N-Q 1 dnq.htm MFS SERIES TRUST V N-Q MFS SERIES TRUST V N-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-2031

MFS SERIES TRUST V

(Exact name of registrant as specified in charter)

500 Boylston Street, Boston, Massachusetts 02116

(Address of principal executive offices) (Zip code)

Susan S. Newton

Massachusetts Financial Services Company

500 Boylston Street

Boston, Massachusetts 02116

(Name and address of agents for service)

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

Date of fiscal year end: September 30

Date of reporting period: December 31, 2008

ITEM 1. SCHEDULE OF INVESTMENTS.

LOGO

MFS International New Discovery Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08

 

Issuer

    Shares/Par    Value ($)

Common Stocks – 98.4%

      

Aerospace – 0.2%

      

Meggitt PLC

    1,930,888    $ 4,479,135
         

Airlines – 1.7%

      

Arriva PLC

    609,510    $ 5,298,608

Copa Holdings S.A., “A”

    719,450      21,813,724

Grupo Aeroportuario del Pacifico S.A. de C.V., ADR

    180,100      4,145,902
         
      $ 31,258,234
         

Alcoholic Beverages – 1.8%

      

Companhia de Bebidas das Americas, ADR

    145,800    $ 6,460,398

Davide Campari-Milano S.p.A.

    411,340      2,780,296

Foster’s Group Ltd.

    1,334,804      5,135,213

Grupo Modelo S.A. de C.V., “C”

    875,700      2,768,397

Lion Nathan Ltd.

    996,500      5,733,872

Pernod Ricard S.A.

    133,330      9,887,133
         
      $ 32,765,309
         

Apparel Manufacturers – 1.3%

      

Billabong International Ltd.

    504,608    $ 2,821,905

Burberry Group PLC

    1,376,020      4,413,184

Compagnie Financiere Richemont SA

    80,500      1,562,872

Li & Fung Ltd.

    5,953,000      10,200,490

Stella International Holdings Ltd.

    5,567,000      4,525,315
         
      $ 23,523,766
         

Automotive – 0.3%

      

PT Astra International Tbk.

    4,742,500    $ 4,784,283
         

Biotechnology – 0.7%

      

Actelion Ltd. (a)

    142,263    $ 8,012,439

Lonza Group AG

    57,788      5,342,210
         
      $ 13,354,649
         

Broadcasting – 1.9%

      

Fuji Television Network, Inc.

    13,834    $ 19,796,170

Grupo Televisa S.A., ADR

    530,270      7,922,234

WPP Group PLC

    1,061,920      6,190,188
         
      $ 33,908,592
         

Brokerage & Asset Managers – 3.6%

      

Aberdeen Asset Management PLC

    2,853,327    $ 4,963,122

AGF Management Ltd., “B”

    252,510      1,943,171

Bolsa Mexicana de Valores S.A. de C.V. (a)

    482,900      353,584

Daiwa Securities Group, Inc.

    2,283,000      13,605,463

Deutsche Boerse AG

    82,830      6,032,702

Hong Kong Exchanges and Clearing Ltd.

    541,400      5,190,573

ICAP PLC

    410,000      1,709,841

IG Group Holdings PLC

    3,198,295      11,834,784

KBC Ancora NPV

    189,298      3,261,174

Octaviar Ltd. (a)(l)

    244,515      0

Rathbone Brothers PLC

    1,044,557      12,587,437

Tullett Prebon PLC

    366,310      718,894

Van Lanschot N.V.

    48,159      3,213,284
         
      $ 65,414,029
         

Business Services – 4.1%

      

Amadeus Fire AG

    269,404    $ 3,256,583

Bunzl PLC

    2,079,437      17,749,098

Electrocomponents PLC

    1,766,127      3,610,739

Infosys Technology Ltd.

    81,300      1,882,727

Intertek Group PLC

    1,731,104      19,608,588

 

1

MFS International New Discovery Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par    Value ($)

Common Stocks – continued

      

Business Services – continued

      

JFE Shoji Holdings, Inc.

    492,951    $ 1,515,615

Kloeckner & Co. AG

    203,074      3,569,454

Kroton Educacional S.A., IEU (a)

    210,300      1,122,742

LPS Brasil - Consultoria de Imoveis S.A.

    476,961      1,370,973

Sodexo

    206,783      11,443,378

TAKKT AG

    361,257      4,045,347

USS Co. Ltd.

    110,980      5,871,941
         
      $ 75,047,185
         

Cable TV – 0.6%

      

Megacable Holdings S.A.B. de C.V. (a)

    3,472,500    $ 4,626,322

NDS Group PLC, ADR (a)

    103,255      5,920,642

Usen Corp. (a)

    798,728      1,002,516
         
      $ 11,549,480
         

Chemicals – 1.1%

      

Hoganas AB

    146,670    $ 1,306,282

Makhteshim-Agan Industries Ltd.

    1,325,760      4,328,581

Orica Ltd.

    562,500      5,522,734

Syngenta AG

    38,483      7,455,335

Victrex PLC

    310,242      2,152,686
         
      $ 20,765,618
         

Computer Software - Systems – 3.2%

      

Advantech Co. Ltd.

    5,130,247    $ 7,511,496

Cap Gemini S.A.

    144,079      5,553,293

Fujitsu Ltd.

    1,900,000      9,183,583

Obic Co. Ltd.

    129,160      21,133,613

Wincor Nixdorf AG

    329,791      15,723,791
         
      $ 59,105,776
         

Conglomerates – 1.0%

      

DCC PLC

    171,786    $ 2,495,367

First Pacific Co. Ltd.

    6,190,000      2,159,858

Keppel Corp. NPV

    3,324,000      10,074,594

Smiths Group PLC

    217,035      2,794,363
         
      $ 17,524,182
         

Construction – 2.7%

      

Anhui Conch Cement Co. Ltd. (a)

    554,000    $ 2,573,912

Corporacion Moctezuma S.A. de C.V.

    1,005,500      1,561,054

CRH PLC

    194,962      4,920,388

Duratex S.A., IPS

    465,700      2,949,086

Geberit AG

    200,291      21,577,593

Noritz Corp. NPV (l)

    600,000      7,993,611

Sare Holding S.A. de C.V., “B” (a)

    15,557,667      3,314,086

Wienerberger AG

    258,364      4,314,700
         
      $ 49,204,430
         

Consumer Goods & Services – 6.5%

      

Beiersdorf AG

    218,138    $ 12,977,199

Christian Dior S.A.

    511,100      28,828,852

Dabur India Ltd.

    3,605,500      6,327,018

Hengan International Group Co. Ltd.

    4,943,000      15,880,971

Henkel KGaA, IPS

    442,016      14,171,600

Kimberly-Clark de Mexico S.A. de C.V., “A”

    3,566,140      11,729,622

Natura Cosmeticos S.A.

    498,300      4,102,538

Uni-Charm Corp.

    332,900      25,162,769
         
      $ 119,180,569
         

 

2

MFS International New Discovery Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par    Value ($)

Common Stocks – continued

      

Containers – 1.3%

      

Brambles Ltd.

    2,064,100    $ 10,725,356

Mayr-Melnhof Karton AG

    89,850      6,335,974

Viscofan S.A.

    333,299      6,547,740
         
      $ 23,609,070
         

Electrical Equipment – 1.8%

      

Legrand S.A.

    639,753    $ 12,292,824

LS Industrial Systems Co. Ltd. (a)

    300,661      12,005,566

OMRON Corp.

    288,900      3,877,635

Prysmian S.p.A.

    118,798      1,865,855

Spectris PLC

    465,740      3,605,325
         
      $ 33,647,205
         

Electronics – 5.4%

      

ASM Pacific Technology Ltd.

    1,539,900    $ 5,073,829

ASML Holding N.V.

    300,000      5,421,000

ASML Holding N.V.

    143,174      2,554,956

Delta Electronics, Inc.

    3,592,700      6,991,488

Domino Printing Sciences PLC

    249      727

Flextronics International Ltd. (a)

    2,136,300      5,468,928

Halma PLC

    1,439,421      4,218,227

Hirose Electric Co. Ltd.

    115,000      11,610,528

Hoya Corp.

    83,300      1,447,074

Konica Minolta Holdings, Inc.

    3,507,500      27,178,833

Melexis N.V.

    248,817      1,729,340

Ricoh Co. Ltd.

    802,000      10,213,769

SUMCO Corp.

    600,700      7,671,694

Venture Corp. Ltd.

    2,863,000      8,757,408
         
      $ 98,337,801
         

Energy - Independent – 2.2%

      

Arch Coal, Inc.

    210,000    $ 3,420,900

Galp Energia SGPS S.A.

    342,003      3,442,958

Motor Oil (Hellas) Corinth Refineries S.A.

    87,000      928,673

OMV AG

    283,978      7,570,498

Peabody Energy Corp.

    130,000      2,957,500

PTT Exploration & Production Public Co. Ltd.

    1,289,400      3,960,366

Santos Ltd.

    206,010      2,153,036

Talisman Energy, Inc.

    1,666,100      16,438,313
         
      $ 40,872,244
         

Engineering - Construction – 1.0%

      

Aker Kvaerner A.S.A

    877,059    $ 5,798,151

Empresas ICA S.A.B. de C.V. (a)

    786,100      1,299,334

KHD Humboldt Wedag International Ltd. (a)

    328,970      3,674,595

North American Energy Partners, Inc. (a)

    1,649,360      5,508,862

Orascom Construction Industries Co.

    68,911      1,763,245
         
      $ 18,044,187
         

Food & Beverages – 0.9%

      

Grupo Continental S.A.

    2,245,300    $ 3,712,848

Kerry Group PLC

    689,109      12,548,437
         
      $ 16,261,285
         

Food & Drug Stores – 1.5%

      

Aeon Co. Ltd.

    768,100    $ 7,693,474

Axfood AB

    260,106      5,556,268

Lawson, Inc.

    230,300      13,281,883
         
      $ 26,531,625
         

 

3

MFS International New Discovery Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par    Value ($)

Common Stocks – continued

      

Forest & Paper Products – 0.2%

      

Suzano Papel e Celulose S.A., IPS (a)

    807,800    $ 4,244,384
         

Gaming & Lodging – 1.6%

      

Ladbrokes PLC

    4,239,133    $ 11,337,249

Paddy Power PLC

    213,600      3,997,780

William Hill PLC

    4,186,877      13,022,445
         
      $ 28,357,474
         

General Merchandise – 0.4%

      

Lotte Shopping Co. Ltd. (a)

    39,596    $ 6,681,723
         

Health Maintenance Organizations – 0.2%

      

Odontoprev S.A.

    427,800    $ 4,259,734
         

Insurance – 5.8%

      

Admiral Group PLC

    723,040    $ 9,550,150

Aflac, Inc.

    86,009      3,942,653

Amlin PLC

    1,915,701      9,962,898

Aspen Insurance Holdings Ltd.

    647,525      15,702,481

Catlin Group Ltd.

    4,238,070      26,518,702

CNP Assurances S.A.

    151,372      10,952,981

Euler Hermes

    48,818      2,391,014

Hiscox Ltd.

    3,044,333      14,947,840

QBE Insurance Group Ltd.

    692,001      12,578,913
         
      $ 106,547,632
         

Internet – 0.6%

      

Iliad S.A.

    91,775    $ 7,948,985

Universo Online S.A., IPS

    768,900      2,437,579
         
      $ 10,386,564
         

Leisure & Toys – 0.9%

      

Jumbo S.A.

    460,494    $ 2,791,481

Sankyo Co. Ltd.

    256,100      12,935,040
         
      $ 15,726,521
         

Machinery & Tools – 4.0%

      

Assa Abloy AB, “B”

    1,265,830    $ 14,362,702

Bucyrus International, Inc.

    365,390      6,767,023

Burckhardt Compression Holding AG

    64,975      9,365,832

Fenner PLC

    1,301,680      1,343,683

GEA Group AG

    880,320      15,094,569

Glory Ltd.

    384,300      7,516,413

Harsco Corp.

    141,090      3,905,371

KCI Konecranes PLC

    298,864      5,118,208

Neopost S.A.

    79,279      7,175,816

Rotork PLC

    174,716      1,996,686

Sandvik AB

    204,657      1,300,178
         
      $ 73,946,481
         

Major Banks – 2.0%

      

Banco Santander Chile, ADR (a)

    213,070    $ 7,463,842

Erste Group Bank AG

    269,890      6,326,886

Oversea-Chinese Banking Corp. Ltd.

    739,000      2,574,769

Unibanco - Uniao de Bancos Brasileiros S.A., ADR

    301,200      19,463,544
         
      $ 35,829,041
         

Medical & Health Technology & Services – 1.0%

      

Diagnosticos da America S.A.

    185,100    $ 1,802,094

Fresenius Medical Care AG & Co.

    149,470      7,009,120

Kobayashi Pharmaceutical Co. Ltd.

    182,200      7,785,334

 

4

MFS International New Discovery Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par    Value ($)

Common Stocks – continued

      

Medical & Health Technology & Services – continued

      

SSL International PLC

    268,000    $ 1,916,287
         
      $ 18,512,835
         

Medical Equipment – 6.6%

      

Cochlear Ltd.

    238,100    $ 9,373,655

Cremer S.A.

    479,300      1,947,425

Essilor International S.A.

    288,582      13,540,301

Fresenius Medical Care AG & Co. KGaA, IPS

    240,470      14,090,983

Miraca Holdings, Inc.

    559,500      12,174,108

QIAGEN N.V. (a)

    245,093      4,283,120

Sonova Holding AG

    148,299      8,946,734

Synthes, Inc.

    259,520      32,804,937

Waters Corp. (a)

    52,600      1,927,790

William Demant Holdings A/S (a)

    91,437      3,798,591

Zimmer Holdings, Inc. (a)

    461,674      18,660,863
         
      $ 121,548,507
         

Metals & Mining – 1.7%

      

Cameco Corp.

    648,570    $ 11,059,051

Evraz Group S.A., GDR

    87,020      748,372

Grupo Mexico S.A.B. de C.V.

    3,999,176      2,544,156

Industrias CH S.A. de C.V. (a)

    662,900      1,675,380

Inmet Mining Corp.

    244,333      3,875,286

Novolipetsk Steel Corp., GDR

    145,300      1,502,314

PT International Nickel Indonesia Tbk.

    6,460,000      1,168,955

Steel Authority of India Ltd.

    2,170,208      3,478,891

Usinas Siderurgicas de Minas Gerais S.A., “A”, IPS

    415,900      4,855,414
         
      $ 30,907,819
         

Natural Gas - Distribution – 1.2%

      

Tokyo Gas Co. Ltd.

    4,508,000    $ 22,844,179
         

Natural Gas - Pipeline – 0.9%

      

Enagas S.A.

    766,791    $ 16,821,429
         

Network & Telecom – 0.3%

      

High Tech Computer Corp.

    591,500    $ 5,966,608
         

Oil Services – 1.8%

      

Acergy S.A.

    1,184,000    $ 6,741,112

Fugro N.V.

    344,864      9,900,843

OAO TMK, GDR

    186,580      727,662

Petrofac Ltd.

    210,355      1,052,274

Petroleum Geo-Services ASA (a)

    265,577      1,083,945

Saipem S.p.A.

    350,352      5,882,889

Schoeller-Bleckmann Nooter Apparatetechnik GMBH

    131,020      4,061,872

Vallourec S.A.

    24,287      2,762,295
         
      $ 32,212,892
         

Other Banks & Diversified Financials – 5.3%

      

Aeon Credit Service Co. Ltd.

    1,300,000    $ 13,754,119

Banco Compartamos S.A.

    802,900      1,449,435

Banco Panamericano S.A., IPS

    1,200,000      1,292,284

Chiba Bank Ltd.

    2,085,451      13,030,100

Credicorp Ltd.

    45,000      2,248,200

CSU Cardsystem S.A. (a)

    1,555,990      1,534,639

Grupo Financiero Banorte S.A. de C.V.

    1,592,500      2,861,061

Housing Development Finance Corp. Ltd.

    149,280      4,654,976

Komercni Banka A.S.

    84,118      12,936,373

Redecard S.A.

    413,800      4,613,833

 

5

MFS International New Discovery Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par    Value ($)

Common Stocks – continued

      

Other Banks & Diversified Financials – continued

      

Shizuoka Bank Ltd.

    2,045,000    $ 23,688,563

Siam Commercial Bank Public Co. Ltd.

    652,200      918,856

SNS REAAL Groep N.V.

    897,370      4,937,978

Unione di Banche Italiane Scpa

    667,414      9,659,405
         
      $ 97,579,822
         

Pharmaceuticals – 4.7%

      

Daiichi Sankyo Co. Ltd.

    300,000    $ 7,130,884

Genomma Lab Internacional S.A., “B” (a)

    10,895,700      7,623,882

Hisamitsu Pharmaceutical Co., Inc.

    593,700      24,238,934

Merck KGaA

    101,599      9,237,135

Novo Nordisk A/S, “B”

    368,234      18,739,201

Tanabe Seiyaku Co. Ltd.

    1,201,000      18,157,974
         
      $ 85,128,010
         

Precious Metals & Minerals – 0.1%

      

Paladin Resources Ltd. (a)

    1,271,383    $ 2,230,888
         

Printing & Publishing – 0.4%

      

Reed Elsevier PLC

    1,008,973    $ 7,333,040
         

Real Estate – 1.0%

      

Ascendas Real Estate Investment Trust, REIT

    4,807,000    $ 4,650,187

Brasil Brokers Participacoes (a)

    1,560,000      1,126,074

City Developments Ltd.

    1,283,400      5,726,590

Deutsche Wohnen AG, REIT (a)

    539,920      7,253,739
         
      $ 18,756,590
         

Special Products & Services – 0.3%

      

Filtrona PLC

    3,081,333    $ 6,091,759
         

Specialty Chemicals – 3.5%

      

Akzo Nobel N.V.

    365,150    $ 15,057,822

Croda International PLC

    1,275,473      9,579,056

Linde AG

    260,515      22,045,697

Symrise AG

    1,288,750      18,202,059
         
      $ 64,884,634
         

Specialty Stores – 1.3%

      

Bulgari S.p.A.

    490,488    $ 3,062,355

Dufry South America Ltd., BDR

    791,320      5,641,812

Esprit Holdings Ltd.

    1,144,100      6,521,408

NEXT PLC

    160,712      2,516,127

Pendragon PLC

    2,557,542      60,672

Shimamura Co. Ltd.

    70,900      5,485,363
         
      $ 23,287,737
         

Telecommunications - Wireless – 0.9%

      

Cellcom Israel Ltd.

    189,260    $ 4,182,646

NII Holdings, Inc. “B” (a)

    44,000      799,920

Philippine Long Distance Telephone Co.

    136,790      6,283,905

Turkcell Iletisim Hizmetleri A.S., ADR

    284,890      4,153,696

Vimpel-Communications, ADR

    242,260      1,734,582
         
      $ 17,154,749
         

Telephone Services – 2.4%

      

China Unicom Ltd.

    4,477,252    $ 5,446,565

Royal KPN N.V.

    1,708,200      24,770,374

Sistema JSFC, GDR

    200,000      1,100,000

Telekom Austria AG

    368,179      5,321,687

 

6

MFS International New Discovery Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par    Value ($)

Common Stocks – continued

      

Telephone Services – continued

      

Telenor A.S.A.

    1,065,805    $ 7,132,226
         
      $ 43,770,852
         

Tobacco – 1.4%

      

Swedish Match AB

    1,768,960    $ 25,322,787
         

Trucking – 2.3%

      

DSV

    319,361    $ 3,477,716

TNT N.V.

    1,075,440      20,570,036

Yamato Holdings Co. Ltd.

    1,364,000      17,785,599
         
      $ 41,833,351
         

Utilities - Electric Power – 0.8%

      

AES Tiete S.A., IPS

    574,432    $ 3,724,518

Eletropaulo Metropolitana S.A., IPS

    694,000      7,783,371

Equatorial Energia S.A.

    736,000      3,217,013
         
      $ 14,724,902
         

Total Common Stocks

       $ 1,802,061,598
         

Collateral for Securities Loaned – 0.0%

      

Morgan Stanley, Repurchase Agreement, 0.03%, dated 12/31/08, due 1/02/09, total to be received $169,510 (secured by various U.S. Treasury and Federal Agency obligations and Mortgage Backed securities in an individually traded account)

    169,510    $ 169,510
         

Money Market Funds (v) – 1.1%

      

MFS Institutional Money Market Portfolio, 0.37%, at Net Asset Value

    20,389,293    $ 20,389,293
         

Total Investments

       $ 1,822,620,401
         

Other Assets, Less Liabilities – 0.5%

         8,322,555
         

Net Assets – 100.0%

       $ 1,830,942,956
         

 

(a) Non-income producing security.
(l) All or a portion of this security is on loan.
(v) Underlying fund that is available only to investment companies managed by MFS. The rate quoted is the annualized seven-day yield of the fund at period end.

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

 

ADR    American Depository Receipt
BDR    Brazilian Depository Receipt
GDR    Global Depository Receipt
IEU    International Equity Unit
IPS    International Preference Stock
REIT    Real Estate Investment Trust

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

 

7

MFS International New Discovery Fund

Supplemental Information (Unaudited) 12/31/08

(1) Fair Value Disclosure

The fund adopted FASB Statement No. 157, Fair Value Measurements (the “Statement”). This Statement provides a single definition of fair value, a hierarchy for measuring fair value and expanded disclosures about fair value measurements.

Various inputs are used in determining the value of the fund’s assets or liabilities carried at market value. These inputs are categorized into three broad levels. Level 1 includes quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments not reflected in total investments, such as futures, forwards, swap contracts and written options. The following is a summary of the levels used as of December 31, 2008 in valuing the fund’s assets or liabilities carried at market value:

 

     Level 1    Level 2    Level 3    Total

Investments in Securities

    $ 367,592,762    $ 1,455,027,639    $ —      $ 1,822,620,401

Other Financial Instruments

    $ —      $ —      $ —      $ —  

(2) Portfolio Securities

The cost and unrealized appreciation and depreciation in the value of the investments owned by the fund, as computed on a federal income tax basis, are as follows:

 

Aggregate Cost

    $ 2,708,413,122  
        

Gross unrealized appreciation

    $ 59,586,992  

Gross unrealized depreciation

      (945,379,713 )
        

Net unrealized appreciation (depreciation)

    $ (885,792,721 )
        

The aggregate cost above includes prior fiscal year end tax adjustments.

(3) Transactions in Underlying Funds-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 transactions in securities which the fund assumes to be affiliated issuers during the three months ended December 31, 2008, is set forth below:

 

Underlying Funds

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

MFS Institutional Money

           

Market Portfolio

    17,179,660      155,454,829      (152,245,196 )     20,389,293

Underlying Funds

    Realized
Gain
(Loss)		    Capital Gain
Distributions		    Dividend
Income		     Ending
Value

MFS Institutional Money

           

Market Portfolio

    —      $ —      $ 39,590     $ 20,389,293

 

8

MFS International New Discovery Fund

Supplemental Information (Unaudited) 12/31/08 - continued

 

(4) Country Weightings

Country weighting percentages of portfolio holdings based on total net assets as of December 31, 2008, are as follows:

 

Japan

    20.5 %

Great Britain

    12.5 %

Germany

    8.6 %

France

    6.2 %

Switzerland

    5.2 %

Netherlands

    4.7 %

United States

    4.7 %

Brazil

    4.6 %

Mexico

    3.1 %

Other Countries

    29.9 %

 

9

LOGO

MFS Research Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08

 

Issuer

    Shares/Par    Value ($)

Common Stocks – 98.1%

      

Aerospace – 2.1%

      

Lockheed Martin Corp.

    301,240    $ 25,328,259

United Technologies Corp.

    224,870      12,053,032
         
      $ 37,381,291
         

Alcoholic Beverages – 0.6%

      

Molson Coors Brewing Co.

    211,650    $ 10,353,918
         

Apparel Manufacturers – 1.1%

      

Li & Fung Ltd.

    1,468,000    $ 2,515,424

NIKE, Inc., “B”

    336,740      17,173,740
         
      $ 19,689,164
         

Biotechnology – 1.4%

      

Genzyme Corp. (a)

    371,210    $ 24,637,208
         

Broadcasting – 0.5%

      

Walt Disney Co.

    392,620    $ 8,908,548
         

Brokerage & Asset Managers – 1.2%

      

Affiliated Managers Group, Inc. (a)

    150,870    $ 6,324,470

Deutsche Boerse AG

    87,450      6,369,187

Invesco Ltd.

    615,740      8,891,286
         
      $ 21,584,943
         

Business Services – 0.8%

      

MasterCard, Inc., “A”

    102,520    $ 14,653,184
         

Cable TV – 1.1%

      

Comcast Corp., “Special A”

    870,470    $ 14,058,090

Time Warner Cable, Inc., “A” (a)

    302,620      6,491,199
         
      $ 20,549,289
         

Chemicals – 1.1%

      

3M Co.

    244,690    $ 14,079,463

PPG Industries, Inc.

    158,220      6,713,275
         
      $ 20,792,738
         

Computer Software – 3.1%

      

MicroStrategy, Inc., “A” (a)

    211,260    $ 7,844,084

Oracle Corp. (a)

    1,661,230      29,453,608

VeriSign, Inc. (a)

    985,840      18,809,827
         
      $ 56,107,519
         

Computer Software - Systems – 3.7%

      

Apple, Inc. (a)

    374,040    $ 31,924,314

Hewlett-Packard Co.

    951,670      34,536,104
         
      $ 66,460,418
         

Conglomerates – 1.1%

      

Siemens AG

    276,410    $ 20,703,249
         

Construction – 2.7%

      

Pulte Homes, Inc.

    1,812,620    $ 19,811,937

Sherwin-Williams Co.

    156,900      9,374,775

Stanley Works

    578,850      19,738,785
         
      $ 48,925,497
         

Consumer Goods & Services – 1.1%

      

Colgate-Palmolive Co.

    283,620    $ 19,439,315
         

Electrical Equipment – 3.3%

      

Danaher Corp.

    812,790    $ 46,012,042

Rockwell Automation, Inc.

    456,600      14,720,784
         
      $ 60,732,826
         

 

1

MFS Research Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par    Value ($)

Common Stocks – continued

      

Electronics – 4.3%

      

ASML Holding N.V.

    515,500    $ 9,315,085

Flextronics International Ltd. (a)

    4,066,560      10,410,394

Intel Corp.

    1,865,590      27,349,549

MEMC Electronic Materials, Inc. (a)

    391,630      5,592,476

National Semiconductor Corp.

    1,465,170      14,754,262

SanDisk Corp. (a)

    1,054,400      10,122,240
         
      $ 77,544,006
         

Energy - Independent – 3.5%

      

Apache Corp.

    132,720    $ 9,891,622

Devon Energy Corp.

    203,290      13,358,186

EOG Resources, Inc.

    153,200      10,200,056

Occidental Petroleum Corp.

    156,000      9,358,440

Ultra Petroleum Corp. (a)

    130,370      4,499,069

XTO Energy, Inc.

    459,550      16,208,328
         
      $ 63,515,701
         

Energy - Integrated – 6.5%

      

Chevron Corp. (s)

    623,590    $ 46,126,952

Exxon Mobil Corp.

    553,140      44,157,166

Hess Corp.

    172,340      9,244,318

Royal Dutch Shell PLC, ADR

    173,180      9,168,149

TOTAL S.A.

    173,260      9,445,737
         
      $ 118,142,322
         

Engineering - Construction – 1.0%

      

Fluor Corp.

    403,390    $ 18,100,109
         

Food & Beverages – 6.3%

      

Coca-Cola Co.

    798,740    $ 36,158,960

Groupe Danone

    160,230      9,670,682

J.M. Smucker Co.

    180,342      7,819,629

Nestle S.A.

    368,057      14,506,074

PepsiCo, Inc. (s)

    831,260      45,528,110
         
      $ 113,683,455
         

Food & Drug Stores – 1.8%

      

CVS Caremark Corp.

    867,280    $ 24,925,627

Kroger Co.

    301,400      7,959,974
         
      $ 32,885,601
         

General Merchandise – 2.8%

      

Kohl’s Corp. (a)

    332,420    $ 12,033,604

Target Corp.

    255,800      8,832,774

Wal-Mart Stores, Inc.

    539,880      30,265,673
         
      $ 51,132,051
         

Health Maintenance Organizations – 0.9%

      

WellPoint, Inc. (a)

    393,850    $ 16,592,900
         

Insurance – 3.5%

      

ACE Ltd.

    264,690    $ 14,007,395

Chubb Corp.

    363,830      18,555,330

MetLife, Inc.

    907,960      31,651,486
         
      $ 64,214,211
         

Internet – 1.5%

      

Google, Inc., “A” (a)

    88,220    $ 27,140,883
         

Machinery & Tools – 0.5%

      

GEA Group AG

    529,360    $ 9,076,769
         

 

2

MFS Research Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par    Value ($)

Common Stocks – continued

      

Major Banks – 9.0%

      

Bank of America Corp.

    1,793,670    $ 25,254,874

Bank of New York Mellon Corp.

    797,506      22,593,345

JPMorgan Chase & Co. (s)

    1,614,620      50,908,969

State Street Corp.

    626,690      24,647,718

Wells Fargo & Co.

    1,393,490      41,080,085
         
      $ 164,484,991
         

Medical & Health Technology & Services – 1.8%

      

DaVita, Inc. (a)

    175,770    $ 8,712,919

Patterson Cos., Inc. (a)

    732,560      13,735,500

VCA Antech, Inc. (a)

    549,930      10,932,608
         
      $ 33,381,027
         

Medical Equipment – 3.9%

      

Medtronic, Inc.

    948,200    $ 29,792,444

Waters Corp. (a)

    532,030      19,498,899

Zimmer Holdings, Inc. (a)

    542,880      21,943,210
         
      $ 71,234,553
         

Metals & Mining – 0.4%

      

BHP Billiton PLC

    192,700    $ 3,629,866

Cameco Corp.

    261,370      4,508,632
         
      $ 8,138,498
         

Natural Gas - Distribution – 0.9%

      

Equitable Resources, Inc.

    267,260    $ 8,966,573

Sempra Energy

    160,220      6,830,179
         
      $ 15,796,752
         

Natural Gas - Pipeline – 0.5%

      

Williams Cos., Inc.

    628,550    $ 9,101,404
         

Network & Telecom – 0.6%

      

Research in Motion Ltd. (a)

    267,588    $ 10,858,721
         

Oil Services – 1.5%

      

Halliburton Co.

    435,200    $ 7,911,936

Noble Corp.

    517,840      11,439,086

Transocean, Inc. (a)

    168,590      7,965,877
         
      $ 27,316,899
         

Personal Computers & Peripherals – 0.7%

      

NetApp, Inc. (a)

    896,000    $ 12,517,120
         

Pharmaceuticals – 4.9%

      

Allergan, Inc.

    362,080    $ 14,599,066

Johnson & Johnson

    199,180      11,916,939

Merck & Co., Inc.

    1,028,440      31,264,576

Schering-Plough Corp.

    854,460      14,551,454

Wyeth

    428,850      16,086,163
         
      $ 88,418,198
         

Precious Metals & Minerals – 0.1%

      

Teck Cominco Ltd., “B”

    536,120    $ 2,614,372
         

Specialty Chemicals – 0.4%

      

Praxair, Inc.

    118,780    $ 7,050,781
         

Specialty Stores – 4.4%

      

Abercrombie & Fitch Co., “A”

    436,460    $ 10,069,132

Dick’s Sporting Goods, Inc. (a)

    595,430      8,401,517

Nordstrom, Inc.

    1,107,890      14,746,016

O’Reilly Automotive, Inc. (a)

    391,870      12,046,084

 

3

MFS Research Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par     Value ($)  

Common Stocks – continued

     

Specialty Stores – continued

     

PetSmart, Inc.

    624,320     $ 11,518,704  

Staples, Inc.

    787,630       14,114,330  

Tiffany & Co.

    353,150       8,344,934  
          
     $ 79,240,717  
          

Telecommunications - Wireless – 0.5%

     

Cellcom Israel Ltd.

    54,751     $ 1,209,997  

Rogers Communications, Inc., “B”

    243,970       7,338,618  
          
     $ 8,548,615  
          

Telephone Services – 2.9%

     

AT&T, Inc.

    1,363,580     $ 38,862,030  

BCE, Inc.

    244,000       4,999,560  

Verizon Communications, Inc.

    249,860       8,470,254  
          
     $ 52,331,844  
          

Tobacco – 2.7%

     

Lorillard, Inc.

    228,360     $ 12,868,086  

Philip Morris International, Inc.

    853,850       37,151,013  
          
     $ 50,019,099  
          

Trucking – 1.4%

     

FedEx Corp.

    398,560     $ 25,567,624  
          

Utilities - Electric Power – 4.0%

     

AES Corp. (a)

    260,240     $ 2,144,378  

Allegheny Energy, Inc.

    226,460       7,667,936  

American Electric Power Co., Inc.

    406,090       13,514,675  

CMS Energy Corp.

    833,750       8,429,212  

FirstEnergy Corp.

    158,790       7,714,018  

NRG Energy, Inc. (a)

    490,740       11,448,964  

PPL Corp.

    449,460       13,793,927  

Public Service Enterprise Group, Inc.

    300,720       8,772,002  
          
     $ 73,485,112  
          

Total Common Stocks

      $ 1,783,053,442  
          

Money Market Funds (v) – 0.8%

     

MFS Institutional Money Market Portfolio, 0.37%, at Net Asset Value

    13,464,530     $ 13,464,530  
          

Total Investments

      $ 1,796,517,972  
          

Securities Sold Short – (0.7)%

     

Costco Wholesale Corp.

    (81,600 )   $ (4,284,000 )

Xilinx, Inc.

    (432,980 )     (7,715,704 )
          

Total Securities Sold Short

      $ (11,999,704 )
          

Other Assets, Less Liabilities – 1.8%

        32,435,940  
          

Net Assets – 100.0%

      $ 1,816,954,208  
          

 

(a) Non-income producing security.
(s) Security or a portion of the security was pledged to cover collateral requirements for securities sold short. At December 31, 2008, the value of securities pledged amounted to $8,974,890.
(v) Underlying fund that is available only to investment companies managed by MFS. The rate quoted is the annualized seven-day yield of the fund at period end.

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

 

ADR American Depository Receipt

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

 

4

MFS Research Fund

Supplemental Information (Unaudited) 12/31/08

(1) Fair Value Disclosure

The fund adopted FASB Statement No. 157, Fair Value Measurements (the “Statement”). This Statement provides a single definition of fair value, a hierarchy for measuring fair value and expanded disclosures about fair value measurements.

Various inputs are used in determining the value of the fund’s assets or liabilities carried at market value. These inputs are categorized into three broad levels. Level 1 includes quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments not reflected in total investments, such as futures, forwards, swap contracts and written options. The following is a summary of the levels used as of December 31, 2008 in valuing the fund’s assets or liabilities carried at market value:

 

     Level 1    Level 2    Level 3    Total

Investments in Securities (a)

    $ 1,711,116,704    $ 73,401,564    $ —      $ 1,784,518,268

Other Financial Instruments

    $ —      $ —      $ —      $ —  

 

(a) Level 1 is net of securities sold short, at value in the amount of $11,999,704.

(2) Portfolio Securities

The cost and unrealized appreciation and depreciation in the value of the investments owned by the fund, as computed on a federal income tax basis, are as follows:

 

Aggregate Cost

    $ 2,367,607,221  
        

Gross unrealized appreciation

    $ 35,530,272  

Gross unrealized depreciation

      (606,619,521 )
        

Net unrealized appreciation (depreciation)

    $ (571,089,249 )
        

The aggregate cost above includes prior fiscal year end tax adjustments.

(3) Transactions in Underlying Funds-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 transactions in securities which the fund assumes to be affiliated issuers during the three months ended December 31, 2008, is set forth below:

 

Underlying Funds

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

MFS Institutional Money Market Portfolio

      19,583,706      123,450,140      (129,569,316 )     13,464,530

Underlying Funds

    Realized
Gain
(Loss)		    Capital Gain
Distributions		    Dividend
Income		     Ending
Value

MFS Institutional Money Market Portfolio

    $ —      $ —      $ 55,440     $ 13,464,530

 

5

LOGO

MFS Total Return Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08

 

Issuer

    Shares/Par    Value ($)

Common Stocks – 58.6%

      

Aerospace – 4.1%

      

Lockheed Martin Corp.

    1,612,620    $ 135,589,082

Northrop Grumman Corp.

    1,384,050      62,337,612

United Technologies Corp.

    1,307,140      70,062,704
         
      $ 267,989,398
         

Alcoholic Beverages – 0.9%

      

Diageo PLC

    2,713,852    $ 37,751,105

Heineken N.V.

    254,960      7,833,287

Molson Coors Brewing Co.

    216,970      10,614,172
         
      $ 56,198,564
         

Apparel Manufacturers – 0.7%

      

NIKE, Inc., “B”

    931,970    $ 47,530,470
         

Automotive – 0.4%

      

Johnson Controls, Inc.

    1,330,690    $ 24,165,330
         

Biotechnology – 0.2%

      

Genzyme Corp. (a)

    211,720    $ 14,051,856
         

Broadcasting – 1.3%

      

Omnicom Group, Inc.

    1,425,740    $ 38,380,921

Walt Disney Co.

    1,711,500      38,833,935

WPP Group PLC

    1,684,112      9,817,095
         
      $ 87,031,951
         

Brokerage & Asset Managers – 0.6%

      

Franklin Resources, Inc.

    284,700    $ 18,158,166

Invesco Ltd.

    433,450      6,259,018

Merrill Lynch & Co., Inc.

    1,155,300      13,447,692
         
      $ 37,864,876
         

Business Services – 1.3%

      

Accenture Ltd.

    1,072,880    $ 35,179,735

Automatic Data Processing, Inc.

    489,580      19,260,077

Visa, Inc.

    334,470      17,542,952

Western Union Co.

    966,570      13,860,614
         
      $ 85,843,378
         

Cable TV – 0.3%

      

Time Warner Cable, Inc., “A” (a)

    819,940    $ 17,587,713
         

Chemicals – 1.5%

      

3M Co.

    709,490    $ 40,824,055

PPG Industries, Inc.

    1,336,520      56,708,544
         
      $ 97,532,599
         

Computer Software – 1.4%

      

Oracle Corp. (a)

    5,118,250    $ 90,746,573
         

Computer Software - Systems – 1.2%

      

Hewlett-Packard Co.

    484,050    $ 17,566,175

International Business Machines Corp.

    749,270      63,058,563
         
      $ 80,624,738
         

Construction – 0.3%

      

Sherwin-Williams Co.

    314,280    $ 18,778,230
         

Consumer Goods & Services – 0.9%

      

Clorox Co.

    396,430    $ 22,025,651

Colgate-Palmolive Co.

    144,800      9,924,592

Procter & Gamble Co.

    474,138      29,311,188
         
      $ 61,261,431
         

 

1

MFS Total Return Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par    Value ($)

Common Stocks – continued

      

Electrical Equipment – 1.1%

      

Danaher Corp.

    563,420    $ 31,895,206

General Electric Co.

    381,880      6,186,456

W.W. Grainger, Inc.

    417,550      32,919,642
         
      $ 71,001,304
         

Electronics – 1.1%

      

Agilent Technologies, Inc. (a)

    588,230    $ 9,194,035

Intel Corp.

    4,104,380      60,170,211
         
      $ 69,364,246
         

Energy - Independent – 2.5%

      

Anadarko Petroleum Corp.

    494,110    $ 19,047,941

Apache Corp.

    882,550      65,776,452

Devon Energy Corp.

    700,605      46,036,755

EOG Resources, Inc.

    250,930      16,706,919

Occidental Petroleum Corp.

    174,630      10,476,054

Ultra Petroleum Corp. (a)

    122,500      4,227,475
         
      $ 162,271,596
         

Energy - Integrated – 6.2%

      

Chevron Corp.

    923,675    $ 68,324,240

ConocoPhillips

    314,880      16,310,784

Exxon Mobil Corp.

    1,978,668      157,957,066

Hess Corp.

    755,900      40,546,476

Marathon Oil Corp.

    851,510      23,297,314

TOTAL S.A., ADR

    1,771,580      97,968,374
         
      $ 404,404,254
         

Food & Beverages – 2.9%

      

Coca-Cola Co.

    409,290    $ 18,528,558

General Mills, Inc.

    164,070      9,967,253

Groupe Danone

    176,953      10,679,999

J.M. Smucker Co.

    315,723      13,689,749

Kellogg Co.

    332,620      14,585,387

Nestle S.A.

    1,675,841      66,049,209

Pepsi Bottling Group, Inc.

    53,830      1,211,713

PepsiCo, Inc.

    982,410      53,806,596
         
      $ 188,518,464
         

Food & Drug Stores – 1.6%

      

CVS Caremark Corp.

    2,050,399    $ 58,928,467

Kroger Co.

    1,012,150      26,730,882

Walgreen Co.

    709,730      17,509,039
         
      $ 103,168,388
         

Gaming & Lodging – 0.2%

      

Royal Caribbean Cruises Ltd.

    1,025,860    $ 14,105,575
         

General Merchandise – 0.9%

      

Macy’s, Inc.

    2,868,380    $ 29,687,733

Target Corp.

    218,900      7,558,617

Wal-Mart Stores, Inc.

    321,680      18,033,381
         
      $ 55,279,731
         

Health Maintenance Organizations – 0.4%

      

UnitedHealth Group, Inc.

    422,530    $ 11,239,298

WellPoint, Inc. (a)

    422,440      17,797,397
         
      $ 29,036,695
         

Insurance – 3.6%

      

Allstate Corp.

    2,486,470    $ 81,456,757

 

2

MFS Total Return Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par    Value ($)

Common Stocks – continued

      

Insurance – continued

      

Aon Corp.

    160,110    $ 7,313,825

Chubb Corp.

    301,380      15,370,380

Genworth Financial, Inc.

    900,100      2,547,283

MetLife, Inc.

    2,914,100      101,585,526

Prudential Financial, Inc.

    256,890      7,773,491

Travelers Cos., Inc.

    453,210      20,485,092
         
      $ 236,532,354
         

Internet – 0.0%

      

Google, Inc., “A” (a)

    8,210    $ 2,525,807
         

Leisure & Toys – 0.2%

      

Hasbro, Inc.

    496,750    $ 14,490,198
         

Machinery & Tools – 0.5%

      

Eaton Corp.

    601,980    $ 29,924,426
         

Major Banks – 6.5%

      

Bank of America Corp.

    3,018,644    $ 42,502,508

Bank of New York Mellon Corp.

    3,052,698      86,482,934

Goldman Sachs Group, Inc.

    763,740      64,452,019

JPMorgan Chase & Co.

    3,346,721      105,522,113

PNC Financial Services Group, Inc.

    833,690      40,850,810

State Street Corp.

    1,156,530      45,486,325

SunTrust Banks, Inc.

    135,810      4,011,827

Wells Fargo & Co.

    1,071,980      31,601,970
         
      $ 420,910,506
         

Medical Equipment – 0.4%

      

Waters Corp. (a)

    391,140    $ 14,335,281

Zimmer Holdings, Inc. (a)

    268,220      10,841,452
         
      $ 25,176,733
         

Natural Gas - Distribution – 0.2%

      

Sempra Energy

    379,930    $ 16,196,416
         

Natural Gas - Pipeline – 0.2%

      

Williams Cos., Inc.

    945,510    $ 13,690,985
         

Network & Telecom – 0.2%

      

Nokia Corp., ADR

    646,790    $ 10,089,924
         

Oil Services – 0.3%

      

Halliburton Co.

    296,840    $ 5,396,551

National Oilwell Varco, Inc. (a)

    359,380      8,783,247

Noble Corp.

    210,470      4,649,282
         
      $ 18,829,080
         

Other Banks & Diversified Financials – 0.1%

      

New York Community Bancorp, Inc.

    340,590    $ 4,073,456
         

Pharmaceuticals – 4.1%

      

Abbott Laboratories

    227,660    $ 12,150,214

GlaxoSmithKline PLC

    538,520      9,997,297

Johnson & Johnson

    1,111,110      66,477,711

Merck & Co., Inc.

    2,422,630      73,647,952

Merck KGaA

    134,660      12,242,962

Pfizer, Inc.

    273,700      4,847,227

Roche Holding AG

    52,850      8,135,396

Wyeth

    2,068,448      77,587,484
         
      $ 265,086,243
         

 

3

MFS Total Return Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par    Value ($)

Common Stocks – continued

      

Railroad & Shipping – 0.1%

      

Burlington Northern Santa Fe Corp.

      44,950    $ 3,403,165
         

Real Estate – 0.0%

      

Apartment Investment & Management, “A”, REIT

      4,629    $ 53,465
         

Specialty Chemicals – 0.4%

      

Air Products & Chemicals, Inc.

      539,980    $ 27,144,795
         

Specialty Stores – 0.4%

      

O’Reilly Automotive, Inc. (a)

      129,500    $ 3,980,830

Staples, Inc.

      1,202,430      21,547,546
         
      $ 25,528,376
         

Telecommunications - Wireless – 0.7%

      

America Movil S.A.B. de C.V., “L”, ADR

      50,260    $ 1,557,557

Rogers Communications, Inc., “B”

      653,850      19,379,807

Vodafone Group PLC

      12,454,983      25,073,290
         
      $ 46,010,654
         

Telephone Services – 2.7%

      

AT&T, Inc.

      4,671,088    $ 133,126,008

Embarq Corp.

      951,468      34,214,789

Verizon Communications, Inc.

      242,382      8,216,750
         
      $ 175,557,547
         

Tobacco – 2.3%

      

Altria Group, Inc.

      444,320    $ 6,691,459

Lorillard, Inc.

      405,110      22,827,949

Philip Morris International, Inc.

      2,711,050      117,957,786
         
      $ 147,477,194
         

Trucking – 0.2%

      

United Parcel Service, Inc., “B”

      197,740    $ 10,907,338
         

Utilities - Electric Power – 3.5%

      

Allegheny Energy, Inc.

      383,490    $ 12,984,971

American Electric Power Co., Inc.

      486,020      16,174,746

CMS Energy Corp.

      376,010      3,801,461

Dominion Resources, Inc.

      786,858      28,200,991

Entergy Corp.

      203,560      16,921,943

FPL Group, Inc.

      887,390      44,662,339

NRG Energy, Inc. (a)

      789,820      18,426,501

PG&E Corp.

      667,370      25,833,893

PPL Corp.

      915,390      28,093,319

Public Service Enterprise Group, Inc.

      1,102,210      32,151,466
         
      $ 227,251,630
         

Total Common Stocks

       $ 3,805,217,652
         

Bonds – 40.7%

      

Agency - Other – 0.1%

      

Financing Corp., 9.65%, 2018

    $ 2,850,000    $ 4,418,971
         

Asset Backed & Securitized – 2.2%

      

Banc of America Commercial Mortgage, Inc., 5.745%, 2017

    $ 13,600,000    $ 9,799,313

Bayview Financial Revolving Mortgage Loan Trust, FRN, 1.271%, 2040 (z)

      10,340,000      6,410,800

BlackRock Capital Finance LP, 7.75%, 2026

      1,085,379      173,661

Capital Trust Realty CDO Ltd., 5.16%, 2035 (z)

      2,400,000      1,320,000

Chase Commercial Mortgage Securities Corp., 7.543%, 2032

      114,979      114,654

Citigroup/Deutsche Bank Commercial Mortgage Trust, 5.322%, 2049

      6,820,000      4,761,018

Countrywide Asset-Backed Certificates, FRN, 4.575%, 2035

      53,910      52,152

Countrywide Asset-Backed Certificates, FRN, 4.823%, 2035

      1,216,716      1,177,560

Countrywide Asset-Backed Certificates, FRN, 5.689%, 2046

      6,450,000      3,635,155

 

4

MFS Total Return Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par    Value ($)

Bonds – continued

      

Asset Backed & Securitized – continued

      

Credit Suisse Commercial Mortgage Trust, 5.509%, 2039

    $ 8,321,579    $ 4,051,073

Credit Suisse Mortgage Capital Certificate, 5.695%, 2017

      9,759,829      6,455,454

GE Commercial Mortgage Corp., FRN, 5.338%, 2044

      7,580,000      3,840,443

GMAC Mortgage Corp. Loan Trust, FRN, 5.805%, 2036

      7,534,000      2,589,794

Greenwich Capital Commercial Funding Corp., 4.305%, 2042

      5,163,567      4,886,096

Greenwich Capital Commercial Funding Corp., FRN, 5.317%, 2036

      3,468,895      2,885,924

JPMorgan Chase Commercial Mortgage Securities Corp, 5.819%, 2049

      16,230,000      11,462,045

JPMorgan Chase Commercial Mortgage Securities Corp., 4.78%, 2042

      828,000      464,591

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 4.948%, 2037

      1,200,000      674,001

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.222%, 2041

      2,279,327      1,924,480

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.475%, 2043

      6,980,000      5,428,877

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.875%, 2045

      7,270,000      5,799,692

Merrill Lynch Mortgage Trust, FRN, 5.829%, 2050

      5,520,000      967,870

Merrill Lynch/Countrywide Commercial Mortgage Trust, FRN, 5.473%, 2039

      6,500,000      3,337,549

Merrill Lynch/Countrywide Commercial Mortgage Trust, FRN, 5.749%, 2050

      9,759,829      6,928,814

Morgan Stanley Capital I, Inc., FRN, 0.814%, 2030 (i)(n)

      54,852,223      922,071

Multi-Family Capital Access One, Inc., 6.65%, 2024

      941,849      940,511

Residential Asset Mortgage Products, Inc., FRN, 4.971%, 2034

      5,243,000      3,775,094

Residential Funding Mortgage Securities, Inc., FRN, 5.32%, 2035

      8,242,000      2,785,565

Spirit Master Funding LLC, 5.05%, 2023 (z)

      9,010,043      7,382,717

Structured Asset Securities Corp., FRN, 4.67%, 2035

      8,820,815      7,020,330

Wachovia Bank Commercial Mortgage Trust, 5.902%, 2017

      17,935,000      12,961,178

Wachovia Bank Commercial Mortgage Trust, 4.75%, 2044

      7,432,000      4,365,480

Wachovia Bank Commercial Mortgage Trust, FRN, 4.847%, 2041

      11,645,000      9,352,971

Wachovia Bank Commercial Mortgage Trust, FRN, 5.957%, 2045

      9,160,000      4,751,090

Wachovia Bank Commercial Mortgage Trust, FRN, 5.795%, 2045

      4,405,058      2,221,709
         
      $ 145,619,732
         

Broadcasting – 0.3%

      

CBS Corp., 6.625%, 2011

    $ 8,518,000    $ 7,548,498

Hearst-Argyle Television, Inc., 7.5%, 2027

      3,800,000      3,225,934

News America, Inc., 8.5%, 2025

      5,903,000      5,809,337
         
      $ 16,583,769
         

Brokerage & Asset Managers – 0.2%

      

Lehman Brothers Holdings, Inc., 6.5%, 2017 (d)

    $ 6,800,000    $ 680

Merrill Lynch & Co., Inc., 6.15%, 2013

      6,790,000      6,728,136

Merrill Lynch & Co., Inc., 6.11%, 2037

      5,900,000      5,303,658
         
      $ 12,032,474
         

Building – 0.1%

      

CRH America, Inc., 6.95%, 2012

    $ 8,021,000    $ 6,456,055
         

Business Services – 0.1%

      

Xerox Corp., 5.5%, 2012

    $ 5,100,000    $ 4,274,055
         

Cable TV – 0.2%

      

Cox Communications, Inc., 4.625%, 2013

    $ 6,711,000    $ 5,816,216

Time Warner Entertainment Co. LP, 8.375%, 2033

      7,170,000      7,235,455
         
      $ 13,051,671
         

Chemicals – 0.1%

      

PPG Industries, Inc., 5.75%, 2013

    $ 4,690,000    $ 4,638,110
         

Conglomerates – 0.1%

      

Kennametal, Inc., 7.2%, 2012

    $ 8,542,000    $ 8,299,040
         

Consumer Goods & Services – 0.3%

      

Fortune Brands, Inc., 5.125%, 2011

    $ 9,914,000    $ 9,522,456

Western Union Co., 5.4%, 2011

      13,050,000      12,543,386
         
      $ 22,065,842
         

 

5

MFS Total Return Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par    Value ($)

Bonds – continued

      

Defense Electronics – 0.1%

      

BAE Systems Holdings, Inc., 5.2%, 2015 (n)

    $ 8,973,000    $ 8,346,685
         

Electronics – 0.1%

      

Tyco Electronics Group S.A., 6.55%, 2017

    $ 7,980,000    $ 6,706,408
         

Emerging Market Quasi-Sovereign – 0.1%

      

Ras Laffan Liquefied Natural Gas Co. Ltd., 5.832%, 2016 (n)

    $ 6,340,000    $ 4,719,813
         

Emerging Market Sovereign – 0.1%

      

State of Israel, 4.625%, 2013

    $ 6,850,000    $ 7,179,560
         

Energy - Independent – 0.2%

      

Nexen, Inc., 5.875%, 2035

    $ 2,117,000    $ 1,593,864

Ocean Energy, Inc., 7.25%, 2011

      8,780,000      9,014,329
         
      $ 10,608,193
         

Energy - Integrated – 0.1%

      

Petro-Canada, 6.05%, 2018

    $ 9,475,000    $ 7,809,020
         

Financial Institutions – 0.6%

      

American Express Co., 5.5%, 2016

    $ 11,996,000    $ 11,007,062

Capital One Financial Corp., 6.15%, 2016

      8,680,000      6,108,090

General Electric Capital Corp., 5.45%, 2013

      2,383,000      2,400,065

HSBC Finance Corp., 5.25%, 2011

      8,925,000      8,652,930

ORIX Corp., 5.48%, 2011

      13,060,000      9,811,678
         
      $ 37,979,825
         

Food & Beverages – 0.5%

      

Diageo Finance B.V., 5.5%, 2013

    $ 14,470,000    $ 14,386,537

Dr. Pepper Snapple Group, Inc., 6.12%, 2013 (n)

      2,540,000      2,501,994

Dr. Pepper Snapple Group, Inc., 6.82%, 2018 (n)

      3,082,000      3,039,937

Miller Brewing Co., 5.5%, 2013 (n)

      16,686,000      15,557,776
         
      $ 35,486,244
         

Food & Drug Stores – 0.1%

      

CVS Caremark Corp., 6.125%, 2016

    $ 6,630,000    $ 6,423,363
         

Gaming & Lodging – 0.1%

      

Marriott International, Inc., 6.375%, 2017

    $ 7,330,000    $ 5,111,392

Wyndham Worldwide Corp., 6%, 2016

      6,562,000      2,645,063
         
      $ 7,756,455
         

Insurance – 0.1%

      

American International Group, Inc., 8.25%, 2018 (z)

    $ 3,490,000    $ 2,554,397

ING Groep N.V., 5.775% to 2015, FRN to 2049

      8,503,000      3,641,767

Metropolitan Life Global Funding, 5.125%, 2013 (n)

      3,340,000      3,112,075
         
      $ 9,308,239
         

Insurance - Property & Casualty – 0.3%

      

Allstate Corp., 5.55%, 2035

    $ 7,742,000    $ 6,298,868

Chubb Corp., 6.375% to 2017, FRN to 2067

      6,830,000      4,235,911

Fund American Cos., Inc., 5.875%, 2013

      6,030,000      4,388,568

ZFS Finance USA Trust IV, 5.875% to 2012, FRN to 2032 (n)

      2,640,000      922,363

ZFS Finance USA Trust V, 6.5% to 2017, FRN to 2037 (n)

      11,610,000      4,760,100
         
      $ 20,605,810
         

International Market Quasi-Sovereign – 0.3%

      

Hydro-Quebec, 6.3%, 2011

    $ 16,520,000    $ 17,542,357
         

International Market Sovereign – 0.2%

      

Province of Ontario, 5%, 2011

    $ 13,130,000    $ 13,802,650
         

Machinery & Tools – 0.1%

      

Atlas Copco AB, 5.6%, 2017 (n)

    $ 5,970,000    $ 5,608,242
         

 

6

MFS Total Return Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par    Value ($)

Bonds – continued

      

Major Banks – 1.0%

      

Bank of America Corp., 5.49%, 2019

    $ 4,135,000    $ 3,561,223

BNP Paribas, 7.195% to 2037, FRN to 2049 (n)

      3,200,000      2,034,288

DBS Group Holdings Ltd., 7.657% to 2011, FRN to 2049 (n)

      7,327,000      7,311,848

Goldman Sachs Group, Inc., 5.625%, 2017

      7,039,000      6,047,043

Morgan Stanley, 6.75%, 2011

      6,437,000      6,333,532

Morgan Stanley, 5.75%, 2016

      6,120,000      5,142,471

MUFG Capital Finance 1 Ltd., 6.346% to 2016, FRN to 2049

      9,180,000      6,395,917

Natixis S.A., 10% to 2018, FRN to 2049 (n)

      9,804,000      5,221,774

PNC Funding Corp., 5.625%, 2017

      6,510,000      6,322,955

Royal Bank of Scotland Group PLC, 6.99% to 2017, FRN to 2049 (n)

      2,060,000      963,124

UniCredito Italiano Capital Trust II, 9.2% to 2010, FRN to 2049 (n)

      11,444,000      4,378,268

UniCredito Luxembourg Finance S.A., 6%, 2017 (n)

      8,740,000      7,287,543

Wachovia Corp., 5.25%, 2014

      4,613,000      4,297,074
         
      $ 65,297,060
         

Medical & Health Technology & Services – 0.3%

      

Cardinal Health, Inc., 5.8%, 2016

    $ 4,803,000    $ 4,345,168

HCA, Inc., 8.75%, 2010

      742,000      712,320

Hospira, Inc., 5.55%, 2012

      3,080,000      2,918,201

Hospira, Inc., 6.05%, 2017

      10,978,000      8,916,529
         
      $ 16,892,218
         

Metals & Mining – 0.1%

      

ArcelorMittal, 6.125%, 2018

    $ 9,913,000    $ 6,788,006
         

Mortgage Backed – 16.7%

      

Fannie Mae, 6.33%, 2011

    $ 1,458,102    $ 1,530,686

Fannie Mae, 4.01%, 2013

      1,002,685      991,102

Fannie Mae, 4.021%, 2013

      3,170,179      3,140,040

Fannie Mae, 4.667%, 2013

      675,127      686,251

Fannie Mae, 4.518%, 2014

      5,875,414      5,928,268

Fannie Mae, 4.63%, 2014

      2,496,540      2,520,221

Fannie Mae, 4.76%, 2014

      195,085      198,437

Fannie Mae, 4.839%, 2014

      4,471,359      4,559,046

Fannie Mae, 4.88%, 2014 - 2020

      1,651,428      1,684,419

Fannie Mae, 4.56%, 2015

      359,522      362,139

Fannie Mae, 4.7%, 2015

      666,298      672,116

Fannie Mae, 4.78%, 2015

      2,389,685      2,420,165

Fannie Mae, 4.925%, 2015

      14,060,941      14,370,495

Fannie Mae, 5.19%, 2015

      1,385,831      1,432,530

Fannie Mae, 5.09%, 2016

      2,000,000      2,051,537

Fannie Mae, 5.05%, 2017

      2,501,000      2,559,434

Fannie Mae, 5.5%, 2017 - 2035

      245,845,382      252,777,556

Fannie Mae, 6%, 2017 - 2037

      152,147,326      157,187,602

Fannie Mae, 4.5%, 2018 - 2035

      54,851,410      56,220,394

Fannie Mae, 5%, 2018 - 2035

      90,946,796      93,284,095

Fannie Mae, 7.5%, 2030 - 2032

      1,326,039      1,404,704

Fannie Mae, 6.5%, 2031 - 2037

      57,018,593      59,454,896

Freddie Mac, 6%, 2016 - 2037

      89,712,327      92,707,674

Freddie Mac, 5%, 2017 - 2035

      106,212,710      109,005,730

Freddie Mac, 4.5%, 2019 - 2035

      23,369,063      23,948,604

Freddie Mac, 5.5%, 2019 - 2035

      86,164,940      88,489,906

Freddie Mac, 6.5%, 2034 - 2037

      25,171,594      26,189,786

Ginnie Mae, 5.5%, 2032 - 2035

      31,106,813      32,154,210

Ginnie Mae, 6%, 2032 - 2038

      26,654,174      27,536,731

Ginnie Mae, 4.5%, 2033 - 2034

      6,981,142      7,087,242

Ginnie Mae, 5%, 2033 - 2034

      7,619,023      7,836,236
         
      $ 1,080,392,252
         

 

7

MFS Total Return Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par    Value ($)

Bonds – continued

      

Municipals – 0.3%

      

California Educational Facilities Authority Rev. (Stanford University), “T-1”, 5%, 2039

    $ 3,195,000    $ 3,189,824

Massachusetts Bay Transportation Authority Sales Tax Rev., “A-1”, 5.25%, 2033

      6,480,000      6,488,813

Massachusetts Health & Educational Facilities Authority Rev. (Boston College), 5.5%, 2030

      4,210,000      4,194,002

Massachusetts Health & Educational Facilities Authority Rev. (Boston College), 5.5%, 2035

      6,685,000      6,547,891
         
      $ 20,420,530
         

Natural Gas - Pipeline – 0.4%

      

CenterPoint Energy, Inc., 7.875%, 2013

    $ 6,965,000    $ 6,451,638

Enterprise Products Operating LLC, 6.5%, 2019

      5,184,000      4,361,387

Kinder Morgan Energy Partners LP, 6.75%, 2011

      8,013,000      7,793,772

Kinder Morgan Energy Partners LP, 7.75%, 2032

      2,520,000      2,208,344

Spectra Energy Capital LLC, 8%, 2019

      5,327,000      5,528,068
         
      $ 26,343,209
         

Network & Telecom – 0.7%

      

Deutsche Telekom International Finance B.V., 5.75%, 2016

    $ 5,504,000    $ 5,268,638

Telecom Italia Capital, 5.25%, 2013

      4,186,000      3,191,825

Telefonica Europe B.V., 7.75%, 2010

      4,400,000      4,467,593

TELUS Corp., 8%, 2011

      11,527,000      11,464,616

Verizon New York, Inc., 6.875%, 2012

      19,974,000      19,873,151
         
      $ 44,265,823
         

Oil Services – 0.1%

      

Weatherford International Ltd., 6.35%, 2017

    $ 2,900,000    $ 2,474,964

Weatherford International Ltd., 6%, 2018

      6,883,000      5,780,061
         
      $ 8,255,025
         

Oils – 0.2%

      

Valero Energy Corp., 6.875%, 2012

    $ 12,750,000    $ 12,821,783
         

Other Banks & Diversified Financials – 0.4%

      

Nordea Bank AB, 5.424% to 2015, FRN to 2049 (n)

    $ 3,333,000    $ 1,524,244

UBS Preferred Funding Trust V, 6.243% to 2016, FRN to 2049

      12,360,000      6,750,093

UFJ Finance Aruba AEC, 6.75%, 2013

      9,069,000      8,864,022

Woori Bank, 6.125% to 2011, FRN to 2016 (n)

      15,472,000      11,133,651
         
      $ 28,272,010
         

Pharmaceuticals – 0.2%

      

Allergan, Inc., 5.75%, 2016

    $ 9,860,000    $ 9,433,279

GlaxoSmithKline Capital, Inc., 4.85%, 2013

      3,090,000      3,099,446
         
      $ 12,532,725
         

Pollution Control – 0.1%

      

Waste Management, Inc., 7.375%, 2010

    $ 7,332,000    $ 7,430,161
         

Railroad & Shipping – 0.1%

      

CSX Corp., 6.75%, 2011

    $ 618,000    $ 615,568

CSX Corp., 7.9%, 2017

      6,220,000      6,401,867
         
      $ 7,017,435
         

Real Estate – 0.4%

      

Boston Properties, Inc., REIT, 5%, 2015

    $ 2,006,000    $ 1,263,188

HRPT Properties Trust, REIT, 6.25%, 2016

      11,278,000      6,007,182

Kimco Realty Corp., REIT, 6%, 2012

      1,750,000      1,353,760

ProLogis, REIT, 5.75%, 2016

      11,170,000      5,570,635

Simon Property Group, Inc., REIT, 5.1%, 2015

      11,785,000      7,224,500

Vornado Realty Trust, REIT, 4.75%, 2010

      5,141,000      4,625,795
         
      $ 26,045,060
         

 

8

MFS Total Return Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par    Value ($)

Bonds – continued

      

Retailers – 0.3%

      

Home Depot, Inc., 5.875%, 2036

    $ 2,896,000    $ 2,270,759

Limited Brands, Inc., 5.25%, 2014

      6,288,000      3,627,365

Macy’s Retail Holdings, Inc., 5.35%, 2012

      2,980,000      2,213,464

Wal-Mart Stores, Inc., 5.25%, 2035

      12,347,000      12,293,439
         
      $ 20,405,027
         

Telecommunications - Wireless – 0.2%

      

Cingular Wireless LLC, 6.5%, 2011

    $ 3,924,000    $ 3,939,676

Rogers Communications, Inc., 6.8%, 2018

      8,529,000      8,617,966
         
      $ 12,557,642
         

Tobacco – 0.3%

      

Altria Group, Inc., 9.7%, 2018

    $ 8,720,000    $ 9,424,838

Philip Morris International, Inc., 4.875%, 2013

      12,220,000      12,254,974
         
      $ 21,679,812
         

U.S. Government Agencies – 1.9%

      

Aid-Egypt, 4.45%, 2015

    $ 9,559,000    $ 10,327,066

Fannie Mae, 6.625%, 2009

      28,113,000      29,262,372

Freddie Mac, 5.5%, 2017

      44,400,000      52,361,675

Small Business Administration, 8.8%, 2011

      15,293      15,590

Small Business Administration, 4.35%, 2023

      1,652,462      1,637,813

Small Business Administration, 4.77%, 2024

      4,022,045      4,054,171

Small Business Administration, 4.99%, 2024

      6,023,184      6,132,759

Small Business Administration, 5.18%, 2024

      6,443,563      6,618,111

Small Business Administration, 5.52%, 2024

      4,189,227      4,367,164

Small Business Administration, 4.95%, 2025

      5,036,746      5,114,099
         
      $ 119,890,820
         

U.S. Treasury Obligations – 8.9%

      

U.S. Treasury Bonds, 2.375%, 2010

    $ 98,463,000    $ 101,451,549

U.S. Treasury Bonds, 2%, 2013

      11,523,000      11,821,884

U.S. Treasury Bonds, 4.75%, 2017

      22,360,000      26,734,175

U.S. Treasury Bonds, 6%, 2026

      18,687,000      26,080,044

U.S. Treasury Bonds, 6.75%, 2026

      11,593,000      17,485,502

U.S. Treasury Bonds, 5.375%, 2031

      50,138,000      68,892,721

U.S. Treasury Bonds, 4.5%, 2036

      18,917,000      25,133,013

U.S. Treasury Notes, 4.875%, 2009

      30,443,000      31,292,086

U.S. Treasury Notes, 6.5%, 2010

      96,429,000      102,855,125

U.S. Treasury Notes, 1.5%, 2010

      27,486,000      27,896,146

U.S. Treasury Notes, 4.125%, 2012

      40,921,000      45,256,089

U.S. Treasury Notes, 3.875%, 2013

      9,952,000      11,087,145

U.S. Treasury Notes, 3.5%, 2013

      25,000,000      27,382,800

U.S. Treasury Notes, 4.75%, 2014

      2,962,000      3,485,673

U.S. Treasury Notes, 4.125%, 2015

      36,559,000      41,928,603

U.S. Treasury Notes, 4.25%, 2015

      856,000      994,030

U.S. Treasury Notes, 4.5%, 2015

      4,568,000      5,417,365
         
      $ 575,193,950
         

Utilities - Electric Power – 1.4%

      

Bruce Mansfield Unit, 6.85%, 2034

    $ 13,870,000    $ 11,825,258

Enel Finance International S.A., 6.25%, 2017 (n)

      8,525,000      7,198,996

Exelon Generation Co. LLC, 6.95%, 2011

      15,019,000      14,578,928

Exelon Generation Co. LLC, 6.2%, 2017

      720,000      619,209

FirstEnergy Corp., 6.45%, 2011

      13,306,000      12,577,576

MidAmerican Energy Holdings Co., 5.875%, 2012

      2,667,000      2,660,365

MidAmerican Funding LLC, 6.927%, 2029

      12,485,000      11,408,369

Oncor Electric Delivery Co., 7%, 2022

      8,725,000      8,152,710

PSEG Power LLC, 6.95%, 2012

      6,285,000      6,201,221

 

9

MFS Total Return Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 12/31/08 - continued

 

Issuer

    Shares/Par    Value ($)

Bonds – continued

      

Utilities - Electric Power – continued

      

PSEG Power LLC, 5.5%, 2015

    $ 5,036,000    $ 4,500,522

System Energy Resources, Inc., 5.129%, 2014 (z)

      3,838,627      3,645,084

Waterford 3 Funding Corp., 8.09%, 2017

      6,661,497      6,597,813
         
      $ 89,966,051
         

Total Bonds

       $ 2,639,789,182
         

Money Market Funds (v) – 0.2%

      

MFS Institutional Money Market Portfolio, 0.37%, at Net Asset Value

      11,250,647    $ 11,250,647
         

Total Investments

       $ 6,456,257,481
         

Other Assets, Less Liabilities – 0.5%

         30,243,404
         

Net Assets – 100.0%

       $ 6,486,500,885
         

 

(a) Non-income producing security.
(d) Non-income producing security - in default.
(i) Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security.
(n) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $96,544,792, representing 1.49% of net assets.
(v) Underlying fund that is available only to investment companies managed by MFS. The rate quoted is the annualized seven-day yield of the fund at period end.
(z) Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities:

 

Restricted Securities

    Acquisition
Date		    Cost    Current
Market Value		  

American International Group, Inc., 8.25%, 2018

    8/13/08    $ 3,490,000    $ 2,554,397  

Bayview Financial Revolving Mortgage Loan Trust, FRN, 1.271%, 2040

    3/01/06      10,340,000      6,410,800  

Capital Trust Realty CDO Ltd., 5.16%, 2035

    4/07/06      2,314,942      1,320,000  

Spirit Master Funding LLC, 5.05%, 2023

    10/04/05      8,908,183      7,382,717  

System Energy Resources, Inc., 5.129%, 2014

    4/16/04      3,838,627      3,645,084  
                    

Total Restricted Securities

          $ 21,312,998  

% of Net Assets

            0.3 %

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

 

ADR   American Depository Receipt
CDO   Collateralized Debt Obligation
FRN   Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end.
REIT   Real Estate Investment Trust

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

 

10

MFS Total Return Fund

Supplemental Information (Unaudited) 12/31/08

(1) Fair Value Disclosure

The fund adopted FASB Statement No. 157, Fair Value Measurements (the “Statement”). This Statement provides a single definition of fair value, a hierarchy for measuring fair value and expanded disclosures about fair value measurements.

Various inputs are used in determining the value of the fund’s assets or liabilities carried at market value. These inputs are categorized into three broad levels. Level 1 includes quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments not reflected in total investments, such as futures, forwards, swap contracts and written options. The following is a summary of the levels used as of December 31, 2008 in valuing the fund’s assets or liabilities carried at market value:

 

     Level 1    Level 2    Level 3    Total

Investments in Securities

    $ 3,628,888,663    $ 2,827,368,818    $ —      $ 6,456,257,481

Other Financial Instruments

    $ —      $ —      $ —      $ —  

(2) Portfolio Securities

The cost and unrealized appreciation and depreciation in the value of the investments owned by the fund, as computed on a federal income tax basis, are as follows:

 

Aggregate Cost

    $ 7,222,429,270  
        

Gross unrealized appreciation

    $ 159,604,339  

Gross unrealized depreciation

      (925,776,128 )
        

Net unrealized appreciation (depreciation)

    $ (766,171,789 )
        

The aggregate cost above includes prior fiscal year end tax adjustments.

(3) Transactions in Underlying Funds-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 transactions in securities which the fund assumes to be affiliated issuers during the three months ended December 31, 2008, is set forth below:

 

Underlying Funds

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

MFS Institutional Money Market Portfolio

    19,586,063      615,858,428      (624,193,844 )     11,250,647

Underlying Funds

    Realized Gain
(Loss)		    Capital Gain
Distributions		    Dividend
Income		     Ending Value

MFS Institutional Money Market Portfolio

    —      $ —      $ 149,945     $ 11,250,647

 

11

ITEM 2. CONTROLS AND PROCEDURES.

 

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

 

(b) There were no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 3. EXHIBITS.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto.

Notice

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

SIGNATURES

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

Registrant: MFS SERIES TRUST V

 

By (Signature and Title)*    MARIA F. DWYER
  Maria F. Dwyer, President

Date: February 19, 2009

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

 

By (Signature and Title)*    MARIA F. DWYER
  Maria F. Dwyer, President (Principal Executive Officer)

Date: February 19, 2009

 

By (Signature and Title)*    JOHN M. CORCORAN
 

John M. Corcoran, Treasurer (Principal Financial Officer

and Accounting Officer)

Date: February 19, 2009

 

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