Quarterly Report
February 29, 2020
MFS® Intermediate High
Income Fund
Income Fund
Portfolio of Investments
2/29/20 (unaudited)
The Portfolio of Investments is a
complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
| Issuer | Shares/Par | Value ($) | ||
| Bonds – 134.7% | ||||
| Aerospace – 3.9% | ||||
| Bombardier, Inc., 7.5%, 3/15/2025 (n) | $ | 358,000 | $353,525 | |
| Bombardier, Inc., 7.875%, 4/15/2027 (n) | 125,000 | 124,063 | ||
| F-Brasile S.p.A./F-Brasile U.S. LLC, 7.375%, 8/15/2026 (n) | 200,000 | 212,500 | ||
| Moog, Inc., 4.25%, 12/15/2027 (n) | 385,000 | 391,737 | ||
| TransDigm, Inc., 6.5%, 7/15/2024 | 185,000 | 189,162 | ||
| TransDigm, Inc., 6.25%, 3/15/2026 (n) | 200,000 | 211,750 | ||
| TransDigm, Inc., 6.375%, 6/15/2026 | 185,000 | 190,097 | ||
| TransDigm, Inc., 5.5%, 11/15/2027 (n) | 265,000 | 264,669 | ||
| $1,937,503 | ||||
| Automotive – 3.6% | ||||
| Adient Global Holdings Ltd., 4.875%, 8/15/2026 (n) | $ | 200,000 | $172,500 | |
| Allison Transmission, Inc., 5%, 10/01/2024 (n) | 575,000 | 581,446 | ||
| Allison Transmission, Inc., 5.875%, 6/01/2029 (n) | 125,000 | 135,469 | ||
| Dana, Inc., 5.375%, 11/15/2027 | 98,000 | 98,980 | ||
| IAA Spinco, Inc., 5.5%, 6/15/2027 (n) | 295,000 | 312,331 | ||
| KAR Auction Services, Inc., 5.125%, 6/01/2025 (n) | 230,000 | 236,302 | ||
| Panther BR Aggregator 2 LP/Panther Finance Co., Inc., 8.5%, 5/15/2027 (n) | 245,000 | 248,993 | ||
| $1,786,021 | ||||
| Broadcasting – 4.1% | ||||
| Diamond Sports Group LLC/Diamond Sports Finance Co., 6.625%, 8/15/2027 (n) | $ | 75,000 | $60,499 | |
| iHeartCommunications, Inc., 6.375%, 5/01/2026 (n) | 120,000 | 128,964 | ||
| iHeartCommunications, Inc., 8.375%, 5/01/2027 | 130,000 | 141,173 | ||
| iHeartCommunications, Inc., 5.25%, 8/15/2027 (n) | 55,000 | 56,722 | ||
| Lions Gate Capital Holding Co., 5.875%, 11/01/2024 | 140,000 | 135,408 | ||
| National CineMedia LLC, 5.875%, 4/15/2028 (n) | 150,000 | 153,269 | ||
| Netflix, Inc., 5.875%, 2/15/2025 | 375,000 | 418,125 | ||
| Netflix, Inc., 5.875%, 11/15/2028 | 160,000 | 179,888 | ||
| Nexstar Escrow Corp., 5.625%, 7/15/2027 (n) | 235,000 | 243,237 | ||
| Terrier Media Buyer, Inc., 8.875%, 12/15/2027 (n) | 60,000 | 59,550 | ||
| WMG Acquisition Corp., 5%, 8/01/2023 (n) | 65,000 | 66,138 | ||
| WMG Acquisition Corp., 4.875%, 11/01/2024 (n) | 315,000 | 323,662 | ||
| WMG Acquisition Corp., 5.5%, 4/15/2026 (n) | 65,000 | 67,925 | ||
| $2,034,560 | ||||
| Brokerage & Asset Managers – 0.8% | ||||
| LPL Holdings, Inc., 4.625%, 11/15/2027 (n) | $ | 405,000 | $410,063 | |
| Building – 7.4% | ||||
| ABC Supply Co., Inc., 5.875%, 5/15/2026 (n) | $ | 340,000 | $352,036 | |
| ABC Supply Co., Inc., 4%, 1/15/2028 (n) | 355,000 | 346,569 | ||
| Beacon Escrow Corp., 4.875%, 11/01/2025 (n) | 238,000 | 229,599 | ||
| Beacon Roofing Supply, Inc., 4.5%, 11/15/2026 (n) | 105,000 | 104,213 | ||
| Core & Main LP, 8.625%, (8.625% cash or 9.375% PIK) 9/15/2024 (p) | 85,000 | 88,188 | ||
| Core & Main LP, 6.125%, 8/15/2025 (n) | 180,000 | 182,268 | ||
| Cornerstone Building Brands, Inc., 8%, 4/15/2026 (n) | 145,000 | 143,506 | ||
| HD Supply, Inc., 5.375%, 10/15/2026 (n) | 305,000 | 319,106 | ||
| James Hardie International Finance Ltd., 5%, 1/15/2028 (n) | 300,000 | 312,750 | ||
| New Enterprise Stone & Lime Co., Inc., 10.125%, 4/01/2022 (n) | 150,000 | 156,562 | ||
| New Enterprise Stone & Lime Co., Inc., 6.25%, 3/15/2026 (n) | 201,000 | 210,910 | ||
| Patrick Industries, Inc., 7.5%, 10/15/2027 (n) | 120,000 | 129,600 | ||
| PriSo Acquisition Corp., 9%, 5/15/2023 (n) | 213,000 | 207,675 | ||
| SRS Distribution, Inc., 8.25%, 7/01/2026 (n) | 75,000 | 78,750 | ||
| Standard Industries, Inc., 5.375%, 11/15/2024 (n) | 325,000 | 329,095 | ||
| Standard Industries, Inc., 6%, 10/15/2025 (n) | 115,000 | 120,175 | ||
1
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Building – continued | ||||
| Summit Materials LLC/Summit Materials Finance Co., 6.125%, 7/15/2023 | $ | 305,000 | $307,287 | |
| $3,618,289 | ||||
| Business Services – 3.6% | ||||
| Ascend Learning LLC, 6.875%, 8/01/2025 (n) | $ | 225,000 | $231,750 | |
| CDK Global, Inc., 4.875%, 6/01/2027 | 285,000 | 293,550 | ||
| CDK Global, Inc., 5.25%, 5/15/2029 (n) | 95,000 | 101,294 | ||
| Iron Mountain, Inc., REIT, 4.875%, 9/15/2027 (n) | 120,000 | 121,500 | ||
| MSCI, Inc., 5.75%, 8/15/2025 (n) | 170,000 | 175,950 | ||
| MSCI, Inc., 4.75%, 8/01/2026 (n) | 545,000 | 565,960 | ||
| Refinitiv U.S. Holdings, Inc., 8.25%, 11/15/2026 (n) | 100,000 | 110,100 | ||
| Verscend Escrow Corp., 9.75%, 8/15/2026 (n) | 175,000 | 190,304 | ||
| $1,790,408 | ||||
| Cable TV – 11.4% | ||||
| CCO Holdings LLC/CCO Holdings Capital Corp., 5.75%, 1/15/2024 | $ | 26,000 | $26,502 | |
| CCO Holdings LLC/CCO Holdings Capital Corp., 5.375%, 5/01/2025 (n) | 215,000 | 220,934 | ||
| CCO Holdings LLC/CCO Holdings Capital Corp., 5.75%, 2/15/2026 (n) | 585,000 | 608,224 | ||
| CCO Holdings LLC/CCO Holdings Capital Corp., 5.875%, 5/01/2027 (n) | 360,000 | 374,328 | ||
| CCO Holdings LLC/CCO Holdings Capital Corp., 4.75%, 3/01/2030 (n) | 310,000 | 318,719 | ||
| CSC Holdings LLC, 5.5%, 5/15/2026 (n) | 200,000 | 207,071 | ||
| CSC Holdings LLC, 5.5%, 4/15/2027 (n) | 800,000 | 842,000 | ||
| DISH DBS Corp., 5.875%, 11/15/2024 | 95,000 | 97,444 | ||
| DISH DBS Corp., 7.75%, 7/01/2026 | 135,000 | 145,066 | ||
| Intelsat Connect Finance, 9.5%, 2/15/2023 (n) | 65,000 | 38,350 | ||
| Intelsat Jackson Holdings S.A., 5.5%, 8/01/2023 | 180,000 | 154,800 | ||
| Intelsat Jackson Holdings S.A., 9.75%, 7/15/2025 (n) | 155,000 | 136,691 | ||
| LCPR Senior Secured Financing DAC, 6.75%, 10/15/2027 (n) | 200,000 | 210,320 | ||
| Sirius XM Holdings, Inc., 4.625%, 7/15/2024 (n) | 380,000 | 391,761 | ||
| Sirius XM Holdings, Inc., 5.5%, 7/01/2029 (n) | 105,000 | 112,581 | ||
| Sirius XM Radio, Inc., 4.625%, 5/15/2023 (n) | 135,000 | 136,012 | ||
| Sirius XM Radio, Inc., 5.375%, 4/15/2025 (n) | 165,000 | 169,262 | ||
| Telenet Finance Luxembourg S.A., 5.5%, 3/01/2028 (n) | 400,000 | 422,000 | ||
| Telesat Holdings, Inc., 6.5%, 10/15/2027 (n) | 195,000 | 201,825 | ||
| Videotron Ltd., 5.375%, 6/15/2024 (n) | 80,000 | 85,416 | ||
| Videotron Ltd., 5.125%, 4/15/2027 (n) | 465,000 | 487,648 | ||
| Ziggo Bond Finance B.V., 5.125%, 2/28/2030 (n) | 200,000 | 202,460 | ||
| $5,589,414 | ||||
| Chemicals – 2.5% | ||||
| Axalta Coating Systems Co., 4.875%, 8/15/2024 (n) | $ | 280,000 | $283,688 | |
| Consolidated Energy Finance S.A., 6.875%, 6/15/2025 (n) | 200,000 | 194,600 | ||
| Element Solutions, Inc., 5.875%, 12/01/2025 (n) | 120,000 | 120,602 | ||
| SPCM S.A., 4.875%, 9/15/2025 (n) | 375,000 | 384,375 | ||
| Starfruit Finance Co./Starfruit U.S. Holding Co. LLC, 8%, 10/01/2026 (n) | 225,000 | 223,245 | ||
| $1,206,510 | ||||
| Computer Software – 1.3% | ||||
| PTC, Inc., 3.625%, 2/15/2025 (n) | $ | 215,000 | $215,537 | |
| PTC, Inc., 4%, 2/15/2028 (n) | 35,000 | 34,913 | ||
| VeriSign, Inc., 5.25%, 4/01/2025 | 265,000 | 287,260 | ||
| VeriSign, Inc., 4.75%, 7/15/2027 | 85,000 | 88,543 | ||
| $626,253 | ||||
| Computer Software - Systems – 3.4% | ||||
| Fair Isaac Corp., 5.25%, 5/15/2026 (n) | $ | 420,000 | $465,150 | |
| Fair Isaac Corp., 4%, 6/15/2028 (n) | 86,000 | 88,150 | ||
| JDA Software Group, Inc., 7.375%, 10/15/2024 (n) | 200,000 | 206,834 | ||
| Sabre GLBL, Inc., 5.375%, 4/15/2023 (n) | 495,000 | 495,000 | ||
2
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Computer Software - Systems – continued | ||||
| SS&C Technologies Holdings, Inc., 5.5%, 9/30/2027 (n) | $ | 375,000 | $392,700 | |
| $1,647,834 | ||||
| Conglomerates – 5.2% | ||||
| Amsted Industries Co., 5.625%, 7/01/2027 (n) | $ | 260,000 | $275,600 | |
| BWX Technologies, Inc., 5.375%, 7/15/2026 (n) | 360,000 | 376,850 | ||
| CFX Escrow Corp., 6.375%, 2/15/2026 (n) | 190,000 | 201,400 | ||
| EnerSys, 5%, 4/30/2023 (n) | 275,000 | 287,834 | ||
| EnerSys, 4.375%, 12/15/2027 (n) | 55,000 | 55,619 | ||
| Gates Global LLC, 6.25%, 1/15/2026 (n) | 230,000 | 231,150 | ||
| Granite Holdings U.S. Acquisition Co., 11%, 10/01/2027 (n) | 100,000 | 104,000 | ||
| Griffon Corp., 5.75%, 3/01/2028 (n) | 150,000 | 150,056 | ||
| MTS Systems Corp., 5.75%, 8/15/2027 (n) | 230,000 | 234,025 | ||
| Stevens Holding Co., Inc., 6.125%, 10/01/2026 (n) | 205,000 | 222,239 | ||
| TriMas Corp., 4.875%, 10/15/2025 (n) | 405,000 | 412,087 | ||
| $2,550,860 | ||||
| Construction – 2.5% | ||||
| Mattamy Group Corp., 6.5%, 10/01/2025 (n) | $ | 270,000 | $289,675 | |
| Mattamy Group Corp., 5.25%, 12/15/2027 (n) | 95,000 | 99,038 | ||
| Mattamy Group Corp., 4.625%, 3/01/2030 (n) | 185,000 | 179,481 | ||
| Shea Homes LP/Shea Homes Funding Corp., 4.75%, 2/15/2028 (n) | 175,000 | 175,091 | ||
| Toll Brothers Finance Corp., 4.875%, 11/15/2025 | 180,000 | 197,100 | ||
| Toll Brothers Finance Corp., 4.35%, 2/15/2028 | 255,000 | 269,122 | ||
| $1,209,507 | ||||
| Consumer Products – 1.9% | ||||
| Coty, Inc., 6.5%, 4/15/2026 (n) | $ | 140,000 | $143,850 | |
| Energizer Holdings, Inc., 6.375%, 7/15/2026 (n) | 305,000 | 316,377 | ||
| Mattel, Inc., 6.75%, 12/31/2025 (n) | 120,000 | 126,114 | ||
| Mattel, Inc., 5.875%, 12/15/2027 (n) | 204,000 | 213,180 | ||
| Prestige Brands, Inc., 5.125%, 1/15/2028 (n) | 110,000 | 114,950 | ||
| $914,471 | ||||
| Consumer Services – 4.1% | ||||
| Allied Universal Holdco LLC, 9.75%, 7/15/2027 (n) | $ | 175,000 | $185,972 | |
| Carriage Services, Inc., 6.625%, 6/01/2026 (n) | 147,000 | 151,467 | ||
| Cimpress N.V., 7%, 6/15/2026 (n) | 300,000 | 313,689 | ||
| Frontdoor, Inc., 6.75%, 8/15/2026 (n) | 205,000 | 224,333 | ||
| Garda World Security Corp., 4.625%, 2/15/2027 (n) | 75,000 | 74,063 | ||
| GW B-CR Security Corp., 9.5%, 11/01/2027 (n) | 111,000 | 117,382 | ||
| Match Group, Inc., 6.375%, 6/01/2024 | 295,000 | 304,992 | ||
| Match Group, Inc., 5%, 12/15/2027 (n) | 200,000 | 207,000 | ||
| Photo Holdings Merger Sub, Inc., 8.5%, 10/01/2026 (n) | 35,000 | 33,163 | ||
| Realogy Group LLC, 9.375%, 4/01/2027 (n) | 205,000 | 210,125 | ||
| ServiceMaster Co. LLC, 5.125%, 11/15/2024 (n) | 210,000 | 216,562 | ||
| $2,038,748 | ||||
| Containers – 4.0% | ||||
| ARD Finance S.A., 6.5%, (6.5% cash or 7.25% PIK) 6/30/2027 (p) | $ | 200,000 | $201,260 | |
| Crown Americas LLC/Crown Americas Capital Corp. IV, 4.5%, 1/15/2023 | 326,000 | 330,564 | ||
| Crown Americas LLC/Crown Americas Capital Corp. V, 4.25%, 9/30/2026 | 290,000 | 298,498 | ||
| Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 2/01/2026 | 90,000 | 92,813 | ||
| Flex Acquisition Co., Inc., 6.875%, 1/15/2025 (n) | 215,000 | 210,704 | ||
| Reynolds Group, 5.125%, 7/15/2023 (n) | 180,000 | 181,800 | ||
| Reynolds Group, 7%, 7/15/2024 (n) | 70,000 | 70,657 | ||
| Silgan Holdings, Inc., 4.75%, 3/15/2025 | 235,000 | 237,742 | ||
| Silgan Holdings, Inc., 4.125%, 2/01/2028 (n) | 112,000 | 112,700 | ||
3
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Containers – continued | ||||
| Trivium Packaging Finance B.V., 8.5%, 8/15/2027 (n) | $ | 200,000 | $211,584 | |
| $1,948,322 | ||||
| Electrical Equipment – 0.5% | ||||
| CommScope Technologies LLC, 6%, 6/15/2025 (n) | $ | 160,000 | $150,000 | |
| CommScope Technologies LLC, 5%, 3/15/2027 (n) | 125,000 | 113,113 | ||
| $263,113 | ||||
| Electronics – 2.3% | ||||
| Entegris, Inc., 4.625%, 2/10/2026 (n) | $ | 275,000 | $283,594 | |
| Qorvo, Inc., 5.5%, 7/15/2026 | 200,000 | 206,600 | ||
| Sensata Technologies B.V., 5.625%, 11/01/2024 (n) | 180,000 | 193,995 | ||
| Sensata Technologies B.V., 5%, 10/01/2025 (n) | 375,000 | 394,725 | ||
| Sensata Technologies, Inc., 4.375%, 2/15/2030 (n) | 75,000 | 75,656 | ||
| $1,154,570 | ||||
| Energy - Independent – 3.7% | ||||
| Callon Petroleum Co., 6.375%, 7/01/2026 | $ | 180,000 | $139,950 | |
| Carrizo Oil & Gas, Inc., 8.25%, 7/15/2025 | 62,600 | 55,714 | ||
| CrownRock LP/CrownRock Finance, Inc., 5.625%, 10/15/2025 (n) | 215,000 | 206,937 | ||
| Highpoint Operating Corp., 7%, 10/15/2022 | 65,000 | 56,550 | ||
| Hilcorp Energy I/Hilcorp Finance Co., 5.75%, 10/01/2025 (n) | 46,700 | 37,360 | ||
| Jagged Peak Energy LLC, 5.875%, 5/01/2026 | 170,000 | 169,524 | ||
| Laredo Petroleum, Inc., 10.125%, 1/15/2028 | 50,000 | 35,869 | ||
| Magnolia Oil & Gas Operating LLC/Magnolia Oil & Gas Finance Corp., 6%, 8/01/2026 (n) | 170,000 | 170,000 | ||
| Matador Resources Co., 5.875%, 9/15/2026 | 110,000 | 98,450 | ||
| Parsley Energy LLC/Parsley Finance Corp., 5.625%, 10/15/2027 (n) | 190,000 | 188,338 | ||
| PDC Energy, Inc., 5.75%, 5/15/2026 | 50,000 | 44,500 | ||
| QEP Resources, Inc., 5.625%, 3/01/2026 | 116,700 | 93,360 | ||
| Sanchez Energy Corp., 6.125%, 1/15/2023 (a)(d) | 210,000 | 6,300 | ||
| SM Energy Co., 6.75%, 9/15/2026 | 195,000 | 154,050 | ||
| Southwestern Energy Co., 6.2%, 1/23/2025 | 81,700 | 60,458 | ||
| Southwestern Energy Co., 7.5%, 4/01/2026 | 56,000 | 42,560 | ||
| WPX Energy, Inc., 5.75%, 6/01/2026 | 260,000 | 257,972 | ||
| $1,817,892 | ||||
| Entertainment – 1.8% | ||||
| Live Nation Entertainment, Inc., 4.875%, 11/01/2024 (n) | $ | 95,000 | $96,900 | |
| Live Nation Entertainment, Inc., 5.625%, 3/15/2026 (n) | 380,000 | 390,450 | ||
| Live Nation Entertainment, Inc., 4.75%, 10/15/2027 (n) | 55,000 | 55,275 | ||
| NCL Corp. Ltd., 3.625%, 12/15/2024 (n) | 60,000 | 55,585 | ||
| Six Flags Entertainment Corp., 4.875%, 7/31/2024 (n) | 305,000 | 301,035 | ||
| $899,245 | ||||
| Financial Institutions – 4.4% | ||||
| Avation Capital S.A., 6.5%, 5/15/2021 (n) | $ | 200,000 | $198,840 | |
| Avolon Holdings Funding Ltd., 5.125%, 10/01/2023 | 195,000 | 209,005 | ||
| Avolon Holdings Funding Ltd., 3.95%, 7/01/2024 (n) | 130,000 | 134,778 | ||
| Credit Acceptance Corp., 5.125%, 12/31/2024 (n) | 190,000 | 195,700 | ||
| Global Aircraft Leasing Co. Ltd., 6.5%, (6.5% cash or 7.25% PIK) 9/15/2024 (p) | 431,000 | 424,535 | ||
| Nationstar Mortgage Holdings, Inc., 8.125%, 7/15/2023 (n) | 220,000 | 228,734 | ||
| Nationstar Mortgage Holdings, Inc., 6%, 1/15/2027 (n) | 95,000 | 96,509 | ||
| OneMain Financial Corp., 6.875%, 3/15/2025 | 160,000 | 176,000 | ||
| OneMain Financial Corp., 7.125%, 3/15/2026 | 170,000 | 188,700 | ||
| Park Aerospace Holdings Ltd., 5.5%, 2/15/2024 (n) | 220,000 | 241,919 | ||
| Springleaf Finance Corp., 5.375%, 11/15/2029 | 80,000 | 81,704 | ||
| $2,176,424 | ||||
4
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Food & Beverages – 4.2% | ||||
| Cott Holdings, Inc., 5.5%, 4/01/2025 (n) | $ | 260,000 | $266,066 | |
| JBS USA LLC/JBS USA Finance, Inc., 6.75%, 2/15/2028 (n) | 345,000 | 374,083 | ||
| JBS USA Lux S.A./JBS USA Finance, Inc., 5.875%, 7/15/2024 (n) | 232,000 | 236,065 | ||
| Lamb Weston Holdings, Inc., 4.625%, 11/01/2024 (n) | 330,000 | 343,207 | ||
| Performance Food Group Co., 5.5%, 10/15/2027 (n) | 200,000 | 211,000 | ||
| Pilgrim's Pride Corp., 5.75%, 3/15/2025 (n) | 100,000 | 101,970 | ||
| Pilgrim's Pride Corp., 5.875%, 9/30/2027 (n) | 220,000 | 227,986 | ||
| U.S. Foods Holding Corp., 5.875%, 6/15/2024 (n) | 320,000 | 325,600 | ||
| $2,085,977 | ||||
| Gaming & Lodging – 6.7% | ||||
| CCM Merger, Inc., 6%, 3/15/2022 (n) | $ | 230,000 | $232,300 | |
| GLP Capital LP/GLP Financing II, Inc., 5.375%, 11/01/2023 | 155,000 | 169,097 | ||
| GLP Capital LP/GLP Financing II, Inc., 5.25%, 6/01/2025 | 220,000 | 246,213 | ||
| GLP Capital LP/GLP Financing II, Inc., 5.375%, 4/15/2026 | 115,000 | 129,810 | ||
| Hilton Domestic Operating Co., Inc., 5.125%, 5/01/2026 | 305,000 | 313,113 | ||
| Hilton Worldwide Finance LLC, 4.625%, 4/01/2025 | 335,000 | 336,256 | ||
| Scientific Games Corp., 8.25%, 3/15/2026 (n) | 230,000 | 236,256 | ||
| Scientific Games International, Inc., 7%, 5/15/2028 (n) | 90,000 | 87,048 | ||
| VICI Properties LP, REIT, 4.25%, 12/01/2026 (n) | 365,000 | 368,686 | ||
| VICI Properties LP, REIT, 3.75%, 2/15/2027 (n) | 235,000 | 233,237 | ||
| VICI Properties LP, REIT, 4.625%, 12/01/2029 (n) | 75,000 | 77,438 | ||
| Wyndham Hotels Group LLC, 5.375%, 4/15/2026 (n) | 460,000 | 476,838 | ||
| Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 5.5%, 3/01/2025 (n) | 150,000 | 147,188 | ||
| Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 5.25%, 5/15/2027 (n) | 235,000 | 227,950 | ||
| $3,281,430 | ||||
| Insurance - Health – 1.1% | ||||
| Centene Corp., 6.125%, 2/15/2024 | $ | 185,000 | $190,679 | |
| Centene Corp., 5.375%, 6/01/2026 (n) | 205,000 | 215,322 | ||
| Centene Corp., 4.25%, 12/15/2027 (n) | 135,000 | 138,888 | ||
| $544,889 | ||||
| Insurance - Property & Casualty – 1.0% | ||||
| Alliant Holdings Intermediate LLC, 6.75%, 10/15/2027 (n) | $ | 190,000 | $189,529 | |
| Hub International Ltd., 7%, 5/01/2026 (n) | 315,000 | 318,134 | ||
| $507,663 | ||||
| Major Banks – 1.8% | ||||
| Barclays PLC, 7.875%, 12/29/2049 | $ | 200,000 | $211,101 | |
| Credit Suisse Group AG, 7.25%, 12/29/2049 (n) | 200,000 | 221,000 | ||
| UBS Group AG, 6.875% to 8/07/2025, FLR (Swap Rate - 5yr. + 4.59%) to 12/29/2049 | 400,000 | 436,500 | ||
| $868,601 | ||||
| Medical & Health Technology & Services – 10.6% | ||||
| Avantor, Inc., 9%, 10/01/2025 (n) | $ | 385,000 | $420,189 | |
| BCPE Cycle Merger Sub II, Inc., 10.625%, 7/15/2027 (n) | 75,000 | 75,938 | ||
| Community Health Systems, Inc., 6.625%, 2/15/2025 (n) | 255,000 | 260,100 | ||
| DaVita, Inc., 5%, 5/01/2025 | 260,000 | 263,835 | ||
| Encompass Health Corp., 5.75%, 9/15/2025 | 120,000 | 124,500 | ||
| HCA, Inc., 7.5%, 2/15/2022 | 345,000 | 381,294 | ||
| HCA, Inc., 5.375%, 2/01/2025 | 525,000 | 580,387 | ||
| HCA, Inc., 5.875%, 2/15/2026 | 340,000 | 384,200 | ||
| HCA, Inc., 5.625%, 9/01/2028 | 45,000 | 51,002 | ||
| HCA, Inc., 3.5%, 9/01/2030 | 185,000 | 181,230 | ||
| HealthSouth Corp., 5.125%, 3/15/2023 | 335,000 | 335,837 | ||
| Heartland Dental LLC, 8.5%, 5/01/2026 (n) | 145,000 | 148,263 | ||
| IQVIA Holdings, Inc., 5%, 5/15/2027 (n) | 600,000 | 620,250 | ||
| LifePoint Health, Inc., 4.375%, 2/15/2027 (n) | 75,000 | 74,040 | ||
5
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Medical & Health Technology & Services – continued | ||||
| MPH Acquisition Holdings LLC, 7.125%, 6/01/2024 (n) | $ | 180,000 | $167,440 | |
| Polaris, 8.5%, (8.5% cash or 8.5% PIK) 12/01/2022 (p) | 120,000 | 102,012 | ||
| Radiology Partners, Inc., 9.25%, 2/01/2028 (n) | 45,000 | 45,225 | ||
| Regional Care/LifePoint Health, Inc., 9.75%, 12/01/2026 (n) | 295,000 | 315,266 | ||
| Team Health Holdings, Inc., 6.375%, 2/01/2025 (n) | 60,000 | 32,250 | ||
| Tenet Healthcare Corp., 4.875%, 1/01/2026 (n) | 255,000 | 259,781 | ||
| Tenet Healthcare Corp., 5.125%, 11/01/2027 (n) | 185,000 | 192,169 | ||
| West Street Merger Sub, Inc., 6.375%, 9/01/2025 (n) | 200,000 | 196,240 | ||
| $5,211,448 | ||||
| Medical Equipment – 1.5% | ||||
| Hill-Rom Holdings, Inc., 4.375%, 9/15/2027 (n) | $ | 275,000 | $284,652 | |
| Teleflex, Inc., 4.875%, 6/01/2026 | 105,000 | 109,463 | ||
| Teleflex, Inc., 4.625%, 11/15/2027 | 340,000 | 356,796 | ||
| $750,911 | ||||
| Metals & Mining – 4.7% | ||||
| Baffinland Iron Mines Corp./Baffinland Iron Mines LP, 8.75%, 7/15/2026 (n) | $ | 130,000 | $132,600 | |
| Cleveland-Cliffs, Inc., 5.875%, 6/01/2027 (n) | 130,000 | 109,525 | ||
| Compass Minerals International, Inc., 6.75%, 12/01/2027 (n) | 200,000 | 212,000 | ||
| Freeport-McMoRan Copper & Gold, Inc., 5.4%, 11/14/2034 | 190,000 | 185,317 | ||
| Freeport-McMoRan, Inc., 5%, 9/01/2027 | 190,000 | 187,534 | ||
| Freeport-McMoRan, Inc., 5.25%, 9/01/2029 | 185,000 | 185,925 | ||
| Grinding Media, Inc./Moly-Cop AltaSteel Ltd., 7.375%, 12/15/2023 (n) | 125,000 | 123,400 | ||
| Kaiser Aluminum Corp., 4.625%, 3/01/2028 (n) | 362,000 | 358,380 | ||
| Northwest Acquisitions ULC/Dominion Finco, Inc., 7.125%, 11/01/2022 (n) | 205,000 | 155,800 | ||
| Novelis Corp., 5.875%, 9/30/2026 (n) | 325,000 | 335,678 | ||
| SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp., 7.5%, 6/15/2025 (n) | 90,000 | 81,000 | ||
| TMS International Corp., 7.25%, 8/15/2025 (n) | 245,000 | 228,463 | ||
| $2,295,622 | ||||
| Midstream – 3.8% | ||||
| Cheniere Energy Partners LP, 5.25%, 10/01/2025 | $ | 470,000 | $471,028 | |
| Cheniere Energy, Inc., 4.5%, 10/01/2029 (n) | 170,000 | 162,965 | ||
| EnLink Midstream Partners LP, 4.85%, 7/15/2026 | 60,000 | 51,975 | ||
| EQT Midstream Partners LP , 5.5%, 7/15/2028 | 150,000 | 125,625 | ||
| Genesis Energy LP/Genesis Energy Finance Corp., 5.625%, 6/15/2024 | 60,000 | 51,600 | ||
| Genesis Energy LP/Genesis Energy Finance Corp., 6.25%, 5/15/2026 | 177,500 | 148,212 | ||
| Targa Resources Partners LP/Targa Resources Finance Corp., 5.25%, 5/01/2023 | 170,000 | 169,592 | ||
| Targa Resources Partners LP/Targa Resources Finance Corp., 5.125%, 2/01/2025 (n) | 280,000 | 281,056 | ||
| Targa Resources Partners LP/Targa Resources Finance Corp., 5.375%, 2/01/2027 | 255,000 | 261,375 | ||
| Targa Resources Partners LP/Targa Resources Finance Corp., 6.875%, 1/15/2029 | 130,000 | 140,238 | ||
| $1,863,666 | ||||
| Municipals – 0.2% | ||||
| Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority Rev. (Cogeneration Facilities - AES Puerto Rico Project), 9.12%, 6/01/2022 | $ | 105,000 | $107,625 | |
| Network & Telecom – 0.9% | ||||
| C&W Senior Financing DAC, 6.875%, 9/15/2027 (n) | $ | 200,000 | $211,000 | |
| Front Range BidCo, Inc., 6.125%, 3/01/2028 (n) | 60,000 | 59,262 | ||
| Zayo Group LLC/Zayo Capital, Inc., 5.75%, 1/15/2027 (n) | 170,000 | 173,825 | ||
| $444,087 | ||||
| Oil Services – 0.8% | ||||
| Apergy Corp., 6.375%, 5/01/2026 | $ | 200,000 | $208,721 | |
| Diamond Offshore Drill Co., 5.7%, 10/15/2039 | 175,000 | 75,798 | ||
| Ensign Drilling, Inc., 9.25%, 4/15/2024 (n) | 125,000 | 112,346 | ||
| $396,865 | ||||
6
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Oils – 1.4% | ||||
| Parkland Fuel Corp., 6%, 4/01/2026 (n) | $ | 370,000 | $386,650 | |
| PBF Holding Co. LLC/PBF Finance Corp., 7.25%, 6/15/2025 | 190,000 | 195,225 | ||
| PBF Holding Co. LLC/PBF Finance Corp., 6%, 2/15/2028 (n) | 130,000 | 128,375 | ||
| $710,250 | ||||
| Pharmaceuticals – 1.8% | ||||
| Bausch Health Companies, Inc., 5.5%, 3/01/2023 (n) | $ | 90,000 | $89,888 | |
| Bausch Health Companies, Inc., 6.125%, 4/15/2025 (n) | 585,000 | 596,524 | ||
| Bausch Health Companies, Inc., 5%, 1/30/2028 (n) | 55,000 | 54,381 | ||
| Endo Finance LLC/Endo Finco, Inc., 5.375%, 1/15/2023 (n) | 175,000 | 136,500 | ||
| $877,293 | ||||
| Pollution Control – 1.1% | ||||
| Covanta Holding Corp., 5.875%, 3/01/2024 | $ | 185,000 | $187,081 | |
| Covanta Holding Corp., 6%, 1/01/2027 | 50,000 | 51,500 | ||
| GFL Environmental, Inc., 7%, 6/01/2026 (n) | 130,000 | 136,663 | ||
| GFL Environmental, Inc., 8.5%, 5/01/2027 (n) | 150,000 | 162,435 | ||
| $537,679 | ||||
| Printing & Publishing – 0.9% | ||||
| Meredith Corp., 6.875%, 2/01/2026 | $ | 150,000 | $150,405 | |
| Nielsen Finance LLC, 5%, 4/15/2022 (n) | 272,000 | 271,113 | ||
| $421,518 | ||||
| Real Estate - Healthcare – 1.0% | ||||
| MPT Operating Partnership LP/MPT Financial Co., REIT, 5.25%, 8/01/2026 | $ | 280,000 | $291,900 | |
| MPT Operating Partnership LP/MPT Financial Co., REIT, 5%, 10/15/2027 | 185,000 | 193,049 | ||
| $484,949 | ||||
| Real Estate - Other – 1.8% | ||||
| Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 5.25%, 10/01/2025 (n) | $ | 35,000 | $35,481 | |
| Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp., 4.25%, 2/01/2027 (n) | 290,000 | 275,137 | ||
| Ryman Hospitality Properties, Inc., REIT, 5%, 4/15/2023 | 170,000 | 172,338 | ||
| Ryman Hospitality Properties, Inc., REIT, 4.75%, 10/15/2027 (n) | 391,000 | 394,918 | ||
| $877,874 | ||||
| Restaurants – 1.5% | ||||
| Golden Nugget, Inc., 6.75%, 10/15/2024 (n) | $ | 230,000 | $225,906 | |
| KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, 5.25%, 6/01/2026 (n) | 525,000 | 536,818 | ||
| $762,724 | ||||
| Retailers – 1.0% | ||||
| DriveTime Automotive Group, Inc., 8%, 6/01/2021 (n) | $ | 210,000 | $209,475 | |
| L Brands, Inc., 5.25%, 2/01/2028 | 150,000 | 145,594 | ||
| Sally Beauty Holdings, Inc., 5.625%, 12/01/2025 | 120,000 | 121,620 | ||
| $476,689 | ||||
| Specialty Chemicals – 0.9% | ||||
| Koppers, Inc., 6%, 2/15/2025 (n) | $ | 165,000 | $162,525 | |
| Univar Solutions USA, Inc., 5.125%, 12/01/2027 (n) | 261,000 | 263,662 | ||
| $426,187 | ||||
| Specialty Stores – 0.9% | ||||
| Penske Automotive Group Co., 5.375%, 12/01/2024 | $ | 145,000 | $148,444 | |
| Penske Automotive Group Co., 5.5%, 5/15/2026 | 175,000 | 178,937 | ||
| PetSmart, Inc., 7.125%, 3/15/2023 (n) | 60,000 | 58,482 | ||
| PetSmart, Inc., 8.875%, 6/01/2025 (n) | 60,000 | 59,700 | ||
| $445,563 | ||||
7
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Supermarkets – 1.1% | ||||
| Albertsons Cos. LLC/Safeway, Inc., 6.625%, 6/15/2024 | $ | 97,000 | $99,667 | |
| Albertsons Cos. LLC/Safeway, Inc., 5.75%, 3/15/2025 | 145,000 | 150,256 | ||
| Albertsons Cos. LLC/Safeway, Inc., 4.625%, 1/15/2027 (n) | 270,000 | 265,626 | ||
| Albertsons Cos. LLC/Safeway, Inc., 5.875%, 2/15/2028 (n) | 15,000 | 15,590 | ||
| $531,139 | ||||
| Telecommunications - Wireless – 7.5% | ||||
| Altice France S.A., 7.375%, 5/01/2026 (n) | $ | 200,000 | $209,740 | |
| Altice France S.A., 8.125%, 2/01/2027 (n) | 400,000 | 435,912 | ||
| Altice France S.A., 5.5%, 1/15/2028 (n) | 200,000 | 200,000 | ||
| Altice Luxembourg S.A., 7.625%, 2/15/2025 (n) | 200,000 | 207,500 | ||
| SBA Communications Corp., 4%, 10/01/2022 | 360,000 | 363,967 | ||
| SBA Communications Corp., 4.875%, 9/01/2024 | 310,000 | 318,333 | ||
| SBA Communications Corp., 3.875%, 2/15/2027 (n) | 70,000 | 71,383 | ||
| Sprint Capital Corp., 6.875%, 11/15/2028 | 355,000 | 422,911 | ||
| Sprint Corp., 7.625%, 3/01/2026 | 350,000 | 412,898 | ||
| T-Mobile USA, Inc., 6.5%, 1/15/2024 | 95,000 | 97,256 | ||
| T-Mobile USA, Inc., 5.125%, 4/15/2025 | 195,000 | 200,363 | ||
| T-Mobile USA, Inc., 6.5%, 1/15/2026 | 195,000 | 205,296 | ||
| T-Mobile USA, Inc., 5.375%, 4/15/2027 | 310,000 | 328,600 | ||
| YPSO Finance Bis S.A., 6%, 2/15/2028 (n) | 200,000 | 192,060 | ||
| $3,666,219 | ||||
| Tobacco – 0.2% | ||||
| Vector Group Ltd., 10.5%, 11/01/2026 (n) | $ | 95,000 | $94,259 | |
| Utilities - Electric Power – 3.9% | ||||
| Clearway Energy Operating LLC, 5.75%, 10/15/2025 | $ | 525,000 | $542,498 | |
| Clearway Energy Operating LLC, 4.75%, 3/15/2028 (n) | 90,000 | 92,138 | ||
| Drax Finco PLC, 6.625%, 11/01/2025 (n) | 220,000 | 229,691 | ||
| NextEra Energy Operating Co., 4.25%, 9/15/2024 (n) | 380,000 | 382,546 | ||
| NextEra Energy Operating Co., 4.5%, 9/15/2027 (n) | 120,000 | 125,162 | ||
| NextEra Energy, Inc., 4.25%, 7/15/2024 (n) | 140,000 | 142,590 | ||
| TerraForm Global Operating LLC, 6.125%, 3/01/2026 (n) | 80,000 | 82,800 | ||
| Terraform Power Operating Co., 5%, 1/31/2028 (n) | 285,000 | 306,745 | ||
| $1,904,170 | ||||
| Total Bonds | $66,195,304 | |||
| Floating Rate Loans (r) – 1.9% | ||||
| Broadcasting – 0.4% | ||||
| Nexstar Broadcasting, Inc., Term Loan B4, 4.405%, 9/18/2026 | $ | 63,840 | $63,361 | |
| WMG Acquisition Corp., Term Loan F, 3.728%, 11/01/2023 | 105,000 | 103,163 | ||
| $166,524 | ||||
| Cable TV – 0.1% | ||||
| CSC Holdings LLC, Term Loan B5, 4.158%, 4/15/2027 | $ | 64,000 | $63,120 | |
| Chemicals – 0.2% | ||||
| Axalta Coating Systems U.S. Holdings, Inc., Term Loan B3, 3.694%, 6/01/2024 | $ | 53,200 | $52,036 | |
| Element Solutions, Inc., Term Loan B1, 3.603%, 1/31/2026 | 63,840 | 62,643 | ||
| $114,679 | ||||
| Computer Software - Systems – 0.4% | ||||
| Sabre GLBL, Inc., Term Loan B, 3.603%, 2/22/2024 | $ | 127,674 | $121,823 | |
| SS&C Technologies, Inc., Term Loan B5, 3.353%, 4/16/2025 | 63,837 | 62,693 | ||
| $184,516 | ||||
8
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Floating Rate Loans (r) – continued | ||||
| Conglomerates – 0.2% | ||||
| Gates Global LLC, Term Loan B2, 4.353%, 4/01/2024 | $ | 112,218 | $109,693 | |
| Food & Beverages – 0.1% | ||||
| U.S. Foods, Inc., Term Loan B, 3.353%, 6/27/2023 | $ | 40,476 | $39,868 | |
| Medical & Health Technology & Services – 0.3% | ||||
| DaVita, Inc., 3.353%, 8/12/2026 | $ | 63,840 | $63,106 | |
| Jaguar Holding Co. II, Term Loan, 4.103%, 8/18/2022 | 63,833 | 63,088 | ||
| $126,194 | ||||
| Pharmaceuticals – 0.1% | ||||
| Bausch Health Companies, Inc., Term Loan B, 4.408%, 11/27/2025 | $ | 62,171 | $62,113 | |
| Printing & Publishing – 0.1% | ||||
| Nielsen Finance LLC, Term Loan B4, 3.67%, 10/04/2023 | $ | 63,836 | $63,118 | |
| Total Floating Rate Loans | $929,825 | |||
| Common Stocks – 0.3% | ||||
| Construction – 0.1% | ||||
| ICA Tenedora, S.A. de C.V. (a) | 11,385 | $21,446 | ||
| Oil Services – 0.2% | ||||
| LTRI Holdings LP (a)(u) | 200 | $105,880 | ||
| Total Common Stocks | $127,326 | |||
| Strike Price | First Exercise | |||
| Warrants – 0.0% | ||||
| Forest & Paper Products – 0.0% | ||||
| Appvion Holdings Corp. - Tranche A (1 share for 1 warrant, Expiration 6/13/23) (a) | $27.17 | 8/24/18 | 84 | $10 |
| Appvion Holdings Corp. - Tranche B (1 share for 1 warrant, Expiration 6/13/23) (a) | 31.25 | 8/24/18 | 84 | 1 |
| Total Warrants | $11 | |||
| Investment Companies (h) – 2.7% | ||||
| Money Market Funds – 2.7% | ||||
| MFS Institutional Money Market Portfolio, 1.61% (v) | 1,318,957 | $1,319,089 | ||
| Other Assets, Less Liabilities – (39.6)% | (19,444,607) | |||
| Net Assets – 100.0% | $49,126,948 | |||
| (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 $1,319,089 and $67,252,466, 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 $46,667,911, representing 95.0% of net assets. | |||
| (p) | Payment-in-kind (PIK) security for which interest income may be received in additional securities and/or cash. | |||
| (r) | The remaining maturities of floating rate loans may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty. These loans may be subject to restrictions on resale. The interest rate shown represents the weighted average of the floating interest rates on settled contracts within the loan facility at period end, unless otherwise indicated. The floating interest rates on settled contracts are determined periodically by reference to a base lending rate and a spread. | |||
| (u) | The security was valued using significant unobservable inputs and is considered level 3 under the fair value hierarchy. | |||
| (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. |
9
Portfolio of Investments (unaudited) –
continued
| The following abbreviations are used in this report and are defined: | |
| 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. |
| REIT | Real Estate Investment Trust |
| Derivative Contracts at 2/29/20 | ||||||
| Futures Contracts | ||||||
| Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
| Liability Derivatives | ||||||
| Interest Rate Futures | ||||||
| U.S. Treasury Note 5 yr | Short | USD | 15 | $1,841,250 | June – 2020 | $(19,485) |
At February 29, 2020, the fund had
cash collateral of $10,500 to cover any collateral or margin obligations for certain derivative contracts.
See attached supplemental
information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.
10
Supplemental Information
2/29/20 (unaudited)
The fund is an investment company
and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment
Companies.
(1) Investment Valuations
Equity securities, including
restricted equity securities, are generally valued at the last sale or official closing price on their primary market or exchange as provided by a third-party pricing service. Equity securities, for which there were
no sales reported that day, are generally valued at the last quoted daily bid quotation on their primary market or exchange as provided by a third-party pricing service. 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 values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and
asked prices for rates provided by a third-party pricing service.
The Board of Trustees has delegated
primary responsibility for determining or causing to be determined the value of the fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the
Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the
oversight of the Board of Trustees. Under the fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and
many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines
that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior
to the determination of the fund’s net asset value, or after the halt 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 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. Other financial instruments are derivative instruments, such as futures contracts. The following is a summary of the levels
used as of February 29, 2020 in valuing the fund's assets or liabilities:
| Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
| Equity Securities: | ||||
| United States | $— | $11 | $105,880 | $105,891 |
| Mexico | — | 21,446 | — | 21,446 |
| Municipal Bonds | — | 107,625 | — | 107,625 |
| U.S. Corporate Bonds | — | 56,336,868 | — | 56,336,868 |
| Foreign Bonds | — | 9,750,811 | — | 9,750,811 |
| Floating Rate Loans | — | 929,825 | — | 929,825 |
| Mutual Funds | 1,319,089 | — | — | 1,319,089 |
| Total | $1,319,089 | $67,146,586 | $105,880 | $68,571,555 |
| Other Financial Instruments | ||||
| Futures Contracts – Liabilities | $(19,485) | $— | $— | $(19,485) |
For further information regarding
security characteristics, see the Portfolio of Investments.
11
Supplemental Information (unaudited) –
continued
The following is a reconciliation of
level 3 assets for which significant unobservable inputs were used to determine fair value. The table presents the activity of level 3 securities held at the beginning and the end of the period.
| Equity Securities | |
| Balance as of 11/30/19 | $101,158 |
| Change in unrealized appreciation or depreciation | 4,722 |
| Balance as of 2/29/20 | $105,880 |
The net change in unrealized
appreciation or depreciation from investments held as level 3 at February 29, 2020 is $4,722. At February 29, 2020, the fund held one level 3 security.
(2) Investments in Affiliated
Issuers
An affiliated issuer may be
considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the following were affiliated issuers:
| Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
| MFS Institutional Money Market Portfolio | $1,034,504 | $5,620,941 | $5,336,292 | $(92) | $28 | $1,319,089 |
| Affiliated Issuers | Dividend Income | Capital Gain Distributions |
| MFS Institutional Money Market Portfolio | $7,871 | $— |
(3) Impacts of COVID-19
The pandemic related to the global
spread of novel coronavirus disease (COVID-19), which was first detected in December 2019, has resulted in significant disruptions to global business activity and the global economy, as well as the economies of
individual countries, the financial performance of individual companies and sectors, and the securities and commodities markets in general. This pandemic, the full effects of which are still unknown, has resulted in
substantial market volatility and may have adversely impacted the prices and liquidity of the fund's investments and the fund's performance during the period February 29, 2020 through April 16, 2020, the date that
these financial statements were issued.
12