | N/A | |||||||||
| I | 4/01/16 | 4.61% | N/A | N/A | 2.66% | |||||||||
| R6 | 8/01/17 | 4.67% | N/A | N/A | 3.00% | |||||||||
| Comparative benchmark(s) | ||||||||||||||
| Bloomberg Barclays Municipal Bond Index (f) | 5.38% | 3.73% | 4.72% | N/A | ||||||||||
| Average annual with sales charge | ||||||||||||||
| A With Initial Sales Charge (4.25%) |
0.02% | 2.55% | 3.90% | N/A | ||||||||||
| B With CDSC (Declining over six years from 4% to 0%) (v) |
(0.42)% | 2.31% | 3.58% | N/A | ||||||||||
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
| (v) | Assuming redemption at the end of the applicable period. |
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MFS Massachusetts Municipal Bond Fund
Growth of a Hypothetical $10,000 Investment
Total Returns through 3/31/19
Average annual without sales charge
| Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
| A | 4/09/85 | 4.74% | 3.79% | 4.53% | N/A | |||||||||
| B | 9/07/93 | 3.94% | 2.99% | 3.74% | N/A | |||||||||
| I | 4/01/16 | 4.95% | N/A | N/A | 2.65% | |||||||||
| R6 | 8/01/17 | 5.13% | N/A | N/A | 3.21% | |||||||||
| Comparative benchmark(s) | ||||||||||||||
| Bloomberg Barclays Municipal Bond Index (f) | 5.38% | 3.73% | 4.72% | N/A | ||||||||||
| Average annual with sales charge | ||||||||||||||
| A With Initial Sales Charge (4.25%) |
0.29% | 2.89% | 4.08% | N/A | ||||||||||
| B With CDSC (Declining over six years from 4% to 0%) (v) |
(0.06)% | 2.63% | 3.74% | N/A | ||||||||||
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
| (v) | Assuming redemption at the end of the applicable period. |
Benchmark Definition(s)
Bloomberg Barclays Municipal Bond Index – a market capitalization-weighted index that measures the performance of the tax-exempt bond market.
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. Life returns are presented where the share class has less than 10 years of performance history and represent the average annual total return from the class inception date to the stated period end date. As the fund’s share classes may have different inception dates, the life returns may represent different time periods and may not be comparable. As a result, no comparative benchmark performance information is provided for life periods.
Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers each fund’s performance results would be less favorable. Please see the prospectus and financial statements for complete details.
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Performance Summary – continued
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.
A portion of income may be subject to state, federal, and/or alternative minimum tax. Capital gains, if any, are subject to a capital gains tax.
From time to time the funds may receive proceeds from litigation settlements, without which performance would be lower.
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Fund expenses borne by the shareholders during the period, October 1, 2018 through March 31, 2019
As a shareholder of the funds, 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. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the funds and to compare these costs with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2018 through March 31, 2019.
Actual Expenses
The first line for each share class in the following tables 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 tables provides information about hypothetical account values and hypothetical expenses based on each fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each 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 each 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 tables 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 tables 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.
MFS ALABAMA MUNICIPAL BOND FUND
|
Share Class |
Annualized Expense Ratio |
Beginning Account Value 10/01/18 |
Ending Account Value 3/31/19 |
Expenses Paid During Period (p) 10/01/18-3/31/19 |
||||||||||||||
| A | Actual | 0.90% | $1,000.00 | $1,038.64 | $4.57 | |||||||||||||
| Hypothetical (h) | 0.90% | $1,000.00 | $1,020.44 | $4.53 | ||||||||||||||
| B | Actual | 1.65% | $1,000.00 | $1,034.79 | $8.37 | |||||||||||||
| Hypothetical (h) | 1.65% | $1,000.00 | $1,016.70 | $8.30 | ||||||||||||||
| I | Actual | 0.65% | $1,000.00 | $1,038.75 | $3.30 | |||||||||||||
| Hypothetical (h) | 0.65% | $1,000.00 | $1,021.69 | $3.28 | ||||||||||||||
| R6 | Actual | 0.58% | $1,000.00 | $1,039.17 | $2.95 | |||||||||||||
| Hypothetical (h) | 0.58% | $1,000.00 | $1,022.04 | $2.92 | ||||||||||||||
| (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 182/365 (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. |
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MFS ARKANSAS MUNICIPAL BOND FUND
|
Share Class |
Annualized Expense Ratio |
Beginning Account Value 10/01/18 |
Ending Account Value 3/31/19 |
Expenses Paid During Period (p) 10/01/18-3/31/19 |
||||||||||||||
| A | Actual | 0.77% | $1,000.00 | $1,037.20 | $3.91 | |||||||||||||
| Hypothetical (h) | 0.77% | $1,000.00 | $1,021.09 | $3.88 | ||||||||||||||
| B | Actual | 1.52% | $1,000.00 | $1,033.35 | $7.71 | |||||||||||||
| Hypothetical (h) | 1.52% | $1,000.00 | $1,017.35 | $7.64 | ||||||||||||||
| I | Actual | 0.67% | $1,000.00 | $1,037.88 | $3.40 | |||||||||||||
| Hypothetical (h) | 0.67% | $1,000.00 | $1,021.59 | $3.38 | ||||||||||||||
| R6 | Actual | 0.59% | $1,000.00 | $1,038.26 | $3.00 | |||||||||||||
| Hypothetical (h) | 0.59% | $1,000.00 | $1,021.99 | $2.97 | ||||||||||||||
MFS CALIFORNIA MUNICIPAL BOND FUND
|
Share Class |
Annualized Expense Ratio |
Beginning Account Value 10/01/18 |
Ending Account Value 3/31/19 |
Expenses Paid During Period (p) 10/01/18-3/31/19 |
||||||||||||||
| A | Actual | 0.72% | $1,000.00 | $1,042.62 | $3.67 | |||||||||||||
| Hypothetical (h) | 0.72% | $1,000.00 | $1,021.34 | $3.63 | ||||||||||||||
| B | Actual | 1.47% | $1,000.00 | $1,038.75 | $7.47 | |||||||||||||
| Hypothetical (h) | 1.47% | $1,000.00 | $1,017.60 | $7.39 | ||||||||||||||
| C | Actual | 1.62% | $1,000.00 | $1,037.87 | $8.23 | |||||||||||||
| Hypothetical (h) | 1.62% | $1,000.00 | $1,016.85 | $8.15 | ||||||||||||||
| I | Actual | 0.61% | $1,000.00 | $1,042.61 | $3.11 | |||||||||||||
| Hypothetical (h) | 0.61% | $1,000.00 | $1,021.89 | $3.07 | ||||||||||||||
| R6 | Actual | 0.53% | $1,000.00 | $1,043.08 | $2.70 | |||||||||||||
| Hypothetical (h) | 0.53% | $1,000.00 | $1,022.29 | $2.67 | ||||||||||||||
| (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 182/365 (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. |
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MFS GEORGIA MUNICIPAL BOND FUND
|
Share Class |
Annualized Expense Ratio |
Beginning Account Value 10/01/18 |
Ending Account Value 3/31/19 |
Expenses Paid During Period (p) 10/01/18-3/31/19 |
||||||||||||||
| A | Actual | 0.90% | $1,000.00 | $1,038.14 | $4.57 | |||||||||||||
| Hypothetical (h) | 0.90% | $1,000.00 | $1,020.44 | $4.53 | ||||||||||||||
| B | Actual | 1.64% | $1,000.00 | $1,034.26 | $8.32 | |||||||||||||
| Hypothetical (h) | 1.64% | $1,000.00 | $1,016.75 | $8.25 | ||||||||||||||
| I | Actual | 0.65% | $1,000.00 | $1,039.65 | $3.31 | |||||||||||||
| Hypothetical (h) | 0.65% | $1,000.00 | $1,021.69 | $3.28 | ||||||||||||||
| R6 | Actual | 0.59% | $1,000.00 | $1,038.91 | $3.00 | |||||||||||||
| Hypothetical (h) | 0.59% | $1,000.00 | $1,021.99 | $2.97 | ||||||||||||||
MFS MARYLAND MUNICIPAL BOND FUND
|
Share Class |
Annualized Expense Ratio |
Beginning Account Value 10/01/18 |
Ending Account Value 3/31/19 |
Expenses Paid During Period (p) 10/01/18-3/31/19 |
||||||||||||||
| A | Actual | 0.82% | $1,000.00 | $1,034.10 | $4.16 | |||||||||||||
| Hypothetical (h) | 0.82% | $1,000.00 | $1,020.84 | $4.13 | ||||||||||||||
| B | Actual | 1.58% | $1,000.00 | $1,030.25 | $8.00 | |||||||||||||
| Hypothetical (h) | 1.58% | $1,000.00 | $1,017.05 | $7.95 | ||||||||||||||
| I | Actual | 0.58% | $1,000.00 | $1,035.06 | $2.94 | |||||||||||||
| Hypothetical (h) | 0.58% | $1,000.00 | $1,022.04 | $2.92 | ||||||||||||||
| R6 | Actual | 0.52% | $1,000.00 | $1,035.41 | $2.64 | |||||||||||||
| Hypothetical (h) | 0.52% | $1,000.00 | $1,022.34 | $2.62 | ||||||||||||||
| (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 182/365 (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
For the MFS Georgia Municipal Bond Fund, each class with a Rule 12b-1 service fee is subject to a rebate of a portion of such fee. Such rebates are included in the expense ratios above and are outside of the expense limitation arrangement. For Class B shares, this rebate reduced the expense ratio above by 0.01%. See Note 3 in the Notes to Financial Statements for additional information.
For the MFS Maryland Municipal Bond Fund, each class with a Rule 12b-1 service fee is subject to a rebate of a portion of such fee. Such rebates are included in the expense ratios above and are outside of the expense limitation arrangement. For Class A shares, this rebate reduced the expense ratio above by 0.01%. See Note 3 in the Notes to Financial Statements for additional information.
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MFS MASSACHUSETTS MUNICIPAL BOND FUND
|
Share Class |
Annualized Expense Ratio |
Beginning Account Value 10/01/18 |
Ending Account Value 3/31/19 |
Expenses Paid During Period (p) 10/01/18-3/31/19 |
||||||||||||||
| A | Actual | 0.85% | $1,000.00 | $1,040.36 | $4.32 | |||||||||||||
| Hypothetical (h) | 0.85% | $1,000.00 | $1,020.69 | $4.28 | ||||||||||||||
| B | Actual | 1.62% | $1,000.00 | $1,036.38 | $8.22 | |||||||||||||
| Hypothetical (h) | 1.62% | $1,000.00 | $1,016.85 | $8.15 | ||||||||||||||
| I | Actual | 0.62% | $1,000.00 | $1,040.55 | $3.15 | |||||||||||||
| Hypothetical (h) | 0.62% | $1,000.00 | $1,021.84 | $3.13 | ||||||||||||||
| R6 | Actual | 0.55% | $1,000.00 | $1,041.99 | $2.80 | |||||||||||||
| Hypothetical (h) | 0.55% | $1,000.00 | $1,022.19 | $2.77 | ||||||||||||||
| (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 182/365 (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
For the MFS Massachusetts Municipal Bond Fund, each class with a Rule 12b-1 service fee is subject to a rebate of a portion of such fee. Such rebates are included in the expense ratios above. For Class A shares, this rebate reduced the expense ratio above by 0.02%. See Note 3 in the Notes to Financial Statements for additional information.
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3/31/19
MFS ALABAMA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
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Derivative Contracts at 3/31/19
Futures Contracts
| Description | Long/ Short |
Currency | Contracts | Notional Amount |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
||||||||||||||||
| Liability Derivatives | ||||||||||||||||||||||
| Interest Rate Futures | ||||||||||||||||||||||
| U.S. Treasury Bond 30 yr | Short | USD | 10 | $1,496,563 | June - 2019 | $(37,537 | ) | |||||||||||||||
|
|
|
|||||||||||||||||||||
At March 31, 2019, the fund had cash collateral of $25,500 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statements of Assets and Liabilities are comprised of cash collateral.
See Portfolio Footnotes and Notes to Financial Statements
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PORTFOLIO OF INVESTMENTS
3/31/19
MFS ARKANSAS MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
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Derivative Contracts at 3/31/19
Futures Contracts
| Description | Long/ Short |
Currency | Contracts | Notional Amount |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
||||||||||||||||
| Liability Derivatives | ||||||||||||||||||||||
| Interest Rate Futures | ||||||||||||||||||||||
| U.S. Treasury Bond 30 yr | Short | USD | 25 | $3,741,406 | June - 2019 | $(93,842 | ) | |||||||||||||||
|
|
|
|||||||||||||||||||||
At March 31, 2019, the fund had cash collateral of $63,750 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statements of Assets and Liabilities are comprised of cash collateral.
See Portfolio Footnotes and Notes to Financial Statements
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PORTFOLIO OF INVESTMENTS
3/31/19
MFS CALIFORNIA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
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Derivative Contracts at 3/31/19
Futures Contracts
| Description | Long/ Short |
Currency | Contracts | Notional Amount |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
||||||||||||||||
| Liability Derivatives | ||||||||||||||||||||||
| Interest Rate Futures | ||||||||||||||||||||||
| U.S. Treasury Bond 30 yr | Short | USD | 66 | $9,877,313 | June - 2019 | $(247,743 | ) | |||||||||||||||
|
|
|
|||||||||||||||||||||
At March 31, 2019, the fund had cash collateral of $168,300 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statements of Assets and Liabilities are comprised of cash collateral.
See Portfolio Footnotes and Notes to Financial Statements
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PORTFOLIO OF INVESTMENTS
3/31/19
MFS GEORGIA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
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Derivative Contracts at 3/31/19
Futures Contracts
| Description | Long/ Short |
Currency | Contracts | Notional Amount |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
||||||||||||||||
| Liability Derivatives | ||||||||||||||||||||||
| Interest Rate Futures | ||||||||||||||||||||||
| U.S. Treasury Bond 30 yr |
Short | USD | 14 | $2,095,188 | June - 2019 | $(52,552 | ) | |||||||||||||||
|
|
|
|||||||||||||||||||||
At March 31, 2019, the fund had cash collateral of $35,700 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statements of Assets and Liabilities are comprised of cash collateral.
See Portfolio Footnotes and Notes to Financial Statements
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PORTFOLIO OF INVESTMENTS
3/31/19
MFS MARYLAND MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
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Derivative Contracts at 3/31/19
Futures Contracts
| Description | Long/ Short |
Currency | Contracts | Notional Amount |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
||||||||||||||||
| Liability Derivatives | ||||||||||||||||||||||
| Interest Rate Futures | ||||||||||||||||||||||
| U.S. Treasury Bond 30 yr | Short | USD | 14 | $2,095,188 | June - 2019 | $(52,552 | ) | |||||||||||||||
|
|
|
|||||||||||||||||||||
At March 31, 2019, the fund had cash collateral of $35,700 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statements of Assets and Liabilities are comprised of cash collateral.
See Portfolio Footnotes and Notes to Financial Statements
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PORTFOLIO OF INVESTMENTS
3/31/19
MFS MASSACHUSETTS MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
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Derivative Contracts at 3/31/19
Futures Contracts
| Description | Long/ Short |
Currency | Contracts | Notional Amount |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
||||||||||||||||
| Liability Derivatives | ||||||||||||||||||||||
| Interest Rate Futures | ||||||||||||||||||||||
| U.S. Treasury Bond 30 yr | Short | USD | 44 | $6,584,875 | June - 2019 | $(165,162 | ) | |||||||||||||||
|
|
|
|||||||||||||||||||||
At March 31, 2019, the fund had cash collateral of $112,200 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statements of Assets and Liabilities are comprised of cash collateral.
Portfolio Footnotes:
| (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 each fund’s investments in affiliated issuers and in unaffiliated issuers were as follows: |
| Affiliated Issuers | Unaffiliated Issuers | |||||||
| Alabama Fund | $ | 267,171 | $ | 62,351,578 | ||||
| Arkansas Fund | 3,016,600 | 149,416,476 | ||||||
| California Fund | 11,566,146 | 401,108,739 | ||||||
| Georgia Fund | 1,286,347 | 84,100,618 | ||||||
| Maryland Fund | 1,803,289 | 86,874,576 | ||||||
| Massachusetts Fund | 7,689,228 | 277,071,248 | ||||||
| (p) | Primary market inverse floater. |
| (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:
| AAC | Ambac Assurance Corp. | |
| AGM | Assured Guaranty Municipal | |
| ASSD GTY | Assured Guaranty Insurance Co. | |
| BAM | Build America Mutual | |
| BHAC | Berkshire Hathaway Assurance Corp. | |
| CALHF | California Health Facility Construction Loan Insurance Program | |
| COP | Certificate of Participation | |
| ETM | Escrowed to Maturity | |
| FGIC | Financial Guaranty Insurance Co. | |
| FHA | Federal Housing Administration | |
| 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. | |
| GNMA | Government National Mortgage Assn. | |
| LEVRRS | Leveraged Reverse Rate Security | |
| LIBOR | London Interbank Offered Rate | |
| LOC | Letter of Credit | |
| NATL | National Public Finance Guarantee Corp. | |
| RIBS | Residual Interest Bonds | |
| SYNCORA | Syncora Guarantee Inc. |
See Notes to Financial Statements
61
Table of Contents
Financial Statements
STATEMENTS OF ASSETS AND LIABILITIES
At 3/31/19
These statements represent each fund’s balance sheet, which details the assets and liabilities comprising the total value of each fund.
| Alabama Fund |
Arkansas Fund |
California Fund |
||||||||||
| Assets | ||||||||||||
| Investments in unaffiliated issuers, at value (identified cost, $60,327,391, $145,411,333, and $381,316,909, respectively) |
$62,351,578 | $149,416,476 | $401,108,739 | |||||||||
| Investments in affiliated issuers, at value (identified cost, $267,170, $3,016,383, and $11,565,744, respectively) |
267,171 | 3,016,600 | 11,566,146 | |||||||||
| Cash |
312 | — | — | |||||||||
| Deposits with brokers for futures contracts |
25,500 | 63,750 | 168,300 | |||||||||
| Receivables for |
||||||||||||
| Net daily variation margin on open futures contracts |
3,750 | 9,376 | 24,754 | |||||||||
| Investments sold |
1,010,400 | 35,000 | — | |||||||||
| Fund shares sold |
233,524 | 51,963 | 767,405 | |||||||||
| Interest |
720,733 | 1,928,352 | 4,788,012 | |||||||||
| Receivable from investment adviser |
8,407 | — | — | |||||||||
| Other assets |
415 | 784 | 1,506 | |||||||||
| Total assets |
$64,621,790 | $154,522,301 | $418,424,862 | |||||||||
| Liabilities | ||||||||||||
| Payables for |
||||||||||||
| Distributions |
$25,801 | $31,524 | $162,536 | |||||||||
| Investments purchased |
— | 2,216,448 | 915,696 | |||||||||
| Fund shares reacquired |
238,357 | 217,205 | 829,382 | |||||||||
| Payable to affiliates |
||||||||||||
| Investment adviser |
— | 7,666 | 20,796 | |||||||||
| Shareholder servicing costs |
26,317 | 73,033 | 177,999 | |||||||||
| Distribution and service fees |
1,272 | 1,461 | 5,256 | |||||||||
| Payable for independent Trustees’ compensation |
1,307 | 1,256 | 5,644 | |||||||||
| Accrued expenses and other liabilities |
65,951 | 69,379 | 83,842 | |||||||||
| Total liabilities |
$359,005 | $2,617,972 | $2,201,151 | |||||||||
| Net assets |
$64,262,785 | $151,904,329 | $416,223,711 | |||||||||
| Net assets consist of | ||||||||||||
| Paid-in capital |
$62,806,313 | $151,944,525 | $397,660,657 | |||||||||
| Total distributable earnings (loss) |
1,456,472 | (40,196 | ) | 18,563,054 | ||||||||
| Net assets |
$64,262,785 | $151,904,329 | $416,223,711 | |||||||||
62
Table of Contents
Statements of Assets and Liabilities – continued
| Alabama Fund |
Arkansas Fund |
California Fund |
||||||||||
| Net assets |
||||||||||||
| Class A |
$51,280,044 | $121,887,666 | $299,882,378 | |||||||||
| Class B |
250,069 | 2,476,692 | 1,505,572 | |||||||||
| Class C |
— | — | 22,786,419 | |||||||||
| Class I |
11,490,421 | 26,586,311 | 79,275,949 | |||||||||
| Class R6 |
1,242,251 | 953,660 | 12,773,393 | |||||||||
| Total net assets |
$64,262,785 | $151,904,329 | $416,223,711 | |||||||||
| Shares of beneficial interest outstanding |
||||||||||||
| Class A |
5,054,044 | 12,435,392 | 49,685,141 | |||||||||
| Class B |
24,642 | 252,462 | 249,370 | |||||||||
| Class C |
— | — | 3,762,479 | |||||||||
| Class I |
1,188,108 | 2,732,400 | 8,068,001 | |||||||||
| Class R6 |
128,453 | 97,995 | 1,300,799 | |||||||||
| Total shares of beneficial interest outstanding |
6,395,247 | 15,518,249 | 63,065,790 | |||||||||
| Class A shares |
||||||||||||
| Net asset value per share |
||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$10.15 | $9.80 | $6.04 | |||||||||
| Offering price per share (100 / 95.75 × net asset value per share) |
$10.60 | $10.23 | $6.31 | |||||||||
| Class B shares |
||||||||||||
| Net asset value and offering price per share |
||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$10.15 | $9.81 | $6.04 | |||||||||
| Class C shares |
||||||||||||
| Net asset value and offering price per share |
||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$— | $— | $6.06 | |||||||||
| Class I shares |
||||||||||||
| Net asset value, offering price, and redemption price per share |
||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$9.67 | $9.73 | $9.83 | |||||||||
| Class R6 shares |
||||||||||||
| Net asset value, offering price, and redemption price per share |
||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$9.67 | $9.73 | $9.82 | |||||||||
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.
See Notes to Financial Statements
63
Table of Contents
Statements of Assets and Liabilities – continued
| At 3/31/19 | Georgia Fund |
Maryland Fund |
Massachusetts Fund |
|||||||||
| Assets | ||||||||||||
| Investments in unaffiliated issuers, at value (identified cost, $81,751,172, $84,378,767, and $264,427,468, respectively) |
$84,100,618 | $86,874,576 | $277,071,248 | |||||||||
| Investments in affiliated issuers, at value (identified cost, $1,286,274, $1,803,147, and $7,688,965, respectively) |
1,286,347 | 1,803,289 | 7,689,228 | |||||||||
| Cash |
— | 12,500 | — | |||||||||
| Deposits with brokers for futures contracts |
35,700 | 35,700 | 112,200 | |||||||||
| Receivables for |
||||||||||||
| Net daily variation margin on open futures contracts |
5,251 | 5,251 | 16,503 | |||||||||
| Fund shares sold |
368,148 | 37,926 | 1,644,571 | |||||||||
| Interest |
1,026,678 | 1,059,014 | 3,388,595 | |||||||||
| Receivable from investment adviser |
3,209 | 9,789 | — | |||||||||
| Receivable from distributor |
— | — | 3,872 | |||||||||
| Other assets |
501 | 519 | 1,215 | |||||||||
| Total assets |
$86,826,452 | $89,838,564 | $289,927,432 | |||||||||
| Liabilities | ||||||||||||
| Payables for |
||||||||||||
| Distributions |
$20,375 | $50,896 | $96,841 | |||||||||
| Investments purchased |
533,105 | — | 7,993,612 | |||||||||
| Fund shares reacquired |
115,284 | 103,640 | 566,501 | |||||||||
| Payable to affiliates |
||||||||||||
| Investment adviser |
— | — | 14,078 | |||||||||
| Shareholder servicing costs |
27,075 | 33,446 | 103,555 | |||||||||
| Distribution and service fees |
1,460 | 1,228 | — | |||||||||
| Payable for independent Trustees’ compensation |
1,478 | 3,317 | 3,289 | |||||||||
| Accrued expenses and other liabilities |
68,221 | 68,150 | 76,522 | |||||||||
| Total liabilities |
$766,998 | $260,677 | $8,854,398 | |||||||||
| Net assets |
$86,059,454 | $89,577,887 | $281,073,034 | |||||||||
| Net assets consist of | ||||||||||||
| Paid-in capital |
$84,514,064 | $88,708,530 | $271,032,634 | |||||||||
| Total distributable earnings (loss) |
1,545,390 | 869,357 | 10,040,400 | |||||||||
| Net assets |
$86,059,454 | $89,577,887 | $281,073,034 | |||||||||
64
Table of Contents
Statements of Assets and Liabilities – continued
| Georgia Fund |
Maryland Fund |
Massachusetts Fund |
||||||||||
| Net assets |
||||||||||||
| Class A |
$70,456,161 | $75,215,284 | $207,564,533 | |||||||||
| Class B |
398,690 | 1,216,890 | 1,663,743 | |||||||||
| Class I |
7,833,633 | 11,830,873 | 68,668,664 | |||||||||
| Class R6 |
7,370,970 | 1,314,840 | 3,176,094 | |||||||||
| Total net assets |
$86,059,454 | $89,577,887 | $281,073,034 | |||||||||
| Shares of beneficial interest outstanding |
||||||||||||
| Class A |
6,568,251 | 6,991,605 | 18,805,826 | |||||||||
| Class B |
37,031 | 113,166 | 150,469 | |||||||||
| Class I |
805,496 | 1,219,116 | 7,108,579 | |||||||||
| Class R6 |
757,478 | 135,481 | 328,566 | |||||||||
| Total shares of beneficial interest outstanding |
8,168,256 | 8,459,368 | 26,393,440 | |||||||||
| Class A shares |
||||||||||||
| Net asset value per share |
||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$10.73 | $10.76 | $11.04 | |||||||||
| Offering price per share (100 / 95.75 × net asset value per share) |
$11.21 | $11.24 | $11.53 | |||||||||
| Class B shares |
||||||||||||
| Net asset value and offering price per share |
||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$10.77 | $10.75 | $11.06 | |||||||||
| Class I shares |
||||||||||||
| Net asset value, offering price, and redemption price per share |
||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$9.73 | $9.70 | $9.66 | |||||||||
| Class R6 shares |
||||||||||||
| Net asset value, offering price, and redemption price per share |
||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$9.73 | $9.70 | $9.67 | |||||||||
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 and Class B shares.
See Notes to Financial Statements
65
Table of Contents
Financial Statements
Year ended 3/31/19
These statements describe how much each fund earned in investment income and accrued in expenses. They also describe any gains or losses generated by each fund’s operations.
| Alabama Fund |
Arkansas Fund |
California Fund |
||||||||||
| Net investment income (loss) | ||||||||||||
| Interest | $2,691,963 | $6,380,468 | $16,925,363 | |||||||||
| Dividends from affiliated issuers | 17,829 | 27,866 | 154,198 | |||||||||
| Other |
65 | 213 | 588 | |||||||||
| Total investment income |
$2,709,857 | $6,408,547 | $17,080,149 | |||||||||
| Expenses | ||||||||||||
| Management fee |
$271,025 | $692,764 | $1,720,334 | |||||||||
| Distribution and service fees |
128,851 | 367,606 | 952,822 | |||||||||
| Shareholder servicing costs |
47,719 | 131,700 | 333,921 | |||||||||
| Administrative services fee |
18,931 | 32,052 | 63,917 | |||||||||
| Independent Trustees’ compensation |
2,695 | 4,308 | 8,808 | |||||||||
| Custodian fee |
15,633 | 25,221 | 53,937 | |||||||||
| Shareholder communications |
5,316 | 8,380 | 14,517 | |||||||||
| Audit and tax fees |
55,134 | 55,161 | 55,218 | |||||||||
| Legal fees |
9,334 | 5,874 | 12,902 | |||||||||
| Registration fees |
57,122 | 58,823 | 76,638 | |||||||||
| Miscellaneous |
24,688 | 26,208 | 31,162 | |||||||||
| Total expenses |
$636,448 | $1,408,097 | $3,324,176 | |||||||||
| Fees paid indirectly |
(47 | ) | (147 | ) | (170 | ) | ||||||
| Reduction of expenses by investment adviser and distributor |
(117,629 | ) | (222,143 | ) | (474,359 | ) | ||||||
| Net expenses |
$518,772 | $1,185,807 | $2,849,647 | |||||||||
| Net investment income (loss) |
$2,191,085 | $5,222,740 | $14,230,502 | |||||||||
| Realized and unrealized gain (loss) | ||||||||||||
| Realized gain (loss) (identified cost basis) | ||||||||||||
| Unaffiliated issuers |
$(87,471 | ) | $103,113 | $500,801 | ||||||||
| Affiliated issuers |
(66 | ) | 276 | 67 | ||||||||
| Futures contracts |
(11,167 | ) | (47,606 | ) | (132,767 | ) | ||||||
| Net realized gain (loss) |
$(98,704 | ) | $55,783 | $368,101 | ||||||||
| Change in unrealized appreciation or depreciation | ||||||||||||
| Unaffiliated issuers |
$758,331 | $1,785,301 | $5,308,082 | |||||||||
| Affiliated issuers |
(28 | ) | 213 | 448 | ||||||||
| Futures contracts |
(37,537 | ) | (93,842 | ) | (247,743 | ) | ||||||
| Net unrealized gain (loss) |
$720,766 | $1,691,672 | $5,060,787 | |||||||||
| Net realized and unrealized gain (loss) |
$622,062 | $1,747,455 | $5,428,888 | |||||||||
| Change in net assets from operations |
$2,813,147 | $6,970,195 | $19,659,390 | |||||||||
See Notes to Financial Statements
66
Table of Contents
Statements of Operations – continued
| Year ended 3/31/19 | Georgia Fund |
Maryland Fund |
Massachusetts Fund |
|||||||||
| Net investment income (loss) | ||||||||||||
| Interest | $3,456,198 | $3,985,629 | $11,972,213 | |||||||||
| Dividends from affiliated issuers | 28,435 | 22,076 | 83,764 | |||||||||
| Other |
121 | 82 | 361 | |||||||||
| Total investment income |
$3,484,754 | $4,007,787 | $12,056,338 | |||||||||
| Expenses |
|
|||||||||||
| Management fee |
$363,820 | $393,025 | $1,179,573 | |||||||||
| Distribution and service fees |
170,586 | 199,713 | 522,551 | |||||||||
| Shareholder servicing costs |
53,823 | 70,910 | 211,755 | |||||||||
| Administrative services fee |
21,816 | 22,725 | 47,131 | |||||||||
| Independent Trustees’ compensation |
2,771 | 3,126 | 8,468 | |||||||||
| Custodian fee |
22,347 | 19,537 | 35,834 | |||||||||
| Shareholder communications |
6,782 | 8,216 | 13,207 | |||||||||
| Audit and tax fees |
55,139 | 55,142 | 55,186 | |||||||||
| Legal fees |
6,529 | 10,484 | 5,621 | |||||||||
| Registration fees |
56,209 | 58,055 | 60,607 | |||||||||
| Miscellaneous |
25,413 | 25,070 | 28,196 | |||||||||
| Total expenses |
$785,235 | $866,003 | $2,168,129 | |||||||||
| Fees paid indirectly |
(167 | ) | (168 | ) | (93 | ) | ||||||
| Reduction of expenses by investment adviser and distributor |
(93,554 | ) | (165,434 | ) | (64,244 | ) | ||||||
| Net expenses |
$691,514 | $700,401 | $2,103,792 | |||||||||
| Net investment income (loss) |
$2,793,240 | $3,307,386 | $9,952,546 | |||||||||
| Realized and unrealized gain (loss) | ||||||||||||
| Realized gain (loss) (identified cost basis) | ||||||||||||
| Unaffiliated issuers |
$(23,773 | ) | $(165,932 | ) | $(259,488 | ) | ||||||
| Affiliated issuers |
(103 | ) | (136 | ) | 128 | |||||||
| Futures contracts |
(25,478 | ) | (15,634 | ) | (88,511 | ) | ||||||
| Net realized gain (loss) |
$(49,354 | ) | $(181,702 | ) | $(347,871 | ) | ||||||
| Change in unrealized appreciation or depreciation | ||||||||||||
| Unaffiliated issuers |
$893,696 | $713,621 | $2,995,949 | |||||||||
| Affiliated issuers |
5 | 92 | 176 | |||||||||
| Futures contracts |
(52,552 | ) | (52,552 | ) | (165,162 | ) | ||||||
| Net unrealized gain (loss) |
$841,149 | $661,161 | $2,830,963 | |||||||||
| Net realized and unrealized gain (loss) |
$791,795 | $479,459 | $2,483,092 | |||||||||
| Change in net assets from operations |
$3,585,035 | $3,786,845 | $12,435,638 | |||||||||
See Notes to Financial Statements
67
Table of Contents
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 3/31/19 | Alabama Fund |
Arkansas Fund |
California Fund |
|||||||||
| Change in net assets | ||||||||||||
| From operations | ||||||||||||
| Net investment income (loss) | $2,191,085 | $5,222,740 | $14,230,502 | |||||||||
| Net realized gain (loss) |
(98,704 | ) | 55,783 | 368,101 | ||||||||
| Net unrealized gain (loss) |
720,766 | 1,691,672 | 5,060,787 | |||||||||
| Change in net assets from operations |
$2,813,147 | $6,970,195 | $19,659,390 | |||||||||
| Total distributions to shareholders (a) |
$(1,974,686 | ) | $(4,604,311 | ) | $(12,903,267 | ) | ||||||
| Change in net assets from fund share transactions |
$4,035,574 | $(10,773,492 | ) | $40,248,546 | ||||||||
| Total change in net assets |
$4,874,035 | $(8,407,608 | ) | $47,004,669 | ||||||||
| Net assets | ||||||||||||
| At beginning of period | 59,388,750 | 160,311,937 | 369,219,042 | |||||||||
| At end of period (b) |
$64,262,785 | $151,904,329 | $416,223,711 | |||||||||
| Year ended 3/31/19 | Georgia Fund |
Maryland Fund |
Massachusetts Fund |
|||||||||
| Change in net assets | ||||||||||||
| From operations | ||||||||||||
| Net investment income (loss) | $2,793,240 | $3,307,386 | $9,952,546 | |||||||||
| Net realized gain (loss) |
(49,354 | ) | (181,702 | ) | (347,871 | ) | ||||||
| Net unrealized gain (loss) |
841,149 | 661,161 | 2,830,963 | |||||||||
| Change in net assets from operations |
$3,585,035 | $3,786,845 | $12,435,638 | |||||||||
| Total distributions to shareholders (a) |
$(2,467,393 | ) | $(2,936,196 | ) | $(8,931,567 | ) | ||||||
| Change in net assets from fund share transactions |
$5,652,435 | $182,112 | $21,236,786 | |||||||||
| Total change in net assets |
$6,770,077 | $1,032,761 | $24,740,857 | |||||||||
| Net assets | ||||||||||||
| At beginning of period | 79,289,377 | 88,545,126 | 256,332,177 | |||||||||
| At end of period (b) |
$86,059,454 | $89,577,887 | $281,073,034 | |||||||||
| (a) | Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. |
| (b) | Disclosure of accumulated undistributed (distributions in excess of) net investment income is no longer required. See Note 2. |
See Notes to Financial Statements
68
Table of Contents
Statements of Changes in Net Assets – continued
| Year ended 3/31/18 | Alabama Fund |
Arkansas Fund |
California Fund |
|||||||||
| Change in net assets | ||||||||||||
| From operations | ||||||||||||
| Net investment income (loss) | $2,070,102 | $4,996,117 | $13,100,453 | |||||||||
| Net realized gain (loss) |
142,902 | (130,232 | ) | 1,882,263 | ||||||||
| Net unrealized gain (loss) |
(813,599 | ) | (1,284,712 | ) | (3,701,858 | ) | ||||||
| Change in net assets from operations |
$1,399,405 | $3,581,173 | $11,280,858 | |||||||||
| Distributions declared to shareholders | ||||||||||||
| From net investment income |
$(2,033,340 | ) | $(4,940,707 | ) | $(12,462,734 | ) | ||||||
| Change in net assets from fund share transactions |
$(203,446 | ) | $(335,928 | ) | $40,139,326 | |||||||
| Total change in net assets |
$(837,381 | ) | $(1,695,462 | ) | $38,957,450 | |||||||
| Net assets | ||||||||||||
| At beginning of period | 60,226,131 | 162,007,399 | 330,261,592 | |||||||||
| At end of period |
$59,388,750 | $160,311,937 | $369,219,042 | |||||||||
| Undistributed net investment income included in net assets at end of period |
$21,415 | $53,460 | $1,038 | |||||||||
| Year ended 3/31/18 | Georgia Fund |
Maryland Fund |
Massachusetts Fund |
|||||||||
| Change in net assets | ||||||||||||
| From operations | ||||||||||||
| Net investment income (loss) | $2,520,165 | $3,097,531 | $9,289,872 | |||||||||
| Net realized gain (loss) |
120,931 | 331,362 | 932,962 | |||||||||
| Net unrealized gain (loss) |
(1,088,611 | ) | (1,319,897 | ) | (4,158,961 | ) | ||||||
| Change in net assets from operations |
$1,552,485 | $2,108,996 | $6,063,873 | |||||||||
| Distributions declared to shareholders | ||||||||||||
| From net investment income |
$(2,366,561 | ) | $(3,016,866 | ) | $(8,918,061 | ) | ||||||
| Change in net assets from fund share transactions |
$10,318,386 | $954,960 | $26,206,307 | |||||||||
| Total change in net assets |
$9,504,310 | $47,090 | $23,352,119 | |||||||||
| Net assets | ||||||||||||
| At beginning of period | 69,785,067 | 88,498,036 | 232,980,058 | |||||||||
| At end of period |
$79,289,377 | $88,545,126 | $256,332,177 | |||||||||
| Accumulated undistributed (distributions in excess of) net investment income included in net assets at end of period |
$(22,336 | ) | $182,737 | $3,952 | ||||||||
See Notes to Financial Statements
69
Table of Contents
Financial Statements
MFS ALABAMA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years (or life of a particular share class, if shorter). 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.
| Year ended | ||||||||||||||||||||
| Class A | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.02 | $10.12 | $10.49 | $10.48 | $10.11 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) | $0.36 | $0.34 | $0.37 | (c) | $0.39 | $0.38 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.09 | (0.10 | ) | (0.37 | ) | (0.01 | ) | 0.36 | ||||||||||||
| Total from investment operations |
$0.45 | $0.24 | $0.00 | (w) | $0.38 | $0.74 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.32 | ) | $(0.34 | ) | $(0.37 | ) | $(0.37 | ) | $(0.37 | ) | ||||||||||
| Net asset value, end of period (x) |
$10.15 | $10.02 | $10.12 | $10.49 | $10.48 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.63 | 2.35 | (0.07 | )(c) | 3.75 | 7.37 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) | 1.09 | 1.10 | 1.07 | (c) | 1.06 | 1.09 | ||||||||||||||
| Expenses after expense reductions (f) |
0.90 | 0.90 | 0.89 | (c) | 0.93 | 0.93 | ||||||||||||||
| Net investment income (loss) |
3.60 | 3.37 | 3.61 | (c) | 3.76 | 3.69 | ||||||||||||||
| Portfolio turnover |
19 | 17 | 15 | 16 | 22 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$51,280 | $50,914 | $53,883 | $52,956 | $53,140 | |||||||||||||||
| Year ended | ||||||||||||||||||||
| Class B | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.02 | $10.12 | $10.49 | $10.48 | $10.11 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) | $0.28 | $0.27 | $0.30 | (c) | $0.31 | $0.30 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.10 | (0.11 | ) | (0.38 | ) | (0.01 | ) | 0.36 | ||||||||||||
| Total from investment operations |
$0.38 | $0.16 | $(0.08 | ) | $0.30 | $0.66 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.25 | ) | $(0.26 | ) | $(0.29 | ) | $(0.29 | ) | $(0.29 | ) | ||||||||||
| Net asset value, end of period (x) |
$10.15 | $10.02 | $10.12 | $10.49 | $10.48 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
3.85 | 1.59 | (0.81 | )(c) | 2.97 | 6.57 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) | 1.84 | 1.84 | 1.82 | (c) | 1.81 | 1.84 | ||||||||||||||
| Expenses after expense reductions (f) |
1.65 | 1.65 | 1.65 | (c) | 1.68 | 1.68 | ||||||||||||||
| Net investment income (loss) |
2.85 | 2.63 | 2.86 | (c) | 2.99 | 2.92 | ||||||||||||||
| Portfolio turnover |
19 | 17 | 15 | 16 | 22 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$250 | $303 | $467 | $614 | $626 | |||||||||||||||
See Notes to Financial Statements
70
Table of Contents
Financial Highlights – continued
MFS ALABAMA MUNICIPAL BOND FUND – continued
| Year ended | ||||||||||||
| Class I | 3/31/19 | 3/31/18 | 3/31/17 (i) | |||||||||
| Net asset value, beginning of period |
$9.55 | $9.65 | $10.00 | |||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) | $0.37 | $0.35 | $0.38 | (c) | ||||||||
| Net realized and unrealized gain (loss) |
0.08 | (0.11 | ) | (0.36 | ) | |||||||
| Total from investment operations |
$0.45 | $0.24 | $0.02 | |||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.33 | ) | $(0.34 | ) | $(0.37 | ) | ||||||
| Net asset value, end of period (x) |
$9.67 | $9.55 | $9.65 | |||||||||
| Total return (%) (r)(s)(t)(x) |
4.83 | 2.55 | 0.21 | (c) | ||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) | 0.84 | 0.85 | 0.86 | (c) | ||||||||
| Expenses after expense reductions (f) |
0.65 | 0.65 | 0.64 | (c) | ||||||||
| Net investment income (loss) |
3.85 | 3.62 | 3.84 | (c) | ||||||||
| Portfolio turnover |
19 | 17 | 15 | |||||||||
| Net assets at end of period (000 omitted) |
$11,490 | $6,898 | $5,876 | |||||||||
| Year ended | ||||||||||||
| Class R6 | 3/31/19 | 3/31/18 (i) | ||||||||||
| Net asset value, beginning of period |
$9.55 | $9.76 | ||||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) | $0.37 | $0.24 | ||||||||||
| Net realized and unrealized gain (loss) |
0.09 | (0.22 | ) | |||||||||
| Total from investment operations |
$0.46 | $0.02 | ||||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.34 | ) | $(0.23 | ) | ||||||||
| Net asset value, end of period (x) |
$9.67 | $9.55 | ||||||||||
| Total return (%) (r)(s)(t)(x) |
4.92 | 0.25 | (n) | |||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) | 0.77 | 0.84 | (a) | |||||||||
| Expenses after expense reductions (f) |
0.58 | 0.58 | (a) | |||||||||
| Net investment income (loss) |
3.92 | 3.70 | (a) | |||||||||
| Portfolio turnover |
19 | 17 | ||||||||||
| Net assets at end of period (000 omitted) |
$1,242 | $1,274 | ||||||||||
| (a) | Annualized. |
| (c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (i) | For Class I and Class R6, the period is from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
| (n) | Not annualized. |
| (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. |
| (w) | Per share amount was less than $0.01. |
| (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
71
Table of Contents
Financial Highlights – continued
MFS ARKANSAS MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years (or life of a particular share class, if shorter). 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.
| Year ended | ||||||||||||||||||||
| Class A | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$9.64 | $9.73 | $10.07 | $10.04 | $9.66 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.33 | $0.30 | $0.33 | (c) | $0.34 | $0.32 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.12 | (0.09 | ) | (0.35 | ) | (0.01 | ) | 0.37 | ||||||||||||
| Total from investment operations |
$0.45 | $0.21 | $(0.02 | ) | $0.33 | $0.69 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.29 | ) | $(0.30 | ) | $(0.32 | ) | $(0.30 | ) | $(0.31 | ) | ||||||||||
| Net asset value, end of period (x) |
$9.80 | $9.64 | $9.73 | $10.07 | $10.04 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.74 | 2.12 | (0.25 | )(c) | 3.36 | 7.21 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) | 0.93 | 0.92 | 0.92 | (c) | 0.90 | 0.90 | ||||||||||||||
| Expenses after expense reductions (f) |
0.77 | 0.77 | 0.76 | (c) | 0.74 | 0.74 | ||||||||||||||
| Net investment income (loss) |
3.40 | 3.06 | 3.33 | (c) | 3.41 | 3.25 | ||||||||||||||
| Portfolio turnover |
14 | 17 | 17 | 11 | 20 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$121,888 | $141,605 | $145,392 | $160,133 | $169,354 | |||||||||||||||
| Year ended | ||||||||||||||||||||
| Class B | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$9.65 | $9.73 | $10.08 | $10.05 | $9.67 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) | $0.25 | $0.23 | $0.26 | (c) | $0.26 | $0.25 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.13 | (0.09 | ) | (0.37 | ) | (0.01 | ) | 0.36 | ||||||||||||
| Total from investment operations |
$0.38 | $0.14 | $(0.11 | ) | $0.25 | $0.61 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.22 | ) | $(0.22 | ) | $(0.24 | ) | $(0.22 | ) | $(0.23 | ) | ||||||||||
| Net asset value, end of period (x) |
$9.81 | $9.65 | $9.73 | $10.08 | $10.05 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
3.97 | 1.47 | (1.10 | )(c) | 2.58 | 6.40 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) | 1.68 | 1.68 | 1.66 | (c) | 1.65 | 1.65 | ||||||||||||||
| Expenses after expense reductions (f) |
1.52 | 1.52 | 1.52 | (c) | 1.51 | 1.50 | ||||||||||||||
| Net investment income (loss) |
2.64 | 2.31 | 2.57 | (c) | 2.65 | 2.49 | ||||||||||||||
| Portfolio turnover |
14 | 17 | 17 | 11 | 20 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$2,477 | $4,209 | $5,882 | $6,791 | $6,989 | |||||||||||||||
See Notes to Financial Statements
72
Table of Contents
Financial Highlights – continued
MFS ARKANSAS MUNICIPAL BOND FUND – continued
| Year ended | ||||||||||||
| Class I | 3/31/19 | 3/31/18 | 3/31/17 (i) | |||||||||
| Net asset value, beginning of period |
$9.57 | $9.65 | $10.00 | |||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) | $0.33 | $0.31 | $0.34 | (c) | ||||||||
| Net realized and unrealized gain (loss) |
0.13 | (0.09 | ) | (0.37 | ) | |||||||
| Total from investment operations |
$0.46 | $0.22 | $(0.03 | ) | ||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.30 | ) | $(0.30 | ) | $(0.32 | ) | ||||||
| Net asset value, end of period (x) |
$9.73 | $9.57 | $9.65 | |||||||||
| Total return (%) (r)(s)(t)(x) |
4.86 | 2.32 | (0.28 | )(c) | ||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) | 0.68 | 0.67 | 0.68 | (c) | ||||||||
| Expenses after expense reductions (f) |
0.67 | 0.67 | 0.67 | (c) | ||||||||
| Net investment income (loss) |
3.49 | 3.16 | 3.43 | (c) | ||||||||
| Portfolio turnover |
14 | 17 | 17 | |||||||||
| Net assets at end of period (000 omitted) |
$26,586 | $13,733 | $10,733 | |||||||||
| Year ended | ||||||||||||
| Class R6 | 3/31/19 | 3/31/18 (i) | ||||||||||
| Net asset value, beginning of period |
$9.58 | $9.78 | ||||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) | $0.34 | $0.20 | ||||||||||
| Net realized and unrealized gain (loss) |
0.11 | (0.19 | ) | |||||||||
| Total from investment operations |
$0.45 | $0.01 | ||||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.30 | ) | $(0.21 | ) | ||||||||
| Net asset value, end of period (x) |
$9.73 | $9.58 | ||||||||||
| Total return (%) (r)(s)(t)(x) |
4.83 | 0.09 | (n) | |||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) | 0.60 | 0.61 | (a) | |||||||||
| Expenses after expense reductions (f) |
0.59 | 0.61 | (a) | |||||||||
| Net investment income (loss) |
3.58 | 3.19 | (a) | |||||||||
| Portfolio turnover |
14 | 17 | ||||||||||
| Net assets at end of period (000 omitted) |
$954 | $766 | ||||||||||
| (a) | Annualized. |
| (c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (i) | For Class I and Class R6, the period is from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
| (n) | Not annualized. |
| (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
73
Table of Contents
Financial Highlights – continued
MFS CALIFORNIA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years (or life of a particular share class, if shorter). 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.
| Year ended | ||||||||||||||||||||
| Class A | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$5.94 | $5.95 | $6.14 | $6.05 | $5.74 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.22 | $0.23 | $0.23 | (c) | $0.23 | $0.23 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.08 | (0.02 | ) | (0.21 | ) | 0.08 | 0.30 | |||||||||||||
| Total from investment operations |
$0.30 | $0.21 | $0.02 | $0.31 | $0.53 | |||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.20 | ) | $(0.22 | ) | $(0.21 | ) | $(0.22 | ) | $(0.22 | ) | ||||||||||
| Net asset value, end of period (x) |
$6.04 | $5.94 | $5.95 | $6.14 | $6.05 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
5.21 | 3.47 | 0.33 | (c) | 5.23 | 9.38 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
0.87 | 0.88 | 0.88 | (c) | 0.88 | 0.87 | ||||||||||||||
| Expenses after expense reductions (f) |
0.71 | 0.72 | 0.72 | (c) | 0.72 | 0.72 | ||||||||||||||
| Net investment income (loss) |
3.76 | 3.75 | 3.72 | (c) | 3.78 | 3.82 | ||||||||||||||
| Portfolio turnover |
15 | 15 | 17 | 18 | 24 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$299,882 | $272,958 | $251,271 | $281,670 | $255,482 | |||||||||||||||
| Year ended | ||||||||||||||||||||
| Class B | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$5.94 | $5.95 | $6.14 | $6.05 | $5.74 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.18 | $0.18 | $0.18 | (c) | $0.18 | $0.18 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.08 | (0.02 | ) | (0.20 | ) | 0.08 | 0.31 | |||||||||||||
| Total from investment operations |
$0.26 | $0.16 | $(0.02 | ) | $0.26 | $0.49 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.16 | ) | $(0.17 | ) | $(0.17 | ) | $(0.17 | ) | $(0.18 | ) | ||||||||||
| Net asset value, end of period (x) |
$6.04 | $5.94 | $5.95 | $6.14 | $6.05 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.43 | 2.69 | (0.43 | )(c) | 4.43 | 8.55 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
1.62 | 1.63 | 1.63 | (c) | 1.63 | 1.62 | ||||||||||||||
| Expenses after expense reductions (f) |
1.46 | 1.48 | 1.49 | (c) | 1.49 | 1.48 | ||||||||||||||
| Net investment income (loss) |
3.01 | 3.02 | 2.95 | (c) | 3.03 | 3.07 | ||||||||||||||
| Portfolio turnover |
15 | 15 | 17 | 18 | 24 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$1,506 | $1,913 | $2,672 | $3,131 | $3,535 | |||||||||||||||
See Notes to Financial Statements
74
Table of Contents
Financial Highlights – continued
MFS CALIFORNIA MUNICIPAL BOND FUND – continued
| Year ended | ||||||||||||||||||||
| Class C | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$5.96 | $5.97 | $6.16 | $6.07 | $5.76 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.17 | $0.17 | $0.17 | (c) | $0.17 | $0.17 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.08 | (0.02 | ) | (0.20 | ) | 0.08 | 0.31 | |||||||||||||
| Total from investment operations |
$0.25 | $0.15 | $(0.03 | ) | $0.25 | $0.48 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.15 | ) | $(0.16 | ) | $(0.16 | ) | $(0.16 | ) | $(0.17 | ) | ||||||||||
| Net asset value, end of period (x) |
$6.06 | $5.96 | $5.97 | $6.16 | $6.07 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.26 | 2.54 | (0.55 | )(c) | 4.27 | 8.37 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
1.62 | 1.63 | 1.63 | (c) | 1.63 | 1.62 | ||||||||||||||
| Expenses after expense reductions (f) |
1.61 | 1.62 | 1.62 | (c) | 1.62 | 1.62 | ||||||||||||||
| Net investment income (loss) |
2.86 | 2.86 | 2.82 | (c) | 2.87 | 2.91 | ||||||||||||||
| Portfolio turnover |
15 | 15 | 17 | 18 | 24 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$22,786 | $31,800 | $33,950 | $33,748 | $30,907 | |||||||||||||||
| Year ended | ||||||||||||||||||||
| Class I | 3/31/19 | 3/31/18 | 3/31/17 (i) | |||||||||||||||||
| Net asset value, beginning of period |
$9.67 | $9.68 | $10.00 | |||||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) | $0.37 | $0.37 | $0.38 | (c) | ||||||||||||||||
| Net realized and unrealized gain (loss) |
0.13 | (0.02 | ) | (0.36 | ) | |||||||||||||||
| Total from investment operations |
$0.50 | $0.35 | $0.02 | |||||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.34 | ) | $(0.36 | ) | $(0.34 | ) | ||||||||||||||
| Net asset value, end of period (x) |
$9.83 | $9.67 | $9.68 | |||||||||||||||||
| Total return (%) (r)(s)(t)(x) |
5.27 | 3.63 | 0.20 | (c) | ||||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) | 0.62 | 0.62 | 0.63 | (c) | ||||||||||||||||
| Expenses after expense reductions (f) |
0.61 | 0.61 | 0.63 | (c) | ||||||||||||||||
| Net investment income (loss) |
3.85 | 3.83 | 3.83 | (c) | ||||||||||||||||
| Portfolio turnover |
15 | 15 | 17 | |||||||||||||||||
| Net assets at end of period (000 omitted) |
$79,276 | $56,553 | $42,369 | |||||||||||||||||
See Notes to Financial Statements
75
Table of Contents
Financial Highlights – continued
MFS CALIFORNIA MUNICIPAL BOND FUND – continued
| Year ended | ||||||||
| Class R6 | 3/31/19 | 3/31/18 (i) | ||||||
| Net asset value, beginning of period |
$9.66 | $9.84 | ||||||
| Income (loss) from investment operations | ||||||||
| Net investment income (loss) (d) | $0.38 | $0.24 | ||||||
| Net realized and unrealized gain (loss) |
0.12 | (0.18 | ) | |||||
| Total from investment operations |
$0.50 | $0.06 | ||||||
| Less distributions declared to shareholders | ||||||||
| From net investment income |
$(0.34 | ) | $(0.24 | ) | ||||
| Net asset value, end of period (x) |
$9.82 | $9.66 | ||||||
| Total return (%) (r)(s)(t)(x) |
5.36 | 0.61 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||
| Expenses before expense reductions (f) | 0.54 | 0.56 | (a) | |||||
| Expenses after expense reductions (f) |
0.53 | 0.55 | (a) | |||||
| Net investment income (loss) |
3.92 | 3.78 | (a) | |||||
| Portfolio turnover |
15 | 15 | ||||||
| Net assets at end of period (000 omitted) |
$12,773 | $5,995 | ||||||
| (a) | Annualized. |
| (c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (i) | For Class I and Class R6, the period is from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
| (n) | Not annualized. |
| (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
76
Table of Contents
Financial Highlights – continued
MFS GEORGIA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years (or life of a particular share class, if shorter). 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.
| Year ended | ||||||||||||||||||||
| Class A | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.58 | $10.68 | $11.02 | $11.02 | $10.58 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.36 | $0.35 | $0.36 | (c) | $0.36 | $0.37 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.11 | (0.12 | ) | (0.36 | ) | (0.01 | ) | 0.42 | ||||||||||||
| Total from investment operations |
$0.47 | $0.23 | $0.00 | (w) | $0.35 | $0.79 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.32 | ) | $(0.33 | ) | $(0.34 | ) | $(0.35 | ) | $(0.35 | ) | ||||||||||
| Net asset value, end of period (x) |
$10.73 | $10.58 | $10.68 | $11.02 | $11.02 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.51 | 2.15 | (0.06 | )(c) | 3.28 | 7.53 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
1.02 | 1.04 | 1.03 | (c) | 1.03 | 1.04 | ||||||||||||||
| Expenses after expense reductions (f) |
0.90 | 0.90 | 0.90 | (c) | 0.95 | 0.95 | ||||||||||||||
| Net investment income (loss) |
3.41 | 3.26 | 3.26 | (c) | 3.32 | 3.37 | ||||||||||||||
| Portfolio turnover |
14 | 12 | 8 | 11 | 16 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$70,456 | $65,922 | $61,229 | $61,065 | $59,289 | |||||||||||||||
| Year ended | ||||||||||||||||||||
| Class B | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.62 | $10.72 | $11.06 | $11.06 | $10.62 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.28 | $0.27 | $0.28 | (c) | $0.28 | $0.29 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.11 | (0.12 | ) | (0.36 | ) | (0.01 | ) | 0.42 | ||||||||||||
| Total from investment operations |
$0.39 | $0.15 | $(0.08 | ) | $0.27 | $0.71 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.24 | ) | $(0.25 | ) | $(0.26 | ) | $(0.27 | ) | $(0.27 | ) | ||||||||||
| Net asset value, end of period (x) |
$10.77 | $10.62 | $10.72 | $11.06 | $11.06 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
3.73 | 1.40 | (0.79 | )(c) | 2.50 | 6.70 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
1.77 | 1.79 | 1.78 | (c) | 1.78 | 1.78 | ||||||||||||||
| Expenses after expense reductions (f) |
1.65 | 1.65 | 1.66 | (c) | 1.70 | 1.70 | ||||||||||||||
| Net investment income (loss) |
2.67 | 2.54 | 2.52 | (c) | 2.56 | 2.61 | ||||||||||||||
| Portfolio turnover |
14 | 12 | 8 | 11 | 16 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$399 | $563 | $1,105 | $1,296 | $1,561 | |||||||||||||||
See Notes to Financial Statements
77
Table of Contents
Financial Highlights – continued
MFS GEORGIA MUNICIPAL BOND FUND – continued
| Year ended | ||||||||||||
| Class I | 3/31/19 | 3/31/18 | 3/31/17 (i) | |||||||||
| Net asset value, beginning of period |
$9.60 | $9.69 | $10.00 | |||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) | $0.35 | $0.34 | $0.35 | (c) | ||||||||
| Net realized and unrealized gain (loss) |
0.09 | (0.11 | ) | (0.33 | ) | |||||||
| Total from investment operations |
$0.44 | $0.23 | $0.02 | |||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.31 | ) | $(0.32 | ) | $(0.33 | ) | ||||||
| Net asset value, end of period (x) |
$9.73 | $9.60 | $9.69 | |||||||||
| Total return (%) (r)(s)(t)(x) |
4.70 | 2.40 | 0.19 | (c) | ||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) | 0.77 | 0.79 | 0.80 | (c) | ||||||||
| Expenses after expense reductions (f) |
0.65 | 0.65 | 0.64 | (c) | ||||||||
| Net investment income (loss) |
3.65 | 3.49 | 3.52 | (c) | ||||||||
| Portfolio turnover |
14 | 12 | 8 | |||||||||
| Net assets at end of period (000 omitted) |
$7,834 | $6,817 | $7,451 | |||||||||
| Year ended | ||||||||||||
| Class R6 | 3/31/19 | 3/31/18 (i) | ||||||||||
| Net asset value, beginning of period |
$9.60 | $9.82 | ||||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) | $0.36 | $0.23 | ||||||||||
| Net realized and unrealized gain (loss) |
0.09 | (0.23 | ) | |||||||||
| Total from investment operations |
$0.45 | $0.00 | (w) | |||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.32 | ) | $(0.22 | ) | ||||||||
| Net asset value, end of period (x) |
$9.73 | $9.60 | ||||||||||
| Total return (%) (r)(s)(t)(x) |
4.77 | (0.05 | )(n) | |||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) | 0.70 | 0.82 | (a) | |||||||||
| Expenses after expense reductions (f) |
0.59 | 0.59 | (a) | |||||||||
| Net investment income (loss) |
3.72 | 3.56 | (a) | |||||||||
| Portfolio turnover |
14 | 12 | ||||||||||
| Net assets at end of period (000 omitted) |
$7,371 | $5,988 | ||||||||||
| (a) | Annualized. |
| (c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (i) | For Class I and Class R6, the period is from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
| (n) | Not annualized. |
| (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. |
| (w) | Per share amount was less than $0.01. |
| (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
78
Table of Contents
Financial Highlights – continued
MFS MARYLAND MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years (or life of a particular share class, if shorter). 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.
| Year ended | ||||||||||||||||||||
| Class A | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.65 | $10.76 | $11.09 | $11.13 | $10.76 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) | $0.40 | $0.38 | $0.40 | (c) | $0.39 | $0.38 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.06 | (0.12 | ) | (0.35 | ) | (0.05 | ) | 0.36 | ||||||||||||
| Total from investment operations |
$0.46 | $0.26 | $0.05 | $0.34 | $0.74 | |||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.35 | ) | $(0.37 | ) | $(0.38 | ) | $(0.38 | ) | $(0.37 | ) | ||||||||||
| Net asset value, end of period |
$10.76 | $10.65 | $10.76 | $11.09 | $11.13 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.46 | 2.39 | 0.43 | (c) | 3.09 | 6.99 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) | 1.01 | 1.02 | 0.99 | (c) | 0.98 | 0.97 | ||||||||||||||
| Expenses after expense reductions (f) |
0.82 | 0.82 | 0.82 | (c) | 0.87 | 0.95 | ||||||||||||||
| Net investment income (loss) |
3.77 | 3.48 | 3.68 | (c) | 3.57 | 3.46 | ||||||||||||||
| Portfolio turnover |
14 | 23 | 17 | 10 | 18 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$75,215 | $76,993 | $80,456 | $82,145 | $86,455 | |||||||||||||||
| Year ended | ||||||||||||||||||||
| Class B | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.65 | $10.76 | $11.08 | $11.12 | $10.75 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) | $0.32 | $0.29 | $0.32 | (c) | $0.31 | $0.30 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.05 | (0.11 | ) | (0.34 | ) | (0.06 | ) | 0.36 | ||||||||||||
| Total from investment operations |
$0.37 | $0.18 | $(0.02 | ) | $0.25 | $0.66 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.27 | ) | $(0.29 | ) | $(0.30 | ) | $(0.29 | ) | $(0.29 | ) | ||||||||||
| Net asset value, end of period |
$10.75 | $10.65 | $10.76 | $11.08 | $11.12 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
3.58 | 1.62 | (0.23 | )(c) | 2.32 | 6.19 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) | 1.76 | 1.77 | 1.74 | (c) | 1.73 | 1.72 | ||||||||||||||
| Expenses after expense reductions (f) |
1.58 | 1.58 | 1.57 | (c) | 1.62 | 1.70 | ||||||||||||||
| Net investment income (loss) |
3.01 | 2.73 | 2.94 | (c) | 2.82 | 2.70 | ||||||||||||||
| Portfolio turnover |
14 | 23 | 17 | 10 | 18 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$1,217 | $1,331 | $1,605 | $1,958 | $2,308 | |||||||||||||||
See Notes to Financial Statements
79
Table of Contents
Financial Highlights – continued
MFS MARYLAND MUNICIPAL BOND FUND – continued
| Year ended | ||||||||||||
| Class I | 3/31/19 | 3/31/18 | 3/31/17 (i) | |||||||||
| Net asset value, beginning of period |
$9.61 | $9.71 | $10.00 | |||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) | $0.38 | $0.36 | $0.38 | (c) | ||||||||
| Net realized and unrealized gain (loss) |
0.05 | (0.11 | ) | (0.30 | ) | |||||||
| Total from investment operations |
$0.43 | $0.25 | $0.08 | |||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.34 | ) | $(0.35 | ) | $(0.37 | ) | ||||||
| Net asset value, end of period |
$9.70 | $9.61 | $9.71 | |||||||||
| Total return (%) (r)(s)(t)(x) |
4.61 | 2.62 | 0.78 | (c) | ||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) | 0.76 | 0.77 | 0.78 | (c) | ||||||||
| Expenses after expense reductions (f) |
0.58 | 0.58 | 0.57 | (c) | ||||||||
| Net investment income (loss) |
4.01 | 3.72 | 3.85 | (c) | ||||||||
| Portfolio turnover |
14 | 23 | 17 | |||||||||
| Net assets at end of period (000 omitted) |
$11,831 | $9,261 | $6,437 | |||||||||
| Year ended | ||||||||||||
| Class R6 | 3/31/19 | 3/31/18 (i) | ||||||||||
| Net asset value, beginning of period |
$9.61 | $9.81 | ||||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) | $0.39 | $0.24 | ||||||||||
| Net realized and unrealized gain (loss) |
0.05 | (0.21 | ) | |||||||||
| Total from investment operations |
$0.44 | $0.03 | ||||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.35 | ) | $(0.23 | ) | ||||||||
| Net asset value, end of period |
$9.70 | $9.61 | ||||||||||
| Total return (%) (r)(s)(t)(x) |
4.67 | 0.35 | (n) | |||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) | 0.70 | 0.76 | (a) | |||||||||
| Expenses after expense reductions (f) |
0.52 | 0.52 | (a) | |||||||||
| Net investment income (loss) |
4.07 | 3.79 | (a) | |||||||||
| Portfolio turnover |
14 | 23 | ||||||||||
| Net assets at end of period (000 omitted) |
$1,315 | $961 | ||||||||||
| (a) | Annualized. |
| (c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
| (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. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (i) | For Class I and Class R6, the period is from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
| (n) | Not annualized. |
| (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
80
Table of Contents
Financial Highlights – continued
MFS MASSACHUSETTS MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years (or life of a particular share class, if shorter). 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.
| Year ended | ||||||||||||||||||||
| Class A | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.90 | $11.02 | $11.43 | $11.40 | $10.92 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) | $0.41 | $0.42 | $0.46 | (c) | $0.41 | $0.40 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.09 | (0.13 | ) | (0.46 | ) | 0.01 | 0.47 | |||||||||||||
| Total from investment operations |
$0.50 | $0.29 | $0.00 | (w) | $0.42 | $0.87 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.36 | ) | $(0.41 | ) | $(0.41 | ) | $(0.39 | ) | $(0.39 | ) | ||||||||||
| Net asset value, end of period (x) |
$11.04 | $10.90 | $11.02 | $11.43 | $11.40 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.74 | 2.60 | (0.04 | )(c) | 3.78 | 8.02 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) | 0.88 | 0.89 | 0.88 | (c) | 0.88 | 0.86 | ||||||||||||||
| Expenses after expense reductions (f) |
0.85 | 0.86 | 0.85 | (c) | 0.85 | 0.84 | ||||||||||||||
| Net investment income (loss) |
3.75 | 3.82 | 4.06 | (c) | 3.66 | 3.58 | ||||||||||||||
| Portfolio turnover |
13 | 19 | 15 | 15 | 13 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$207,565 | $202,967 | $207,001 | $226,552 | $229,134 | |||||||||||||||
| Year ended | ||||||||||||||||||||
| Class B | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.92 | $11.04 | $11.45 | $11.42 | $10.94 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) | $0.32 | $0.34 | $0.37 | (c) | $0.33 | $0.32 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.10 | (0.14 | ) | (0.46 | ) | 0.00 | (w) | 0.46 | ||||||||||||
| Total from investment operations |
$0.42 | $0.20 | $(0.09 | ) | $0.33 | $0.78 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.28 | ) | $(0.32 | ) | $(0.32 | ) | $(0.30 | ) | $(0.30 | ) | ||||||||||
| Net asset value, end of period (x) |
$11.06 | $10.92 | $11.04 | $11.45 | $11.42 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
3.94 | 1.81 | (0.80 | )(c) | 2.98 | 7.18 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) | 1.63 | 1.64 | 1.63 | (c) | 1.63 | 1.61 | ||||||||||||||
| Expenses after expense reductions (f) |
1.62 | 1.63 | 1.62 | (c) | 1.62 | 1.60 | ||||||||||||||
| Net investment income (loss) |
2.98 | 3.06 | 3.29 | (c) | 2.88 | 2.81 | ||||||||||||||
| Portfolio turnover |
13 | 19 | 15 | 15 | 13 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$1,664 | $1,858 | $2,509 | $3,206 | $3,737 | |||||||||||||||
See Notes to Financial Statements
81
Table of Contents
Financial Highlights – continued
MFS MASSACHUSETTS MUNICIPAL BOND FUND – continued
| Year ended | ||||||||||||
| Class I | 3/31/19 | 3/31/18 | 3/31/17 (i) | |||||||||
| Net asset value, beginning of period |
$9.54 | $9.65 | $10.00 | |||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) | $0.38 | $0.39 | $0.42 | (c) | ||||||||
| Net realized and unrealized gain (loss) |
0.08 | (0.12 | ) | (0.39 | ) | |||||||
| Total from investment operations |
$0.46 | $0.27 | $0.03 | |||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.34 | ) | $(0.38 | ) | $(0.38 | ) | ||||||
| Net asset value, end of period (x) |
$9.66 | $9.54 | $9.65 | |||||||||
| Total return (%) (r)(s)(t)(x) |
4.95 | 2.76 | 0.30 | (c) | ||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) | 0.63 | 0.64 | 0.64 | (c) | ||||||||
| Expenses after expense reductions (f) |
0.62 | 0.63 | 0.63 | (c) | ||||||||
| Net investment income (loss) |
3.98 | 4.00 | 4.30 | (c) | ||||||||
| Portfolio turnover |
13 | 19 | 15 | |||||||||
| Net assets at end of period (000 omitted) |
$68,669 | $49,523 | $23,470 | |||||||||
| Year ended | ||||||||||||
| Class R6 | 3/31/19 | 3/31/18 (i) | ||||||||||
| Net asset value, beginning of period |
$9.54 | $9.77 | ||||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) | $0.38 | $0.24 | ||||||||||
| Net realized and unrealized gain (loss) |
0.10 | (0.21 | ) | |||||||||
| Total from investment operations |
$0.48 | $0.03 | ||||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.35 | ) | $(0.26 | ) | ||||||||
| Net asset value, end of period (x) |
$9.67 | $9.54 | ||||||||||
| Total return (%) (r)(s)(t)(x) |
5.13 | 0.26 | (n) | |||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) | 0.56 | 0.58 | (a) | |||||||||
| Expenses after expense reductions (f) |
0.55 | 0.57 | (a) | |||||||||
| Net investment income (loss) |
4.05 | 3.85 | (a) | |||||||||
| Portfolio turnover |
13 | 19 | ||||||||||
| Net assets at end of period (000 omitted) |
$3,176 | $1,983 | ||||||||||
| (a) | Annualized. |
| (c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (i) | For Class I and Class R6, the period is from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
| (n) | Not annualized. |
| (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. |
| (w) | Per share amount was less than $0.01. |
| (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
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| (1) | Business and Organization |
MFS Alabama Municipal Bond Fund (Alabama Fund), MFS Arkansas Municipal Bond Fund (Arkansas Fund), MFS California Municipal Bond Fund (California Fund), MFS Georgia Municipal Bond Fund (Georgia Fund), MFS Maryland Municipal Bond Fund (Maryland Fund), and MFS Massachusetts Municipal Bond Fund (Massachusetts Fund) are each a diversified series of MFS Municipal Series Trust which 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.
Each 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 each fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. Each fund invests primarily in municipal instruments, which generally trade in the over-the-counter market. The value of municipal instruments can be affected by changes in their actual or perceived credit quality. The credit quality of, and the ability to pay principal and interest when due by, an issuer of a municipal instrument depends on the credit quality of the entity supporting the municipal instrument, how essential any services supported by the municipal instrument are, the sufficiency of any revenues or taxes that support the municipal instrument, and/or the willingness or ability of the appropriate government entity to approve any appropriations necessary to support the municipal instrument. Municipal instruments may be supported by insurance which typically guarantees the timely payment of all principal and interest due on the underlying municipal instrument. The value of a municipal instrument can be volatile and significantly affected by adverse tax changes or court rulings, legislative or political changes, changes in specific or general market and economic conditions in the region or state where the instrument is issued, and the financial condition of municipal issuers and of municipal instrument insurers of which there are a limited number. Also, because many municipal instruments are issued to finance similar projects, conditions in certain industries can significantly affect the funds and the overall municipal market. If the Internal Revenue Service determines an issuer of a municipal instrument has not complied with the applicable tax requirements, interest from the security could become taxable, the security could decline in value, and distributions made by the funds could be taxable to shareholders.
In March 2017, the FASB issued Accounting Standards Update 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20) – Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). For entities that hold callable debt securities at a premium, ASU 2017-08 requires that the premium be amortized to the earliest call date. ASU 2017-08 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Management has evaluated the potential impacts of ASU 2017-08 and believes that adoption of ASU 2017-08 will not have a material effect on each fund’s overall financial position or its overall results of operations.
Balance Sheet Offsetting – Each 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 Statements of Assets and Liabilities across transactions between each fund and the applicable counterparty. Each 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 each fund, have been included in each fund’s Significant Accounting Policies note under the captions for each of the fund’s in-scope financial instruments and transactions.
Investment Valuations – 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. 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. 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. 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, and other market data.
The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of each fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the
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Notes to Financial Statements – continued
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 each fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of each fund’s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. 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 each 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 each fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that each fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which each fund determines its net asset value per share.
Various inputs are used in determining the value of each 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. Each fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments, such as futures contracts. The following is a summary of the levels used as of March 31, 2019 in valuing each fund’s assets or liabilities:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Alabama Fund |
||||||||||||||||
| Financial Instruments | ||||||||||||||||
| Municipal Bonds | $— | $62,351,578 | $— | $62,351,578 | ||||||||||||
| Mutual Funds | 267,171 | — | — | 267,171 | ||||||||||||
| Total | $267,171 | $62,351,578 | $— | $62,618,749 | ||||||||||||
| Other Financial Instruments | ||||||||||||||||
| Futures Contracts – Liabilities | $(37,537 | ) | $— | $— | $(37,537 | ) | ||||||||||
| Arkansas Fund |
||||||||||||||||
| Financial Instruments | ||||||||||||||||
| Municipal Bonds | $— | $149,416,476 | $— | $149,416,476 | ||||||||||||
| Mutual Funds | 3,016,600 | — | — | 3,016,600 | ||||||||||||
| Total | $3,016,600 | $149,416,476 | $— | $152,433,076 | ||||||||||||
| Other Financial Instruments | ||||||||||||||||
| Futures Contracts – Liabilities | $(93,842 | ) | $— | $— | $(93,842 | ) | ||||||||||
| California Fund |
||||||||||||||||
| Financial Instruments | ||||||||||||||||
| Municipal Bonds | $— | $401,108,739 | $— | $401,108,739 | ||||||||||||
| Mutual Funds | 11,566,146 | — | — | 11,566,146 | ||||||||||||
| Total | $11,566,146 | $401,108,739 | $— | $412,674,885 | ||||||||||||
| Other Financial Instruments | ||||||||||||||||
| Futures Contracts – Liabilities | $(247,743 | ) | $— | $— | $(247,743 | ) | ||||||||||
| Georgia Fund |
||||||||||||||||
| Financial Instruments | ||||||||||||||||
| Municipal Bonds | $— | $84,100,618 | $— | $84,100,618 | ||||||||||||
| Mutual Funds | 1,286,347 | — | — | 1,286,347 | ||||||||||||
| Total | $1,286,347 | $84,100,618 | $— | $85,386,965 | ||||||||||||
| Other Financial Instruments | ||||||||||||||||
| Futures Contracts – Liabilities | $(52,552 | ) | $— | $— | $(52,552 | ) | ||||||||||
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| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Maryland Fund |
||||||||||||||||
| Financial Instruments | ||||||||||||||||
| Municipal Bonds | $— | $86,874,576 | $— | $86,874,576 | ||||||||||||
| Mutual Funds | 1,803,289 | — | — | 1,803,289 | ||||||||||||
| Total | $1,803,289 | $86,874,576 | $— | $88,677,865 | ||||||||||||
| Other Financial Instruments | ||||||||||||||||
| Futures Contracts – Liabilities | $(52,552 | ) | $— | $— | $(52,552 | ) | ||||||||||
| Massachusetts Fund |
||||||||||||||||
| Financial Instruments | ||||||||||||||||
| Municipal Bonds | $— | $277,071,248 | $— | $277,071,248 | ||||||||||||
| Mutual Funds | 7,689,228 | — | — | 7,689,228 | ||||||||||||
| Total | $7,689,228 | $277,071,248 | $— | $284,760,476 | ||||||||||||
| Other Financial Instruments | ||||||||||||||||
| Futures Contracts – Liabilities | $(165,162 | ) | $— | $— | $(165,162 | ) | ||||||||||
For further information regarding security characteristics, see the Portfolio of Investments.
Derivatives – The funds use derivatives primarily to increase or decrease exposure to a particular market or segment of the market, or security, to increase or decrease interest rate 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 funds use 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 funds during the period were futures contracts. Depending on the type of derivative, the 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 funds may be unable to promptly close out a futures position in instances where the daily fluctuation in the price for that type of future exceeds the daily limit set by the exchange. The funds’ period end derivatives, as presented in the Portfolio of Investments and the associated Derivative Contract tables, generally are indicative of the volume of the funds’ derivative activity during the period.
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 funds at March 31, 2019 as reported in the Statements of Assets and Liabilities:
| Fair Value (a) | ||||||||||
| Fund | Risk | Derivative Contracts | Liability Derivatives | |||||||
| Alabama Fund | Interest Rate | Interest Rate Futures | $(37,537 | ) | ||||||
| Arkansas Fund | Interest Rate | Interest Rate Futures | (93,842 | ) | ||||||
| California Fund | Interest Rate | Interest Rate Futures | (247,743 | ) | ||||||
| Georgia Fund | Interest Rate | Interest Rate Futures | (52,552 | ) | ||||||
| Maryland Fund | Interest Rate | Interest Rate Futures | (52,552 | ) | ||||||
| Massachusetts Fund | Interest Rate | Interest Rate Futures | (165,162 | ) | ||||||
| (a) | Values presented in this table for futures contracts correspond to the values reported in the funds’ Portfolio of Investments. Only the current day net variation margin for futures contracts is separately reported within the funds’ Statements of Assets and Liabilities. |
The following table presents, by major type of derivative contract, the realized gain (loss) on derivatives held by the funds for the year ended March 31, 2019 as reported in the Statements of Operations:
| Fund | Risk | Futures Contracts | ||
| Alabama Fund | Interest Rate | $(11,167) | ||
| Arkansas Fund | Interest Rate | (47,606) | ||
| California Fund | Interest Rate | (132,767) | ||
| Georgia Fund | Interest Rate | (25,478) | ||
| Maryland Fund | Interest Rate | (15,634) | ||
| Massachusetts Fund | Interest Rate | (88,511) | ||
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The following table presents, by major type of derivative contract, the change in unrealized appreciation or depreciation on derivatives held by the funds for the year ended March 31, 2019 as reported in the Statements of Operations:
| Fund | Risk | Futures Contracts | ||
| Alabama Fund | Interest Rate | $(37,537) | ||
| Arkansas Fund | Interest Rate | (93,842) | ||
| California Fund | Interest Rate | (247,743) | ||
| Georgia Fund | Interest Rate | (52,552) | ||
| Maryland Fund | Interest Rate | (52,552) | ||
| Massachusetts Fund | Interest Rate | (165,162) | ||
Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain, but not all, uncleared derivatives, each 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 each fund’s credit risk to such counterparty equal to any amounts payable by each 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 collateral 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 each fund’s collateral or margin obligations under derivative contracts, if any, will be reported separately in the Statements 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 funds 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 Statements of Operations.
Futures Contracts – The funds entered into futures contracts which may be used to hedge against or obtain broad market exposure, interest rate 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 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.
Indemnifications – Under each 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 each fund. Additionally, in the normal course of business, each fund enters into agreements with service providers that may contain indemnification clauses. Each fund’s maximum exposure under these agreements is unknown as this would involve future claims that may be made against each fund that have not yet occurred.
Investment Transactions and Income – Investment transactions are recorded on the trade date. 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. Interest payments received in additional securities are recorded on the ex-interest date in an amount equal to the value of the security on such date.
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Each fund may receive proceeds from litigation settlements. Any proceeds received from litigation involving portfolio holdings are reflected in the Statements 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 Statements of Operations.
Fees Paid Indirectly – Each fund’s custody fee may be reduced by a credit earned under an arrangement that measures the value of U.S. dollars deposited with the custodian by each fund. The amount of the credit, for the year ended March 31, 2019, is shown as a reduction of total expenses in the Statements of Operations.
Tax Matters and Distributions – Each 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 and tax-exempt income, including realized capital gains. As a result, no provision for federal income tax is required. Each 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 each 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.
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. Distributions in excess of net investment income or net realized gains are temporary overdistributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.
Book/tax differences primarily relate to expiration of capital loss carryforwards, amortization and accretion of debt securities, and derivative transactions, as applicable to each fund.
The tax character of distributions declared to shareholders for the last two fiscal years is as follows:
| Year ended 3/31/19 | Alabama Fund |
Arkansas Fund |
California Fund |
Georgia Fund |
Maryland Fund |
Massachusetts Fund |
||||||||||||||||||
| Ordinary income (including any short-term capital gains) | $20,750 | $160,700 | $244,503 | $19,398 | $12,372 | $500,500 | ||||||||||||||||||
| Tax-exempt income | 1,953,936 | 4,443,611 | 12,658,764 | 2,447,995 | 2,923,824 | 8,431,067 | ||||||||||||||||||
| Total distributions | $1,974,686 | $4,604,311 | $12,903,267 | $2,467,393 | $2,936,196 | $8,931,567 | ||||||||||||||||||
| Year ended 3/31/18 | Alabama Fund |
Arkansas Fund |
California Fund |
Georgia Fund |
Maryland Fund |
Massachusetts Fund |
||||||||||||||||||
| Ordinary income (including any short-term capital gains) | $22,206 | $26,508 | $238,000 | $5,087 | $27,500 | $264,135 | ||||||||||||||||||
| Tax-exempt income | 2,011,134 | 4,914,199 | 12,224,734 | 2,361,474 | 2,989,366 | 8,653,926 | ||||||||||||||||||
| Total distributions | $2,033,340 | $4,940,707 | $12,462,734 | $2,366,561 | $3,016,866 | $8,918,061 | ||||||||||||||||||
The federal tax cost and the tax basis components of distributable earnings were as follows:
| As of 3/31/19 | Alabama Fund |
Arkansas Fund |
California Fund |
Georgia Fund |
Maryland Fund |
Massachusetts Fund |
||||||||||||||||||
| Cost of investments | $60,084,845 | $146,386,408 | $389,367,184 | $82,221,607 | $85,095,707 | $269,360,430 | ||||||||||||||||||
| Gross appreciation | 2,573,169 | 6,125,225 | 23,467,143 | 3,223,553 | 3,633,903 | 15,583,308 | ||||||||||||||||||
| Gross depreciation | (76,802 | ) | (172,399 | ) | (407,185 | ) | (110,747 | ) | (104,297 | ) | (348,424 | ) | ||||||||||||
| Net unrealized appreciation (depreciation) | $2,496,367 | $5,952,826 | $23,059,958 | $3,112,806 | $3,529,606 | $15,234,884 | ||||||||||||||||||
| Undistributed ordinary income | 8,235 | 31,518 | 195,397 | 34,265 | 13,399 | 46,625 | ||||||||||||||||||
| Undistributed tax-exempt income | 220,979 | 492,999 | 1,135,367 | 236,595 | 504,957 | 845,038 | ||||||||||||||||||
| Capital loss carryforwards | (1,097,925 | ) | (6,134,210 | ) | (4,715,841 | ) | (1,614,262 | ) | (2,920,563 | ) | (5,294,927 | ) | ||||||||||||
| Other temporary differences | (171,184 | ) | (383,329 | ) | (1,111,827 | ) | (224,014 | ) | (258,042 | ) | (791,220 | ) | ||||||||||||
As of March 31, 2019, each 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:
| Alabama Fund |
Arkansas Fund |
California Fund |
Georgia Fund |
Maryland Fund |
Massachusetts Fund |
|||||||||||||||||||
| Short-Term | $(670,711 | ) | $(2,453,955 | ) | $(3,352,384 | ) | $(1,125,805 | ) | $(1,757,918 | ) | $(4,750,592 | ) | ||||||||||||
| Long-Term | (427,214 | ) | (3,680,255 | ) | (1,363,457 | ) | (488,457 | ) | (1,162,645 | ) | (544,335 | ) | ||||||||||||
| Total | $(1,097,925 | ) | $(6,134,210 | ) | $(4,715,841 | ) | $(1,614,262 | ) | $(2,920,563 | ) | $(5,294,927 | ) | ||||||||||||
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Multiple Classes of Shares of Beneficial Interest – Each fund offers multiple classes of shares, which differ in their respective distribution and service fees. Each fund’s income and common expenses are allocated to shareholders based on the value of settled shares outstanding of each class. Each 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 due to differences in separate class expenses. Class B shares will convert to Class A shares approximately eight years after purchase. Class C shares will convert to Class A shares approximately ten years after purchase. Each 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
| Alabama Fund | Arkansas Fund | California Fund | ||||||||||||||||||||||
| Year Ended 3/31/19 |
Year Ended 3/31/18 (i) |
Year Ended 3/31/19 |
Year Ended 3/31/18 (i) |
Year Ended 3/31/19 |
Year Ended 3/31/18 (i) |
|||||||||||||||||||
| Class A | $1,637,250 | $1,772,980 | $4,027,144 | $4,433,561 | $9,783,893 | $9,605,732 | ||||||||||||||||||
| Class B | 6,813 | 9,435 | 70,976 | 119,869 | 44,491 | 67,932 | ||||||||||||||||||
| Class C | — | — | — | — | 552,726 | 886,006 | ||||||||||||||||||
| Class I | 289,817 | 243,364 | 479,446 | 382,264 | 2,189,523 | 1,871,451 | ||||||||||||||||||
| Class R6 | 40,806 | 7,561 | 26,745 | 5,013 | 332,634 | 31,613 | ||||||||||||||||||
| Total | $1,974,686 | $2,033,340 | $4,604,311 | $4,940,707 | $12,903,267 | $12,462,734 | ||||||||||||||||||
| Georgia Fund | Maryland Fund | Massachusetts Fund | ||||||||||||||||||||||
| Year Ended 3/31/19 |
Year Ended 3/31/18 (i) |
Year Ended 3/31/19 |
Year Ended 3/31/18 (i) |
Year Ended 3/31/19 |
Year Ended 3/31/18 (i) |
|||||||||||||||||||
| Class A | $1,999,684 | $2,014,669 | $2,502,266 | $2,690,232 | $6,793,890 | $7,600,441 | ||||||||||||||||||
| Class B | 10,107 | 19,673 | 32,351 | 40,787 | 45,375 | 63,017 | ||||||||||||||||||
| Class I | 242,008 | 301,851 | 358,415 | 279,825 | 2,004,415 | 1,242,188 | ||||||||||||||||||
| Class R6 | 215,594 | 30,368 | 43,164 | 6,022 | 87,887 | 12,415 | ||||||||||||||||||
| Total | $2,467,393 | $2,366,561 | $2,936,196 | $3,016,866 | $8,931,567 | $8,918,061 | ||||||||||||||||||
| (i) | For Class R6, the period is from the class inception, August 1, 2017, through the stated period end. |
| (3) | Transactions with Affiliates |
Investment Adviser – Each fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to each fund. The management fee is computed daily and paid monthly at an annual rate of 0.45% of each fund’s average daily net assets.
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 funds’ Board of Trustees. For the year ended March 31, 2019, these management fee reductions amounted to the following, which are included in the reduction of total expenses in the Statements of Operations:
| Alabama Fund |
Arkansas Fund |
California Fund |
Georgia Fund |
Maryland Fund |
Massachusetts Fund | |||||
| $5,923 | $15,134 | $37,596 | $7,950 | $8,587 | $25,777 | |||||
The management fee incurred for the year ended March 31, 2019 was equivalent to an annual effective rate of 0.44% of each fund’s average daily net assets.
The investment adviser has agreed in writing to pay a portion of the following funds’ total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses, such that total fund operating expenses do not exceed the following rates annually of these funds’ average daily net assets:
| Alabama Fund |
Georgia Fund |
Maryland Fund |
||||||||||
| Class A | 0.90% | 0.90% | 0.83% | |||||||||
| Class B | 1.65% | 1.65% | 1.58% | |||||||||
| Class I | 0.65% | 0.65% | 0.58% | |||||||||
| Class R6 | 0.59% | 0.60% | 0.53% | |||||||||
These written agreements will continue until modified by the fund’s Board of Trustees, but such agreements will continue at least until July 31, 2019. For the year ended March 31, 2019, these reductions amounted to $110,627 for the Alabama Fund, $84,692 for the Georgia Fund, and $151,287 for the Maryland Fund and are included in the reduction of total expenses in the Statements of Operations.
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Distributor – MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, as distributor, received the following amounts for the year ended March 31, 2019, as its portion of the initial sales charge on sales of Class A shares of each fund:
| Alabama Fund |
Arkansas Fund |
California Fund |
Georgia Fund |
Maryland Fund |
Massachusetts Fund | |||||
| $5,154 | $6,742 | $17,000 | $7,644 | $4,720 | $11,319 | |||||
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.
Each fund’s distribution plan provides that each 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.
Distribution Plan Fee Table:
| Class A | ||||||||||||||||||||
| Distribution Fee Rate (d) |
Service Fee Rate (d) |
Total Plan (d) |
Annual Effective Rate (e) |
Distribution and Service Fee |
||||||||||||||||
| Alabama Fund | — | 0.25% | 0.25% | 0.25% | $126,126 | |||||||||||||||
| Arkansas Fund | — | 0.25% | 0.25% | 0.10% | 336,065 | |||||||||||||||
| California Fund | — | 0.25% | 0.25% | 0.10% | 716,696 | |||||||||||||||
| Georgia Fund | — | 0.25% | 0.25% | 0.25% | 166,150 | |||||||||||||||
| Maryland Fund | — | 0.25% | 0.25% | 0.24% | 187,218 | |||||||||||||||
| Massachusetts Fund | — | 0.25% | 0.25% | 0.23% | 505,093 | |||||||||||||||
| Class B | ||||||||||||||||||||
| Distribution Fee Rate (d) |
Service Fee Rate (d) |
Total Plan (d) |
Annual Effective Rate (e) |
Distribution and Service Fee |
||||||||||||||||
| Alabama Fund | 0.75% | 0.25% | 1.00% | 1.00% | $2,725 | |||||||||||||||
| Arkansas Fund | 0.75% | 0.25% | 1.00% | 0.85% | 31,541 | |||||||||||||||
| California Fund | 0.75% | 0.25% | 1.00% | 0.85% | 16,644 | |||||||||||||||
| Georgia Fund | 0.75% | 0.25% | 1.00% | 1.00% | 4,436 | |||||||||||||||
| Maryland Fund | 0.75% | 0.25% | 1.00% | 1.00% | 12,495 | |||||||||||||||
| Massachusetts Fund | 0.75% | 0.25% | 1.00% | 1.00% | 17,458 | |||||||||||||||
| Class C | ||||||||||||||||||||
| Distribution Fee Rate (d) |
Service Fee Rate (d) |
Total Plan (d) |
Annual Effective Rate (e) |
Distribution and Service Fee |
||||||||||||||||
| California Fund | 0.75% | 0.25% | 1.00% | 1.00% | $219,482 | |||||||||||||||
| Alabama Fund |
Arkansas Fund |
California Fund |
Georgia Fund |
Maryland Fund |
Massachusetts Fund |
|||||||||||||||||||
| Total Distribution and Service Fees | $128,851 | $367,606 | $952,822 | $170,586 | $199,713 | $522,551 | ||||||||||||||||||
| (d) | In accordance with the distribution plan for certain classes, each 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 March 31, 2019 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 MFD retains the 0.25% service fee except for accounts attributable to MFS or its affiliates’ seed money. For the year ended March 31, 2019, these rebates amounted to the following and are included in the reduction of total expenses in the Statements of Operations: |
| Alabama Fund |
Arkansas Fund |
California Fund |
Georgia Fund |
Maryland Fund |
Massachusetts Fund |
|||||||||||||||||||
| Class A | $1,079 | $638 | $4,244 | $894 | $5,560 | $38,460 | ||||||||||||||||||
| Class B | — | — | — | 18 | — | 7 | ||||||||||||||||||
| Class C | N/A | N/A | 2 | N/A | N/A | N/A | ||||||||||||||||||
| Arkansas Fund: MFD has agreed in writing to reduce the Class A and Class B service fee rate to 0.10%. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2019. For the year ended March 31, 2019, these reductions amounted to $201,640 and $4,731 for Class A and Class B, respectively, and are included in the reduction of total expenses in the Statements of Operations. |
| California Fund: MFD has agreed in writing to reduce the Class A and Class B service fee rate to 0.10%. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2019. For the year ended March 31, 2019, these reductions amounted to $430,020 and $2,497 for Class A and Class B, respectively, and are included in the reduction of total expenses in the Statements of Operations. |
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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 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 March 31, 2019, were as follows:
| CDSC Imposed | Alabama Fund |
Arkansas Fund |
California Fund |
Georgia Fund |
Maryland Fund |
Massachusetts Fund |
||||||||||||||||||
| Class A | $100 | $1,493 | $18,760 | $3,296 | $1,091 | $1,548 | ||||||||||||||||||
| Class B | 464 | 2,227 | 5,279 | 510 | 670 | 551 | ||||||||||||||||||
| Class C | N/A | N/A | 2,054 | N/A | N/A | N/A | ||||||||||||||||||
Shareholder Servicing Agent – MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from each fund for its services as shareholder servicing agent calculated as a percentage of the average daily net assets of each fund as determined periodically under the supervision of the funds’ Board of Trustees. For the year ended March 31, 2019, each fund paid the following fee, which equated to the following annual percentage of each fund’s average daily net assets:
| Alabama Fund |
Arkansas Fund |
California Fund |
Georgia Fund |
Maryland Fund |
Massachusetts Fund |
|||||||||||||||||||
| Expenses paid | $2,896 | $5,469 | $18,981 | $3,890 | $11,032 | $19,724 | ||||||||||||||||||
| Percentage of average daily net assets | 0.0048% | 0.0036% | 0.0050% | 0.0048% | 0.0126% | 0.0075% | ||||||||||||||||||
MFSC also receives payment from each 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 March 31, 2019, these out-of-pocket expenses, sub-accounting and other shareholder servicing costs amounted to the following:
| Alabama Fund |
Arkansas Fund |
California Fund |
Georgia Fund |
Maryland Fund |
Massachusetts Fund | |||||
| $44,823 | $126,231 | $314,940 | $49,933 | $59,878 | $192,031 | |||||
Administrator – MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to each fund. Under an administrative services agreement, each fund reimburses MFS the costs incurred to provide these services. Each fund is charged an annual fixed amount of $17,500 plus a fee based on average daily net assets. The administrative services fee incurred for the year ended March 31, 2019 was equivalent to the following annual effective rates of each fund’s average daily net assets:
| Alabama Fund |
Arkansas Fund |
California Fund |
Georgia Fund |
Maryland Fund |
Massachusetts Fund |
|||||||||||||||||||
| Percentage of average daily net assets | 0.0314% | 0.0208% | 0.0167% | 0.0270% | 0.0260% | 0.0180% | ||||||||||||||||||
Trustees’ and Officers’ Compensation – Each fund pays compensation to independent Trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee chairpersons. Each fund does not pay compensation directly to Trustees or officers of each fund who are also officers of the investment adviser, all of whom receive remuneration for their services to each fund from MFS. Certain officers and Trustees of each fund are officers or directors of MFS, MFD, and MFSC.
Prior to December 31, 2001, each fund had an unfunded defined benefit plan (“DB plan”) for independent Trustees. As of December 31, 2001, the Board took action to terminate the DB plan with respect to then-current and any future independent Trustees, such that the DB plan covers only certain of those former independent Trustees who retired on or before December 31, 2001. The DB plan resulted in a pension expense for each fund. These amounts are included in “Independent Trustees’ compensation” in the Statements of Operations for the year ended March 31, 2019 and were as follows:
| Alabama Fund |
Arkansas Fund |
California Fund |
Georgia Fund |
Maryland Fund |
Massachusetts Fund | |||||
| $434 | $455 | $970 | $473 | $817 | $833 | |||||
The liability for deferred retirement benefits payable to those former independent Trustees under the DB plan amounted to the following at March 31, 2019, and is included in “Payable for independent Trustees’ compensation” in the Statements of Assets and Liabilities:
| Alabama Fund |
Arkansas Fund |
California Fund |
Georgia Fund |
Maryland Fund |
Massachusetts Fund | |||||
| $1,293 | $1,242 | $5,632 | $1,464 | $3,303 | $3,275 | |||||
Other – These funds and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole
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Notes to Financial Statements – continued
member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended March 31, 2019, the fee paid by each fund under this agreement amounted to the following and is included in “Miscellaneous” expense in the Statements of Operations:
| Alabama Fund |
Arkansas Fund |
California Fund |
Georgia Fund |
Maryland Fund |
Massachusetts Fund | |||||
| $102 | $260 | $669 | $137 | $145 | $447 | |||||
MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.
Each 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.
On July 31, 2017, MFS purchased the following fund shares as an initial investment in the class:
| Fund | Class | Shares | Amount | |||||||||
| Alabama Fund | Class R6 | 5,123 | $50,000 | |||||||||
| Arkansas Fund | Class R6 | 5,112 | 50,000 | |||||||||
| California Fund | Class R6 | 5,081 | 50,000 | |||||||||
| Georgia Fund | Class R6 | 5,092 | 50,000 | |||||||||
| Maryland Fund | Class R6 | 5,097 | 50,000 | |||||||||
| Massachusetts Fund | Class R6 | 5,118 | 50,000 | |||||||||
| (4) | Portfolio Securities |
For the year ended March 31, 2019, purchases and sales of investments, other than short-term obligations, were as follows:
| Alabama Fund |
Arkansas Fund |
California Fund |
Georgia Fund |
Maryland Fund |
Massachusetts Fund |
|||||||||||||||||||
| Purchases | $14,724,477 | $21,791,357 | $85,626,268 | $15,464,599 | $11,850,686 | $55,036,469 | ||||||||||||||||||
| Sales | $11,029,032 | $32,299,505 | $55,267,155 | $10,760,492 | $11,971,176 | $33,727,020 | ||||||||||||||||||
| (5) | Shares of Beneficial Interest |
Each 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:
| Alabama Fund | Arkansas Fund | |||||||||||||||||||||||||||||||
| Year ended 3/31/19 |
Year ended 3/31/18 (i) |
Year ended 3/31/19 |
Year ended 3/31/18 (i) |
|||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| Shares sold | ||||||||||||||||||||||||||||||||
| Class A |
804,616 | $8,024,625 | 809,769 | $8,266,064 | 1,145,081 | $11,032,471 | 1,393,307 | $13,649,486 | ||||||||||||||||||||||||
| Class B |
175 | 1,749 | 2,841 | 29,125 | 4,901 | 47,179 | 662 | 6,513 | ||||||||||||||||||||||||
| Class I |
774,532 | 7,359,941 | 360,414 | 3,491,749 | 1,681,419 | 16,282,372 | 630,344 | 6,098,825 | ||||||||||||||||||||||||
| Class R6 |
52,986 | 505,469 | 133,560 | 1,276,761 | 28,821 | 277,124 | 84,577 | 811,251 | ||||||||||||||||||||||||
| 1,632,309 | $15,891,784 | 1,306,584 | $13,063,699 | 2,860,222 | $27,639,146 | 2,108,890 | $20,566,075 | |||||||||||||||||||||||||
| Shares issued to shareholders in reinvestment of distributions |
||||||||||||||||||||||||||||||||
| Class A |
142,690 | $1,424,396 | 151,336 | $1,538,485 | 387,669 | $3,737,120 | 419,904 | $4,104,584 | ||||||||||||||||||||||||
| Class B |
568 | 5,673 | 785 | 7,988 | 7,284 | 70,267 | 11,890 | 116,380 | ||||||||||||||||||||||||
| Class I |
20,801 | 198,014 | 19,041 | 184,477 | 40,451 | 387,097 | 29,232 | 283,547 | ||||||||||||||||||||||||
| Class R6 |
4,290 | 40,806 | 791 | 7,561 | 2,795 | 26,745 | 522 | 5,013 | ||||||||||||||||||||||||
| 168,349 | $1,668,889 | 171,953 | $1,738,511 | 438,199 | $4,221,229 | 461,548 | $4,509,524 | |||||||||||||||||||||||||
| Shares reacquired | ||||||||||||||||||||||||||||||||
| Class A |
(976,415 | ) | $(9,734,286 | ) | (1,202,847 | ) | $(12,233,659 | ) | (3,779,791 | ) | $(36,577,667 | ) | (2,080,752 | ) | $(20,333,255 | ) | ||||||||||||||||
| Class B |
(6,352 | ) | (63,202 | ) | (19,552 | ) | (199,398 | ) | (195,756 | ) | (1,883,503 | ) | (180,778 | ) | (1,768,724 | ) | ||||||||||||||||
| Class I |
(329,702 | ) | (3,136,724 | ) | (266,168 | ) | (2,563,760 | ) | (423,873 | ) | (4,043,459 | ) | (336,986 | ) | (3,260,316 | ) | ||||||||||||||||
| Class R6 |
(62,247 | ) | (590,887 | ) | (927 | ) | (8,839 | ) | (13,572 | ) | (129,238 | ) | (5,148 | ) | (49,232 | ) | ||||||||||||||||
| (1,374,716 | ) | $(13,525,099 | ) | (1,489,494 | ) | $(15,005,656 | ) | (4,412,992 | ) | $(42,633,867 | ) | (2,603,664 | ) | $(25,411,527 | ) | |||||||||||||||||
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| Alabama Fund – continued | Arkansas Fund – continued | |||||||||||||||||||||||||||||||
| Year ended 3/31/19 |
Year ended 3/31/18 (i) |
Year ended 3/31/19 |
Year ended 3/31/18 (i) |
|||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| Net change | ||||||||||||||||||||||||||||||||
| Class A |
(29,109 | ) | $(285,265 | ) | (241,742 | ) | $(2,429,110 | ) | (2,247,041 | ) | $(21,808,076 | ) | (267,541 | ) | $(2,579,185 | ) | ||||||||||||||||
| Class B |
(5,609 | ) | (55,780 | ) | (15,926 | ) | (162,285 | ) | (183,571 | ) | (1,766,057 | ) | (168,226 | ) | (1,645,831 | ) | ||||||||||||||||
| Class I |
465,631 | 4,421,231 | 113,287 | 1,112,466 | 1,297,997 | 12,626,010 | 322,590 | 3,122,056 | ||||||||||||||||||||||||
| Class R6 |
(4,971 | ) | (44,612 | ) | 133,424 | 1,275,483 | 18,044 | 174,631 | 79,951 | 767,032 | ||||||||||||||||||||||
| 425,942 | $4,035,574 | (10,957 | ) | $(203,446 | ) | (1,114,571 | ) | $(10,773,492 | ) | (33,226 | ) | $(335,928 | ) | |||||||||||||||||||
| California Fund | Georgia Fund | |||||||||||||||||||||||||||||||
| Year ended 3/31/19 |
Year ended 3/31/18 (i) |
Year ended 3/31/19 |
Year ended 3/31/18 (i) |
|||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| Shares sold | ||||||||||||||||||||||||||||||||
| Class A |
11,751,370 | $69,448,845 | 8,237,637 | $49,705,465 | 1,355,979 | $14,298,908 | 1,468,090 | $15,790,486 | ||||||||||||||||||||||||
| Class B |
26,721 | 156,765 | 18,531 | 111,865 | 5,192 | 54,901 | 2,221 | 23,684 | ||||||||||||||||||||||||
| Class C |
1,020,829 | 6,069,419 | 822,298 | 4,978,525 | — | — | — | — | ||||||||||||||||||||||||
| Class I |
4,575,310 | 43,948,441 | 3,155,280 | 30,933,095 | 383,666 | 3,659,719 | 728,282 | 7,105,132 | ||||||||||||||||||||||||
| Class R6 |
1,030,911 | 9,912,259 | 630,765 | 6,092,361 | 226,976 | 2,176,866 | 630,434 | 6,053,206 | ||||||||||||||||||||||||
| 18,405,141 | $129,535,729 | 12,864,511 | $91,821,311 | 1,971,813 | $20,190,394 | 2,829,027 | $28,972,508 | |||||||||||||||||||||||||
| Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
| Class A |
1,447,536 | $8,571,006 | 1,402,632 | $8,436,925 | 174,154 | $1,837,427 | 173,576 | $1,863,233 | ||||||||||||||||||||||||
| Class B |
7,479 | 44,280 | 10,639 | 64,039 | 721 | 7,638 | 1,575 | 16,994 | ||||||||||||||||||||||||
| Class C |
80,958 | 481,001 | 130,437 | 787,456 | — | — | — | — | ||||||||||||||||||||||||
| Class I |
153,419 | 1,479,674 | 118,741 | 1,162,064 | 18,063 | 172,725 | 25,137 | 244,895 | ||||||||||||||||||||||||
| Class R6 |
34,521 | 332,634 | 3,275 | 31,613 | 22,528 | 215,594 | 3,166 | 30,368 | ||||||||||||||||||||||||
| 1,723,913 | $10,908,595 | 1,665,724 | $10,482,097 | 215,466 | $2,233,384 | 203,454 | $2,155,490 | |||||||||||||||||||||||||
| Shares reacquired | ||||||||||||||||||||||||||||||||
| Class A |
(9,481,467 | ) | $(55,947,273 | ) | (5,929,975 | ) | $(35,649,046 | ) | (1,189,748 | ) | $(12,514,426 | ) | (1,146,389 | ) | $(12,297,574 | ) | ||||||||||||||||
| Class B |
(106,830 | ) | (630,692 | ) | (156,434 | ) | (940,374 | ) | (21,842 | ) | (231,125 | ) | (53,913 | ) | (580,193 | ) | ||||||||||||||||
| Class C |
(2,676,276 | ) | (15,863,179 | ) | (1,305,709 | ) | (7,905,042 | ) | — | — | — | — | ||||||||||||||||||||
| Class I |
(2,510,569 | ) | (24,060,626 | ) | (1,800,648 | ) | (17,539,480 | ) | (306,615 | ) | (2,920,884 | ) | (812,325 | ) | (7,835,695 | ) | ||||||||||||||||
| Class R6 |
(385,179 | ) | (3,694,008 | ) | (13,494 | ) | (130,140 | ) | (115,600 | ) | (1,104,908 | ) | (10,026 | ) | (96,150 | ) | ||||||||||||||||
| (15,160,321 | ) | $(100,195,778 | ) | (9,206,260 | ) | $(62,164,082 | ) | (1,633,805 | ) | $(16,771,343 | ) | (2,022,653 | ) | $(20,809,612 | ) | |||||||||||||||||
| Net change | ||||||||||||||||||||||||||||||||
| Class A |
3,717,439 | $22,072,578 | 3,710,294 | $22,493,344 | 340,385 | $3,621,909 | 495,277 | $5,356,145 | ||||||||||||||||||||||||
| Class B |
(72,630 | ) | (429,647 | ) | (127,264 | ) | (764,470 | ) | (15,929 | ) | (168,586 | ) | (50,117 | ) | (539,515 | ) | ||||||||||||||||
| Class C |
(1,574,489 | ) | (9,312,759 | ) | (352,974 | ) | (2,139,061 | ) | — | — | — | — | ||||||||||||||||||||
| Class I |
2,218,160 | 21,367,489 | 1,473,373 | 14,555,679 | 95,114 | 911,560 | (58,906 | ) | (485,668 | ) | ||||||||||||||||||||||
| Class R6 |
680,253 | 6,550,885 | 620,546 | 5,993,834 | 133,904 | 1,287,552 | 623,574 | 5,987,424 | ||||||||||||||||||||||||
| 4,968,733 | $40,248,546 | 5,323,975 | $40,139,326 | 553,474 | $5,652,435 | 1,009,828 | $10,318,386 | |||||||||||||||||||||||||
| Maryland Fund | Massachusetts Fund | |||||||||||||||||||||||||||||||
| Year ended 3/31/19 |
Year ended 3/31/18 (i) |
Year ended 3/31/19 |
Year ended 3/31/18 (i) |
|||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| Shares sold | ||||||||||||||||||||||||||||||||
| Class A |
1,210,203 | $12,837,273 | 772,578 | $8,329,528 | 3,779,063 | $40,886,507 | 3,212,751 | $35,505,829 | ||||||||||||||||||||||||
| Class B |
15,694 | 166,296 | 14,138 | 153,439 | 10,930 | 119,307 | 12,809 | 142,691 | ||||||||||||||||||||||||
| Class I |
557,025 | 5,340,122 | 591,563 | 5,744,878 | 3,601,166 | 34,166,606 | 3,690,665 | 35,539,210 | ||||||||||||||||||||||||
| Class R6 |
47,879 | 458,594 | 100,011 | 962,936 | 175,388 | 1,665,389 | 213,149 | 2,037,209 | ||||||||||||||||||||||||
| 1,830,801 | $18,802,285 | 1,478,290 | $15,190,781 | 7,566,547 | $76,837,809 | 7,129,374 | $73,224,939 | |||||||||||||||||||||||||
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Notes to Financial Statements – continued
| Maryland Fund – continued | Massachusetts Fund – continued | |||||||||||||||||||||||||||||||
| Year ended 3/31/19 |
Year ended 3/31/18 (i) |
Year ended 3/31/19 |
Year ended 3/31/18 (i) |
|||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
| Class A |
191,420 | $2,033,205 | 203,713 | $2,201,139 | 547,516 | $5,943,231 | 596,855 | $6,606,225 | ||||||||||||||||||||||||
| Class B |
2,722 | 28,905 | 3,415 | 36,891 | 3,844 | 41,796 | 4,929 | 54,684 | ||||||||||||||||||||||||
| Class I |
26,720 | 256,056 | 23,617 | 230,054 | 178,163 | 1,692,561 | 98,808 | 955,755 | ||||||||||||||||||||||||
| Class R6 |
4,506 | 43,164 | 626 | 6,022 | 9,244 | 87,887 | 1,300 | 12,413 | ||||||||||||||||||||||||
| 225,368 | $2,361,330 | 231,371 | $2,474,106 | 738,767 | $7,765,475 | 701,892 | $7,629,077 | |||||||||||||||||||||||||
| Shares reacquired | ||||||||||||||||||||||||||||||||
| Class A |
(1,639,579 | ) | $(17,356,831 | ) | (1,223,084 | ) | $(13,203,615 | ) | (4,144,935 | ) | $(44,772,721 | ) | (3,966,535 | ) | $(43,809,322 | ) | ||||||||||||||||
| Class B |
(30,242 | ) | (321,145 | ) | (41,792 | ) | (450,918 | ) | (34,512 | ) | (375,384 | ) | (74,742 | ) | (830,470 | ) | ||||||||||||||||
| Class I |
(328,658 | ) | (3,142,092 | ) | (314,228 | ) | (3,049,210 | ) | (1,862,808 | ) | (17,614,182 | ) | (1,030,429 | ) | (9,944,303 | ) | ||||||||||||||||
| Class R6 |
(16,897 | ) | (161,435 | ) | (644 | ) | (6,184 | ) | (63,863 | ) | (604,211 | ) | (6,652 | ) | (63,614 | ) | ||||||||||||||||
| (2,015,376 | ) | $(20,981,503 | ) | (1,579,748 | ) | $(16,709,927 | ) | (6,106,118 | ) | $(63,366,498 | ) | (5,078,358 | ) | $(54,647,709 | ) | |||||||||||||||||
| Net change | ||||||||||||||||||||||||||||||||
| Class A |
(237,956 | ) | $(2,486,353 | ) | (246,793 | ) | $(2,672,948 | ) | 181,644 | $2,057,017 | (156,929 | ) | $(1,697,268 | ) | ||||||||||||||||||
| Class B |
(11,826 | ) | (125,944 | ) | (24,239 | ) | (260,588 | ) | (19,738 | ) | (214,281 | ) | (57,004 | ) | (633,095 | ) | ||||||||||||||||
| Class I |
255,087 | 2,454,086 | 300,952 | 2,925,722 | 1,916,521 | 18,244,985 | 2,759,044 | 26,550,662 | ||||||||||||||||||||||||
| Class R6 |
35,488 | 340,323 | 99,993 | 962,774 | 120,769 | 1,149,065 | 207,797 | 1,986,008 | ||||||||||||||||||||||||
| 40,793 | $182,112 | 129,913 | $954,960 | 2,199,196 | $21,236,786 | 2,752,908 | $26,206,307 | |||||||||||||||||||||||||
| (i) | For Class R6, the period is from the class inception, August 1, 2017, through the stated period end. |
Class T shares were not publicly available for sale during the period. Please see each fund’s prospectus for details.
Effective June 1, 2019, purchases of each fund’s Class B shares are closed to new and existing investors subject to certain exceptions. Please see each fund’s prospectus for details.
| (6) | Line of Credit |
Each fund and certain other funds managed by MFS participate in a $1.25 billion unsecured committed line of credit, subject to a $1 billion sublimit, 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 one month LIBOR, the Federal Funds Effective Rate and the Overnight Bank Funding Rate, 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. In addition, each 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 March 31, 2019, each fund’s commitment fee and interest expense were as follows and are included in “Miscellaneous” expense in the Statements of Operations:
| Alabama Fund |
Arkansas Fund |
California Fund |
Georgia Fund |
Maryland Fund |
Massachusetts Fund |
|||||||||||||||||||
| Commitment Fee |
$325 | $904 | $2,154 | $456 | $516 | $1,487 | ||||||||||||||||||
| Interest Expense |
— | — | — | — | — | — | ||||||||||||||||||
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Notes to Financial Statements – continued
| (7) | Investments in Affiliated Issuers |
An affiliated issuer of a fund 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, each fund assumes the MFS Institutional Money Market Portfolio to be an affiliated issuer. Each fund’s transactions in the MFS Institutional Money Market Portfolio for the year ended March 31, 2019, are as follows:
| Affiliated Issuer - MFS Institutional Money Market Portfolio |
|
|||||||||||||||||||
| Beginning Shares/Par Amount |
Acquisitions Shares/Par Amount |
Dispositions Shares/Par Amount |
Ending Shares/Par Amount |
|||||||||||||||||
| Alabama Fund |
305,813 | 19,469,127 | (19,507,769) | 267,171 | ||||||||||||||||
| Arkansas Fund |
41,886 | 34,626,899 | (31,652,185) | 3,016,600 | ||||||||||||||||
| California Fund |
1,958,965 | 96,491,816 | (86,884,635) | 11,566,146 | ||||||||||||||||
| Georgia Fund |
670,961 | 22,053,494 | (21,438,108) | 1,286,347 | ||||||||||||||||
| Maryland Fund |
2,280,061 | 20,614,681 | (21,091,453) | 1,803,289 | ||||||||||||||||
| Massachusetts Fund |
932,882 | 65,199,667 | (58,443,321) | 7,689,228 | ||||||||||||||||
| Realized Gain (Loss) |
Change in Unrealized Appreciation/ Depreciation |
Capital Gain Distributions |
Dividend Income |
Ending Value |
||||||||||||||||
| Alabama Fund |
$(66) | $(28) | $— | $17,829 | $267,171 | |||||||||||||||
| Arkansas Fund |
276 | 213 | — | 27,866 | 3,016,600 | |||||||||||||||
| California Fund |
67 | 448 | — | 154,198 | 11,566,146 | |||||||||||||||
| Georgia Fund |
(103) | 5 | — | 28,435 | 1,286,347 | |||||||||||||||
| Maryland Fund |
(136) | 92 | — | 22,076 | 1,803,289 | |||||||||||||||
| Massachusetts Fund |
128 | 176 | — | 83,764 | 7,689,228 | |||||||||||||||
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of MFS Municipal Series Trust and the Shareholders of MFS Alabama Municipal Bond Fund, MFS Arkansas Municipal Bond Fund, MFS California Municipal Bond Fund, MFS Georgia Municipal Bond Fund, MFS Maryland Municipal Bond Fund and MFS Massachusetts Municipal Bond Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of MFS Alabama Municipal Bond Fund, MFS Arkansas Municipal Bond Fund, MFS California Municipal Bond Fund, MFS Georgia Municipal Bond Fund, MFS Maryland Municipal Bond Fund and MFS Massachusetts Municipal Bond Fund (the “Funds”), including the portfolios of investments, as of March 31, 2019, the related statements 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. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2019, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights 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 Funds 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 audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their 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 Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, 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 and financial highlights. 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 and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
May 17, 2019
We have served as the auditor of one or more of the MFS investment companies since 1924.
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TRUSTEES AND OFFICERS — IDENTIFICATION AND BACKGROUND
The Trustees and Officers of the Trust, as of May 1, 2019, 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 the Past Five Years |
Other Directorships During the Past Five Years (j) | |||||
| INTERESTED TRUSTEES | ||||||||||
| Robert J. Manning (k) (age 55) |
Trustee | February 2004 | 135 | Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015); Co-Chief Executive Officer (2015-2016) |
N/A | |||||
| Robin A. Stelmach (k) (age 57) |
Trustee | January 2014 | 135 | Massachusetts Financial Services Company, Vice Chair (since January
2017); Chief Operating Officer and Executive Vice President |
N/A | |||||
| INDEPENDENT TRUSTEES | ||||||||||
| John P. Kavanaugh (age 64) |
Trustee and Chair of Trustees | January 2009 | 135 | Private investor | N/A | |||||
| Steven E. Buller (age 67) |
Trustee | February 2014 | 135 | Financial Accounting Standards Advisory Council, Chairman (2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014) | N/A | |||||
| John A. Caroselli (age 64) |
Trustee | March 2017 | 135 | JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015) |
N/A | |||||
| Maureen R. Goldfarb (age 64) |
Trustee | January 2009 | 135 | Private investor | N/A | |||||
| Michael Hegarty (age 74) |
Trustee | December 2004 | 135 | Private investor | Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015) | |||||
| Peter D. Jones (age 63) |
Trustee | January 2019 | 135 | Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015) | N/A | |||||
| James W. Kilman, Jr. (age 58) |
Trustee | January 2019 | 135 | KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking, Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016) | Alpha-En Corporation, Director (since 2016) | |||||
| Clarence Otis, Jr. (age 63) |
Trustee | March 2017 | 135 | Darden Restaurants, Inc., Chief Executive Officer (until 2014) | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015) | |||||
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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 the Past Five Years |
Other Directorships During the Past Five Years (j) | |||||
| Maryanne L. Roepke (age 63) |
Trustee | May 2014 | 135 | American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014) | N/A | |||||
| Laurie J. Thomsen (age 61) |
Trustee | March 2005 | 135 | Private investor | The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015) | |||||
| 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 45) |
Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
| Kino Clark (k) (age 50) |
Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
| John W. Clark, Jr. (k) (age 52) |
Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017) | ||||
| Thomas H. Connors (k) (age 59) |
Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
| Ethan D. Corey (k) (age 55) |
Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
| David L. DiLorenzo (k) (age 50) |
President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
| Heidi W. Hardin (k) (age 51) |
Secretary and Clerk | April 2017 | 135 | Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015) | ||||
| Brian E. Langenfeld (k) (age 46) |
Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
| Amanda S. Mooradian (k) (age 40) |
Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Counsel | ||||
| Susan A. Pereira (k) (age 48) |
Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
| Kasey L. Phillips (k) (age 48) |
Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
| Matthew A. Stowe (k) (age 44) |
Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
| Frank L. Tarantino (age 75) |
Independent Senior Officer | June 2004 | 135 | Tarantino LLC (provider of compliance services), Principal | ||||
| Martin J. Wolin (k) (age 51) |
Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015) | ||||
| James O. Yost (k) (age 58) |
Treasurer | September 1990 | 135 | 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. For the period from December 15, 2004 until February 22, 2005, Mr. Manning served as Advisory Trustee. 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”). |
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Trustees and Officers – continued
| (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. |
Each Trustee (other than Messrs. Jones and Kilman) 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. 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, Hegarty, 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.
The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling 1-800-225-2606.
| Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618 Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 Portfolio Manager(s) Michael Dawson |
Custodian JPMorgan Chase Bank, NA 4 Metrotech Center New York, NY 11245 Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
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PROXY VOTING POLICIES AND INFORMATION
MFS votes proxies on behalf of the funds 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 each 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
Each fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q or as an exhibit to its reports on Form N-PORT (for first and third fiscal quarters ending March 31, 2019 or after). Each fund’s Form N-Q or Form N-PORT reports are available on the SEC’s website at http://www.sec.gov. A shareholder can obtain the portfolio holdings report for the first and third quarters of each fund’s fiscal year at mfs.com/openendfunds by choosing the fund’s name and then selecting the “Resources” tab and clicking on “Prospectus and Reports”.
From time to time, MFS may post important information about each fund or the MFS funds on the MFS web site (mfs.com). This information is available at https://www.mfs.com/en-us/what-we-do/announcements.html or at mfs.com/openendfunds by choosing the fund’s name.
INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS
Each fund has entered into contractual arrangements with an investment adviser, administrator, distributor, shareholder servicing agent, 529 program manager (if applicable), 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 funds will notify shareholders of amounts for use in preparing 2019 income tax forms in January 2020. The following information is provided pursuant to provisions of the Internal Revenue Code.
Of the dividends paid from net investment income during the fiscal year, the following percentages were designated as exempt interest dividends for federal income tax purposes. If each fund has earned income on private activity bonds, a portion of the dividends paid may be considered a tax preference item for purposes of computing a shareholder’s alternative minimum tax.
| Exempt Interest Dividends |
||||
| Alabama Fund | 98.95% | |||
| Arkansas Fund | 96.51% | |||
| California Fund | 98.11% | |||
| Georgia Fund | 99.21% | |||
| Maryland Fund | 99.58% | |||
| Massachusetts Fund | 94.40% | |||
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rev. 3/16
|
|
WHAT DOES MFS DO WITH YOUR
|
| ||
| 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. | |
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| 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. | ||
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Annual Report
March 31, 2019
MFS® Municipal Series Trust
For the states of:
Mississippi, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia
Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the complete reports will be made available on the fund’s Web site (funds.mfs.com), and you will be notified by mail each time a report is posted and provided with a Web site link to access the report.
If you are already signed up to receive shareholder reports by email, you will not be affected by this change and you need not take any action. You may sign up to receive shareholder reports and other communications from the fund by email by contacting your financial intermediary (such as a broker-dealer or bank) or, if you hold your shares directly with the fund, by calling 1-800-225-2606 or by logging on to MFS Access at mfs.com.
Beginning on January 1, 2019, you may elect to receive all future reports in paper free of charge. Contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the fund, you can call 1-800-225-2606 or send an email request to orderliterature@mfs.com to let the fund know that you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with the MFS fund complex if you invest directly.
MSTB-ANN
Table of Contents
MFS® Municipal Series Trust
For the states of: Mississippi, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, and West Virginia
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
Table of Contents
LETTER FROM THE EXECUTIVE CHAIRMAN
The opinions expressed in this letter are subject to change and may not be relied upon for investment advice. No forecasts can be guaranteed.
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| (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. 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, which have not been rated by any rating agency. 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. |
| (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 device (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. |
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statements of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
From time to time Cash & Cash Equivalents may be negative due to timing of cash receipts.
Percentages are based on net assets as of March 31, 2019.
The portfolio is actively managed and current holdings may be different.
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Portfolio Composition – continued
| (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. 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, which have not been rated by any rating agency. 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. |
| (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. |
| (j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (1.0)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
| (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 device (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%. |
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statements of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of March 31, 2019.
The portfolio is actively managed and current holdings may be different.
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Portfolio Composition – continued
| (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. 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, which have not been rated by any rating agency. 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. |
| (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. |
| (j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (2.4)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
| (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 device (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. |
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statements of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of March 31, 2019.
The portfolio is actively managed and current holdings may be different.
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Portfolio Composition – continued
| (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. 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, which have not been rated by any rating agency. 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. |
| (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. |
| (j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (2.3)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
| (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 device (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%. |
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statements of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of March 31, 2019.
The portfolio is actively managed and current holdings may be different.
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Portfolio Composition – continued
| (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. 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, which have not been rated by any rating agency. 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. |
| (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. |
| (j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (2.4)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
| (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 device (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%. |
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statements of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of March 31, 2019.
The portfolio is actively managed and current holdings may be different.
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Portfolio Composition – continued
| (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. 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, which have not been rated by any rating agency. 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. |
| (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. |
| (j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (2.4)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
| (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 device (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. |
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statements of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
From time to time Cash & Cash Equivalents may be negative due to borrowings for leverage transactions and/or timing of cash receipts and disbursements.
Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions.
Percentages are based on net assets as of March 31, 2019.
The portfolio is actively managed and current holdings may be different.
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Portfolio Composition – continued
| (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. 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, which have not been rated by any rating agency. 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. |
| (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. |
| (j) | For the purpose of managing the fund’s duration, the fund holds short treasury futures with a bond equivalent exposure of (2.5)%, which reduce the fund’s interest rate exposure but not its credit exposure. |
| (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 device (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. |
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statements of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions and/or the leverage created through the issuance of self-deposited inverse floaters.
Percentages are based on net assets as of March 31, 2019.
The portfolio is actively managed and current holdings may be different.
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Portfolio Composition – continued
| (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. 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, which have not been rated by any rating agency. 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. |
| (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 device (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. |
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statements 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 March 31, 2019.
The portfolio is actively managed and current holdings may be different.
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Summary of Results
For the twelve months ended March 31, 2019, Class A shares, at net asset value, of the municipal bond funds of Mississippi, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia and West Virginia underperformed the Bloomberg Barclays Municipal Bond Index. The performance for the individual funds and the benchmark are set forth in the Performance Summary.
Market Environment
Led by weakness in China and Europe, the global economy decelerated during the reporting period, as business and investor sentiment was undermined by growing trade frictions. Slower growth, along with tighter financial conditions, contributed to an uptick in market volatility late in the period. Equity valuations fell, and credit spreads widened, fueled in part by interest rate concerns. In December, the US Federal Reserve (Fed) lifted rates for the fourth time in 2018 and indicated its intention to hike several more times, while allowing its balance sheet to run off at its predetermined pace.
Slowing global growth, rising trade tensions, abating inflationary pressures and increasing market volatility prompted the Fed to reverse course at the end of the period and indicate that its policy was on hold. The Fed also indicated that it would maintain a larger balance sheet than it had previously indicated. These dovish shifts helped equity valuations rebound, reduced volatility and narrowed credit spreads. Central banks globally tilted more dovish as well, with China lowering reserve requirements, The Bank of Canada and Bank of England holding rates steady and the European Central Bank acknowledging that it may not be able to hike rates in the fall of 2019, as it had earlier projected, while extending a refinancing facility for eurozone banks.
Emerging markets experienced considerable volatility during the period as tighter global financial conditions exposed structural weakness in some countries. Those pressures were somewhat relieved at the end of the period as the Fed adopted its more dovish posture and hopes grew for a trade deal between the US and China.
From a geopolitical perspective, the lack of consensus in the United Kingdom on the best path toward a rapidly approaching Brexit, a fractious Eurosceptic Italian coalition government, large-scale protests in France over stagnant wages and news that Germany’s Angela Merkel will not seek another term as chancellor were sources of uncertainty in Europe. In emerging markets, new Brazilian president Jair Bolsonaro took office, with markets generally encouraged by his market-friendly agenda. In contrast, markets were nervous about the less market-friendly approach of Mexico’s new president Andrés Manuel López Obrador. For much of the period, the contentious US-China trade relationship was a drag on global sentiment. Signs of progress toward a resolution helped steady markets late in the period while China’s economy showed tentative signs of stabilizing.
Over the reporting period, municipal bonds provided solid positive returns with the lower-quality and longer-duration segments performing especially well. Reduced primary market supply generally supported municipal bonds during the period, as supply was impacted in 2018, consequent of issuances pulled forward into 2017 before, and in anticipation of, proposed tax law changes. Further limiting issuance in calendar year 2018 and into 2019, were tax law changes which eliminated pre-refundings, where the proceeds had been used to advance refund previously-issued debt. Also of note, Puerto Rican bonds recovered strongly, boosted by ongoing progress in restructuring negotiations.
Fundamentals in municipals were generally stable for the period, due to stable to improving tax revenue.
Factors Affecting Performance
Across all funds, security selection within “AA” rated (r) securities hindered performance relative to the Bloomberg Barclays Municipal Bond Index. Additionally, bond selection in the education sector weakened relative returns within the municipal bond funds of New York, North Carolina, Pennsylvania, Virginia and West Virginia. Lastly, security selection within the health care sector dampened relative performance in all funds, with the exception of the municipal bond funds of Mississippi and Virginia, where it positively impacted relative returns.
In contrast, an out-of-benchmark exposure to Puerto Rican bonds, across all funds, benefited relative performance.
Respectfully,
Portfolio Manager(s)
Michael Dawson
| (r) | Bonds rated “BBB”, “Baa”, or higher are considered investment grade; bonds rated “BB”, “Ba”, or below are considered non-investment grade. The sources for bond quality ratings are Moody’s Investors Service, Standard & Poor’s and Fitch, Inc. and are applied using 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. Ratings are shown in the S&P and Fitch scale (e.g., AAA). For securities which are not rated by any of the three agencies, the security is considered Not Rated. |
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Management Review – continued
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.
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PERFORMANCE SUMMARY THROUGH 3/31/19
The following charts illustrate a representative class of each 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. Each fund’s results have been compared to the Barclays Municipal Bond Index, a market capitalization-weighted index that measures the performance of the tax-exempt bond market. However, while this index is considered the benchmark for the performance of municipal bond funds, it is comprised of municipal bonds issued within the 50 states and the District of Columbia as well as U.S. territories and possessions such as Guam, Puerto Rico, and the Virgin Islands, while each of the funds invests a large percentage of its assets in municipal issuers of the state that is in the fund’s name. 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.
MFS Mississippi Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/19
Average annual without sales charge
| Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
| A | 8/06/92 | 4.47% | 3.33% | 4.15% | N/A | |||||||||
| B | 9/07/93 | 3.79% | 2.65% | 3.43% | N/A | |||||||||
| I | 4/01/16 | 4.67% | N/A | N/A | 2.11% | |||||||||
| R6 | 8/01/17 | 4.74% | N/A | N/A | 2.60% | |||||||||
| Comparative benchmark(s) | ||||||||||||||
| Bloomberg Barclays Municipal Bond Index (f) | 5.38% | 3.73% | 4.72% | N/A | ||||||||||
| Average annual with sales charge | ||||||||||||||
| A With Initial Sales Charge (4.25%) |
0.03% | 2.44% | 3.70% | N/A | ||||||||||
| B With CDSC (Declining over six years from 4% to 0%) (v) |
(0.21)% | 2.29% | 3.43% | N/A | ||||||||||
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
| (v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS New York Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/19
Average annual without sales charge
| Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
| A | 6/06/88 | 4.82% | 4.04% | 4.54% | N/A | |||||||||
| B | 9/07/93 | 4.05% | 3.27% | 3.77% | N/A | |||||||||
| C | 12/11/00 | 3.95% | 3.27% | 3.75% | N/A | |||||||||
| I | 4/01/16 | 5.13% | N/A | N/A | 2.88% | |||||||||
| R6 | 8/01/17 | 5.19% | N/A | N/A | 3.15% | |||||||||
| Comparative benchmark(s) | ||||||||||||||
| Bloomberg Barclays Municipal Bond Index (f) | 5.38% | 3.73% | 4.72% | N/A | ||||||||||
| Average annual with sales charge | ||||||||||||||
| A With Initial Sales Charge (4.25%) |
0.37% | 3.14% | 4.09% | N/A | ||||||||||
| B With CDSC (Declining over six years from 4% to 0%) (v) |
0.05% | 2.92% | 3.77% | N/A | ||||||||||
| C With CDSC (1% for 12 months) (v) |
2.95% | 3.27% | 3.75% | N/A | ||||||||||
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
| (v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS North Carolina Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/19
Average annual without sales charge
| Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
| A | 10/31/84 | 4.23% | 3.37% | 4.08% | N/A | |||||||||
| B | 9/07/93 | 3.46% | 2.60% | 3.30% | N/A | |||||||||
| C | 1/03/94 | 3.45% | 2.59% | 3.30% | N/A | |||||||||
| I | 4/01/16 | 4.46% | N/A | N/A | 2.40% | |||||||||
| R6 | 8/01/17 | 4.54% | N/A | N/A | 2.79% | |||||||||
| Comparative benchmark(s) | ||||||||||||||
| Bloomberg Barclays Municipal Bond Index (f) | 5.38% | 3.73% | 4.72% | N/A | ||||||||||
| Average annual with sales charge | ||||||||||||||
| A With Initial Sales Charge (4.25%) |
(0.20)% | 2.47% | 3.63% | N/A | ||||||||||
| B With CDSC (Declining over six years from 4% to 0%) (v) |
(0.54)% | 2.23% | 3.30% | N/A | ||||||||||
| C With CDSC (1% for 12 months) (v) |
2.45% | 2.59% | 3.30% | N/A | ||||||||||
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
| (v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS Pennsylvania Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/19
Average annual without sales charge
| Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
| A | 2/01/93 | 4.73% | 4.14% | 4.73% | N/A | |||||||||
| B | 9/07/93 | 3.95% | 3.35% | 3.93% | N/A | |||||||||
| I | 4/01/16 | 4.88% | N/A | N/A | 2.98% | |||||||||
| R6 | 8/01/17 | 4.94% | N/A | N/A | 3.42% | |||||||||
| Comparative benchmark(s) | ||||||||||||||
| Bloomberg Barclays Municipal Bond Index (f) | 5.38% | 3.73% | 4.72% | N/A | ||||||||||
| Average annual with sales charge | ||||||||||||||
| A With Initial Sales Charge (4.25%) |
0.28% | 3.24% | 4.28% | N/A | ||||||||||
| B With CDSC (Declining over six years from 4% to 0%) (v) |
(0.05)% | 3.00% | 3.93% | N/A | ||||||||||
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
| (v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS South Carolina Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/19
Average annual without sales charge
| Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
| A | 10/31/84 | 4.39% | 3.41% | 4.03% | N/A | |||||||||
| B | 9/07/93 | 3.70% | 2.66% | 3.26% | N/A | |||||||||
| I | 4/01/16 | 4.71% | N/A | N/A | 2.35% | |||||||||
| R6 | 8/01/17 | 4.77% | N/A | N/A | 2.89% | |||||||||
| Comparative benchmark(s) | ||||||||||||||
| Bloomberg Barclays Municipal Bond Index (f) | 5.38% | 3.73% | 4.72% | N/A | ||||||||||
| Average annual with sales charge | ||||||||||||||
| A With Initial Sales Charge (4.25%) |
(0.05)% | 2.52% | 3.58% | N/A | ||||||||||
| B With CDSC (Declining over six years from 4% to 0%) (v) |
(0.30)% | 2.30% | 3.26% | N/A | ||||||||||
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
| (v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS Tennessee Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/19
Average annual without sales charge
| Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
| A | 8/12/88 | 4.52% | 3.32% | 4.06% | N/A | |||||||||
| B | 9/07/93 | 3.75% | 2.56% | 3.28% | N/A | |||||||||
| I | 4/01/16 | 4.75% | N/A | N/A | 2.36% | |||||||||
| R6 | 8/01/17 | 4.84% | N/A | N/A | 2.76% | |||||||||
| Comparative benchmark(s) | ||||||||||||||
| Bloomberg Barclays Municipal Bond Index (f) | 5.38% | 3.73% | 4.72% | N/A | ||||||||||
| Average annual with sales charge | ||||||||||||||
| A With Initial Sales Charge (4.25%) |
0.08% | 2.43% | 3.60% | N/A | ||||||||||
| B With CDSC (Declining over six years from 4% to 0%) (v) |
(0.25)% | 2.19% | 3.28% | N/A | ||||||||||
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
| (v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS Virginia Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/19
Average annual without sales charge
| Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
| A | 10/31/84 | 4.67% | 3.50% | 4.21% | N/A | |||||||||
| B | 9/07/93 | 3.80% | 2.71% | 3.43% | N/A | |||||||||
| C | 1/03/94 | 3.89% | 2.72% | 3.43% | N/A | |||||||||
| I | 4/01/16 | 4.82% | N/A | N/A | 2.47% | |||||||||
| R6 | 8/01/17 | 5.01% | N/A | N/A | 3.01% | |||||||||
| Comparative benchmark(s) | ||||||||||||||
| Bloomberg Barclays Municipal Bond Index (f) | 5.38% | 3.73% | 4.72% | N/A | ||||||||||
| Average annual with sales charge | ||||||||||||||
| A With Initial Sales Charge (4.25%) |
0.22% | 2.60% | 3.76% | N/A | ||||||||||
| B With CDSC (Declining over six years from 4% to 0%) (v) |
(0.20)% | 2.34% | 3.43% | N/A | ||||||||||
| C With CDSC (1% for 12 months) (v) |
2.89% | 2.72% | 3.43% | N/A | ||||||||||
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
| (v) | Assuming redemption at the end of the applicable period. |
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Performance Summary – continued
MFS West Virginia Municipal Bond Fund
Growth of a hypothetical $10,000 investment
Total returns through 3/31/19
Average annual without sales charge
| Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
| A | 10/31/84 | 4.09% | 3.31% | 4.05% | N/A | |||||||||
| B | 9/07/93 | 3.40% | 2.53% | 3.27% | N/A | |||||||||
| I | 4/01/16 | 4.44% | N/A | N/A | 2.37% | |||||||||
| R6 | 8/01/17 | 4.42% | N/A | N/A | 2.74% | |||||||||
| Comparative benchmark(s) | ||||||||||||||
| Bloomberg Barclays Municipal Bond Index (f) | 5.38% | 3.73% | 4.72% | N/A | ||||||||||
| Average annual with sales charge | ||||||||||||||
| A With Initial Sales Charge (4.25%) |
(0.34)% | 2.41% | 3.60% | N/A | ||||||||||
| B With CDSC (Declining over six years from 4% to 0%) (v) |
(0.60)% | 2.17% | 3.27% | N/A | ||||||||||
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
| (v) | Assuming redemption at the end of the applicable period. |
Benchmark Definition(s)
Bloomberg Barclays Municipal Bond Index – a market capitalization-weighted index that measures the performance of the tax-exempt bond market.
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. Life returns are presented where the share class has less than 10 years of performance history and represent the average annual total return from the class inception date to the stated period end date. As the fund’s share classes may have different inception dates, the life returns may represent different time periods and may not be comparable. As a result, no comparative benchmark performance information is provided for life periods.
Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers each fund’s performance results would be less favorable. Please see the prospectus and financial statements for complete details.
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Performance Summary – continued
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.
A portion of income may be subject to state, federal, and/or alternative minimum tax. Capital gains, if any, are subject to a capital gains tax.
From time to time the funds may receive proceeds from litigation settlements, without which performance would be lower.
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Fund expenses borne by the shareholders during the period, October 1, 2018 through March 31, 2019
As a shareholder of the funds, 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. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the funds and to compare these costs with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period October 1, 2018 through March 31, 2019.
Actual Expenses
The first line for each share class in the following tables 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 tables provides information about hypothetical account values and hypothetical expenses based on each fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each 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 each 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 tables 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 tables 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.
MFS MISSISSIPPI MUNICIPAL BOND FUND
|
Share Class |
Annualized Expense Ratio |
Beginning Account Value 10/01/18 |
Ending Account Value |
Expenses Paid During 10/01/18-3/31/19 |
||||||||||||||
| A | Actual |
0.85% | $1,000.00 | $1,036.82 | $4.32 | |||||||||||||
| Hypothetical (h) |
0.85% | $1,000.00 | $1,020.69 | $4.28 | ||||||||||||||
| B | Actual |
1.50% | $1,000.00 | $1,032.36 | $7.60 | |||||||||||||
| Hypothetical (h) |
1.50% | $1,000.00 | $1,017.45 | $7.54 | ||||||||||||||
| I | Actual |
0.75% | $1,000.00 | $1,037.33 | $3.81 | |||||||||||||
| Hypothetical (h) |
0.75% | $1,000.00 | $1,021.19 | $3.78 | ||||||||||||||
| R6 | Actual |
0.68% | $1,000.00 | $1,037.60 | $3.45 | |||||||||||||
| Hypothetical (h) |
0.68% | $1,000.00 | $1,021.54 | $3.43 | ||||||||||||||
| (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 182/365 (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. |
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Expense Tables – continued
MFS NEW YORK MUNICIPAL BOND FUND
| Share Class |
Annualized Expense Ratio |
Beginning Account Value 10/01/18 |
Ending Account Value |
Expenses Paid During 10/01/18-3/31/19 |
||||||||||||||
| A | Actual | 0.88% | $1,000.00 | $1,039.39 | $4.47 | |||||||||||||
| Hypothetical (h) | 0.88% | $1,000.00 | $1,020.54 | $4.43 | ||||||||||||||
| B | Actual | 1.63% | $1,000.00 | $1,035.60 | $8.27 | |||||||||||||
| Hypothetical (h) | 1.63% | $1,000.00 | $1,016.80 | $8.20 | ||||||||||||||
| C | Actual | 1.63% | $1,000.00 | $1,035.55 | $8.27 | |||||||||||||
| Hypothetical (h) | 1.63% | $1,000.00 | $1,016.80 | $8.20 | ||||||||||||||
| I | Actual | 0.63% | $1,000.00 | $1,041.36 | $3.21 | |||||||||||||
| Hypothetical (h) | 0.63% | $1,000.00 | $1,021.79 | $3.18 | ||||||||||||||
| R6 | Actual | 0.57% | $1,000.00 | $1,041.66 | $2.90 | |||||||||||||
| Hypothetical (h) | 0.57% | $1,000.00 | $1,022.09 | $2.87 | ||||||||||||||
MFS NORTH CAROLINA MUNICIPAL BOND FUND
| Share Class |
Annualized Expense Ratio |
Beginning Account Value 10/01/18 |
Ending Account Value 3/31/19 |
Expenses Paid During Period (p) 10/01/18-3/31/19 |
||||||||||||||
| A | Actual | 0.85% | $1,000.00 | $1,036.37 | $4.32 | |||||||||||||
| Hypothetical (h) | 0.85% | $1,000.00 | $1,020.69 | $4.28 | ||||||||||||||
| B | Actual | 1.61% | $1,000.00 | $1,031.64 | $8.15 | |||||||||||||
| Hypothetical (h) | 1.61% | $1,000.00 | $1,016.90 | $8.10 | ||||||||||||||
| C | Actual | 1.61% | $1,000.00 | $1,031.61 | $8.15 | |||||||||||||
| Hypothetical (h) | 1.61% | $1,000.00 | $1,016.90 | $8.10 | ||||||||||||||
| I | Actual | 0.61% | $1,000.00 | $1,037.42 | $3.10 | |||||||||||||
| Hypothetical (h) | 0.61% | $1,000.00 | $1,021.89 | $3.07 | ||||||||||||||
| R6 | Actual | 0.53% | $1,000.00 | $1,037.82 | $2.69 | |||||||||||||
| Hypothetical (h) | 0.53% | $1,000.00 | $1,022.29 | $2.67 | ||||||||||||||
| (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 182/365 (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
For the MFS New York Municipal Bond Fund, each class with a Rule 12b-1 service fee is subject to a rebate of a portion of such fee. Such rebates are included in the expense ratios above and are outside of the expense limitation arrangement. For Class A shares, this rebate reduced the expense ratio above by 0.01%. See Note 3 in the Notes to Financial Statements for additional information.
For the MFS North Carolina Municipal Bond Fund, each class with a Rule 12b-1 service fee is subject to a rebate of a portion of such fee. Such rebates are included in the expense ratios above and are outside of the expense limitation arrangement. For Class A shares, this rebate reduced the expense ratio above by 0.01%. See Note 3 in the Notes to Financial Statements for additional information.
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Expense Tables – continued
MFS PENNSYLVANIA MUNICIPAL BOND FUND
| Share Class |
Annualized Expense Ratio |
Beginning Account Value 10/01/18 |
Ending Account Value 3/31/19 |
Expenses Paid During Period (p) 10/01/18-3/31/19 |
||||||||||||||
| A | Actual | 0.81% | $1,000.00 | $1,036.77 | $4.11 | |||||||||||||
| Hypothetical (h) | 0.81% | $1,000.00 | $1,020.89 | $4.08 | ||||||||||||||
| B | Actual | 1.56% | $1,000.00 | $1,033.90 | $7.91 | |||||||||||||
| Hypothetical (h) | 1.56% | $1,000.00 | $1,017.15 | $7.85 | ||||||||||||||
| I | Actual | 0.71% | $1,000.00 | $1,038.20 | $3.61 | |||||||||||||
| Hypothetical (h) | 0.71% | $1,000.00 | $1,021.39 | $3.58 | ||||||||||||||
| R6 | Actual | 0.64% | $1,000.00 | $1,038.57 | $3.25 | |||||||||||||
| Hypothetical (h) | 0.64% | $1,000.00 | $1,021.74 | $3.23 | ||||||||||||||
MFS SOUTH CAROLINA MUNICIPAL BOND FUND
| Share Class |
Annualized Expense Ratio |
Beginning Account Value 10/01/18 |
Ending 3/31/19 |
Expenses Paid During Period (p) 10/01/18-3/31/19 |
||||||||||||||
| A | Actual | 0.84% | $1,000.00 | $1,036.53 | $4.26 | |||||||||||||
| Hypothetical (h) | 0.84% | $1,000.00 | $1,020.74 | $4.23 | ||||||||||||||
| B | Actual | 1.59% | $1,000.00 | $1,032.68 | $8.06 | |||||||||||||
| Hypothetical (h) | 1.59% | $1,000.00 | $1,017.00 | $8.00 | ||||||||||||||
| I | Actual | 0.59% | $1,000.00 | $1,037.27 | $3.00 | |||||||||||||
| Hypothetical (h) | 0.59% | $1,000.00 | $1,021.99 | $2.97 | ||||||||||||||
| R6 | Actual | 0.53% | $1,000.00 | $1,037.55 | $2.69 | |||||||||||||
| Hypothetical (h) | 0.53% | $1,000.00 | $1,022.29 | $2.67 | ||||||||||||||
MFS TENNESSEE MUNICIPAL BOND FUND
| Share Class |
Annualized Expense Ratio |
Beginning Account Value 10/01/18 |
Ending Account Value 3/31/19 |
Expenses 10/01/18-3/31/19 |
||||||||||||||
| A | Actual | 0.88% | $1,000.00 | $1,035.33 | $4.47 | |||||||||||||
| Hypothetical (h) | 0.88% | $1,000.00 | $1,020.54 | $4.43 | ||||||||||||||
| B | Actual | 1.63% | $1,000.00 | $1,031.52 | $8.26 | |||||||||||||
| Hypothetical (h) | 1.63% | $1,000.00 | $1,016.80 | $8.20 | ||||||||||||||
| I | Actual | 0.63% | $1,000.00 | $1,035.76 | $3.20 | |||||||||||||
| Hypothetical (h) | 0.63% | $1,000.00 | $1,021.79 | $3.18 | ||||||||||||||
| R6 | Actual | 0.56% | $1,000.00 | $1,036.09 | $2.84 | |||||||||||||
| Hypothetical (h) | 0.56% | $1,000.00 | $1,022.14 | $2.82 | ||||||||||||||
| (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 182/365 (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. |
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Expense Tables – continued
MFS VIRGINIA MUNICIPAL BOND FUND
| Share Class |
Annualized Ratio |
Beginning Account Value 10/01/18 |
Ending Account Value |
Expenses Paid During Period (p) 10/01/18-3/31/19 |
||||||||||||||
| A | Actual | 0.84% | $1,000.00 | $1,037.94 | $4.27 | |||||||||||||
| Hypothetical (h) | 0.84% | $1,000.00 | $1,020.74 | $4.23 | ||||||||||||||
| B | Actual | 1.60% | $1,000.00 | $1,034.09 | $8.11 | |||||||||||||
| Hypothetical (h) | 1.60% | $1,000.00 | $1,016.95 | $8.05 | ||||||||||||||
| C | Actual | 1.60% | $1,000.00 | $1,034.07 | $8.11 | |||||||||||||
| Hypothetical (h) | 1.60% | $1,000.00 | $1,016.95 | $8.05 | ||||||||||||||
| I | Actual | 0.60% | $1,000.00 | $1,038.23 | $3.05 | |||||||||||||
| Hypothetical (h) | 0.60% | $1,000.00 | $1,021.94 | $3.02 | ||||||||||||||
| R6 | Actual | 0.52% | $1,000.00 | $1,039.71 | $2.64 | |||||||||||||
| Hypothetical (h) | 0.52% | $1,000.00 | $1,022.34 | $2.62 | ||||||||||||||
MFS WEST VIRGINIA MUNICIPAL BOND FUND
|
Share Class |
Annualized Ratio |
Beginning Account Value 10/01/18 |
Ending Account Value |
Expenses Paid During 10/01/18-3/31/19 |
||||||||||||||
| A | Actual | 0.86% | $1,000.00 | $1,035.01 | $4.36 | |||||||||||||
| Hypothetical (h) | 0.86% | $1,000.00 | $1,020.64 | $4.33 | ||||||||||||||
| B | Actual | 1.62% | $1,000.00 | $1,031.11 | $8.20 | |||||||||||||
| Hypothetical (h) | 1.62% | $1,000.00 | $1,016.85 | $8.15 | ||||||||||||||
| I | Actual | 0.62% | $1,000.00 | $1,036.63 | $3.15 | |||||||||||||
| Hypothetical (h) | 0.62% | $1,000.00 | $1,021.84 | $3.13 | ||||||||||||||
| R6 | Actual | 0.54% | $1,000.00 | $1,035.91 | $2.74 | |||||||||||||
| Hypothetical (h) | 0.54% | $1,000.00 | $1,022.24 | $2.72 | ||||||||||||||
| (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 182/365 (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
For the MFS Virginia Municipal Bond Fund, expense ratios include 0.04% of investment related expenses from self-deposited inverse floaters (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).
For the MFS West Virginia Municipal Bond Fund, each class with a Rule 12b-1 service fee is subject to a rebate of a portion of such fee. Such rebates are included in the expense ratios above and are outside of the expense limitation arrangement. For Class A shares, this rebate reduced the expense ratio above by 0.01%. See Note 3 in the Notes to Financial Statements for additional information.
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3/31/19
MFS MISSISSIPPI MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
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Portfolio of Investments – continued
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Portfolio of Investments – continued
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Portfolio of Investments – continued
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Portfolio of Investments – continued
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PORTFOLIO OF INVESTMENTS
3/31/19
MFS NEW YORK MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
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Derivative Contracts at 3/31/19
Futures Contracts
| Description | Long/ Short |
Currency | Contracts | Notional Amount |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
||||||||||||||||
| Liability Derivatives | ||||||||||||||||||||||
| Interest Rate Futures | ||||||||||||||||||||||
| U.S. Treasury Bond 30 yr | Short | USD | 16 | $2,394,500 | June - 2019 | $(60,059 | ) | |||||||||||||||
|
|
|
|||||||||||||||||||||
At March 31, 2019, the fund had cash collateral of $40,800 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statements of Assets and Liabilities are comprised of cash collateral.
See Portfolio Footnotes and Notes to Financial Statements
36
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PORTFOLIO OF INVESTMENTS
3/31/19
MFS NORTH CAROLINA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
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Derivative Contracts at 3/31/19
Futures Contracts
| Description | Long/ Short |
Currency | Contracts | Notional Amount |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
||||||||||||||||
| Liability Derivatives | ||||||||||||||||||||||
| Interest Rate Futures | ||||||||||||||||||||||
| U.S. Treasury Bond 30 yr | Short | USD | 67 | $10,026,969 | June - 2019 | $(251,497 | ) | |||||||||||||||
|
|
|
|||||||||||||||||||||
At March 31, 2019, the fund had cash collateral of $170,850 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statements of Assets and Liabilities are comprised of cash collateral.
See Portfolio Footnotes and Notes to Financial Statements
44
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PORTFOLIO OF INVESTMENTS
3/31/19
MFS PENNSYLVANIA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
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Derivative Contracts at 3/31/19
Futures Contracts
| Description | Long/ Short |
Currency | Contracts | Notional Amount |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
||||||||||||||||
| Liability Derivatives | ||||||||||||||||||||||
| Interest Rate Futures | ||||||||||||||||||||||
| U.S. Treasury Bond 30 yr | Short | USD | 21 | $3,142,781 | June - 2019 | $(78,827 | ) | |||||||||||||||
|
|
|
|||||||||||||||||||||
At March 31, 2019, the fund had cash collateral of $53,550 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statements of Assets and Liabilities are comprised of cash collateral.
See Portfolio Footnotes and Notes to Financial Statements
52
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PORTFOLIO OF INVESTMENTS
3/31/19
MFS SOUTH CAROLINA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
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Derivative Contracts at 3/31/19
Futures Contracts
| Description | Long/ Short |
Currency | Contracts | Notional Amount |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
||||||||||||||||
| Liability Derivatives | ||||||||||||||||||||||
| Interest Rate Futures | ||||||||||||||||||||||
| U.S. Treasury Bond 30 yr | Short | USD | 31 | $4,639,344 | June - 2019 | $(116,364 | ) | |||||||||||||||
|
|
|
|||||||||||||||||||||
At March 31, 2019, the fund had cash collateral of $79,050 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statements of Assets and Liabilities are comprised of cash collateral.
See Portfolio Footnotes and Notes to Financial Statements
59
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PORTFOLIO OF INVESTMENTS
3/31/19
MFS TENNESSEE MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
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Derivative Contracts at 3/31/19
Futures Contracts
| Description | Long/ Short |
Currency | Contracts | Notional Amount |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
||||||||||||||||
| Liability Derivatives | ||||||||||||||||||||||
| Interest Rate Futures | ||||||||||||||||||||||
| U.S. Treasury Bond 30 yr | Short | USD | 16 | $2,394,500 | June - 2019 | $(60,059 | ) | |||||||||||||||
|
|
|
|||||||||||||||||||||
At March 31, 2019, the fund had cash collateral of $40,800 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statements of Assets and Liabilities are comprised of cash collateral.
See Portfolio Footnotes and Notes to Financial Statements
64
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PORTFOLIO OF INVESTMENTS
3/31/19
MFS VIRGINIA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
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Derivative Contracts at 3/31/19
Futures Contracts
| Description | Long/ Short |
Currency | Contracts | Notional Amount |
Expiration Date |
Value/Unrealized Appreciation (Depreciation) |
||||||||||||||||
| Liability Derivatives | ||||||||||||||||||||||
| Interest Rate Futures | ||||||||||||||||||||||
| U.S. Treasury Bond 30 yr | Short | USD | 52 | $7,782,125 | June - 2019 | $(195,191 | ) | |||||||||||||||
|
|
|
|||||||||||||||||||||
At March 31, 2019, the fund had cash collateral of $132,600 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statements of Assets and Liabilities are comprised of cash collateral.
See Portfolio Footnotes and Notes to Financial Statements
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PORTFOLIO OF INVESTMENTS
3/31/19
MFS WEST VIRGINIA MUNICIPAL BOND FUND
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
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Portfolio Footnotes:
| (d) | In default. |
| (h) | An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of each fund’s investments in affiliated issuers and in unaffiliated issuers were as follows: |
| Affiliated Issuers | Unaffiliated Issuers | |||||||
| Mississippi Fund | $ | 697,666 | $ | 88,842,144 | ||||
| New York Fund | 2,766,824 | 239,296,474 | ||||||
| North Carolina Fund | 8,877,352 | 394,797,205 | ||||||
| Pennsylvania Fund | 2,730,549 | 136,792,448 | ||||||
| South Carolina Fund | 5,275,936 | 184,089,251 | ||||||
| Tennessee Fund | 940,434 | 96,900,630 | ||||||
| Virginia Fund | 4,084,274 | 308,358,798 | ||||||
| West Virginia Fund | 518,129 | 103,716,526 | ||||||
| (u) | Underlying security deposited into special purpose trust upon creation of self-deposited inverse floaters. |
| (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:
| AAC | Ambac Assurance Corp. | |
| AGM | Assured Guaranty Municipal | |
| ASSD GTY | Assured Guaranty Insurance Co. | |
| BAM | Build America Mutual | |
| COP | Certificate of Participation | |
| ETM | Escrowed to Maturity | |
| FGIC | Financial Guaranty Insurance Co. | |
| FHA | Federal Housing Administration | |
| 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. | |
| FNMA | Federal National Mortgage Assn. | |
| GNMA | Government National Mortgage Assn. | |
| LIBOR | London Interbank Offered Rate | |
| NATL | National Public Finance Guarantee Corp. |
See Notes to Financial Statements
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Financial Statements
STATEMENTS OF ASSETS AND LIABILITIES
At 3/31/19
These statements represent each fund’s balance sheet, which details the assets and liabilities comprising the total value of each fund.
| Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
|||||||||||||
| Assets | ||||||||||||||||
| Investments in unaffiliated issuers, at value (identified cost, $85,228,945, $230,969,733, $382,108,060, and $131,388,755, respectively) |
$88,842,144 | $239,296,474 | $394,797,205 | $136,792,448 | ||||||||||||
| Investments in affiliated issuers, at value (identified cost, $697,596, $2,766,558, $8,876,694, and $2,730,334, respectively) |
697,666 | 2,766,824 | 8,877,352 | 2,730,549 | ||||||||||||
| Deposits with brokers for futures contracts |
— | 40,800 | 170,850 | 53,550 | ||||||||||||
| Receivables for |
||||||||||||||||
| Net daily variation margin on open futures contracts |
— | 6,000 | 25,130 | 7,876 | ||||||||||||
| Investments sold |
— | — | 2,766,750 | 1,368,746 | ||||||||||||
| Fund shares sold |
73,115 | 1,673,613 | 691,125 | 412,914 | ||||||||||||
| Interest |
1,052,943 | 2,872,930 | 5,921,395 | 1,750,595 | ||||||||||||
| Other assets |
520 | 974 | 1,544 | 672 | ||||||||||||
| Total assets |
$90,666,388 | $246,657,615 | $413,251,351 | $143,117,350 | ||||||||||||
| Liabilities | ||||||||||||||||
| Payable to custodian |
$— | $— | $— | $1,241 | ||||||||||||
| Payables for |
||||||||||||||||
| Distributions |
22,404 | 96,303 | 91,597 | 59,603 | ||||||||||||
| Investments purchased |
1,070,515 | — | 2,000,000 | 3,659,960 | ||||||||||||
| Fund shares reacquired |
76,944 | 1,423,830 | 448,960 | 123,092 | ||||||||||||
| Payable to affiliates |
||||||||||||||||
| Investment adviser |
4,555 | 12,286 | 20,502 | 7,023 | ||||||||||||
| Shareholder servicing costs |
35,322 | 82,915 | 182,438 | 51,984 | ||||||||||||
| Distribution and service fees |
683 | 5,095 | 9,110 | 1,308 | ||||||||||||
| Payable for independent Trustees’ compensation |
1,153 | 1,466 | 3,274 | 1,137 | ||||||||||||
| Accrued expenses and other liabilities |
66,789 | 74,815 | 79,928 | 73,001 | ||||||||||||
| Total liabilities |
$1,278,365 | $1,696,710 | $2,835,809 | $3,978,349 | ||||||||||||
| Net assets |
$89,388,023 | $244,960,905 | $410,415,542 | $139,139,001 | ||||||||||||
| Net assets consist of | ||||||||||||||||
| Paid-in capital |
$88,205,011 | $237,692,657 | $405,973,943 | $135,602,021 | ||||||||||||
| Total distributable earnings (loss) |
1,183,012 | 7,268,248 | 4,441,599 | 3,536,980 | ||||||||||||
| Net assets |
$89,388,023 | $244,960,905 | $410,415,542 | $139,139,001 | ||||||||||||
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Statements of Assets and Liabilities – continued
| Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
|||||||||||||
| Net assets |
||||||||||||||||
| Class A |
$79,190,173 | $154,802,571 | $295,515,152 | $105,776,977 | ||||||||||||
| Class B |
658,549 | 2,876,322 | 1,298,945 | 2,372,979 | ||||||||||||
| Class C |
— | 16,952,603 | 38,638,532 | — | ||||||||||||
| Class I |
8,672,381 | 68,415,223 | 58,802,280 | 20,252,607 | ||||||||||||
| Class R6 |
866,920 | 1,914,186 | 16,160,633 | 10,736,438 | ||||||||||||
| Total net assets |
$89,388,023 | $244,960,905 | $410,415,542 | $139,139,001 | ||||||||||||
| Shares of beneficial interest outstanding |
||||||||||||||||
| Class A |
8,213,741 | 14,075,579 | 25,502,377 | 10,307,661 | ||||||||||||
| Class B |
68,216 | 262,197 | 112,232 | 230,658 | ||||||||||||
| Class C |
— | 1,543,292 | 3,336,273 | — | ||||||||||||
| Class I |
900,932 | 7,033,269 | 6,087,412 | 2,071,817 | ||||||||||||
| Class R6 |
90,064 | 196,831 | 1,673,039 | 1,097,874 | ||||||||||||
| Total shares of beneficial interest outstanding |
9,272,953 | 23,111,168 | 36,711,333 | 13,708,010 | ||||||||||||
| Class A shares |
||||||||||||||||
| Net asset value per share |
||||||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$9.64 | $11.00 | $11.59 | $10.26 | ||||||||||||
| Offering price per share (100 / 95.75 × net asset value per share) |
$10.07 | $11.49 | $12.10 | $10.72 | ||||||||||||
| Class B shares |
||||||||||||||||
| Net asset value and offering price per share |
||||||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$9.65 | $10.97 | $11.57 | $10.29 | ||||||||||||
| Class C shares |
||||||||||||||||
| Net asset value and offering price per share |
||||||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$— | $10.98 | $11.58 | $— | ||||||||||||
| Class I shares |
||||||||||||||||
| Net asset value, offering price, and redemption price per share |
||||||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$9.63 | $9.73 | $9.66 | $9.78 | ||||||||||||
| Class R6 shares |
||||||||||||||||
| Net asset value, offering price, and redemption price per share |
||||||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$9.63 | $9.73 | $9.66 | $9.78 | ||||||||||||
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.
See Notes to Financial Statements
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Statements of Assets and Liabilities – continued
| At 3/31/19 | South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund |
||||||||||||
| Assets | ||||||||||||||||
| Investments in unaffiliated issuers, at value (identified cost, $178,817,473, $94,047,619, $300,138,803, and $100,416,505, respectively) |
$184,089,251 | $96,900,630 | $308,358,798 | $103,716,526 | ||||||||||||
| Investments in affiliated issuers, at value (identified cost, $5,275,554, $940,387, $4,084,130, and $518,078, respectively) |
5,275,936 | 940,434 | 4,084,274 | 518,129 | ||||||||||||
| Cash |
— | 500 | — | — | ||||||||||||
| Deposits with brokers for futures contracts |
79,050 | 40,800 | 132,600 | — | ||||||||||||
| Receivables for |
||||||||||||||||
| Net daily variation margin on open futures contracts |
11,627 | 6,001 | 19,503 | — | ||||||||||||
| Investments sold |
— | — | 3,071,200 | — | ||||||||||||
| Fund shares sold |
389,452 | 51,021 | 144,592 | 7,665 | ||||||||||||
| Interest |
2,522,721 | 1,322,596 | 4,183,677 | 1,505,131 | ||||||||||||
| Receivable from investment adviser |
— | 1,218 | 4,141 | 4,904 | ||||||||||||
| Other assets |
869 | 596 | 1,294 | 613 | ||||||||||||
| Total assets |
$192,368,906 | $99,263,796 | $320,000,079 | $105,752,968 | ||||||||||||
| Liabilities | ||||||||||||||||
| Payables for |
||||||||||||||||
| Distributions |
$32,311 | $20,411 | $89,295 | $15,499 | ||||||||||||
| Investments purchased |
884,332 | 995,000 | 2,155,862 | — | ||||||||||||
| Interest expense and fees |
— | — | 47,168 | — | ||||||||||||
| Fund shares reacquired |
394,317 | 132,202 | 382,946 | 108,799 | ||||||||||||
| Payable to the holders of the floating rate certificates |
— | — | 5,008,852 | — | ||||||||||||
| Payable to affiliates |
||||||||||||||||
| Investment adviser |
4,068 | — | — | — | ||||||||||||
| Shareholder servicing costs |
71,950 | 46,798 | 149,640 | 61,214 | ||||||||||||
| Distribution and service fees |
3,461 | 1,870 | 6,789 | 31 | ||||||||||||
| Payable for independent Trustees’ compensation |
3,328 | 1,756 | 3,299 | 3,328 | ||||||||||||
| Accrued expenses and other liabilities |
70,990 | 67,433 | 78,389 | 66,677 | ||||||||||||
| Total liabilities |
$1,464,757 | $1,265,470 | $7,922,240 | $255,548 | ||||||||||||
| Net assets |
$190,904,149 | $97,998,326 | $312,077,839 | $105,497,420 | ||||||||||||
| Net assets consist of | ||||||||||||||||
| Paid-in capital |
$189,803,457 | $97,078,445 | $309,239,681 | $105,608,041 | ||||||||||||
| Total distributable earnings (loss) |
1,100,692 | 919,881 | 2,838,158 | (110,621 | ) | |||||||||||
| Net assets |
$190,904,149 | $97,998,326 | $312,077,839 | $105,497,420 | ||||||||||||
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Statements of Assets and Liabilities – continued
| South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund |
|||||||||||||
| Net assets |
||||||||||||||||
| Class A |
$156,427,364 | $70,929,969 | $226,365,809 | $98,509,973 | ||||||||||||
| Class B |
1,954,533 | 677,495 | 754,954 | 494,113 | ||||||||||||
| Class C |
— | — | 17,665,303 | — | ||||||||||||
| Class I |
28,181,680 | 23,309,588 | 57,138,903 | 6,247,644 | ||||||||||||
| Class R6 |
4,340,572 | 3,081,274 | 10,152,870 | 245,690 | ||||||||||||
| Total net assets |
$190,904,149 | $97,998,326 | $312,077,839 | $105,497,420 | ||||||||||||
| Shares of beneficial interest outstanding |
||||||||||||||||
| Class A |
13,063,777 | 6,848,449 | 20,315,425 | 8,970,676 | ||||||||||||
| Class B |
163,316 | 65,472 | 67,801 | 45,009 | ||||||||||||
| Class C |
— | — | 1,585,812 | — | ||||||||||||
| Class I |
2,905,048 | 2,407,967 | 5,900,041 | 646,355 | ||||||||||||
| Class R6 |
447,403 | 318,507 | 1,047,595 | 25,427 | ||||||||||||
| Total shares of beneficial interest outstanding |
16,579,544 | 9,640,395 | 28,916,674 | 9,687,467 | ||||||||||||
| Class A shares |
||||||||||||||||
| Net asset value per share |
||||||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$11.97 | $10.36 | $11.14 | $10.98 | ||||||||||||
| Offering price per share (100 / 95.75 × net asset value per share) |
$12.50 | $10.82 | $11.63 | $11.47 | ||||||||||||
| Class B shares |
||||||||||||||||
| Net asset value and offering price per share |
||||||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$11.97 | $10.35 | $11.13 | $10.98 | ||||||||||||
| Class C shares |
||||||||||||||||
| Net asset value and offering price per share |
||||||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$— | $— | $11.14 | $— | ||||||||||||
| Class I shares |
||||||||||||||||
| Net asset value, offering price, and redemption price per share |
||||||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$9.70 | $9.68 | $9.68 | $9.67 | ||||||||||||
| Class R6 shares |
||||||||||||||||
| Net asset value, offering price, and redemption price per share |
||||||||||||||||
| (net assets / shares of beneficial interest outstanding) |
$9.70 | $9.67 | $9.69 | $9.66 | ||||||||||||
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.
See Notes to Financial Statements
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Financial Statements
Year ended 3/31/19
These statements describe how much each fund earned in investment income and accrued in expenses. They also describe any gains or losses generated by each fund’s operations.
| Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
|||||||||||||
| Net investment income (loss) | ||||||||||||||||
| Interest | $3,858,952 | $10,486,082 | $17,369,142 | $5,941,761 | ||||||||||||
| Dividends from affiliated issuers | 13,893 | 59,757 | 100,973 | 41,258 | ||||||||||||
| Other |
25 | 219 | 533 | 175 | ||||||||||||
| Total investment income |
$3,872,870 | $10,546,058 | $17,470,648 | $5,983,194 | ||||||||||||
| Expenses | ||||||||||||||||
| Management fee |
$399,158 | $1,027,079 | $1,796,074 | $571,191 | ||||||||||||
| Distribution and service fees |
206,312 | 569,346 | 1,162,330 | 275,588 | ||||||||||||
| Shareholder servicing costs |
64,626 | 170,485 | 330,943 | 108,616 | ||||||||||||
| Administrative services fee |
22,920 | 42,436 | 66,297 | 28,252 | ||||||||||||
| Independent Trustees’ compensation |
2,798 | 8,057 | 8,718 | 4,275 | ||||||||||||
| Custodian fee |
19,081 | 35,693 | 48,968 | 27,452 | ||||||||||||
| Shareholder communications |
6,308 | 11,922 | 18,775 | 11,560 | ||||||||||||
| Audit and tax fees |
55,142 | 55,179 | 55,224 | 55,152 | ||||||||||||
| Legal fees |
10,584 | 11,681 | 12,687 | 10,973 | ||||||||||||
| Registration fees |
57,598 | 70,347 | 72,419 | 58,220 | ||||||||||||
| Miscellaneous |
25,187 | 28,542 | 31,761 | 26,306 | ||||||||||||
| Total expenses |
$869,714 | $2,030,767 | $3,604,196 | $1,177,585 | ||||||||||||
| Fees paid indirectly |
(239 | ) | (29 | ) | (252 | ) | (53 | ) | ||||||||
| Reduction of expenses by investment adviser and distributor |
(132,872 | ) | (30,604 | ) | (59,309 | ) | (165,504 | ) | ||||||||
| Net expenses |
$736,603 | $2,000,134 | $3,544,635 | $1,012,028 | ||||||||||||
| Net investment income (loss) |
$3,136,267 | $8,545,924 | $13,926,013 | $4,971,166 | ||||||||||||
| Realized and unrealized gain (loss) | ||||||||||||||||
| Realized gain (loss) (identified cost basis) | ||||||||||||||||
| Unaffiliated issuers |
$(380,488 | ) | $49,973 | $(912,422 | ) | $199,215 | ||||||||||
| Affiliated issuers |
(59 | ) | 748 | (470 | ) | (536 | ) | |||||||||
| Futures contracts |
— | (49,368 | ) | (129,946 | ) | (39,201 | ) | |||||||||
| Net realized gain (loss) |
$(380,547 | ) | $1,353 | $(1,042,838 | ) | $159,478 | ||||||||||
| Change in unrealized appreciation or depreciation | ||||||||||||||||
| Unaffiliated issuers |
$1,132,423 | $2,583,182 | $3,826,413 | $969,197 | ||||||||||||
| Affiliated issuers |
63 | 260 | 169 | 201 | ||||||||||||
| Futures contracts |
— | (60,059 | ) | (251,497 | ) | (78,827 | ) | |||||||||
| Net unrealized gain (loss) |
$1,132,486 | $2,523,383 | $3,575,085 | $890,571 | ||||||||||||
| Net realized and unrealized gain (loss) |
$751,939 | $2,524,736 | $2,532,247 | $1,050,049 | ||||||||||||
| Change in net assets from operations |
$3,888,206 | $11,070,660 | $16,458,260 | $6,021,215 | ||||||||||||
See Notes to Financial Statements
82
Table of Contents
Statements of Operations – continued
| Year ended 3/31/19 | South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund |
||||||||||||
| Net investment income (loss) | ||||||||||||||||
| Interest | $7,927,193 | $4,381,740 | $12,639,574 | $4,607,878 | ||||||||||||
| Dividends from affiliated issuers | 36,215 | 16,676 | 66,161 | 18,807 | ||||||||||||
| Other |
272 | 101 | 451 | 32 | ||||||||||||
| Total investment income |
$7,963,680 | $4,398,517 | $12,706,186 | $4,626,717 | ||||||||||||
| Expenses | ||||||||||||||||
| Management fee |
$827,906 | $451,714 | $1,358,104 | $474,220 | ||||||||||||
| Distribution and service fees |
408,507 | 200,344 | 758,142 | 250,002 | ||||||||||||
| Shareholder servicing costs |
134,070 | 84,227 | 276,614 | 99,941 | ||||||||||||
| Administrative services fee |
36,242 | 24,566 | 52,670 | 25,255 | ||||||||||||
| Independent Trustees’ compensation |
4,722 | 4,264 | 8,542 | 4,584 | ||||||||||||
| Custodian fee |
27,572 | 19,625 | 42,290 | 17,127 | ||||||||||||
| Shareholder communications |
10,292 | 6,458 | 16,624 | 6,732 | ||||||||||||
| Audit and tax fees |
55,168 | 55,147 | 55,198 | 55,147 | ||||||||||||
| Legal fees |
10,706 | 6,288 | 7,792 | 8,420 | ||||||||||||
| Registration fees |
57,378 | 56,569 | 70,681 | 57,180 | ||||||||||||
| Interest expense and fees |
— | — | 112,061 | — | ||||||||||||
| Miscellaneous |
26,989 | 25,645 | 27,863 | 25,257 | ||||||||||||
| Total expenses |
$1,599,552 | $934,847 | $2,786,581 | $1,023,865 | ||||||||||||
| Fees paid indirectly |
(208 | ) | (223 | ) | (217 | ) | (352 | ) | ||||||||
| Reduction of expenses by investment adviser and distributor |
(113,144 | ) | (104,705 | ) | (243,056 | ) | (131,034 | ) | ||||||||
| Net expenses |
$1,486,200 | $829,919 | $2,543,308 | $892,479 | ||||||||||||
| Net investment income (loss) |
$6,477,480 | $3,568,598 | $10,162,878 | $3,734,238 | ||||||||||||
| Realized and unrealized gain (loss) | ||||||||||||||||
| Realized gain (loss) (identified cost basis) | ||||||||||||||||
| Unaffiliated issuers |
$(131,049 | ) | $(15,805 | ) | $89,989 | $(102,664 | ) | |||||||||
| Affiliated issuers |
(20 | ) | 35 | (195 | ) | 219 | ||||||||||
| Futures contracts |
(64,150 | ) | (17,868 | ) | (107,289 | ) | — | |||||||||
| Net realized gain (loss) |
$(195,219 | ) | $(33,638 | ) | $(17,495 | ) | $(102,445 | ) | ||||||||
| Change in unrealized appreciation or depreciation | ||||||||||||||||
| Unaffiliated issuers |
$1,918,408 | $881,992 | $3,905,838 | $596,547 | ||||||||||||
| Affiliated issuers |
47 | 15 | (58 | ) | 51 | |||||||||||
| Futures contracts |
(116,364 | ) | (60,059 | ) | (195,191 | ) | — | |||||||||
| Net unrealized gain (loss) |
$1,802,091 | $821,948 | $3,710,589 | $596,598 | ||||||||||||
| Net realized and unrealized gain (loss) |
$1,606,872 | $788,310 | $3,693,094 | $494,153 | ||||||||||||
| Change in net assets from operations |
$8,084,352 | $4,356,908 | $13,855,972 | $4,228,391 | ||||||||||||
See Notes to Financial Statements
83
Table of Contents
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 3/31/19 | Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
||||||||||||
| Change in net assets | ||||||||||||||||
| From operations | ||||||||||||||||
| Net investment income (loss) | $3,136,267 | $8,545,924 | $13,926,013 | $4,971,166 | ||||||||||||
| Net realized gain (loss) |
(380,547 | ) | 1,353 | (1,042,838 | ) | 159,478 | ||||||||||
| Net unrealized gain (loss) |
1,132,486 | 2,523,383 | 3,575,085 | 890,571 | ||||||||||||
| Change in net assets from operations |
$3,888,206 | $11,070,660 | $16,458,260 | $6,021,215 | ||||||||||||
| Total distributions to shareholders (a) |
$(2,866,935 | ) | $(8,046,040 | ) | $(12,599,570 | ) | $(4,505,538 | ) | ||||||||
| Change in net assets from fund share transactions |
$(2,266,723 | ) | $12,693,368 | $9,262,693 | $13,059,554 | |||||||||||
| Total change in net assets |
$(1,245,452 | ) | $15,717,988 | $13,121,383 | $14,575,231 | |||||||||||
| Net assets | ||||||||||||||||
| At beginning of period |
90,633,475 | 229,242,917 | 397,294,159 | 124,563,770 | ||||||||||||
| At end of period (b) |
$89,388,023 | $244,960,905 | $410,415,542 | $139,139,001 | ||||||||||||
| Year ended 3/31/19 | South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund |
||||||||||||
| Change in net assets | ||||||||||||||||
| From operations | ||||||||||||||||
| Net investment income (loss) | $6,477,480 | $3,568,598 | $10,162,878 | $3,734,238 | ||||||||||||
| Net realized gain (loss) |
(195,219 | ) | (33,638 | ) | (17,495 | ) | (102,445 | ) | ||||||||
| Net unrealized gain (loss) |
1,802,091 | 821,948 | 3,710,589 | 596,598 | ||||||||||||
| Change in net assets from operations |
$8,084,352 | $4,356,908 | $13,855,972 | $4,228,391 | ||||||||||||
| Total distributions to shareholders (a) |
$(5,798,616 | ) | $(3,225,738 | ) | $(9,427,032 | ) | $(3,372,239 | ) | ||||||||
| Change in net assets from fund share transactions |
$2,084,600 | $(8,760,970 | ) | $11,300,168 | $(4,152,969 | ) | ||||||||||
| Total change in net assets |
$4,370,336 | $(7,629,800 | ) | $15,729,108 | $(3,296,817 | ) | ||||||||||
| Net assets | ||||||||||||||||
| At beginning of period |
186,533,813 | 105,628,126 | 296,348,731 | 108,794,237 | ||||||||||||
| At end of period (b) |
$190,904,149 | $97,998,326 | $312,077,839 | $105,497,420 | ||||||||||||
| (a) | Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. |
| (b) | Disclosure of accumulated undistributed (distributions in excess of) net investment income is no longer required. See Note 2. |
See Notes to Financial Statements
84
Table of Contents
Statements of Changes in Net Assets – continued
| Year ended 3/31/18 | Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
||||||||||||
| Change in net assets | ||||||||||||||||
| From operations | ||||||||||||||||
| Net investment income (loss) | $2,919,179 | $7,856,699 | $12,497,724 | $4,874,401 | ||||||||||||
| Net realized gain (loss) |
96,646 | 1,621,111 | 543,065 | 355,231 | ||||||||||||
| Net unrealized gain (loss) |
(1,162,717 | ) | (3,697,702 | ) | (5,409,865 | ) | (1,189,045 | ) | ||||||||
| Change in net assets from operations |
$1,853,108 | $5,780,108 | $7,630,924 | $4,040,587 | ||||||||||||
| Distributions declared to shareholders |
||||||||||||||||
| From net investment income |
$(2,905,463 | ) | $(7,406,413 | ) | $(11,805,586 | ) | $(4,543,541 | ) | ||||||||
| Change in net assets from fund share transactions |
$1,458,514 | $25,286,785 | $38,303,917 | $2,031,984 | ||||||||||||
| Total change in net assets |
$406,159 | $23,660,480 | $34,129,255 | $1,529,030 | ||||||||||||
| Net assets |
||||||||||||||||
| At beginning of period | 90,227,316 | 205,582,437 | 363,164,904 | 123,034,740 | ||||||||||||
| At end of period |
$90,633,475 | $229,242,917 | $397,294,159 | $124,563,770 | ||||||||||||
| Accumulated undistributed (distributions in excess of) net investment income included in net assets at end of period |
$60,904 | $(8,962 | ) | $92,912 | $9,722 | |||||||||||
| Year ended 3/31/18 | South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund |
||||||||||||
| Change in net assets | ||||||||||||||||
| From operations | ||||||||||||||||
| Net investment income (loss) | $6,028,600 | $3,699,698 | $10,022,668 | $3,811,998 | ||||||||||||
| Net realized gain (loss) |
949,545 | 453,558 | 828,545 | 239,699 | ||||||||||||
| Net unrealized gain (loss) |
(2,524,716 | ) | (1,921,607 | ) | (4,613,770 | ) | (1,519,981 | ) | ||||||||
| Change in net assets from operations |
$4,453,429 | $2,231,649 | $6,237,443 | $2,531,716 | ||||||||||||
| Distributions declared to shareholders | ||||||||||||||||
| From net investment income | $(5,745,985 | ) | $(3,528,723 | ) | $(9,520,824 | ) | $(3,682,257 | ) | ||||||||
| Change in net assets from fund share transactions | $1,956,231 | $(3,524,318 | ) | $4,327,384 | $(6,919,104 | ) | ||||||||||
| Total change in net assets | $663,675 | $(4,821,392 | ) | $1,044,003 | $(8,069,645 | ) | ||||||||||
| Net assets | ||||||||||||||||
| At beginning of period | 185,870,138 | 110,449,518 | 295,304,728 | 116,863,882 | ||||||||||||
| At end of period |
$186,533,813 | $105,628,126 | $296,348,731 | $108,794,237 | ||||||||||||
| Accumulated undistributed (distributions in excess of) net investment income included in net assets at end of period |
$(16,555 | ) | $475,803 | $(92,540 | ) | $(11,031 | ) | |||||||||
See Notes to Financial Statements
85
Table of Contents
Financial Statements
MFS MISSISSIPPI MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years (or life of a particular share class, if shorter). 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.
| Year ended | ||||||||||||||||||||
| Class A | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$9.53 | $9.64 | $10.02 | $10.01 | $9.67 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.34 | $0.31 | $0.34 | (c) | $0.36 | $0.35 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.08 | (0.11 | ) | (0.39 | ) | (0.01 | ) | 0.34 | ||||||||||||
| Total from investment operations |
$0.42 | $0.20 | $(0.05 | ) | $0.35 | $0.69 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.31 | ) | $(0.31 | ) | $(0.33 | ) | $(0.34 | ) | $(0.35 | ) | ||||||||||
| Net asset value, end of period (x) |
$9.64 | $9.53 | $9.64 | $10.02 | $10.01 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.47 | 2.07 | (0.49 | )(c) | 3.60 | 7.18 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
1.00 | 1.00 | 0.98 | (c) | 0.96 | 0.96 | ||||||||||||||
| Expenses after expense reductions (f) |
0.83 | 0.83 | 0.81 | (c) | 0.80 | 0.80 | ||||||||||||||
| Net investment income (loss) |
3.53 | 3.21 | 3.41 | (c) | 3.63 | 3.56 | ||||||||||||||
| Portfolio turnover |
16 | 11 | 14 | 17 | 16 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$79,190 | $82,526 | $84,401 | $88,070 | $85,927 | |||||||||||||||
| Year ended | ||||||||||||||||||||
| Class B | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$9.54 | $9.65 | $10.04 | $10.02 | $9.68 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.27 | $0.25 | $0.27 | (c) | $0.29 | $0.29 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.09 | (0.11 | ) | (0.39 | ) | (0.00 | )(w) | 0.33 | ||||||||||||
| Total from investment operations |
$0.36 | $0.14 | $(0.12 | ) | $0.29 | $0.62 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.25 | ) | $(0.25 | ) | $(0.27 | ) | $(0.27 | ) | $(0.28 | ) | ||||||||||
| Net asset value, end of period (x) |
$9.65 | $9.54 | $9.65 | $10.04 | $10.02 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
3.79 | 1.40 | (1.25 | )(c) | 3.01 | 6.47 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
1.75 | 1.75 | 1.72 | (c) | 1.71 | 1.71 | ||||||||||||||
| Expenses after expense reductions (f) |
1.49 | 1.50 | 1.48 | (c) | 1.47 | 1.47 | ||||||||||||||
| Net investment income (loss) |
2.87 | 2.55 | 2.74 | (c) | 2.96 | 2.90 | ||||||||||||||
| Portfolio turnover |
16 | 11 | 14 | 17 | 16 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$659 | $1,007 | $1,180 | $1,477 | $1,655 | |||||||||||||||
See Notes to Financial Statements
86
Table of Contents
Financial Highlights – continued
MFS MISSISSIPPI MUNICIPAL BOND FUND – continued
| Year ended | ||||||||||||
| Class I | 3/31/19 | 3/31/18 | 3/31/17 (i) | |||||||||
| Net asset value, beginning of period |
$9.51 | $9.62 | $10.00 | |||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) |
$0.34 | $0.32 | $0.34 | (c) | ||||||||
| Net realized and unrealized gain (loss) |
0.09 | (0.11 | ) | (0.38 | ) | |||||||
| Total from investment operations |
$0.43 | $0.21 | $(0.04 | ) | ||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.31 | ) | $(0.32 | ) | $(0.34 | ) | ||||||
| Net asset value, end of period (x) |
$9.63 | $9.51 | $9.62 | |||||||||
| Total return (%) (r)(s)(t)(x) |
4.67 | 2.15 | (0.42 | )(c) | ||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) |
0.75 | 0.74 | 0.75 | (c) | ||||||||
| Expenses after expense reductions (f) |
0.74 | 0.74 | 0.75 | (c) | ||||||||
| Net investment income (loss) |
3.63 | 3.29 | 3.44 | (c) | ||||||||
| Portfolio turnover |
16 | 11 | 14 | |||||||||
| Net assets at end of period (000 omitted) |
$8,672 | $6,540 | $4,646 | |||||||||
| Year ended | ||||||||
| Class R6 | 3/31/19 | 3/31/18 (i) | ||||||
| Net asset value, beginning of period |
$9.51 | $9.76 | ||||||
| Income (loss) from investment operations | ||||||||
| Net investment income (loss) (d) |
$0.35 | $0.21 | ||||||
| Net realized and unrealized gain (loss) |
0.09 | (0.24 | ) | |||||
| Total from investment operations |
$0.44 | $(0.03 | ) | |||||
| Less distributions declared to shareholders | ||||||||
| From net investment income |
$(0.32 | ) | $(0.22 | ) | ||||
| Net asset value, end of period (x) |
$9.63 | $9.51 | ||||||
| Total return (%) (r)(s)(t)(x) |
4.74 | (0.36 | )(n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||
| Expenses before expense reductions (f) |
0.68 | 0.71 | (a) | |||||
| Expenses after expense reductions (f) |
0.67 | 0.70 | (a) | |||||
| Net investment income (loss) |
3.71 | 3.33 | (a) | |||||
| Portfolio turnover |
16 | 11 | ||||||
| Net assets at end of period (000 omitted) |
$867 | $560 | ||||||
| (a) | Annualized. |
| (c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (i) | For Class I and Class R6, the period is from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
| (n) | Not annualized. |
| (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. |
| (w) | Per share amount was less than $0.01. |
| (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
87
Table of Contents
Financial Highlights – continued
MFS NEW YORK MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years (or life of a particular share class, if shorter). 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.
| Year ended | ||||||||||||||||||||
| Class A | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.87 | $10.93 | $11.31 | $11.25 | $10.74 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.40 | $0.40 | $0.41 | (c) | $0.43 | $0.39 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.11 | (0.08 | ) | (0.39 | ) | 0.01 | 0.51 | |||||||||||||
| Total from investment operations |
$0.51 | $0.32 | $0.02 | $0.44 | $0.90 | |||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.38 | ) | $(0.38 | ) | $(0.40 | ) | $(0.38 | ) | $(0.39 | ) | ||||||||||
| Net asset value, end of period (x) |
$11.00 | $10.87 | $10.93 | $11.31 | $11.25 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.82 | 2.89 | 0.15 | (c) | 4.05 | 8.48 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
0.89 | 0.89 | 0.89 | (c) | 0.88 | 0.88 | ||||||||||||||
| Expenses after expense reductions (f) |
0.88 | 0.88 | 0.88 | (c) | 0.87 | 0.87 | ||||||||||||||
| Net investment income (loss) |
3.75 | 3.60 | 3.68 | (c) | 3.84 | 3.51 | ||||||||||||||
| Portfolio turnover |
17 | 23 | 28 | 13 | 25 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$154,803 | $143,689 | $124,890 | $169,905 | $164,566 | |||||||||||||||
| Year ended | ||||||||||||||||||||
| Class B | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.84 | $10.90 | $11.28 | $11.22 | $10.71 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.32 | $0.32 | $0.33 | (c) | $0.34 | $0.31 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.11 | (0.09 | ) | (0.40 | ) | 0.02 | 0.51 | |||||||||||||
| Total from investment operations |
$0.43 | $0.23 | $(0.07 | ) | $0.36 | $0.82 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.30 | ) | $(0.29 | ) | $(0.31 | ) | $(0.30 | ) | $(0.31 | ) | ||||||||||
| Net asset value, end of period (x) |
$10.97 | $10.84 | $10.90 | $11.28 | $11.22 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.05 | 2.12 | (0.60 | )(c) | 3.28 | 7.69 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
1.64 | 1.64 | 1.64 | (c) | 1.63 | 1.63 | ||||||||||||||
| Expenses after expense reductions (f) |
1.63 | 1.64 | 1.63 | (c) | 1.63 | 1.63 | ||||||||||||||
| Net investment income (loss) |
3.01 | 2.87 | 2.94 | (c) | 3.10 | 2.76 | ||||||||||||||
| Portfolio turnover |
17 | 23 | 28 | 13 | 25 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$2,876 | $3,980 | $5,032 | $5,398 | $5,459 | |||||||||||||||
See Notes to Financial Statements
88
Table of Contents
Financial Highlights – continued
MFS NEW YORK MUNICIPAL BOND FUND – continued
| Year ended | ||||||||||||||||||||
| Class C | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.86 | $10.92 | $11.30 | $11.23 | $10.72 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.32 | $0.31 | $0.33 | (c) | $0.34 | $0.31 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.10 | (0.08 | ) | (0.39 | ) | 0.03 | 0.51 | |||||||||||||
| Total from investment operations |
$0.42 | $0.23 | $(0.06 | ) | $0.37 | $0.82 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.30 | ) | $(0.29 | ) | $(0.32 | ) | $(0.30 | ) | $(0.31 | ) | ||||||||||
| Net asset value, end of period (x) |
$10.98 | $10.86 | $10.92 | $11.30 | $11.23 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
3.95 | 2.12 | (0.60 | )(c) | 3.37 | 7.68 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
1.64 | 1.64 | 1.64 | (c) | 1.63 | 1.63 | ||||||||||||||
| Expenses after expense reductions (f) |
1.63 | 1.64 | 1.63 | (c) | 1.62 | 1.63 | ||||||||||||||
| Net investment income (loss) |
2.99 | 2.85 | 2.94 | (c) | 3.09 | 2.76 | ||||||||||||||
| Portfolio turnover |
17 | 23 | 28 | 13 | 25 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$16,953 | $22,932 | $25,246 | $26,751 | $25,092 | |||||||||||||||
| Year ended | ||||||||||||||||||||
| Class I | 3/31/19 | 3/31/18 | 3/31/17 (i) | |||||||||||||||||
| Net asset value, beginning of period |
$9.61 | $9.67 | $10.00 | |||||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) | $0.38 | $0.38 | $0.39 | (c) | ||||||||||||||||
| Net realized and unrealized gain (loss) |
0.10 | (0.08 | ) | (0.34 | ) | |||||||||||||||
| Total from investment operations |
$0.48 | $0.30 | $0.05 | |||||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.36 | ) | $(0.36 | ) | $(0.38 | ) | ||||||||||||||
| Net asset value, end of period (x) |
$9.73 | $9.61 | $9.67 | |||||||||||||||||
| Total return (%) (r)(s)(t)(x) |
5.13 | 3.07 | 0.49 | (c) | ||||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) | 0.64 | 0.64 | 0.64 | (c) | ||||||||||||||||
| Expenses after expense reductions (f) |
0.63 | 0.64 | 0.64 | (c) | ||||||||||||||||
| Net investment income (loss) |
3.99 | 3.84 | 3.97 | (c) | ||||||||||||||||
| Portfolio turnover |
17 | 23 | 28 | |||||||||||||||||
| Net assets at end of period (000 omitted) |
$68,415 | $57,349 | $50,414 | |||||||||||||||||
See Notes to Financial Statements
89
Table of Contents
Financial Highlights – continued
MFS NEW YORK MUNICIPAL BOND FUND – continued
| Year ended | ||||||||
| Class R6 | 3/31/19 | 3/31/18 (i) | ||||||
| Net asset value, beginning of period |
$9.61 | $9.83 | ||||||
| Income (loss) from investment operations | ||||||||
| Net investment income (loss) (d) | $0.39 | $0.24 | ||||||
| Net realized and unrealized gain (loss) |
0.10 | (0.23 | ) | |||||
| Total from investment operations |
$0.49 | $0.01 | ||||||
| Less distributions declared to shareholders | ||||||||
| From net investment income |
$(0.37 | ) | $(0.23 | ) | ||||
| Net asset value, end of period (x) |
$9.73 | $9.61 | ||||||
| Total return (%) (r)(s)(t)(x) |
5.19 | 0.11 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||
| Expenses before expense reductions (f) | 0.57 | 0.60 | (a) | |||||
| Expenses after expense reductions (f) |
0.57 | 0.59 | (a) | |||||
| Net investment income (loss) |
4.04 | 3.80 | (a) | |||||
| Portfolio turnover |
17 | 23 | ||||||
| Net assets at end of period (000 omitted) |
$1,914 | $1,293 | ||||||
| (a) | Annualized. |
| (c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (i) | For Class I and Class R6, the period is from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
| (n) | Not annualized. |
| (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
90
Table of Contents
Financial Highlights – continued
MFS NORTH CAROLINA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years (or life of a particular share class, if shorter). 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.
| Year ended | ||||||||||||||||||||
| Class A | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$11.48 | $11.59 | $12.01 | $12.00 | $11.58 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.40 | $0.40 | $0.41 | (c) | $0.42 | $0.42 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.07 | (0.14 | ) | (0.42 | ) | (0.01 | ) | 0.40 | ||||||||||||
| Total from investment operations |
$0.47 | $0.26 | $(0.01 | ) | $0.41 | $0.82 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.36 | ) | $(0.37 | ) | $(0.41 | ) | $(0.40 | ) | $(0.40 | ) | ||||||||||
| Net asset value, end of period (x) |
$11.59 | $11.48 | $11.59 | $12.01 | $12.00 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.23 | 2.28 | (0.14 | )(c) | 3.48 | 7.13 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
0.86 | 0.87 | 0.87 | (c) | 0.87 | 0.86 | ||||||||||||||
| Expenses after expense reductions (f) |
0.85 | 0.86 | 0.86 | (c) | 0.86 | 0.85 | ||||||||||||||
| Net investment income (loss) |
3.53 | 3.39 | 3.48 | (c) | 3.52 | 3.50 | ||||||||||||||
| Portfolio turnover |
19 | 12 | 22 | 9 | 16 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$295,515 | $283,545 | $263,433 | $289,167 | $281,268 | |||||||||||||||
| Year ended | ||||||||||||||||||||
| Class B | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$11.46 | $11.58 | $11.99 | $11.98 | $11.56 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.32 | $0.31 | $0.32 | (c) | $0.33 | $0.33 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.07 | (0.14 | ) | (0.41 | ) | (0.01 | ) | 0.40 | ||||||||||||
| Total from investment operations |
$0.39 | $0.17 | $(0.09 | ) | $0.32 | $0.73 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.28 | ) | $(0.29 | ) | $(0.32 | ) | $(0.31 | ) | $(0.31 | ) | ||||||||||
| Net asset value, end of period (x) |
$11.57 | $11.46 | $11.58 | $11.99 | $11.98 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
3.46 | 1.43 | (0.81 | )(c) | 2.71 | 6.34 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
1.62 | 1.62 | 1.62 | (c) | 1.62 | 1.61 | ||||||||||||||
| Expenses after expense reductions (f) |
1.61 | 1.62 | 1.61 | (c) | 1.61 | 1.61 | ||||||||||||||
| Net investment income (loss) |
2.78 | 2.65 | 2.73 | (c) | 2.78 | 2.76 | ||||||||||||||
| Portfolio turnover |
19 | 12 | 22 | 9 | 16 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$1,299 | $2,288 | $3,303 | $4,213 | $4,738 | |||||||||||||||
See Notes to Financial Statements
91
Table of Contents
Financial Highlights – continued
MFS NORTH CAROLINA MUNICIPAL BOND FUND – continued
| Year ended | ||||||||||||||||||||
| Class C | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$11.47 | $11.59 | $12.00 | $11.99 | $11.57 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.32 | $0.31 | $0.32 | (c) | $0.33 | $0.33 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.07 | (0.14 | ) | (0.41 | ) | (0.01 | ) | 0.40 | ||||||||||||
| Total from investment operations |
$0.39 | $0.17 | $(0.09 | ) | $0.32 | $0.73 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.28 | ) | $(0.29 | ) | $(0.32 | ) | $(0.31 | ) | $(0.31 | ) | ||||||||||
| Net asset value, end of period (x) |
$11.58 | $11.47 | $11.59 | $12.00 | $11.99 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
3.45 | 1.42 | (0.81 | )(c) | 2.71 | 6.33 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
1.62 | 1.62 | 1.62 | (c) | 1.62 | 1.61 | ||||||||||||||
| Expenses after expense reductions (f) |
1.61 | 1.62 | 1.61 | (c) | 1.61 | 1.60 | ||||||||||||||
| Net investment income (loss) |
2.78 | 2.64 | 2.73 | (c) | 2.77 | 2.75 | ||||||||||||||
| Portfolio turnover |
19 | 12 | 22 | 9 | 16 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$38,639 | $53,117 | $57,868 | $57,161 | $56,074 | |||||||||||||||
| Year ended | ||||||||||||||||||||
| Class I | 3/31/19 | 3/31/18 | 3/31/17 (i) | |||||||||||||||||
| Net asset value, beginning of period |
$9.57 | $9.66 | $10.00 | |||||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.36 | $0.35 | $0.37 | (c) | ||||||||||||||||
| Net realized and unrealized gain (loss) |
0.06 | (0.10 | ) | (0.34 | ) | |||||||||||||||
| Total from investment operations |
$0.42 | $0.25 | $0.03 | |||||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.33 | ) | $(0.34 | ) | $(0.37 | ) | ||||||||||||||
| Net asset value, end of period (x) |
$9.66 | $9.57 | $9.66 | |||||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.46 | 2.54 | 0.23 | (c) | ||||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
0.61 | 0.62 | 0.62 | (c) | ||||||||||||||||
| Expenses after expense reductions (f) |
0.60 | 0.61 | 0.62 | (c) | ||||||||||||||||
| Net investment income (loss) |
3.77 | 3.62 | 3.71 | (c) | ||||||||||||||||
| Portfolio turnover |
19 | 12 | 22 | |||||||||||||||||
| Net assets at end of period (000 omitted) |
$58,802 | $45,147 | $38,561 | |||||||||||||||||
See Notes to Financial Statements
92
Table of Contents
Financial Highlights – continued
MFS NORTH CAROLINA MUNICIPAL BOND FUND – continued
| Year ended | ||||||||
| Class R6 | 3/31/19 | 3/31/18 (i) | ||||||
| Net asset value, beginning of period |
$9.57 | $9.78 | ||||||
| Income (loss) from investment operations | ||||||||
| Net investment income (loss) (d) |
$0.37 | $0.23 | ||||||
| Net realized and unrealized gain (loss) |
0.05 | (0.22 | ) | |||||
| Total from investment operations |
$0.42 | $0.01 | ||||||
| Less distributions declared to shareholders | ||||||||
| From net investment income |
$(0.33 | ) | $(0.22 | ) | ||||
| Net asset value, end of period (x) |
$9.66 | $9.57 | ||||||
| Total return (%) (r)(s)(t)(x) |
4.54 | 0.15 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||
| Expenses before expense reductions (f) |
0.54 | 0.55 | (a) | |||||
| Expenses after expense reductions (f) |
0.53 | 0.55 | (a) | |||||
| Net investment income (loss) |
3.85 | 3.64 | (a) | |||||
| Portfolio turnover |
19 | 12 | ||||||
| Net assets at end of period (000 omitted) |
$16,161 | $13,198 | ||||||
| (a) | Annualized. |
| (c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (i) | For Class I and Class R6, the period is from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
| (n) | Not annualized. |
| (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
93
Table of Contents
Financial Highlights – continued
MFS PENNSYLVANIA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years (or life of a particular share class, if shorter). 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.
| Year ended | ||||||||||||||||||||
| Class A | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.15 | $10.19 | $10.50 | $10.44 | $9.99 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.40 | $0.40 | $0.38 | $0.39 | $0.35 | |||||||||||||||
| Net realized and unrealized gain (loss) |
0.07 | (0.07 | ) | (0.32 | ) | 0.03 | 0.45 | |||||||||||||
| Total from investment operations |
$0.47 | $0.33 | $0.06 | $0.42 | $0.80 | |||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.36 | ) | $(0.37 | ) | $(0.37 | ) | $(0.36 | ) | $(0.35 | ) | ||||||||||
| Net asset value, end of period (x) |
$10.26 | $10.15 | $10.19 | $10.50 | $10.44 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.73 | 3.29 | 0.57 | 4.16 | 8.10 | |||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
0.96 | 0.97 | 0.96 | 0.94 | 0.95 | |||||||||||||||
| Expenses after expense reductions (f) |
0.80 | 0.81 | 0.80 | 0.79 | 0.79 | |||||||||||||||
| Net investment income (loss) |
3.91 | 3.90 | 3.64 | 3.73 | 3.42 | |||||||||||||||
| Portfolio turnover |
16 | 16 | 15 | 16 | 23 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$105,777 | $99,319 | $98,907 | $115,732 | $110,378 | |||||||||||||||
| Year ended | ||||||||||||||||||||
| Class B | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.18 | $10.21 | $10.52 | $10.47 | $10.02 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.32 | $0.32 | $0.30 | $0.31 | $0.27 | |||||||||||||||
| Net realized and unrealized gain (loss) |
0.07 | (0.05 | ) | (0.32 | ) | 0.02 | 0.45 | |||||||||||||
| Total from investment operations |
$0.39 | $0.27 | $(0.02 | ) | $0.33 | $0.72 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.28 | ) | $(0.30 | ) | $(0.29 | ) | $(0.28 | ) | $(0.27 | ) | ||||||||||
| Net asset value, end of period (x) |
$10.29 | $10.18 | $10.21 | $10.52 | $10.47 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
3.95 | 2.62 | (0.19 | ) | 3.26 | 7.26 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
1.71 | 1.72 | 1.71 | 1.69 | 1.70 | |||||||||||||||
| Expenses after expense reductions (f) |
1.55 | 1.56 | 1.56 | 1.54 | 1.55 | |||||||||||||||
| Net investment income (loss) |
3.15 | 3.15 | 2.87 | 2.96 | 2.65 | |||||||||||||||
| Portfolio turnover |
16 | 16 | 15 | 16 | 23 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$2,373 | $3,462 | $4,740 | $5,647 | $6,212 | |||||||||||||||
See Notes to Financial Statements
94
Table of Contents
Financial Highlights – continued
MFS PENNSYLVANIA MUNICIPAL BOND FUND – continued
| Year ended | ||||||||||||
| Class I | 3/31/19 | 3/31/18 | 3/31/17 (i) | |||||||||
| Net asset value, beginning of period |
$9.67 | $9.71 | $10.00 | |||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) |
$0.38 | $0.39 | $0.36 | |||||||||
| Net realized and unrealized gain (loss) |
0.08 | (0.07 | ) | (0.29 | ) | |||||||
| Total from investment operations |
$0.46 | $0.32 | $0.07 | |||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.35 | ) | $(0.36 | ) | $(0.36 | ) | ||||||
| Net asset value, end of period (x) |
$9.78 | $9.67 | $9.71 | |||||||||
| Total return (%) (r)(s)(t)(x) |
4.88 | 3.37 | 0.73 | |||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) |
0.71 | 0.71 | 0.74 | |||||||||
| Expenses after expense reductions (f) |
0.70 | 0.71 | 0.73 | |||||||||
| Net investment income (loss) |
4.00 | 3.99 | 3.69 | |||||||||
| Portfolio turnover |
16 | 16 | 15 | |||||||||
| Net assets at end of period (000 omitted) |
$20,253 | $20,579 | $19,388 | |||||||||
| Year ended | ||||||||||||
| Class R6 | 3/31/19 | 3/31/18 (i) | ||||||||||
| Net asset value, beginning of period |
$9.67 | $9.84 | ||||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) |
$0.40 | $0.26 | ||||||||||
| Net realized and unrealized gain (loss) |
0.07 | (0.18 | ) | |||||||||
| Total from investment operations |
$0.47 | $0.08 | ||||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.36 | ) | $(0.25 | ) | ||||||||
| Net asset value, end of period (x) |
$9.78 | $9.67 | ||||||||||
| Total return (%) (r)(s)(t)(x) |
4.94 | 0.78 | (n) | |||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) |
0.64 | 0.67 | (a) | |||||||||
| Expenses after expense reductions (f) |
0.63 | 0.66 | (a) | |||||||||
| Net investment income (loss) |
4.13 | 4.02 | (a) | |||||||||
| Portfolio turnover |
16 | 16 | ||||||||||
| Net assets at end of period (000 omitted) |
$10,736 | $1,205 | ||||||||||
| (a) | Annualized. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (i) | For Class I and Class R6, the period is from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
| (n) | Not annualized. |
| (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
95
Table of Contents
Financial Highlights – continued
MFS SOUTH CAROLINA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years (or life of a particular share class, if shorter). 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.
| Year ended | ||||||||||||||||||||
| Class A | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$11.83 | $11.91 | $12.35 | $12.29 | $11.78 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.41 | $0.38 | $0.39 | (c) | $0.39 | $0.36 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.10 | (0.09 | ) | (0.46 | ) | 0.03 | 0.51 | |||||||||||||
| Total from investment operations |
$0.51 | $0.29 | $(0.07 | ) | $0.42 | $0.87 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.37 | ) | $(0.37 | ) | $(0.37 | ) | $(0.36 | ) | $(0.36 | ) | ||||||||||
| Net asset value, end of period (x) |
$11.97 | $11.83 | $11.91 | $12.35 | $12.29 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.39 | 2.41 | (0.56 | )(c) | 3.52 | 7.48 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
0.90 | 0.91 | 0.90 | (c) | 0.89 | 0.90 | ||||||||||||||
| Expenses after expense reductions (f) |
0.84 | 0.84 | 0.83 | (c) | 0.85 | 0.89 | ||||||||||||||
| Net investment income (loss) |
3.49 | 3.20 | 3.19 | (c) | 3.17 | 2.97 | ||||||||||||||
| Portfolio turnover |
14 | 15 | 19 | 8 | 22 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$156,427 | $159,257 | $169,953 | $176,282 | $170,887 | |||||||||||||||
| Year ended | ||||||||||||||||||||
| Class B | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$11.82 | $11.90 | $12.34 | $12.28 | $11.77 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.32 | $0.29 | $0.30 | (c) | $0.29 | $0.27 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.11 | (0.09 | ) | (0.46 | ) | 0.04 | 0.51 | |||||||||||||
| Total from investment operations |
$0.43 | $0.20 | $(0.16 | ) | $0.33 | $0.78 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.28 | ) | $(0.28 | ) | $(0.28 | ) | $(0.27 | ) | $(0.27 | ) | ||||||||||
| Net asset value, end of period (x) |
$11.97 | $11.82 | $11.90 | $12.34 | $12.28 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
3.70 | 1.64 | (1.31 | )(c) | 2.75 | 6.69 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
1.65 | 1.66 | 1.65 | (c) | 1.65 | 1.65 | ||||||||||||||
| Expenses after expense reductions (f) |
1.59 | 1.59 | 1.59 | (c) | 1.61 | 1.64 | ||||||||||||||
| Net investment income (loss) |
2.74 | 2.46 | 2.44 | (c) | 2.42 | 2.22 | ||||||||||||||
| Portfolio turnover |
14 | 15 | 19 | 8 | 22 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$1,955 | $2,718 | $3,777 | $4,238 | $4,635 | |||||||||||||||
See Notes to Financial Statements
96
Table of Contents
Financial Highlights – continued
MFS SOUTH CAROLINA MUNICIPAL BOND FUND – continued
| Year ended | ||||||||||||
| Class I | 3/31/19 | 3/31/18 | 3/31/17 (i) | |||||||||
| Net asset value, beginning of period |
$9.58 | $9.65 | $10.00 | |||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) |
$0.36 | $0.33 | $0.34 | (c) | ||||||||
| Net realized and unrealized gain (loss) |
0.08 | (0.08 | ) | (0.36 | ) | |||||||
| Total from investment operations |
$0.44 | $0.25 | $(0.02 | ) | ||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.32 | ) | $(0.32 | ) | $(0.33 | ) | ||||||
| Net asset value, end of period (x) |
$9.70 | $9.58 | $9.65 | |||||||||
| Total return (%) (r)(s)(t)(x) |
4.71 | 2.60 | (0.21 | )(c) | ||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) |
0.65 | 0.66 | 0.65 | (c) | ||||||||
| Expenses after expense reductions (f) |
0.59 | 0.59 | 0.59 | (c) | ||||||||
| Net investment income (loss) |
3.74 | 3.44 | 3.45 | (c) | ||||||||
| Portfolio turnover |
14 | 15 | 19 | |||||||||
| Net assets at end of period (000 omitted) |
$28,182 | $21,954 | $12,140 | |||||||||
| Year ended | ||||||||||||
| Class R6 | 3/31/19 | 3/31/18 (i) | ||||||||||
| Net asset value, beginning of period |
$9.58 | $9.79 | ||||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) |
$0.36 | $0.23 | ||||||||||
| Net realized and unrealized gain (loss) |
0.09 | (0.22 | ) | |||||||||
| Total from investment operations |
$0.45 | $0.01 | ||||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.33 | ) | $(0.22 | ) | ||||||||
| Net asset value, end of period (x) |
$9.70 | $9.58 | ||||||||||
| Total return (%) (r)(s)(t)(x) |
4.77 | 0.08 | (n) | |||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) |
0.58 | 0.60 | (a) | |||||||||
| Expenses after expense reductions (f) |
0.52 | 0.52 | (a) | |||||||||
| Net investment income (loss) |
3.81 | 3.53 | (a) | |||||||||
| Portfolio turnover |
14 | 15 | ||||||||||
| Net assets at end of period (000 omitted) |
$4,341 | $2,605 | ||||||||||
| (a) | Annualized. |
| (c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (i) | For Class I and Class R6, the period is from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
| (n) | Not annualized. |
| (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
97
Table of Contents
Financial Highlights – continued
MFS TENNESSEE MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years (or life of a particular share class, if shorter). 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.
| Year ended | ||||||||||||||||||||
| Class A | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.23 | $10.36 | $10.70 | $10.67 | $10.27 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.36 | $0.35 | $0.36 | (c) | $0.34 | $0.33 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.09 | (0.15 | ) | (0.36 | ) | 0.01 | 0.38 | |||||||||||||
| Total from investment operations |
$0.45 | $0.20 | $0.00 | (w) | $0.35 | $0.71 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.32 | ) | $(0.33 | ) | $(0.34 | ) | $(0.32 | ) | $(0.31 | ) | ||||||||||
| Net asset value, end of period (x) |
$10.36 | $10.23 | $10.36 | $10.70 | $10.67 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.52 | 1.92 | (0.01 | )(c) | 3.32 | 7.01 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
0.98 | 0.98 | 0.96 | (c) | 0.95 | 0.94 | ||||||||||||||
| Expenses after expense reductions (f) |
0.88 | 0.88 | 0.87 | (c) | 0.90 | 0.94 | ||||||||||||||
| Net investment income (loss) |
3.50 | 3.32 | 3.42 | (c) | 3.17 | 3.12 | ||||||||||||||
| Portfolio turnover |
13 | 18 | 11 | 14 | 18 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$70,930 | $84,131 | $90,616 | $105,722 | $102,473 | |||||||||||||||
| Year ended | ||||||||||||||||||||
| Class B | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.22 | $10.35 | $10.69 | $10.66 | $10.26 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.28 | $0.27 | $0.28 | (c) | $0.26 | $0.25 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.10 | (0.15 | ) | (0.36 | ) | 0.01 | 0.38 | |||||||||||||
| Total from investment operations |
$0.38 | $0.12 | $(0.08 | ) | $0.27 | $0.63 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.25 | ) | $(0.25 | ) | $(0.26 | ) | $(0.24 | ) | $(0.23 | ) | ||||||||||
| Net asset value, end of period (x) |
$10.35 | $10.22 | $10.35 | $10.69 | $10.66 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
3.75 | 1.16 | (0.76 | )(c) | 2.56 | 6.21 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
1.73 | 1.73 | 1.71 | (c) | 1.70 | 1.69 | ||||||||||||||
| Expenses after expense reductions (f) |
1.63 | 1.63 | 1.62 | (c) | 1.65 | 1.69 | ||||||||||||||
| Net investment income (loss) |
2.73 | 2.57 | 2.67 | (c) | 2.42 | 2.37 | ||||||||||||||
| Portfolio turnover |
13 | 18 | 11 | 14 | 18 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$677 | $1,230 | $1,418 | $1,827 | $1,902 | |||||||||||||||
See Notes to Financial Statements
98
Table of Contents
Financial Highlights – continued
MFS TENNESSEE MUNICIPAL BOND FUND – continued
| Year ended | ||||||||||||
| Class I | 3/31/19 | 3/31/18 | 3/31/17 (i) | |||||||||
| Net asset value, beginning of period |
$9.56 | $9.68 | $10.00 | |||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) |
$0.36 | $0.35 | $0.36 | (c) | ||||||||
| Net realized and unrealized gain (loss) |
0.08 | (0.14 | ) | (0.34 | ) | |||||||
| Total from investment operations |
$0.44 | $0.21 | $0.02 | |||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.32 | ) | $(0.33 | ) | $(0.34 | ) | ||||||
| Net asset value, end of period (x) |
$9.68 | $9.56 | $9.68 | |||||||||
| Total return (%) (r)(s)(t)(x) |
4.75 | 2.18 | 0.19 | (c) | ||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) |
0.73 | 0.73 | 0.74 | (c) | ||||||||
| Expenses after expense reductions (f) |
0.63 | 0.63 | 0.62 | (c) | ||||||||
| Net investment income (loss) |
3.77 | 3.56 | 3.68 | (c) | ||||||||
| Portfolio turnover |
13 | 18 | 11 | |||||||||
| Net assets at end of period (000 omitted) |
$23,310 | $17,243 | $18,416 | |||||||||
| Year ended | ||||||||||||
| Class R6 | 3/31/19 | 3/31/18 (i) | ||||||||||
| Net asset value, beginning of period |
$9.55 | $9.79 | ||||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) |
$0.36 | $0.23 | ||||||||||
| Net realized and unrealized gain (loss) |
0.09 | (0.25 | ) | |||||||||
| Total from investment operations |
$0.45 | $(0.02 | ) | |||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.33 | ) | $(0.22 | ) | ||||||||
| Net asset value, end of period (x) |
$9.67 | $9.55 | ||||||||||
| Total return (%) (r)(s)(t)(x) |
4.84 | (0.19 | )(n) | |||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) |
0.65 | 0.69 | (a) | |||||||||
| Expenses after expense reductions (f) |
0.55 | 0.55 | (a) | |||||||||
| Net investment income (loss) |
3.83 | 3.65 | (a) | |||||||||
| Portfolio turnover |
13 | 18 | ||||||||||
| Net assets at end of period (000 omitted) |
$3,081 | $3,024 | ||||||||||
| (a) | Annualized. |
| (c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (i) | For Class I and Class R6, the period is from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
| (n) | Not annualized. |
| (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. |
| (w) | Per share amount was less than $0.01. |
| (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
99
Table of Contents
Financial Highlights – continued
MFS VIRGINIA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years (or life of a particular share class, if shorter). 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.
| Year ended | ||||||||||||||||||||
| Class A | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.98 | $11.10 | $11.51 | $11.44 | $11.05 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) | $0.37 | $0.38 | $0.41 | (c) | $0.40 | $0.39 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.13 | (0.14 | ) | (0.42 | ) | 0.04 | 0.37 | |||||||||||||
| Total from investment operations |
$0.50 | $0.24 | $(0.01 | ) | $0.44 | $0.76 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.34 | ) | $(0.36 | ) | $(0.40 | ) | $(0.37 | ) | $(0.37 | ) | ||||||||||
| Net asset value, end of period (x) |
$11.14 | $10.98 | $11.10 | $11.51 | $11.44 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.67 | 2.13 | (0.11 | )(c) | 3.95 | 6.97 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
0.92 | 0.92 | 0.91 | (c) | 0.89 | 0.88 | ||||||||||||||
| Expenses after expense reductions (f) |
0.84 | 0.83 | 0.83 | (c) | 0.84 | 0.88 | ||||||||||||||
| Net investment income (loss) |
3.37 | 3.36 | 3.60 | (c) | 3.52 | 3.48 | ||||||||||||||
| Portfolio turnover |
15 | 15 | 13 | 9 | 20 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$226,366 | $221,291 | $228,297 | $251,733 | $255,205 | |||||||||||||||
| Supplemental Ratios (%): | ||||||||||||||||||||
| Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) |
0.81 | 0.81 | 0.81 | (c) | 0.83 | 0.86 | ||||||||||||||
| Year ended | ||||||||||||||||||||
| Class B | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.98 | $11.10 | $11.50 | $11.44 | $11.05 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.29 | $0.29 | $0.32 | (c) | $0.31 | $0.31 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.12 | (0.14 | ) | (0.41 | ) | 0.04 | 0.37 | |||||||||||||
| Total from investment operations |
$0.41 | $0.15 | $(0.09 | ) | $0.35 | $0.68 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.26 | ) | $(0.27 | ) | $(0.31 | ) | $(0.29 | ) | $(0.29 | ) | ||||||||||
| Net asset value, end of period (x) |
$11.13 | $10.98 | $11.10 | $11.50 | $11.44 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
3.80 | 1.37 | (0.77 | )(c) | 3.09 | 6.18 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
1.67 | 1.67 | 1.66 | (c) | 1.65 | 1.63 | ||||||||||||||
| Expenses after expense reductions (f) |
1.60 | 1.59 | 1.58 | (c) | 1.60 | 1.63 | ||||||||||||||
| Net investment income (loss) |
2.62 | 2.61 | 2.82 | (c) | 2.76 | 2.73 | ||||||||||||||
| Portfolio turnover |
15 | 15 | 13 | 9 | 20 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$755 | $914 | $1,118 | $1,501 | $1,921 | |||||||||||||||
| Supplemental Ratios (%): | ||||||||||||||||||||
| Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) |
1.56 | 1.56 | 1.56 | (c) | 1.58 | 1.62 | ||||||||||||||
See Notes to Financial Statements
100
Table of Contents
Financial Highlights – continued
MFS VIRGINIA MUNICIPAL BOND FUND – continued
| Year ended | ||||||||||||||||||||
| Class C | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.98 | $11.10 | $11.51 | $11.44 | $11.05 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.29 | $0.29 | $0.32 | (c) | $0.31 | $0.31 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.13 | (0.14 | ) | (0.42 | ) | 0.05 | 0.37 | |||||||||||||
| Total from investment operations |
$0.42 | $0.15 | $(0.10 | ) | $0.36 | $0.68 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.26 | ) | $(0.27 | ) | $(0.31 | ) | $(0.29 | ) | $(0.29 | ) | ||||||||||
| Net asset value, end of period (x) |
$11.14 | $10.98 | $11.10 | $11.51 | $11.44 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
3.89 | 1.36 | (0.86 | )(c) | 3.18 | 6.17 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
1.67 | 1.67 | 1.66 | (c) | 1.65 | 1.63 | ||||||||||||||
| Expenses after expense reductions (f) |
1.60 | 1.59 | 1.58 | (c) | 1.59 | 1.63 | ||||||||||||||
| Net investment income (loss) |
2.62 | 2.61 | 2.85 | (c) | 2.77 | 2.73 | ||||||||||||||
| Portfolio turnover |
15 | 15 | 13 | 9 | 20 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$17,665 | $24,116 | $26,034 | $24,861 | $25,108 | |||||||||||||||
| Supplemental Ratios (%): | ||||||||||||||||||||
| Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) |
1.56 | 1.56 | 1.56(c | ) | 1.58 | 1.62 | ||||||||||||||
| Year ended | ||||||||||||||||||||
| Class I | 3/31/19 | 3/31/18 | 3/31/17 (i) | |||||||||||||||||
| Net asset value, beginning of period |
$9.55 | $9.65 | $10.00 | |||||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.34 | $0.35 | $0.38 | (c) | ||||||||||||||||
| Net realized and unrealized gain (loss) |
0.11 | (0.12 | ) | (0.36 | ) | |||||||||||||||
| Total from investment operations |
$0.45 | $0.23 | $0.02 | |||||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.32 | ) | $(0.33 | ) | $(0.37 | ) | ||||||||||||||
| Net asset value, end of period (x) |
$9.68 | $9.55 | $9.65 | |||||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.82 | 2.42 | 0.21 | (c) | ||||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
0.67 | 0.67 | 0.67 | (c) | ||||||||||||||||
| Expenses after expense reductions (f) |
0.60 | 0.59 | 0.58 | (c) | ||||||||||||||||
| Net investment income (loss) |
3.61 | 3.60 | 3.83 | (c) | ||||||||||||||||
| Portfolio turnover |
15 | 15 | 13 | |||||||||||||||||
| Net assets at end of period (000 omitted) |
$57,139 | $43,832 | $39,856 | |||||||||||||||||
| Supplemental Ratios (%): | ||||||||||||||||||||
| Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) |
0.56 | 0.56 | 0.56 | (c) | ||||||||||||||||
See Notes to Financial Statements
101
Table of Contents
Financial Highlights – continued
MFS VIRGINIA MUNICIPAL BOND FUND – continued
| Year ended | ||||||||
| Class R6 | 3/31/19 | 3/31/18 (i) | ||||||
| Net asset value, beginning of period |
$9.55 | $9.77 | ||||||
| Income (loss) from investment operations | ||||||||
| Net investment income (loss) (d) |
$0.35 | $0.23 | ||||||
| Net realized and unrealized gain (loss) |
0.12 | (0.22 | ) | |||||
| Total from investment operations |
$0.47 | $0.01 | ||||||
| Less distributions declared to shareholders | ||||||||
| From net investment income |
$(0.33 | ) | $(0.23 | ) | ||||
| Net asset value, end of period (x) |
$9.69 | $9.55 | ||||||
| Total return (%) (r)(s)(t)(x) |
5.01 | 0.05 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||
| Expenses before expense reductions (f) |
0.59 | 0.60 | (a) | |||||
| Expenses after expense reductions (f) |
0.51 | 0.51 | (a) | |||||
| Net investment income (loss) |
3.69 | 3.61 | (a) | |||||
| Portfolio turnover |
15 | 15 | ||||||
| Net assets at end of period (000 omitted) |
$10,153 | $6,196 | ||||||
| Supplemental Ratios (%): | ||||||||
| Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) |
0.48 | 0.48 | (a) | |||||
| (a) | Annualized. |
| (c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (i) | For Class I and Class R6, the period is from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
| (l) | Interest expense and fees include payments made to the holders of the floating rate certificates. |
| (n) | Not annualized. |
| (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
102
Table of Contents
Financial Highlights – continued
MFS WEST VIRGINIA MUNICIPAL BOND FUND
The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years (or life of a particular share class, if shorter). 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.
| Year ended | ||||||||||||||||||||
| Class A | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.89 | $11.01 | $11.37 | $11.36 | $10.93 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.38 | $0.37 | $0.38 | (c) | $0.38 | $0.38 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.06 | (0.13 | ) | (0.38 | ) | (0.02 | ) | 0.40 | ||||||||||||
| Total from investment operations |
$0.44 | $0.24 | $0.00 | (w) | $0.36 | $0.78 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.35 | ) | $(0.36 | ) | $(0.36 | ) | $(0.35 | ) | $(0.35 | ) | ||||||||||
| Net asset value, end of period (x) |
$10.98 | $10.89 | $11.01 | $11.37 | $11.36 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.09 | 2.15 | 0.02 | (c) | 3.23 | 7.18 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
0.98 | 0.97 | 0.95 | (c) | 0.94 | 0.93 | ||||||||||||||
| Expenses after expense reductions (f) |
0.86 | 0.86 | 0.86 | (c) | 0.88 | 0.90 | ||||||||||||||
| Net investment income (loss) |
3.53 | 3.34 | 3.38 | (c) | 3.34 | 3.34 | ||||||||||||||
| Portfolio turnover |
17 | 11 | 18 | 9 | 22 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$98,510 | $101,013 | $111,179 | $121,455 | $121,680 | |||||||||||||||
| Year ended | ||||||||||||||||||||
| Class B | 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | |||||||||||||||
| Net asset value, beginning of period |
$10.88 | $11.00 | $11.37 | $11.35 | $10.93 | |||||||||||||||
| Income (loss) from investment operations | ||||||||||||||||||||
| Net investment income (loss) (d) |
$0.30 | $0.29 | $0.30 | (c) | $0.29 | $0.29 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.06 | (0.14 | ) | (0.39 | ) | (0.01 | ) | 0.39 | ||||||||||||
| Total from investment operations |
$0.36 | $0.15 | $(0.09 | ) | $0.28 | $0.68 | ||||||||||||||
| Less distributions declared to shareholders | ||||||||||||||||||||
| From net investment income |
$(0.26 | ) | $(0.27 | ) | $(0.28 | ) | $(0.26 | ) | $(0.26 | ) | ||||||||||
| Net asset value, end of period (x) |
$10.98 | $10.88 | $11.00 | $11.37 | $11.35 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
3.40 | 1.38 | (0.81 | )(c) | 2.56 | 6.29 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||||||||||
| Expenses before expense reductions (f) |
1.73 | 1.72 | 1.70 | (c) | 1.69 | 1.68 | ||||||||||||||
| Expenses after expense reductions (f) |
1.62 | 1.62 | 1.62 | (c) | 1.63 | 1.65 | ||||||||||||||
| Net investment income (loss) |
2.77 | 2.58 | 2.63 | (c) | 2.59 | 2.59 | ||||||||||||||
| Portfolio turnover |
17 | 11 | 18 | 9 | 22 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$494 | $613 | $866 | $1,062 | $1,209 | |||||||||||||||
See Notes to Financial Statements
103
Table of Contents
Financial Highlights – continued
MFS WEST VIRGINIA MUNICIPAL BOND FUND – continued
| Year ended | ||||||||||||
| Class I | 3/31/19 | 3/31/18 | 3/31/17 (i) | |||||||||
| Net asset value, beginning of period |
$9.58 | $9.69 | $10.00 | |||||||||
| Income (loss) from investment operations | ||||||||||||
| Net investment income (loss) (d) |
$0.36 | $0.35 | $0.35 | (c) | ||||||||
| Net realized and unrealized gain (loss) |
0.06 | (0.12 | ) | (0.31 | ) | |||||||
| Total from investment operations |
$0.42 | $0.23 | $0.04 | |||||||||
| Less distributions declared to shareholders | ||||||||||||
| From net investment income |
$(0.33 | ) | $(0.34 | ) | $(0.35 | ) | ||||||
| Net asset value, end of period (x) |
$9.67 | $9.58 | $9.69 | |||||||||
| Total return (%) (r)(s)(t)(x) |
4.44 | 2.33 | 0.37 | (c) | ||||||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||||||
| Expenses before expense reductions (f) |
0.73 | 0.72 | 0.72 | (c) | ||||||||
| Expenses after expense reductions (f) |
0.62 | 0.62 | 0.61 | (c) | ||||||||
| Net investment income (loss) |
3.75 | 3.58 | 3.63 | (c) | ||||||||
| Portfolio turnover |
17 | 11 | 18 | |||||||||
| Net assets at end of period (000 omitted) |
$6,248 | $7,038 | $4,820 | |||||||||
| Year ended | ||||||||
| Class R6 | 3/31/19 | 3/31/18 (i) | ||||||
| Net asset value, beginning of period |
$9.58 | $9.79 | ||||||
| Income (loss) from investment operations | ||||||||
| Net investment income (loss) (d) |
$0.37 | $0.24 | ||||||
| Net realized and unrealized gain (loss) |
0.04 | (0.22 | ) | |||||
| Total from investment operations |
$0.41 | $0.02 | ||||||
| Less distributions declared to shareholders | ||||||||
| From net investment income |
$(0.33 | ) | $(0.23 | ) | ||||
| Net asset value, end of period (x) |
$9.66 | $9.58 | ||||||
| Total return (%) (r)(s)(t)(x) |
4.42 | 0.18 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: | ||||||||
| Expenses before expense reductions (f) |
0.64 | 0.65 | (a) | |||||
| Expenses after expense reductions (f) |
0.53 | 0.54 | (a) | |||||
| Net investment income (loss) |
3.87 | 3.67 | (a) | |||||
| Portfolio turnover |
17 | 11 | ||||||
| Net assets at end of period (000 omitted) |
$246 | $130 | ||||||
| (a) | Annualized. |
| (c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (i) | For Class I and Class R6, the period is from the class inception, April 1, 2016 (Class I) and August 1, 2017 (Class R6), through the stated period end. |
| (n) | Not annualized. |
| (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. |
| (w) | Per share amount was less than $0.01. |
| (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
104
Table of Contents
| (1) | Business and Organization |
MFS Mississippi Municipal Bond Fund (Mississippi Fund), MFS New York Municipal Bond Fund (New York Fund), MFS North Carolina Municipal Bond Fund (North Carolina Fund), MFS Pennsylvania Municipal Bond Fund (Pennsylvania Fund), MFS South Carolina Municipal Bond Fund (South Carolina Fund), MFS Tennessee Municipal Bond Fund (Tennessee Fund), MFS Virginia Municipal Bond Fund (Virginia Fund), and MFS West Virginia Municipal Bond Fund (West Virginia Fund) are each a diversified series of MFS Municipal Series Trust (with the exception of Mississippi Fund and West Virginia Fund which are non-diversified) which 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.
Each 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 each fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. Each fund invests primarily in municipal instruments, which generally trade in the over-the-counter market. The value of municipal instruments can be affected by changes in their actual or perceived credit quality. The credit quality of, and the ability to pay principal and interest when due by, an issuer of a municipal instrument depends on the credit quality of the entity supporting the municipal instrument, how essential any services supported by the municipal instrument are, the sufficiency of any revenues or taxes that support the municipal instrument, and/or the willingness or ability of the appropriate government entity to approve any appropriations necessary to support the municipal instrument. Municipal instruments may be supported by insurance which typically guarantees the timely payment of all principal and interest due on the underlying municipal instrument. The value of a municipal instrument can be volatile and significantly affected by adverse tax changes or court rulings, legislative or political changes, changes in specific or general market and economic conditions in the region where the instrument is issued, and the financial condition of municipal issuers and of municipal instrument insurers of which there are a limited number. Also, because many municipal instruments are issued to finance similar projects, conditions in certain industries can significantly affect the funds and the overall municipal market. If the Internal Revenue Service determines an issuer of a municipal instrument has not complied with the applicable tax requirements, interest from the security could become taxable, the security could decline in value, and distributions made by the funds could be taxable to shareholders.
In March 2017, the FASB issued Accounting Standards Update 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20) – Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). For entities that hold callable debt securities at a premium, ASU 2017-08 requires that the premium be amortized to the earliest call date. ASU 2017-08 will be effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Management has evaluated the potential impacts of ASU 2017-08 and believes that adoption of ASU 2017-08 will not have a material effect on each fund’s overall financial position or its overall results of operations.
Balance Sheet Offsetting – Each 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 Statements of Assets and Liabilities across transactions between each fund and the applicable counterparty. Each 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 each fund, have been included in each fund’s Significant Accounting Policies note under the captions for each of the fund’s in-scope financial instruments and transactions.
Investment Valuations – 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. 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. 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. 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, and other market data.
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Table of Contents
Notes to Financial Statements – continued
The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of each fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under each fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of each fund’s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. 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 each 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 each fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that each fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which each fund determines its net asset value per share.
Various inputs are used in determining the value of each 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. Each fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments, such as futures contracts. The following is a summary of the levels used as of March 31, 2019 in valuing each fund’s assets or liabilities:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Mississippi Fund |
||||||||||||||||
| Financial Instruments | ||||||||||||||||
| Municipal Bonds | $— | $88,842,144 | $— | $88,842,144 | ||||||||||||
| Mutual Funds | 697,666 | — | — | 697,666 | ||||||||||||
| Total | $697,666 | $88,842,144 | $— | $89,539,810 | ||||||||||||
| New York Fund |
||||||||||||||||
| Financial Instruments | ||||||||||||||||
| Municipal Bonds | $— | $239,296,474 | $— | $239,296,474 | ||||||||||||
| Mutual Funds | 2,766,824 | — | — | 2,766,824 | ||||||||||||
| Total | $2,766,824 | $239,296,474 | $— | $242,063,298 | ||||||||||||
| Other Financial Instruments | ||||||||||||||||
| Futures Contracts – Liabilities | $(60,059 | ) | $— | $— | $(60,059 | ) | ||||||||||
| North Carolina Fund |
||||||||||||||||
| Financial Instruments | ||||||||||||||||
| Municipal Bonds | $— | $394,797,205 | $— | $394,797,205 | ||||||||||||
| Mutual Funds | 8,877,352 | — | — | 8,877,352 | ||||||||||||
| Total | $8,877,352 | $394,797,205 | $— | $403,674,557 | ||||||||||||
| Other Financial Instruments | ||||||||||||||||
| Futures Contracts – Liabilities | $(251,497 | ) | $— | $— | $(251,497 | ) | ||||||||||
| Pennsylvania Fund |
||||||||||||||||
| Financial Instruments | ||||||||||||||||
| Municipal Bonds | $— | $136,792,448 | $— | $136,792,448 | ||||||||||||
| Mutual Funds | 2,730,549 | — | — | 2,730,549 | ||||||||||||
| Total | $2,730,549 | $136,792,448 | $— | $139,522,997 | ||||||||||||
| Other Financial Instruments | ||||||||||||||||
| Futures Contracts – Liabilities | $(78,827 | ) | $— | $— | $(78,827 | ) | ||||||||||
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Notes to Financial Statements – continued
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| South Carolina Fund |
||||||||||||||||
| Financial Instruments | ||||||||||||||||
| Municipal Bonds | $— | $184,089,251 | $— | $184,089,251 | ||||||||||||
| Mutual Funds | 5,275,936 | — | — | 5,275,936 | ||||||||||||
| Total | $5,275,936 | $184,089,251 | $— | $189,365,187 | ||||||||||||
| Other Financial Instruments | ||||||||||||||||
| Futures Contracts – Liabilities | $(116,364 | ) | $— | $— | $(116,364 | ) | ||||||||||
| Tennessee Fund |
||||||||||||||||
| Financial Instruments | ||||||||||||||||
| Municipal Bonds | $— | $96,900,630 | $— | $96,900,630 | ||||||||||||
| Mutual Funds | 940,434 | — | — | 940,434 | ||||||||||||
| Total | $940,434 | $96,900,630 | $— | $97,841,064 | ||||||||||||
| Other Financial Instruments | ||||||||||||||||
| Futures Contracts – Liabilities | $(60,059 | ) | $— | $— | $(60,059 | ) | ||||||||||
| Virginia Fund |
||||||||||||||||
| Financial Instruments | ||||||||||||||||
| Municipal Bonds | $— | $308,358,798 | $— | $308,358,798 | ||||||||||||
| Mutual Funds | 4,084,274 | — | — | 4,084,274 | ||||||||||||
| Total | $4,084,274 | $308,358,798 | $— | $312,443,072 | ||||||||||||
| Other Financial Instruments | ||||||||||||||||
| Futures Contracts – Liabilities | $(195,191 | ) | $— | $— | $(195,191 | ) | ||||||||||
| West Virginia Fund |
||||||||||||||||
| Financial Instruments | ||||||||||||||||
| Municipal Bonds | $— | $103,716,526 | $— | $103,716,526 | ||||||||||||
| Mutual Funds | 518,129 | — | — | 518,129 | ||||||||||||
| Total | $518,129 | $103,716,526 | $— | $104,234,655 | ||||||||||||
For further information regarding security characteristics, see the Portfolio of Investments.
Derivatives – Certain funds use derivatives primarily to increase or decrease exposure to a particular market or segment of the market, or security, to increase or decrease interest rate 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 funds use 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 funds during the period were futures contracts. Depending on the type of derivative, the 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 funds may be unable to promptly close out a futures position in instances where the daily fluctuation in the price for that type of future exceeds the daily limit set by the exchange. The funds’ period end derivatives, as presented in the Portfolio of Investments and the associated Derivative Contract tables, generally are indicative of the volume of its derivative activity during the period.
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 funds at March 31, 2019 as reported in the Statements of Assets and Liabilities:
| Fair Value (a) | ||||||||||
| Fund | Risk | Derivative Contracts | Liability Derivatives | |||||||
| New York Fund | Interest Rate | Interest Rate Futures | $(60,059 | ) | ||||||
| North Carolina Fund | Interest Rate | Interest Rate Futures | (251,497 | ) | ||||||
| Pennsylvania Fund | Interest Rate | Interest Rate Futures | (78,827 | ) | ||||||
| South Carolina Fund | Interest Rate | Interest Rate Futures | (116,364 | ) | ||||||
| Tennessee Fund | Interest Rate | Interest Rate Futures | (60,059 | ) | ||||||
| Virginia Fund | Interest Rate | Interest Rate Futures | (195,191 | ) | ||||||
| (a) | Values presented in this table for futures contracts correspond to the values reported in the funds’ Portfolio of Investments. Only the current day net variation margin for futures contracts is separately reported within the funds’ Statements of Assets and Liabilities. |
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The following table presents, by major type of derivative contract, the realized gain (loss) on derivatives held by the funds for the year ended March 31, 2019 as reported in the Statements of Operations:
| Fund | Risk | Futures Contracts | ||
| New York Fund | Interest Rate | $(49,368) | ||
| North Carolina Fund | Interest Rate | (129,946) | ||
| Pennsylvania Fund | Interest Rate | (39,201) | ||
| South Carolina Fund | Interest Rate | (64,150) | ||
| Tennessee Fund | Interest Rate | (17,868) | ||
| Virginia Fund | Interest Rate | (107,289) | ||
The following table presents, by major type of derivative contract, the change in unrealized appreciation or depreciation on derivatives held by the funds for the year ended March 31, 2019 as reported in the Statements of Operations:
| Fund | Risk | Futures Contracts | ||
| New York Fund | Interest Rate | $(60,059) | ||
| North Carolina Fund | Interest Rate | (251,497) | ||
| Pennsylvania Fund | Interest Rate | (78,827) | ||
| South Carolina Fund | Interest Rate | (116,364) | ||
| Tennessee Fund | Interest Rate | (60,059) | ||
| Virginia Fund | Interest Rate | (195,191) | ||
Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain, but not all, uncleared derivatives, each 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 each fund’s credit risk to such counterparty equal to any amounts payable by each 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 collateral 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 each fund’s collateral or margin obligations under derivative contracts, if any, will be reported separately in the Statements 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 funds 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 Statements of Operations.
Futures Contracts – Certain funds entered into futures contracts which may be used to hedge against or obtain broad market exposure, interest rate 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 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.
Inverse Floaters – The Virginia Fund invests in municipal inverse floating rate securities which are structured by the issuer (known as primary market inverse floating rate securities) or by the Virginia Fund utilizing the fund’s municipal bonds which have already been
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issued (known as self-deposited secondary market inverse floating rate securities) to have variable rates of interest which typically move in the opposite direction of short-term interest rates. A self-deposited secondary market inverse floating rate security is created when the Virginia Fund transfers a fixed rate municipal bond to a special purpose trust, and causes the trust to (a) issue floating rate certificates to third parties, in an amount equal to a fraction of the par amount of the deposited bonds (these certificates usually pay tax-exempt interest at short-term interest rates that typically reset weekly; and the certificate holders typically, on seven days notice, have the option to tender their certificates to the trust or another party for redemption at par plus accrued interest), and (b) issue inverse floating rate certificates (sometimes referred to as “inverse floaters”) which are held by the Virginia Fund. Such self-deposited inverse floaters held by the Virginia Fund are accounted for as secured borrowings, with the municipal bonds reflected in the investments of the Virginia Fund and amounts owed to the holders of the floating rate certificates under the provisions of the trust, which amounts are paid solely from the assets of the trust, reflected as liabilities of the Virginia Fund in its Statements of Assets and Liabilities under the caption, “Payable to the holders of the floating rate certificates”. The carrying value of the Virginia Fund’s payable to the holders of the floating rate certificates from trust assets as reported in the Virginia Fund’s Statements of Assets and Liabilities approximates its fair value. The value of the payable to the holders of the floating rate certificates from trust assets as of the reporting date is considered level 2 under the fair value hierarchy disclosure. At March 31, 2019, the Virginia Fund’s payable to the holders of the floating rate certificates from trust assets was $5,008,852 and the weighted average interest rate on the settled floating rate certificates issued by the trust was 1.53%. For the year ended March 31, 2019, the average payable to the holders of the settled floating rate certificates from trust assets was $5,007,679 at a weighted average interest rate of 1.54%. Interest expense and fees relate to interest payments made to the holders of certain floating rate certificates and associated fees, both of which are made from trust assets. Interest expense and fees are recorded as incurred. For the year ended March 31, 2019, interest expense and fees related to self-deposited inverse floaters amounted to $110,130 and are included in “Interest expense and fees” in the Statements of Operations.
Indemnifications – Under each 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 each fund. Additionally, in the normal course of business, each fund enters into agreements with service providers that may contain indemnification clauses. Each fund’s maximum exposure under these agreements is unknown as this would involve future claims that may be made against each fund that have not yet occurred.
Investment Transactions and Income – Investment transactions are recorded on the trade date. 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. Interest payments received in additional securities are recorded on the ex-interest date in an amount equal to the value of the security on such date. 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.
Each fund may receive proceeds from litigation settlements. Any proceeds received from litigation involving portfolio holdings are reflected in the Statements 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 Statements of Operations.
Fees Paid Indirectly – Each fund’s custody fee may be reduced by a credit earned under an arrangement that measures the value of U.S. dollars deposited with the custodian by each fund. The amount of the credit, for the year ended March 31, 2019, is shown as a reduction of total expenses in the Statements of Operations.
Tax Matters and Distributions – Each 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 and tax-exempt income, including realized capital gains. As a result, no provision for federal income tax is required. Each 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 each 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.
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. Distributions in excess of net investment income or net realized gains are temporary overdistributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.
Book/tax differences primarily relate to expiration of capital loss carryforwards, amortization and accretion of debt securities, and derivative transactions, as applicable to each fund.
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The tax character of distributions declared to shareholders for the last two fiscal years is as follows:
| Year ended 3/31/19 | Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund |
||||||||||||||||||||||||
| Ordinary income (including any short-term capital gains) | $28,290 | $362,773 | $43,839 | $48,916 | $31,004 | $700 | $147,719 | $33,726 | ||||||||||||||||||||||||
| Tax-exempt income | 2,838,645 | 7,683,267 | 12,555,731 | 4,456,622 | 5,767,612 | 3,225,038 | 9,279,313 | 3,338,513 | ||||||||||||||||||||||||
| Total distributions | $2,866,935 | $8,046,040 | $12,599,570 | $4,505,538 | $5,798,616 | $3,225,738 | $9,427,032 | $3,372,239 | ||||||||||||||||||||||||
| Year ended 3/31/18 | Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund |
||||||||||||||||||||||||
| Ordinary income (including any short-term capital gains) | $186,742 | $360,000 | $410,990 | $15,000 | $80,000 | $14,600 | $154,131 | $64,099 | ||||||||||||||||||||||||
| Tax-exempt income | 2,718,721 | 7,046,413 | 11,394,596 | 4,528,541 | 5,665,985 | 3,514,123 | 9,366,693 | 3,618,158 | ||||||||||||||||||||||||
| Total distributions | $2,905,463 | $7,406,413 | $11,805,586 | $4,543,541 | $5,745,985 | $3,528,723 | $9,520,824 | $3,682,257 | ||||||||||||||||||||||||
The federal tax cost and the tax basis components of distributable earnings were as follows:
| As of 3/31/19 | Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
||||||||||||
| Cost of investments | $85,260,512 | $231,686,502 | $386,464,067 | $133,007,764 | ||||||||||||
| Gross appreciation | 4,329,728 | 10,630,344 | 17,440,182 | 6,591,985 | ||||||||||||
| Gross depreciation | (50,430 | ) | (313,607 | ) | (481,189 | ) | (155,579 | ) | ||||||||
| Net unrealized appreciation (depreciation) | $4,279,298 | $10,316,737 | $16,958,993 | $6,436,406 | ||||||||||||
| Undistributed ordinary income | 8,988 | 135,521 | 208,130 | 24,859 | ||||||||||||
| Undistributed tax-exempt income | 340,936 | 621,552 | 1,133,931 | 493,260 | ||||||||||||
| Capital loss carryforwards | (3,203,960 | ) | (3,118,832 | ) | (12,796,686 | ) | (3,024,530 | ) | ||||||||
| Other temporary differences | (242,250 | ) | (686,730 | ) | (1,062,769 | ) | (393,015 | ) | ||||||||
| As of 3/31/19 | South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund |
||||||||||||
| Cost of investments | $181,930,288 | $94,111,523 | $295,524,631 | $99,744,370 | ||||||||||||
| Gross appreciation | 7,587,870 | 3,996,393 | 13,633,028 | 4,665,210 | ||||||||||||
| Gross depreciation | (269,335 | ) | (326,911 | ) | (1,918,630 | ) | (174,925 | ) | ||||||||
| Net unrealized appreciation (depreciation) | $7,318,535 | $3,669,482 | $11,714,398 | $4,490,285 | ||||||||||||
| Undistributed ordinary income | 29,407 | 12,487 | 68,504 | 12,403 | ||||||||||||
| Undistributed tax-exempt income | 545,417 | 795,965 | 823,025 | 324,323 | ||||||||||||
| Capital loss carryforwards | (6,297,298 | ) | (3,282,965 | ) | (8,945,077 | ) | (4,641,575 | ) | ||||||||
| Other temporary differences | (495,369 | ) | (275,088 | ) | (822,692 | ) | (296,057 | ) | ||||||||
As of March 31, 2019, each 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:
| Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
South Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund |
|||||||||||||||||||||||||
| Short-Term | $(1,035,405 | ) | $(3,118,832 | ) | $(10,053,385 | ) | $(2,730,637 | ) | $(3,828,321 | ) | $(2,132,178 | ) | $(4,028,388 | ) | $(1,666,689 | ) | ||||||||||||||||
| Long-Term | (2,168,555 | ) | — | (2,743,301 | ) | (293,893 | ) | (2,468,977 | ) | (1,150,787 | ) | (4,916,689 | ) | (2,974,886 | ) | |||||||||||||||||
| Total | $(3,203,960 | ) | $(3,118,832 | ) | $(12,796,686 | ) | $(3,024,530 | ) | $(6,297,298 | ) | $(3,282,965 | ) | $(8,945,077 | ) | $(4,641,575 | ) | ||||||||||||||||
Multiple Classes of Shares of Beneficial Interest – Each fund offers multiple classes of shares, which differ in their respective distribution and service fees. Each fund’s income and common expenses are allocated to shareholders based on the value of settled shares outstanding of each class. Each 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 due to differences in separate class expenses. Class B shares will convert to Class A shares approximately eight years after purchase. Class C shares will convert to Class A shares approximately ten years after purchase. Each fund’s distributions declared to shareholders as reported in the Statements of Changes in Net Assets are presented by class as follows:
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From net investment income
| Mississippi Fund | New York Fund | North Carolina Fund | Pennsylvania Fund | |||||||||||||||||||||||||||||
| Year Ended 3/31/19 |
Year Ended 3/31/18 (i) |
Year Ended 3/31/19 |
Year Ended 3/31/18 (i) |
Year Ended 3/31/19 |
Year Ended 3/31/18 (i) |
Year Ended 3/31/19 |
Year Ended 3/31/18 (i) |
|||||||||||||||||||||||||
| Class A | $2,559,212 | $2,701,194 | $5,132,518 | $4,604,891 | $9,258,094 | $8,722,679 | $3,507,237 | $3,632,060 | ||||||||||||||||||||||||
| Class B | 20,999 | 28,419 | 91,901 | 119,810 | 43,239 | 69,607 | 79,795 | 122,444 | ||||||||||||||||||||||||
| Class C | — | — | 478,514 | 660,221 | 1,030,707 | 1,386,624 | — | — | ||||||||||||||||||||||||
| Class I | 264,522 | 172,289 | 2,281,737 | 2,013,979 | 1,765,747 | 1,558,284 | 748,128 | 781,408 | ||||||||||||||||||||||||
| Class R6 | 22,202 | 3,561 | 61,370 | 7,512 | 501,783 | 68,392 | 170,378 | 7,629 | ||||||||||||||||||||||||
| Total | $2,866,935 | $2,905,463 | $8,046,040 | $7,406,413 | $12,599,570 | $11,805,586 | $4,505,538 | $4,543,541 | ||||||||||||||||||||||||
| South Carolina Fund | Tennessee Fund | Virginia Fund | West Virginia Fund | |||||||||||||||||||||||||||||
| Year Ended 3/31/19 |
Year Ended 3/31/18 (i) |
Year Ended 3/31/19 |
Year Ended 3/31/18 (i) |
Year Ended 3/31/19 |
Year Ended 3/31/18 (i) |
Year Ended 3/31/19 |
Year Ended 3/31/18 (i) |
|||||||||||||||||||||||||
| Class A | $4,830,396 | $5,172,009 | $2,414,781 | $2,820,780 | $7,015,038 | $7,354,843 | $3,119,866 | $3,458,353 | ||||||||||||||||||||||||
| Class B | 52,376 | 73,347 | 22,121 | 32,250 | 19,027 | 25,360 | 13,124 | 17,407 | ||||||||||||||||||||||||
| Class C | — | — | — | — | 448,859 | 626,501 | — | — | ||||||||||||||||||||||||
| Class I | 810,576 | 486,289 | 682,504 | 658,941 | 1,660,352 | 1,483,943 | 234,008 | 204,899 | ||||||||||||||||||||||||
| Class R6 | 105,268 | 14,340 | 106,332 | 16,752 | 283,756 | 30,177 | 5,241 | 1,598 | ||||||||||||||||||||||||
| Total | $5,798,616 | $5,745,985 | $3,225,738 | $3,528,723 | $9,427,032 | $9,520,824 | $3,372,239 | $3,682,257 | ||||||||||||||||||||||||
| (i) | For Class R6, the period is from the class inception, August 1, 2017, through the stated period end. |
| (3) | Transactions with Affiliates |
Investment Adviser – Each fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to each fund. The management fee is computed daily and paid monthly at an annual rate of 0.45% of each fund’s average daily net assets.
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 funds’ Board of Trustees. For the year ended March 31, 2019, these management fee reductions amounted to the following, which are included in the reduction of total expenses in the Statements of Operations:
| Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund | |||||||
| $8,720 | $22,444 | $39,243 | $12,482 | $18,089 | $9,867 | $29,678 | $10,360 | |||||||
The management fee incurred for the year ended March 31, 2019 was equivalent to an annual effective rate of 0.44% of each fund’s average daily net assets.
The investment adviser has agreed in writing to pay a portion of the following funds’ total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, and investment-related expenses (including interest expense and fees associated with investments in inverse floating rate instruments), such that total fund operating expenses do not exceed the following rates annually of these funds’ average daily net assets:
| New York Fund |
North Carolina Fund |
South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund |
|||||||||||||||||||
| Class A | 0.90% | 0.93% | 0.84% | 0.88% | 0.81% | 0.87% | ||||||||||||||||||
| Class B | 1.65% | 1.68% | 1.59% | 1.63% | 1.56% | 1.62% | ||||||||||||||||||
| Class C | 1.65% | 1.68% | N/A | N/A | 1.56% | N/A | ||||||||||||||||||
| Class I | 0.65% | 0.68% | 0.59% | 0.63% | 0.56% | 0.62% | ||||||||||||||||||
| Class R6 | 0.60% | 0.61% | 0.53% | 0.56% | 0.49% | 0.55% | ||||||||||||||||||
These written agreements will continue until modified by the funds’ Board of Trustees, but such agreements will continue at least until July 31, 2019. For the year ended March 31, 2019, the New York Fund and the North Carolina Fund’s actual operating expenses did not exceed the limits described above and therefore, the investment adviser did not pay any portion of each fund’s expenses related to each agreement. For the year ended March 31, 2019, these reductions amounted to the following for the South Carolina Fund, the Tennessee Fund, the Virginia Fund, and the West Virginia Fund and are included in the reduction of total expenses in the Statements of Operations:
| South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund | |||
| $88,417 | $93,982 | $203,399 | $109,661 | |||
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Distributor – MFS Fund Distributors, Inc. (MFD), a wholly-owned subsidiary of MFS, as distributor, received the following amounts for the year ended March 31, 2019, as its portion of the initial sales charge on sales of Class A shares of each fund:
| Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund | |||||||
| $3,194 | $5,525 | $17,520 | $7,935 | $15,271 | $2,094 | $5,323 | $3,055 | |||||||
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.
Each fund’s distribution plan provides that each 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.
Distribution Plan Fee Table:
| Class A | ||||||||||||||||||||
| Distribution Fee Rate (d) |
Service Fee Rate (d) |
Total Distribution Plan (d) |
Annual Effective Rate (e) |
Distribution Fee |
||||||||||||||||
| Mississippi Fund | — | 0.25% | 0.25% | 0.10% | $198,160 | |||||||||||||||
| New York Fund | — | 0.25% | 0.25% | 0.24% | 363,829 | |||||||||||||||
| North Carolina Fund | — | 0.25% | 0.25% | 0.24% | 723,875 | |||||||||||||||
| Pennsylvania Fund | — | 0.25% | 0.25% | 0.10% | 247,206 | |||||||||||||||
| South Carolina Fund | — | 0.25% | 0.25% | 0.25% | 386,452 | |||||||||||||||
| Tennessee Fund | — | 0.25% | 0.25% | 0.25% | 191,150 | |||||||||||||||
| Virginia Fund | — | 0.25% | 0.25% | 0.25% | 561,129 | |||||||||||||||
| West Virginia Fund | — | 0.25% | 0.25% | 0.24% | 244,594 | |||||||||||||||
| Class B | ||||||||||||||||||||
| Distribution Fee Rate (d) |
Service Fee Rate (d) |
Total Distribution Plan (d) |
Annual Effective Rate (e) |
Distribution and Service Fee |
||||||||||||||||
| Mississippi Fund | 0.75% | 0.25% | 1.00% | 0.75% | $8,152 | |||||||||||||||
| New York Fund | 0.75% | 0.25% | 1.00% | 1.00% | 33,060 | |||||||||||||||
| North Carolina Fund | 0.75% | 0.25% | 1.00% | 1.00% | 17,588 | |||||||||||||||
| Pennsylvania Fund | 0.75% | 0.25% | 1.00% | 0.85% | 28,382 | |||||||||||||||
| South Carolina Fund | 0.75% | 0.25% | 1.00% | 1.00% | 22,055 | |||||||||||||||
| Tennessee Fund | 0.75% | 0.25% | 1.00% | 1.00% | 9,194 | |||||||||||||||
| Virginia Fund | 0.75% | 0.25% | 1.00% | 1.00% | 8,005 | |||||||||||||||
| West Virginia Fund | 0.75% | 0.25% | 1.00% | 1.00% | 5,408 | |||||||||||||||
| Class C | ||||||||||||||||||||
| Distribution Fee Rate (d) |
Service Fee Rate (d) |
Total Distribution Plan (d) |
Annual Effective Rate (e) |
Distribution and Service Fee |
||||||||||||||||
| New York Fund | 0.75% | 0.25% | 1.00% | 1.00% | $172,457 | |||||||||||||||
| North Carolina Fund | 0.75% | 0.25% | 1.00% | 1.00% | 420,867 | |||||||||||||||
| Virginia Fund | 0.75% | 0.25% | 1.00% | 1.00% | 189,008 | |||||||||||||||
| Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund |
|||||||||||||||||||||||||
| Total Distribution and Service Fees | $206,312 | $569,346 | $1,162,330 | $275,588 | $408,507 | $200,344 | $758,142 | $250,002 | ||||||||||||||||||||||||
| (d) | In accordance with the distribution plan for certain classes, each 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 March 31, 2019 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 MFD retains the 0.25% service fee except for accounts attributable to MFS or its affiliates’ seed money. For the year ended March 31, 2019, these rebates amounted to the following and are included in the reduction of total expenses in the Statements of Operations: |
| Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund |
|||||||||||||||||||||||||
| Class A | $3,217 | $8,160 | $20,049 | $440 | $6,638 | $856 | $9,974 | $11,013 | ||||||||||||||||||||||||
| Class C | N/A | — | 17 | N/A | N/A | N/A | 5 | N/A | ||||||||||||||||||||||||
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Notes to Financial Statements – continued
| Mississippi Fund: MFD has agreed in writing to reduce the Class A and Class B service fee rates to 0.10% and 0.00%, respectively. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2019. For the year ended March 31, 2019, these reductions amounted to $118,897 and $2,038 for Class A and Class B, respectively, and are included in the reduction of total expenses in the Statements of Operations. |
| Pennsylvania Fund: MFD has agreed in writing to reduce the Class A and Class B service fee rates to 0.10%. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2019. For the year ended March 31, 2019, these reductions amounted to $148,325 and $4,257 for Class A and Class B, respectively, and are included in the reduction of total expenses in the Statements of Operations. |
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 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 March 31, 2019, were as follows:
| CDSC Imposed | Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund |
||||||||||||||||||||||||
| Class A | $907 | $5,516 | $12,901 | $43 | $6,783 | $1,336 | $6,367 | $— | ||||||||||||||||||||||||
| Class B | 1,773 | 6,874 | 1,210 | 1,538 | 202 | 2,167 | 1,017 | 673 | ||||||||||||||||||||||||
| Class C | N/A | 585 | 3,338 | N/A | N/A | N/A | 2,289 | N/A | ||||||||||||||||||||||||
Shareholder Servicing Agent – MFS Service Center, Inc. (MFSC), a wholly-owned subsidiary of MFS, receives a fee from each fund for its services as shareholder servicing agent calculated as a percentage of the average daily net assets of each fund as determined periodically under the supervision of the funds’ Board of Trustees. For the year ended March 31, 2019, each fund paid the following fee, which equated to the following annual percentage of each fund’s average daily net assets:
| Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund |
|||||||||||||||||||||||||
| Expenses paid | $3,542 | $17,194 | $21,446 | $14,341 | $9,829 | $4,114 | $25,159 | $5,421 | ||||||||||||||||||||||||
| Percentage of average daily net assets | 0.0040% | 0.0075% | 0.0054% | 0.0113% | 0.0053% | 0.0041% | 0.0083% | 0.0051% | ||||||||||||||||||||||||
MFSC also receives payment from each 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 March 31, 2019, these out-of-pocket expenses, sub-accounting and other shareholder servicing costs amounted to the following:
| Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund | |||||||
| $61,084 | $153,291 | $309,497 | $94,275 | $124,241 | $80,113 | $251,455 | $94,520 | |||||||
Administrator – MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to each fund. Under an administrative services agreement, each fund reimburses MFS the costs incurred to provide these services. Each fund is charged an annual fixed amount of $17,500 plus a fee based on average daily net assets. The administrative services fee incurred for the year ended March 31, 2019 was equivalent to the following annual effective rates of each fund’s average daily net assets:
| Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund |
|||||||||||||||||||||||||
| Percentage of average daily net assets | 0.0258% | 0.0186% | 0.0166% | 0.0223% | 0.0197% | 0.0245% | 0.0175% | 0.0240% | ||||||||||||||||||||||||
Trustees’ and Officers’ Compensation – Each fund pays compensation to independent Trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee chairpersons. Each fund does not pay compensation directly to Trustees or officers of each fund who are also officers of the investment adviser, all of whom receive remuneration for their services to each fund from MFS. Certain officers and Trustees of each fund are officers or directors of MFS, MFD, and MFSC.
Prior to December 31, 2001, each fund had an unfunded defined benefit plan (“DB plan”) for independent Trustees. As of December 31, 2001, the Board took action to terminate the DB plan with respect to then-current and any future independent Trustees, such that the DB plan covers only certain of those former independent Trustees who retired on or before December 31, 2001. The DB plan resulted in a pension expense for each fund. These amounts are included in “Independent Trustees’ compensation” in the Statements of Operations for the year ended March 31, 2019 and were as follows:
| Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund | |||||||
| $486 | $481 | $844 | $486 | $818 | $484 | $840 | $817 | |||||||
113
Table of Contents
Notes to Financial Statements – continued
The liability for deferred retirement benefits payable to those former independent Trustees under the DB plan amounted to the following at March 31, 2019, and is included in “Payable for independent Trustees’ compensation” in the Statements of Assets and Liabilities:
| Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund | |||||||
| $1,139 | $1,455 | $3,262 | $1,136 | $3,313 | $1,449 | $3,287 | $3,314 | |||||||
Other – These funds and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended March 31, 2019, the fee paid by each fund under this agreement amounted to the following and is included in “Miscellaneous” expense in the Statements of Operations:
| Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund | |||||||
| $144 | $389 | $682 | $209 | $309 | $167 | $508 | $175 | |||||||
MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.
Each 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.
On July 31, 2017, MFS purchased the following shares as an initial investment in the class:
| Fund | Class | Shares | Amount | |||||||||
| Mississippi Fund | Class R6 | 5,123 | $50,000 | |||||||||
| New York Fund | Class R6 | 5,086 | 50,000 | |||||||||
| North Carolina Fund | Class R6 | 5,112 | 50,000 | |||||||||
| Pennsylvania Fund | Class R6 | 5,081 | 50,000 | |||||||||
| South Carolina Fund | Class R6 | 5,107 | 50,000 | |||||||||
| Tennessee Fund | Class R6 | 5,107 | 50,000 | |||||||||
| Virginia Fund | Class R6 | 5,118 | 50,000 | |||||||||
| West Virginia Fund | Class R6 | 5,107 | 50,000 | |||||||||
| (4) | Portfolio Securities |
For the year ended March 31, 2019, purchases and sales of investments, other than short-term obligations, were as follows:
| Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund |
|||||||||||||||||||||||||
| Purchases | $13,962,745 | $47,640,893 | $76,675,845 | $30,195,077 | $27,686,790 | $13,277,315 | $57,078,461 | $17,966,334 | ||||||||||||||||||||||||
| Sales | $14,435,545 | $37,457,640 | $72,574,978 | $19,419,030 | $25,244,326 | $21,064,291 | $46,155,023 | $19,737,507 | ||||||||||||||||||||||||
| (5) | Shares of Beneficial Interest |
Each 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:
| Mississippi Fund | New York Fund | |||||||||||||||||||||||||||||||
| Year ended 3/31/19 |
Year ended 3/31/18 (i) |
Year ended 3/31/19 |
Year ended 3/31/18 (i) |
|||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| Shares sold | ||||||||||||||||||||||||||||||||
| Class A |
545,608 | $5,190,264 | 990,031 | $9,596,384 | 3,275,968 | $35,336,253 | 3,443,760 | $38,075,332 | ||||||||||||||||||||||||
| Class B |
5,519 | 52,598 | 301 | 2,921 | 17,751 | 191,010 | 24,373 | 267,901 | ||||||||||||||||||||||||
| Class C |
— | — | — | — | 267,399 | 2,889,240 | 332,532 | 3,673,972 | ||||||||||||||||||||||||
| Class I |
473,183 | 4,502,400 | 457,460 | 4,414,130 | 1,320,098 | 12,577,410 | 1,129,281 | 11,030,973 | ||||||||||||||||||||||||
| Class R6 |
35,081 | 331,385 | 58,753 | 560,540 | 113,363 | 1,080,551 | 136,803 | 1,315,766 | ||||||||||||||||||||||||
| 1,059,391 | $10,076,647 | 1,506,545 | $14,573,975 | 4,994,579 | $52,074,464 | 5,066,749 | $54,363,944 | |||||||||||||||||||||||||
114
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Notes to Financial Statements – continued
| Mississippi Fund – continued | New York Fund – continued | |||||||||||||||||||||||||||||||
| Year ended 3/31/19 |
Year ended 3/31/18 (i) |
Year ended 3/31/19 |
Year ended 3/31/18 (i) |
|||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
| Class A |
244,649 | $2,324,953 | 252,117 | $2,442,005 | 392,614 | $4,246,243 | 356,873 | $3,933,915 | ||||||||||||||||||||||||
| Class B |
1,642 | 15,621 | 2,266 | 21,986 | 7,340 | 79,179 | 9,124 | 100,371 | ||||||||||||||||||||||||
| Class C |
— | — | — | — | 38,069 | 411,169 | 52,587 | 579,440 | ||||||||||||||||||||||||
| Class I |
25,116 | 238,243 | 16,410 | 158,597 | 224,949 | 2,151,625 | 198,129 | 1,931,750 | ||||||||||||||||||||||||
| Class R6 |
2,339 | 22,202 | 373 | 3,561 | 6,419 | 61,370 | 781 | 7,512 | ||||||||||||||||||||||||
| 273,746 | $2,601,019 | 271,166 | $2,626,149 | 669,391 | $6,949,586 | 617,494 | $6,552,988 | |||||||||||||||||||||||||
| Shares reacquired | ||||||||||||||||||||||||||||||||
| Class A |
(1,238,444 | ) | $(11,763,289 | ) | (1,338,356 | ) | $(12,958,713 | ) | (2,813,771 | ) | $(30,379,241 | ) | (2,006,737 | ) | $(22,113,967 | ) | ||||||||||||||||
| Class B |
(44,553 | ) | (423,104 | ) | (19,280 | ) | (186,907 | ) | (130,055 | ) | (1,401,065 | ) | (127,971 | ) | (1,411,716 | ) | ||||||||||||||||
| Class C |
— | — | — | — | (874,616 | ) | (9,448,349 | ) | (585,288 | ) | (6,459,190 | ) | ||||||||||||||||||||
| Class I |
(284,865 | ) | (2,698,902 | ) | (269,189 | ) | (2,593,493 | ) | (477,721 | ) | (4,555,778 | ) | (576,585 | ) | (5,616,522 | ) | ||||||||||||||||
| Class R6 |
(6,219 | ) | (59,094 | ) | (263 | ) | (2,497 | ) | (57,538 | ) | (546,249 | ) | (2,997 | ) | (28,752 | ) | ||||||||||||||||
| (1,574,081 | ) | $(14,944,389 | ) | (1,627,088 | ) | $(15,741,610 | ) | (4,353,701 | ) | $(46,330,682 | ) | (3,299,578 | ) | $(35,630,147 | ) | |||||||||||||||||
| Net change | ||||||||||||||||||||||||||||||||
| Class A |
(448,187 | ) | $(4,248,072 | ) | (96,208 | ) | $(920,324 | ) | 854,811 | $9,203,255 | 1,793,896 | $19,895,280 | ||||||||||||||||||||
| Class B |
(37,392 | ) | (354,885 | ) | (16,713 | ) | (162,000 | ) | (104,964 | ) | (1,130,876 | ) | (94,474 | ) | (1,043,444 | ) | ||||||||||||||||
| Class C |
— | — | — | — | (569,148 | ) | (6,147,940 | ) | (200,169 | ) | (2,205,778 | ) | ||||||||||||||||||||
| Class I |
213,434 | 2,041,741 | 204,681 | 1,979,234 | 1,067,326 | 10,173,257 | 750,825 | 7,346,201 | ||||||||||||||||||||||||
| Class R6 |
31,201 | 294,493 | 58,863 | 561,604 | 62,244 | 595,672 | 134,587 | 1,294,526 | ||||||||||||||||||||||||
| (240,944 | ) | $(2,266,723 | ) | 150,623 | $1,458,514 | 1,310,269 | $12,693,368 | 2,384,665 | $25,286,785 | |||||||||||||||||||||||
| North Carolina Fund | Pennsylvania Fund | |||||||||||||||||||||||||||||||
| Year ended 3/31/19 |
Year ended 3/31/18 (i) |
Year ended 3/31/19 |
Year ended 3/31/18 (i) |
|||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| Shares sold | ||||||||||||||||||||||||||||||||
| Class A |
7,261,189 | $82,693,501 | 5,358,088 | $62,303,446 | 1,771,061 | $17,891,142 | 1,426,322 | $14,661,913 | ||||||||||||||||||||||||
| Class B |
2,493 | 28,398 | 15,431 | 179,851 | 18,928 | 192,165 | 10,972 | 113,144 | ||||||||||||||||||||||||
| Class C |
489,994 | 5,591,897 | 508,892 | 5,933,896 | — | — | — | — | ||||||||||||||||||||||||
| Class I |
2,775,520 | 26,356,354 | 2,844,852 | 27,587,886 | 1,293,868 | 12,459,198 | 791,763 | 7,756,643 | ||||||||||||||||||||||||
| Class R6 |
850,563 | 8,080,984 | 1,417,034 | 13,576,860 | 1,044,407 | 10,047,765 | 126,332 | 1,221,209 | ||||||||||||||||||||||||
| 11,379,759 | $122,751,134 | 10,144,297 | $109,581,939 | 4,128,264 | $40,590,270 | 2,355,389 | $23,752,909 | |||||||||||||||||||||||||
| Shares issued to shareholders in reinvestment of distributions |
||||||||||||||||||||||||||||||||
| Class A |
748,567 | $8,549,737 | 684,091 | $7,963,645 | 319,198 | $3,227,465 | 325,157 | $3,337,460 | ||||||||||||||||||||||||
| Class B |
3,555 | 40,567 | 5,596 | 65,111 | 7,592 | 76,974 | 11,393 | 117,313 | ||||||||||||||||||||||||
| Class C |
82,267 | 939,237 | 106,761 | 1,242,401 | — | — | — | — | ||||||||||||||||||||||||
| Class I |
157,548 | 1,499,681 | 133,865 | 1,299,057 | 53,760 | 517,724 | 41,804 | 408,636 | ||||||||||||||||||||||||
| Class R6 |
50,784 | 483,519 | 6,841 | 65,458 | 5,131 | 49,427 | 789 | 7,629 | ||||||||||||||||||||||||
| 1,042,721 | $11,512,741 | 937,154 | $10,635,672 | 385,681 | $3,871,590 | 379,143 | $3,871,038 | |||||||||||||||||||||||||
| Shares reacquired | ||||||||||||||||||||||||||||||||
| Class A |
(7,214,292 | ) | $(82,016,720 | ) | (4,057,055 | ) | $(47,192,906 | ) | (1,567,420 | ) | $(15,820,539 | ) | (1,675,613 | ) | $(17,205,519 | ) | ||||||||||||||||
| Class B |
(93,447 | ) | (1,066,180 | ) | (106,650 | ) | (1,241,913 | ) | (136,042 | ) | (1,375,724 | ) | (146,276 | ) | (1,505,168 | ) | ||||||||||||||||
| Class C |
(1,867,146 | ) | (21,304,816 | ) | (978,730 | ) | (11,390,292 | ) | — | — | — | — | ||||||||||||||||||||
| Class I |
(1,564,867 | ) | (14,848,940 | ) | (2,249,465 | ) | (21,664,895 | ) | (1,403,939 | ) | (13,476,827 | ) | (703,150 | ) | (6,856,951 | ) | ||||||||||||||||
| Class R6 |
(607,918 | ) | (5,764,526 | ) | (44,265 | ) | (423,688 | ) | (76,263 | ) | (729,216 | ) | (2,522 | ) | (24,325 | ) | ||||||||||||||||
| (11,347,670 | ) | $(125,001,182 | ) | (7,436,165 | ) | $(81,913,694 | ) | (3,183,664 | ) | $(31,402,306 | ) | (2,527,561 | ) | $(25,591,963 | ) | |||||||||||||||||
115
Table of Contents
Notes to Financial Statements – continued
| North Carolina Fund – continued | Pennsylvania Fund – continued | |||||||||||||||||||||||||||||||
| Year ended 3/31/19 |
Year ended 3/31/18 (i) |
Year ended 3/31/19 |
Year ended 3/31/18 (i) |
|||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| Net change | ||||||||||||||||||||||||||||||||
| Class A |
795,464 | $9,226,518 | 1,985,124 | $23,074,185 | 522,839 | $5,298,068 | 75,866 | $793,854 | ||||||||||||||||||||||||
| Class B |
(87,399 | ) | (997,215 | ) | (85,623 | ) | (996,951 | ) | (109,522 | ) | (1,106,585 | ) | (123,911 | ) | (1,274,711 | ) | ||||||||||||||||
| Class C |
(1,294,885 | ) | (14,773,682 | ) | (363,077 | ) | (4,213,995 | ) | — | — | — | — | ||||||||||||||||||||
| Class I |
1,368,201 | 13,007,095 | 729,252 | 7,222,048 | (56,311 | ) | (499,905 | ) | 130,417 | 1,308,328 | ||||||||||||||||||||||
| Class R6 |
293,429 | 2,799,977 | 1,379,610 | 13,218,630 | 973,275 | 9,367,976 | 124,599 | 1,204,513 | ||||||||||||||||||||||||
| 1,074,810 | $9,262,693 | 3,645,286 | $38,303,917 | 1,330,281 | $13,059,554 | 206,971 | $2,031,984 | |||||||||||||||||||||||||
| South Carolina Fund | Tennessee Fund | |||||||||||||||||||||||||||||||
| Year ended 3/31/19 |
Year ended 3/31/18 (i) |
Year ended 3/31/19 |
Year ended 3/31/18 (i) |
|||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| Shares sold | ||||||||||||||||||||||||||||||||
| Class A |
1,719,921 | $20,279,544 | 1,687,411 | $20,222,014 | 462,110 | $4,713,140 | 778,024 | $8,080,159 | ||||||||||||||||||||||||
| Class B |
255 | 3,013 | 1,548 | 18,678 | 7,072 | 71,857 | — | — | ||||||||||||||||||||||||
| Class I |
1,702,198 | 16,284,807 | 1,615,093 | 15,584,049 | 1,412,957 | 13,431,827 | 819,303 | 7,948,520 | ||||||||||||||||||||||||
| Class R6 |
255,394 | 2,438,833 | 305,463 | 2,927,300 | 107,918 | 1,025,704 | 322,448 | 3,080,602 | ||||||||||||||||||||||||
| 3,677,768 | $39,006,197 | 3,609,515 | $38,752,041 | 1,990,057 | $19,242,528 | 1,919,775 | $19,109,281 | |||||||||||||||||||||||||
| Shares issued to shareholders in reinvestment of distributions | ||||||||||||||||||||||||||||||||
| Class A |
387,494 | $4,570,191 | 408,148 | $4,895,416 | 214,720 | $2,191,612 | 249,842 | $2,596,143 | ||||||||||||||||||||||||
| Class B |
4,408 | 51,955 | 6,035 | 72,371 | 1,965 | 20,028 | 2,904 | 30,150 | ||||||||||||||||||||||||
| Class I |
77,428 | 739,976 | 44,376 | 430,445 | 70,422 | 671,481 | 63,497 | 616,648 | ||||||||||||||||||||||||
| Class R6 |
11,011 | 105,268 | 1,496 | 14,340 | 11,155 | 106,332 | 1,751 | 16,728 | ||||||||||||||||||||||||
| 480,341 | $5,467,390 | 460,055 | $5,412,572 | 298,262 | $2,989,453 | 317,994 | $3,259,669 | |||||||||||||||||||||||||
| Shares reacquired | ||||||||||||||||||||||||||||||||
| Class A |
(2,508,703 | ) | $(29,554,039 | ) | (2,900,164 | ) | $(34,684,810 | ) | (2,052,103 | ) | $(20,871,310 | ) | (1,554,847 | ) | $(16,123,989 | ) | ||||||||||||||||
| Class B |
(71,279 | ) | (837,585 | ) | (94,983 | ) | (1,140,163 | ) | (63,868 | ) | (650,432 | ) | (19,647 | ) | (203,940 | ) | ||||||||||||||||
| Class I |
(1,165,616 | ) | (11,129,599 | ) | (626,416 | ) | (6,047,182 | ) | (879,035 | ) | (8,362,904 | ) | (982,404 | ) | (9,491,960 | ) | ||||||||||||||||
| Class R6 |
(90,825 | ) | (867,764 | ) | (35,136 | ) | (336,227 | ) | (117,076 | ) | (1,108,305 | ) | (7,689 | ) | (73,379 | ) | ||||||||||||||||
| (3,836,423 | ) | $(42,388,987 | ) | (3,656,699 | ) | $(42,208,382 | ) | (3,112,082 | ) | $(30,992,951 | ) | (2,564,587 | ) | $(25,893,268 | ) | |||||||||||||||||
| Net change | ||||||||||||||||||||||||||||||||
| Class A |
(401,288 | ) | $(4,704,304 | ) | (804,605 | ) | $(9,567,380 | ) | (1,375,273 | ) | $(13,966,558 | ) | (526,981 | ) | $(5,447,691 | ) | ||||||||||||||||
| Class B |
(66,616 | ) | (782,617 | ) | (87,400 | ) | (1,049,114 | ) | (54,831 | ) | (558,547 | ) | (16,743 | ) | (173,786 | ) | ||||||||||||||||
| Class I |
614,010 | 5,895,184 | 1,033,053 | 9,967,312 | 604,344 | 5,740,404 | (99,604 | ) | (926,792 | ) | ||||||||||||||||||||||
| Class R6 |
175,580 | 1,676,337 | 271,823 | 2,605,413 | 1,997 | 23,731 | 316,510 | 3,023,951 | ||||||||||||||||||||||||
| 321,686 | $2,084,600 | 412,871 | $1,956,231 | (823,763 | ) | $(8,760,970 | ) | (326,818 | ) | $(3,524,318 | ) | |||||||||||||||||||||
| Virginia Fund | West Virginia Fund | |||||||||||||||||||||||||||||||
| Year ended 3/31/19 |
Year ended 3/31/18 (i) |
Year ended 3/31/19 |
Year ended 3/31/18 (i) |
|||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| Shares sold | ||||||||||||||||||||||||||||||||
| Class A |
3,271,999 | $35,765,836 | 2,534,439 | $28,253,355 | 413,719 | $4,470,771 | 232,888 | $2,567,141 | ||||||||||||||||||||||||
| Class B |
402 | 4,383 | 7,233 | 80,962 | 489 | 5,327 | 51 | 563 | ||||||||||||||||||||||||
| Class C |
190,412 | 2,082,951 | 321,400 | 3,582,768 | — | — | — | — | ||||||||||||||||||||||||
| Class I |
3,157,924 | 30,014,524 | 2,142,468 | 20,691,262 | 283,316 | 2,706,452 | 465,463 | 4,528,274 | ||||||||||||||||||||||||
| Class R6 |
636,159 | 6,047,513 | 657,186 | 6,276,018 | 14,480 | 137,894 | 13,408 | 129,428 | ||||||||||||||||||||||||
| 7,256,896 | $73,915,207 | 5,662,726 | $58,884,365 | 712,004 | $7,320,444 | 711,810 | $7,225,406 | |||||||||||||||||||||||||
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Notes to Financial Statements – continued
| Virginia Fund – continued | West Virginia Fund – continued | |||||||||||||||||||||||||||||||
| Year ended 3/31/19 |
Year ended 3/31/18 (i) |
Year ended 3/31/19 |
Year ended 3/31/18 (i) |
|||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
| Shares issued to shareholders in reinvestment of distributions |
|
|||||||||||||||||||||||||||||||
| Class A |
566,761 | $6,210,296 | 587,507 | $6,546,750 | 274,241 | $2,972,867 | 298,719 | $3,296,888 | ||||||||||||||||||||||||
| Class B |
1,597 | 17,496 | 2,131 | 23,743 | 1,181 | 12,797 | 1,534 | 16,935 | ||||||||||||||||||||||||
| Class C |
37,095 | 406,380 | 51,724 | 576,263 | — | — | — | — | ||||||||||||||||||||||||
| Class I |
155,514 | 1,481,342 | 135,096 | 1,308,073 | 23,410 | 223,368 | 20,216 | 196,229 | ||||||||||||||||||||||||
| Class R6 |
29,762 | 283,726 | 3,165 | 30,177 | 548 | 5,235 | 165 | 1,598 | ||||||||||||||||||||||||
| 790,729 | $8,399,240 | 779,623 | $8,485,006 | 299,380 | $3,214,267 | 320,634 | $3,511,650 | |||||||||||||||||||||||||
| Shares reacquired | ||||||||||||||||||||||||||||||||
| Class A |
(3,668,679 | ) | $(40,097,012 | ) | (3,539,345 | ) | $(39,352,273 | ) | (994,867 | ) | $(10,776,457 | ) | (1,354,129 | ) | $(14,968,332 | ) | ||||||||||||||||
| Class B |
(17,442 | ) | (191,260 | ) | (26,914 | ) | (301,559 | ) | (13,020 | ) | (141,096 | ) | (23,882 | ) | (264,329 | ) | ||||||||||||||||
| Class C |
(837,521 | ) | (9,171,726 | ) | (522,719 | ) | (5,808,479 | ) | — | — | — | — | ||||||||||||||||||||
| Class I |
(2,004,384 | ) | (19,022,513 | ) | (1,816,962 | ) | (17,466,213 | ) | (394,764 | ) | (3,740,093 | ) | (248,699 | ) | (2,423,274 | ) | ||||||||||||||||
| Class R6 |
(266,778 | ) | (2,531,768 | ) | (11,899 | ) | (113,463 | ) | (3,150 | ) | (30,034 | ) | (24 | ) | (225 | ) | ||||||||||||||||
| (6,794,804 | ) | $(71,014,279 | ) | (5,917,839 | ) | $(63,041,987 | ) | (1,405,801 | ) | $(14,687,680 | ) | (1,626,734 | ) | $(17,656,160 | ) | |||||||||||||||||
| Net change | ||||||||||||||||||||||||||||||||
| Class A |
170,081 | $1,879,120 | (417,399 | ) | $(4,552,168 | ) | (306,907 | ) | $(3,332,819 | ) | (822,522 | ) | $(9,104,303 | ) | ||||||||||||||||||
| Class B |
(15,443 | ) | (169,381 | ) | (17,550 | ) | (196,854 | ) | (11,350 | ) | (122,972 | ) | (22,297 | ) | (246,831 | ) | ||||||||||||||||
| Class C |
(610,014 | ) | (6,682,395 | ) | (149,595 | ) | (1,649,448 | ) | — | — | — | — | ||||||||||||||||||||
| Class I |
1,309,054 | 12,473,353 | 460,602 | 4,533,122 | (88,038 | ) | (810,273 | ) | 236,980 | 2,301,229 | ||||||||||||||||||||||
| Class R6 |
399,143 | 3,799,471 | 648,452 | 6,192,732 | 11,878 | 113,095 | 13,549 | 130,801 | ||||||||||||||||||||||||
| 1,252,821 | $11,300,168 | 524,510 | $4,327,384 | (394,417 | ) | $(4,152,969 | ) | (594,290 | ) | $(6,919,104 | ) | |||||||||||||||||||||
| (i) | For Class R6, the period is from the class inception, August 1, 2017, through the stated period end. |
Class T shares were not publicly available for sale during the period. Please see each fund’s prospectus for details.
Effective June 1, 2019, purchases of each fund’s Class B shares are closed to new and existing investors subject to certain exceptions. Please see each fund’s prospectus for details.
| (6) | Line of Credit |
Each fund and certain other funds managed by MFS participate in a $1.25 billion unsecured committed line of credit, subject to a $1 billion sublimit, 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 one month LIBOR, the Federal Funds Effective Rate and the Overnight Bank Funding Rate, 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. In addition, each 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 March 31, 2019, each fund’s commitment fee and interest expense were as follows and are included in “Miscellaneous” expense in the Statements of Operations, with the exception of the Virginia Fund, whose commitment fee and interest expense are included in “Interest expense and fees” in the Statements of Operations:
| Mississippi Fund |
New York Fund |
North Carolina Fund |
Pennsylvania Fund |
South Carolina Fund |
Tennessee Fund |
Virginia Fund |
West Virginia Fund |
|||||||||||||||||||||||||
| Commitment Fee |
$509 | $1,307 | $2,341 | $715 | $997 | $596 | $1,649 | $581 | ||||||||||||||||||||||||
| Interest Expense |
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
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Notes to Financial Statements – continued
| (7) | Investments in Affiliated Issuers |
An affiliated issuer of a fund 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, each fund assumes the MFS Institutional Money Market Portfolio to be an affiliated issuer. Each fund’s transactions in the MFS Institutional Money Market Portfolio for the year ended March 31, 2019, are as follows:
| Underlying Affiliated Fund - MFS Institutional Money Market Portfolio | ||||||||||||||||
| Beginning Shares/Par Amount |
Acquisitions Shares/Par Amount |
Dispositions Shares/Par Amount |
Ending Shares/Par Amount |
|||||||||||||
| Mississippi Fund |
179,653 | 18,447,112 | (17,929,099) | 697,666 | ||||||||||||
| New York Fund |
420,742 | 58,068,149 | (55,722,067) | 2,766,824 | ||||||||||||
| North Carolina Fund |
5,282,886 | 103,068,215 | (99,473,749) | 8,877,352 | ||||||||||||
| Pennsylvania Fund |
148,995 | 34,365,549 | (31,783,995) | 2,730,549 | ||||||||||||
| South Carolina Fund |
3,568,149 | 39,744,158 | (38,036,371) | 5,275,936 | ||||||||||||
| Tennessee Fund |
314,777 | 21,060,453 | (20,434,796) | 940,434 | ||||||||||||
| Virginia Fund |
2,016,605 | 70,672,457 | (68,604,788) | 4,084,274 | ||||||||||||
| West Virginia Fund |
158,218 | 26,138,210 | (25,778,299) | 518,129 | ||||||||||||
| Realized Gain (Loss) |
Change in Unrealized Appreciation/ Depreciation |
Capital Gain Distributions |
Dividend Income |
Ending Value |
||||||||||||||||
| Mississippi Fund |
$(59) | $63 | $— | $13,893 | $697,666 | |||||||||||||||
| New York Fund |
748 | 260 | — | 59,757 | 2,766,824 | |||||||||||||||
| North Carolina Fund |
(470) | 169 | — | 100,973 | 8,877,352 | |||||||||||||||
| Pennsylvania Fund |
(536) | 201 | — | 41,258 | 2,730,549 | |||||||||||||||
| South Carolina Fund |
(20) | 47 | — | 36,215 | 5,275,936 | |||||||||||||||
| Tennessee Fund |
35 | 15 | — | 16,676 | 940,434 | |||||||||||||||
| Virginia Fund |
(195) | (58) | — | 66,161 | 4,084,274 | |||||||||||||||
| West Virginia Fund |
219 | 51 | — | 18,807 | 518,129 | |||||||||||||||
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of MFS Municipal Series Trust and the Shareholders of MFS Mississippi Municipal Bond Fund, MFS New York Municipal Bond Fund, MFS North Carolina Municipal Bond Fund, MFS Pennsylvania Municipal Bond Fund, MFS South Carolina Municipal Bond Fund, MFS Tennessee Municipal Bond Fund, MFS Virginia Municipal Bond Fund and MFS West Virginia Municipal Bond Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of MFS Mississippi Municipal Bond Fund, MFS New York Municipal Bond Fund, MFS North Carolina Municipal Bond Fund, MFS Pennsylvania Municipal Bond Fund, MFS South Carolina Municipal Bond Fund, MFS Tennessee Municipal Bond Fund, MFS Virginia Municipal Bond Fund and MFS West Virginia Municipal Bond Fund (the “Funds”), including the portfolios of investments, as of March 31, 2019, the related statements 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. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2019, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights 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 Funds 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 audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their 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 Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, 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 and financial highlights. 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 and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
May 17, 2019
We have served as the auditor of one or more of the MFS investment companies since 1924.
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TRUSTEES AND OFFICERS — IDENTIFICATION AND BACKGROUND
The Trustees and Officers of the Trust, as of May 1, 2019, 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 the Past Five Years |
Other Directorships During the Past Five Years (j) | |||||
| INTERESTED TRUSTEES | ||||||||||
| Robert J. Manning (k) (age 55) |
Trustee | February 2004 | 135 | Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015); Co-Chief Executive Officer (2015-2016) |
N/A | |||||
| Robin A. Stelmach (k) (age 57) |
Trustee | January 2014 | 135 | Massachusetts Financial Services Company, Vice Chair (since January
2017); Chief Operating Officer and Executive Vice President |
N/A | |||||
| INDEPENDENT TRUSTEES | ||||||||||
| John P. Kavanaugh (age 64) |
Trustee and Chair of Trustees | January 2009 | 135 | Private investor | N/A | |||||
| Steven E. Buller (age 67) |
Trustee | February 2014 | 135 | Financial Accounting Standards Advisory Council, Chairman (2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014) | N/A | |||||
| John A. Caroselli (age 64) |
Trustee | March 2017 | 135 | JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015) |
N/A | |||||
| Maureen R. Goldfarb (age 64) |
Trustee | January 2009 | 135 | Private investor | N/A | |||||
| Michael Hegarty (age 74) |
Trustee | December 2004 | 135 | Private investor | Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015) | |||||
| Peter D. Jones (age 63) |
Trustee | January 2019 | 135 | Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015) | N/A | |||||
| James W. Kilman, Jr. (age 58) |
Trustee | January 2019 | 135 | KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking, Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016) | Alpha-En Corporation, Director (since 2016) | |||||
| Clarence Otis, Jr. (age 63) |
Trustee | March 2017 | 135 | Darden Restaurants, Inc., Chief Executive Officer (until 2014) | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015) | |||||
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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 the Past Five Years |
Other Directorships During the Past Five Years (j) | |||||
| Maryanne L. Roepke (age 63) |
Trustee | May 2014 | 135 | American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014) | N/A | |||||
| Laurie J. Thomsen (age 61) |
Trustee | March 2005 | 135 | Private investor | The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015) | |||||
| 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 45) |
Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
| Kino Clark (k) (age 50) |
Assistant Treasurer | January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
| John W. Clark, Jr. (k) (age 52) |
Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017) | ||||
| Thomas H. Connors (k) (age 59) |
Assistant Secretary and Assistant Clerk | September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
| Ethan D. Corey (k) (age 55) |
Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
| David L. DiLorenzo (k) (age 50) |
President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
| Heidi W. Hardin (k) (age 51) |
Secretary and Clerk | April 2017 | 135 | Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015) | ||||
| Brian E. Langenfeld (k) (age 46) |
Assistant Secretary and Assistant Clerk | June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
| Amanda S. Mooradian (k) (age 40) |
Assistant Secretary and Assistant Clerk | September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Counsel | ||||
| Susan A. Pereira (k) (age 48) |
Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
| Kasey L. Phillips (k) (age 48) |
Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
| Matthew A. Stowe (k) (age 44) |
Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
| Frank L. Tarantino (age 75) |
Independent Senior Officer | June 2004 | 135 | Tarantino LLC (provider of compliance services), Principal | ||||
| Martin J. Wolin (k) (age 51) |
Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015) | ||||
| James O. Yost (k) (age 58) |
Treasurer | September 1990 | 135 | 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. For the period from December 15, 2004 until February 22, 2005, Mr. Manning served as Advisory Trustee. 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”). |
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Trustees and Officers – continued
| (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. |
Each Trustee (other than Messrs. Jones and Kilman) 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. 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, Hegarty, 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.
The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling 1-800-225-2606.
| Investment Adviser Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618 Distributor MFS Fund Distributors, Inc. 111 Huntington Avenue Boston, MA 02199-7618 Portfolio Manager(s) Michael Dawson |
Custodian JPMorgan Chase Bank, NA 4 Metrotech Center New York, NY 11245
Independent Registered Public Accounting Firm Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 |
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PROXY VOTING POLICIES AND INFORMATION
MFS votes proxies on behalf of the funds 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 each 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
Each fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q or as an exhibit to its reports on Form N-PORT (for first and third fiscal quarters ending March 31, 2019 or after). Each fund’s Form N-Q or Form N-PORT reports are available on the SEC’s website at http://www.sec.gov. A shareholder can obtain the portfolio holdings report for the first and third quarters of each fund’s fiscal year at mfs.com/openendfunds by choosing the fund’s name and then selecting the “Resources” tab and clicking on “Prospectus and Reports”.
From time to time, MFS may post important information about each fund or the MFS funds on the MFS web site (mfs.com). This information is available at https://www.mfs.com/en-us/what-we-do/announcements.html or at mfs.com/openendfunds by choosing the fund’s name.
INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS
Each fund has entered into contractual arrangements with an investment adviser, administrator, distributor, shareholder servicing agent, 529 program manager (if applicable), 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 funds will notify shareholders of amounts for use in preparing 2019 income tax forms in January 2020. The following information is provided pursuant to provisions of the Internal Revenue Code.
Of the dividends paid from net investment income during the fiscal year, the following percentages were designated as exempt interest dividends for federal income tax purposes. If each fund has earned income on private activity bonds, a portion of the dividends paid may be considered a tax preference item for purposes of computing a shareholder’s alternative minimum tax.
| Exempt Interest Dividends |
||||
| Mississippi Fund | 99.01% | |||
| New York Fund | 95.49% | |||
| North Carolina Fund | 99.65% | |||
| Pennsylvania Fund | 98.91% | |||
| South Carolina Fund | 99.47% | |||
| Tennessee Fund | 99.98% | |||
| Virginia Fund | 98.43% | |||
| West Virginia Fund | 99.00% | |||
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rev. 3/16
|
|
WHAT DOES MFS DO WITH YOUR
|
| ||
| 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. | |
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| 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. | ||
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Annual Report
March 31, 2019
MFS® Municipal Income Fund
Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the complete reports will be made available on the fund’s Web site (funds.mfs.com), and you will be notified by mail each time a report is posted and provided with a Web site link to access the report.
If you are already signed up to receive shareholder reports by email, you will not be affected by this change and you need not take any action. You may sign up to receive shareholder reports and other communications from the fund by email by contacting your financial intermediary (such as a broker-dealer or bank) or, if you hold your shares directly with the fund, by calling 1-800-225-2606 or by logging on to MFS Access at mfs.com.
Beginning on January 1, 2019, you may elect to receive all future reports in paper free of charge. Contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the fund, you can call 1-800-225-2606 or send an email request to orderliterature@mfs.com to let the fund know that you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with the MFS fund complex if you invest directly.
LMB-ANN
Table of Contents
MFS® Municipal Income Fund
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
Table of Contents
LETTER FROM THE EXECUTIVE CHAIRMAN
Dear Shareholders:
Markets experienced a bout of volatility in late 2018 as a result of higher interest rates, international trade friction, and geopolitical uncertainty surrounding issues such as
Brexit. But concern over those issues dissipated in the early months of 2019 due to a more dovish posture by the U.S. Federal Reserve and other global central banks, progress toward a trade pact between the United States and China, and a consensus forming in the British Parliament against a no-deal Brexit, though exactly how the United Kingdom will withdraw from the European Union remains highly uncertain. U.S. equities have continued to outperform their global peers due in part to fiscal stimulus undertaken in late 2017 and early 2018, which contributed to the continuation of relatively healthy levels of U.S. economic output against a backdrop of slowing global growth. Inflation remains
largely subdued globally, though tight labor markets are keeping investors on the lookout for its potential reappearance. Rising incomes in many developed and emerging markets are supportive of gains in consumption, though a challenging environment for global trade has hindered manufacturing in most regions. If the U.S. and China reach a comprehensive trade agreement, activity could rebound later this year.
As a global investment manager with nearly a century of expertise, MFS® firmly believes active risk management offers downside mitigation and may help improve investment outcomes. We built our active investment platform with this belief in mind. Our long-term perspective influences nearly every aspect of our business, ensuring that our investment decisions align with the investing time horizons of our clients.
Respectfully,
Robert J. Manning
Executive Chairman
MFS Investment Management
May 15, 2019
The opinions expressed in this letter are subject to change and may not be relied upon for investment advice. No forecasts can be guaranteed.
1
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| (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. 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, which have not been rated by any rating agency. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
2
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Portfolio Composition – continued
| (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. |
| (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 device (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. |
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.
Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions and/or the leverage created through the issuance of self-deposited inverse floaters and may be negative.
Percentages are based on net assets as of March 31, 2019.
The portfolio is actively managed and current holdings may be different.
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Summary of Results
For the twelve months ended March 31, 2019, Class A shares of the MFS Municipal Income Fund (“fund”) provided a total return of 5.14%, at net asset value. This compares with a return of 5.38% for the fund’s benchmark, the Bloomberg Barclays Municipal Bond Index.
Market Environment
Led by weakness in China and Europe, the global economy decelerated during the reporting period, as business and investor sentiment was undermined by growing trade frictions. Slower growth, along with tighter financial conditions, contributed to an uptick in market volatility late in the period. Equity valuations fell, and credit spreads widened, fueled in part by interest rate concerns. In December, the US Federal Reserve (Fed) lifted rates for the fourth time in 2018 and indicated its intention to hike several more times, while allowing its balance sheet to run off at its predetermined pace.
Slowing global growth, rising trade tensions, abating inflationary pressures and increasing market volatility prompted the Fed to reverse course at the end of the period and indicate that its policy was on hold. The Fed also indicated that it would maintain a larger balance sheet than it had previously indicated. These dovish shifts helped equity valuations rebound, reduced volatility and narrowed credit spreads. Central banks globally tilted more dovish as well, with China lowering reserve requirements, The Bank of Canada and Bank of England holding rates steady and the European Central Bank acknowledging that it may not be able to hike rates in the fall of 2019, as it had earlier projected, while extending a refinancing facility for eurozone banks.
Emerging markets experienced considerable volatility during the period as tighter global financial conditions exposed structural weakness in some countries. Those pressures were somewhat relieved at the end of the period as the Fed adopted its more dovish posture and hopes grew for a trade deal between the US and China.
From a geopolitical perspective, the lack of consensus in the United Kingdom on the best path toward a rapidly approaching Brexit, a fractious Eurosceptic Italian coalition government, large-scale protests in France over stagnant wages and news that Germany’s Angela Merkel will not seek another term as chancellor were sources of uncertainty in Europe. In emerging markets, new Brazilian president Jair Bolsonaro took office, with markets generally encouraged by his market-friendly agenda. In contrast, markets were nervous about the less market-friendly approach of Mexico’s new president Andrés Manuel López Obrador. For much of the period, the contentious US-China trade relationship was a drag on global sentiment. Signs of progress toward a resolution helped steady markets late in the period while China’s economy showed tentative signs of stabilizing.
Over the reporting period, municipal bonds provided solid positive returns with the lower-quality and longer-duration segments performing especially well. Reduced primary market supply generally supported municipal bonds during the period, as supply was impacted in 2018, consequent of issuances pulled forward into 2017 before, and in anticipation of, proposed tax law changes. Further limiting issuance in calendar year 2018 and into 2019, were tax law changes which eliminated pre-refundings, where the
4
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Management Review – continued
proceeds had been used to advance refund previously-issued debt. Also of note, Puerto Rican bonds recovered strongly, boosted by ongoing progress in restructuring negotiations.
Fundamentals in municipals were generally stable for the period, due to stable-to-improving tax revenue.
Factors Affecting Performance
Relative to the Bloomberg Barclays Municipal Bond Index, the fund’s security selection detracted from relative performance. Specifically, from a sector perspective, bond selection within the health care sector and, to a lesser extent, the housing sector, weakened relative returns. From a quality perspective, an overweight to the strong performing “BBB” segment of the market was offset by weak security selection.
In contrast, the fund’s duration (d) contributed to relative performance. Yields generally declined during the reporting period, across all maturities, which benefited relative returns as the fund had a greater average exposure to changes in interest rates. Additionally, the fund’s yield curve (y) positioning, notably a greater exposure to the ten-year part of the yield curve, further benefited relative results. Further contributing to performance was exposure to insured issuers domiciled in Puerto Rico, and both insured and uninsured issuers domiciled in Illinois.
Respectfully,
| Portfolio Manager(s) | ||
| Jason Kosty and Geoffrey Schechter | ||
| (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. |
| (r) | Bonds rated “BBB”, “Baa”, or higher are considered investment grade; bonds rated “BB”, “Ba”, or below are considered non-investment grade. The sources for bond quality ratings are Moody’s Investors Service, Standard & Poor’s and Fitch, Inc. and are applied using 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. Ratings are shown in the S&P and Fitch scale (e.g., AAA). For securities which are not rated by any of the three agencies, the security is considered Not Rated. |
| (y) | A yield curve graphically depicts the yields of different maturity bonds of the same credit quality and type; a normal yield curve is upward sloping, with short-term rates lower than long-term rates. |
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
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PERFORMANCE SUMMARY THROUGH 3/31/19
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
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Performance Summary – continued
Total Returns through 3/31/19
Average annual without sales charge
| Share Class | Class Inception Date | 1-yr | 5-yr | 10-yr | Life (t) | |||||||||
| A | 9/07/93 | 5.14% | 4.21% | 5.38% | N/A | |||||||||
| B | 12/29/86 | 4.23% | 3.43% | 4.58% | N/A | |||||||||
| C | 1/03/94 | 4.35% | 3.43% | 4.59% | N/A | |||||||||
| I | 8/01/11 | 5.27% | 4.47% | N/A | 4.78% | |||||||||
| R6 | 8/01/17 | 5.48% | N/A | N/A | 3.71% | |||||||||
| A1 | 6/25/07 | 5.40% | 4.47% | 5.65% | N/A | |||||||||
| B1 | 6/25/07 | 4.49% | 3.68% | 4.85% | N/A | |||||||||
| Comparative benchmark(s) | ||||||||||||||
| Bloomberg Barclays Municipal Bond Index (f) | 5.38% | 3.73% | 4.72% | N/A | ||||||||||
| Average annual with sales charge | ||||||||||||||
| A With Initial Sales Charge (4.25%) |
0.67% | 3.31% | 4.93% | N/A | ||||||||||
| B With CDSC (Declining over six years from 4% to 0%) (v) |
0.23% | 3.08% | 4.58% | N/A | ||||||||||
| C With CDSC (1% for 12 months) (v) |
3.35% | 3.43% | 4.59% | N/A | ||||||||||
| A1 With Initial Sales Charge (4.25%) |
0.92% | 3.57% | 5.19% | N/A | ||||||||||
| B1 With CDSC (Declining over six years from 4% to 0%) (v) |
0.49% | 3.33% | 4.85% | N/A | ||||||||||
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have a sales charge.
| (f) | Source: FactSet Research Systems Inc. |
| (t) | For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.) |
| (v) | Assuming redemption at the end of the applicable period. |
Benchmark Definition(s)
Bloomberg Barclays Municipal Bond Index – a market capitalization-weighted index that measures the performance of the tax-exempt bond market.
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. Life returns are presented where the share class has less than 10 years of performance history and represent the average annual total return from the class inception date to the stated period end date. As the fund’s share classes may have different inception dates, the life returns may represent different time
7
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Performance Summary – continued
periods and may not be comparable. As a result, no comparative benchmark performance information is provided for life periods.
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.
A portion of income may be subject to state, federal, and/or alternative minimum tax. Capital gains, if any, are subject to a capital gains tax.
From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower.
8
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Fund expenses borne by the shareholders during the period, October 1, 2018 through March 31, 2019
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 October 1, 2018 through March 31, 2019.
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
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Expense Table – continued
| Share Class |
Annualized Expense Ratio |
Beginning Account Value 10/01/18 |
Ending Account Value 3/31/19 |
Expenses Paid During Period (p) 10/01/18-3/31/19 |
||||||||||||||
| A | Actual | 0.76% | $1,000.00 | $1,040.56 | $3.87 | |||||||||||||
| Hypothetical (h) | 0.76% | $1,000.00 | $1,021.14 | $3.83 | ||||||||||||||
| B | Actual | 1.51% | $1,000.00 | $1,035.48 | $7.66 | |||||||||||||
| Hypothetical (h) | 1.51% | $1,000.00 | $1,017.40 | $7.59 | ||||||||||||||
| C | Actual | 1.52% | $1,000.00 | $1,036.63 | $7.72 | |||||||||||||
| Hypothetical (h) | 1.52% | $1,000.00 | $1,017.35 | $7.64 | ||||||||||||||
| I | Actual | 0.52% | $1,000.00 | $1,040.62 | $2.65 | |||||||||||||
| Hypothetical (h) | 0.52% | $1,000.00 | $1,022.34 | $2.62 | ||||||||||||||
| R6 | Actual | 0.44% | $1,000.00 | $1,042.27 | $2.24 | |||||||||||||
| Hypothetical (h) | 0.44% | $1,000.00 | $1,022.74 | $2.22 | ||||||||||||||
| A1 | Actual | 0.52% | $1,000.00 | $1,041.84 | $2.65 | |||||||||||||
| Hypothetical (h) | 0.52% | $1,000.00 | $1,022.34 | $2.62 | ||||||||||||||
| B1 | Actual | 1.27% | $1,000.00 | $1,036.77 | $6.45 | |||||||||||||
| Hypothetical (h) | 1.27% | $1,000.00 | $1,018.60 | $6.39 | ||||||||||||||
| (h) | 5% class return per year before expenses. |
| (p) | “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher. |
Notes to Expense Table
Expense ratios include 0.04% of investment related expenses from self-deposited inverse floaters (See Note 2 of the Notes to Financial Statements) that are outside of the expense limitation arrangement (See Note 3 of the Notes to Financial Statements).
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3/31/19
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by jurisdiction.
| Municipal Bonds - 97.5% | ||||||||
| Issuer | Shares/Par | Value ($) | ||||||
| Alabama - 1.4% | ||||||||
| Birmingham, AL, Special Care Facilities Financing Authority Rev. (Methodist Home for the Aging), 5.25%, 6/01/2025 | $ | 930,000 | $ | 1,032,551 | ||||
| Black Belt Energy Gas District, AL, Gas Prepay Rev., “A”, 4%, 12/01/2048 (Put Date 12/01/2023) | 6,570,000 | 6,997,050 | ||||||
| Black Belt Energy Gas District, AL, Gas Prepay Rev., “B-1”, FLR, 2.568% (67% of LIBOR - 1mo. + 0.9%), 12/01/2048 (Put Date 12/01/2023) | 20,175,000 | 19,747,693 | ||||||
| DCH Health Care Authority, AL, Health Care Facilities Rev., 5%, 6/01/2033 | 785,000 | 886,485 | ||||||
| Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/2026 | 1,175,000 | 915,349 | ||||||
| Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/2029 | 1,655,000 | 1,054,665 | ||||||
| Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/2034 | 2,370,000 | 1,057,352 | ||||||
| Jefferson County, AL, Sewer Rev. Warrants, Capital Appreciation, Senior Lien, “B”, AGM, 0%, 10/01/2035 | 4,495,000 | 1,875,539 | ||||||
| Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/2021 | 310,000 | 330,649 | ||||||
| Jefferson County, AL, Sewer Rev. Warrants, Subordinate Lien, “D”, 5%, 10/01/2023 | 455,000 | 505,469 | ||||||
| Lower, AL, Gas District Project Rev., “A”, 5%, 9/01/2046 | 2,805,000 | 3,480,360 | ||||||
| Mobile, AL, General Obligation Warrants, “A”, 5%, 2/15/2030 | 3,130,000 | 3,747,862 | ||||||
| Selma, AL, Industrial Development Board Rev., Gulf Opportunity Zone (International Paper Co.), “A”, 5.8%, 5/01/2034 | 3,565,000 | 3,704,320 | ||||||
| University of South Alabama, Facilities Rev., “A”, BAM, 5%, 4/01/2044 | 4,070,000 | 4,694,379 | ||||||
| University of South Alabama, Facilities Rev., “A”, BAM, 5%, 4/01/2049 | 2,480,000 | 2,837,318 | ||||||
|
|
|
|||||||
| $ | 52,867,041 | |||||||
| Arizona - 1.2% | ||||||||
| Arizona Industrial Development Authority Education Rev. (Academies of Math & Science), “A”, 5%, 7/01/2038 | $ | 370,000 | $ | 418,596 | ||||
| Arizona Industrial Development Authority Education Rev. (Academies of Math & Science), “A”, 5%, 7/01/2048 | 990,000 | 1,105,285 | ||||||
| Arizona Industrial Development Authority Education Rev. (Academies of Math & Science), “A”, 5%, 7/01/2052 | 1,235,000 | 1,374,345 | ||||||
| Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “A”, 5.125%, 7/01/2037 | 1,000,000 | 1,055,300 | ||||||
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Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Arizona - continued | ||||||||
| Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “A”, 5.25%, 7/01/2047 | $ | 750,000 | $ | 789,142 | ||||
| Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “D”, 5%, 7/01/2037 | 95,000 | 100,043 | ||||||
| Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “D”, 5%, 7/01/2047 | 160,000 | 166,570 | ||||||
| Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “D”, 5%, 7/01/2051 | 425,000 | 439,476 | ||||||
| Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “F”, 5%, 7/01/2037 | 1,000,000 | 1,130,980 | ||||||
| Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “F”, 5%, 7/01/2047 | 2,350,000 | 2,621,636 | ||||||
| Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “F”, 5%, 7/01/2052 | 1,870,000 | 2,070,576 | ||||||
| Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “G”, 5%, 7/01/2037 | 165,000 | 173,758 | ||||||
| Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “G”, 5%, 7/01/2047 | 165,000 | 171,775 | ||||||
| Arizona Industrial Development Authority Education Rev. (Basis Schools Projects), “G”, 5%, 7/01/2051 | 310,000 | 320,559 | ||||||
| Arizona Industrial Development Authority, Senior Living Rev. (Great Lakes Senior Living Facilities LLC, First Tier), “A”, 5%, 1/01/2043 | 620,000 | 677,121 | ||||||
| Arizona Industrial Development Authority, Senior Living Rev. (Great Lakes Senior Living Facilities LLC, First Tier), “A”, 5%, 1/01/2054 | 1,305,000 | 1,387,633 | ||||||
| La Paz County, AZ, Industrial Development Authority Education Facility Lease Rev. (Charter School Solutions-Harmony Public Schools Project), “A”, 5%, 2/15/2038 | 675,000 | 736,708 | ||||||
| La Paz County, AZ, Industrial Development Authority Education Facility Lease Rev. (Charter School Solutions-Harmony Public Schools Project), “A”, 5%, 2/15/2048 | 465,000 | 501,912 | ||||||
| Maricopa County, AZ, Industrial Development Authority Rev. (Banner Health), “A”, 5%, 1/01/2038 | 3,000,000 | 3,478,980 | ||||||
| Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Basis Schools Projects), “A”, 5%, 7/01/2035 | 470,000 | 492,020 | ||||||
| Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Basis Schools Projects), “A”, 5%, 7/01/2035 | 140,000 | 146,559 | ||||||
| Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Basis Schools Projects), “A”, 5%, 7/01/2045 | 570,000 | 589,095 | ||||||
| Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Basis Schools Projects), “A”, 5%, 7/01/2046 | 340,000 | 351,203 | ||||||
| Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Great Hearts Academies Project), “A”, 5%, 7/01/2036 | 700,000 | 760,473 | ||||||
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Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Arizona - continued | ||||||||
| Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Great Hearts Academies Project), “A”, 5%, 7/01/2041 | $ | 560,000 | $ | 601,860 | ||||
| Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Great Hearts Academies Project), “A”, 5%, 7/01/2046 | 895,000 | 958,285 | ||||||
| Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Legacy Traditional Schools Project), 5%, 7/01/2035 | 840,000 | 869,534 | ||||||
| Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Legacy Traditional Schools Project), 5%, 7/01/2045 | 925,000 | 949,364 | ||||||
| Phoenix, AZ, Industrial Development Authority Education Facility Rev. (Legacy Traditional Schools Project), 5%, 7/01/2046 | 610,000 | 629,020 | ||||||
| Phoenix, AZ, Industrial Development Authority Student Housing Refunding Rev. (Downtown Phoenix Student Housing, LLC-Arizona State University Project), “A”, 5%, 7/01/2030 | 150,000 | 174,425 | ||||||
| Phoenix, AZ, Industrial Development Authority Student Housing Refunding Rev. (Downtown Phoenix Student Housing, LLC-Arizona State University Project), “A”, 5%, 7/01/2031 | 375,000 | 432,135 | ||||||
| Phoenix, AZ, Industrial Development Authority Student Housing Refunding Rev. (Downtown Phoenix Student Housing, LLC-Arizona State University Project), “A”, 5%, 7/01/2033 | 150,000 | 171,189 | ||||||
| Phoenix, AZ, Industrial Development Authority Student Housing Refunding Rev. (Downtown Phoenix Student Housing, LLC-Arizona State University Project), “A”, 5%, 7/01/2037 | 500,000 | 562,950 | ||||||
| Phoenix, AZ, Industrial Development Authority Student Housing Refunding Rev. (Downtown Phoenix Student Housing, LLC-Arizona State University Project), “A”, 5%, 7/01/2042 | 605,000 | 673,438 | ||||||
| Pima County, AZ, Industrial Development Authority Education Facility Rev. (American Leadership Academy Project), 4.75%, 6/15/2037 | 1,075,000 | 1,091,189 | ||||||
| Pima County, AZ, Industrial Development Authority Education Facility Rev. (American Leadership Academy Project), 5%, 6/15/2047 | 1,020,000 | 1,036,208 | ||||||
| Pima County, AZ, Industrial Development Authority Education Facility Rev. (American Leadership Academy Project), 5%, 6/15/2052 | 550,000 | 557,914 | ||||||
| Salt River, AZ, Agricultural Improvement & Power District, “A”, 5%, 1/01/2038 | 8,000,000 | 9,430,320 | ||||||
| Salt Verde Financial Corp., AZ, Senior Gas Rev., 5%, 12/01/2037 | 4,000,000 | 5,000,480 | ||||||
|
|
|
|||||||
| $ | 44,198,056 | |||||||
| Arkansas - 0.2% | ||||||||
| Arkansas Development Finance Authority Hospital Rev. (Washington Regional Medical Center), 5%, 2/01/2038 | $ | 1,665,000 | $ | 1,916,715 | ||||
| Arkansas Development Finance Authority Hospital Rev. (Washington Regional Medical Center), “A”, 5%, 2/01/2035 | 435,000 | 487,600 | ||||||
13
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Arkansas - continued | ||||||||
| Arkansas Development Finance Authority, Charter School Capital Improvement Rev. (LISA Academy Project), 4%, 7/01/2028 | $ | 215,000 | $ | 221,944 | ||||
| Arkansas Development Finance Authority, Charter School Capital Improvement Rev. (LISA Academy Project), 4.5%, 7/01/2033 | 435,000 | 447,676 | ||||||
| Arkansas Development Finance Authority, Charter School Capital Improvement Rev. (LISA Academy Project), 4.5%, 7/01/2039 | 45,000 | 44,878 | ||||||
| Arkansas Development Finance Authority, Tobacco Settlement Rev. (Cancer Research Center Project), Capital Appreciation, AAC, 0%, 7/01/2046 | 4,995,000 | 1,683,715 | ||||||
| Pulaski County, AR, Public Facilities Board, Healthcare Rev. (Baptist Health), 5%, 12/01/2042 | 1,520,000 | 1,671,240 | ||||||
|
|
|
|||||||
| $ | 6,473,768 | |||||||
| California - 9.1% | ||||||||
| Alameda, CA, Corridor Transportation Authority Senior Lien Rev., “A”, AGM, 5%, 10/01/2028 | $ | 985,000 | $ | 1,124,052 | ||||
| California Community College Financing Authority Lease Rev. (West Valley Mission Community College), “C”, 5%, 6/01/2025 | 3,960,000 | 4,768,394 | ||||||
| California Community College Financing Authority Lease Rev. (West Valley Mission Community College), “C”, 5%, 6/01/2026 | 4,145,000 | 5,080,361 | ||||||
| California Educational Facilities Authority Rev. (Chapman University), 5%, 4/01/2031 | 1,550,000 | 1,652,192 | ||||||
| California Educational Facilities Authority Rev. (Stanford University), “U-7”, 5%, 6/01/2046 | 7,840,000 | 10,909,674 | ||||||
| California Educational Facilities Authority Rev. (University of San Francisco), 6.125%, 10/01/2036 (Prerefunded 10/01/2021) | 450,000 | 502,353 | ||||||
| California Educational Facilities Authority Rev. (University of San Francisco), 6.125%, 10/01/2036 (Prerefunded 10/01/2021) | 475,000 | 530,884 | ||||||
| California Health Facilities Financing Authority Rev. (St. Joseph Health System), “A”, 5.75%, 7/01/2039 | 2,580,000 | 2,606,032 | ||||||
| California Health Facilities Financing Authority Rev. (Sutter Health), “A”, 5%, 11/15/2046 | 2,530,000 | 2,862,644 | ||||||
| California Health Facilities Financing Authority Rev. (Sutter Health), “D”, 5.25%, 8/15/2031 | 5,000,000 | 5,415,300 | ||||||
| California M-S-R Energy Authority Gas Rev., “A”, 7%, 11/01/2034 | 595,000 | 877,952 | ||||||
| California M-S-R Energy Authority Gas Rev., “A”, 6.5%, 11/01/2039 | 1,185,000 | 1,718,475 | ||||||
| California Municipal Finance Authority Rev. (Channing House Project), “B”, 5%, 5/15/2047 | 1,500,000 | 1,735,470 | ||||||
| California Municipal Finance Authority Rev. (Community Medical Centers), “A”, 5%, 2/01/2042 | 1,750,000 | 1,957,183 | ||||||
| California Municipal Finance Authority Rev. (LINXS APM Project), “A”, 5%, 12/31/2043 | 1,000,000 | 1,137,500 | ||||||
14
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| California - continued | ||||||||
| California Municipal Finance Authority Rev. (NorthBay Healthcare Group), “A”, 5.25%, 11/01/2036 | $ | 1,510,000 | $ | 1,684,722 | ||||
| California Municipal Finance Authority Rev. (NorthBay Healthcare Group), “A”, 5.25%, 11/01/2041 | 4,890,000 | 5,364,232 | ||||||
| California Municipal Finance Authority Rev. (NorthBay Healthcare Group), “A”, 5.25%, 11/01/2047 | 235,000 | 257,151 | ||||||
| California Municipal Finance Authority Rev. (University of La Verne), “A”, 6.25%, 6/01/2040 (Prerefunded 6/01/2020) | 850,000 | 898,017 | ||||||
| California Pollution Control Financing Authority, Solid Waste Disposal Rev. (Republic Services, Inc. Project), “A”, 2.3%, 8/01/2023 (Put Date 5/01/2019) | 12,495,000 | 12,496,125 | ||||||
| California Pollution Control Financing Authority, Solid Waste Disposal Rev. (Republic Services, Inc. Project), “A-1”, 2.3%, 11/01/2042 (Put Date 4/15/2019) | 4,250,000 | 4,250,255 | ||||||
| California Public Finance Authority Rev. (Henry Mayo Newhall Hospital), 5%, 10/15/2033 | 260,000 | 291,395 | ||||||
| California Public Finance Authority Rev. (Henry Mayo Newhall Hospital), 5%, 10/15/2037 | 510,000 | 564,448 | ||||||
| California Public Finance Authority Rev. (Henry Mayo Newhall Hospital), 5%, 10/15/2047 | 510,000 | 559,373 | ||||||
| California Public Works Board Lease Rev. (Various Capital Projects), “G-1”, 5.75%, 10/01/2030 (Prerefunded 10/01/2019) | 2,950,000 | 3,014,398 | ||||||
| California Public Works Board Lease Rev. (Various Capital Projects), “I”, 5%, 11/01/2038 | 9,180,000 | 10,178,141 | ||||||
| California Public Works Board Lease Rev., Department of Corrections and Rehabilitation (Various Correctional Facilities), “A”, 5%, 9/01/2033 | 9,250,000 | 10,540,190 | ||||||
| California School Finance Authority, School Facility Rev. (Alliance for College-Ready Public Schools Projects), “A”, 5%, 7/01/2030 | 505,000 | 567,251 | ||||||
| California School Finance Authority, School Facility Rev. (Alliance for College-Ready Public Schools Projects), “A”, 5%, 7/01/2045 | 1,340,000 | 1,455,548 | ||||||
| California School Finance Authority, School Facility Rev. (Alliance For College-Ready Public Schools Projects), “A”, 4%, 7/01/2024 | 560,000 | 603,960 | ||||||
| California School Finance Authority, School Facility Rev. (Alliance For College-Ready Public Schools Projects), “A”, 4%, 7/01/2025 | 585,000 | 635,029 | ||||||
| California Statewide Communities Development Authority Environmental Facilities Rev. (Microgy Holdings Project), 9%, 12/01/2038 (a)(d) | 126,224 | 1 | ||||||
| California Statewide Communities Development Authority Insured Rev. (Viamonte Senior Living 1 Project), “A”, 3.5%, 7/01/2034 | 795,000 | 829,622 | ||||||
| California Statewide Communities Development Authority Rev. (Adventist Health System/West), “A”, 5%, 3/01/2034 | 1,000,000 | 1,186,930 | ||||||
| California Statewide Communities Development Authority Rev. (Adventist Health System/West), “A”, 5%, 3/01/2035 | 1,475,000 | 1,746,489 | ||||||
15
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| California - continued | ||||||||
| California Statewide Communities Development Authority Rev. (American Baptist Homes of the West), 6.25%, 10/01/2039 | $ | 1,050,000 | $ | 1,072,985 | ||||
| California Statewide Communities Development Authority Rev. (California Baptist University), “A”, 3%, 11/01/2022 | 1,420,000 | 1,434,257 | ||||||
| California Statewide Communities Development Authority Rev. (California Baptist University), “A”, 3.5%, 11/01/2027 | 3,930,000 | 4,098,204 | ||||||
| California Statewide Communities Development Authority Rev. (California Baptist University), “A”, 5%, 11/01/2032 | 485,000 | 559,477 | ||||||
| California Statewide Communities Development Authority Rev. (California Baptist University), “A”, 5%, 11/01/2041 | 955,000 | 1,072,398 | ||||||
| California Statewide Communities Development Authority Rev. (Lancer Educational Student Housing Project), 7.5%, 6/01/2042 (Prerefunded 6/01/2019) | 855,000 | 863,524 | ||||||
| California Statewide Communities Development Authority Rev. (Lancer Plaza Project), 5.125%, 11/01/2023 | 90,000 | 97,089 | ||||||
| California Statewide Communities Development Authority Rev. (Lancer Plaza Project), 5.625%, 11/01/2033 | 190,000 | 213,877 | ||||||
| California Statewide Communities Development Authority Rev. (Loma Linda University Medical Center), “A”, 5.25%, 12/01/2034 | 645,000 | 714,189 | ||||||
| California Statewide Communities Development Authority Rev. (Loma Linda University Medical Center), “A”, 5.25%, 12/01/2044 | 2,475,000 | 2,688,444 | ||||||
| California Statewide Communities Development Authority Rev. (Loma Linda University Medical Center), “A”, 5%, 12/01/2046 | 4,640,000 | 5,012,406 | ||||||
| California Statewide Communities Development Authority Rev. (Loma Linda University Medical Center), “A”, 5.25%, 12/01/2056 | 990,000 | 1,082,466 | ||||||
| California Statewide Communities Development Authority, College Housing Rev. (NCCD-Hooper Street LLC College of the Arts Project), 5%, 7/01/2029 | 340,000 | 380,936 | ||||||
| California Statewide Communities Development Authority, College Housing Rev. (NCCD-Hooper Street LLC College of the Arts Project), 5.25%, 7/01/2039 | 475,000 | 516,981 | ||||||
| California Statewide Communities Development Authority, College Housing Rev. (NCCD-Hooper Street LLC College of the Arts Project), 5.25%, 7/01/2049 | 1,040,000 | 1,119,331 | ||||||
| California Statewide Communities Development Authority, College Housing Rev. (NCCD-Hooper Street LLC College of the Arts Project), 5.25%, 7/01/2052 | 505,000 | 541,360 | ||||||
| Chula Vista, CA, Industrial Development Rev. (San Diego Gas & Electric Co.), “E”, 5.875%, 1/01/2034 | 1,840,000 | 1,853,745 | ||||||
| Escondido, CA, Union High School District (Election of 2008), Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/2030 | 4,495,000 | 3,317,130 | ||||||
| Escondido, CA, Union High School District (Election of 2008), Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/2031 | 4,015,000 | 2,840,331 | ||||||
16
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| California - continued | ||||||||
| Escondido, CA, Union High School District (Election of 2008), Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/2033 | $ | 2,785,000 | $ | 1,821,501 | ||||
| Foothill-De Anza, CA, Community College District, Capital Appreciation, NATL, 0%, 8/01/2034 | 21,410,000 | 13,850,343 | ||||||
| Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A”, 5%, 6/01/2034 | 3,000,000 | 3,419,580 | ||||||
| Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A”, 3.5%, 6/01/2036 | 2,675,000 | 2,681,313 | ||||||
| Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A”, 5.25%, 6/01/2047 | 880,000 | 888,862 | ||||||
| Hartnell, CA, Community College District (Monterey and San Benito Counties Election of 2002), General Obligation, Capital Appreciation, “D”, 0%, 8/01/2039 (Prerefunded 8/01/2019) | 9,645,000 | 2,234,457 | ||||||
| Inland Valley, CA, Development Successor Agency Tax Allocation, “A”, AGM, 5%, 9/01/2044 | 2,620,000 | 2,920,907 | ||||||
| La Verne, CA, Brethren Hillcrest Homes, COP, 5%, 5/15/2036 | 640,000 | 667,290 | ||||||
| Long Beach, CA, Marina Rev. (Alamitos Bay Marina Project), 5%, 5/15/2035 | 480,000 | 531,312 | ||||||
| Los Angeles County, CA, Regional Financing Authority Rev. (Montecedro, Inc. Project), “A”, CALHF, 5%, 11/15/2034 | 480,000 | 531,379 | ||||||
| Los Angeles County, CA, Regional Financing Authority Rev. (Montecedro, Inc. Project), “A”, CALHF, 5%, 11/15/2044 | 820,000 | 902,328 | ||||||
| Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “A”, 5%, 5/15/2029 | 2,990,000 | 3,112,799 | ||||||
| Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “A”, 5%, 5/15/2034 | 465,000 | 555,391 | ||||||
| Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “A”, 5%, 5/15/2036 | 825,000 | 978,632 | ||||||
| Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “A”, 5%, 5/15/2037 | 1,030,000 | 1,217,048 | ||||||
| Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “A”, 5.25%, 5/15/2038 | 1,770,000 | 2,126,850 | ||||||
| Los Angeles, CA, Department of Airports Rev. (Los Angeles International), “A”, 5%, 5/15/2044 | 3,605,000 | 4,199,248 | ||||||
| Los Angeles, CA, Department of Water & Power Water System Rev., “A”, 5%, 7/01/2038 | 4,040,000 | 4,657,595 | ||||||
| Los Angeles, CA, Department of Water & Power Water System Rev., “A”, 5%, 7/01/2041 | 6,435,000 | 7,389,697 | ||||||
| Los Angeles, CA, Municipal Improvement Corp. Lease Rev. (Real Property), “E”, 6%, 9/01/2039 | 2,580,000 | 2,628,968 | ||||||
| Los Angeles, CA, Unified School District, “D”, 5%, 1/01/2034 | 825,000 | 831,683 | ||||||
| Madera, CA, Irrigation Financing Authority Water Rev., 6.5%, 1/01/2040 (Prerefunded 1/01/2020) | 3,595,000 | 3,730,711 | ||||||
17
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| California - continued | ||||||||
| Merced, CA, Union High School District, Capital Appreciation, “A”, ASSD GTY, 0%, 8/01/2030 | $ | 580,000 | $ | 429,937 | ||||
| Montebello, CA, Public Financing Authority Lease Rev. (Montebello Home2 Suites by Hilton Hotel Project), “A”, 5%, 6/01/2041 | 6,500,000 | 7,356,050 | ||||||
| Montebello, CA, Public Financing Authority Lease Rev. (Montebello Home2 Suites by Hilton Hotel Project), “A”, 5%, 6/01/2046 | 2,000,000 | 2,255,280 | ||||||
| Mt. San Antonio, CA, Community College District, Convertible Capital Appreciation, 0% to 8/01/2023, 5.875% to 8/01/2028 | 1,860,000 | 1,924,486 | ||||||
| Oceanside, CA, Unified School District, Capital Appreciation, ASSD GTY, 0%, 8/01/2027 | 1,930,000 | 1,605,664 | ||||||
| Oceanside, CA, Unified School District, Capital Appreciation, ASSD GTY, 0%, 8/01/2029 | 3,915,000 | 3,032,990 | ||||||
| Oceanside, CA, Unified School District, Capital Appreciation, ASSD GTY, 0%, 8/01/2030 | 4,335,000 | 3,231,396 | ||||||
| Oceanside, CA, Unified School District, Capital Appreciation, ETM, ASSD GTY, 0%, 8/01/2024 | 350,000 | 317,611 | ||||||
| Oroville, CA, Rev. (Oroville Hospital), 5.25%, 4/01/2049 | 820,000 | 919,827 | ||||||
| Oroville, CA, Rev. (Oroville Hospital), 5.25%, 4/01/2054 | 1,230,000 | 1,374,353 | ||||||
| Oxnard, CA, Financing Authority, Wastewater Rev., AGM, 5%, 6/01/2030 | 1,640,000 | 1,872,831 | ||||||
| Palomar Pomerado Health Care District, CA, COP, 6.75%, 11/01/2039 (Prerefunded 11/01/2019) | 2,210,000 | 2,276,919 | ||||||
| Port of Oakland, CA, Rev., “P”, 5%, 5/01/2033 | 10,815,000 | 11,684,202 | ||||||
| Riverside County, CA, Transportation Commission Sales Tax Rev. (Limited Tax), “A”, 2%, 6/01/2029 | 2,015,000 | 1,978,387 | ||||||
| Riverside County, CA, Transportation Commission Sales Tax Rev. (Limited Tax), “A”, 5.25%, 6/01/2039 (Prerefunded 6/01/2023) | 4,655,000 | 5,383,507 | ||||||
| Sacramento County, CA, Airport System Rev., “A”, 5%, 7/01/2041 | 10,000,000 | 11,526,600 | ||||||
| Sacramento County, CA, Airport System Rev., “B”, 5%, 7/01/2041 | 6,000,000 | 6,894,600 | ||||||
| Sacramento, CA, Municipal Utility District Electricity Rev., “X”, 5%, 8/15/2028 (Prerefunded 8/15/2021) | 835,000 | 904,397 | ||||||
| Sacramento, CA, Municipal Utility District Electricity Rev., “X”, 5%, 8/15/2028 | 2,435,000 | 2,631,456 | ||||||
| San Diego County, CA, Regional Airport Authority Rev., “A”, 5%, 7/01/2040 | 9,315,000 | 9,678,099 | ||||||
| San Diego County, CA, Regional Airport Authority Rev., “B”, 5%, 7/01/2024 | 500,000 | 568,110 | ||||||
| San Diego County, CA, Regional Airport Authority Rev., “B”, 5%, 7/01/2025 | 1,500,000 | 1,699,050 | ||||||
| San Francisco, CA, City & County Airports Commission, International Airport Rev., “A”, 5%, 5/01/2028 | 6,000,000 | 6,562,320 | ||||||
18
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| California - continued | ||||||||
| San Francisco, CA, City & County Airports Commission, International Airport Rev., “A”, 5%, 1/01/2047 | $ | 1,230,000 | $ | 1,431,523 | ||||
| San Francisco, CA, City & County Redevelopment Successor Agency, Tax Allocation (Mission Bay South Redevelopment Project), “A”, 5%, 8/01/2043 | 340,000 | 379,416 | ||||||
| San Jose, CA, Airport Rev., “A-2”, 5.25%, 3/01/2034 | 7,570,000 | 8,033,965 | ||||||
| San Mateo County, CA, Community College District (Election of 2005), Capital Appreciation, “A”, NATL, 0%, 9/01/2026 | 5,100,000 | 4,392,732 | ||||||
| State of California, 5%, 4/01/2024 | 4,365,000 | 4,801,194 | ||||||
| State of California, 5.25%, 10/01/2028 | 2,965,000 | 3,228,707 | ||||||
| State of California, 5%, 8/01/2029 | 5,000,000 | 6,019,300 | ||||||
| State of California, 5%, 9/01/2034 | 9,000,000 | 10,637,460 | ||||||
| State of California, 6%, 11/01/2039 | 3,000,000 | 3,078,600 | ||||||
| State of California, Unrefunded Balance, 6.5%, 4/01/2033 | 1,825,000 | 1,826,551 | ||||||
| State of California, Various Purpose General Obligation Refunding, 5%, 4/01/2031 | 3,180,000 | 4,079,972 | ||||||
| Upland, CA, COP (San Antonio Community Hospital), 6.375%, 1/01/2032 (Prerefunded 1/01/2021) | 2,075,000 | 2,252,516 | ||||||
| Upland, CA, COP (San Antonio Community Hospital), 6.5%, 1/01/2041 (Prerefunded 1/01/2021) | 915,000 | 995,072 | ||||||
| West Contra Costa, CA, Unified School District (Election of 2005), Capital Appreciation, “C”, ASSD GTY, 0%, 8/01/2029 | 3,440,000 | 2,637,964 | ||||||
| Whittier, CA, Union High School District, Capital Appreciation, 0%, 8/01/2034 | 2,005,000 | 773,429 | ||||||
|
|
|
|||||||
| $ | 332,035,240 | |||||||
| Colorado - 3.6% | ||||||||
| Colorado Eagle County School District RE50J, Garfield Routt Counties, General Obligation, 5%, 12/01/2034 | $ | 2,535,000 | $ | 3,000,527 | ||||
| Colorado Eagle County School District RE50J, Garfield Routt Counties, General Obligation, 5%, 12/01/2035 | 5,000,000 | 5,900,600 | ||||||
| Colorado Educational & Cultural Facilities Authority Rev. (Academy of Charter Schools Project), 5.625%, 5/01/2040 | 1,815,000 | 1,818,213 | ||||||
| Colorado Educational & Cultural Facilities Authority Rev. (Classical Academy Project), 5%, 12/01/2031 | 1,725,000 | 1,921,978 | ||||||
| Colorado Educational & Cultural Facilities Authority Rev. (Classical Academy Project), “A”, 5%, 12/01/2038 | 1,020,000 | 1,113,973 | ||||||
| Colorado Educational & Cultural Facilities Authority Rev. (Liberty Common Project), 5%, 1/15/2029 | 195,000 | 216,331 | ||||||
| Colorado Educational & Cultural Facilities Authority Rev. (Liberty Common Project), 5%, 1/15/2039 | 740,000 | 793,472 | ||||||
| Colorado Educational & Cultural Facilities Authority Rev. (Liberty Common Project), 5%, 1/15/2044 | 605,000 | 645,620 | ||||||
19
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Colorado - continued | ||||||||
| Colorado Educational & Cultural Facilities Authority Rev. (Montessori Charter School Project), 5%, 7/15/2037 | $ | 545,000 | $ | 583,030 | ||||
| Colorado Educational & Cultural Facilities Authority Rev. (Peak to Peak Charter School Project), 5%, 8/15/2030 | 490,000 | 543,033 | ||||||
| Colorado Educational & Cultural Facilities Authority Rev. (Peak to Peak Charter School Project), 5%, 8/15/2034 | 495,000 | 540,585 | ||||||
| Colorado Educational & Cultural Facilities Authority Rev. (Pinnacle Charter School Building Corp.), 5%, 6/01/2029 | 700,000 | 760,956 | ||||||
| Colorado Educational & Cultural Facilities Authority Rev. (Stargate Charter School Project), “A”, 5%, 12/01/2038 | 1,335,000 | 1,532,460 | ||||||
| Colorado Educational & Cultural Facilities Authority Rev. (Stargate Charter School Project), “A”, 4%, 12/01/2048 | 3,440,000 | 3,547,982 | ||||||
| Colorado Educational & Cultural Facilities Authority Rev. (Twin Peaks Charter Academy Project), 5%, 11/15/2031 | 1,855,000 | 2,053,318 | ||||||
| Colorado Educational & Cultural Facilities Authority Rev. (Union Colony School Project), 5%, 4/01/2038 | 305,000 | 349,377 | ||||||
| Colorado Educational & Cultural Facilities Authority Rev. (Union Colony School Project), 5%, 4/01/2048 | 365,000 | 411,676 | ||||||
| Colorado Educational & Cultural Facilities Authority Rev. (Union Colony School Project), 5%, 4/01/2053 | 385,000 | 429,679 | ||||||
| Colorado Health Facilities Authority Rev. (Adventist System/Sunbelt Obligated Group), “A”, 5%, 11/15/2041 | 10,000,000 | 11,336,300 | ||||||
| Colorado Health Facilities Authority Rev. (Evangelical Lutheran Good Samaritan Society), 5.625%, 6/01/2043 | 1,195,000 | 1,313,341 | ||||||
| Colorado Health Facilities Authority Rev. (SCL Health System), “A”, 5%, 1/01/2044 | 4,620,000 | 5,063,474 | ||||||
| Colorado Health Facilities Authority Rev., Improvement Bonds (Frasier Meadows Retirement Community Project), “B”, 5%, 5/15/2048 | 2,420,000 | 2,519,365 | ||||||
| Colorado High Performance Transportation Enterprise Rev. (C-470 Express Lanes), 5%, 12/31/2056 | 1,900,000 | 2,050,195 | ||||||
| Colorado Housing & Finance Authority Rev., “B-1”, GNMA, 4%, 11/01/2048 | 2,985,000 | 3,166,966 | ||||||
| Colorado Housing & Finance Authority Rev., Single Family Mortgage Class I, “C”, 4.75%, 5/01/2049 (u) | 6,210,000 | 6,851,555 | ||||||
| Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6.5%, 1/15/2030 | 6,150,000 | 6,375,705 | ||||||
| Colorado Regional Transportation District, Private Activity Rev. (Denver Transportation Partners), 6%, 1/15/2034 | 5,000,000 | 5,146,650 | ||||||
| Colorado Regional Transportation District, Sales Tax Rev. (Fastracks Project), “A”, 5%, 11/01/2036 | 2,755,000 | 3,240,651 | ||||||
| Colorado Regional Transportation District, Sales Tax Rev. (Fastracks Project), “A”, 5%, 11/01/2040 | 10,000,000 | 11,640,000 | ||||||
20
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Colorado - continued | ||||||||
| Colorado State University Board of Governors, System Enterprise Rev., “B”, 5%, 3/01/2025 | $ | 3,000,000 | $ | 3,553,680 | ||||
| Colorado State University Board of Governors, System Enterprise Rev., “B”, 5%, 3/01/2041 | 1,500,000 | 1,720,095 | ||||||
| Denver, CO, City & County Airport Systems Rev., “A”, 5%, 11/15/2028 | 1,930,000 | 2,112,288 | ||||||
| Denver, CO, City & County School District No. 1, 5%, 12/01/2024 (Prerefunded 12/01/2021) | 10,000,000 | 10,913,200 | ||||||
| Denver, CO, City & County Special Facilities Airport Refunding Rev. (United Airlines), 5%, 10/01/2032 | 1,145,000 | 1,228,425 | ||||||
| Denver, CO, Convention Center Hotel Authority Rev., 5%, 12/01/2035 | 965,000 | 1,080,096 | ||||||
| Denver, CO, Convention Center Hotel Authority Rev., 5%, 12/01/2040 | 1,635,000 | 1,783,785 | ||||||
| Denver, CO, Health & Hospital Authority Rev., “A”, 5.25%, 12/01/2045 | 1,210,000 | 1,315,621 | ||||||
| Park Creek Metropolitan District, CO, Senior Limited Property Tax Supported Rev., “A”, NATL, 5%, 12/01/2030 | 1,470,000 | 1,718,165 | ||||||
| Park Creek Metropolitan District, CO, Senior Limited Property Tax Supported Rev., “A”, NATL, 5%, 12/01/2031 | 1,660,000 | 1,932,057 | ||||||
| Park Creek Metropolitan District, CO, Senior Limited Property Tax Supported Rev., “A”, NATL, 5%, 12/01/2032 | 1,755,000 | 2,036,221 | ||||||
| Park Creek Metropolitan District, CO, Senior Limited Property Tax Supported Rev., “A”, NATL, 5%, 12/01/2033 | 1,760,000 | 2,035,704 | ||||||
| Park Creek Metropolitan District, CO, Senior Limited Property Tax Supported Rev., “A”, NATL, 5%, 12/01/2034 | 1,445,000 | 1,666,562 | ||||||
| Park Creek Metropolitan District, CO, Senior Limited Property Tax Supported Rev., “A”, NATL, 5%, 12/01/2035 | 1,630,000 | 1,874,353 | ||||||
| Park Creek Metropolitan District, CO, Senior Limited Property Tax Supported Rev., “A”, NATL, 5%, 12/01/2045 | 5,280,000 | 5,786,827 | ||||||
| Public Authority for Colorado Energy Natural Gas Purchase Rev., 6.25%, 11/15/2028 | 1,215,000 | 1,540,644 | ||||||
| University of Colorado, Enterprise Rev., 5%, 6/01/2029 (Prerefunded 6/01/2021) | 4,220,000 | 4,534,179 | ||||||
|
|
|
|||||||
| $ | 131,698,914 | |||||||
| Connecticut - 1.3% | ||||||||
| Connecticut Health & Educational Facilities Authority Rev. (Masonicare), “F”, 5%, 7/01/2025 | $ | 2,990,000 | $ | 3,263,794 | ||||
| Connecticut Health & Educational Facilities Authority Rev. (Masonicare), “F”, 5%, 7/01/2043 | 4,230,000 | 4,506,684 | ||||||
| Connecticut Housing Finance Authority Rev. (Housing Mortgage Finance Program), “B-2”, 4%, 11/15/2032 | 1,410,000 | 1,443,868 | ||||||
21
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Connecticut - continued | ||||||||
| Connecticut Housing Finance Authority Rev. (Housing Mortgage Finance Program), “C-1”, 3.5%, 11/15/2045 | $ | 2,425,000 | $ | 2,495,349 | ||||
| Connecticut Housing Finance Authority Rev. (Housing Mortgage Finance Program), “D-1”, 4%, 11/15/2044 | 1,450,000 | 1,488,237 | ||||||
| Hartford County, CT, Metropolitan District, “C”, AGM, 5%, 11/01/2028 | 4,290,000 | 5,152,676 | ||||||
| Hartford County, CT, Metropolitan District, “C”, AGM, 5%, 11/01/2029 | 2,375,000 | 2,832,401 | ||||||
| Hartford County, CT, Metropolitan District, “C”, AGM, 5%, 11/01/2030 | 2,355,000 | 2,789,191 | ||||||
| Hartford County, CT, Metropolitan District, “C”, AGM, 5%, 11/01/2031 | 2,015,000 | 2,376,068 | ||||||
| Mohegan Tribal Finance Authority, CT, Economic Development Bonds, 7%, 2/01/2045 (n) | 5,980,000 | 6,187,446 | ||||||
| State of Connecticut, Special Tax Obligation Rev., “A”, 5%, 12/01/2028 | 4,595,000 | 4,908,058 | ||||||
| State of Connecticut, Special Tax Obligation Rev., “A”, 5%, 12/01/2029 | 4,595,000 | 4,901,579 | ||||||
| State of Connecticut, Special Tax Obligation Rev., “A”, 5%, 12/01/2030 | 4,615,000 | 4,920,282 | ||||||
|
|
|
|||||||
| $ | 47,265,633 | |||||||
| Delaware - 0.0% | ||||||||
| Delaware Economic Development Authority Rev. (Newark Charter School, Inc.), “A”, 5%, 9/01/2036 | $ | 235,000 | $ | 258,326 | ||||
| Delaware Economic Development Authority Rev. (Newark Charter School, Inc.), “A”, 5%, 9/01/2046 | 475,000 | 513,451 | ||||||
|
|
|
|||||||
| $ | 771,777 | |||||||
| District of Columbia - 0.8% | ||||||||
| District of Columbia Rev. (Friendship Public Charter School), “A”, 5%, 6/01/2036 | $ | 2,355,000 | $ | 2,580,727 | ||||
| District of Columbia Rev. (Friendship Public Charter School), “A”, 5%, 6/01/2046 | 630,000 | 680,866 | ||||||
| District of Columbia Rev. (Georgetown University), 5%, 4/01/2035 | 3,000,000 | 3,507,510 | ||||||
| District of Columbia Rev. (Kipp, D.C. Charter School), “A”, 6%, 7/01/2033 (Prerefunded 7/01/2023) | 560,000 | 660,262 | ||||||
| District of Columbia Rev. (Kipp, D.C. Charter School), “A”, 6%, 7/01/2043 (Prerefunded 7/01/2023) | 1,450,000 | 1,709,608 | ||||||
| District of Columbia Rev. (Methodist Home of the District of Columbia Issue), 4.5%, 1/01/2025 | 185,000 | 182,686 | ||||||
| District of Columbia Rev. (Methodist Home of the District of Columbia Issue), “A”, 5.125%, 1/01/2035 | 240,000 | 234,780 | ||||||
22
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| District of Columbia - continued | ||||||||
| District of Columbia Rev. (Methodist Home of the District of Columbia Issue), “A”, 5.25%, 1/01/2039 | $ | 150,000 | $ | 146,740 | ||||
| District of Columbia Student Dormitory Rev. (Provident Group - Howard Properties LLC), 5%, 10/01/2030 | 3,435,000 | 3,548,321 | ||||||
| District of Columbia Student Dormitory Rev. (Provident Group - Howard Properties LLC), 5%, 10/01/2035 | 4,505,000 | 4,609,336 | ||||||
| District of Columbia University Rev. (Georgetown University), BHAC, 5%, 4/01/2040 | 11,570,000 | 12,356,760 | ||||||
|
|
|
|||||||
| $ | 30,217,596 | |||||||
| Florida - 2.4% | ||||||||
| Arborwood Community Development District, FL, Capital Improvement Rev., “A-1”, 6.9%, 5/01/2036 | $ | 20,000 | $ | 21,760 | ||||
| Bellalago, FL, Educational Facilities Benefit District (Osceola County) Capital Improvement Refunding Rev., 4.375%, 5/01/2030 | 1,045,000 | 1,118,443 | ||||||
| Bellalago, FL, Educational Facilities Benefit District (Osceola County) Capital Improvement Refunding Rev., 4.5%, 5/01/2033 | 485,000 | 518,737 | ||||||
| Bellalago, FL, Educational Facilities Benefit District (Osceola County) Capital Improvement Refunding Rev., 4.6%, 5/01/2034 | 1,405,000 | 1,508,745 | ||||||
| Capital Region Community Development District, FL, Capital Improvement Rev., “A-1”, 4.125%, 5/01/2023 | 75,000 | 75,119 | ||||||
| Capital Region Community Development District, FL, Capital Improvement Rev., “A-1”, 4.625%, 5/01/2028 | 100,000 | 100,418 | ||||||
| Capital Region Community Development District, FL, Capital Improvement Rev., “A-1”, 5.125%, 5/01/2039 | 625,000 | 630,850 | ||||||
| Capital Trust Agency Rev. (Aero Miami FX LLC), “A”, 5.35%, 7/01/2029 | 3,045,000 | 3,136,411 | ||||||
| Collier County, FL, Educational Facilities Authority Rev. (Ave Maria University, Inc. Project), “A”, 6.125%, 6/01/2043 | 5,850,000 | 6,277,986 | ||||||
| Collier County, FL, Industrial Development Authority Continuing Care Community Rev. (Arlington of Naples Project), “A”, 6.25%, 5/15/2035 | 100,000 | 95,596 | ||||||
| Collier County, FL, Industrial Development Authority Continuing Care Community Rev. (Arlington of Naples Project), “A”, 7.75%, 5/15/2035 | 835,000 | 837,321 | ||||||
| Collier County, FL, Industrial Development Authority Continuing Care Community Rev. (Arlington of Naples Project), “A”, 8.125%, 5/15/2044 | 1,265,000 | 1,267,682 | ||||||
| Collier County, FL, Industrial Development Authority Continuing Care Community Rev. (Arlington of Naples Project), “A”, 6.5%, 5/15/2049 | 180,000 | 168,957 | ||||||
| Daytona Beach, FL, Halifax Hospital Medical Center Improvement and Refunding Rev., 5%, 6/01/2036 | 545,000 | 604,165 | ||||||
23
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Florida - continued | ||||||||
| Daytona Beach, FL, Halifax Hospital Medical Center Rev., 5%, 6/01/2029 | $ | 1,350,000 | $ | 1,527,808 | ||||
| Daytona Beach, FL, Halifax Hospital Medical Center Rev., 5%, 6/01/2030 | 1,420,000 | 1,597,571 | ||||||
| Daytona Beach, FL, Halifax Hospital Medical Center Rev., 5%, 6/01/2046 | 2,270,000 | 2,450,942 | ||||||
| Florida Board of Education, Capital Outlay, “E”, 5%, 6/01/2023 (Prerefunded 6/01/2019) | 250,000 | 253,935 | ||||||
| Florida Development Finance Corp. Educational Facilities Rev. (Renaissance Charter School), “A”, 6%, 9/15/2030 | 2,425,000 | 2,513,585 | ||||||
| Florida Development Finance Corp. Educational Facilities Rev. (Renaissance Charter School), “A”, 6%, 9/15/2040 | 5,130,000 | 5,288,671 | ||||||
| Florida Development Finance Corp. Educational Facilities Rev. (Southwest Charter Foundation, Inc. Project), “A”, 6%, 6/15/2037 | 305,000 | 313,915 | ||||||
| Florida Development Finance Corp. Educational Facilities Rev. (Southwest Charter Foundation, Inc. Project), “A”, 6.125%, 6/15/2047 | 1,200,000 | 1,227,396 | ||||||
| Florida Higher Educational Facilities Financing Authority Rev. (Jacksonville University Project), “A”, 4.5%, 6/01/2033 | 550,000 | 577,792 | ||||||
| Florida Higher Educational Facilities Financing Authority Rev. (Jacksonville University Project), “A”, 4.75%, 6/01/2038 | 680,000 | 715,571 | ||||||
| Florida Higher Educational Facilities Financing Authority Rev. (Jacksonville University Project), “A”, 5%, 6/01/2048 | 1,230,000 | 1,307,994 | ||||||
| Florida Housing Finance Corp, Homeowner Mortgage Rev. (Special Program), “B”, 3%, 7/01/2045 | 1,915,000 | 1,941,006 | ||||||
| Florida Housing Finance Corp, Homeowner Mortgage Rev., “1”, 4%, 7/01/2049 (u) | 5,110,000 | 5,453,136 | ||||||
| Florida Municipal Power Agency Rev., All Requirements, “A”, 6.25%, 10/01/2031 (Prerefunded 10/01/2019) | 400,000 | 409,356 | ||||||
| Hillsborough County, FL, Industrial Development Authority Rev. (University Community Hospital), ETM, NATL, 6.5%, 8/15/2019 | 225,000 | 229,106 | ||||||
| Homestead 50, FL, Community Development District, Special Assessment, “A”, 6%, 5/01/2037 | 1,270,000 | 1,201,153 | ||||||
| Jacksonville, FL, Educational Facilities Rev. (Jacksonville University Project), “B”, 5%, 6/01/2053 | 570,000 | 600,808 | ||||||
| Lakeland, FL, Hospital Rev. (Lakeland Regional Health Systems), 5%, 11/15/2034 | 1,935,000 | 2,168,825 | ||||||
| Lakewood Ranch Stewardship District, FL, Special Assessment Rev. (Lakewood Centre North Project), 4.25%, 5/01/2025 | 265,000 | 268,843 | ||||||
| Lakewood Ranch Stewardship District, FL, Special Assessment Rev. (Lakewood Centre North Project), 4.875%, 5/01/2035 | 125,000 | 127,465 | ||||||
| Lakewood Ranch Stewardship District, FL, Special Assessment Rev. (Lakewood Centre North Project), 4.875%, 5/01/2045 | 195,000 | 197,248 | ||||||
24
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Florida - continued | ||||||||
| Lakewood Ranch Stewardship District, FL, Special Assessment Rev. (Lakewood National and Polo Run Projects), 5.375%, 5/01/2047 | $ | 605,000 | $ | 634,657 | ||||
| Marshall Creek Community Development District, FL, Capital Improvement and Special Assessment, “A”, 3.5%, 5/01/2020 | 525,000 | 525,200 | ||||||
| Miami Beach, FL, Health Facilities Authority Hospital Rev. (Mount Sinai Medical Center of Florida), 5%, 11/15/2039 | 2,000,000 | 2,156,720 | ||||||
| Miami-Dade County, FL, Aviation Rev., “B”, AGM, 5%, 10/01/2035 | 5,885,000 | 6,168,598 | ||||||
| Miami-Dade County, FL, Health Facilities Authority Hospital Rev., 6.125%, 8/01/2042 (Prerefunded 8/01/2020) | 1,645,000 | 1,740,986 | ||||||
| Miami-Dade County, FL, Health Facilities Authority Hospital Rev., Unrefunded Balance, 6.125%, 8/01/2042 | 595,000 | 625,809 | ||||||
| Miami-Dade County, FL, Water & Sewer Rev., AGM, 5%, 10/01/2039 (Prerefunded 10/01/2020) | 1,000,000 | 1,051,320 | ||||||
| Mid-Bay Bridge Authority Rev., FL, Springing Lien, “A”, 7.25%, 10/01/2040 (Prerefunded 10/01/2021) | 6,920,000 | 7,866,102 | ||||||
| Midtown Miami, FL, Community Development District Special Assessment (Infrastructure Project), “B”, 5%, 5/01/2029 | 280,000 | 294,202 | ||||||
| Midtown Miami, FL, Community Development District Special Assessment (Infrastructure Project), “B”, 5%, 5/01/2037 | 135,000 | 140,755 | ||||||
| Midtown Miami, FL, Community Development District Special Assessment (Parking Garage Project), “A”, 5%, 5/01/2037 | 230,000 | 239,805 | ||||||
| North Broward, FL, Hospital District Rev. (Broward Health), “B”, 5%, 1/01/2042 | 5,785,000 | 6,332,782 | ||||||
| Orlando, FL, Senior Tourist Development Tax Refunding Rev. (6th Cent Contract Payments), “A”, AGM, 5%, 11/01/2034 | 495,000 | 576,640 | ||||||
| Palm Beach County, FL, Health Facilities Rev. (Sinai Residences of Boca Raton Project), 7.5%, 6/01/2049 | 430,000 | 485,302 | ||||||
| Palm Beach County, FL, Solid Waste Authority Improvement Rev., BHAC, 5%, 10/01/2027 (Prerefunded 10/01/2019) | 295,000 | 300,154 | ||||||
| Pasco County, FL, Del Webb Bexley Community Development District, Special Assessment Rev., 5.3%, 5/01/2039 | 685,000 | 703,968 | ||||||
| Pasco County, FL, Del Webb Bexley Community Development District, Special Assessment Rev., 5.4%, 5/01/2049 | 885,000 | 909,382 | ||||||
| Pinellas County, FL, Sewer Rev., AGM, 5%, 10/01/2032 | 330,000 | 330,878 | ||||||
| South Lake County, FL, Hospital District Rev. (South Lake Hospital), “A”, 6%, 4/01/2029 | 1,025,000 | 1,027,655 | ||||||
| St. John’s County, FL, Industrial Development Authority Rev. (Bayview Project), “A”, 5.2%, 10/01/2027 | 140,000 | 129,986 | ||||||
| St. John’s County, FL, Industrial Development Authority Rev. (Presbyterian Retirement), “A”, 6%, 8/01/2045 (Prerefunded 8/01/2020) | 6,795,000 | 7,185,033 | ||||||
25
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Florida - continued | ||||||||
| Sterling Hill Community Development District, FL, Capital Improvement Rev., “B”, 5.5%, 11/01/2010 (d) | $ | 52,264 | $ | 33,449 | ||||
| Sumter County, FL, Industrial Development Authority Hospital Rev. (Central Florida Health Alliance Projects), “A”, 5%, 7/01/2026 | 245,000 | 276,411 | ||||||
| Sumter County, FL, Industrial Development Authority Hospital Rev. (Central Florida Health Alliance Projects), “A”, 5%, 7/01/2029 | 225,000 | 251,046 | ||||||
| Sumter County, FL, Industrial Development Authority Hospital Rev. (Central Florida Health Alliance Projects), “A”, 5.125%, 7/01/2034 | 485,000 | 531,967 | ||||||
| Sumter County, FL, Industrial Development Authority Hospital Rev. (Central Florida Health Alliance Projects), “A”, 5.25%, 7/01/2044 | 1,455,000 | 1,584,379 | ||||||
|
|
|
|||||||
| $ | 88,837,502 | |||||||
| Georgia - 2.2% | ||||||||
| Americus and Sumter County, GA, Hospital Authority Rev. (Magnolia Manor Obligated Group), “A”, 6.25%, 5/15/2033 | $ | 965,000 | $ | 1,043,233 | ||||
| Americus and Sumter County, GA, Hospital Authority Rev. (Magnolia Manor Obligated Group), “A”, 6.375%, 5/15/2043 | 965,000 | 1,042,827 | ||||||
| Atlanta, GA, Airport Rev., “B”, 5%, 1/01/2025 | 1,415,000 | 1,548,251 | ||||||
| Atlanta, GA, Airport Rev., “B”, 5%, 1/01/2026 | 800,000 | 874,200 | ||||||
| Atlanta, GA, Water & Wastewater Rev., “A”, 6%, 11/01/2022 (Prerefunded 11/01/2019) | 2,770,000 | 2,842,408 | ||||||
| Clayton County, GA, Development Authority Special Facilities Rev. (Delta Airlines, Inc.), “A”, 8.75%, 6/01/2029 | 1,295,000 | 1,394,378 | ||||||
| Cobb County, GA, Development Authority, Student Housing Rev. (Kennesaw State University Real Estate Foundations), “C”, 5%, 7/15/2030 | 650,000 | 719,777 | ||||||
| Cobb County, GA, Development Authority, Student Housing Rev. (Kennesaw State University Real Estate Foundations), “C”, 5%, 7/15/2033 | 1,140,000 | 1,242,885 | ||||||
| DeKalb County, GA, Hospital Authority Rev. (DeKalb Medical Center, Inc. Project), 6.125%, 9/01/2040 (Prerefunded 9/01/2020) | 4,850,000 | 5,150,603 | ||||||
| DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/2028 | 5,285,000 | 5,726,615 | ||||||
| DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/2029 | 1,415,000 | 1,531,794 | ||||||
| DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/2030 | 4,345,000 | 4,700,291 | ||||||
| DeKalb County, GA, Water & Sewer Rev., “A”, 5.25%, 10/01/2041 | 3,910,000 | 4,201,960 | ||||||
26
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Georgia - continued | ||||||||
| Fulton County, GA, Water & Sewer Rev., 5%, 1/01/2026 | $ | 3,680,000 | $ | 3,889,502 | ||||
| Fulton County, GA, Water & Sewer Rev., 5%, 1/01/2027 | 2,285,000 | 2,412,663 | ||||||
| Georgia Housing & Finance Authority Rev., Single Family Mortgage, “A”, 4%, 12/01/2047 | 3,290,000 | 3,464,765 | ||||||
| Georgia Housing & Finance Authority Rev., Single Family Mortgage, “A-1”, 4%, 6/01/2044 | 1,065,000 | 1,101,370 | ||||||
| Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5%, 3/15/2022 | 4,545,000 | 4,924,098 | ||||||
| Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5.5%, 9/15/2026 | 845,000 | 1,023,641 | ||||||
| Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5.5%, 9/15/2028 | 1,740,000 | 2,174,078 | ||||||
| Georgia Main Street Natural Gas, Inc., Gas Project Rev., “A”, 5%, 5/15/2043 | 1,865,000 | 2,081,079 | ||||||
| Georgia Main Street Natural Gas, Inc., Gas Supply Rev., “A”, 5%, 5/15/2031 | 5,760,000 | 6,679,411 | ||||||
| Georgia Municipal Electric Authority Power Rev., “GG”, 5%, 1/01/2026 | 3,065,000 | 3,377,232 | ||||||
| Hall County and Gainesville, GA, Hospital Authority Rev. (Northeast Georgia Health System, Inc.), “A”, 5%, 2/15/2042 | 4,000,000 | 4,504,880 | ||||||
| Hall County and Gainesville, GA, Hospital Authority Rev. (Northeast Georgia Health System, Inc.), “A”, 5%, 2/15/2045 | 5,000,000 | 5,629,900 | ||||||
| Hall County and Gainesville, GA, Hospital Authority Rev. (Northeast Georgia Health System, Inc.), “A”, 5.5%, 8/15/2054 | 4,215,000 | 4,872,919 | ||||||
| Marietta, GA, Development Facilities Authority Rev. (Life University, Inc. Project), “A”, 5%, 11/01/2037 | 590,000 | 639,165 | ||||||
| Marietta, GA, Development Facilities Authority Rev. (Life University, Inc. Project), “A”, 5%, 11/01/2047 | 405,000 | 431,430 | ||||||
|
|
|
|||||||
| $ | 79,225,355 | |||||||
| Guam - 0.1% | ||||||||
| Guam Government Business Privilege Tax Rev., “A”, 5.25%, 1/01/2036 | $ | 545,000 | $ | 567,634 | ||||
| Guam Government, “A”, 7%, 11/15/2039 (Prerefunded 11/15/2019) | 910,000 | 940,840 | ||||||
| Guam Waterworks Authority Rev. (Water and Wastewater System), 5.25%, 7/01/2020 | 130,000 | 134,630 | ||||||
| Guam Waterworks Authority Rev. (Water and Wastewater System), 5.25%, 7/01/2021 | 370,000 | 393,284 | ||||||
|
|
|
|||||||
| $ | 2,036,388 | |||||||
| Hawaii - 0.9% | ||||||||
| Hawaii Department of Budget & Finance, Special Purpose Rev. (15 Craigside Project), “A”, 8.75%, 11/15/2029 (Prerefunded 11/15/2019) | $ | 305,000 | $ | 318,261 | ||||
27
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Hawaii - continued | ||||||||
| Hawaii Department of Budget & Finance, Special Purpose Rev. (15 Craigside Project), “A”, 9%, 11/15/2044 (Prerefunded 11/15/2019) | $ | 1,100,000 | $ | 1,149,379 | ||||
| Hawaii Department of Budget & Finance, Special Purpose Rev. (Hawaiian Electric Co. & Subsidiary), 6.5%, 7/01/2039 | 3,655,000 | 3,702,844 | ||||||
| Hawaii Housing & Community Development Corp., Rental Housing System Rev., “A”, 4.65%, 1/01/2029 | 7,795,000 | 7,814,877 | ||||||
| Hawaii Housing & Community Development Corp., Rental Housing System Rev., “A”, 4.75%, 1/01/2033 | 9,390,000 | 9,413,851 | ||||||
| State of Hawaii, “DZ”, 5%, 12/01/2031 (Prerefunded 12/01/2021) | 1,380,000 | 1,502,240 | ||||||
| State of Hawaii, “DZ”, 5%, 12/01/2031 (Prerefunded 12/01/2021) | 850,000 | 927,622 | ||||||
| State of Hawaii, Highway Rev., “A”, 5%, 1/01/2030 (Prerefunded 1/01/2022) | 3,695,000 | 4,042,737 | ||||||
| State of Hawaii, Highway Rev., “A”, 5%, 1/01/2031 | 1,380,000 | 1,491,697 | ||||||
| State of Hawaii, Highway Rev., “A”, 5%, 1/01/2032 | 920,000 | 993,701 | ||||||
|
|
|
|||||||
| $ | 31,357,209 | |||||||
| Illinois - 11.0% | ||||||||
| Chicago, IL, “A”, 5.25%, 1/01/2028 | $ | 345,000 | $ | 373,187 | ||||
| Chicago, IL, “A”, 5%, 1/01/2036 | 1,110,000 | 1,163,324 | ||||||
| Chicago, IL, “A”, 5%, 1/01/2040 | 2,170,000 | 2,316,605 | ||||||
| Chicago, IL, “A”, 5%, 1/01/2044 | 6,715,000 | 7,120,653 | ||||||
| Chicago, IL, “A”, 5.5%, 1/01/2049 | 6,995,000 | 7,718,073 | ||||||
| Chicago, IL, “A”, AGM, 5%, 1/01/2027 | 200,000 | 201,492 | ||||||
| Chicago, IL, “A”, AGM, 5%, 1/01/2028 (Prerefunded 1/01/2020) | 7,700,000 | 7,881,643 | ||||||
| Chicago, IL, “A”, AGM, 4.75%, 1/01/2030 | 245,000 | 245,980 | ||||||
| Chicago, IL, “A”, AGM, 4.625%, 1/01/2031 | 505,000 | 506,828 | ||||||
| Chicago, IL, “A”, AGM, 5%, 1/01/2037 | 2,730,000 | 2,749,929 | ||||||
| Chicago, IL, “A”, Capital Appreciation, NATL, 0%, 1/01/2027 | 1,490,000 | 1,141,772 | ||||||
| Chicago, IL, “C”, NATL, 5%, 1/01/2028 | 165,000 | 165,505 | ||||||
| Chicago, IL, “C”, NATL, 5%, 1/01/2029 | 3,025,000 | 3,034,166 | ||||||
| Chicago, IL, “D”, 5.5%, 1/01/2033 | 935,000 | 1,026,770 | ||||||
| Chicago, IL, Board of Education, 5%, 12/01/2042 | 4,000,000 | 4,104,200 | ||||||
| Chicago, IL, Board of Education (School Reform), “A”, NATL, 5.25%, 12/01/2023 | 6,805,000 | 7,446,235 | ||||||
| Chicago, IL, Board of Education (School Reform), Capital Appreciation, “A”, NATL, 0%, 12/01/2022 | 1,405,000 | 1,251,293 | ||||||
| Chicago, IL, Board of Education (School Reform), Capital Appreciation, “A”, NATL, 0%, 12/01/2023 | 1,205,000 | 1,033,408 | ||||||
| Chicago, IL, Board of Education (School Reform), Capital Appreciation, “A”, NATL, 0%, 12/01/2028 | 9,895,000 | 6,880,290 | ||||||
| Chicago, IL, Board of Education (School Reform), Capital Appreciation, “A”, NATL, 0%, 12/01/2029 | 3,290,000 | 2,177,388 | ||||||
28
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Illinois - continued | ||||||||
| Chicago, IL, Board of Education (School Reform), Capital Appreciation, “A”, NATL, 0%, 12/01/2030 | $ | 1,335,000 | $ | 837,325 | ||||
| Chicago, IL, Board of Education (School Reform), Capital Appreciation, “B-1”, NATL, 0%, 12/01/2019 | 825,000 | 809,960 | ||||||
| Chicago, IL, Board of Education (School Reform), Capital Appreciation, “B-1”, NATL, 0%, 12/01/2022 | 645,000 | 574,437 | ||||||
| Chicago, IL, Board of Education (School Reform), Capital Appreciation, “B-1”, NATL, 0%, 12/01/2023 | 14,590,000 | 12,512,384 | ||||||
| Chicago, IL, Board of Education (School Reform), Capital Appreciation, “B-1”, NATL, 0%, 12/01/2026 | 3,405,000 | 2,588,379 | ||||||
| Chicago, IL, Board of Education (School Reform), Capital Appreciation, “B-1”, NATL, 0%, 12/01/2028 | 3,895,000 | 2,708,310 | ||||||
| Chicago, IL, Board of Education, Dedicated Capital Improvement Tax Bond, 5%, 4/01/2033 | 270,000 | 296,654 | ||||||
| Chicago, IL, Board of Education, Dedicated Capital Improvement Tax Bond, 5%, 4/01/2042 | 1,785,000 | 1,934,083 | ||||||
| Chicago, IL, Board of Education, Dedicated Capital Improvement Tax Bond, 5%, 4/01/2046 | 1,620,000 | 1,750,669 | ||||||
| Chicago, IL, Board of Education, Dedicated Capital Improvement Tax Bond, 6%, 4/01/2046 | 15,110,000 | 17,508,259 | ||||||
| Chicago, IL, Board of Education, Unlimited Tax General Obligation Dedicated Rev., “C”, AGM, 5%, 12/01/2030 | 2,760,000 | 3,222,659 | ||||||
| Chicago, IL, Board of Education, Unlimited Tax General Obligation Dedicated Rev., “C”, AGM, 5%, 12/01/2031 | 5,300,000 | 6,156,904 | ||||||
| Chicago, IL, Board of Education, Unlimited Tax General Obligation Dedicated Rev., “C”, AGM, 5%, 12/01/2032 | 4,540,000 | 5,254,051 | ||||||
| Chicago, IL, Board of Education, Unlimited Tax General Obligation Refunding Dedicated Rev., “A”, AAC, 5.5%, 12/01/2019 | 350,000 | 356,160 | ||||||
| Chicago, IL, Board of Education, Unlimited Tax General Obligation Refunding Dedicated Rev., “A”, AGM, 5%, 12/01/2029 | 310,000 | 364,560 | ||||||
| Chicago, IL, Board of Education, Unlimited Tax General Obligation Refunding Dedicated Rev., “A”, AGM, 5%, 12/01/2030 | 200,000 | 233,526 | ||||||
| Chicago, IL, Board of Education, Unlimited Tax General Obligation Refunding Dedicated Rev., “A”, AGM, 5%, 12/01/2031 | 200,000 | 232,336 | ||||||
| Chicago, IL, Board of Education, Unlimited Tax General Obligation Refunding Dedicated Rev., “A”, AGM, 5%, 12/01/2032 | 200,000 | 231,456 | ||||||
| Chicago, IL, Board of Education, Unlimited Tax General Obligation Refunding Dedicated Rev., “A”, AGM, 5%, 12/01/2033 | 180,000 | 207,535 | ||||||
| Chicago, IL, Board of Education, Unlimited Tax General Obligation Refunding Dedicated Rev., “A”, AGM, 5%, 12/01/2034 | 175,000 | 201,070 | ||||||
| Chicago, IL, Board of Education, Unlimited Tax General Obligation Refunding Dedicated Rev., “A”, AGM, 5%, 12/01/2035 | 130,000 | 148,833 | ||||||
| Chicago, IL, Board of Education, Unlimited Tax General Obligation Refunding Dedicated Rev., “G”, 5%, 12/01/2034 | 1,205,000 | 1,294,773 | ||||||
29
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Illinois - continued | ||||||||
| Chicago, IL, Board of Education, Unlimited Tax General Obligation Refunding Dedicated Rev., “H”, 5%, 12/01/2036 | $ | 3,245,000 | $ | 3,462,772 | ||||
| Chicago, IL, Board of Education, Unlimited Tax General Obligation Refunding Dedicated Rev., “H”, 5%, 12/01/2046 | 3,675,000 | 3,852,907 | ||||||
| Chicago, IL, City Colleges of Chicago Capital Improvement Project, Capital Appreciation, NATL, 0%, 1/01/2026 | 9,690,000 | 7,736,593 | ||||||
| Chicago, IL, City Colleges of Chicago Capital Improvement Project, Capital Appreciation, NATL, 0%, 1/01/2027 | 1,820,000 | 1,394,648 | ||||||
| Chicago, IL, General Obligation, “A”, 6%, 1/01/2038 | 3,755,000 | 4,283,704 | ||||||
| Chicago, IL, General Obligation, “A”, AGM, 5.25%, 1/01/2031 | 1,000,000 | 1,103,620 | ||||||
| Chicago, IL, Greater Chicago Metropolitan Water Reclamation District, “C”, 5%, 12/01/2029 | 9,145,000 | 9,855,932 | ||||||
| Chicago, IL, Midway Airport Rev., Second Lien, “A”, BAM, 5%, 1/01/2031 | 1,525,000 | 1,684,942 | ||||||
| Chicago, IL, O’Hare International Airport Rev., Special Facilities, 5%, 7/01/2033 | 745,000 | 857,316 | ||||||
| Chicago, IL, O’Hare International Airport Rev., Special Facilities, 5%, 7/01/2038 | 1,850,000 | 2,093,849 | ||||||
| Chicago, IL, O’Hare International Airport Rev., Special Facilities, 5%, 7/01/2048 | 5,900,000 | 6,610,537 | ||||||
| Chicago, IL, O’Hare International Airport Rev., Customer Facility Charge, AGM, 5.25%, 1/01/2032 | 945,000 | 1,051,020 | ||||||
| Chicago, IL, O’Hare International Airport Rev., Customer Facility Charge, AGM, 5.25%, 1/01/2033 | 470,000 | 521,832 | ||||||
| Chicago, IL, O’Hare International Airport Rev., Customer Facility Charge, AGM, 5.5%, 1/01/2043 | 1,890,000 | 2,102,360 | ||||||
| Chicago, IL, O’Hare International Airport Rev., Senior Lien, “A”, 5%, 1/01/2048 | 3,315,000 | 3,793,553 | ||||||
| Chicago, IL, O’Hare International Airport Rev., Senior Lien, “A”, 5%, 1/01/2053 | 1,840,000 | 2,090,406 | ||||||
| Chicago, IL, O’Hare International Airport Rev., Senior Lien, “B”, 5%, 1/01/2030 | 2,735,000 | 3,137,264 | ||||||
| Chicago, IL, O’Hare International Airport Rev., Third Lien, “A”, 5.625%, 1/01/2035 (Prerefunded 1/01/2021) | 5,520,000 | 5,914,073 | ||||||
| Chicago, IL, O’Hare International Airport Rev., Third Lien, Unrefunded Balance, “A”, 5.625%, 1/01/2035 | 1,605,000 | 1,709,261 | ||||||
| Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 12/01/2029 | 1,755,000 | 1,868,829 | ||||||
| Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 12/01/2031 | 655,000 | 695,636 | ||||||
| Chicago, IL, Transit Authority Sales Tax Receipts Rev., 5.25%, 12/01/2040 | 4,685,000 | 4,932,602 | ||||||
| Cook County, IL, Community College District No. 508 (City Colleges), BAM, 5%, 12/01/2047 | 9,665,000 | 10,688,524 | ||||||
30
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Illinois - continued | ||||||||
| Illinois Finance Authority Rev. (Christian Homes, Inc.), 5%, 5/15/2036 | $ | 640,000 | $ | 672,806 | ||||
| Illinois Finance Authority Rev. (Christian Homes, Inc.), 5%, 5/15/2040 | 585,000 | 610,225 | ||||||
| Illinois Finance Authority Rev. (Edward-Elmhurst Healthcare), “A”, 5%, 1/01/2034 | 2,310,000 | 2,614,343 | ||||||
| Illinois Finance Authority Rev. (Edward-Elmhurst Healthcare), “A”, 5%, 1/01/2035 | 2,315,000 | 2,610,834 | ||||||
| Illinois Finance Authority Rev. (Franciscan Communities, Inc.), “A”, 4.75%, 5/15/2033 | 2,180,000 | 2,219,044 | ||||||
| Illinois Finance Authority Rev. (Franciscan Communities, Inc.), “A”, 5.125%, 5/15/2043 | 1,500,000 | 1,547,910 | ||||||
| Illinois Finance Authority Rev. (Friendship Village of Schaumburg), 5%, 2/15/2037 | 9,810,000 | 8,832,237 | ||||||
| Illinois Finance Authority Rev. (Mercy Health Corp.), 5%, 12/01/2046 | 9,235,000 | 10,073,261 | ||||||
| Illinois Finance Authority Rev. (OSF Healthcare), “A”, 7%, 11/15/2029 (Prerefunded 5/15/2019) | 2,975,000 | 2,994,010 | ||||||
| Illinois Finance Authority Rev. (OSF Healthcare), “A”, 7.125%, 11/15/2037 (Prerefunded 5/15/2019) | 2,445,000 | 2,460,990 | ||||||
| Illinois Finance Authority Rev. (Presbyterian Homes Obligated Group), “B”, FLR, 3.092% (70% of LIBOR - 1mo. + 1.35%), 5/01/2036 (Put Date 5/01/2021) | 885,000 | 887,761 | ||||||
| Illinois Finance Authority Rev. (Presence Health Network), “A”, 7.75%, 8/15/2034 (Prerefunded 8/15/2019) | 3,650,000 | 3,732,089 | ||||||
| Illinois Finance Authority Rev. (Presence Health Network), “C”, 5%, 2/15/2036 | 1,035,000 | 1,194,680 | ||||||
| Illinois Finance Authority Rev. (Presence Health Network), “C”, 5%, 2/15/2041 | 1,535,000 | 1,746,477 | ||||||
| Illinois Finance Authority Rev. (Rehabilitation Institute of Chicago), “A”, 6%, 7/01/2043 | 6,315,000 | 7,069,579 | ||||||
| Illinois Finance Authority Rev. (Resurrection Health Care Corp.), 6.125%, 5/15/2025 (Prerefunded 5/15/2019) | 6,460,000 | 6,494,949 | ||||||
| Illinois Finance Authority Rev. (Rosalind Franklin University), “A”, 5%, 8/01/2042 | 510,000 | 558,460 | ||||||
| Illinois Finance Authority Rev. (Rosalind Franklin University), “A”, 5%, 8/01/2047 | 745,000 | 814,255 | ||||||
| Illinois Finance Authority Rev. (Rosalind Franklin University, Research Building Project), “C”, 5%, 8/01/2046 | 615,000 | 672,392 | ||||||
| Illinois Finance Authority Rev. (Rosalind Franklin University, Research Building Project), “C”, 5%, 8/01/2049 | 795,000 | 866,502 | ||||||
| Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 6.875%, 8/15/2038 (Prerefunded 8/15/2019) | 1,500,000 | 1,529,145 | ||||||
31
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Illinois - continued | ||||||||
| Illinois Finance Authority Rev. (Silver Cross Hospital & Medical Centers), 7%, 8/15/2044 (Prerefunded 8/15/2019) | $ | 2,455,000 | $ | 2,503,462 | ||||
| Illinois Finance Authority Rev. (Southern Illinois Healthcare Enterprises, Inc.), “A”, 5%, 3/01/2047 | 10,000,000 | 11,126,200 | ||||||
| Illinois Finance Authority Rev. (Southern Illinois Healthcare Enterprises, Inc.), “C”, 5%, 3/01/2034 | 140,000 | 159,240 | ||||||
| Illinois Finance Authority Student Housing and Academic Facility Rev. (CHF-Chicago, LLC-University of Illinois at Chicago Project), “A”, 5%, 2/15/2037 | 490,000 | 543,655 | ||||||
| Illinois Finance Authority Student Housing and Academic Facility Rev. (CHF-Chicago, LLC-University of Illinois at Chicago Project), “A”, 5%, 2/15/2047 | 980,000 | 1,068,729 | ||||||
| Illinois Finance Authority Student Housing and Academic Facility Rev. (CHF-Chicago, LLC-University of Illinois at Chicago Project), “A”, 5%, 2/15/2050 | 490,000 | 533,262 | ||||||
| Illinois Finance Authority Student Housing Rev. (Illinois State University), 6.75%, 4/01/2031 (Prerefunded 4/01/2021) | 2,730,000 | 3,003,000 | ||||||
| Illinois Finance Authority Student Housing Rev. (Northern Illinois University Project), 6.625%, 10/01/2031 | 4,210,000 | 4,494,933 | ||||||
| Illinois Housing Development Authority Rev., “A”, 4.5%, 10/01/2048 | 7,945,000 | 8,670,220 | ||||||
| Illinois Railsplitter Tobacco Settlement Authority Rev., 5.5%, 6/01/2023 (Prerefunded 6/01/2021) | 4,455,000 | 4,823,963 | ||||||
| Illinois Railsplitter Tobacco Settlement Authority Rev., 6%, 6/01/2028 (Prerefunded 6/01/2021) | 10,615,000 | 11,606,547 | ||||||
| Illinois Sports Facilities Authority, AAC, 5.5%, 6/15/2030 | 1,250,000 | 1,253,063 | ||||||
| Illinois Sports Facilities Authority, State Tax Supported Refunding Rev., AGM, 5%, 6/15/2027 | 1,730,000 | 1,924,193 | ||||||
| Illinois Toll Highway Authority Rev., “A”, 5%, 12/01/2022 | 5,000,000 | 5,589,800 | ||||||
| Madison County, IL, Edwardsville Community Unit School District No. 007, BAM, 4%, 12/01/2020 | 1,315,000 | 1,363,063 | ||||||
| Madison County, IL, Edwardsville Community Unit School District No. 007, BAM, 5%, 12/01/2028 | 765,000 | 867,349 | ||||||
| Madison County, IL, Edwardsville Community Unit School District No. 007, BAM, 5%, 12/01/2029 | 785,000 | 888,361 | ||||||
| Metropolitan Pier & Exposition Authority Refunding Bonds (McCormick Place Expansion Project), “A”, Capital Appreciation, AGM, 0%, 6/15/2026 | 2,400,000 | 1,949,112 | ||||||
| Metropolitan Pier & Exposition Authority Rev. (McCormick Place Expansion Project), “A”, BAM, 5%, 6/15/2042 | 4,550,000 | 4,813,991 | ||||||
| Metropolitan Pier & Exposition Authority, Dedicated State Tax Rev. (McCormick Place Expansion Project), NATL, 5.5%, 6/15/2029 | 5,725,000 | 6,610,142 | ||||||
32
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Illinois - continued | ||||||||
| Romeoville, IL, Rev. (Lewis University Project), “A”, 5%, 10/01/2042 | $ | 1,690,000 | $ | 1,796,048 | ||||
| Romeoville, IL, Rev. (Lewis University Project), “B”, 5%, 10/01/2039 | 1,390,000 | 1,484,186 | ||||||
| Romeoville, IL, Rev. (Lewis University Project), “B”, 4.125%, 10/01/2041 | 1,130,000 | 1,134,181 | ||||||
| Romeoville, IL, Rev. (Lewis University Project), “B”, 4.125%, 10/01/2046 | 1,125,000 | 1,127,048 | ||||||
| State of Illinois, 5%, 11/01/2027 | 7,130,000 | 7,908,382 | ||||||
| State of Illinois, 5%, 1/01/2028 | 425,000 | 440,139 | ||||||
| State of Illinois, 5%, 5/01/2028 | 870,000 | 925,845 | ||||||
| State of Illinois, 5.25%, 7/01/2028 | 2,530,000 | 2,693,969 | ||||||
| State of Illinois, 5%, 11/01/2028 | 2,005,000 | 2,191,325 | ||||||
| State of Illinois, 5%, 2/01/2029 | 2,180,000 | 2,385,007 | ||||||
| State of Illinois, 4.125%, 11/01/2031 | 1,720,000 | 1,731,627 | ||||||
| State of Illinois, 4.5%, 11/01/2039 | 1,895,000 | 1,915,352 | ||||||
| State of Illinois, AGM, 5%, 4/01/2024 | 5,000,000 | 5,467,800 | ||||||
| State of Illinois, AGM, 5%, 2/01/2027 | 1,465,000 | 1,620,700 | ||||||
| State of Illinois, NATL, 6%, 11/01/2026 | 4,615,000 | 5,338,770 | ||||||
| State of Illinois, “A”, 5%, 12/01/2020 | 2,975,000 | 3,095,369 | ||||||
| State of Illinois, “B”, 5%, 11/01/2019 | 16,185,000 | 16,463,544 | ||||||
| State of Illinois, “B”, 5%, 12/01/2020 | 1,645,000 | 1,711,557 | ||||||
| State of Illinois, “B”, 5.25%, 6/15/2034 (Prerefunded 6/15/2019) | 1,275,000 | 1,284,473 | ||||||
| State of Illinois, “D”, 5%, 11/01/2028 | 6,655,000 | 7,343,327 | ||||||
| State of Illinois, “P”, ETM, 6.5%, 6/15/2022 | 2,570,000 | 2,685,573 | ||||||
|
|
|
|||||||
| $ | 404,143,700 | |||||||
| Indiana - 1.3% | ||||||||
| Indiana Development Finance Authority Solid Water Disposal Rev. (Waste Management, Inc. Project), 2.95%, 10/01/2031 (Put Date 10/01/2021) | $ | 1,075,000 | $ | 1,075,000 | ||||
| Indiana Economic Development Finance Authority Rev. (Republic Services, Inc. Project), “A”, 2.1%, 5/01/2034 (Put Date 6/01/2019) | 5,730,000 | 5,730,630 | ||||||
| Indiana Finance Authority Health Facilities Rev. (Baptist Healthcare System Obligated Group), 5%, 8/15/2051 | 5,955,000 | 6,569,020 | ||||||
| Indiana Finance Authority Rev. (BHI Senior Living), “A”, 6%, 11/15/2041 | 2,840,000 | 3,181,709 | ||||||
| Indiana Finance Authority Rev. (Marquette Project), “A”, 5%, 3/01/2030 | 530,000 | 569,125 | ||||||
| Indiana Finance Authority Rev. (Marquette Project), “A”, 5%, 3/01/2039 | 1,340,000 | 1,421,713 | ||||||
| Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/2035 | 2,190,000 | 2,365,923 | ||||||
33
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Indiana - continued | ||||||||
| Indiana Finance Authority Rev. (Ohio River Bridges East End Crossing Project), “A”, 5%, 7/01/2044 | $ | 1,595,000 | $ | 1,703,603 | ||||
| Indiana Finance Authority Rev. (State Revolving Fund Program), “A”, 5%, 2/01/2029 (Prerefunded 2/01/2022) | 4,000,000 | 4,381,800 | ||||||
| Indiana Housing & Community Development Authority, Single Family Mortgage Rev., “A”, GNMA, 4%, 7/01/2048 | 3,360,000 | 3,586,195 | ||||||
| Indianapolis, IN, Water System First Lien Refunding Rev., “A”, 5%, 10/01/2037 | 5,250,000 | 6,274,380 | ||||||
| Knox County, IN, Economic Development Rev. (Good Samaritan Hospital), “A”, 5%, 4/01/2042 | 1,170,000 | 1,191,575 | ||||||
| Lake County, IN, Hammond Multi-School Building Corp., 5%, 7/15/2032 | 625,000 | 728,450 | ||||||
| Lake County, IN, Hammond Multi-School Building Corp., 5%, 7/15/2033 | 455,000 | 528,132 | ||||||
| Lake County, IN, Hammond Multi-School Building Corp., 5%, 7/15/2035 | 565,000 | 650,575 | ||||||
| Lake County, IN, Hammond Multi-School Building Corp., 5%, 7/15/2038 | 1,700,000 | 1,928,089 | ||||||
| St. Joseph County, IN, Educational Facilities Rev. (University of Notre Dame), 6.5%, 3/01/2026 | 1,000,000 | 1,296,520 | ||||||
| University of Southern Indiana Rev. (Student Fee), “J”, ASSD GTY, 5.75%, 10/01/2028 (Prerefunded 10/01/2019) | 1,875,000 | 1,914,225 | ||||||
| Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 6.75%, 1/01/2034 | 330,000 | 381,114 | ||||||
| Valparaiso, IN, Exempt Facilities Rev. (Pratt Paper LLC Project), 7%, 1/01/2044 | 755,000 | 877,333 | ||||||
|
|
|
|||||||
| $ | 46,355,111 | |||||||
| Iowa - 0.6% | ||||||||
| Iowa Finance Authority Health Facilities Rev. (UnityPoint Health), “C”, 5%, 2/15/2030 | $ | 1,200,000 | $ | 1,349,040 | ||||
| Iowa Finance Authority Health Facilities Rev. (UnityPoint Health), “C”, 5%, 2/15/2031 | 2,230,000 | 2,492,783 | ||||||
| Iowa Finance Authority Health Facilities Rev. (UnityPoint Health), “C”, 5%, 2/15/2032 | 1,085,000 | 1,208,104 | ||||||
| Iowa Finance Authority Rev. (Iowa Health System Obligated Group), “A”, 5.25%, 2/15/2044 | 3,000,000 | 3,252,570 | ||||||
| Iowa Finance Authority Senior Housing Rev. (Northcrest, Inc. Project), “A”, 5%, 3/01/2033 | 745,000 | 796,129 | ||||||
| Iowa Finance Authority Senior Housing Rev. (Northcrest, Inc. Project), “A”, 5%, 3/01/2038 | 615,000 | 649,932 | ||||||
| Iowa Finance Authority Senior Housing Rev. (Northcrest, Inc. Project), “A”, 5%, 3/01/2048 | 1,125,000 | 1,175,006 | ||||||
34
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Iowa - continued | ||||||||
| Iowa Finance Authority, Single Family Mortgage Rev., “A”, FNMA, 4%, 7/01/2047 | $ | 1,275,000 | $ | 1,357,212 | ||||
| Iowa Student Loan Liquidity Corp. Rev., “A”, 3.75%, 12/01/2033 | 5,625,000 | 5,737,219 | ||||||
| Iowa Student Loan Liquidity Corp. Rev., “A-1”, 4.625%, 12/01/2019 | 590,000 | 597,717 | ||||||
| Iowa Student Loan Liquidity Corp. Rev., “A-1”, 4.875%, 12/01/2020 | 105,000 | 107,949 | ||||||
| Iowa Student Loan Liquidity Corp. Rev., “A-2”, 5.5%, 12/01/2025 | 480,000 | 501,029 | ||||||
| Iowa Student Loan Liquidity Corp. Rev., “A-2”, 5.6%, 12/01/2026 | 475,000 | 495,990 | ||||||
| Iowa Student Loan Liquidity Corp. Rev., “A-2”, 5.7%, 12/01/2027 | 40,000 | 41,783 | ||||||
| Iowa Student Loan Liquidity Corp. Rev., “A-2”, 5.75%, 12/01/2028 | 810,000 | 845,284 | ||||||
| Iowa Tobacco Settlement Authority, Tobacco Settlement Rev., Asset Backed, “B”, 5.6%, 6/01/2034 | 3,070,000 | 3,084,030 | ||||||
|
|
|
|||||||
| $ | 23,691,777 | |||||||
| Kansas - 0.8% | ||||||||
| Coffeyville, KS, Electric Utility System Rev., “B”, NATL, 5%, 6/01/2038 | $ | 3,800,000 | $ | 4,222,826 | ||||
| Coffeyville, KS, Electric Utility System Rev., “B”, NATL, 5%, 6/01/2042 | 1,500,000 | 1,656,840 | ||||||
| Hutchinson, KS, Hospital Facilities Rev. (Hutchinson Regional Medical Center, Inc.), 5%, 12/01/2036 | 1,295,000 | 1,414,231 | ||||||
| Hutchinson, KS, Hospital Facilities Rev. (Hutchinson Regional Medical Center, Inc.), 5%, 12/01/2041 | 680,000 | 733,359 | ||||||
| University of Kansas Hospital Authority, Health Facilities Rev. (University of Kansas Health System), “A”, 5%, 9/01/2048 | 13,460,000 | 15,605,255 | ||||||
| Wichita, KS, Health Care Facilities Rev. (Presbyterian Manors, Inc.), “I”, 5%, 5/15/2033 | 145,000 | 153,932 | ||||||
| Wichita, KS, Health Care Facilities Rev. (Presbyterian Manors, Inc.), “I”, 5%, 5/15/2038 | 175,000 | 183,346 | ||||||
| Wichita, KS, Health Care Facilities Rev. (Presbyterian Manors, Inc.), “I”, 4.625%, 5/15/2041 | 145,000 | 146,121 | ||||||
| Wichita, KS, Health Care Facilities Rev. (Presbyterian Manors, Inc.), “I”, 5%, 5/15/2047 | 720,000 | 746,647 | ||||||
| Wichita, KS, Sales Tax Special Obligations Rev. (K-96 Greenwich Star Bond Project), 3%, 9/01/2023 | 630,000 | 634,271 | ||||||
| Wichita, KS, Sales Tax Special Obligations Rev. (K-96 Greenwich Star Bond Project), 4.2%, 9/01/2027 | 1,515,000 | 1,525,984 | ||||||
| Wyandotte County, KS, Unified Government Community Improvement District Sales Tax Rev. (Legends Apartments Garage & West Lawn Project), 4.5%, 6/01/2040 | 540,000 | 547,663 | ||||||
|
|
|
|||||||
| $ | 27,570,475 | |||||||
35
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Kentucky - 1.1% | ||||||||
| Commonwealth of Kentucky State Property & Buildings Commission Rev. (Project No. 119), BAM, 5%, 5/01/2032 | $ | 810,000 | $ | 957,234 | ||||
| Commonwealth of Kentucky State Property & Buildings Commission Rev. (Project No. 119), BAM, 5%, 5/01/2033 | 800,000 | 942,152 | ||||||
| Commonwealth of Kentucky State Property & Buildings Commission Rev. (Project No. 119), BAM, 5%, 5/01/2034 | 910,000 | 1,067,075 | ||||||
| Kentucky Economic Development Finance Authority Hospital Rev. (Baptist Healthcare System), “B”, 5%, 8/15/2037 | 590,000 | 663,903 | ||||||
| Kentucky Economic Development Finance Authority Hospital Rev. (Baptist Healthcare System), “B”, 5%, 8/15/2041 | 4,235,000 | 4,724,227 | ||||||
| Kentucky Economic Development Finance Authority Hospital Rev. (Baptist Healthcare System), “B”, 5%, 8/15/2046 | 2,685,000 | 2,987,546 | ||||||
| Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Health, Inc.), “A”, 5%, 6/01/2037 | 2,530,000 | 2,762,102 | ||||||
| Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Health, Inc.), “A”, 5%, 6/01/2041 | 1,655,000 | 1,796,022 | ||||||
| Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Health, Inc.), “A”, 5.25%, 6/01/2041 | 1,290,000 | 1,432,919 | ||||||
| Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Health, Inc.), “A”, 5%, 6/01/2045 | 2,070,000 | 2,239,616 | ||||||
| Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6%, 6/01/2030 (Prerefunded 6/01/2020) | 2,695,000 | 2,832,095 | ||||||
| Kentucky Economic Development Finance Authority Hospital Rev. (Owensboro Medical Health System, Inc.), “A”, 6.375%, 6/01/2040 (Prerefunded 6/01/2020) | 5,500,000 | 5,803,490 | ||||||
| Kentucky Economic Development Finance Authority Louisville Arena Project Rev. (Louisville Arena Authority, Inc.), “A”, AGM, 5%, 12/01/2045 | 3,390,000 | 3,813,309 | ||||||
| Kentucky Economic Development Finance Authority Louisville Arena Project Rev. (Louisville Arena Authority, Inc.), “A”, AGM, 5%, 12/01/2047 | 1,895,000 | 2,051,679 | ||||||
| Kentucky Turnpike Authority, Economic Development Road Rev. (Revitalization Projects), “A”, 5%, 7/01/2032 | 2,000,000 | 2,228,040 | ||||||
| Louisville & Jefferson County, KY, Metro Government College Rev. (Bellarmine University, Inc. Project), 6.125%, 5/01/2039 (Prerefunded 11/01/2019) | 3,000,000 | 3,078,780 | ||||||
| Owen County, KY, Waterworks System Rev. (American Water Co. Project), “B”, 5.625%, 9/01/2039 | 1,670,000 | 1,693,831 | ||||||
|
|
|
|||||||
| $ | 41,074,020 | |||||||
| Louisiana - 1.2% | ||||||||
| Jefferson Parish, LA, Hospital Service District No. 1 Hospital Rev. (West Jefferson Medical Center), AGM, 5.25%, 1/01/2028 (Prerefunded 1/01/2020) | $ | 1,980,000 | $ | 2,073,773 | ||||
36
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Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Louisiana - continued | ||||||||
| Jefferson Parish, LA, Hospital Service District No. 2 Hospital Rev. (East Jefferson General Hospital), 6.25%, 7/01/2031 | $ | 3,355,000 | $ | 3,220,800 | ||||
| Louisiana Citizens Property Insurance Corp. Rev., AGM, 5%, 6/01/2022 | 1,470,000 | 1,619,396 | ||||||
| Louisiana Housing Corp. Single Family Mortgage Rev. (Home Ownership Program), “A-1”, 4.5%, 12/01/2047 | 775,000 | 844,161 | ||||||
| Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (CDF Healthcare), “A”, 5.625%, 6/01/2045 | 3,585,000 | 3,669,893 | ||||||
| Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (Ragin’ Cajun Facilities, Inc. - Student Housing & Parking Project), AGM, 5%, 10/01/2043 | 590,000 | 668,311 | ||||||
| Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (Ragin’ Cajun Facilities, Inc. - Student Housing & Parking Project), AGM, 5%, 10/01/2048 | 2,555,000 | 2,868,626 | ||||||
| Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (St. James Place of Baton Rouge Project), “A”, 6%, 11/15/2035 | 580,000 | 632,409 | ||||||
| Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (St. James Place of Baton Rouge Project), “A”, 6.25%, 11/15/2045 | 2,240,000 | 2,462,118 | ||||||
| Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (Westlake Chemical), “A”, 6.5%, 8/01/2029 | 1,400,000 | 1,477,952 | ||||||
| Louisiana Local Government, Environmental Facilities & Community Development Authority Rev. (Westlake Chemical), “A-2”, 6.5%, 11/01/2035 | 6,000,000 | 6,395,820 | ||||||
| Louisiana Public Facilities Authority Hospital Rev. (Lake Charles Memorial Hospital), 6.375%, 12/01/2034 | 2,745,000 | 2,850,463 | ||||||
| Louisiana Public Facilities Authority Rev. (Loyola University Project), Convertible Capital Appreciation, 0% to 10/01/2023, 5.25% to 10/01/2046 | 5,465,000 | 5,009,656 | ||||||
| Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/2023 | 1,325,000 | 1,496,190 | ||||||
| Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/2024 | 1,270,000 | 1,431,861 | ||||||
| Louisiana Stadium & Exposition District Rev., “A”, 5%, 7/01/2025 | 1,000,000 | 1,125,270 | ||||||
| New Orleans, LA, Aviation Board Special Facility Rev. (Parking Facilities Corp. Consolidated Garage System), “A”, AGM, 5%, 10/01/2043 | 745,000 | 857,815 | ||||||
| New Orleans, LA, Aviation Board Special Facility Rev. (Parking Facilities Corp. Consolidated Garage System), “A”, AGM, 5%, 10/01/2048 | 1,210,000 | 1,387,217 | ||||||
| New Orleans, LA, Sewerage Service Rev., 5%, 12/01/2040 | 800,000 | 875,016 | ||||||
37
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Louisiana - continued | ||||||||
| St. Charles Parish, LA, Gulf Zone Opportunity Zone Rev. (Valero Energy Corp.), 4%, 12/01/2040 (Put Date 6/01/2022) | $ | 2,000,000 | $ | 2,087,540 | ||||
|
|
|
|||||||
| $ | 43,054,287 | |||||||
| Maine - 0.1% | ||||||||
| Maine Finance Authority Solid Waste Disposal Rev. (Casella Waste Systems, Inc.), “R-2”, 4.375%, 8/01/2035 (Put Date 8/01/2025) | $ | 1,140,000 | $ | 1,164,920 | ||||
| Maine Finance Authority Solid Waste Disposal Rev. (Casella Waste Systems, Inc.), “R-3”, 5.25%, 1/01/2025 | 570,000 | 620,873 | ||||||
| Maine Housing Authority Mortgage, “C-1”, 3.5%, 11/15/2044 | 2,955,000 | 3,034,430 | ||||||
|
|
|
|||||||
| $ | 4,820,223 | |||||||
| Maryland - 2.1% | ||||||||
| Baltimore, MD, Convention Center Hotel Rev., 5%, 9/01/2039 | $ | 1,805,000 | $ | 2,007,756 | ||||
| Baltimore, MD, Convention Center Hotel Rev., 5%, 9/01/2042 | 1,605,000 | 1,775,403 | ||||||
| Baltimore, MD, Convention Center Hotel Rev., 5%, 9/01/2046 | 2,575,000 | 2,834,611 | ||||||
| Baltimore, MD, Special Obligation (East Baltimore Research Park Project), “A”, 5%, 9/01/2038 | 1,565,000 | 1,673,517 | ||||||
| Baltimore, MD, Subordinate Project Rev. (Mayor and City Council of Baltimore Water Projects), “A”, 5%, 7/01/2041 | 5,000,000 | 5,739,100 | ||||||
| Howard County, MD, Special Obligation (Downtown Columbia Project), “A”, 4.125%, 2/15/2034 | 150,000 | 151,560 | ||||||
| Howard County, MD, Special Obligation (Downtown Columbia Project), “A”, 4.375%, 2/15/2039 | 155,000 | 157,429 | ||||||
| Howard County, MD, Special Obligation (Downtown Columbia Project), “A”, 4.5%, 2/15/2047 | 1,105,000 | 1,123,895 | ||||||
| Maryland Community Development Administration, Department of Housing & Community Development, “C”, 4%, 9/01/2044 | 3,365,000 | 3,518,040 | ||||||
| Maryland Department of Housing & Community Development Administration, “A”, 4.5%, 9/01/2048 (u) | 11,380,000 | 12,443,689 | ||||||
| Maryland Department of Housing & Community Development Administration, “B”, 4.5%, 9/01/2048 (u) | 9,240,000 | 10,061,436 | ||||||
| Maryland Economic Development Corp. Adjustable Mode Rev. Refunding (Constellation Energy Group, Inc. Project), “B”, 2.55%, 12/01/2025 (Put Date 6/01/2020) | 3,385,000 | 3,390,721 | ||||||
| Maryland Economic Development Corp. Rev. (Port America Chesapeake Terminal Project), “B”, 5.375%, 6/01/2025 (Prerefunded 6/01/2020) | 795,000 | 830,203 | ||||||
| Maryland Economic Development Corp. Rev. (Transportation Facilities Project), “A”, 5%, 6/01/2030 | 180,000 | 213,001 | ||||||
| Maryland Economic Development Corp. Rev. (Transportation Facilities Project), “A”, 5%, 6/01/2032 | 125,000 | 145,219 | ||||||
38
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Maryland - continued | ||||||||
| Maryland Economic Development Corp. Rev. (Transportation Facilities Project), “A”, 5%, 6/01/2035 | $ | 225,000 | $ | 258,914 | ||||
| Maryland Economic Development Corp., Senior Student Housing Rev. (University of Maryland, College Park Projects), AGM, 5%, 6/01/2035 | 695,000 | 801,516 | ||||||
| Maryland Economic Development Corp., Subordinate Parking Facilities Rev. (Baltimore City Project), “C”, 4%, 6/01/2038 | 180,000 | 181,368 | ||||||
| Maryland Economic Development Corp., Subordinate Parking Facilities Rev. (Baltimore City Project), “C”, 4%, 6/01/2048 | 550,000 | 549,978 | ||||||
| Maryland Economic Development Corp., Subordinate Parking Facilities Rev. (Baltimore City Project), “C”, 4%, 6/01/2058 | 1,750,000 | 1,692,740 | ||||||
| Maryland Health & Higher Educational Facilities Authority Rev. (Adventist Healthcare Issue), “A”, 5.5%, 1/01/2036 | 5,090,000 | 5,938,554 | ||||||
| Maryland Health & Higher Educational Facilities Authority Rev. (Anne Arundel Health System), “A”, 6.75%, 7/01/2039 (Prerefunded 7/01/2019) | 1,510,000 | 1,529,358 | ||||||
| Maryland Health & Higher Educational Facilities Authority Rev. (Charlestown Community), 6.25%, 1/01/2041 (Prerefunded 1/01/2021) | 2,225,000 | 2,401,687 | ||||||
| Maryland Health & Higher Educational Facilities Authority Rev. (Doctors Community Hospital), “A”, 5%, 7/01/2033 | 1,745,000 | 1,954,801 | ||||||
| Maryland Health & Higher Educational Facilities Authority Rev. (Doctors Community Hospital), “A”, 5%, 7/01/2034 | 1,090,000 | 1,215,470 | ||||||
| Maryland Health & Higher Educational Facilities Authority Rev. (Doctors Community Hospital), “A”, 5%, 7/01/2038 | 4,845,000 | 5,313,657 | ||||||
| Prince George’s County, MD, Special Obligation Bonds (Westphalia Town Center Project), 5.125%, 7/01/2039 | 555,000 | 579,980 | ||||||
| Prince George’s County, MD, Special Obligation Bonds (Westphalia Town Center Project), 5.25%, 7/01/2048 | 545,000 | 564,745 | ||||||
| Rockville, MD, Mayor & Council Economic Development Refunding Rev. (Ingleside at King Farm Project), “A-1”, 5%, 11/01/2037 | 185,000 | 197,904 | ||||||
| Rockville, MD, Mayor & Council Economic Development Rev. (Ingleside at King Farm Project), “B”, 5%, 11/01/2042 | 315,000 | 332,523 | ||||||
| Rockville, MD, Mayor & Council Economic Development Rev. (Ingleside at King Farm Project), “B”, 5%, 11/01/2047 | 330,000 | 346,903 | ||||||
| Rockville, MD, Mayor & Council Economic Development Rev. (Ingleside at King Farm Project), “C-3”, 2.5%, 11/01/2024 | 3,370,000 | 3,370,034 | ||||||
| State of Maryland, “B”, 4%, 8/01/2027 | 2,570,000 | 2,751,031 | ||||||
|
|
|
|||||||
| $ | 76,046,743 | |||||||
| Massachusetts - 5.9% | ||||||||
| Commonwealth of Massachusetts Transportation Fund Rev. (Accelerated Bridge Program), “A”, 5%, 6/01/2023 | $ | 2,645,000 | $ | 3,011,438 | ||||
39
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Massachusetts - continued | ||||||||
| Commonwealth of Massachusetts Transportation Fund Rev., “A”, 5%, 6/01/2043 | $ | 9,290,000 | $ | 10,881,934 | ||||
| Commonwealth of Massachusetts, “A”, 5%, 1/01/2047 | 6,625,000 | 7,718,324 | ||||||
| Commonwealth of Massachusetts, “A”, AAC, 5.5%, 8/01/2030 | 5,000,000 | 6,584,450 | ||||||
| Commonwealth of Massachusetts, General Obligation Consolidated Loan, “H”, 5%, 12/01/2026 | 10,000,000 | 12,296,900 | ||||||
| Commonwealth of Massachusetts, General Obligation Consolidated Loan, “J”, 5%, 12/01/2036 | 19,615,000 | 23,055,471 | ||||||
| Massachusetts Bay Transportation Authority Rev., “A”, 7%, 3/01/2021 | 2,060,000 | 2,217,590 | ||||||
| Massachusetts Bay Transportation Authority, Sales Tax Rev., “A”, 5%, 7/01/2024 | 9,445,000 | 11,034,971 | ||||||
| Massachusetts College Building Authority Rev., “A”, 5%, 5/01/2031 | 2,395,000 | 2,679,406 | ||||||
| Massachusetts Development Finance Agency Lease Rev. (University of Massachusetts at Dartmouth, College of Visual & Performing Arts Project), 6%, 8/01/2021 | 775,000 | 814,502 | ||||||
| Massachusetts Development Finance Agency Refunding Rev. (Suffolk University), 5%, 7/01/2035 | 415,000 | 473,544 | ||||||
| Massachusetts Development Finance Agency Rev. (CareGroup), “J-1”, 5%, 7/01/2048 | 3,000,000 | 3,389,160 | ||||||
| Massachusetts Development Finance Agency Rev. (Emerson College), 5%, 1/01/2029 | 1,550,000 | 1,745,331 | ||||||
| Massachusetts Development Finance Agency Rev. (Emerson College), 5%, 1/01/2030 | 3,225,000 | 3,610,678 | ||||||
| Massachusetts Development Finance Agency Rev. (Emerson College), 5%, 1/01/2031 | 895,000 | 994,954 | ||||||
| Massachusetts Development Finance Agency Rev. (Emerson College), “A”, 5.25%, 1/01/2042 | 250,000 | 281,960 | ||||||
| Massachusetts Development Finance Agency Rev. (Emerson College), “A”, 5%, 1/01/2047 | 5,500,000 | 6,089,050 | ||||||
| Massachusetts Development Finance Agency Rev. (Emmanuel College), “A”, 5%, 10/01/2043 | 2,070,000 | 2,282,775 | ||||||
| Massachusetts Development Finance Agency Rev. (Lahey Health System Obligated Group), “F”, 5%, 8/15/2030 | 1,000,000 | 1,139,540 | ||||||
| Massachusetts Development Finance Agency Rev. (Milford Regional Medical Center), “F”, 5.75%, 7/15/2043 | 460,000 | 496,607 | ||||||
| Massachusetts Development Finance Agency Rev. (Newbridge on the Charles, Inc.), 5%, 10/01/2037 | 110,000 | 118,186 | ||||||
| Massachusetts Development Finance Agency Rev. (Newbridge on the Charles, Inc.), 5%, 10/01/2047 | 1,530,000 | 1,617,837 | ||||||
| Massachusetts Development Finance Agency Rev. (Newbridge on the Charles, Inc.), 5%, 10/01/2057 | 1,775,000 | 1,863,945 | ||||||
40
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Massachusetts - continued | ||||||||
| Massachusetts Development Finance Agency Rev. (North Hill Communities), “A”, 6.25%, 11/15/2033 (Prerefunded 11/15/2023) | $ | 275,000 | $ | 327,927 | ||||
| Massachusetts Development Finance Agency Rev. (North Hill Communities), “A”, 6.5%, 11/15/2043 (Prerefunded 11/15/2023) | 435,000 | 523,083 | ||||||
| Massachusetts Development Finance Agency Rev. (Partners Healthcare System Issue), “S”, 5%, 7/01/2032 | 1,275,000 | 1,525,754 | ||||||
| Massachusetts Development Finance Agency Rev. (Partners Healthcare), “L”, 5%, 7/01/2031 (Prerefunded 7/01/2021) | 1,430,000 | 1,535,548 | ||||||
| Massachusetts Development Finance Agency Rev. (Partners Healthcare), “L”, 5%, 7/01/2036 (Prerefunded 7/01/2021) | 1,670,000 | 1,793,263 | ||||||
| Massachusetts Development Finance Agency Rev. (Partners Healthcare), Unrefunded Balance, “L”, 5%, 7/01/2031 | 1,350,000 | 1,442,313 | ||||||
| Massachusetts Development Finance Agency Rev. (Sabis International Charter School Issue), 4%, 4/15/2020 | 20,000 | 20,155 | ||||||
| Massachusetts Development Finance Agency Rev. (Sabis International Charter School Issue), 5%, 4/15/2025 | 185,000 | 201,001 | ||||||
| Massachusetts Development Finance Agency Rev. (Simmons College), “H”, SYNCORA, 5.25%, 10/01/2033 | 420,000 | 507,927 | ||||||
| Massachusetts Development Finance Agency Rev. (Suffolk University), 5%, 7/01/2033 | 605,000 | 695,145 | ||||||
| Massachusetts Development Finance Agency Rev. (Suffolk University), 5%, 7/01/2034 | 710,000 | 813,156 | ||||||
| Massachusetts Development Finance Agency Rev. (UMass Memorial Health Care Obligated Group), “I”, 5%, 7/01/2036 | 1,440,000 | 1,622,203 | ||||||
| Massachusetts Development Finance Agency Rev. (UMass Memorial Health Care Obligated Group), “K”, 5%, 7/01/2038 | 1,300,000 | 1,458,301 | ||||||
| Massachusetts Development Finance Agency Rev. (Wellforce), “A”, 4%, 7/01/2044 | 2,240,000 | 2,281,821 | ||||||
| Massachusetts Development Finance Agency Rev. (Wellforce), “A”, 5%, 7/01/2044 | 935,000 | 1,061,618 | ||||||
| Massachusetts Development Finance Agency Rev. (Wentworth Institute of Technology Issue), 5%, 10/01/2046 | 1,145,000 | 1,262,912 | ||||||
| Massachusetts Development Finance Agency, Solid Waste Disposal Rev. (Dominion Energy Brayton), 5.75%, 12/01/2042 (Prerefunded 5/01/2019) | 670,000 | 672,298 | ||||||
| Massachusetts Educational Financing Authority, Education Loan Rev, “A”, 4.25%, 1/01/2030 | 805,000 | 850,048 | ||||||
| Massachusetts Educational Financing Authority, Education Loan Rev, “A”, 4.25%, 1/01/2031 | 545,000 | 572,555 | ||||||
| Massachusetts Educational Financing Authority, Education Loan Rev., “C”, 4.125%, 7/01/2046 | 6,960,000 | 7,230,048 | ||||||
| Massachusetts Educational Financing Authority, Education Loan Rev., “I-A”, 5.5%, 1/01/2022 | 225,000 | 231,507 | ||||||
41
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Massachusetts - continued | ||||||||
| Massachusetts Educational Financing Authority, Education Loan Rev., “J”, 5%, 7/01/2021 | $ | 1,255,000 | $ | 1,338,809 | ||||
| Massachusetts Educational Financing Authority, Education Loan Rev., “J”, 4.7%, 7/01/2026 | 995,000 | 1,027,228 | ||||||
| Massachusetts Educational Financing Authority, Education Loan Rev., “J”, 4.9%, 7/01/2028 | 1,035,000 | 1,086,605 | ||||||
| Massachusetts Educational Financing Authority, Education Loan Rev., “J”, 3.5%, 7/01/2033 (u) | 11,840,000 | 12,043,885 | ||||||
| Massachusetts Educational Financing Authority, Education Loan Rev., “J”, 3.5%, 7/01/2033 | 1,485,000 | 1,510,571 | ||||||
| Massachusetts Educational Financing Authority, Education Loan Rev., “K”, 5.25%, 7/01/2029 | 2,515,000 | 2,700,154 | ||||||
| Massachusetts Educational Financing Authority, Education Loan Rev., “K”, 3.625%, 7/01/2032 | 9,040,000 | 9,331,269 | ||||||
| Massachusetts Health & Higher Educational Facilities Authority Refunding Bonds Rev. (Suffolk University), 6.25%, 7/01/2030 (Prerefunded 7/01/2019) | 2,600,000 | 2,630,524 | ||||||
| Massachusetts Health & Higher Educational Facilities Authority Refunding Bonds Rev., Unrefunded Balance (Suffolk University), 6.25%, 7/01/2030 | 1,455,000 | 1,471,718 | ||||||
| Massachusetts Port Authority Rev., “A”, 5%, 7/01/2037 | 470,000 | 506,279 | ||||||
| Massachusetts Port Authority Rev., “A”, 5%, 7/01/2037 | 3,915,000 | 4,692,519 | ||||||
| Massachusetts Port Authority Rev., “A”, 5%, 7/01/2038 | 4,915,000 | 5,871,607 | ||||||
| Massachusetts Port Authority Rev., “A”, 5%, 7/01/2039 | 7,975,000 | 9,489,532 | ||||||
| Massachusetts Port Authority Special Facilities Rev. (ConRAC Project), “A”, 5.125%, 7/01/2041 | 465,000 | 494,132 | ||||||
| Massachusetts School Building Authority, Sales Tax Rev., “A”, 5%, 8/15/2026 | 12,500,000 | 13,861,875 | ||||||
| Massachusetts Water Resources Authority, “B”, AGM, 5.25%, 8/01/2029 | 4,215,000 | 5,507,741 | ||||||
| Massachusetts Water Resources Authority, ETM, 6.5%, 7/15/2019 | 390,000 | 395,565 | ||||||
| University of Massachusetts Building Authority Rev., ”2017-3“, 5%, 11/01/2036 | 8,895,000 | 10,633,973 | ||||||
|
|
|
|||||||
| $ | 215,621,122 | |||||||
| Michigan - 2.5% | ||||||||
| Detroit, MI, Downtown Development Authority Tax Increment Rev. (Catalyst Development), “A”, AGM, 5%, 7/01/2043 | $ | 1,565,000 | $ | 1,696,679 | ||||
| Detroit, MI, Water & Sewerage Department, Senior Lien Sewage Disposal System Rev., “A”, 5%, 7/01/2019 | 1,730,000 | 1,743,840 | ||||||
| Detroit, MI, Water & Sewerage Department, Senior Lien Sewage Disposal System Rev., “A”, 5%, 7/01/2020 | 1,725,000 | 1,794,259 | ||||||
| Detroit, MI, Water & Sewerage Department, Senior Lien Sewage Disposal System Rev., “A”, 5.25%, 7/01/2039 | 5,920,000 | 6,391,943 | ||||||
42
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Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Michigan - continued | ||||||||
| Detroit, MI, Water Supply System Rev., Senior Lien, “A”, 5%, 7/01/2036 | $ | 295,000 | $ | 309,549 | ||||
| Detroit, MI, Water Supply System Rev., Senior Lien, “C”, 5%, 7/01/2041 | 410,000 | 429,323 | ||||||
| Downriver, MI, Utility Wastewater Authority, Sewer System Rev., AGM, 5%, 4/01/2036 | 505,000 | 583,381 | ||||||
| Downriver, MI, Utility Wastewater Authority, Sewer System Rev., AGM, 5%, 4/01/2038 | 460,000 | 527,707 | ||||||
| Downriver, MI, Utility Wastewater Authority, Sewer System Rev., AGM, 5%, 4/01/2043 | 815,000 | 926,769 | ||||||
| Eastern Michigan University Board of Regents, General Rev., “A”, 4%, 3/01/2047 | 9,675,000 | 10,105,344 | ||||||
| Great Lakes Water Authority, Michigan Water Supply System Rev., “B”, BAM, 5%, 7/01/2046 | 5,745,000 | 6,537,580 | ||||||
| Great Lakes Water Authority, Michigan Water Supply System Rev., “D”, 5%, 7/01/2036 | 3,155,000 | 3,611,592 | ||||||
| Great Lakes Water Authority, Michigan Water Supply System Rev., “D”, AGM, 5%, 7/01/2034 | 3,710,000 | 4,348,602 | ||||||
| Michigan Finance Authority (Detroit Financial Recovery Income Tax Rev.), “F”, 3.875%, 10/01/2023 | 685,000 | 718,154 | ||||||
| Michigan Finance Authority (Detroit Financial Recovery Income Tax Rev.), “F”, 4%, 10/01/2024 | 860,000 | 913,483 | ||||||
| Michigan Finance Authority Hospital Rev. (Trinity Health Credit Group), 5%, 12/01/2030 | 1,000,000 | 1,197,470 | ||||||
| Michigan Finance Authority Hospital Rev. (Trinity Health Credit Group), 5%, 12/01/2031 | 2,000,000 | 2,377,700 | ||||||
| Michigan Finance Authority Hospital Rev. (Trinity Health Credit Group), 5%, 12/01/2048 | 3,690,000 | 4,250,843 | ||||||
| Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), “C”, 5%, 7/01/2033 | 800,000 | 902,600 | ||||||
| Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), “C”, 5%, 7/01/2034 | 1,790,000 | 2,017,706 | ||||||
| Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), “C”, 5%, 7/01/2035 | 1,155,000 | 1,298,844 | ||||||
| Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Refunding Second Lien Local Project), “C-7”, NATL, 5%, 7/01/2032 | 580,000 | 647,721 | ||||||
43
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Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Michigan - continued | ||||||||
| Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Sewage Disposal System Rev. Senior Lien Local Project), “C-1”, 5%, 7/01/2044 | $ | 450,000 | $ | 481,104 | ||||
| Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Local Project), “D-2”, 5%, 7/01/2034 | 800,000 | 907,168 | ||||||
| Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Second Lien Local Project), “D-6”, NATL, 5%, 7/01/2036 | 485,000 | 536,944 | ||||||
| Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2035 | 240,000 | 267,554 | ||||||
| Michigan Finance Authority Local Government Loan Program Rev. (Detroit Water and Sewerage Department Water Supply System Rev. Refunding Senior Lien Local Project), “D-1”, AGM, 5%, 7/01/2037 | 570,000 | 632,506 | ||||||
| Michigan Finance Authority Rev. (Trinity Health Corp.), 5%, 12/01/2035 | 3,195,000 | 3,421,174 | ||||||
| Michigan Hospital Finance Authority Rev. (Henry Ford Health System), 5.75%, 11/15/2039 (Prerefunded 11/15/2019) | 7,165,000 | 7,349,212 | ||||||
| Michigan Housing Development Authority, “A”, 4%, 6/01/2046 | 1,390,000 | 1,449,381 | ||||||
| Michigan Strategic Fund Ltd. Obligation Rev. (Detroit Edison Co.), 5.625%, 7/01/2020 | 985,000 | 1,029,355 | ||||||
| Michigan Strategic Fund Ltd. Obligation Rev. (I-75 Improvement Project), 5%, 6/30/2048 | 5,000,000 | 5,669,400 | ||||||
| Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, 5%, 12/01/2044 | 1,000,000 | 1,119,360 | ||||||
| Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “B”, BAM, 5%, 12/01/2039 | 610,000 | 688,275 | ||||||
| Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2039 | 470,000 | 523,749 | ||||||
| Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “C”, 5%, 12/01/2044 | 1,020,000 | 1,130,446 | ||||||
| Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “D”, AGM, 5%, 12/01/2040 | 7,105,000 | 8,113,484 | ||||||
| Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “D”, 5%, 12/01/2031 | 2,490,000 | 2,956,775 | ||||||
| Wayne County, MI, Airport Authority Rev. (Detroit Metropolitan Wayne County Airport), “D”, 5%, 12/01/2032 | 2,580,000 | 3,047,187 | ||||||
|
|
|
|||||||
| $ | 92,654,163 | |||||||
44
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Minnesota - 0.8% | ||||||||
| Duluth, MN, Economic Development Authority, Health Care Facilities Rev. (Essentia Health), “A”, 4.25%, 2/15/2043 | $ | 2,275,000 | $ | 2,395,461 | ||||
| Duluth, MN, Economic Development Authority, Health Care Facilities Rev. (Essentia Health), “A”, 5%, 2/15/2043 | 2,550,000 | 2,885,402 | ||||||
| Duluth, MN, Economic Development Authority, Health Care Facilities Rev. (Essentia Health), “A”, 4.25%, 2/15/2048 | 2,280,000 | 2,391,469 | ||||||
| Duluth, MN, Economic Development Authority, Health Care Facilities Rev. (Essentia Health), “A”, 5%, 2/15/2048 | 2,015,000 | 2,273,041 | ||||||
| Minneapolis & St. Paul, MN, Metropolitan Airports Commission Rev., “C”, 5%, 1/01/2041 | 2,500,000 | 2,896,375 | ||||||
| Minneapolis & St. Paul, MN, Metropolitan Airports Commission Rev., “C”, 5%, 1/01/2046 | 3,000,000 | 3,454,500 | ||||||
| Minnesota Housing Finance Agency, Residential Housing, “A”, 4%, 1/01/2041 | 1,125,000 | 1,168,481 | ||||||
| Minnesota Office of Higher Education Supplemental Student Loan Program Rev., 4%, 11/01/2037 (u) | 5,895,000 | 6,159,685 | ||||||
| St. Louis Park, MN, Health Care Facilities Rev. (Nicollet Health Services), 5.75%, 7/01/2039 (Prerefunded 7/01/2019) | 6,445,000 | 6,510,352 | ||||||
| St. Paul, MN, Housing & Redevelopment Authority Charter School Lease Rev. (Great River School Project), “A”, 5.5%, 7/01/2052 | 240,000 | 250,056 | ||||||
| University of Minnesota, “A”, 5%, 12/01/2025 (Prerefunded 12/01/2021) | 710,000 | 773,865 | ||||||
|
|
|
|||||||
| $ | 31,158,687 | |||||||
| Mississippi - 1.3% | ||||||||
| Alcorn State University Educational Building Corp., Student Housing Rev., “A”, 5.125%, 9/01/2034 (Prerefunded 9/01/2019) | $ | 2,500,000 | $ | 2,537,625 | ||||
| Alcorn State University Educational Building Corp., Student Housing Rev., “A”, 5.25%, 9/01/2039 (Prerefunded 9/01/2019) | 1,625,000 | 1,650,301 | ||||||
| Lowndes County, MS, Solid Waste Disposal & Pollution Control Rev. (Weyerhaeuser Co.), 6.8%, 4/01/2022 | 1,750,000 | 1,948,100 | ||||||
| Mississippi Development Bank Special Obligation (City of Jackson Water and Sewer System Rev. Bond Project), AGM, 6.875%, 12/01/2040 | 495,000 | 588,773 | ||||||
| Mississippi Development Bank Special Obligation (Harrison County Coliseum), “A”, 5.25%, 1/01/2034 | 2,455,000 | 3,047,735 | ||||||
| Mississippi Home Corp. Single Family Mortgage Rev., “A”, 4%, 12/01/2044 | 2,025,000 | 2,169,261 | ||||||
| Mississippi Hospital Equipment & Facilities Authority Rev. (Baptist Memorial Healthcare), “A”, 5%, 9/01/2022 | 1,445,000 | 1,570,773 | ||||||
| Mississippi Hospital Equipment & Facilities Authority Rev. (Baptist Memorial Healthcare), “A”, 5%, 9/01/2023 | 3,560,000 | 3,942,095 | ||||||
45
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Mississippi - continued | ||||||||
| Mississippi State University, Educational Building Corp. Rev. (Mississippi State University Refunding and Improvements Project), 5.25%, 8/01/2038 (Prerefunded 8/01/2023) | $ | 1,250,000 | $ | 1,441,263 | ||||
| State of Mississippi, “B”, 5%, 12/01/2025 | 585,000 | 704,048 | ||||||
| State of Mississippi, “B”, 5%, 12/01/2032 | 2,500,000 | 2,969,150 | ||||||
| State of Mississippi, “B”, 5%, 12/01/2033 | 2,500,000 | 2,959,950 | ||||||
| State of Mississippi, “B”, 5%, 12/01/2034 | 5,000,000 | 5,902,850 | ||||||
| University of Southern Mississippi, Educational Building Corp. Rev. (Campus Facilities Improvements Project), 5.25%, 9/01/2032 (Prerefunded 9/01/2019) | 1,665,000 | 1,690,924 | ||||||
| University of Southern Mississippi, Educational Building Corp. Rev. (Campus Facilities Improvements Project), 5.375%, 9/01/2036 (Prerefunded 9/01/2019) | 610,000 | 619,809 | ||||||
| University of Southern Mississippi, Educational Building Corp. Rev. (Facilities Refinancing Project), “A”, 5%, 3/01/2028 | 1,080,000 | 1,252,292 | ||||||
| West Rankin, MS, Utility Authority Rev., AGM, 5%, 1/01/2043 | 6,615,000 | 7,513,978 | ||||||
| West Rankin, MS, Utility Authority Rev., AGM, 5%, 1/01/2048 | 5,750,000 | 6,511,070 | ||||||
|
|
|
|||||||
| $ | 49,019,997 | |||||||
| Missouri - 0.9% | ||||||||
| Grundy County, MO, Industrial Development Authority Health Facilities Rev. (Wright Memorial Hospital), 6.125%, 9/01/2025 | $ | 625,000 | $ | 631,831 | ||||
| Grundy County, MO, Industrial Development Authority Health Facilities Rev. (Wright Memorial Hospital), 6.75%, 9/01/2034 | 1,410,000 | 1,427,724 | ||||||
| Kansas City, MO, Land Clearance for Redevelopment Authority Rev. (Convention Center Hotel Project - TIF Financing), “B”, 4.375%, 2/01/2031 | 105,000 | 107,586 | ||||||
| Kansas City, MO, Land Clearance for Redevelopment Authority Rev. (Convention Center Hotel Project - TIF Financing), “B”, 5%, 2/01/2040 | 160,000 | 166,899 | ||||||
| Kansas City, MO, Land Clearance for Redevelopment Authority Rev. (Convention Center Hotel Project - TIF Financing), “B”, 5%, 2/01/2050 | 275,000 | 282,282 | ||||||
| Missouri Health & Educational Facilities Authority Rev. (A.T. Still University Health Services), 5%, 10/01/2039 | 730,000 | 805,256 | ||||||
| Missouri Health & Educational Facilities Authority Rev. (Mercy Health), “A”, 5%, 6/01/2030 | 5,000,000 | 6,132,050 | ||||||
| Missouri Health & Educational Facilities Authority Rev. (Mercy Health), “A”, 5%, 6/01/2031 | 3,165,000 | 3,850,223 | ||||||
| Missouri Health & Educational Facilities Authority Rev. (SSM Health Care), “A”, 5%, 6/01/2031 | 2,615,000 | 2,940,071 | ||||||
| Missouri Housing Development Commission, Single Family Mortgage Rev. (First Place Homeownership Loan Program), “A”, 3.75%, 5/01/2038 | 940,000 | 976,030 | ||||||
46
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Missouri - continued | ||||||||
| Missouri Housing Development Commission, Single Family Mortgage Rev. (First Place Homeownership Loan Program), “A”, FNMA, 4.25%, 5/01/2049 | $ | 6,435,000 | $ | 6,941,242 | ||||
| Missouri Housing Development Commission, Single Family Mortgage Rev. (First Place Homeownership Loan Program), “B”, FNMA, 4.75%, 5/01/2049 | 3,350,000 | 3,696,457 | ||||||
| Missouri Housing Development Commission, Single Family Mortgage Rev. (Special Home Ownership Loan Program), “B”, GNMA, 4%, 11/01/2040 | 915,000 | 952,112 | ||||||
| St. Louis County, MO, Industrial Development Authority Health Facilities Rev. (Nazareth Living Center), “A”, 5%, 8/15/2030 | 140,000 | 148,849 | ||||||
| St. Louis County, MO, Industrial Development Authority Health Facilities Rev. (Nazareth Living Center), “A”, 5%, 8/15/2035 | 95,000 | 99,204 | ||||||
| St. Louis County, MO, Industrial Development Authority Health Facilities Rev. (Nazareth Living Center), “A”, 5.125%, 8/15/2045 | 260,000 | 269,773 | ||||||
| St. Louis, MO, Industrial Development Authority Financing Rev. (Ballpark Village Development Project), “A”, 3.875%, 11/15/2029 | 215,000 | 223,262 | ||||||
| St. Louis, MO, Industrial Development Authority Financing Rev. (Ballpark Village Development Project), “A”, 4.375%, 11/15/2035 | 735,000 | 756,815 | ||||||
| St. Louis, MO, Industrial Development Authority Financing Rev. (Ballpark Village Development Project), “A”, 4.75%, 11/15/2047 | 2,290,000 | 2,363,761 | ||||||
|
|
|
|||||||
| $ | 32,771,427 | |||||||
| Montana - 0.1% | ||||||||
| Montana Board of Housing Single Family Program (Federally Insured or Guaranteed Mortgage Loans), “A”, 4%, 6/01/2049 | $ | 1,090,000 | $ | 1,158,877 | ||||
| Montana Board of Housing Single Family Program (Federally Insured or Guaranteed Mortgage Loans), “A-2”, 3%, 12/01/2043 | 1,265,000 | 1,282,710 | ||||||
|
|
|
|||||||
| $ | 2,441,587 | |||||||
| Nebraska - 0.4% | ||||||||
| Central Plains Energy Project, NE, Gas Project Rev. (Project No. 3), “A”, 5%, 9/01/2034 | $ | 850,000 | $ | 1,025,193 | ||||
| Douglas County, NE, Educational Facilities Refunding Rev. (Creighton University), “A”, 5.875%, 7/01/2040 (Prerefunded 7/01/2020) | 6,355,000 | 6,691,434 | ||||||
| Nebraska Investment Finance Authority, Single Family Housing Rev., “A”, 3%, 3/01/2044 | 270,000 | 270,824 | ||||||
| Nebraska Investment Finance Authority, Single Family Housing Rev., “A”, 4%, 9/01/2044 | 1,640,000 | 1,712,242 | ||||||
| Nebraska Investment Finance Authority, Single Family Housing Rev., “C”, 4%, 9/01/2048 (u) | 5,310,000 | 5,670,602 | ||||||
|
|
|
|||||||
| $ | 15,370,295 | |||||||
47
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Nevada - 0.2% | ||||||||
| Director of the State of Nevada, Department of Business and Industry, Charter School Lease Rev. (Somerset Academy), “A”, 4.5%, 12/15/2029 | $ | 155,000 | $ | 162,858 | ||||
| Director of the State of Nevada, Department of Business and Industry, Charter School Lease Rev. (Somerset Academy), “A”, 5%, 12/15/2035 | 630,000 | 668,203 | ||||||
| Director of the State of Nevada, Department of Business and Industry, Charter School Lease Rev. (Somerset Academy), “A”, 5%, 12/15/2038 | 305,000 | 320,927 | ||||||
| Director of the State of Nevada, Department of Business and Industry, Charter School Lease Rev. (Somerset Academy), “A”, 5.125%, 12/15/2045 | 760,000 | 797,483 | ||||||
| Director of the State of Nevada, Department of Business and Industry, Charter School Lease Rev. (Somerset Academy), “A”, 5%, 12/15/2048 | 735,000 | 764,643 | ||||||
| Reno, NV, Sales Tax Rev. (Retrac-Reno Transportation Rail Access Corridor Project), “B”, AGM, 5%, 6/01/2033 | 90,000 | 105,853 | ||||||
| Reno, NV, Sales Tax Rev. (Retrac-Reno Transportation Rail Access Corridor Project), “B”, AGM, 5%, 6/01/2038 | 115,000 | 132,828 | ||||||
| Reno, NV, Sales Tax Rev. (Retrac-Reno Transportation Rail Access Corridor Project), “B”, AGM, 4%, 6/01/2048 | 460,000 | 477,370 | ||||||
| Reno, NV, Sales Tax Rev. (Retrac-Reno Transportation Rail Access Corridor Project), “B”, AGM, 4.125%, 6/01/2058 | 570,000 | 588,052 | ||||||
| Reno, NV, Sales Tax Rev. (Retrac-Reno Transportation Rail Access Corridor Project), Capital Appreciation, “C”, 0%, 7/01/2058 | 31,000,000 | 3,802,150 | ||||||
|
|
|
|||||||
| $ | 7,820,367 | |||||||
| New Hampshire - 0.2% | ||||||||
| New Hampshire Business Finance Authority Rev. (Elliot Hospital Obligated Group), “A”, 6%, 10/01/2027 (Prerefunded 10/01/2019) | $ | 4,610,000 | $ | 4,711,005 | ||||
| New Hampshire Business Finance Authority Rev. (Huggins Hospital), 6.875%, 10/01/2039 (Prerefunded 10/01/2019) | 450,000 | 461,777 | ||||||
| New Hampshire Business Finance Authority, Solid Waste Disposal Rev. (Casella Waste Systems, Inc. Project), 4%, 4/01/2029 (Put Date 10/01/2019) | 185,000 | 186,069 | ||||||
| New Hampshire Health & Education Facilities Authority Rev. (Memorial Hospital), 5.5%, 6/01/2031 | 1,600,000 | 1,855,184 | ||||||
| New Hampshire Health & Education Facilities Authority Rev. (Memorial Hospital), 5.5%, 6/01/2036 | 1,595,000 | 1,821,968 | ||||||
|
|
|
|||||||
| $ | 9,036,003 | |||||||
48
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| New Jersey - 5.2% | ||||||||
| Atlantic City, NJ, Tax Appeal Refunding Bonds (Qualified Pursuant to the Provisions of the Municipal Qualified Bond Act), “A”, BAM, 5%, 3/01/2032 | $ | 2,725,000 | $ | 3,144,050 | ||||
| Atlantic City, NJ, Tax Appeal Refunding Bonds (Qualified Pursuant to the Provisions of the Municipal Qualified Bond Act), “A”, BAM, 5%, 3/01/2037 | 4,400,000 | 4,983,748 | ||||||
| Atlantic City, NJ, Tax Appeal Refunding Bonds (Qualified Pursuant to the Provisions of the Municipal Qualified Bond Act), “A”, BAM, 5%, 3/01/2042 | 600,000 | 672,504 | ||||||
| Atlantic City, NJ, Tax Appeal Refunding Bonds (Qualified Pursuant to the Provisions of the Municipal Qualified Bond Act), “B”, AGM, 5%, 3/01/2032 | 1,665,000 | 1,921,044 | ||||||
| Atlantic City, NJ, Tax Appeal Refunding Bonds (Qualified Pursuant to the Provisions of the Municipal Qualified Bond Act), “B”, AGM, 5%, 3/01/2037 | 1,670,000 | 1,891,559 | ||||||
| New Jersey Building Authority Rev., Unrefunded Balance, “A”, BAM, 5%, 6/15/2029 | 355,000 | 411,271 | ||||||
| New Jersey Casino Reinvestment Development Authority, Luxury Tax Rev., AGM, 5%, 11/01/2029 | 555,000 | 613,725 | ||||||
| New Jersey Casino Reinvestment Development Authority, Luxury Tax Rev., AGM, 5%, 11/01/2030 | 850,000 | 937,559 | ||||||
| New Jersey Casino Reinvestment Development Authority, Luxury Tax Rev., AGM, 5%, 11/01/2031 | 555,000 | 610,428 | ||||||
| New Jersey Casino Reinvestment Development Authority, Luxury Tax Rev., AGM, 5%, 11/01/2032 | 555,000 | 609,557 | ||||||
| New Jersey Economic Development Authority Rev. (Goethals Bridge Replacement Project), 5.5%, 1/01/2027 | 470,000 | 535,213 | ||||||
| New Jersey Economic Development Authority Rev. (Goethals Bridge Replacement Project), 5%, 1/01/2028 | 470,000 | 523,162 | ||||||
| New Jersey Economic Development Authority Rev. (Goethals Bridge Replacement Project), AGM, 5%, 1/01/2031 | 1,415,000 | 1,568,358 | ||||||
| New Jersey Economic Development Authority Rev. (Goethals Bridge Replacement Project), AGM, 5.125%, 1/01/2039 | 870,000 | 959,697 | ||||||
| New Jersey Economic Development Authority Rev. (Goethals Bridge Replacement Project), AGM, 5.125%, 7/01/2042 | 435,000 | 477,821 | ||||||
| New Jersey Economic Development Authority Rev. (Provident Group - Montclair Properties LLC - Montclair State University Student Housing Project), ASSD GTY, 5%, 6/01/2037 | 1,970,000 | 2,247,573 | ||||||
| New Jersey Economic Development Authority Rev. (Provident Group - Montclair Properties LLC - Montclair State University Student Housing Project), ASSD GTY, 5%, 6/01/2042 | 2,190,000 | 2,469,269 | ||||||
| New Jersey Economic Development Authority Rev. (Provident Group - Rowan Properties LLC - Rowan University Student Housing Project), “A”, 5%, 1/01/2030 | 1,095,000 | 1,190,473 | ||||||
49
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| New Jersey - continued | ||||||||
| New Jersey Economic Development Authority Rev. (Provident Group - Rowan Properties LLC - Rowan University Student Housing Project), “A”, 5%, 1/01/2035 | $ | 1,570,000 | $ | 1,684,798 | ||||
| New Jersey Economic Development Authority Rev., School Facilities Construction, “DDD”, 5%, 6/15/2034 | 610,000 | 668,975 | ||||||
| New Jersey Economic Development Authority Rev., School Facilities Construction, “DDD”, 5%, 6/15/2035 | 510,000 | 557,660 | ||||||
| New Jersey Economic Development Authority Rev., School Facilities Construction, “DDD”, 5%, 6/15/2042 | 2,855,000 | 3,077,176 | ||||||
| New Jersey Economic Development Authority Rev., School Facilities Construction, “NN”, 5%, 3/01/2027 | 4,135,000 | 4,462,451 | ||||||
| New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), 4.875%, 9/15/2019 | 305,000 | 308,331 | ||||||
| New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), 5.25%, 9/15/2029 | 6,250,000 | 6,825,625 | ||||||
| New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), “A”, 5.625%, 11/15/2030 | 400,000 | 455,608 | ||||||
| New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), “B”, 5.625%, 11/15/2030 | 370,000 | 421,437 | ||||||
| New Jersey Economic Development Authority, State Lease Rev. (Juvenile Justice Commission Facilities Project), “C”, 5%, 6/15/2042 | 3,385,000 | 3,661,961 | ||||||
| New Jersey Economic Development Authority, Water Facilities Rev. (New Jersey American Water Co.), “A”, 5.7%, 10/01/2039 | 5,000,000 | 5,089,600 | ||||||
| New Jersey Economic Development Motor Vehicle Surcharges Subordinate Refunding Rev., “A”, 3.125%, 7/01/2029 | 1,915,000 | 1,923,732 | ||||||
| New Jersey Economic Development Motor Vehicle Surcharges Subordinate Refunding Rev., “A”, 3.125%, 7/01/2031 (u) | 8,400,000 | 8,425,704 | ||||||
| New Jersey Economic Development Motor Vehicle Surcharges Subordinate Refunding Rev., “A”, 5%, 7/01/2033 | 485,000 | 534,116 | ||||||
| New Jersey Economic Development Motor Vehicle Surcharges Subordinate Refunding Rev., “A”, BAM, 5%, 7/01/2027 | 1,105,000 | 1,293,867 | ||||||
| New Jersey Economic Development Motor Vehicle Surcharges Subordinate Refunding Rev., “A”, BAM, 5%, 7/01/2028 | 1,100,000 | 1,285,031 | ||||||
| New Jersey Educational Facilities Authority Rev. (University of Medicine & Dentistry), “B”, 7.5%, 12/01/2032 (Prerefunded 6/01/2019) | 4,195,000 | 4,235,901 | ||||||
| New Jersey Health Care Facilities, Financing Authority Rev. (University Hospital), “A”, AGM, 5%, 7/01/2046 | 5,485,000 | 6,050,613 | ||||||
| New Jersey Health Care Facilities, Financing Authority, State Contract Refunding Bonds (Hospital Asset Transformation Program), 5%, 10/01/2031 | 2,105,000 | 2,345,917 | ||||||
50
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| New Jersey - continued | ||||||||
| New Jersey Health Care Facilities, Financing Authority, State Contract Refunding Bonds (Hospital Asset Transformation Program), 5%, 10/01/2032 | $ | 2,100,000 | $ | 2,330,097 | ||||
| New Jersey Health Care Facilities, Financing Authority, State Contract Refunding Bonds (Hospital Asset Transformation Program), 5%, 10/01/2033 | 1,775,000 | 1,962,688 | ||||||
| New Jersey Health Care Facilities, Financing Authority, State Contract Refunding Bonds (Hospital Asset Transformation Program), 5%, 10/01/2034 | 1,785,000 | 1,967,177 | ||||||
| New Jersey Health Care Facilities, Financing Authority, State Contract Refunding Bonds (Hospital Asset Transformation Program), 5%, 10/01/2035 | 1,575,000 | 1,730,043 | ||||||
| New Jersey Health Care Facilities, Financing Authority, State Contract Refunding Bonds (Hospital Asset Transformation Program), 5%, 10/01/2036 | 1,835,000 | 2,008,187 | ||||||
| New Jersey Health Care Facilities, Financing Authority, State Contract Refunding Bonds (Hospital Asset Transformation Program), 5%, 10/01/2037 | 3,040,000 | 3,322,750 | ||||||
| New Jersey Higher Education Student Assistance Authority, Senior Student Loan Rev., “1A”, 2.75%, 12/01/2027 | 3,780,000 | 3,819,690 | ||||||
| New Jersey Higher Education Student Assistance Authority, Senior Student Loan Rev., “1A”, 3.5%, 12/01/2029 | 1,185,000 | 1,199,469 | ||||||
| New Jersey Higher Education Student Assistance Authority, Senior Student Loan Rev., “1B”, 2.95%, 12/01/2028 | 14,730,000 | 15,167,628 | ||||||
| New Jersey Housing & Mortgage Finance Agency, Single Family Housing Rev., “C”, 4.75%, 10/01/2050 (u) | 11,015,000 | 12,186,115 | ||||||
| New Jersey Tobacco Settlement Financing Corp., “A”, 5%, 6/01/2032 | 3,000,000 | 3,462,090 | ||||||
| New Jersey Tobacco Settlement Financing Corp., “A”, 5%, 6/01/2033 | 3,000,000 | 3,446,580 | ||||||
| New Jersey Tobacco Settlement Financing Corp., “A”, 5%, 6/01/2034 | 3,000,000 | 3,423,270 | ||||||
| New Jersey Tobacco Settlement Financing Corp., “A”, 5%, 6/01/2035 | 2,950,000 | 3,346,185 | ||||||
| New Jersey Transportation Trust Fund Authority, “B”, AAC, 5.5%, 9/01/2026 | 3,525,000 | 4,219,707 | ||||||
| New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement Rev., “A”, 5%, 6/15/2029 | 3,420,000 | 3,906,529 | ||||||
| New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement Rev., “A”, 5%, 6/15/2031 | 2,275,000 | 2,567,656 | ||||||
| New Jersey Transportation Trust Fund Authority, Federal Highway Reimbursement Rev., “A-1”, 5%, 6/15/2027 | 3,985,000 | 4,616,782 | ||||||
| New Jersey Transportation Trust Fund Authority, Transportation System, “A”, 5%, 6/15/2019 | 410,000 | 412,714 | ||||||
51
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| New Jersey - continued | ||||||||
| New Jersey Transportation Trust Fund Authority, Transportation System, “B”, NATL, 5.5%, 12/15/2020 | $ | 3,325,000 | $ | 3,521,075 | ||||
| New Jersey Transportation Trust Fund Authority, Transportation System, “B”, NATL, 5.5%, 12/15/2021 | 5,000,000 | 5,446,000 | ||||||
| New Jersey Transportation Trust Fund Authority, Transportation System, “C”, 5%, 6/15/2042 | 2,360,000 | 2,441,278 | ||||||
| New Jersey Transportation Trust Fund Authority, Transportation System, Capital Appreciation, “A”, 0%, 12/15/2037 | 25,000,000 | 11,639,000 | ||||||
| New Jersey Transportation Trust Fund Authority, Transportation System, Capital Appreciation, “C”, AAC, 0%, 12/15/2035 | 3,725,000 | 1,933,946 | ||||||
| New Jersey Transportation Trust Fund Authority, Transportation System, Capital Appreciation, “C”, AAC, 0%, 12/15/2036 | 9,720,000 | 4,783,698 | ||||||
| New Jersey Transportation Trust Fund Authority, Transportation System, Capital Appreciation, “C”, AGM, 0%, 12/15/2032 | 3,345,000 | 2,063,898 | ||||||
| New Jersey Transportation Trust Fund Authority, Transportation System, Capital Appreciation, “C”, NATL, 0%, 12/15/2031 | 5,000,000 | 3,131,850 | ||||||
|
|
|
|||||||
| $ | 189,131,616 | |||||||
| New Mexico - 0.8% | ||||||||
| Albuquerque, NM, Bernalillo County Water Utility Authority (Joint Water and Sewer System Improvement Rev.), 5%, 7/01/2033 | $ | 2,300,000 | $ | 2,754,296 | ||||
| Farmington, NM, Pollution Control Rev. (Public Service New Mexico), “D”, 5.9%, 6/01/2040 | 9,975,000 | 10,396,444 | ||||||
| New Mexico Mortgage Finance Authority, Single Family Mortgage Program, “A-1”, FNMA, 4%, 1/01/2049 | 1,855,000 | 1,978,283 | ||||||
| New Mexico Mortgage Finance Authority, Single Family Mortgage Program, “C”, FNMA, 4%, 1/01/2049 | 3,500,000 | 3,737,370 | ||||||
| New Mexico Municipal Energy Acquisition Authority, Gas Supply Rev., “A”, 5.028%, 11/01/2039 (Put Date 8/01/2019) | 11,435,000 | 11,553,467 | ||||||
|
|
|
|||||||
| $ | 30,419,860 | |||||||
| New York - 4.0% | ||||||||
| Brooklyn, NY, Arena Local Development Corp. (Barclays Center Project), 6%, 7/15/2030 (Prerefunded 1/15/2020) | $ | 2,015,000 | $ | 2,087,157 | ||||
| Build NYC Resource Corp. Rev. (Albert Einstein School of Medicine, Inc.), 5.5%, 9/01/2045 | 5,830,000 | 6,378,836 | ||||||
| Glen Cove, NY, Local Economic Assistance Corp. (Garvies Point Public Improvement Project), Capital Appreciation, “B”, 0%, 1/01/2045 | 1,610,000 | 436,954 | ||||||
| Glen Cove, NY, Local Economic Assistance Corp. (Garvies Point Public Improvement Project), Convertible Capital Appreciation, “C”, 0% to 1/01/2024, 5.625% to 1/01/2055 | 1,610,000 | 1,363,783 | ||||||
| Hempstead, NY, Local Development Corp. Rev. (Hofstra University Project), 5%, 7/01/2025 | 1,450,000 | 1,551,805 | ||||||
52
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| New York - continued | ||||||||
| Hempstead, NY, Local Development Corp. Rev. (Hofstra University Project), 5%, 7/01/2026 | $ | 1,080,000 | $ | 1,155,092 | ||||
| Hudson Yards, NY, Infrastructure Corp. Rev., “A”, 5.75%, 2/15/2047 (Prerefunded 2/15/2021) | 2,450,000 | 2,644,040 | ||||||
| Hudson Yards, NY, Infrastructure Corp. Rev., “A”, Unrefunded Balance, 5.75%, 2/15/2047 | 1,500,000 | 1,608,120 | ||||||
| Metropolitan Transportation Authority (Hudson Rail Yards Trust), “A”, 5%, 11/15/2046 | 13,870,000 | 14,110,506 | ||||||
| New York Dormitory Authority Rev. (Orange Regional Medical Center Obligated Group Rev.), 5%, 12/01/2033 | 100,000 | 114,453 | ||||||
| New York Dormitory Authority Rev., Non-State Supported Debt (Orange Regional Medical Center), “A”, 5%, 12/01/2035 | 200,000 | 227,194 | ||||||
| New York Dormitory Authority Rev., State Personal Income Tax, “A”, 5%, 12/15/2025 | 5,000,000 | 5,603,350 | ||||||
| New York Energy Research & Development Authority Pollution Control Rev. (New York Electric & Gas Corp. Project), “C”, 2%, 6/01/2029 (Put Date 5/01/2020) | 3,485,000 | 3,500,229 | ||||||
| New York Environmental Facilities Corp., State Revolving Funds Rev., “C”, 5%, 5/15/2041 | 2,745,000 | 2,915,849 | ||||||
| New York Liberty Development Corp. Rev. (Goldman Sachs Headquarters), 5.25%, 10/01/2035 | 11,660,000 | 14,960,013 | ||||||
| New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “1”, 5%, 11/15/2044 | 16,005,000 | 17,059,729 | ||||||
| New York Liberty Development Corp., Liberty Rev. (3 World Trade Center Project), “2”, 5.375%, 11/15/2040 | 3,190,000 | 3,448,645 | ||||||
| New York Liberty Development Corp., Liberty Rev. (4 World Trade Center Project), 5%, 11/15/2031 | 2,300,000 | 2,486,668 | ||||||
| New York Mortgage Agency Rev., “54”, 4%, 4/01/2047 | 4,415,000 | 4,662,019 | ||||||
| New York Mortgage Agency Rev., “208”, 4%, 10/01/2048 | 7,890,000 | 8,364,741 | ||||||
| New York Thruway Authority General Rev., Junior Indebtedness Obligations, “A”, 5%, 5/01/2019 | 3,325,000 | 3,334,210 | ||||||
| New York Transportation Development Corp., Special Facilities Rev. (American Airlines, Inc. John F. Kennedy International Airport Project), 5%, 8/01/2026 | 1,490,000 | 1,563,457 | ||||||
| New York Transportation Development Corp., Special Facilities Rev. (American Airlines, Inc. John F. Kennedy International Airport Project), 5%, 8/01/2031 | 765,000 | 796,763 | ||||||
| New York Transportation Development Corp., Special Facilities Rev. (Delta Airlines, Inc. LaGuardia Airport Terminals C&D Redevelopment Project), 5%, 1/01/2032 | 5,475,000 | 6,385,383 | ||||||
| New York Transportation Development Corp., Special Facilities Rev. (Delta Airlines, Inc. LaGuardia Airport Terminals C&D Redevelopment Project), 5%, 1/01/2033 | 3,190,000 | 3,707,578 | ||||||
53
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| New York - continued | ||||||||
| New York Transportation Development Corp., Special Facilities Rev. (Delta Airlines, Inc. LaGuardia Airport Terminals C&D Redevelopment Project), 5%, 1/01/2034 | $ | 1,800,000 | $ | 2,084,832 | ||||
| New York Transportation Development Corp., Special Facilities Rev. (Delta Airlines, Inc. LaGuardia Airport Terminals C&D Redevelopment Project), 4%, 1/01/2036 | 1,315,000 | 1,362,577 | ||||||
| New York Urban Development Corp., State Personal Income Tax Rev., “C”, 5%, 3/15/2034 | 1,455,000 | 1,740,980 | ||||||
| New York, NY, “B-1”, 5%, 12/01/2041 | 3,500,000 | 4,043,585 | ||||||
| New York, NY, City Housing Development Corp., Multifamily Housing Rev. (8 Spruce Street), “F”, 4.5%, 2/15/2048 | 5,574,420 | 5,800,686 | ||||||
| New York, NY, City Transitional Finance Authority Building Aid Rev., “S-3”, 5%, 7/15/2043 | 1,025,000 | 1,205,257 | ||||||
| New York, NY, Industrial Development Agency, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), 5%, 7/01/2028 | 1,570,000 | 1,687,577 | ||||||
| New York, NY, Municipal Water Finance Authority, Water & Sewer System Rev., “CC-1”, 5%, 6/15/2046 | 7,000,000 | 8,044,120 | ||||||
| Onondaga, NY, Civic Development Corp. Rev. (St. Joseph’s Hospital Health Center), 5%, 7/01/2025 (Prerefunded 7/01/2019) | 110,000 | 110,941 | ||||||
| Onondaga, NY, Civic Development Corp. Rev. (St. Joseph’s Hospital Health Center), 5.125%, 7/01/2031 (Prerefunded 7/01/2019) | 110,000 | 110,975 | ||||||
| Port Authority of NY & NJ (170th Series), 5%, 12/01/2019 | 1,765,000 | 1,804,201 | ||||||
| Port Authority of NY & NJ, Special Obligation Rev. (JFK International Air Terminal LLC), 6%, 12/01/2036 | 2,315,000 | 2,456,585 | ||||||
| Tobacco Settlement Asset Securitization Corp., NY, “A”, 5%, 6/01/2034 | 950,000 | 1,077,072 | ||||||
| Tobacco Settlement Asset Securitization Corp., NY, “A”, 5%, 6/01/2035 | 480,000 | 541,992 | ||||||
| Tobacco Settlement Asset Securitization Corp., NY, “A”, 5%, 6/01/2041 | 2,710,000 | 2,923,656 | ||||||
|
|
|
|||||||
| $ | 145,461,610 | |||||||
| North Carolina - 0.7% | ||||||||
| Charlotte, NC, Water & Sewer Systems Rev., 4%, 7/01/2047 | $ | 6,000,000 | $ | 6,445,260 | ||||
| North Carolina Medical Care Commission, Health Care Facilities Rev. (Pennybyrn at Maryfield), 5%, 10/01/2025 | 205,000 | 229,940 | ||||||
| North Carolina Medical Care Commission, Health Care Facilities Rev. (Pennybyrn at Maryfield), 5%, 10/01/2030 | 260,000 | 278,811 | ||||||
| North Carolina Medical Care Commission, Health Care Facilities Rev. (Pennybyrn at Maryfield), 5%, 10/01/2035 | 285,000 | 298,939 | ||||||
| North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (United Church Homes and Services), “A”, 5%, 9/01/2037 | 100,000 | 104,722 | ||||||
54
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| North Carolina - continued | ||||||||
| North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (United Church Homes and Services), “C”, 5%, 9/01/2041 | $ | 370,000 | $ | 388,197 | ||||
| North Carolina Medical Care Commission, Retirement Facilities First Mortgage Rev. (United Church Homes and Services), “C”, 5%, 9/01/2046 | 1,350,000 | 1,407,659 | ||||||
| North Carolina Turnpike Authority, Monroe Expressway Toll Rev., “A”, 5%, 7/01/2042 | 610,000 | 665,644 | ||||||
| North Carolina Turnpike Authority, Monroe Expressway Toll Rev., “A”, 5%, 7/01/2047 | 1,195,000 | 1,299,228 | ||||||
| North Carolina Turnpike Authority, Monroe Expressway Toll Rev., “A”, 5%, 7/01/2051 | 2,440,000 | 2,646,351 | ||||||
| North Carolina Turnpike Authority, Monroe Expressway Toll Rev., “A”, 5%, 7/01/2054 | 975,000 | 1,056,169 | ||||||
| North Carolina Turnpike Authority, Triangle Expressway System Rev., AGM, 5%, 1/01/2031 | 1,600,000 | 1,874,320 | ||||||
| Northern Hospital District, Surry County, NC, Health Care Facilities Rev., 5%, 10/01/2031 | 1,250,000 | 1,368,913 | ||||||
| Northern Hospital District, Surry County, NC, Health Care Facilities Rev., 5%, 10/01/2033 | 1,375,000 | 1,494,597 | ||||||
| University of North Carolina Board of Governors, Hospitals at Chapel Hill Rev., 5%, 2/01/2046 | 5,065,000 | 5,716,004 | ||||||
|
|
|
|||||||
| $ | 25,274,754 | |||||||
| North Dakota - 0.5% | ||||||||
| Country of Ward, ND, Health Care Facilities Rev. (Trinity Obligated Group), “C”, 5%, 6/01/2034 | $ | 3,105,000 | $ | 3,492,100 | ||||
| Country of Ward, ND, Health Care Facilities Rev. (Trinity Obligated Group), “C”, 5%, 6/01/2038 | 3,620,000 | 4,007,050 | ||||||
| Country of Ward, ND, Health Care Facilities Rev. (Trinity Obligated Group), “C”, 5%, 6/01/2043 | 2,585,000 | 2,824,707 | ||||||
| North Dakota Housing Finance Agency Rev. (Home Mortgage Finance Program), “A”, 4%, 7/01/2034 | 675,000 | 699,152 | ||||||
| North Dakota Housing Finance Agency Rev. (Home Mortgage Finance Program), “D”, 4.25%, 1/01/2049 (u) | 7,375,000 | 7,951,799 | ||||||
|
|
|
|||||||
| $ | 18,974,808 | |||||||
| Ohio - 2.5% | ||||||||
| American Municipal Power, Inc. Rev. (AMP Fremont Energy Center Project), “B”, 5%, 2/15/2024 (Prerefunded 2/15/2022) | $ | 1,500,000 | $ | 1,642,890 | ||||
| Buckeye, OH, Tobacco Settlement Financing Authority Rev., “A-2”, 5.125%, 6/01/2024 | 2,350,000 | 2,241,312 | ||||||
| Buckeye, OH, Tobacco Settlement Financing Authority Rev., “A-2”, 6.5%, 6/01/2047 | 8,500,000 | 8,519,635 | ||||||
55
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Ohio - continued | ||||||||
| Cleveland-Cuyahoga County, OH, Port Authority Development Rev. (Euclid Avenue Development Corp. Project), 5%, 8/01/2044 | $ | 1,225,000 | $ | 1,236,013 | ||||
| Cleveland-Cuyahoga County, OH, Port Authority Development Rev. (Flats East Development Project), “B”, 7%, 5/15/2040 | 1,030,000 | 1,103,243 | ||||||
| Cuyahoga County, OH, Hospital Rev. (Metrohealth System), 4.75%, 2/15/2047 | 4,065,000 | 4,219,917 | ||||||
| Cuyahoga County, OH, Hospital Rev. (Metrohealth System), 5.5%, 2/15/2052 | 890,000 | 995,652 | ||||||
| Cuyahoga County, OH, Hospital Rev. (Metrohealth System), 5.5%, 2/15/2057 | 9,355,000 | 10,424,464 | ||||||
| Miami County, OH, Hospital Facilities Rev., “A”, 5%, 8/01/2049 | 9,845,000 | 11,142,768 | ||||||
| Montgomery County, OH, Health Care & Multifamily Housing Rev. (St. Leonard), 6.375%, 4/01/2030 | 1,915,000 | 1,978,214 | ||||||
| Montgomery County, OH, Health Care & Multifamily Housing Rev. (St. Leonard), 6.625%, 4/01/2040 | 2,770,000 | 2,874,041 | ||||||
| Ohio Air Quality Development Authority, Facilities Rev. (Pratt Paper LLC Project), 3.75%, 1/15/2028 | 190,000 | 197,942 | ||||||
| Ohio Air Quality Development Authority, Facilities Rev. (Pratt Paper LLC Project), 4.25%, 1/15/2038 | 250,000 | 257,948 | ||||||
| Ohio Air Quality Development Authority, Facilities Rev. (Pratt Paper LLC Project), 4.5%, 1/15/2048 | 330,000 | 343,843 | ||||||
| Ohio Higher Educational Facility Commission Rev. (Franciscan University of Steubenville), 5%, 11/01/2041 | 3,000,000 | 3,344,400 | ||||||
| Ohio Housing Finance Agency, 4.5%, 9/01/2049 (u) | 9,280,000 | 10,197,699 | ||||||
| Ohio Housing Finance Agency Residential Mortgage Rev. (Mortgage-Backed Securities Program), “A”, 4.5%, 9/01/2048 (u) | 4,995,000 | 5,447,997 | ||||||
| Ohio Tax Exempt Private Activity (Portsmouth Bypass Project), AGM, 5%, 12/31/2035 | 7,740,000 | 8,673,521 | ||||||
| Southeastern Ohio Port Authority, Hospital Facilities Improvement Rev. (Memorial Health System Obligated Group Project), 5.5%, 12/01/2029 | 130,000 | 145,669 | ||||||
| Southeastern Ohio Port Authority, Hospital Facilities Improvement Rev. (Memorial Health System Obligated Group Project), 5%, 12/01/2035 | 720,000 | 768,866 | ||||||
| Southeastern Ohio Port Authority, Hospital Facilities Improvement Rev. (Memorial Health System Obligated Group Project), 5%, 12/01/2043 | 925,000 | 949,522 | ||||||
| Southeastern Ohio Port Authority, Hospital Facilities Improvement Rev. (Memorial Health System Obligated Group Project), 5.5%, 12/01/2043 | 1,130,000 | 1,197,224 | ||||||
| Summit County, OH, Port Authority Building Rev. (Flats East Development Recovery Zone Facility Bonds), 6.875%, 5/15/2040 | 405,000 | 433,002 | ||||||
| The Ohio State University, Special Purpose Rev., “A”, 5%, 6/01/2038 (u) | 3,355,000 | 3,726,600 | ||||||
56
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Ohio - continued | ||||||||
| The Ohio State University, Special Purpose Rev., “A”, 5%, 6/01/2043 (u) | $ | 8,150,000 | $ | 9,018,464 | ||||
|
|
|
|||||||
| $ | 91,080,846 | |||||||
| Oklahoma - 0.6% | ||||||||
| Catoosa, OK, Industrial Authority Sales Tax Rev., 4%, 10/01/2028 | $ | 345,000 | $ | 349,688 | ||||
| Oklahoma County, OK, Home Finance Authority, Single Family Mortgage Rev., “A”, GNMA, 5.4%, 10/01/2038 | 150,000 | 152,409 | ||||||
| Oklahoma Development Finance Authority, First Mortgage Rev. (Sommerset Project), 5%, 7/01/2042 | 1,495,000 | 1,590,142 | ||||||
| Oklahoma Development Finance Authority, Health System Rev. (OU Medicine Project), “B”, 5%, 8/15/2029 | 150,000 | 176,347 | ||||||
| Oklahoma Development Finance Authority, Health System Rev. (OU Medicine Project), “B”, 5%, 8/15/2033 | 810,000 | 926,008 | ||||||
| Oklahoma Development Finance Authority, Health System Rev. (OU Medicine Project), “B”, 5%, 8/15/2038 | 1,135,000 | 1,275,150 | ||||||
| Oklahoma Development Finance Authority, Health System Rev. (OU Medicine Project), “B”, 5.25%, 8/15/2043 | 1,215,000 | 1,387,433 | ||||||
| Oklahoma Development Finance Authority, Health System Rev. (OU Medicine Project), “B”, 5.25%, 8/15/2048 | 1,140,000 | 1,294,470 | ||||||
| Oklahoma Housing Finance Agency, Single Family Mortgage Rev. (Homeownership Loan Project), “A”, 4.75%, 9/01/2048 | 2,985,000 | 3,293,709 | ||||||
| Tulsa, OK, Airport Improvement Trust Rev., “A”, 5%, 6/01/2045 | 755,000 | 822,791 | ||||||
| Tulsa, OK, Industrial Authority Rev. (University of Tulsa), 6%, 10/01/2027 | 4,670,000 | 4,759,384 | ||||||
| Tulsa, OK, Municipal Airport Trust Rev. (American Airlines, Inc.), 5%, 6/01/2035 (Put Date 6/01/2025) | 255,000 | 279,919 | ||||||
| Tulsa, OK, Municipal Airport Trust Rev. (American Airlines, Inc.), “B”, 5.5%, 6/01/2035 | 3,365,000 | 3,636,017 | ||||||
| Tulsa, OK, Municipal Airport Trust Rev. (American Airlines, Inc.), “B”, 5.5%, 12/01/2035 | 1,440,000 | 1,556,338 | ||||||
|
|
|
|||||||
| $ | 21,499,805 | |||||||
| Oregon - 1.0% | ||||||||
| Oregon Facilities Authority Rev. (Legacy Health), “A”, 5%, 6/01/2046 | $ | 9,000,000 | $ | 10,105,650 | ||||
| Oregon Health & Sciences University Rev., “B”, 5%, 7/01/2034 | 7,500,000 | 8,769,225 | ||||||
| Port of Portland, OR, International Airport Rev., ”24B“, 5%, 7/01/2042 | 1,340,000 | 1,515,741 | ||||||
| State of Oregon, Housing & Community Services Department Mortgage Rev. (Single-Family Mortgage Program), “D”, 4.75%, 1/01/2050 (u) | 8,280,000 | 9,134,330 | ||||||
| Washington Clackamas & Yamhill Counties, OR, Sherwood School District No. 88J, General Obligation, “B”, 5%, 6/15/2030 | 4,000,000 | 4,870,200 | ||||||
57
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Oregon - continued | ||||||||
| Washington Clackamas & Yamhill Counties, OR, Sherwood School District No. 88J, General Obligation, “B”, 5%, 6/15/2033 | $ | 1,750,000 | $ | 2,095,713 | ||||
|
|
|
|||||||
| $ | 36,490,859 | |||||||
| Pennsylvania - 6.6% | ||||||||
| Allegheny County, PA, Higher Education Building Authority Rev. (Robert Morris University), 5%, 10/15/2037 | $ | 240,000 | $ | 261,554 | ||||
| Allegheny County, PA, Hospital Development Authority Rev. (Allegheny Health Network Obligated Group), “A”, 4%, 4/01/2044 | 13,590,000 | 13,936,001 | ||||||
| Allentown, PA, Neighborhood Improvement Zone Development Authority Tax Rev. (City Center Project), 5%, 5/01/2023 | 105,000 | 112,464 | ||||||
| Allentown, PA, Neighborhood Improvement Zone Development Authority Tax Rev. (City Center Project), 5%, 5/01/2028 | 135,000 | 151,975 | ||||||
| Allentown, PA, Neighborhood Improvement Zone Development Authority Tax Rev. (City Center Project), 5%, 5/01/2033 | 135,000 | 149,746 | ||||||
| Allentown, PA, Neighborhood Improvement Zone Development Authority Tax Rev. (City Center Project), 5%, 5/01/2042 | 330,000 | 357,420 | ||||||
| Allentown, PA, Neighborhood Improvement Zone Development Authority Tax Rev. (City Center Refunding Project), 5%, 5/01/2027 | 2,000,000 | 2,232,480 | ||||||
| Berks County, PA, Reading School District, AGM, 5%, 3/01/2036 | 550,000 | 634,365 | ||||||
| Chester County, PA, Industrial Development Authority Educational Facilities Rev. (Avon Grove Charter School), “A”, 4.75%, 12/15/2037 | 1,115,000 | 1,155,954 | ||||||
| Chester County, PA, Industrial Development Authority Educational Facilities Rev. (Avon Grove Charter School), “A”, 5%, 12/15/2047 | 530,000 | 554,311 | ||||||
| Chester County, PA, Industrial Development Authority Educational Facilities Rev. (Avon Grove Charter School), “A”, 5%, 12/15/2051 | 645,000 | 669,852 | ||||||
| Commonwealth of Pennsylvania, Tobacco Master Settlement Financing Authority Rev., 5%, 6/01/2032 | 1,475,000 | 1,726,488 | ||||||
| Commonwealth of Pennsylvania, Tobacco Master Settlement Financing Authority Rev., 5%, 6/01/2033 | 1,260,000 | 1,469,702 | ||||||
| Commonwealth of Pennsylvania, Tobacco Master Settlement Financing Authority Rev., 5%, 6/01/2034 | 630,000 | 732,236 | ||||||
| Cumberland County, PA, Municipal Authority Rev. (Asbury Atlantic, Inc.), 6%, 1/01/2030 | 715,000 | 733,540 | ||||||
| Cumberland County, PA, Municipal Authority Rev. (Asbury Atlantic, Inc.), 6%, 1/01/2040 | 1,910,000 | 1,951,638 | ||||||
| Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 5%, 1/01/2021 | 730,000 | 761,390 | ||||||
| Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 5%, 1/01/2022 | 1,275,000 | 1,358,092 | ||||||
| Cumberland County, PA, Municipal Authority Rev. (Diakon Lutheran Social Ministries Project), 5%, 1/01/2023 | 915,000 | 993,269 | ||||||
58
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Pennsylvania - continued | ||||||||
| Dallas, PA, Municipal Authority, University Rev. (Misericordia University Project), 5%, 5/01/2029 | $ | 1,440,000 | $ | 1,546,632 | ||||
| Dallas, PA, Municipal Authority, University Rev. (Misericordia University Project), 5%, 5/01/2048 | 1,730,000 | 1,831,067 | ||||||
| Delaware County, PA, Industrial Development Authority, Resource Recovery Facilities Rev. (American Ref-Fuel Co.), “A”, 6.2%, 7/01/2019 | 70,000 | 70,176 | ||||||
| Delaware Valley, PA, Regional Finance Authority, “C”, FLR, 2.51% (LIBOR - 3mo. + 0.75%), 6/01/2037 | 7,315,000 | 6,620,002 | ||||||
| East Hempfield Township, PA, Industrial Development Authority Rev. (Student Services, Inc., Student Housing Project at Millersville University of Pennsylvania), 5%, 7/01/2030 | 365,000 | 398,460 | ||||||
| East Hempfield Township, PA, Industrial Development Authority Rev. (Student Services, Inc., Student Housing Project at Millersville University of Pennsylvania), 5%, 7/01/2035 | 470,000 | 504,587 | ||||||
| East Hempfield Township, PA, Industrial Development Authority Rev. (Student Services, Inc., Student Housing Project at Millersville University of Pennsylvania), 5%, 7/01/2039 | 485,000 | 510,535 | ||||||
| East Hempfield Township, PA, Industrial Development Authority Rev. (Student Services, Inc., Student Housing Project at Millersville University of Pennsylvania), 5%, 7/01/2046 | 265,000 | 277,415 | ||||||
| Lehigh County, PA, Water and Sewer Authority Rev. (Allentown Concession), “A”, 5%, 12/01/2043 | 9,610,000 | 10,619,242 | ||||||
| Lehigh County, PA, Water and Sewer Authority Rev. (Allentown Concession), Capital Appreciation, “B”, 0%, 12/01/2036 | 12,095,000 | 6,381,080 | ||||||
| Luzerne County, PA, “A”, AGM, 5%, 12/15/2019 | 510,000 | 519,705 | ||||||
| Luzerne County, PA, “A”, AGM, 5%, 12/15/2021 | 755,000 | 815,377 | ||||||
| Luzerne County, PA, “A”, AGM, 5%, 12/15/2023 | 675,000 | 761,474 | ||||||
| Luzerne County, PA, “A”, AGM, 5%, 12/15/2024 | 690,000 | 790,844 | ||||||
| Luzerne County, PA, “A”, AGM, 5%, 12/15/2026 | 630,000 | 740,048 | ||||||
| Luzerne County, PA, “A”, AGM, 5%, 11/15/2029 | 5,835,000 | 6,741,117 | ||||||
| Luzerne County, PA, “A”, AGM, 5%, 12/15/2029 | 1,570,000 | 1,840,071 | ||||||
| Luzerne County, PA, Wilkes-Barre Area School District, General Obligation, BAM, 5%, 4/15/2059 | 940,000 | 1,057,321 | ||||||
| Montgomery County, PA, Industrial Development Authority Pollution Control Rev. (Peco Energy Company Project), “A”, 2.55%, 6/01/2029 (Put Date 6/01/2020) | 1,095,000 | 1,096,851 | ||||||
| Montgomery County, PA, Industrial Development Authority Rev. (Whitemarsh Continuing Care Retirement Community Project), 5.375%, 1/01/2050 | 1,015,000 | 1,027,657 | ||||||
| Northeastern, PA, Hospital & Education Authority Rev. (Wilkes University), “B”, 5.25%, 3/01/2031 | 1,140,000 | 1,274,634 | ||||||
| Northeastern, PA, Hospital & Education Authority Rev. (Wilkes University), “B”, 5.25%, 3/01/2037 | 1,780,000 | 1,952,998 | ||||||
59
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Pennsylvania - continued | ||||||||
| Pennsylvania Economic Development Financing Authority, Sewer Sludge Disposal Rev. (Philadelphia Biosolids Facility), 6.25%, 1/01/2032 | $ | 3,110,000 | $ | 3,185,604 | ||||
| Pennsylvania Economic Development Financing Authority, Solid Waste Disposal Rev. (Waste Management, Inc. Project), 2.35%, 8/01/2045 (Put Date 5/01/2019) | 6,800,000 | 6,800,612 | ||||||
| Pennsylvania Economic Development Financing Authority, Solid Waste Refunding Rev. (Republic Services, Inc. Project), “A”, 2.4%, 4/01/2019 | 5,025,000 | 5,025,000 | ||||||
| Pennsylvania Higher Educational Facilities Authority Rev. (Duquesne University), “A”, 5%, 3/01/2038 | 1,000,000 | 1,175,240 | ||||||
| Pennsylvania Higher Educational Facilities Authority Rev. (Duquesne University), “A”, 5%, 3/01/2039 | 250,000 | 293,135 | ||||||
| Pennsylvania Higher Educational Facilities Authority Rev. (Edinboro University Foundation), 5.8%, 7/01/2030 (Prerefunded 7/01/2020) | 510,000 | 536,204 | ||||||
| Pennsylvania Higher Educational Facilities Authority Rev. (Shippensburg University Student Services, Inc. Housing Project), 6.25%, 10/01/2043 (Prerefunded 10/01/2021) | 2,305,000 | 2,566,963 | ||||||
| Pennsylvania Higher Educational Facilities Authority Rev. (Shippensburg University Student Services, Inc. Housing Project), 5%, 10/01/2044 (Prerefunded 10/01/2022) | 3,915,000 | 4,354,654 | ||||||
| Pennsylvania Higher Educational Facilities Authority Rev. (University of Pennsylvania), “A”, 5%, 2/15/2048 | 20,205,000 | 23,899,282 | ||||||
| Pennsylvania Housing Finance Agency, Single Family Mortgage Rev., “128A”, 4.75%, 4/01/2033 (u) | 7,640,000 | 8,287,796 | ||||||
| Philadelphia, PA, Airport Rev., “B”, 5%, 7/01/2033 | 4,215,000 | 4,899,980 | ||||||
| Philadelphia, PA, Airport Rev., “B”, 5%, 7/01/2034 | 250,000 | 289,688 | ||||||
| Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School Project), 6%, 8/01/2035 (Prerefunded 8/01/2020) | 415,000 | 438,539 | ||||||
| Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School Project), “A”, 5.625%, 8/01/2036 | 315,000 | 324,598 | ||||||
| Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School Project), “A”, 5.25%, 8/01/2046 | 2,090,000 | 2,148,708 | ||||||
| Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School Project), “A”, 5.75%, 8/01/2046 | 1,700,000 | 1,746,869 | ||||||
| Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School Project), “A”, 5.375%, 8/01/2051 | 1,530,000 | 1,575,150 | ||||||
| Philadelphia, PA, Authority for Industrial Development Rev. (MaST Charter School Project), “B”, 6%, 8/01/2051 | 1,180,000 | 1,223,011 | ||||||
| Philadelphia, PA, Authority for Industrial Development Rev. (Philadelphia Performing Arts Charter School Project), 6.5%, 6/15/2033 | 2,425,000 | 2,501,679 | ||||||
60
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Pennsylvania - continued | ||||||||
| Philadelphia, PA, Authority for Industrial Development Rev. (Philadelphia Performing Arts Charter School Project), 6.75%, 6/15/2043 | $ | 1,175,000 | $ | 1,211,789 | ||||
| Philadelphia, PA, Authority for Industrial Development Rev. (Tacony Academy Charter School Project), “A-1”, 6.75%, 6/15/2033 | 150,000 | 164,828 | ||||||
| Philadelphia, PA, Authority for Industrial Development Rev. (Tacony Academy Charter School Project), “A-1”, 7%, 6/15/2043 | 355,000 | 388,466 | ||||||
| Philadelphia, PA, Authority for Industrial Development Rev. (Thomas Jefferson University), “A”, 5%, 9/01/2035 | 1,040,000 | 1,190,301 | ||||||
| Philadelphia, PA, Authority for Industrial Development Rev. (Thomas Jefferson University), “A”, 5%, 9/01/2042 | 10,810,000 | 12,178,870 | ||||||
| Philadelphia, PA, Authority for Industrial Development, Multifamily Housing Rev. (University Square Apartment Project-Section 8), “I”, 5%, 12/01/2037 | 2,080,000 | 2,298,629 | ||||||
| Philadelphia, PA, Authority for Industrial Development, Multifamily Housing Rev. (University Square Apartment Project-Section 8), “I”, 5%, 12/01/2058 | 8,300,000 | 8,938,436 | ||||||
| Philadelphia, PA, Authority for Industrial Development, Multifamily Housing Rev. (University Square Apartment Project-Section 8), “III”, 5.25%, 12/01/2047 | 350,000 | 353,049 | ||||||
| Philadelphia, PA, Authority for Industrial Development, Multifamily Housing Rev. (University Square Apartment Project-Section 8), “III”, 5.5%, 12/01/2058 | 505,000 | 510,823 | ||||||
| Philadelphia, PA, Authority for Industrial Development, Senior Living Facilities Rev. (Wesley Enhanced Living Obligated Group), “A”, 5%, 7/01/2037 | 565,000 | 586,611 | ||||||
| Philadelphia, PA, Authority for Industrial Development, Senior Living Facilities Rev. (Wesley Enhanced Living Obligated Group), “A”, 5%, 7/01/2042 | 1,005,000 | 1,036,436 | ||||||
| Philadelphia, PA, Authority for Industrial Development, Senior Living Facilities Rev. (Wesley Enhanced Living Obligated Group), “A”, 5%, 7/01/2049 | 1,570,000 | 1,611,495 | ||||||
| Philadelphia, PA, Gas Works Rev. (1998 General Ordinance), “15”, 5%, 8/01/2042 | 9,075,000 | 10,285,423 | ||||||
| Philadelphia, PA, Gas Works Rev., “14”, AGM, 5%, 10/01/2033 | 2,910,000 | 3,380,169 | ||||||
| Philadelphia, PA, Redevelopment Authority Refunding Rev. (Neighborhood Transformation Initiative), BAM, 5%, 4/15/2024 | 1,900,000 | 2,062,583 | ||||||
| Philadelphia, PA, School District, “A”, 5%, 9/01/2033 | 310,000 | 360,542 | ||||||
| Philadelphia, PA, School District, “A”, 5%, 9/01/2035 | 770,000 | 887,995 | ||||||
| Philadelphia, PA, School District, “A”, 5%, 9/01/2036 | 385,000 | 441,957 | ||||||
| Philadelphia, PA, School District, “A”, 5%, 9/01/2037 | 385,000 | 439,324 | ||||||
| Philadelphia, PA, School District, “A”, 5%, 9/01/2038 | 385,000 | 437,656 | ||||||
61
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Pennsylvania - continued | ||||||||
| Philadelphia, PA, School District, “B”, 5%, 9/01/2043 | $ | 1,160,000 | $ | 1,303,156 | ||||
| Philadelphia, PA, School District, “F”, 5%, 9/01/2037 | 1,020,000 | 1,147,612 | ||||||
| Philadelphia, PA, School District, “F”, 5%, 9/01/2038 | 255,000 | 286,187 | ||||||
| Reading, PA, School District, “A”, 5%, 4/01/2020 | 1,000,000 | 1,028,770 | ||||||
| State Public School Building Authority, PA, School Lease Rev. (School District of Philadelphia Project), 5%, 4/01/2028 | 1,870,000 | 1,990,914 | ||||||
| State Public School Building Authority, PA, School Lease Rev. (School District of Philadelphia Project), “A”, AGM, 5%, 6/01/2030 | 2,000,000 | 2,352,020 | ||||||
| State Public School Building Authority, PA, School Lease Rev. (School District of Philadelphia Project), “A”, AGM, 5%, 6/01/2032 | 7,820,000 | 9,080,662 | ||||||
| State Public School Building Authority, PA, School Lease Rev. (School District of Philadelphia Project), “A”, AGM, 5%, 6/01/2033 | 22,255,000 | 25,698,516 | ||||||
| Washington County, PA, Redevelopment Authority Refunding Rev. (Victory Centre Tax Increment Financing Project), 4%, 7/01/2023 | 140,000 | 140,666 | ||||||
| Washington County, PA, Redevelopment Authority Refunding Rev. (Victory Centre Tax Increment Financing Project), 5%, 7/01/2035 | 80,000 | 82,336 | ||||||
| West Shore, PA, Area Authority Rev. (Messiah Village Project), “A”, 5%, 7/01/2030 | 445,000 | 476,466 | ||||||
| West Shore, PA, Area Authority Rev. (Messiah Village Project), “A”, 5%, 7/01/2035 | 435,000 | 459,547 | ||||||
|
|
|
|||||||
| $ | 241,404,716 | |||||||
| Puerto Rico - 5.8% | ||||||||
| Commonwealth of Puerto Rico Aqueduct & Sewer Authority Rev., ”A“, ASSD GTY, 5%, 7/01/2028 | $ | 3,235,000 | $ | 3,329,333 | ||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ASSD GTY, 5.25%, 7/01/2041 | 4,050,000 | 4,434,669 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”A“, NATL, 4.75%, 7/01/2038 | 3,675,000 | 3,656,662 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”CC“, AGM, 5.5%, 7/01/2029 | 850,000 | 972,094 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”CC“, AGM, 5.25%, 7/01/2032 | 625,000 | 701,700 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”CC“, AGM, 5.25%, 7/01/2033 | 1,630,000 | 1,826,594 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”CC“, AGM, 5.25%, 7/01/2036 | 2,720,000 | 3,023,906 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”D“, AGM, 5%, 7/01/2032 | 5,005,000 | 5,125,971 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”J“, NATL, 5%, 7/01/2029 | 365,000 | 366,497 | ||||||
62
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Puerto Rico - continued | ||||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”L“, AAC, 5.25%, 7/01/2038 | $ | 17,370,000 | $ | 18,758,037 | ||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”L“, ASSD GTY, 5.25%, 7/01/2041 | 4,475,000 | 4,900,035 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”L“, NATL, 5.25%, 7/01/2035 | 8,390,000 | 8,919,996 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”M“, ASSD GTY, 5%, 7/01/2032 | 660,000 | 670,943 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”N“, AAC, 5.25%, 7/01/2030 | 5,350,000 | 5,860,871 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”N“, AAC, 5.25%, 7/01/2031 | 1,800,000 | 1,970,370 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”N“, ASSD GTY, 5.25%, 7/01/2036 | 5,510,000 | 6,125,247 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”N“, NATL, 5.25%, 7/01/2032 | 1,515,000 | 1,624,186 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”N“, NATL, 5.25%, 7/01/2033 | 3,330,000 | 3,564,898 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., ”Y“, AGM, 6.25%, 7/01/2021 | 6,740,000 | 7,012,296 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., Capital Appreciation, ”N“, AAC, 0%, 7/01/2019 | 890,000 | 881,768 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., Capital Appreciation, ”N“, AAC, 0%, 7/01/2020 | 880,000 | 833,712 | ||||||
| Commonwealth of Puerto Rico Highway & Transportation Authority Rev., Unrefunded Balance, ”A“, NATL, 5%, 7/01/2038 | 570,000 | 570,804 | ||||||
| Commonwealth of Puerto Rico, ”A“, NATL, 5.5%, 7/01/2021 | 570,000 | 592,897 | ||||||
| Commonwealth of Puerto Rico, Infrastructure Financing Authority, Capital Appreciation, ”A“, AAC, 0%, 7/01/2034 | 15,570,000 | 6,777,621 | ||||||
| Commonwealth of Puerto Rico, Infrastructure Financing Authority, Capital Appreciation, ”A“, AAC, 0%, 7/01/2035 | 2,360,000 | 961,983 | ||||||
| Commonwealth of Puerto Rico, Public Improvement, AAC, 4.5%, 7/01/2023 | 360,000 | 360,194 | ||||||
| Commonwealth of Puerto Rico, Public Improvement, ”A“, AGM, 5%, 7/01/2035 | 10,035,000 | 10,594,050 | ||||||
| Commonwealth of Puerto Rico, Public Improvement, ”A“, ASSD GTY, 5.5%, 7/01/2029 | 3,390,000 | 3,856,159 | ||||||
| Commonwealth of Puerto Rico, Public Improvement, ”A“, NATL, 5.5%, 7/01/2020 | 2,890,000 | 2,962,626 | ||||||
| Commonwealth of Puerto Rico, Public Improvement, ”A-4“, AGM, 5.25%, 7/01/2030 | 785,000 | 805,889 | ||||||
| Commonwealth of Puerto Rico, Public Improvement, ”C-7“, NATL, 6%, 7/01/2027 | 2,560,000 | 2,615,066 | ||||||
63
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Puerto Rico - continued | ||||||||
| Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., ”A“, AAC, 5%, 7/01/2020 | $ | 510,000 | $ | 511,209 | ||||
| Puerto Rico Convention Center District Authority, Hotel Occupancy Tax Rev., ”A“, AAC, 5%, 7/01/2031 | 7,120,000 | 7,123,702 | ||||||
| Puerto Rico Electric Power Authority Rev., ”DDD“, AGM, 3.625%, 7/01/2023 | 445,000 | 445,111 | ||||||
| Puerto Rico Electric Power Authority Rev., ”DDD“, AGM, 3.65%, 7/01/2024 | 1,915,000 | 1,915,364 | ||||||
| Puerto Rico Electric Power Authority Rev., ”MM“, NATL, 5%, 7/01/2020 | 50,000 | 50,954 | ||||||
| Puerto Rico Electric Power Authority Rev., ”NN“, NATL, 5.25%, 7/01/2022 | 1,505,000 | 1,575,208 | ||||||
| Puerto Rico Electric Power Authority Rev., ”NN“, NATL, 4.75%, 7/01/2033 | 225,000 | 225,016 | ||||||
| Puerto Rico Electric Power Authority Rev., ”PP“, NATL, 5%, 7/01/2022 | 905,000 | 911,154 | ||||||
| Puerto Rico Electric Power Authority Rev., ”PP“, NATL, 5%, 7/01/2024 | 160,000 | 160,963 | ||||||
| Puerto Rico Electric Power Authority Rev., ”PP“, NATL, 5%, 7/01/2025 | 210,000 | 211,184 | ||||||
| Puerto Rico Electric Power Authority Rev., ”RR“, ASSD GTY, 5%, 7/01/2028 | 110,000 | 113,208 | ||||||
| Puerto Rico Electric Power Authority Rev., ”RR“, NATL, 5%, 7/01/2022 | 555,000 | 558,774 | ||||||
| Puerto Rico Electric Power Authority Rev., ”SS“, ASSD GTY, 4.375%, 7/01/2030 | 230,000 | 230,271 | ||||||
| Puerto Rico Electric Power Authority Rev., ”SS“, NATL, 5%, 7/01/2019 | 4,730,000 | 4,751,380 | ||||||
| Puerto Rico Electric Power Authority Rev., ”SS“, NATL, 5%, 7/01/2020 | 560,000 | 564,239 | ||||||
| Puerto Rico Electric Power Authority Rev., ”TT“, NATL, 5%, 7/01/2024 | 970,000 | 975,839 | ||||||
| Puerto Rico Electric Power Authority Rev., ”TT“, NATL, 5%, 7/01/2026 | 35,000 | 35,184 | ||||||
| Puerto Rico Electric Power Authority Rev., ”UU“, AGM, 5%, 7/01/2022 | 360,000 | 367,783 | ||||||
| Puerto Rico Electric Power Authority Rev., ”UU“, ASSD GTY, 4.25%, 7/01/2027 | 1,385,000 | 1,386,510 | ||||||
| Puerto Rico Electric Power Authority Rev., ”UU“, NATL, 5%, 7/01/2019 | 730,000 | 732,986 | ||||||
| Puerto Rico Electric Power Authority Rev., ”V“, AGM, 5.25%, 7/01/2027 | 245,000 | 273,128 | ||||||
| Puerto Rico Electric Power Authority Rev., ”VV“, NATL, 5.25%, 7/01/2025 | 280,000 | 299,617 | ||||||
64
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Puerto Rico - continued | ||||||||
| Puerto Rico Electric Power Authority Rev., ”VV“, NATL, 5.25%, 7/01/2026 | $ | 840,000 | $ | 902,647 | ||||
| Puerto Rico Electric Power Authority Rev., ”VV“, NATL, 5.25%, 7/01/2029 | 2,295,000 | 2,473,941 | ||||||
| Puerto Rico Electric Power Authority Rev., ”VV“, NATL, 5.25%, 7/01/2030 | 3,025,000 | 3,256,473 | ||||||
| Puerto Rico Electric Power Authority Rev., ”VV“, NATL, 5.25%, 7/01/2032 | 1,420,000 | 1,522,339 | ||||||
| Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Educational Facilities Rev. (University Plaza Project), NATL, 5%, 7/01/2033 | 2,805,000 | 2,807,356 | ||||||
| Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 4%, 4/01/2020 | 150,000 | 149,183 | ||||||
| Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 3/01/2021 | 30,000 | 29,955 | ||||||
| Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 4/01/2021 | 520,000 | 528,159 | ||||||
| Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 12/01/2021 | 365,000 | 364,383 | ||||||
| Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 4/01/2022 | 600,000 | 608,556 | ||||||
| Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 3/01/2026 | 155,000 | 154,665 | ||||||
| Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 4/01/2027 | 2,205,000 | 2,217,238 | ||||||
| Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.5%, 12/01/2031 | 690,000 | 688,441 | ||||||
65
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Puerto Rico - continued | ||||||||
| Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.125%, 4/01/2032 | $ | 735,000 | $ | 733,662 | ||||
| Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5%, 3/01/2036 | 790,000 | 770,353 | ||||||
| Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority, Higher Education Rev. (Ana G. Mendez University System Project), 5.375%, 4/01/2042 | 545,000 | 541,850 | ||||||
| Puerto Rico Infrastructure Financing Authority Special Tax Rev., ”C“, AAC, 5.5%, 7/01/2023 | 3,810,000 | 4,094,874 | ||||||
| Puerto Rico Infrastructure Financing Authority Special Tax Rev., ”C“, AAC, 5.5%, 7/01/2024 | 7,335,000 | 7,968,744 | ||||||
| Puerto Rico Infrastructure Financing Authority Special Tax Rev., ”C“, AAC, 5.5%, 7/01/2025 | 705,000 | 773,011 | ||||||
| Puerto Rico Infrastructure Financing Authority Special Tax Rev., ”C“, AAC, 5.5%, 7/01/2027 | 5,015,000 | 5,568,154 | ||||||
| Puerto Rico Infrastructure Financing Authority Special Tax Rev., ”C“, AAC, 5.5%, 7/01/2028 | 755,000 | 841,742 | ||||||
| Puerto Rico Infrastructure Financing Authority Special Tax Rev., Capital Appreciation, ”A“, AAC, 0%, 7/01/2029 | 4,130,000 | 2,477,339 | ||||||
| Puerto Rico Municipal Finance Agency, ”A“, AGM, 5%, 8/01/2027 | 190,000 | 195,708 | ||||||
| Puerto Rico Public Buildings Authority Government Facilities Rev., ”I“, ASSD GTY, 5%, 7/01/2036 | 425,000 | 432,569 | ||||||
| Puerto Rico Public Buildings Authority Government Facilities Rev., ”M-3“, NATL, 6%, 7/01/2023 | 1,100,000 | 1,193,896 | ||||||
| Puerto Rico Public Buildings Authority Government Facilities Rev., ”M-3“, NATL, 6%, 7/01/2027 | 1,600,000 | 1,627,904 | ||||||
| Puerto Rico Public Buildings Authority Government Facilities Rev., ”M-3“, NATL, 6%, 7/01/2028 | 345,000 | 350,144 | ||||||
| Puerto Rico Public Buildings Authority Government Facilities Rev., ”N“, ASSD GTY, 5%, 7/01/2032 | 400,000 | 409,668 | ||||||
| Puerto Rico Public Buildings Authority Rev., ”M-2“, AAC, 10%, 7/01/2035 | 4,660,000 | 4,907,166 | ||||||
| Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., ”2019A-1“, 4.5%, 7/01/2034 | 310,000 | 313,419 | ||||||
| Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., ”2019A-1“, 4.55%, 7/01/2040 | 157,000 | 154,491 | ||||||
| Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., ”2019A-1“, 4.75%, 7/01/2053 | 1,155,000 | 1,095,136 | ||||||
66
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Puerto Rico - continued | ||||||||
| Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., ”2019A-1“, 5%, 7/01/2058 | $ | 5,260,000 | $ | 5,197,143 | ||||
| Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., (taxable), ”2019A-2“, 4.55%, 7/01/2040 | 1,597,000 | 1,409,368 | ||||||
| Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., (taxable), ”2019A-2“, 4.75%, 7/01/2053 | 47,000 | 40,303 | ||||||
| Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., (taxable), ”2019A-2“, 5%, 7/01/2058 | 641,000 | 560,881 | ||||||
| Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, ”2019A-1“, 0%, 7/01/2024 | 177,000 | 148,615 | ||||||
| Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, ”2019A-1“, 0%, 7/01/2027 | 1,554,000 | 1,158,725 | ||||||
| Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, ”2019A-1“, 0%, 7/01/2029 | 293,000 | 194,280 | ||||||
| Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, ”2019A-1“, 0%, 7/01/2031 | 14,021,000 | 8,294,543 | ||||||
| Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, ”2019A-1“, 0%, 7/01/2033 | 12,521,000 | 6,644,644 | ||||||
| Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, ”2019A-1“, 0%, 7/01/2046 | 4,037,000 | 868,359 | ||||||
| Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, ”2019A-1“, 0%, 7/01/2051 | 3,288,000 | 520,227 | ||||||
| Puerto Rico Sales Tax Financing Corp., Sales Tax Prerefunded Rev., ”A“, 5.5%, 8/01/2028 (Prerefunded 8/01/2019) | 45,000 | 45,581 | ||||||
| University of Puerto Rico Rev., ”P“, NATL, 5%, 6/01/2025 | 350,000 | 351,974 | ||||||
|
|
|
|||||||
| $ | 213,663,667 | |||||||
| Rhode Island - 0.6% | ||||||||
| Providence, RI, “A”, 5%, 1/15/2025 | $ | 1,345,000 | $ | 1,471,376 | ||||
| Rhode Island Health & Educational Building Corp. Rev., Hospital Financing (Lifespan Obligated Group), “A”, ASSD GTY, 7%, 5/15/2039 (Prerefunded 5/15/2019) | 7,645,000 | 7,694,310 | ||||||
| Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3%, 12/01/2021 | 4,890,000 | 4,970,685 | ||||||
| Rhode Island Student Loan Authority, Student Loan Rev., “A”, 5%, 12/01/2021 | 1,120,000 | 1,207,125 | ||||||
| Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3.25%, 12/01/2022 | 1,500,000 | 1,529,085 | ||||||
| Rhode Island Student Loan Authority, Student Loan Rev., “A”, 5%, 12/01/2022 | 700,000 | 772,324 | ||||||
| Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3.375%, 12/01/2023 | 175,000 | 177,359 | ||||||
| Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3.8%, 12/01/2031 | 2,420,000 | 2,510,726 | ||||||
67
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Rhode Island - continued | ||||||||
| Rhode Island Student Loan Authority, Student Loan Rev., “A”, 3.5%, 12/01/2034 | $ | 2,945,000 | $ | 3,043,069 | ||||
|
|
|
|||||||
| $ | 23,376,059 | |||||||
| South Carolina - 1.7% | ||||||||
| Chesterfield County, SC, School District, 5%, 3/01/2025 | $ | 2,250,000 | $ | 2,456,707 | ||||
| Lexington County, SC, Health Services District, Inc., Hospital Refunding Rev., 5%, 11/01/2028 | 650,000 | 771,557 | ||||||
| North Charleston, SC, Limited Obligation Bond (Hospitality Fee Pledge), “A”, 5%, 10/01/2040 | 3,880,000 | 4,342,341 | ||||||
| Piedmont, SC, Municipal Power Agency, FGIC, 6.25%, 1/01/2021 | 4,150,000 | 4,472,081 | ||||||
| Richland County, SC, Environmental Improvement Rev. (International Paper), “A”, 3.875%, 4/01/2023 | 5,750,000 | 6,050,322 | ||||||
| South Carolina Jobs & Economic Development Authority, Hospital Rev. (Conway Hospital, Inc.), 5.25%, 7/01/2047 | 8,000,000 | 8,909,760 | ||||||
| South Carolina Jobs & Economic Development Authority, Hospital Rev. (Prisma Health Obligated Group), “A”, 5%, 5/01/2048 | 6,685,000 | 7,568,222 | ||||||
| South Carolina Jobs & Economic Development Authority, Residential Care Facilities Rev. (South Carolina Episcopal Home at Still Hopes), 5%, 4/01/2047 | 1,580,000 | 1,644,417 | ||||||
| South Carolina Jobs & Economic Development Authority, Residential Care Facilities Rev. (South Carolina Episcopal Home at Still Hopes), 5%, 4/01/2052 | 1,210,000 | 1,251,080 | ||||||
| South Carolina Port Authority Rev., 5.25%, 7/01/2050 | 3,075,000 | 3,425,304 | ||||||
| South Carolina Public Service Authority Rev., “A”, 5.125%, 12/01/2043 | 2,745,000 | 2,979,094 | ||||||
| South Carolina Public Service Authority Rev., “B”, 5.125%, 12/01/2043 | 6,550,000 | 7,108,584 | ||||||
| South Carolina Public Service Authority Rev., “C”, 5%, 12/01/2036 | 2,920,000 | 3,078,819 | ||||||
| Spartanburg County, SC, Regional Health Services District Hospital Rev., “A”, 5%, 4/15/2048 | 4,620,000 | 5,159,246 | ||||||
| University of South Carolina, Athletic Facilities Rev., “A”, 5%, 5/01/2034 | 1,250,000 | 1,486,325 | ||||||
| University of South Carolina, Athletic Facilities Rev., “A”, 5%, 5/01/2035 | 1,415,000 | 1,677,624 | ||||||
| University of South Carolina, Athletic Facilities Rev., “A”, 5%, 5/01/2036 | 1,045,000 | 1,234,908 | ||||||
|
|
|
|||||||
| $ | 63,616,391 | |||||||
| South Dakota - 0.4% | ||||||||
| South Dakota Educational Enhancement Funding Corp., Tobacco Settlement Rev., “B”, 5%, 6/01/2024 | $ | 1,000,000 | $ | 1,111,900 | ||||
68
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Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| South Dakota - continued | ||||||||
| South Dakota Educational Enhancement Funding Corp., Tobacco Settlement Rev., “B”, 5%, 6/01/2025 | $ | 1,000,000 | $ | 1,109,200 | ||||
| South Dakota Educational Enhancement Funding Corp., Tobacco Settlement Rev., “B”, 5%, 6/01/2026 | 1,400,000 | 1,548,218 | ||||||
| South Dakota Housing Development Authority, Homeownership Mortgage, “B”, 4.5%, 11/01/2048 (u) | 10,000,000 | 10,939,200 | ||||||
|
|
|
|||||||
| $ | 14,708,518 | |||||||
| Tennessee - 1.9% | ||||||||
| Chattanooga, TN, Health Educational & Housing Facility Board Rev. (Catholic Health Initiatives), “A”, 5.25%, 1/01/2045 | $ | 10,310,000 | $ | 11,070,775 | ||||
| Claiborne County, TN, Industrial Development Board Rev. (Lincoln Memorial University Project), 6.125%, 10/01/2040 | 3,000,000 | 3,129,540 | ||||||
| Knox County, TN, Health, Educational & Housing Facility Board Hospital Rev. (Covenant Health), “A”, 5%, 1/01/2042 | 7,000,000 | 7,878,080 | ||||||
| Knox County, TN, Health, Educational & Housing Facility Board Rev. (University Health System, Inc.), 5%, 4/01/2030 | 790,000 | 892,597 | ||||||
| Knox County, TN, Health, Educational & Housing Facility Board Rev. (University Health System, Inc.), 5%, 4/01/2036 | 1,980,000 | 2,188,930 | ||||||
| Metropolitan Government of Nashville & Davidson County, TN, Electric Rev., “A”, 5%, 5/15/2029 (Prerefunded 5/15/2021) | 4,765,000 | 5,112,607 | ||||||
| Metropolitan Government of Nashville & Davidson County, TN, Electric Rev., “A”, 5%, 5/15/2030 (Prerefunded 5/15/2021) | 2,500,000 | 2,682,375 | ||||||
| Metropolitan Government of Nashville & Davidson County, TN, Health & Educational Facilities Board Rev. (Vanderbilt University Medical Center), “A”, 5%, 7/01/2035 | 2,685,000 | 3,048,871 | ||||||
| Metropolitan Government of Nashville & Davidson County, TN, Health & Educational Facilities Board Rev. (Vanderbilt University Medical Center), “A”, 5%, 7/01/2040 | 1,450,000 | 1,624,188 | ||||||
| Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2019 | 1,500,000 | 1,518,510 | ||||||
| Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2022 | 1,665,000 | 1,820,061 | ||||||
| Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2023 | 2,385,000 | 2,658,393 | ||||||
| Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2024 | 2,215,000 | 2,505,099 | ||||||
| Tennessee Energy Acquisition Corp., Gas Rev., “A”, 5.25%, 9/01/2026 | 2,805,000 | 3,271,584 | ||||||
| Tennessee Housing Development Agency, Residential Financing Program Rev., “1”, 3.75%, 7/01/2039 | 1,500,000 | 1,555,860 | ||||||
| Tennessee Housing Development Agency, Residential Financing Program Rev., “1”, 4%, 1/01/2043 | 2,805,000 | 2,985,277 | ||||||
69
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Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Tennessee - continued | ||||||||
| Tennessee Housing Development Agency, Residential Financing Program Rev., “2-C”, 4%, 1/01/2045 | $ | 1,370,000 | $ | 1,430,568 | ||||
| Tennessee Housing Development Agency, Residential Financing Program Rev., “3”, 4.25%, 7/01/2049 | 3,030,000 | 3,271,733 | ||||||
| Tennessee Housing Development Agency, Residential Financing Program Rev., “4”, 4.5%, 7/01/2049 (u) | 9,170,000 | 10,023,910 | ||||||
|
|
|
|||||||
| $ | 68,668,958 | |||||||
| Texas - 5.4% | ||||||||
| Arlington, TX (Tarrant County), Senior Lien Special Tax Rev., “A”, AGM, 5%, 2/15/2037 | $ | 1,200,000 | $ | 1,417,980 | ||||
| Arlington, TX (Tarrant County), Senior Lien Special Tax Rev., “A”, AGM, 5%, 2/15/2038 | 980,000 | 1,153,587 | ||||||
| Arlington, TX (Tarrant County), Senior Lien Special Tax Rev., “A”, AGM, 5%, 2/15/2043 | 5,100,000 | 5,932,779 | ||||||
| Austin, TX, (Travis, Williamson and Hays Counties) Airport System Rev., “B”, 5%, 11/15/2041 | 1,070,000 | 1,201,738 | ||||||
| Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, 5%, 1/01/2029 | 715,000 | 824,917 | ||||||
| Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, 5%, 1/01/2031 | 1,055,000 | 1,210,053 | ||||||
| Austin, TX, Convention Center (Convention Enterprises, Inc.), “A”, 5%, 1/01/2034 | 200,000 | 219,624 | ||||||
| Austin, TX, Convention Center (Convention Enterprises, Inc.), “B”, 5%, 1/01/2026 | 490,000 | 559,399 | ||||||
| Austin, TX, Convention Center (Convention Enterprises, Inc.), “B”, 5%, 1/01/2028 | 315,000 | 353,159 | ||||||
| Austin, TX, Convention Center (Convention Enterprises, Inc.), “B”, 5%, 1/01/2030 | 460,000 | 512,054 | ||||||
| Austin, TX, Water & Wastewater System Rev., 5%, 11/15/2027 | 3,000,000 | 3,336,390 | ||||||
| Clifton, TX, Higher Education Finance Corp. Rev. (Idea Public Schools), “A”, Texas PSF, 5%, 8/15/2039 | 3,190,000 | 3,655,676 | ||||||
| Clifton, TX, Higher Education Finance Corp. Rev. (Uplift Education), “A”, 6.125%, 12/01/2040 (Prerefunded 12/01/2020) | 2,355,000 | 2,528,422 | ||||||
| Clifton, TX, Higher Education Finance Corp. Rev. (Uplift Education), “A”, 6.25%, 12/01/2045 (Prerefunded 12/01/2020) | 1,425,000 | 1,532,844 | ||||||
| Dallas and Fort Worth, TX, International Airport Rev., “C”, 5%, 11/01/2045 | 1,875,000 | 2,006,737 | ||||||
| Dallas, TX, Waterworks & Sewer System Rev., 5%, 10/01/2039 (Prerefunded 10/01/2020) | 1,750,000 | 1,839,810 | ||||||
| Dallas, TX, Waterworks & Sewer System Rev., 5%, 10/01/2039 | 8,250,000 | 8,628,840 | ||||||
| Decatur Hospital Authority Rev. (Wise Regional Health System), “A”, 5.25%, 9/01/2044 | 415,000 | 447,528 | ||||||
70
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Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Texas - continued | ||||||||
| El Paso, TX, Water & Sewer Rev., 5%, 3/01/2028 | $ | 455,000 | $ | 496,118 | ||||
| Fort Worth, TX, Independent School District, Unlimited Tax School Building, Texas PSF, 5%, 2/15/2039 | 3,685,000 | 4,137,960 | ||||||
| Gulf Coast, TX, Industrial Development Authority Rev. (Microgy Holdings Project), 7%, 12/01/2036 (a)(d) | 116,013 | 1 | ||||||
| Harris County, TX, Cultural Education Facilities Finance Corp., Thermal Utilities Rev. (Teco Project), “A”, 5.25%, 11/15/2035 (Prerefunded 11/15/2019) | 1,560,000 | 1,596,488 | ||||||
| Harris County-Houston, TX, Sports Authority Rev., “C”, 5%, 11/15/2032 | 225,000 | 251,915 | ||||||
| Harris County-Houston, TX, Sports Authority Rev., “C”, 5%, 11/15/2033 | 545,000 | 608,460 | ||||||
| Harris County-Houston, TX, Sports Authority Rev., Capital Appreciation, “A”, AGM, 0%, 11/15/2041 | 900,000 | 362,700 | ||||||
| Harris County-Houston, TX, Sports Authority Rev., Capital Appreciation, “A”, AGM, 0%, 11/15/2046 | 2,250,000 | 705,330 | ||||||
| Houston, TX, Airport System Rev., Special Facilities Rev. (United Airlines, Inc. Terminal E Project), 4.5%, 7/01/2020 | 855,000 | 875,067 | ||||||
| Houston, TX, Airport System Rev., Special Facilities Rev. (United Airlines, Inc. Terminal E Project), 4.75%, 7/01/2024 | 2,465,000 | 2,667,352 | ||||||
| Houston, TX, Airport System Rev., Special Facilities Rev. (United Airlines, Inc. Terminal E Project), 5%, 7/01/2029 | 2,135,000 | 2,358,428 | ||||||
| Houston, TX, Airport System Rev., Special Facilities Rev. (United Airlines, Inc. Terminal Improvement Projects), “B-1”, 5%, 7/15/2030 | 725,000 | 799,784 | ||||||
| Houston, TX, Airport System Rev., Special Facilities Rev. (United Airlines, Inc. Terminal Improvement Projects), “B-2”, 5%, 7/15/2020 | 3,215,000 | 3,313,379 | ||||||
| Houston, TX, Airport System Rev., Subordinate Lien, “A”, 5%, 7/01/2031 | 2,310,000 | 2,501,822 | ||||||
| Houston, TX, Industrial Development Corp. (United Parcel Service, Inc.), 6%, 3/01/2023 | 90,000 | 90,207 | ||||||
| Irving, TX, Hospital Authority Rev. (Baylor Scott & White Medical Center-Irving), “A”, 5%, 10/15/2044 | 1,565,000 | 1,721,062 | ||||||
| Katy, TX, Independent School District Rev. (Fort Bend, Harris, & Waller Counties), “D”, Texas PSF, 5%, 2/15/2032 | 1,000,000 | 1,190,460 | ||||||
| La Vernia, TX, Higher Education Finance Corp. Rev. (KIPP, Inc.), “A”, 6.25%, 8/15/2039 (Prerefunded 8/15/2019) | 1,470,000 | 1,495,093 | ||||||
| La Vernia, TX, Higher Education Finance Corp. Rev. (Lifeschool of Dallas), “A”, 7.5%, 8/15/2041 (Prerefunded 8/15/2019) | 4,230,000 | 4,323,187 | ||||||
| Matagorda County, TX, Pollution Control Rev. (Central Power & Light Co.), “A”, 6.3%, 11/01/2029 | 2,520,000 | 2,596,558 | ||||||
71
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Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Texas - continued | ||||||||
| Mission, TX, Economic Development Corp., Solid Waste Disposal Rev. (Republic Services, Inc. Project), 2.35%, 1/01/2026 (Put Date 5/01/2019) | $ | 2,570,000 | $ | 2,570,231 | ||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Capital Improvement Rev. (CHF - Collegiate Housing Denton LLC - Texas Woman’s University Housing Project), “A-1”, AGM, 5%, 7/01/2038 | 490,000 | 553,416 | ||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Capital Improvement Rev. (CHF - Collegiate Housing Denton LLC - Texas Woman’s University Housing Project), “A-1”, AGM, 5%, 7/01/2048 | 1,595,000 | 1,782,460 | ||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Capital Improvement Rev. (CHF - Collegiate Housing Denton LLC - Texas Woman’s University Housing Project), “A-1”, AGM, 5%, 7/01/2058 | 1,780,000 | 1,957,306 | ||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Retirement Facility Rev. (MRC Senior Living - The Langford Project), “B-1”, 3.25%, 11/15/2022 | 155,000 | 153,377 | ||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (4-K Housing, Inc. - Stoney Brook Project), “A-1”, 4.25%, 7/01/2037 | 555,000 | 569,302 | ||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (4-K Housing, Inc. - Stoney Brook Project), “A-1”, 4.5%, 7/01/2042 | 555,000 | 574,564 | ||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (4-K Housing, Inc. - Stoney Brook Project), “A-1”, 5%, 7/01/2047 | 555,000 | 592,762 | ||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (4-K Housing, Inc. - Stoney Brook Project), “A-1”, 4.75%, 7/01/2052 | 835,000 | 873,719 | ||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project), “A-1”, 5%, 7/01/2031 | 190,000 | 217,073 | ||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project), “A-1”, 4%, 7/01/2036 | 955,000 | 994,566 | ||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project), “”A-1”, 5%, 7/01/2046 | 6,220,000 | 6,876,583 | ||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project), “A-1”, 5%, 7/01/2051 | 1,910,000 | 2,103,292 | ||||||
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Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Texas - continued | ||||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project), “B”, 4%, 7/01/2031 | $ | 310,000 | $ | 319,985 | ||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project), “B”, 4.25%, 7/01/2036 | 470,000 | 487,164 | ||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project), “B”, 5%, 7/01/2046 | 1,250,000 | 1,337,075 | ||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Senior Living Rev. (Cardinal Bay, Inc. - Village on the Park/Carriage Inn Project), “B”, 4.75%, 7/01/2051 | 1,090,000 | 1,145,045 | ||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Student Housing Rev. (CHF - Collegiate Housing Stephenville III LLC - Tarleton State University Project), 5%, 4/01/2030 | 355,000 | 386,787 | ||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Student Housing Rev. (CHF - Collegiate Housing Stephenville III LLC - Tarleton State University Project), 5%, 4/01/2035 | 355,000 | 380,209 | ||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Student Housing Rev. (CHF - Collegiate Housing Stephenville III LLC - Tarleton State University Project), 5%, 4/01/2047 | 895,000 | 941,817 | ||||||
| New Hope, TX, Cultural Education Facilities Finance Corp., Student Housing Rev. (Texas A&M University Project), “A”, AGM, 5%, 4/01/2046 | 1,585,000 | 1,716,983 | ||||||
| Newark, TX, Higher Education Finance Corp. Rev. (Austin Achieve Public Schools, Inc.), 5%, 6/15/2033 | 35,000 | 35,966 | ||||||
| Newark, TX, Higher Education Finance Corp. Rev. (Austin Achieve Public Schools, Inc.), 5%, 6/15/2038 | 90,000 | 91,752 | ||||||
| Newark, TX, Higher Education Finance Corp. Rev. (Austin Achieve Public Schools, Inc.), 5%, 6/15/2048 | 175,000 | 177,459 | ||||||
| Newark, TX, Higher Education Finance Corp. Rev. (Austin Achieve Public Schools, Inc.), “A”, 5%, 6/15/2032 | 110,000 | 113,236 | ||||||
| Newark, TX, Higher Education Finance Corp. Rev. (Austin Achieve Public Schools, Inc.), “A”, 5%, 6/15/2037 | 125,000 | 127,621 | ||||||
| Newark, TX, Higher Education Finance Corp. Rev. (Austin Achieve Public Schools, Inc.), “A”, 5%, 6/15/2042 | 150,000 | 152,427 | ||||||
| Newark, TX, Higher Education Finance Corp. Rev. (Austin Achieve Public Schools, Inc.), “A”, 5.25%, 6/15/2048 | 300,000 | 306,441 | ||||||
| Red River, TX, Education Finance Corp., Higher Education Rev. (Houston Baptist University Project), 5.5%, 10/01/2046 | 4,380,000 | 4,852,690 | ||||||
| San Antonio, TX, Electric & Gas Systems Rev., 5%, 2/01/2031 | 6,000,000 | 7,049,760 | ||||||
| San Juan, TX, Higher Education Finance Authority Education Rev. (Idea Public Schools), “A”, 6.7%, 8/15/2040 (Prerefunded 8/15/2020) | 2,795,000 | 2,986,066 | ||||||
73
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Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Texas - continued | ||||||||
| Spring Independent School District, TX, Unlimited Tax School Building, Texas PSF, 5%, 8/15/2042 | $ | 10,000,000 | $ | 11,580,700 | ||||
| Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility Rev. (Air Force Village Obligated Group Project), 6.125%, 11/15/2029 (Prerefunded 11/15/2019) | 395,000 | 405,989 | ||||||
| Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility Rev. (Air Force Village Obligated Group Project), 6.375%, 11/15/2044 (Prerefunded 11/15/2019) | 3,100,000 | 3,191,016 | ||||||
| Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility Rev. (Barton Creek Senior Living Center, Inc., Querencia Project), 5%, 11/15/2030 | 1,160,000 | 1,129,040 | ||||||
| Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility Rev. (Barton Creek Senior Living Center, Inc., Querencia Project), 5%, 11/15/2035 | 1,385,000 | 1,357,369 | ||||||
| Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility Rev. (Barton Creek Senior Living Center, Inc., Querencia Project), 5%, 11/15/2040 | 1,505,000 | 1,483,403 | ||||||
| Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility Rev. (Buckner Senior Living - Ventana Project), “B-3”, 3.875%, 11/15/2022 | 360,000 | 360,086 | ||||||
| Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility Rev. (Northwest Senior Housing Corporation Edgemere Project), “B”, 5%, 11/15/2030 | 3,200,000 | 3,210,560 | ||||||
| Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility Rev. (Stayton at Museum Way), 8.25%, 11/15/2044 | 8,245,000 | 7,420,500 | ||||||
| Tarrant County, TX, Cultural Education Facilities Finance Corp. Retirement Facility Rev. (Trinity Terrace Project), “A-1”, 5%, 10/01/2044 | 785,000 | 834,455 | ||||||
| Texas Department of Housing & Community Affairs Residential Mortgage Rev., “A”, 4.75%, 1/01/2049 (u) | 5,000,000 | 5,548,800 | ||||||
| Texas Department of Housing & Community Affairs Single Family Mortgage Rev., “A”, 4.75%, 3/01/2049 (u) | 4,065,000 | 4,470,687 | ||||||
| Texas Private Activity Surface Transportation Corp., Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 7%, 12/31/2038 | 1,495,000 | 1,755,309 | ||||||
| Texas Private Activity Surface Transportation Corp., Senior Lien Rev. (NTE Mobility Partners Segments 3 LLC Segments 3A & 3B Facility), 6.75%, 6/30/2043 | 1,195,000 | 1,385,364 | ||||||
| Texas Public Finance Authority Rev. (Texas Southern University), BAM, 5%, 5/01/2028 | 1,000,000 | 1,170,810 | ||||||
| Texas State University, Financing System Rev., “A”, 5%, 3/15/2032 | 5,000,000 | 5,924,000 | ||||||
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Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Texas - continued | ||||||||
| Texas Transportation Commission, State Highway 249 System Rev., “A”, 5%, 8/01/2057 | $ | 4,100,000 | $ | 4,582,283 | ||||
| Texas Transportation Commission, State Highway 249 System Rev., Capital Appreciation, “A”, 0%, 8/01/2037 | 455,000 | 210,506 | ||||||
| Texas Transportation Commission, State Highway 249 System Rev., Capital Appreciation, “A”, 0%, 8/01/2038 | 335,000 | 146,311 | ||||||
| Texas Transportation Commission, State Highway 249 System Rev., Capital Appreciation, “A”, 0%, 8/01/2039 | 375,000 | 154,875 | ||||||
| Texas Transportation Commission, State Highway 249 System Rev., Capital Appreciation, “A”, 0%, 8/01/2040 | 375,000 | 146,153 | ||||||
| Texas Transportation Commission, State Highway 249 System Rev., Capital Appreciation, “A”, 0%, 8/01/2041 | 745,000 | 274,324 | ||||||
| Texas Transportation Commission, State Highway 249 System Rev., Capital Appreciation, “A”, 0%, 8/01/2042 | 1,025,000 | 356,680 | ||||||
| Texas Transportation Commission, State Highway 249 System Rev., Capital Appreciation, “A”, 0%, 8/01/2043 | 840,000 | 276,973 | ||||||
| Texas Water Development Board State Water Implementation Rev., “B”, 4%, 10/15/2043 | 16,375,000 | 17,691,059 | ||||||
| Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7%, 11/01/2030 (Prerefunded 11/01/2020) | 590,000 | 638,840 | ||||||
| Travis County, TX, Health Facilities Development Corp. Rev. (Westminster Manor Health), 7.125%, 11/01/2040 (Prerefunded 11/01/2020) | 2,575,000 | 2,793,154 | ||||||
| Travis County, TX, Health Facilities Development Corp. Rev., Unrefunded Balance (Westminster Manor Health), 7%, 11/01/2030 | 75,000 | 78,335 | ||||||
| University of Texas, System Rev., “J”, 5%, 8/15/2028 | 5,000,000 | 6,053,300 | ||||||
|
|
|
|||||||
| $ | 196,510,923 | |||||||
| Utah - 0.4% | ||||||||
| Salt Lake City, UT, Salt Lake City International Airport Rev., “A”, 5%, 7/01/2043 | $ | 6,390,000 | $ | 7,369,204 | ||||
| Utah Charter School Finance Authority, Charter School Rev. (Spectrum Academy Project), 6%, 4/15/2045 | 795,000 | 809,262 | ||||||
| Utah Charter School Finance Authority, Charter School Rev. (Spectrum Academy), 5%, 4/15/2030 | 150,000 | 151,429 | ||||||
| Utah Charter School Finance Authority, Charter School Rev. (Syracuse Arts Academy Project), 5%, 4/15/2037 | 1,000,000 | 1,125,820 | ||||||
| Utah Charter School Finance Authority, Charter School Rev. (Syracuse Arts Academy Project), 5%, 4/15/2042 | 3,495,000 | 3,900,560 | ||||||
|
|
|
|||||||
| $ | 13,356,275 | |||||||
75
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Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Vermont - 0.2% | ||||||||
| Burlington, VT, Airport Rev., “A”, 5%, 7/01/2022 | $ | 315,000 | $ | 331,957 | ||||
| Burlington, VT, Airport Rev., “A”, 4%, 7/01/2028 | 2,020,000 | 2,114,536 | ||||||
| Vermont Economic Development Authority, Solid Waste Disposal Rev. (Casella Waste Systems, Inc.), 4.625%, 4/01/2036 (Put Date 4/03/2028) | 1,035,000 | 1,056,787 | ||||||
| Vermont Housing Finance Agency, Multi-Purpose Rev., “C”, 4%, 11/01/2043 | 595,000 | 619,466 | ||||||
| Vermont Student Assistance Corp., Education Loan Rev., “A”, 3.625%, 6/15/2029 | 575,000 | 591,175 | ||||||
| Vermont Student Assistance Corp., Education Loan Rev., “A”, 3.75%, 6/15/2030 | 635,000 | 654,444 | ||||||
| Vermont Student Assistance Corp., Education Loan Rev., “A”, 4%, 6/15/2033 | 595,000 | 613,433 | ||||||
| Vermont Student Assistance Corp., Education Loan Rev., “A”, 4%, 6/15/2034 | 635,000 | 654,380 | ||||||
| Vermont Student Assistance Corp., Education Loan Rev., “B”, 4.375%, 6/15/2046 | 765,000 | 778,150 | ||||||
|
|
|
|||||||
| $ | 7,414,328 | |||||||
| Virginia - 0.7% | ||||||||
| Commonwealth of Virginia, University Health System General Rev., “A”, 4%, 7/01/2040 | $ | 13,150,000 | $ | 13,776,992 | ||||
| Embrey Mill Community Development Authority, VA, Special Assessment Rev., 7.25%, 3/01/2043 | 2,120,000 | 2,278,979 | ||||||
| Henrico County, VA, Industrial Development Authority Rev. (Bon Secours Health Systems, Inc.), RIBS, AGM, 7.161%, 8/23/2027 (p) | 3,650,000 | 4,839,170 | ||||||
| Manassas Park, VA, Economic Development Authority Lease Rev., “A”, 6%, 7/15/2035 (Prerefunded 7/15/2020) | 845,000 | 891,897 | ||||||
| Peninsula Town Center Community Development Authority, VA, Special Obligation Refunding, 4%, 9/01/2023 | 110,000 | 112,545 | ||||||
| Peninsula Town Center Community Development Authority, VA, Special Obligation Refunding, 4.5%, 9/01/2028 | 145,000 | 152,956 | ||||||
| Peninsula Town Center Community Development Authority, VA, Special Obligation Refunding, 5%, 9/01/2037 | 270,000 | 287,137 | ||||||
| Peninsula Town Center Community Development Authority, VA, Special Obligation Refunding, 4.5%, 9/01/2045 | 980,000 | 999,228 | ||||||
| Peninsula Town Center Community Development Authority, VA, Special Obligation Refunding, 5%, 9/01/2045 | 230,000 | 242,588 | ||||||
| Virginia College Building Authority, Educational Facilities Rev. (Marymount University), “B”, 5.25%, 7/01/2030 | 800,000 | 866,232 | ||||||
| Virginia College Building Authority, Educational Facilities Rev. (Marymount University), “B”, 5.25%, 7/01/2035 | 715,000 | 765,150 | ||||||
| Virginia Small Business Financing Authority Rev. (Hampton University), 5.25%, 10/01/2029 | 625,000 | 724,162 | ||||||
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Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Virginia - continued | ||||||||
| Virginia Small Business Financing Authority Rev., Solid Waste Disposal (Covanta Project), 5%, 1/01/2048 (Put Date 7/01/2038) | $ | 185,000 | $ | 191,346 | ||||
| West Point, VA, Industrial Development Authority, Solid Waste Disposal Rev. (Chesapeake Corp.), “A”, 6.375%, 3/01/2019 (a)(d) | 529,029 | 53 | ||||||
|
|
|
|||||||
| $ | 26,128,435 | |||||||
| Washington - 1.7% | ||||||||
| Central Puget Sound, WA, Regional Transit Authority Sales Tax & Motor Vehicle Excise Tax Rev., “S-1”, 5%, 11/01/2041 | $ | 13,000,000 | $ | 15,078,570 | ||||
| Grays Harbor County, WA, Public Hospital District No. 2, Limited Tax General Obligation Refunding, 5%, 12/15/2033 | 1,885,000 | 2,044,245 | ||||||
| Grays Harbor County, WA, Public Hospital District No. 2, Limited Tax General Obligation Refunding, 5%, 12/15/2038 | 2,410,000 | 2,566,361 | ||||||
| Grays Harbor County, WA, Public Hospital District No. 2, Limited Tax General Obligation Refunding, 5%, 12/15/2048 | 4,630,000 | 4,842,563 | ||||||
| Seattle, WA, Port Rev., “B”, 5%, 8/01/2024 | 3,000,000 | 3,288,450 | ||||||
| State of Washington FYI Properties Lease Rev. (DIS Project), 5.5%, 6/01/2034 | 2,255,000 | 2,269,635 | ||||||
| Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 6.75%, 7/01/2029 (Prerefunded 7/01/2019) | 1,450,000 | 1,468,212 | ||||||
| Washington Health Care Facilities Authority Rev. (Central Washington Health Services), 7%, 7/01/2039 (Prerefunded 7/01/2019) | 3,690,000 | 3,738,265 | ||||||
| Washington Health Care Facilities Authority Rev. (Virginia Mason Medical Center), 5%, 8/15/2035 | 1,875,000 | 2,087,887 | ||||||
| Washington Health Care Facilities Authority Rev. (Virginia Mason Medical Center), 5%, 8/15/2037 | 1,710,000 | 1,888,610 | ||||||
| Washington Higher Education Facilities Authority Rev. (Whitworth University), 5.875%, 10/01/2034 (Prerefunded 10/01/2019) | 2,165,000 | 2,210,552 | ||||||
| Washington Motor Vehicle Fuel Tax, “E”, 5%, 2/01/2037 | 12,000,000 | 13,448,400 | ||||||
| Washington Motor Vehicle Fuel Tax, “E”, 5%, 2/01/2039 | 7,985,000 | 8,928,747 | ||||||
|
|
|
|||||||
| $ | 63,860,497 | |||||||
| West Virginia - 0.8% | ||||||||
| Harrison County, WV, Community Solid Waste Disposal Rev., 3%, 10/15/2037 (Put Date 10/15/2021) | $ | 10,000,000 | $ | 9,997,500 | ||||
| Monongalia County, WV, Board of Education, 5%, 5/01/2029 | 1,445,000 | 1,575,426 | ||||||
| Monongalia County, WV, Building Commission Improvement Rev. (Monongalia Health System Obligated Group), 5%, 7/01/2029 | 395,000 | 437,506 | ||||||
| Monongalia County, WV, Special District Excise Tax Rev., Refunding & Improvement Bonds (University Town Centre Economic Opportunity Development District), “A”, 4.5%, 6/01/2027 | 160,000 | 160,506 | ||||||
77
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| West Virginia - continued | ||||||||
| Monongalia County, WV, Special District Excise Tax Rev., Refunding & Improvement Bonds (University Town Centre Economic Opportunity Development District), “A”, 5.5%, 6/01/2037 | $ | 375,000 | $ | 389,707 | ||||
| West Virginia Hospital Finance Authority Hospital Rev. (Thomas Health System), 6.5%, 10/01/2038 | 2,110,000 | 1,589,990 | ||||||
| West Virginia Hospital Finance Authority Hospital Rev. (West Virginia University Health System Obligated Group), “A”, 4%, 6/01/2051 | 10,000,000 | 10,184,500 | ||||||
| West Virginia Housing Development Fund, “A”, FHA, 3.45%, 11/01/2033 | 640,000 | 659,731 | ||||||
| West Virginia Housing Development Fund, “A”, FHA, 3.75%, 11/01/2038 | 605,000 | 621,813 | ||||||
| West Virginia Housing Development Fund, “A”, FHA, 3.9%, 11/01/2048 | 375,000 | 384,124 | ||||||
| West Virginia School Building Authority, “A”, 3%, 7/01/2033 | 1,540,000 | 1,552,274 | ||||||
| West Virginia Water Development Authority Rev. (Loan Program II), “A-II”, 5%, 11/01/2033 | 675,000 | 780,921 | ||||||
|
|
|
|||||||
| $ | 28,333,998 | |||||||
| Wisconsin - 2.3% | ||||||||
| Public Finance Authority Student Housing Rev. (Beyond Boone LLC - Appalachian State University Project), “A”, AGM, 5%, 7/01/2044 | $ | 375,000 | $ | 420,705 | ||||
| Public Finance Authority Student Housing Rev. (Beyond Boone LLC - Appalachian State University Project), “A”, AGM, 5%, 7/01/2054 | 485,000 | 535,120 | ||||||
| Public Finance Authority Student Housing Rev. (Beyond Boone LLC - Appalachian State University Project), “A”, AGM, 5%, 7/01/2058 | 560,000 | 611,822 | ||||||
| Public Finance Authority Student Housing Rev. (CHF-Wilmington, LLC - University of North Carolina at Wilmington Project), AGM, 5%, 7/01/2048 | 6,000,000 | 6,697,440 | ||||||
| Public Finance Authority Student Housing Rev. (CHF-Wilmington, LLC - University of North Carolina at Wilmington Project), AGM, 5%, 7/01/2053 | 3,570,000 | 3,944,814 | ||||||
| Public Finance Authority Student Housing Rev. (CHF-Wilmington, LLC - University of North Carolina at Wilmington Project), AGM, 5%, 7/01/2058 | 5,000,000 | 5,470,850 | ||||||
| Wisconsin Health & Educational Facilities Authority Rev. (Aurora Health Care, Inc.), “A”, 5%, 7/15/2026 (Prerefunded 7/15/2021) | 2,215,000 | 2,386,463 | ||||||
| Wisconsin Health & Educational Facilities Authority Rev. (Aurora Health Care, Inc.), “A”, 5%, 7/15/2028 (Prerefunded 7/15/2021) | 665,000 | 716,478 | ||||||
78
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Wisconsin - continued | ||||||||
| Wisconsin Health & Educational Facilities Authority Rev. (Marshfield Clinic Health System, Inc.), “C”, 5%, 2/15/2047 | $ | 2,465,000 | $ | 2,721,607 | ||||
| Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.25%, 9/15/2029 (Prerefunded 9/15/2019) | 430,000 | 440,892 | ||||||
| Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 7.625%, 9/15/2039 (Prerefunded 9/15/2019) |
|
1,390,000 |
|
|
1,427,544 |
| ||
| Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 5%, 9/15/2040 | 465,000 | 483,591 | ||||||
| Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 5%, 9/15/2045 | 630,000 | 652,592 | ||||||
| Wisconsin Health & Educational Facilities Authority Rev. (St. John’s Community, Inc.), “A”, 5%, 9/15/2050 | 2,560,000 | 2,646,528 | ||||||
| Wisconsin Housing & Economic Development Authority, Home Ownership Rev., “D”, 4%, 3/01/2047 (u) | 6,180,000 | 6,600,055 | ||||||
| Wisconsin Public Finance Authority Education Facilities Rev. (Piedmont Community Charter School), 5%, 6/15/2039 | 200,000 | 222,638 | ||||||
| Wisconsin Public Finance Authority Education Facilities Rev. (Piedmont Community Charter School), 5%, 6/15/2049 | 615,000 | 674,993 | ||||||
| Wisconsin Public Finance Authority Education Facilities Rev. (Piedmont Community Charter School), 5%, 6/15/2053 | 420,000 | 457,254 | ||||||
| Wisconsin Public Finance Authority Education Rev. (Pine Lake Preparatory), 4.95%, 3/01/2030 | 120,000 | 126,529 | ||||||
| Wisconsin Public Finance Authority Education Rev. (Pine Lake Preparatory), 5.25%, 3/01/2035 | 120,000 | 126,469 | ||||||
| Wisconsin Public Finance Authority Education Rev. (Pine Lake Preparatory), 5.5%, 3/01/2045 | 320,000 | 336,272 | ||||||
| Wisconsin Public Finance Authority Healthcare Facility (Church Home of Hartford, Inc. Project), “A”, 4%, 9/01/2020 | 55,000 | 55,877 | ||||||
| Wisconsin Public Finance Authority Healthcare Facility (Church Home of Hartford, Inc. Project), “A”, 5%, 9/01/2025 | 100,000 | 109,148 | ||||||
| Wisconsin Public Finance Authority Healthcare Facility (Church Home of Hartford, Inc. Project), “A”, 5%, 9/01/2030 | 165,000 | 174,933 | ||||||
| Wisconsin Public Finance Authority Healthcare Facility (Church Home of Hartford, Inc. Project), “A”, 5%, 9/01/2038 | 220,000 | 228,545 | ||||||
| Wisconsin Public Finance Authority Higher Education Facilities Rev. (Gannon University Project), 5%, 5/01/2042 | 655,000 | 710,210 | ||||||
| Wisconsin Public Finance Authority Higher Education Facilities Rev. (Gannon University Project), 5%, 5/01/2047 | 605,000 | 655,130 | ||||||
| Wisconsin Public Finance Authority Limited Obligation Grant Rev. (American Dream at Meadowlands Project), “A”, 6.25%, 8/01/2027 | 7,060,000 | 7,747,997 | ||||||
79
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Wisconsin - continued | ||||||||
| Wisconsin Public Finance Authority Limited Obligation PILOT Rev. (American Dream at Meadowlands Project), 7%, 12/01/2050 | $ | 3,170,000 | $ | 3,698,471 | ||||
| Wisconsin Public Finance Authority Rev. (Celanese Corp.), “B”, 5%, 12/01/2025 | 620,000 | 701,567 | ||||||
| Wisconsin Public Finance Authority Rev. (Denver International Airport Great Hall Project), 5%, 9/30/2037 | 3,605,000 | 4,063,916 | ||||||
| Wisconsin Public Finance Authority Rev. (Denver International Airport Great Hall Project), 5%, 9/30/2049 | 4,095,000 | 4,534,598 | ||||||
| Wisconsin Public Finance Authority Senior Living Refunding Bonds Rev. (Mary’s Woods at Marylhurst Project), “A”, 5.25%, 5/15/2037 | 995,000 | 1,059,864 | ||||||
| Wisconsin Public Finance Authority Senior Living Refunding Bonds Rev. (Mary’s Woods at Marylhurst Project), “A”, 5.25%, 5/15/2042 | 960,000 | 1,015,834 | ||||||
| Wisconsin Public Finance Authority Senior Living Refunding Bonds Rev. (Mary’s Woods at Marylhurst Project), “A”, 5.25%, 5/15/2047 | 2,320,000 | 2,446,811 | ||||||
| Wisconsin Public Finance Authority Senior Living Refunding Bonds Rev. (Mary’s Woods at Marylhurst Project), “A”, 5.25%, 5/15/2052 | 200,000 | 209,820 | ||||||
| Wisconsin Public Finance Authority Senior Living Refunding Bonds Rev. (Mary’s Woods at Marylhurst Project), “B-2”, 3.5%, 11/15/2023 | 1,305,000 | 1,305,457 | ||||||
| Wisconsin Public Finance Authority Senior Living Refunding Bonds Rev. (Mary’s Woods at Marylhurst Project), “B-3”, 3%, 11/15/2022 | 1,145,000 | 1,145,218 | ||||||
| Wisconsin Public Finance Authority Senior Living Rev. (Rose Villa Project), “A”, 5.125%, 11/15/2029 | 490,000 | 513,956 | ||||||
| Wisconsin Public Finance Authority Senior Living Rev. (Rose Villa Project), “A”, 5.5%, 11/15/2034 | 455,000 | 480,812 | ||||||
| Wisconsin Public Finance Authority Senior Living Rev. (Rose Villa Project), “A”, 5.75%, 11/15/2044 | 375,000 | 400,133 | ||||||
| Wisconsin Public Finance Authority Senior Living Rev. (Rose Villa Project), “A”, 6%, 11/15/2049 | 740,000 | 796,810 | ||||||
| Wisconsin Public Finance Authority Solid Waste Disposal Refunding Rev. (Waste Management, Inc. Project), “A-2”, 2.35%, 10/01/2025 (Put Date 5/01/2019) | 10,200,000 | 10,200,918 | ||||||
| Wisconsin Public Finance Authority, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), “B”, 5%, 7/01/2022 | 890,000 | 934,740 | ||||||
| Wisconsin Public Finance Authority, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), “B”, 5.25%, 7/01/2028 | 1,260,000 | 1,366,571 | ||||||
80
Table of Contents
Portfolio of Investments – continued
| Issuer | Shares/Par | Value ($) | ||||||
| Municipal Bonds - continued | ||||||||
| Wisconsin - continued | ||||||||
| Wisconsin Public Finance Authority, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), “B”, 5%, 7/01/2042 | $ | 1,600,000 | $ | 1,694,512 | ||||
| Wisconsin Public Finance Authority, Airport Facilities Rev. (Transportation Infrastructure Properties LLC), “C”, 5%, 7/01/2042 | 1,630,000 | 1,723,692 | ||||||
|
|
|
|||||||
| $ | 85,676,196 | |||||||
| Total Municipal Bonds (Identified Cost, $3,432,295,327) |
|
$ | 3,574,687,582 | |||||
| Trust Units - 0.7% | ||||||||
| Puerto Rico - 0.7% | ||||||||
| COFINA Series 2007A Senior Bonds Due 2040 National Custodial Trust (taxable), 8/01/2040 | 506,204 | $ | 415,720 | |||||
| COFINA Series 2007A Senior Bonds Due 2040 National Custodial Trust (tax-exempt), 8/01/2040 | 1,537,076 | 1,344,942 | ||||||
| COFINA Series 2007A Senior Bonds Due 2041 National Custodial Trust (taxable), 8/01/2041 | 327,688 | 269,114 | ||||||
| COFINA Series 2007A Senior Bonds Due 2041 National Custodial Trust (tax-exempt), 8/01/2041 | 1,012,294 | 885,757 | ||||||
| COFINA Series 2007A Senior Bonds Due 2042 National Custodial Trust (taxable), 8/01/2042 | 1,038,547 | 852,907 | ||||||
| COFINA Series 2007A Senior Bonds Due 2042 National Custodial Trust (tax-exempt), 8/01/2042 | 4,618,310 | 4,041,021 | ||||||
| COFINA Series 2007A Senior Bonds Due 2043 National Custodial Trust (taxable), 8/01/2043 | 399,675 | 328,233 | ||||||
| COFINA Series 2007A Senior Bonds Due 2043 National Custodial Trust (tax-exempt), 8/01/2043 | 2,678,212 | 2,343,436 | ||||||
| COFINA Series 2007A Senior Bonds Due 2044 National Custodial Trust (taxable), 8/01/2044 | 1,490,941 | 1,224,435 | ||||||
| COFINA Series 2007A Senior Bonds Due 2044 National Custodial Trust (tax-exempt), 8/01/2044 | 8,920,980 | 7,805,857 | ||||||
| COFINA Series 2007A Senior Bonds Due 2045 National Custodial Trust (taxable), 8/01/2045 | 107,798 | 88,529 | ||||||
| COFINA Series 2007A Senior Bonds Due 2045 National Custodial Trust (tax-exempt), 8/01/2045 | 327,364 | 286,444 | ||||||
| COFINA Series 2007A Senior Bonds Due 2046 National Custodial Trust (taxable), 8/01/2046 | 1,579,081 | 1,296,820 | ||||||
| COFINA Series 2007A Senior Bonds Due 2046 National Custodial Trust (tax-exempt), 8/01/2046 | 6,259,219 | 5,476,817 | ||||||
| Total Trust Units (Identified Cost, $29,078,611) | $ | 26,660,032 | ||||||
81
Table of Contents
Portfolio of Investments – continued
| Investment Companies (h) - 3.0% | ||||||||
| Issuer | Shares/Par | Value ($) | ||||||
| Money Market Funds - 3.0% | ||||||||
| MFS Institutional Money Market Portfolio, 2.48% (v) (Identified Cost, $108,650,418) |
108,660,481 | $ | 108,660,481 | |||||
| Other Assets, Less Liabilities - (1.2)% | (45,274,792 | ) | ||||||
| Net Assets - 100.0% | $ | 3,664,733,303 | ||||||
| (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 $108,660,481 and $3,601,347,614, respectively. |
| (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 $6,187,446, representing 0.2% of net assets. |
| (p) | Primary market inverse floater. |
| (u) | Underlying security deposited into special purpose trust upon creation of self-deposited inverse floaters. |
| (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:
| AAC | Ambac Assurance Corp. |
| AGM | Assured Guaranty Municipal |
| ASSD GTY | Assured Guaranty Insurance Co. |
| BAM | Build America Mutual |
| BHAC | Berkshire Hathaway Assurance Corp. |
| CALHF | California Health Facility Construction Loan Insurance Program |
| COP | Certificate of Participation |
| ETM | Escrowed to Maturity |
| FGIC | Financial Guaranty Insurance Co. |
| FHA | Federal Housing Administration |
| 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. |
| FNMA | Federal National Mortgage Assn. |
| GNMA | Government National Mortgage Assn. |
| LIBOR | London Interbank Offered Rate |
| NATL | National Public Finance Guarantee Corp. |
| PSF | Permanent School Fund |
| RIBS | Residual Interest Bonds |
| SYNCORA | Syncora Guarantee Inc. |
See Notes to Financial Statements
82
Table of Contents
Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
At 3/31/19
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, $3,461,373,938) |
$3,601,347,614 | |||
| Investments in affiliated issuers, at value (identified cost, $108,650,418) |
108,660,481 | |||
| Cash |
192,502 | |||
| Receivables for |
||||
| Investments sold |
6,456,114 | |||
| Fund shares sold |
11,473,973 | |||
| Interest |
43,643,925 | |||
| Other assets |
10,404 | |||
| Total assets |
$3,771,785,013 | |||
| Liabilities | ||||
| Payables for |
||||
| Distributions |
$1,519,069 | |||
| Investments purchased |
17,980,058 | |||
| Fund shares reacquired |
6,644,374 | |||
| Interest expense and fees |
310,683 | |||
| Payable to the holders of the floating rate certificates |
79,023,998 | |||
| Payable to affiliates |
||||
| Investment adviser |
95,607 | |||
| Shareholder servicing costs |
1,196,067 | |||
| Distribution and service fees |
59,462 | |||
| Payable for independent Trustees’ compensation |
7,155 | |||
| Accrued expenses and other liabilities |
215,237 | |||
| Total liabilities |
$107,051,710 | |||
| Net assets |
$3,664,733,303 | |||
| Net assets consist of | ||||
| Paid-in capital |
$3,521,288,843 | |||
| Total distributable earnings (loss) |
143,444,460 | |||
| Net assets |
$3,664,733,303 | |||
| Shares of beneficial interest outstanding |
417,933,324 | |||
83
Table of Contents
Statement of Assets and Liabilities – continued
| Net assets | Shares outstanding |
Net asset value per share (a) |
||||||||||
| Class A |
$1,683,822,453 | 191,980,211 | $8.77 | |||||||||
| Class B |
12,578,881 | 1,432,104 | 8.78 | |||||||||
| Class C |
151,635,872 | 17,229,497 | 8.80 | |||||||||
| Class I |
870,854,617 | 99,381,599 | 8.76 | |||||||||
| Class R6 |
491,400,481 | 56,123,725 | 8.76 | |||||||||
| Class A1 |
454,349,880 | 51,775,815 | 8.78 | |||||||||
| Class B1 |
91,119 | 10,373 | 8.78 | |||||||||
| (a) | Maximum offering price per share was equal to the net asset value per share for all share classes, except for Classes A and A1, for which the maximum offering prices per share were $9.16 [100 / 95.75 x $8.77] and $9.17 [100 / 95.75 x $8.78], respectively. On sales of $100,000 or more, the maximum offering prices of Class A and Class A1 shares are reduced. A contingent deferred sales charge may be imposed on redemptions of Class A, Class B, Class C, Class A1, and Class B1 shares. Redemption price per share was equal to the net asset value per share for Classes I and R6. |
See Notes to Financial Statements
84
Table of Contents
Financial Statements
Year ended 3/31/19
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 |
$149,867,775 | |||
| Dividends from affiliated issuers |
1,475,012 | |||
| Other |
471 | |||
| Total investment income |
$151,343,258 | |||
| Expenses |
||||
| Management fee |
$12,575,809 | |||
| Distribution and service fees |
5,543,191 | |||
| Shareholder servicing costs |
2,391,730 | |||
| Administrative services fee |
480,919 | |||
| Independent Trustees’ compensation |
41,642 | |||
| Custodian fee |
273,435 | |||
| Shareholder communications |
102,649 | |||
| Audit and tax fees |
62,113 | |||
| Legal fees |
29,430 | |||
| Interest expense and fees |
844,461 | |||
| Miscellaneous |
407,318 | |||
| Total expenses |
$22,752,697 | |||
| Fees paid indirectly |
(1,212 | ) | ||
| Reduction of expenses by investment adviser and distributor |
(564,485 | ) | ||
| Net expenses |
$22,187,000 | |||
| Net investment income (loss) |
$129,156,258 | |||
| Realized and unrealized gain (loss) | ||||
| Realized gain (loss) (identified cost basis) |
||||
| Unaffiliated issuers |
$(3,632,369 | ) | ||
| Affiliated issuers |
10,987 | |||
| Net realized gain (loss) |
$(3,621,382 | ) | ||
| Change in unrealized appreciation or depreciation |
||||
| Unaffiliated issuers |
$50,493,573 | |||
| Affiliated issuers |
10,063 | |||
| Net unrealized gain (loss) |
$50,503,636 | |||
| Net realized and unrealized gain (loss) |
$46,882,254 | |||
| Change in net assets from operations |
$176,038,512 | |||
See Notes to Financial Statements
85
Table of Contents
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 | ||||||||
| 3/31/19 | 3/31/18 | |||||||
| Change in net assets | ||||||||
| From operations | ||||||||
| Net investment income (loss) |
$129,156,258 | $112,004,460 | ||||||
| Net realized gain (loss) |
(3,621,382 | ) | 2,602,069 | |||||
| Net unrealized gain (loss) |
50,503,636 | (13,925,123 | ) | |||||
| Change in net assets from operations |
$176,038,512 | $100,681,406 | ||||||
| Total distributions to shareholders (a) |
$(117,871,239 | ) | $(109,502,996 | ) | ||||
| Change in net assets from fund share transactions |
$345,422,427 | $348,080,724 | ||||||
| Total change in net assets |
$403,589,700 | $339,259,134 | ||||||
| Net assets | ||||||||
| At beginning of period |
3,261,143,603 | 2,921,884,469 | ||||||
| At end of period (b) |
$3,664,733,303 | $3,261,143,603 | ||||||
| (a) | Distributions from net investment income and from net realized gain are no longer required to be separately disclosed. See Note 2. For the year ended March 31, 2018, distributions from net investment income were $109,502,996. |
| (b) | Parenthetical disclosure of accumulated distributions in excess of net investment income is no longer required. See Note 2. For the year ended March 31, 2018, end of period net assets included accumulated distributions in excess of net investment income of $10,834. |
See Notes to Financial Statements
86
Table of Contents
Financial Statements
The financial highlights table is intended to help you understand the fund’s financial performance for the past 5 years (or life of a particular share class, if shorter). 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 | |||||||||||||||||||
| 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | ||||||||||||||||
| Net asset value, beginning of period |
$8.63 | $8.64 | $8.89 | $8.85 | $8.48 | |||||||||||||||
| Income (loss) from investment operations |
|
|||||||||||||||||||
| Net investment income (loss) (d) |
$0.32 | $0.31 | $0.32 | (c) | $0.34 | $0.32 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.11 | (0.02 | ) | (0.27 | ) | 0.01 | 0.35 | |||||||||||||
| Total from investment operations |
$0.43 | $0.29 | $0.05 | $0.35 | $0.67 | |||||||||||||||
| Less distributions declared to shareholders |
|
|||||||||||||||||||
| From net investment income |
$(0.29 | ) | $(0.30 | ) | $(0.30 | ) | $(0.31 | ) | $(0.30 | ) | ||||||||||
| Net asset value, end of period (x) |
$8.77 | $8.63 | $8.64 | $8.89 | $8.85 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
5.14 | 3.35 | 0.59 | (c) | 4.10 | 8.02 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: |
|
|||||||||||||||||||
| Expenses before expense reductions (f) |
0.77 | 0.77 | 0.78 | (c) | 0.79 | 0.80 | ||||||||||||||
| Expenses after expense reductions (f) |
0.75 | 0.73 | 0.73 | (c) | 0.74 | 0.74 | ||||||||||||||
| Net investment income (loss) |
3.74 | 3.49 | 3.67 | (c) | 3.88 | 3.71 | ||||||||||||||
| Portfolio turnover |
19 | 21 | 20 | 22 | 17 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$1,683,822 | $1,418,893 | $1,234,571 | $870,656 | $781,630 | |||||||||||||||
| Supplemental Ratios (%): |
|
|||||||||||||||||||
| Ratios of expenses to average net assets |
0.73 | 0.72 | 0.72 | (c) | 0.73 | 0.73 | ||||||||||||||
See Notes to Financial Statements
87
Table of Contents
Financial Highlights – continued
| Class B | Year ended | |||||||||||||||||||
| 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | ||||||||||||||||
| Net asset value, beginning of period |
$8.65 | $8.66 | $8.90 | $8.86 | $8.49 | |||||||||||||||
| Income (loss) from investment operations |
| |||||||||||||||||||
| Net investment income (loss) (d) |
$0.26 | $0.24 | $0.26 | (c) | $0.27 | $0.26 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.10 | (0.02 | ) | (0.26 | ) | 0.02 | 0.35 | |||||||||||||
| Total from investment operations |
$0.36 | $0.22 | $0.00 | (w) | $0.29 | $0.61 | ||||||||||||||
| Less distributions declared to shareholders |
| |||||||||||||||||||
| From net investment income |
$(0.23 | ) | $(0.23 | ) | $(0.24 | ) | $(0.25 | ) | $(0.24 | ) | ||||||||||
| Net asset value, end of period (x) |
$8.78 | $8.65 | $8.66 | $8.90 | $8.86 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.23 | 2.58 | (0.04 | )(c) | 3.32 | 7.21 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: |
| |||||||||||||||||||
| Expenses before expense reductions (f) |
1.52 | 1.52 | 1.53 | (c) | 1.54 | 1.55 | ||||||||||||||
| Expenses after expense reductions (f) |
1.50 | 1.48 | 1.49 | (c) | 1.49 | 1.49 | ||||||||||||||
| Net investment income (loss) |
2.99 | 2.75 | 2.94 | (c) | 3.12 | 2.95 | ||||||||||||||
| Portfolio turnover |
19 | 21 | 20 | 22 | 17 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$12,579 | $18,135 | $23,866 | $27,926 | $28,032 | |||||||||||||||
| Supplemental Ratios (%): |
| |||||||||||||||||||
| Ratios of expenses to average net assets |
1.48 | 1.48 | 1.47 | (c) | 1.48 | 1.48 | ||||||||||||||
See Notes to Financial Statements
88
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Financial Highlights – continued
| Class C | Year ended | |||||||||||||||||||
| 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | ||||||||||||||||
| Net asset value, beginning of period |
$8.66 | $8.67 | $8.92 | $8.88 | $8.51 | |||||||||||||||
| Income (loss) from investment operations |
| |||||||||||||||||||
| Net investment income (loss) (d) |
$0.26 | $0.24 | $0.26 | (c) | $0.27 | $0.26 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.11 | (0.02 | ) | (0.27 | ) | 0.02 | 0.35 | |||||||||||||
| Total from investment operations |
$0.37 | $0.22 | $(0.01 | ) | $0.29 | $0.61 | ||||||||||||||
| Less distributions declared to shareholders |
| |||||||||||||||||||
| From net investment income |
$(0.23 | ) | $(0.23 | ) | $(0.24 | ) | $(0.25 | ) | $(0.24 | ) | ||||||||||
| Net asset value, end of period (x) |
$8.80 | $8.66 | $8.67 | $8.92 | $8.88 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.35 | 2.58 | (0.16 | )(c) | 3.31 | 7.19 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: |
| |||||||||||||||||||
| Expenses before expense reductions (f) |
1.52 | 1.52 | 1.53 | (c) | 1.54 | 1.55 | ||||||||||||||
| Expenses after expense reductions (f) |
1.50 | 1.49 | 1.49 | (c) | 1.49 | 1.49 | ||||||||||||||
| Net investment income (loss) |
2.99 | 2.74 | 2.92 | (c) | 3.11 | 2.94 | ||||||||||||||
| Portfolio turnover |
19 | 21 | 20 | 22 | 17 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$151,636 | $181,793 | $184,018 | $180,722 | $166,885 | |||||||||||||||
| Supplemental Ratios (%): |
| |||||||||||||||||||
| Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) |
1.48 | 1.48 | 1.47 | (c) | 1.48 | 1.48 | ||||||||||||||
See Notes to Financial Statements
89
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Financial Highlights – continued
| Class I | Year ended | |||||||||||||||||||
| 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | ||||||||||||||||
| Net asset value, beginning of period |
$8.63 | $8.63 | $8.88 | $8.84 | $8.47 | |||||||||||||||
| Income (loss) from investment operations |
| |||||||||||||||||||
| Net investment income (loss) (d) |
$0.34 | $0.33 | $0.34 | (c) | $0.36 | $0.35 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.10 | (0.01 | ) | (0.26 | ) | 0.02 | 0.34 | |||||||||||||
| Total from investment operations |
$0.44 | $0.32 | $0.08 | $0.38 | $0.69 | |||||||||||||||
| Less distributions declared to shareholders |
| |||||||||||||||||||
| From net investment income |
$(0.31 | ) | $(0.32 | ) | $(0.33 | ) | $(0.34 | ) | $(0.32 | ) | ||||||||||
| Net asset value, end of period (x) |
$8.76 | $8.63 | $8.63 | $8.88 | $8.84 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
5.27 | 3.73 | 0.84 | (c) | 4.36 | 8.30 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: |
| |||||||||||||||||||
| Expenses before expense reductions (f) |
0.52 | 0.52 | 0.54 | (c) | 0.55 | 0.55 | ||||||||||||||
| Expenses after expense reductions (f) |
0.51 | 0.49 | 0.49 | (c) | 0.49 | 0.49 | ||||||||||||||
| Net investment income (loss) |
3.99 | 3.74 | 3.92 | (c) | 4.12 | 3.95 | ||||||||||||||
| Portfolio turnover |
19 | 21 | 20 | 22 | 17 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$870,855 | $672,870 | $974,392 | $474,159 | $682,371 | |||||||||||||||
| Supplemental Ratios (%): |
| |||||||||||||||||||
| Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees (f)(l) |
0.48 | 0.48 | 0.47 | (c) | 0.48 | 0.48 | ||||||||||||||
See Notes to Financial Statements
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Financial Highlights – continued
| Class R6 | Year ended | |||||||
| 3/31/19 | 3/31/18 (i) | |||||||
| Net asset value, beginning of period |
$8.62 | $8.77 | ||||||
| Income (loss) from investment operations |
|
|||||||
| Net investment income (loss) (d) |
$0.35 | $0.22 | ||||||
| Net realized and unrealized gain (loss) |
0.11 | (0.15 | ) | |||||
| Total from investment operations |
$0.46 | $0.07 | ||||||
| Less distributions declared to shareholders |
|
|||||||
| From net investment income |
$(0.32 | ) | $(0.22 | ) | ||||
| Net asset value, end of period (x) |
$8.76 | $8.62 | ||||||
| Total return (%) (r)(s)(t)(x) |
5.48 | 0.75 | (n) | |||||
| Ratios (%) (to average net assets) and Supplemental data: |
|
|||||||
| Expenses before expense reductions (f) |
0.45 | 0.42 | (a) | |||||
| Expenses after expense reductions (f) |
0.43 | 0.41 | (a) | |||||
| Net investment income (loss) |
4.06 | 3.77 | (a) | |||||
| Portfolio turnover |
19 | 21 | ||||||
| Net assets at end of period (000 omitted) |
$491,400 | $492,474 | ||||||
| Supplemental Ratios (%): |
|
|||||||
| Ratios of expenses to average net assets after expense reductions and |
0.41 | 0.40 | (a) | |||||
See Notes to Financial Statements
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Financial Highlights – continued
| Class A1 | Year ended | |||||||||||||||||||
| 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | ||||||||||||||||
| Net asset value, beginning of period |
$8.64 | $8.65 | $8.90 | $8.85 | $8.49 | |||||||||||||||
| Income (loss) from investment operations |
| |||||||||||||||||||
| Net investment income (loss) (d) |
$0.34 | $0.33 | $0.35 | (c) | $0.36 | $0.35 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.12 | (0.02 | ) | (0.27 | ) | 0.03 | 0.33 | |||||||||||||
| Total from investment operations |
$0.46 | $0.31 | $0.08 | $0.39 | $0.68 | |||||||||||||||
| Less distributions declared to shareholders |
| |||||||||||||||||||
| From net investment income |
$(0.32 | ) | $(0.32 | ) | $(0.33 | ) | $(0.34 | ) | $(0.32 | ) | ||||||||||
| Net asset value, end of period (x) |
$8.78 | $8.64 | $8.65 | $8.90 | $8.85 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
5.40 | 3.61 | 0.85 | (c) | 4.48 | 8.16 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: |
| |||||||||||||||||||
| Expenses before expense reductions (f) |
0.52 | 0.52 | 0.54 | (c) | 0.54 | 0.55 | ||||||||||||||
| Expenses after expense reductions (f) |
0.51 | 0.49 | 0.49 | (c) | 0.49 | 0.50 | ||||||||||||||
| Net investment income (loss) |
3.99 | 3.75 | 3.94 | (c) | 4.13 | 3.96 | ||||||||||||||
| Portfolio turnover |
19 | 21 | 20 | 22 | 17 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$454,350 | $476,864 | $504,886 | $551,970 | $577,992 | |||||||||||||||
| Supplemental Ratios (%): |
|
|||||||||||||||||||
| Ratios of expenses to average net assets |
0.48 | 0.48 | 0.48 | (c) | 0.48 | 0.48 | ||||||||||||||
See Notes to Financial Statements
92
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Financial Highlights – continued
| Class B1 | Year ended | |||||||||||||||||||
| 3/31/19 | 3/31/18 | 3/31/17 | 3/31/16 | 3/31/15 | ||||||||||||||||
| Net asset value, beginning of period |
$8.65 | $8.66 | $8.90 | $8.86 | $8.49 | |||||||||||||||
| Income (loss) from investment operations |
|
|||||||||||||||||||
| Net investment income (loss) (d) |
$0.28 | $0.26 | $0.28 | (c) | $0.29 | $0.28 | ||||||||||||||
| Net realized and unrealized gain (loss) |
0.10 | (0.02 | ) | (0.26 | ) | 0.02 | 0.35 | |||||||||||||
| Total from investment operations |
$0.38 | $0.24 | $0.02 | $0.31 | $0.63 | |||||||||||||||
| Less distributions declared to shareholders |
|
|||||||||||||||||||
| From net investment income |
$(0.25 | ) | $(0.25 | ) | $(0.26 | ) | $(0.27 | ) | $(0.26 | ) | ||||||||||
| Net asset value, end of period (x) |
$8.78 | $8.65 | $8.66 | $8.90 | $8.86 | |||||||||||||||
| Total return (%) (r)(s)(t)(x) |
4.49 | 2.83 | 0.19 | (c) | 3.55 | 7.46 | ||||||||||||||
| Ratios (%) (to average net assets) and Supplemental data: |
|
|||||||||||||||||||
| Expenses before expense reductions (f) |
1.52 | 1.52 | 1.53 | (c) | 1.54 | 1.55 | ||||||||||||||
| Expenses after expense reductions (f) |
1.25 | 1.24 | 1.26 | (c) | 1.27 | 1.26 | ||||||||||||||
| Net investment income (loss) |
3.24 | 2.99 | 3.17 | (c) | 3.34 | 3.19 | ||||||||||||||
| Portfolio turnover |
19 | 21 | 20 | 22 | 17 | |||||||||||||||
| Net assets at end of period (000 omitted) |
$91 | $114 | $152 | $257 | $370 | |||||||||||||||
| Supplemental Ratios (%): |
|
|||||||||||||||||||
| Ratios of expenses to average net assets |
1.23 | 1.23 | 1.25 | (c) | 1.25 | 1.25 | ||||||||||||||
| (a) | Annualized. |
| (c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
| (d) | Per share data is based on average shares outstanding. |
| (f) | Ratios do not reflect reductions from fees paid indirectly, if applicable. |
| (i) | For Class R6, the period is from the class inception, August 1, 2017, through the stated period end. |
| (l) | Interest expense and fees include payments made to the holders of the floating rate certificates. |
| (n) | Not annualized. |
| (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. |
| (w) | Per share amount was less than $0.01. |
| (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
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Table of Contents
(1) Business and Organization
MFS Municipal Income Fund (the fund) is a diversified series of MFS Municipal Series Trust which 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 primarily in municipal instruments, which generally trade in the over-the-counter market. The value of municipal instruments can be affected by changes in their actual or perceived credit quality. The credit quality of, and the ability to pay principal and interest when due by, an issuer of a municipal instrument depends on the credit quality of the entity supporting the municipal instrument, how essential any services supported by the municipal instrument are, the sufficiency of any revenues or taxes that support the municipal instrument, and/or the willingness or ability of the appropriate government entity to approve any appropriations necessary to support the municipal instrument. Municipal instruments may be supported by insurance which typically guarantees the timely payment of all principal and interest due on the underlying municipal instrument. The value of a municipal instrument can be volatile and significantly affected by adverse tax changes or court rulings, legislative or political changes, changes in specific or general market and economic conditions in the region where the instrument is issued, and the financial condition of municipal issuers and of municipal instrument insurers of which there are a limited number. Also, because many municipal instruments are issued to finance similar projects, conditions in certain industries can significantly affect the fund and the overall municipal market. If the Internal Revenue Service determines an issuer of a municipal instrument has not complied with the applicable tax requirements, interest from the security could become taxable, the security could decline in value, and distributions made by the fund could be taxable to shareholders.
In March 2017, the FASB issued Accounting Standards Update 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20) – Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). For entities that hold callable debt securities at a premium, ASU 2017-08 requires that the premium be amortized to the earliest call date. ASU 2017-08 will be effective for fiscal years beginning after
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Notes to Financial Statements – continued
December 15, 2018, and interim periods within those fiscal years. Management has evaluated the potential impacts of ASU 2017-08 and believes that adoption of ASU 2017-08 will not have a material effect on the fund’s overall financial position or its overall results of operations.
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.
Investment Valuations – 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. 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. 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, and other market data.
The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under the fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. 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
95
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Notes to Financial Statements – continued
net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.
Various inputs are used in determining the value of the fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. The following is a summary of the levels used as of March 31, 2019 in valuing the fund’s assets or liabilities:
| Financial Instruments | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Municipal Bonds | $— | $3,601,347,614 | $— | $3,601,347,614 | ||||||||||||
| Mutual Funds | 108,660,481 | — | — | 108,660,481 | ||||||||||||
| Total | $108,660,481 | $3,601,347,614 | $— | $3,710,008,095 | ||||||||||||
For further information regarding security characteristics, see the Portfolio of Investments.
Inverse Floaters – The fund invests in municipal inverse floating rate securities which are structured by the issuer (known as primary market inverse floating rate securities) or by the fund utilizing the fund’s municipal bonds which have already been issued (known as self-deposited secondary market inverse floating rate securities) to have variable rates of interest which typically move in the opposite direction of short-term interest rates. A self-deposited secondary market inverse floating rate security is created when the fund transfers a fixed rate municipal bond to a special purpose trust (“the trust”), and causes the trust to (a) issue floating rate certificates to third parties, in an amount equal to a fraction of the par amount of the deposited bonds (these certificates usually pay tax-exempt interest at short-term interest rates that typically reset weekly; and the certificate holders typically, on seven days notice, have the option to tender their certificates to the trust or another party for redemption at par plus accrued interest), and (b) issue inverse floating rate certificates (sometimes referred to as “inverse floaters”) which are held by the fund. Such self-deposited inverse floaters held by the fund are accounted for as secured borrowings, with the municipal bonds reflected in the investments of the fund and amounts owed to the holders of the floating rate certificates under the provisions of the trust, which amounts are paid solely from the assets of the trust, reflected as liabilities of the fund in the Statement of Assets and Liabilities under the caption, “Payable to the holders of the floating rate certificates”. The carrying value of the fund’s payable to the holders of the floating rate
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Notes to Financial Statements – continued
certificates from trust assets as reported in the fund’s Statement of Assets and Liabilities approximates its fair value. The value of the payable to the holders of the floating rate certificates from trust assets as of the reporting date is considered level 2 under the fair value hierarchy disclosure. At March 31, 2019, the fund’s payable to the holders of the floating rate certificates from trust assets was $79,023,998 and the weighted average interest rate on the settled floating rate certificates issued by the trust was 1.56%. For the year ended March 31, 2019, the average payable to the holders of the settled floating rate certificates from trust assets was $41,853,138 at a weighted average interest rate of 1.62%. Interest expense and fees relate to interest payments made to the holders of certain floating rate certificates and associated fees, both of which are made from trust assets. Interest expense and fees are recorded as incurred. For the year ended March 31, 2019, interest expense and fees related to self-deposited inverse floaters amounted to $820,242 and are included in “Interest expense and fees” in the Statement of Operations. Primary market inverse floaters held by the fund are not accounted for as secured borrowings.
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 – Investment transactions are recorded on the trade date. 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. Interest payments received in additional securities are recorded on the ex-interest date in an amount equal to the value of the security on such date. 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.
Legal fees and other related expenses incurred to preserve and protect the value of a security owned are added to the cost of the security; other legal fees are expensed. Capital infusions made directly to the security issuer, which are generally non-recurring, incurred to protect or enhance the value of high-yield debt securities, are reported as additions to the cost basis of the security. Costs that are incurred to negotiate the terms or conditions of capital infusions or that are expected to result in a plan of
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Notes to Financial Statements – continued
reorganization are reported as realized losses. Ongoing costs incurred to protect or enhance an investment, or costs incurred to pursue other claims or legal actions, are expensed.
Fees Paid Indirectly – The fund’s custody fee may be reduced by a credit earned under an arrangement that measures the value of U.S. dollars deposited with the custodian by the fund. The amount of the credit, for the year ended March 31, 2019, is shown as a reduction of total expenses in the Statement of Operations.
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 and tax-exempt 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.
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. Distributions in excess of net investment income or net realized gains are temporary overdistributions for financial statement purposes resulting from differences in the recognition or classification of income or distributions for financial statement and tax purposes.
Book/tax differences primarily relate to expiration of capital loss carryforwards and amortization and accretion of debt securities.
The tax character of distributions declared to shareholders for the last two fiscal years is as follows:
| Year ended 3/31/19 |
Year ended 3/31/18 |
|||||||
| Ordinary income (including any short-term capital gains) | $1,371,427 | $1,550,000 | ||||||
| Tax-exempt income | 116,499,812 | 107,952,996 | ||||||
| Total distributions | $117,871,239 | $109,502,996 | ||||||
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Notes to Financial Statements – continued
The federal tax cost and the tax basis components of distributable earnings were as follows:
| As of 3/31/19 | ||||
| Cost of investments | $3,464,316,127 | |||
| Gross appreciation | 174,502,764 | |||
| Gross depreciation | (7,834,794 | ) | ||
| Net unrealized appreciation (depreciation) | $166,667,970 | |||
| Undistributed tax-exempt income | 12,430,367 | |||
| Capital loss carryforwards | (25,194,961 | ) | ||
| Other temporary differences | (10,458,916 | ) | ||
As of March 31, 2019, 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 | $(23,790,126 | ) | ||
| Long-Term | (1,404,835 | ) | ||
| Total | $(25,194,961 | ) |
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 due to differences in separate class expenses. Class B and B1 shares will convert to Class A and A1 shares, respectively, approximately eight years after purchase. Class C shares will convert to Class A shares approximately ten 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 |
||||||||
| Year ended 3/31/19 |
Year ended 3/31/18 (i) |
|||||||
| Class A | $51,826,775 | $45,341,921 | ||||||
| Class B | 391,018 | 577,594 | ||||||
| Class C | 4,231,250 | 4,953,451 | ||||||
| Class I | 27,023,739 | 37,756,178 | ||||||
| Class R6 | 17,557,730 | 2,715,204 | ||||||
| Class A1 | 16,837,720 | 18,154,709 | ||||||
| Class B1 | 3,007 | 3,939 | ||||||
| Total | $117,871,239 | $109,502,996 | ||||||
| (i) | For Class R6, the period is from the class inception, August 1, 2017, through the stated period end. |
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(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. For the period April 1, 2018 through July 31, 2018, the management fee was computed daily and paid monthly at the following annual rates based on the fund’s average daily net assets:
| Up to $1.3 billion | 0.40 | % | ||
| In excess of $1.3 billion and up to $2 billion | 0.37 | % | ||
| In excess of $2 billion | 0.35 | % |
Effective August 1, 2018, 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 $1.3 billion | 0.40 | % | ||
| In excess of $1.3 billion and up to $2 billion | 0.37 | % | ||
| In excess of $2 billion and up to $5 billion | 0.35 | % | ||
| In excess of $5 billion and up to $10 billion | 0.34 | % | ||
| In excess of $10 billion | 0.33 | % |
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. For the year ended March 31, 2019, this management fee reduction amounted to $331,178, which is included in the reduction of total expenses in the Statement of Operations. The management fee incurred for the year ended March 31, 2019 was equivalent to an annual effective rate of 0.36% 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, and investment-related expenses (including interest expenses and fees associated with investments in inverse floating rate instruments), such that total fund operating expenses do not exceed the following rates annually of each class’s average daily net assets:
| Class A | Class B | Class C | Class I | Class R6 | Class A1 | Class B1 | ||||||||||||||||||||
| 0.73% | 1.48 | % | 1.48 | % | 0.48 | % | 0.42 | % | 0.48 | % | 1.23 | % | ||||||||||||||
This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2019. For the year ended March 31, 2019, this reduction amounted to $204,385, 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 $106,229 and $3,700 for the year ended March 31, 2019, as its portion of the initial sales charge on sales of Class A and Class A1 shares of the fund, respectively.
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
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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.
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% | $3,806,130 | |||||||||||||||
| Class B | 0.75% | 0.25% | 1.00% | 1.00% | 146,550 | |||||||||||||||
| Class C | 0.75% | 0.25% | 1.00% | 1.00% | 1,589,479 | |||||||||||||||
| Class B1 | 0.75% | 0.25% | 1.00% | 0.75% | 1,032 | |||||||||||||||
| Total Distribution and Service Fees |
|
$5,543,191 | ||||||||||||||||||
| (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 March 31, 2019 based on each class’s average daily net assets. MFD has agreed in writing to reduce the Class B1 service fee rate to 0.00% for all Class B1 shares. This written agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until July 31, 2019. For the year ended March 31, 2019, this reduction amounted to $258 and is included in the reduction of total expenses in the Statement of Operations. MFD has voluntarily agreed to rebate a portion of each class’s 0.25% service fee attributable to accounts for which MFD retains the 0.25% service fee except for accounts attributable to MFS or its affiliates’ seed money. For the year ended March 31, 2019, this rebate amounted to $28,217 and $447 for Class A and Class C, respectively, and is included in the reduction of total expenses in the Statement of Operations. |
Certain Class A and Class A1 shares are subject to a contingent deferred sales charge (CDSC) in the event of a shareholder redemption within 18 months of purchase. Class B and Class B1 shares are subject to a CDSC in the event of a shareholder redemption within six years of 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 March 31, 2019, were as follows:
| Amount | ||||
| Class A | $166,356 | |||
| Class B | 18,496 | |||
| Class C | 20,557 | |||
| Class A1 | — | |||
| Class B1 | 311 | |||
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 March 31, 2019, the fee was $186,777, which equated to 0.0055% annually of the fund’s average daily net assets. MFSC also receives payment from the fund for out-of-pocket expenses, sub-accounting and other shareholder servicing costs
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which may be paid to affiliated and unaffiliated service providers. Class R6 shares do not incur sub-accounting fees. For the year ended March 31, 2019, these out-of-pocket expenses, sub-accounting and other shareholder servicing costs amounted to $2,204,953.
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 incurred for the year ended March 31, 2019 was equivalent to an annual effective rate of 0.0143% 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. 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 for their services to the fund from MFS. Certain officers and Trustees of the fund are officers or directors of MFS, MFD, and MFSC.
Prior to December 31, 2001, the fund had an unfunded defined benefit plan (“DB plan”) for independent Trustees. As of December 31, 2001, the Board took action to terminate the DB plan with respect to then-current and any future independent Trustees, such that the DB plan covers only certain of those former independent Trustees who retired on or before December 31, 2001. The DB plan resulted in a pension expense of $4,950 and is included in “Independent Trustees’ compensation” in the Statement of Operations for the year ended March 31, 2019. The liability for deferred retirement benefits payable to those former independent Trustees under the DB plan amounted to $7,144 at March 31, 2019, and is included in “Payable for independent Trustees’ compensation” in the Statement of Assets and Liabilities.
Other – This fund and certain other funds managed by MFS (the funds) have entered into a service agreement (the ISO Agreement) which provides for payment of fees solely by the funds to Tarantino LLC in return for the provision of services of an Independent Senior Officer (ISO) for the funds. Frank L. Tarantino serves as the ISO and is an officer of the funds and the sole member of Tarantino LLC. The funds can terminate the ISO Agreement with Tarantino LLC at any time under the terms of the ISO Agreement. For the year ended March 31, 2019, the fee paid by the fund under this agreement was $5,866 and is included in “Miscellaneous” expense in the Statement of Operations. MFS has agreed to bear all expenses associated with office space, other administrative support, and supplies provided to the ISO.
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.
On July 31, 2017, MFS purchased 5,702 shares of Class R6 for an aggregate amount of $50,000 as an initial investment in the class.
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(4) Portfolio Securities
For the year ended March 31, 2019, purchases and sales of investments, other than short-term obligations, aggregated $950,220,429 and $635,940,429, 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 3/31/19 |
Year ended 3/31/18 (i) |
|||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Shares sold | ||||||||||||||||
| Class A |
72,952,086 | $625,333,183 | 45,049,533 | $393,786,668 | ||||||||||||
| Class B |
90,261 | 779,719 | 94,197 | 827,680 | ||||||||||||
| Class C |
2,776,118 | 23,970,837 | 3,286,186 | 28,882,611 | ||||||||||||
| Class I |
53,211,721 | 457,377,580 | 49,253,278 | 430,449,961 | ||||||||||||
| Class R6 |
14,470,115 | 124,344,568 | 58,148,446 | 501,209,636 | ||||||||||||
| Class A1 |
298,465 | 2,571,077 | 378,134 | 3,311,653 | ||||||||||||
| Class B1 |
1,179 | 10,148 | 982 | 8,606 | ||||||||||||
| 143,799,945 | $1,234,387,112 | 156,210,756 | $1,358,476,815 | |||||||||||||
| Shares issued to shareholders in reinvestment of distributions |
| |||||||||||||||
| Class A |
5,758,280 | $49,607,765 | 4,958,239 | $43,321,188 | ||||||||||||
| Class B |
42,683 | 368,312 | 61,940 | 542,274 | ||||||||||||
| Class C |
431,364 | 3,729,001 | 503,852 | 4,418,367 | ||||||||||||
| Class I |
1,886,689 | 16,244,006 | 3,068,844 | 26,811,257 | ||||||||||||
| Class R6 |
2,034,420 | 17,502,415 | 314,258 | 2,706,197 | ||||||||||||
| Class A1 |
1,656,680 | 14,284,314 | 1,741,211 | 15,224,426 | ||||||||||||
| Class B1 |
348 | 3,007 | 438 | 3,835 | ||||||||||||
| 11,810,464 | $101,738,820 | 10,648,782 | $93,027,544 | |||||||||||||
| Shares reacquired |
|
|||||||||||||||
| Class A |
(51,073,148 | ) | $(437,921,258 | ) | (28,476,849 | ) | $(248,633,305 | ) | ||||||||
| Class B |
(798,364 | ) | (6,877,489 | ) | (815,616 | ) | (7,143,542 | ) | ||||||||
| Class C |
(6,962,684 | ) | (60,104,128 | ) | (4,019,812 | ) | (35,264,495 | ) | ||||||||
| Class I |
(33,723,298 | ) | (288,787,286 | ) | (87,175,081 | ) | (754,696,815 | ) | ||||||||
| Class R6 |
(17,522,238 | ) | (150,618,600 | ) | (1,321,276 | ) | (11,373,210 | ) | ||||||||
| Class A1 |
(5,385,118 | ) | (46,357,354 | ) | (5,288,704 | ) | (46,261,651 | ) | ||||||||
| Class B1 |
(4,331 | ) | (37,390 | ) | (5,769 | ) | (50,617 | ) | ||||||||
| (115,469,181 | ) | $(990,703,505 | ) | (127,103,107 | ) | $(1,103,423,635 | ) | |||||||||
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| Year ended 3/31/19 |
Year ended 3/31/18 (i) |
|||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||
| Net change |
|
|||||||||||||||
| Class A |
27,637,218 | $237,019,690 | 21,530,923 | $188,474,551 | ||||||||||||
| Class B |
(665,420 | ) | (5,729,458 | ) | (659,479 | ) | (5,773,588 | ) | ||||||||
| Class C |
(3,755,202 | ) | (32,404,290 | ) | (229,774 | ) | (1,963,517 | ) | ||||||||
| Class I |
21,375,112 | 184,834,300 | (34,852,959 | ) | (297,435,597 | ) | ||||||||||
| Class R6 |
(1,017,703 | ) | (8,771,617 | ) | 57,141,428 | 492,542,623 | ||||||||||
| Class A1 |
(3,429,973 | ) | (29,501,963 | ) | (3,169,359 | ) | (27,725,572 | ) | ||||||||
| Class B1 |
(2,804 | ) | (24,235 | ) | (4,349 | ) | (38,176 | ) | ||||||||
| 40,141,228 | $345,422,427 | 39,756,431 | $348,080,724 | |||||||||||||
| (i) | For Class R6, the period is from the class inception, August 1, 2017, through the stated period end. |
Class T shares were not publicly available for sale during the period. Please see the fund’s prospectus for details.
Effective June 1, 2019, purchases of the fund’s Class B and Class B1 shares are closed to new and existing investors subject to certain exceptions. Please see the fund’s prospectus for details.
(6) Line of Credit
The fund and certain other funds managed by MFS participate in a $1.25 billion unsecured committed line of credit, subject to a $1 billion sublimit, 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 one month LIBOR, the Federal Funds Effective Rate and the Overnight Bank Funding Rate. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds. 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 March 31, 2019, the fund’s commitment fee and interest expense were $18,567 and $0, respectively, and are included in “Interest expense and fees” in the Statement of Operations.
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(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 fund assumes the following to be affiliated issuers:
| Affiliated Issuers | Beginning Shares/Par Amount |
Acquisitions Shares/Par Amount |
Dispositions Shares/Par Amount |
Ending Shares/Par Amount |
||||||||||||||||
| MFS Institutional Money Market Portfolio |
43,763,624 | 749,840,677 | (684,943,820 | ) | 108,660,481 | |||||||||||||||
| Affiliated Issuers | Realized Gain (Loss) |
Change in Unrealized Appreciation/ Depreciation |
Capital Gain Distributions |
Dividend Income |
Ending Value |
|||||||||||||||
| MFS Institutional Money Market Portfolio |
$10,987 | $10,063 | $— | $1,475,012 | $108,660,481 | |||||||||||||||
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of MFS Municipal Series Trust and the Shareholders of
MFS Municipal Income Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of MFS Municipal Income Fund (the “Fund”), including the portfolio of investments, as of March 31, 2019, 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. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of March 31, 2019, and 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 the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights 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 Fund 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 and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its 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 Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, 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 and financial highlights. 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 and financial highlights. Our procedures included confirmation of securities owned as of March 31, 2019, by
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correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
May 17, 2019
We have served as the auditor of one or more of the MFS investment companies since 1924.
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TRUSTEES AND OFFICERS — IDENTIFICATION AND BACKGROUND
The Trustees and Officers of the Trust, as of May 1, 2019, 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) with Fund |
Trustee/Officer Since (h) |
Number of |
Principal the Past Five Years |
Other Directorships | |||||
| INTERESTED TRUSTEES | ||||||||||
| Robert J. Manning (k) (age 55) |
Trustee | February 2004 | 135 | Massachusetts Financial Services Company, Executive Chairman (since January 2017); Director; Chairman of the Board; Chief Executive Officer (until 2015); Co-Chief Executive Officer (2015-2016) |
N/A | |||||
| Robin A. Stelmach (k) (age 57) |
Trustee | January 2014 | 135 | Massachusetts Services Company,
Vice Chair (since January 2017); Chief Operating Officer and Executive Vice |
N/A | |||||
| INDEPENDENT TRUSTEES | ||||||||||
| John P. Kavanaugh (age 64) |
Trustee and Chair of Trustees | January 2009 | 135 | Private investor | N/A | |||||
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| Name, Age |
Position(s) with Fund |
Trustee/Officer Since (h) |
Number of |
Principal the Past Five Years |
Other Directorships | |||||
| Steven E. Buller (age 67) |
Trustee | February 2014 | 135 | Financial Accounting Standards Advisory Council, Chairman (2014-2015); Public Company Accounting Oversight Board, Standing Advisory Group, Member (until 2014); BlackRock, Inc. (investment
management), Managing Director (until 2014), BlackRock Finco UK (investment management), Director (until 2014) |
N/A | |||||
| John A. Caroselli (age 64) |
Trustee | March 2017 | 135 | JC Global Advisors, LLC (management consulting), President (since 2015); First Capital Corporation (commercial finance), Executive Vice President (until 2015) |
N/A | |||||
| Maureen R. Goldfarb (age 64) |
Trustee | January 2009 | 135 | Private investor | N/A | |||||
| Michael Hegarty (age 74) |
Trustee | December 2004 | 135 | Private investor | Rouse Properties Inc., Director (until 2016); Capmark Financial Group Inc., Director (until 2015) | |||||
| Peter D. Jones (age 63) |
Trustee | January 2019 | 135 | Franklin Templeton Distributors, Inc. (investment management), President (until 2015); Franklin Templeton Institutional, LLC (investment management), Chairman (until 2015) | N/A | |||||
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| Name, Age |
Position(s) with Fund |
Trustee/Officer Since (h) |
Number of |
Principal the Past Five Years |
Other Directorships | |||||
| James W. Kilman, Jr. (age 58) |
Trustee | January 2019 | 135 | KielStrand Capital LLC (family office and merchant bank), Chief Executive Officer (since 2016); Morgan Stanley & Co. (financial services), Vice Chairman of Investment Banking, Co-Head of Diversified Financials Coverage – Financial Institutions Investment Banking Group (until 2016) | Alpha-En Corporation, Director (since 2016) | |||||
| Clarence Otis, Jr. (age 63) |
Trustee | March 2017 | 135 | Darden Restaurants, Inc., Chief Executive Officer (until 2014) | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director; Federal Reserve Bank of Atlanta, Director (until 2015) | |||||
| Maryanne L. Roepke (age 63) |
Trustee | May 2014 | 135 | American Century Investments (investment management), Senior Vice President and Chief Compliance Officer (until 2014) |
N/A | |||||
| Laurie J. Thomsen (age 61) |
Trustee | March 2005 | 135 | Private investor | The Travelers Companies, Director; Dycom Industries, Inc., Director (since 2015) | |||||
| Name, Age |
Position(s) Held with Fund |
Trustee/Officer Since (h) |
Number of MFS |
Principal the Past Five Years | ||||
| OFFICERS | ||||||||
| Christopher R. Bohane (k) (age 45) |
Assistant Secretary and Assistant Clerk | July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel |
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| Name, Age |
Position(s) Held with Fund |
Trustee/Officer Since (h) |
Number of MFS |
Principal the Past Five Years | ||||
| Kino Clark (k) (age 50) |
Assistant Treasurer |
January 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
| John W. Clark, Jr. (k) (age 52) |
Assistant Treasurer | April 2017 | 135 | Massachusetts Financial Services Company, Vice President (since March 2017); Deutsche Bank (financial services), Department Head – Treasurer’s Office (until February 2017) | ||||
| Thomas H. Connors (k) (age 59) |
Assistant Secretary and Assistant Clerk |
September 2012 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
| Ethan D. Corey (k) (age 55) |
Assistant Secretary and Assistant Clerk |
July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President and Associate General Counsel | ||||
| David L. DiLorenzo (k) (age 50) |
President | July 2005 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
| Heidi W. Hardin (k) (age 51) |
Secretary and Clerk | April 2017 | 135 | Massachusetts Financial Services Company, Executive Vice President and General Counsel (since March 2017); Harris Associates (investment management), General Counsel (from September 2015 to January 2017); Janus Capital Management LLC (investment management), Senior Vice President and General Counsel (until September 2015) | ||||
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| Name, Age |
Position(s) Held with Fund |
Trustee/Officer Since (h) |
Number of MFS |
Principal the Past Five Years | ||||
| Brian E. Langenfeld (k) (age 46) |
Assistant Secretary and Assistant Clerk |
June 2006 | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | ||||
| Amanda S. Mooradian (k) (age 40) |
Assistant Secretary and Assistant Clerk |
September 2018 | 135 | Massachusetts Financial Services Company, Assistant Vice President and Counsel | ||||
| Susan A. Pereira (k) (age 48) |
Assistant Secretary and Assistant Clerk |
July 2005 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
| Kasey L. Phillips (k) (age 48) |
Assistant Treasurer | September 2012 | 135 | Massachusetts Financial Services Company, Vice President | ||||
| Matthew A. Stowe (k) (age 44) |
Assistant Secretary and Assistant Clerk | October 2014 | 135 | Massachusetts Financial Services Company, Vice President and Assistant General Counsel | ||||
| Frank L. Tarantino (age 75) |
Independent Senior Officer |
June 2004 | 135 | Tarantino LLC (provider of compliance services), Principal | ||||
| Martin J. Wolin (k) (age 51) |
Chief Compliance Officer | July 2015 | 135 | Massachusetts Financial Services Company, Senior Vice President and Chief Compliance Officer (since July 2015); Mercer (financial service provider), Chief Risk and Compliance Officer, North America and Latin America (until June 2015) | ||||
| James O. Yost (k) (age 58) |
Treasurer | September 1990 | 135 | Massachusetts Financial Services Company, Senior Vice President | ||||
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| (h) | Date first appointed to serve as Trustee/officer of an MFS Fund. Each Trustee has served continuously since appointment unless indicated otherwise. For the period from December 15, 2004 until February 22, 2005, Mr. Manning served as Advisory Trustee. 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. |
Each Trustee (other than Messrs. Jones and Kilman) 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. 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, Hegarty, 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.
The Statement of Additional Information for a Fund includes further information about the Trustees and is available without charge upon request by calling 1-800-225-2606.
| Investment Adviser | Custodian | |
| Massachusetts Financial Services Company Boston, MA 02199-7618 |
JPMorgan Chase Bank, NA 4 Metrotech Center New York, NY 11245 | |
| Distributor | Independent Registered Public Accounting Firm | |
| MFS Fund Distributors, Inc. Boston, MA 02199-7618 |
Deloitte & Touche LLP 200 Berkeley Street Boston, MA 02116 | |
| Portfolio Manager(s) | ||
| Jason Kosty Geoffrey Schechter |
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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 on Form N-Q or as an exhibit to its reports on Form N-PORT (for first and third fiscal quarters ending March 31, 2019 or after). The fund’s Form N-Q or Form N-PORT reports are available on the SEC’s website 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 selecting the “Resources” tab and clicking on “Prospectus and Reports”.
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/en-us/what-we-do/announcements.html or at mfs.com/openendfunds by choosing the fund’s name.
INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS
The fund has entered into contractual arrangements with an investment adviser, administrator, distributor, shareholder servicing agent, 529 program manager (if applicable), 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 2019 income tax forms in January 2020. The following information is provided pursuant to provisions of the Internal Revenue Code.
Of the dividends paid from net investment income during the fiscal year, 98.84% is designated as exempt interest dividends for federal income tax purposes. If the fund has earned income on private activity bonds, a portion of the dividends paid may be considered a tax preference item for purposes of computing a shareholder’s alternative minimum tax.
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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. | |
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| 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. | ||
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| 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 current Code of Ethics is filed as an exhibit to this Form N-CSR.
| ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Messrs. Steven E. Buller, Michael Hegarty, 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, Hegarty, 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.
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| ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Items 4(a) through 4(d) and 4(g):
The Board of Trustees has appointed Deloitte & Touche LLP (“Deloitte”) to serve as independent accountants to a series of the Registrant (each a “Fund” and collectively the “Funds”). The tables below set forth the audit fees billed to each Fund as well as fees for non-audit services provided to each 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 March 31, 2019 and 2018, audit fees billed to each Fund by Deloitte were as follows:
| Audit Fees | ||||||||
| 2019 | 2018 | |||||||
| Fees billed by Deloitte: |
||||||||
| MFS Alabama Municipal Bond Fund |
47,985 | 46,924 | ||||||
| MFS Arkansas Municipal Bond Fund |
47,985 | 46,924 | ||||||
| MFS California Municipal Bond Fund |
47,985 | 46,924 | ||||||
| MFS Georgia Municipal Bond Fund |
47,985 | 46,924 | ||||||
| MFS Maryland Municipal Bond Fund |
47,985 | 46,924 | ||||||
| MFS Massachusetts Municipal Bond Fund |
47,985 | 46,924 | ||||||
| MFS Mississippi Municipal Bond Fund |
47,985 | 46,924 | ||||||
| MFS Municipal Income Fund |
54,036 | 52,839 | ||||||
| MFS New York Municipal Bond Fund |
47,985 | 46,924 | ||||||
| MFS North Carolina Municipal Bond Fund |
47,985 | 46,924 | ||||||
| MFS Pennsylvania Municipal Bond Fund |
47,985 | 46,924 | ||||||
| MFS South Carolina Municipal Bond Fund |
47,985 | 46,924 | ||||||
| MFS Tennessee Municipal Bond Fund |
47,985 | 46,924 | ||||||
| MFS Virginia Municipal Bond Fund |
47,985 | 46,924 | ||||||
| MFS West Virginia Municipal Bond Fund |
47,985 | 46,924 | ||||||
|
|
|
|
|
|||||
| Total |
725,826 | 709,775 | ||||||
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For the fiscal years ended March 31, 2019 and 2018, fees billed by Deloitte for audit-related, tax and other services provided to each Fund and for audit-related, tax and other services provided to MFS and MFS Related Entities were as follows:
| Audit-Related Fees1 | Tax Fees2 | All Other Fees3 | ||||||||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
| Fees billed by Deloitte: |
||||||||||||||||||||||||
| To MFS Alabama Municipal Bond Fund |
0 | 0 | 6,133 | 5,995 | 0 | 0 | ||||||||||||||||||
| To MFS Arkansas Municipal Bond Fund |
0 | 0 | 6,133 | 5,995 | 0 | 0 | ||||||||||||||||||
| To MFS California Municipal Bond Fund |
0 | 0 | 6,133 | 5,995 | 0 | 0 | ||||||||||||||||||
| To MFS Georgia Municipal Bond Fund |
0 | 0 | 6,133 | 5,995 | 0 | 0 | ||||||||||||||||||
| To MFS Maryland Municipal Bond Fund |
0 | 0 | 6,133 | 5,995 | 0 | 0 | ||||||||||||||||||
| To MFS Massachusetts Municipal Bond Fund |
0 | 0 | 6,133 | 5,995 | 0 | 0 | ||||||||||||||||||
| To MFS Mississippi Municipal Bond Fund |
0 | 0 | 6,133 | 5,995 | 0 | 0 | ||||||||||||||||||
| To MFS Municipal Income Fund |
0 | 0 | 6,197 | 6,058 | 0 | 0 | ||||||||||||||||||
| To MFS New York Municipal Bond Fund |
0 | 0 | 6,133 | 5,995 | 0 | 0 | ||||||||||||||||||
| To MFS North Carolina Municipal Bond Fund |
0 | 0 | 6,133 | 5,995 | 0 | 0 | ||||||||||||||||||
| To MFS Pennsylvania Municipal Bond Fund |
0 | 0 | 6,133 | 5,995 | 0 | 0 | ||||||||||||||||||
| To MFS South Carolina Municipal Bond Fund |
0 | 0 | 6,133 | 5,995 | 0 | 0 | ||||||||||||||||||
| To MFS Tennessee Municipal Bond Fund |
0 | 0 | 6,133 | 5,995 | 0 | 0 | ||||||||||||||||||
| To MFS Virginia Municipal Bond Fund |
0 | 0 | 6,133 | 5,995 | 0 | 0 | ||||||||||||||||||
| To MFS West Virginia Municipal Bond Fund |
0 | 0 | 6,133 | 5,995 | 0 | 0 | ||||||||||||||||||
| Total fees billed by Deloitte to above Funds: |
0 | 0 | 92,059 | 89,988 | 0 | 0 | ||||||||||||||||||
| Audit-Related Fees1 | Tax Fees2 | All Other Fees3 | ||||||||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
| Fees billed by Deloitte: |
||||||||||||||||||||||||
| To MFS and MFS Related Entities of MFS Alabama Municipal Bond Fund* |
0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS Arkansas Municipal Bond Fund* |
0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS California Municipal Bond Fund* |
0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS Georgia Municipal Bond Fund* |
0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS Maryland Municipal Bond Fund* |
0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
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| To MFS and MFS Related Entities of MFS Massachusetts Municipal Bond Fund* |
0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS Mississippi Municipal Bond Fund* |
0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS Municipal Income Fund* |
0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS New York Municipal Bond Fund* |
0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS North Carolina Municipal Bond Fund* |
0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS Pennsylvania Municipal Bond Fund* |
0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS South Carolina Municipal Bond Fund* |
0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS Tennessee Municipal Bond Fund* |
0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS Virginia Municipal Bond Fund* |
0 | 0 | 0 | 0 | 5,390 | 5,390 | ||||||||||||||||||
| To MFS and MFS Related Entities of MFS West Virginia Municipal Bond Fund* |
0 | 0 | 0 | 0 | 5,390 | 5,390 |
| Aggregate fees for non-audit services |
||||||||
| 2019 | 2018 | |||||||
| Fees billed by Deloitte: |
||||||||
| To MFS Alabama Municipal Bond Fund, MFS and MFS Related Entities# |
11,523 | 44,927 | ||||||
| To MFS Arkansas Municipal Bond Fund, MFS and MFS Related Entities# |
11,523 | 44,927 | ||||||
| To MFS California Municipal Bond Fund, MFS and MFS Related Entities# |
11,523 | 44,927 | ||||||
| To MFS Georgia Municipal Bond Fund, MFS and MFS Related Entities# |
11,523 | 44,927 | ||||||
| To MFS Maryland Municipal Bond Fund, MFS and MFS Related Entities# |
11,523 | 44,927 | ||||||
| To MFS Massachusetts Municipal Bond Fund, MFS and MFS Related Entities# |
11,523 | 44,927 | ||||||
| To MFS Mississippi Municipal Bond Fund, MFS and MFS Related Entities# |
11,523 | 44,927 | ||||||
| To MFS Municipal Income Fund, MFS and MFS Related Entities# |
11,587 | 44,990 | ||||||
| To MFS New York Municipal Bond Fund, MFS and MFS Related Entities# |
11,523 | 44,927 | ||||||
| To MFS North Carolina Municipal Bond Fund, MFS and MFS Related Entities# |
11,523 | 44,927 | ||||||
| To MFS Pennsylvania Municipal Bond Fund, MFS and MFS Related Entities# |
11,523 | 44,927 | ||||||
| To MFS South Carolina Municipal Bond Fund, MFS and MFS Related Entities# |
11,523 | 44,927 | ||||||
| To MFS Tennessee Municipal Bond Fund, MFS and MFS Related Entities# |
11,523 | 44,927 | ||||||
| To MFS Virginia Municipal Bond Fund, MFS and MFS Related Entities# |
11,523 | 44,927 | ||||||
| To MFS West Virginia Municipal Bond Fund, MFS and MFS Related Entities# |
11,523 | 44,927 | ||||||
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| * | 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 Funds (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 Deloitte, as the case may be, for non-audit services rendered to the Funds 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 Deloitte other than those reported under “Audit Fees,” “Audit-Related Fees” and “Tax Fees”. |
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 Fund 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.
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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 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable to the Registrant.
| ITEM 6. | INVESTMENTS |
A schedule of investments of the Registrant is included as part of the report to shareholders of such series under Item 1 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.
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| 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 second fiscal quarter of 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. | EXHIBITS. |
| (a) | File the exhibits listed below as part of this form. Letter or number the exhibits in the sequence indicated. |
| (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: Code of Ethics 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 |
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| (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. |
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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.
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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 MUNICIPAL SERIES TRUST
| By (Signature and Title)* | DAVID L. DILORENZO | |
| David L. DiLorenzo, President |
Date: May 17, 2019
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)* | DAVID L. DILORENZO | |
| David L. DiLorenzo, President (Principal Executive Officer) |
Date: May 17, 2019
| By (Signature and Title)* | JAMES O. YOST | |
| James O. Yost, Treasurer (Principal Financial Officer and Accounting Officer) |
Date: May 17, 2019
* Print name and title of each signing officer under his or her signature.
