N-CSR 1 f23829d1.htm MFS SERIES TRUST X NCSR MFS SERIES TRUST X NCSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-04492

MFS SERIES TRUST X

(Exact name of registrant as specified in charter)

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

Christopher R. Bohane

Massachusetts Financial Services Company

111 Huntington Avenue

Boston, Massachusetts 02199

(Name and address of agents for service)

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

Date of fiscal year end: October 31*

Date of reporting period: October 31, 2022

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

ITEM 1. REPORTS TO STOCKHOLDERS.

Item 1(a):


Annual Report
October 31, 2022
MFS®  Emerging Markets Debt Local Currency Fund
EML-ANN


MFS® Emerging Markets Debt Local Currency Fund
CONTENTS
The report is prepared for the general information of shareholders. It is authorized for distribution to prospective investors only when preceded or accompanied by a current prospectus.
NOT FDIC INSURED  •  MAY LOSE VALUE  •  NO BANK GUARANTEE


LETTER FROM THE CHAIR AND CEO
Dear Shareholders:
Global markets have recently been buffeted by a series of crosscurrents, including rising inflation, tighter financial conditions, and evolving geopolitical tensions. Consequently, at a time when global growth faces multiple headwinds, central banks have been presented with the challenge of reining in rising prices without tipping economies into recession. The U.S. Federal Reserve has made it clear that rates must move higher and tighter policy must be sustained to restore price stability and that this will likely bring some pain to households and businesses. Against that backdrop, richly valued, interest rate–sensitive growth equities have been hit particularly hard by rising interest rates. Volatility in fixed income and currency markets has picked up, with fiscal policy missteps in the United Kingdom leading to a crisis of market confidence that ultimately resulted in the ouster of Prime Minister Liz Truss. That episode could forewarn other governments to avoid policy overreach.
There are, however, encouraging signs for the markets. China has modestly relaxed its zero-COVID policy, and cases globally, while numerous, appear to be causing fewer serious illnesses. Meanwhile, unemployment is low and global supply chain bottlenecks are easing, though lingering coronavirus restrictions in China and disruptions stemming from Russia’s invasion of Ukraine could hamper these advances. Additionally, easier Chinese monetary and regulatory policies and the record pace of corporate stock buybacks are supportive elements, albeit in an otherwise turbulent investment environment.
It is important to have a deep understanding of company fundamentals during times of market transition, and we have built our unique global research platform to do just that.
At MFS®, we put our clients’ assets to work responsibly by carefully navigating increasingly complex global capital markets. Our investment team is guided by a commitment to long-term fundamental investing. Our global investment platform — combining collective expertise, long-term discipline, and thoughtful risk management — seeks to uncover what we believe are the best, most durable investment ideas in markets around the world, enabling us to potentially create value for investors.
Respectfully,
Michael W. Roberge
Chair and Chief Executive Officer
MFS Investment Management
December 15, 2022
The opinions expressed in this letter are subject to change and may not be relied upon for investment advice. No forecasts can be guaranteed.
1

Portfolio Composition
Fixed Income exposure at value (v)
Fixed Income exposure (i)
 
Currency exposure (i)(y)
Fixed income sectors (i)
Sovereign Emerging Markets 86.6%
Government Securities Hedge (t) 4.4%
Other Government Entity-Emerging Markets Quasi Government 3.8%
Emerging Markets Corporate Bonds 3.8%
Developed Markets Corporate Bonds 0.3%
 
2

Portfolio Composition - continued
Issuer country weightings (i)(x)
Brazil 15.8%
Mexico 12.5%
China 9.2%
South Africa 8.8%
Indonesia 6.3%
Thailand 6.1%
Malaysia 6.0%
United States 5.9%
Chile 4.8%
Other Countries 24.6%
Composition including fixed income credit quality (a)(i)
AA 3.9%
A 12.4%
BBB 27.4%
BB 24.9%
B 0.9%
CC 0.1%
D 0.1%
Not Rated 29.2%
Cash & Cash Equivalents 19.9%
Other (q) (18.8)%
Currency exposure weightings (i)(y)
Mexican Peso 11.1%
Thailand Baht 10.8%
Brazilian Real 10.7%
Indonesian Rupiah 9.9%
United States Dollar 9.5%
Malaysian Ringgit 8.9%
South African Rand 8.8%
Chinese Renminbi 6.7%
Polish Zloty 4.7%
Other Currencies 18.9%
Portfolio facts
Average Duration (d) 5.3
Average Effective Maturity (m) 8.1 yrs.
 
(a) For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. Not Rated includes fixed income securities and fixed income derivatives that have not been rated by any rating agency. Non-Fixed Income includes equity securities (including convertible bonds and equity derivatives), ETFs, and/or commodity-linked derivatives. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies.
(d) Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. The Average Duration calculation reflects the impact of the equivalent exposure of derivative positions, if any.
3

Portfolio Composition - continued
(i) For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts.
(m) In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening device (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity.
(p) For purposes of the presentation of Portfolio structure at value, Other includes equivalent exposure from currency derivatives and may be negative.
(q) For purposes of this presentation, Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions and may be negative.
(t) For the purpose of managing the fund’s duration (but not its credit exposure), the fund holds futures contracts and USD swap agreements with a bond equivalent exposure of 4.1%.
(v) For purposes of this presentation, market value of fixed income and/or equity derivatives, if any, is included in Cash & Cash Equivalents.
(x) Represents the portfolio’s exposure to issuer countries as a percentage of a portfolio’s net assets. For purposes of this presentation, United States includes Cash & Cash Equivalents and Other.
(y) Represents the portfolio’s exposure to a particular currency as a percentage of a portfolio's net assets. For purposes of this presentation, United States Dollar includes Cash & Cash Equivalents.
Where the fund holds convertible bonds, they are treated as part of the equity portion of the portfolio.
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of October 31, 2022.
The portfolio is actively managed and current holdings may be different.
4

Management Review
Summary of Results
For the twelve months ended October 31, 2022, Class A shares of the MFS Emerging Markets Debt Local Currency Fund (fund) provided a total return of -17.29%, at net asset value. This compares with a return of -20.27% for the fund’s benchmark, the JPMorgan Government Bond Index Emerging Markets Global Diversified.
Market Environment
During the reporting period, markets continued to grapple with the strongest global inflationary pressures in decades along with signs of slowing economic growth. Intermittent coronavirus flareups, particularly in China, where home-grown vaccines have proved less effective than elsewhere, kept supply chains stretched for a considerable period. At the same time, the reopening of the economy in the parts of the world where the virus has been better contained has led to a shift in consumption patterns in favor of services, straining already tight labor markets in most developed economies, while reducing demand for manufactured goods, primarily from Asia. As a result of Russia’s invasion of Ukraine, geopolitical considerations, such as sanctions and trade bans, have resulted in additional supply chain tumult and volatile global energy prices. Taken together, these factors have contributed to market volatility.
The ripple effects from the Russian invasion further complicated the mission central banks must undertake to rein in surging inflation. Energy shocks have historically resulted in global growth slowdowns, if not pullbacks, so policymakers will find themselves in the difficult position of trying to restrain inflation without tipping economies into recession. Despite the challenging macroeconomic and geopolitical environment, policymakers remained focused on corralling inflation, although investors appeared to have expected varying degrees of action from the central banks. The Fed was expected to be the most hawkish developed market central bank and the European Central Bank less so, given the growth-depleting effects on Europe's economy stemming from the invasion, while the Bank of Japan remained on the monetary sidelines, leading to a dramatic weakening of the yen.
Against an environment of still-tight labor markets, tighter global financial conditions and volatile materials prices, investor anxiety appeared to have increased over the potential that corporate profit margins may be past peak for this cycle. That said, tentative signs that supply chain bottlenecks (particularly semiconductors) may be easing, low levels of unemployment across developed markets and somewhat easier prices for non-energy raw materials were supportive factors for the macroeconomic backdrop.
Factors Affecting Performance
Relative to the JPMorgan Government Bond Index Emerging Markets Global Diversified, the fund’s underweight allocation to Russian ruble-denominated bonds contributed to performance as these assets came under significant pressure following the outbreak of the war in Ukraine. Additionally, an underweight exposure to the Russian yield curve(y) strengthened relative returns. Currency allocation and hedging also benefited the fund’s relative performance, particularly its allocation to the US dollar, for which the benchmark has no exposure, and underweight allocations to both the Egyptian pound and Turkish lira.
5

Management Review - continued
Conversely, the fund’s overweight exposure to both the US and Mexican yield curves, and underweight exposure to the Turkish yield curve, held back relative performance. Underweight exposures to bonds denominated in Thai baht, Malaysian ringgit and Indonesian rupiah further weighed on the fund’s relative returns.
Respectfully,
Portfolio Manager(s)
Ward Brown and Matt Ryan
(y) A yield curve graphically depicts the yields of different maturity bonds of the same credit quality and type; a normal yield curve is upward sloping, with short-term rates lower than long-term rates.
The views expressed in this report are those of the portfolio manager(s) only through the end of the period of the report as stated on the cover and do not necessarily reflect the views of MFS or any other person in the MFS organization. These views are subject to change at any time based on market or other conditions, and MFS disclaims any responsibility to update such views. These views may not be relied upon as investment advice or an indication of trading intent on behalf of any MFS portfolio. References to specific securities are not recommendations of such securities, and may not be representative of any MFS portfolio’s current or future investments.
6

Performance Summary THROUGH 10/31/22
The following chart illustrates a representative class of the fund’s historical performance in comparison to its benchmark(s). Performance results include the deduction of the maximum applicable sales charge and reflect the percentage change in net asset value, including reinvestment of dividends and capital gains distributions. The performance of other share classes will be greater than or less than that of the class depicted below. Benchmarks are unmanaged and may not be invested in directly. Benchmark returns do not reflect sales charges, commissions or expenses. (See Notes to Performance Summary.)
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or higher than quoted. The performance shown does not reflect the deduction of taxes, if any, that a shareholder would pay on fund distributions or the redemption of fund shares.
Growth of a Hypothetical $10,000 Investment
7

Performance Summary  - continued
Total Returns through 10/31/22
Average annual without sales charge
Share Class Class Inception Date 1-yr 5-yr 10-yr Life (t)
A 9/15/11 (17.29)% (2.53)% (2.38)% N/A
B 9/15/11 (17.89)% (3.25)% (3.11)% N/A
C 9/15/11 (17.76)% (3.25)% (3.11)% N/A
I 9/15/11 (17.15)% (2.33)% (2.19)% N/A
R1 9/15/11 (17.79)% (3.16)% (3.05)% N/A
R2 9/15/11 (17.47)% (2.76)% (2.62)% N/A
R3 9/15/11 (17.22)% (2.53)% (2.35)% N/A
R4 9/15/11 (16.98)% (2.19)% (2.09)% N/A
R6 12/03/12 (16.83)% (2.18)% N/A (2.17)%
Comparative benchmark(s)
         
JPMorgan Government Bond Index Emerging Markets Global Diversified (f) (20.27)% (3.54)% (2.56)% N/A
Average annual with sales charge
         
A
With Initial Sales Charge (4.25%)
(20.81)% (3.37)% (2.81)% N/A
B
With CDSC (Declining over six years from 4% to 0%) (v)
(21.05)% (3.57)% (3.11)% N/A
C
With CDSC (1% for 12 months) (v)
(18.55)% (3.25)% (3.11)% N/A
CDSC – Contingent Deferred Sales Charge.
Class I, R1, R2, R3, R4, and R6 shares do not have a sales charge.
(f) Source: FactSet Research Systems Inc.
(t) For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.)
(v) Assuming redemption at the end of the applicable period.
Benchmark Definition(s)
JPMorgan Government Bond Index Emerging Markets Global Diversified – a market capitalization weighted index that is designed to measure the performance of local currency government bonds issued in emerging markets. The index includes only the countries which give access to their capital market to foreign investors; it therefore excludes China, India, and Thailand. Individual country weights in the index are limited to 10% in order for the index to remain fully diversified.
It is not possible to invest directly in an index.
8

Performance Summary  - continued
Notes to Performance Summary
Average annual total return represents the average annual change in value for each share class for the periods presented. Life returns are presented where the share class has less than 10 years of performance history and represent the average annual total return from the class inception date to the stated period end date. As the fund's share classes may have different inception dates, the life returns may represent different time periods and may not be comparable. As a result, no comparative benchmark performance information is provided for life periods.
Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers the fund's performance results would be less favorable. Please see the prospectus and financial statements for complete details.
Performance results do not include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles and may differ from amounts reported in the financial highlights.
From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower.
9

Expense Table
Fund expenses borne by the shareholders during the period,
May 1, 2022 through October 31, 2022
As a shareholder of the fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchase or redemption payments, and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period May 1, 2022 through October 31, 2022.
Actual Expenses
The first line for each share class in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the following table provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
10

Expense Table - continued
Share
Class
  Annualized
Expense
Ratio
Beginning
Account Value
5/01/22
Ending
Account Value
10/31/22
Expenses
Paid During
Period (p)
5/01/22-10/31/22
A Actual 1.10% $1,000.00 $919.87 $5.32
Hypothetical (h) 1.10% $1,000.00 $1,019.66 $5.60
B Actual 1.85% $1,000.00 $916.56 $8.94
Hypothetical (h) 1.85% $1,000.00 $1,015.88 $9.40
C Actual 1.85% $1,000.00 $916.54 $8.94
Hypothetical (h) 1.85% $1,000.00 $1,015.88 $9.40
I Actual 0.85% $1,000.00 $918.97 $4.11
Hypothetical (h) 0.85% $1,000.00 $1,020.92 $4.33
R1 Actual 1.85% $1,000.00 $917.11 $8.94
Hypothetical (h) 1.85% $1,000.00 $1,015.88 $9.40
R2 Actual 1.35% $1,000.00 $918.90 $6.53
Hypothetical (h) 1.35% $1,000.00 $1,018.40 $6.87
R3 Actual 1.10% $1,000.00 $920.24 $5.32
Hypothetical (h) 1.10% $1,000.00 $1,019.66 $5.60
R4 Actual 0.85% $1,000.00 $921.61 $4.12
Hypothetical (h) 0.85% $1,000.00 $1,020.92 $4.33
R6 Actual 0.76% $1,000.00 $921.67 $3.68
Hypothetical (h) 0.76% $1,000.00 $1,021.37 $3.87
(h) 5% class return per year before expenses.
(p) “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).  Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher.
11

Portfolio of Investments
10/31/22
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 – 78.9%
Bermuda – 0.3%
Government of Bermuda, 5%, 7/15/2032 (n)   $ 1,409,000 $1,305,489
Brazil – 10.2%
Federative Republic of Brazil, 0%, 1/01/2024   BRL 72,487,000 $12,188,453
Federative Republic of Brazil, 10%, 1/01/2025     99,537,000 18,633,295
Federative Republic of Brazil, 10%, 1/01/2027     65,169,000 11,942,408
        $42,764,156
Chile – 4.7%
AES Gener S.A., 6.35% to 4/07/2025, FLR (CMT - 5yr. + 4.917%) to 4/07/2030, FLR (CMT - 5yr. + 5.167%) to 4/07/2045, FLR (CMT - 5yr. + 5.917%) to 10/07/2079 (n)   $ 936,000 $760,457
Republic of Chile, 2.3%, 10/01/2028 (n)   CLP 5,215,000,000 4,354,868
Republic of Chile, 5%, 10/01/2028 (n)     6,375,000,000 6,213,243
Republic of Chile, 4.7%, 9/01/2030     6,645,000,000 6,255,168
Republic of Chile, 7%, 5/01/2034     2,040,000,000 2,234,045
        $19,817,781
China – 6.6%
China Development Bank, 3.45%, 9/20/2029   CNY 84,810,000 $12,082,585
People's Republic of China, 2.75%, 2/17/2032     59,650,000 8,189,299
Republic of China, 3.25%, 6/06/2026     53,270,000 7,535,866
        $27,807,750
Colombia – 4.1%
Empresas Publicas de Medellin E.S.P., 8.375%, 11/08/2027 (n)   COP 4,009,000,000 $576,870
Republic of Colombia, 7.5%, 8/26/2026     21,450,800,000 3,589,269
Republic of Colombia, 5.75%, 11/03/2027     76,766,000,000 11,252,008
Republic of Colombia, “B”, 7.75%, 9/18/2030     12,650,000,000 1,831,164
        $17,249,311
Czech Republic – 4.1%
Czech Republic, 2.75%, 7/23/2029   CZK 59,400,000 $1,963,768
Czech Republic, 2%, 10/13/2033     519,860,000 14,427,962
PPF Telecom Group B.V., 3.25%, 9/29/2027   EUR 1,000,000 849,401
        $17,241,131
Egypt – 0.2%
Energean PLC, 6.5%, 4/30/2027 (n)   $ 1,114,000 $984,197
12

Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
Guatemala – 0.6%
Banco Industrial S.A., 4.875% to 1/29/2026, FLR (CMT - 5yr. + 4.442%) to 1/29/2031 (n)   $ 1,064,000 $947,004
Central America Bottling Co., 5.25%, 4/27/2029 (n)     1,245,000 1,095,142
Investment Energy Resources Ltd., 6.25%, 4/26/2029 (n)     797,000 670,604
        $2,712,750
Hungary – 2.3%
Republic of Hungary, 3%, 10/27/2027   HUF 1,635,400,000 $2,715,220
Republic of Hungary, 2.25%, 4/20/2033     5,444,230,000 6,732,553
        $9,447,773
India – 0.6%
JSW Infrastructure Ltd., 4.95%, 1/21/2029 (n)   $ 794,000 $590,588
Shriram Transport Finance Co. Ltd., 5.1%, 7/16/2023     384,000 374,185
Shriram Transport Finance Co. Ltd., 4.4%, 3/13/2024 (n)     1,720,000 1,601,268
        $2,566,041
Indonesia – 6.2%
Medco Laurel Tree Pte. Ltd., 6.95%, 11/12/2028 (n)   $ 756,000 $579,872
Republic of Indonesia, 9%, 3/15/2029   IDR 36,679,000,000 2,533,890
Republic of Indonesia, 7%, 9/15/2030     115,476,000,000 7,169,618
Republic of Indonesia, 6.375%, 4/15/2032     9,995,000,000 591,152
Republic of Indonesia, 7.5%, 8/15/2032     96,643,000,000 6,154,357
Republic of Indonesia, 4.65%, 9/20/2032   $ 1,198,000 1,107,719
Republic of Indonesia, 7.5%, 5/15/2038   IDR 71,483,000,000 4,545,398
Republic of Indonesia, 8.375%, 4/15/2039     32,266,000,000 2,184,924
Republic of Indonesia, 7.125%, 6/15/2042     19,893,000,000 1,210,964
        $26,077,894
Israel – 0.3%
Energean Israel Finance Ltd., 4.875%, 3/30/2026   $ 1,250,000 $1,121,875
Malaysia – 4.2%
Government of Malaysia, 3.733%, 6/15/2028   MYR 9,985,000 $2,045,438
Government of Malaysia, 4.232%, 6/30/2031     31,439,000 6,516,206
Government of Malaysia, 3.582%, 7/15/2032     16,125,000 3,199,660
Government of Malaysia, 3.757%, 5/22/2040     10,520,000 1,920,749
Government of Malaysia, 4.065%, 6/15/2050     20,945,000 3,831,012
        $17,513,065
Mexico – 8.7%
Electricidad Firme de Mexico, 4.9%, 11/20/2026 (n)   $ 1,096,000 $871,354
Grupo Axo S.A.P.I. de C.V., 5.75%, 6/08/2026 (n)     764,000 606,028
Grupo Axo S.A.P.I. de C.V., 5.75%, 6/08/2026     400,000 317,292
Petroleos Mexicanos, 7.47%, 11/12/2026   MXN 10,559,900 443,534
13

Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
Mexico – continued
Red de Carreteras de Occidente SAPIB de C.V., 9%, 6/10/2028 (z)   MXN 11,784,000 $587,283
United Mexican States, 10%, 12/05/2024     23,970,000 1,204,163
United Mexican States, 5.75%, 3/05/2026     70,850,000 3,152,811
United Mexican States, 7.5%, 6/03/2027     54,300,000 2,507,511
United Mexican States, 8.5%, 5/31/2029     261,270,000 12,341,413
United Mexican States, 7.75%, 5/29/2031     149,500,000 6,641,351
United Mexican States, 8%, 11/07/2047     194,800,000 8,044,670
        $36,717,410
Peru – 3.4%
Banco de Credito del Peru, 4.65%, 9/17/2024 (z)   PEN 10,403,000 $2,423,888
Peru LNG, 5.375%, 3/22/2030   $ 1,360,000 1,069,368
Republic of Peru, 6.95%, 8/12/2031   PEN 17,840,000 4,114,598
Republic of Peru, 6.9%, 8/12/2037     27,002,000 5,814,348
San Miguel Industrias PET S.A., 3.5%, 8/02/2028 (n)   $ 945,000 756,418
        $14,178,620
Poland – 4.7%
Can-Pack S.A./Eastern PA Land Investment Holding LLC, 3.875%, 11/15/2029 (n)   $ 1,113,000 $883,444
Republic of Poland, 2.75%, 4/25/2028   PLN 5,206,000 833,117
Republic of Poland, 1.25%, 10/25/2030     49,103,000 6,136,409
Republic of Poland, 1.75%, 4/25/2032     91,788,000 11,105,077
Synthos S.A., 2.5%, 6/07/2028 (n)   EUR 921,000 683,453
        $19,641,500
Romania – 2.4%
Republic of Romania, 4.75%, 2/24/2025   RON 56,000,000 $10,267,512
Russia – 0.5%
Russian Federation, 7.75%, 9/16/2026 (a)(u)   RUB 354,632,000 $2,036,062
South Africa – 8.6%
Eskom Holdings SOC Ltd. (Republic of South Africa), 7.85%, 4/02/2026   ZAR 36,000,000 $1,843,025
Republic of South Africa, 10.5%, 12/21/2026     18,488,000 1,049,671
Republic of South Africa, 8%, 1/31/2030     331,754,000 15,485,315
Republic of South Africa, 7%, 2/28/2031     78,800,000 3,322,094
Republic of South Africa, 8.875%, 2/28/2035     123,727,000 5,488,276
Republic of South Africa, 9%, 1/31/2040     182,916,000 7,837,941
Transnet SOC Ltd. (Republic of South Africa), 13.5%, 4/18/2028     14,800,000 885,200
        $35,911,522
14

Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
Sri Lanka – 0.1%
Republic of Sri Lanka, 6.75%, 4/18/2028 (a)   $ 1,400,000 $308,441
Republic of Sri Lanka, 7.85%, 3/14/2029 (a)(n)     972,000 215,124
        $523,565
Thailand – 4.9%
Kingdom of Thailand, 3.775%, 6/25/2032   THB 461,410,000 $12,660,367
Kingdom of Thailand, 1.6%, 6/17/2035     100,242,000 2,092,710
Kingdom of Thailand, 3.3%, 6/17/2038     84,884,000 2,085,603
Kingdom of Thailand, 2%, 6/17/2042     192,332,000 3,713,518
        $20,552,198
Uruguay – 1.2%
Oriental Republic of Uruguay, 8.5%, 3/15/2028   UYU 218,912,000 $4,755,178
Oriental Republic of Uruguay, 8.25%, 5/21/2031     6,802,000 138,616
        $4,893,794
Total Bonds (Identified Cost, $397,493,832)   $331,331,396
Investment Companies (h) – 18.1%
Money Market Funds – 18.1%  
MFS Institutional Money Market Portfolio, 3.02% (v) (Identified Cost, $75,800,369)     75,804,189 $75,804,189
Other Assets, Less Liabilities – 3.0%   12,614,086
Net Assets – 100.0%   $419,749,671
    
(a) Non-income producing security.
(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 $75,804,189 and $331,331,396, 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 $23,695,423, representing 5.6% of net assets.
(u) The security was valued using significant unobservable inputs and is considered level 3 under the fair value hierarchy. For further information about the fund’s level 3 holdings, please see Note 2 in the Notes to Financial Statements.
(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.
(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:
    
15

Portfolio of Investments – continued
Restricted Securities Acquisition
Date
Cost Value
Banco de Credito del Peru, 4.65%, 9/17/2024 9/12/19 $3,112,248 $2,423,888
Red de Carreteras de Occidente SAPIB de C.V., 9%, 6/10/2028 12/10/14 798,478 587,283
Total Restricted Securities     $3,011,171
% of Net assets     0.7%
    
The following abbreviations are used in this report and are defined:
BZDIOVRA Brazil Interbank Deposit Rate
CMT Constant Maturity Treasury
FLR Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted.
KLIBOR Kuala Lumpur Interbank Offered Rate
THBFIX Thai Baht Floating Rate Fixed
TIIE Interbank Equilibrium Interest Rate
USA-CPI-U Consumer Price Index - Urban Consumers
    
Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below:
AUD Australian Dollar
BRL Brazilian Real
CAD Canadian Dollar
CLP Chilean Peso
CNH Chinese Yuan Renminbi (Offshore)
CNY China Yuan Renminbi
COP Colombian Peso
CZK Czech Koruna
EUR Euro
HUF Hungarian Forint
IDR Indonesian Rupiah
KRW South Korean Won
MXN Mexican Peso
MYR Malaysian Ringgit
PEN Peruvian Nuevo Sol
PHP Philippine Peso
PLN Polish Zloty
RON Romanian New Leu
RUB Russian Ruble
SGD Singapore Dollar
THB Thai Baht
TRY Turkish Lira
TWD Taiwan Dollar
UYU Uruguayan Peso
ZAR South African Rand
16

Portfolio of Investments – continued
Derivative Contracts at 10/31/22
Forward Foreign Currency Exchange Contracts
Currency
Purchased
Currency
Sold
Counterparty Settlement
Date
Unrealized
Appreciation
(Depreciation)
Asset Derivatives
BRL 35,289,000 USD 6,682,890 Banco Santander S.A. 11/03/2022 $148,782
BRL 10,079,411 USD 1,862,779 Citibank N.A. 11/03/2022 88,516
BRL 10,077,356 USD 1,906,925 Goldman Sachs International 11/03/2022 43,971
BRL 17,048,531 USD 3,152,815 JPMorgan Chase Bank N.A. 2/02/2023 84,269
BRL 47,866,724 USD 9,107,769 JPMorgan Chase Bank N.A. 11/03/2022 158,850
CZK 10,700,097 USD 423,221 Brown Brothers Harriman 1/20/2023 6,763
EUR 4,927,532 USD 4,851,583 Morgan Stanley Capital Services, Inc. 1/20/2023 50,565
HUF 713,706,084 USD 1,653,378 Goldman Sachs International 1/20/2023 30,345
HUF 95,190,536 USD 218,003 UBS AG 1/20/2023 6,564
KRW 9,047,705,473 USD 6,332,824 Citibank N.A. 11/07/2022 18,544
MXN 242,085,794 USD 11,894,377 BNP Paribas S.A. 1/20/2023 152,312
MYR 2,149,187 USD 454,402 Barclays Bank PLC 11/28/2022 531
PLN 3,256,126 USD 652,426 HSBC Bank 1/20/2023 19,666
RON 23,002,895 USD 4,519,810 JPMorgan Chase Bank N.A. 1/20/2023 74,870
SGD 12,007,876 USD 8,431,729 State Street Bank Corp. 1/20/2023 56,162
TRY 65,842,279 USD 3,253,560 Goldman Sachs International 1/20/2023 66,482
USD 2,443,576 CNH 17,500,649 JPMorgan Chase Bank N.A. 1/20/2023 46,595
USD 414,906 CNH 2,969,387 State Street Bank Corp. 1/20/2023 8,203
USD 5,145,305 COP 25,326,219,135 Goldman Sachs International 11/25/2022 38,092
USD 811,319 IDR 12,423,975,376 Barclays Bank PLC 11/09/2022 14,865
USD 4,376,671 KRW 5,734,104,311 Barclays Bank PLC 11/07/2022 351,406
USD 2,560,347 KRW 3,313,601,162 Citibank N.A. 11/07/2022 234,243
USD 2,984,624 MYR 13,452,766 Barclays Bank PLC 11/28/2022 136,981
USD 5,014,021 PEN 19,861,538 Citibank N.A. 11/07/2022 29,294
USD 8,916,327 TWD 274,280,218 Merrill Lynch International 11/08/2022 401,017
USD 236,777 ZAR 4,350,885 Citibank N.A. 1/20/2023 1,312
            $2,269,200
Liability Derivatives
CLP 276,405,093 USD 296,299 Morgan Stanley Capital Services, Inc. 11/08/2022 $(3,504)
CNH 29,569,000 USD 4,093,813 Barclays Bank PLC 1/20/2023 (43,887)
CZK 23,156,260 USD 931,370 Goldman Sachs International 1/20/2023 (836)
EUR 1,854,634 USD 1,871,552 HSBC Bank 1/20/2023 (26,472)
IDR 252,132,283,568 USD 16,865,723 Barclays Bank PLC 11/09/2022 (702,465)
IDR 32,343,268,670 USD 2,123,098 JPMorgan Chase Bank N.A. 11/09/2022 (49,692)
MYR 104,971,840 USD 23,485,136 Barclays Bank PLC 11/28/2022 (1,264,998)
PEN 3,147,206 USD 809,050 Banco Santander S.A. 11/07/2022 (19,184)
17

Portfolio of Investments – continued
Forward Foreign Currency Exchange Contracts - continued
Currency
Purchased
Currency
Sold
Counterparty Settlement
Date
Unrealized
Appreciation
(Depreciation)
Liability Derivatives - continued
PEN 1,293,324 USD 332,120 Goldman Sachs International 11/07/2022 $(7,529)
PHP 28,667,590 USD 503,444 Citibank N.A. 11/22/2022 (8,896)
PLN 3,931,427 USD 817,268 HSBC Bank 1/20/2023 (5,788)
SGD 2,909,364 USD 2,072,582 Citibank N.A. 1/20/2023 (16,068)
SGD 2,584,549 USD 1,835,930 HSBC Bank 1/20/2023 (9,015)
THB 973,376,499 USD 26,028,654 JPMorgan Chase Bank N.A. 1/11/2023 (286,126)
USD 8,133,809 AUD 13,047,286 State Street Bank Corp. 1/20/2023 (234,381)
USD 6,712,764 BRL 35,289,000 Banco Santander S.A. 11/03/2022 (118,908)
USD 1,306,644 BRL 6,998,060 Citibank N.A. 2/02/2023 (22,110)
USD 1,917,331 BRL 10,079,411 Citibank N.A. 11/03/2022 (33,963)
USD 1,871,172 BRL 10,077,356 Goldman Sachs International 11/03/2022 (79,725)
USD 9,074,488 BRL 47,866,723 JPMorgan Chase Bank N.A. 11/03/2022 (192,132)
USD 7,410,861 CAD 10,187,736 Morgan Stanley Capital Services, Inc. 1/20/2023 (75,342)
USD 2,122,654 CLP 2,108,857,000 Barclays Bank PLC 11/08/2022 (111,245)
USD 4,804,647 CLP 4,608,669,701 Citibank N.A. 11/08/2022 (77,289)
USD 214,012 CZK 5,373,837 Deutsche Bank AG 1/20/2023 (1,936)
USD 664,530 IDR 10,396,435,080 Citibank N.A. 11/09/2022 (1,947)
USD 6,348,911 KRW 9,047,705,473 Citibank N.A. 2/02/2023 (20,694)
USD 693,584 MXN 13,957,280 Goldman Sachs International 1/20/2023 (959)
USD 410,967 RON 2,086,315 Goldman Sachs International 1/20/2023 (5,760)
USD 867,841 RON 4,423,934 Morgan Stanley Capital Services, Inc. 1/20/2023 (15,811)
USD 658,406 THB 24,914,094 JPMorgan Chase Bank N.A. 1/11/2023 (487)
            $(3,437,149)
    
Futures Contracts
Description Long/
Short
Currency Contracts Notional
Amount
Expiration
Date
Value/Unrealized
Appreciation
(Depreciation)
Asset Derivatives
Interest Rate Futures    
Euro-Bund 10 yr Short EUR 19 $2,599,452 December – 2022 $49,384
Liability Derivatives
Interest Rate Futures    
U.S. Treasury Ultra Note 10 yr Long USD 110 $12,758,281 December – 2022 $(1,042,782)
18

Portfolio of Investments – continued
Cleared Swap Agreements
Maturity
Date
Notional
Amount
Counterparty Cash Flows
to Receive/
Frequency
Cash Flows
to Pay/
Frequency
Unrealized
Appreciation
(Depreciation)
  Net Unamortized
Upfront Payments
(Receipts)
  Value
Asset Derivatives          
Interest Rate Swaps          
3/16/27 CNY 30,000,000 centrally cleared 2.43% / Quarterly 1 week CNY-Fixing Repo / Quarterly $16,579   $—   $16,579
4/13/32 USD 2,916,000 centrally cleared 3.116% / At Maturity USA-CPI-U / At Maturity 11,630     11,630
            $28,209   $—   $28,209
Liability Derivatives          
Interest Rate Swaps          
1/02/24 BRL 26,455,000 centrally cleared 7.24% / At Maturity Daily BZDIOVRA / Daily $(424,791)   $—   $(424,791)
1/02/24 BRL 30,350,000 centrally cleared 11.545% / At Maturity Daily BZDIOVRA / Daily (107,158)     (107,158)
1/02/24 BRL 38,149,000 centrally cleared 12.09% / At Maturity Daily BZDIOVRA / Daily (85,330)     (85,330)
1/02/24 BRL 51,356,000 centrally cleared 12.045% / At Maturity Daily BZDIOVRA / Daily (121,155)     (121,155)
8/17/27 CNY 48,000,000 centrally cleared 2.26% / Quarterly 1 week CNY-Fixing Repo / Quarterly (34,690)     (34,690)
3/28/25 MXN 36,098,000 centrally cleared 6.24% / 28 Days 28 day TIIE / 28 days (143,903)     (143,903)
4/09/25 MXN 144,884,000 centrally cleared 6.27% / 28 Days 28 day TIIE / 28 days (568,505)     (568,505)
4/11/25 MXN 73,866,000 centrally cleared 5.98% / 28 Days 28 day TIIE / 28 days (313,061)     (313,061)
6/18/27 MXN 52,000,000 centrally cleared 8.98% / 28 Days 28 day TIIE / 28 days (34,046)     (34,046)
7/27/32 THB 200,000,000 centrally cleared 2.47% / Quarterly 6-Month THBFIX / Semi-annually (276,800)     (276,800)
5/12/32 USD 4,177,000 centrally cleared 2.921% / At Maturity USA-CPI-U / At Maturity (34,358)     (34,358)
            $(2,143,797)   $—   $(2,143,797)
    
19

Portfolio of Investments – continued
Uncleared Swap Agreements
Maturity
Date
Notional
Amount
Counterparty Cash Flows
to Receive/
Frequency
Cash Flows
to Pay/
Frequency
Unrealized
Appreciation
(Depreciation)
  Net Unamortized
Upfront Payments
(Receipts)
  Value
Liability Derivatives          
Interest Rate Swaps          
7/07/27 MYR 36,564,000 JPMorgan Chase Bank N.A. 3.65% / Quarterly 3-Month KLIBOR / Quarterly $(168,829)   $—   $(168,829)
At October 31, 2022, the fund had cash collateral of $2,720,473 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statement of Assets and Liabilities are comprised of cash collateral.
See Notes to Financial Statements
20

Financial Statements
Statement of Assets and Liabilities
At 10/31/22
This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.
Assets  
Investments in unaffiliated issuers, at value (identified cost, $397,493,832) $331,331,396
Investments in affiliated issuers, at value (identified cost, $75,800,369) 75,804,189
Cash 1,448,559
Foreign currency, at value (identified cost, $7,627) 7,498
Restricted cash for  
Forward foreign currency exchange contracts 1,240,000
Deposits with brokers for  
Cleared swaps 1,067,057
Futures contracts 413,416
Receivables for  
Net daily variation margin on open cleared swap agreements 4,273
Forward foreign currency exchange contracts 2,269,200
Fund shares sold 3,409,229
Interest 6,802,989
Receivable from investment adviser 95,848
Other assets 2,028
Total assets $423,895,682
Liabilities  
Payables for  
Distributions $15,008
Forward foreign currency exchange contracts 3,437,149
Net daily variation margin on open futures contracts 53,787
Fund shares reacquired 22,588
Uncleared swaps, at value 168,829
Payable to affiliates  
Administrative services fee 786
Shareholder servicing costs 20,789
Distribution and service fees 195
Payable for independent Trustees' compensation 13
Deferred country tax expense payable 116,545
Accrued expenses and other liabilities 310,322
Total liabilities $4,146,011
Net assets $419,749,671
21

Statement of Assets and Liabilities – continued
Net assets consist of  
Paid-in capital $542,760,946
Total distributable earnings (loss) (123,011,275)
Net assets $419,749,671
Shares of beneficial interest outstanding 85,647,634
    
  Net assets Shares
outstanding
Net asset value
per share (a)
Class A $3,397,611 693,140 $4.90
Class B 79,836 16,269 4.91
Class C 732,532 149,405 4.90
Class I 49,752,907 10,194,410 4.88
Class R1 59,346 12,025 4.93
Class R2 49,600 10,109 4.91
Class R3 123,160 25,045 4.92
Class R4 109,058 22,128 4.93
Class R6 365,445,621 74,525,103 4.90
    
(a) Maximum offering price per share was equal to the net asset value per share for all share classes, except for Class A, for which the maximum offering price per share was $5.12 [100 / 95.75 x $4.90]. On sales of $100,000 or more, the maximum offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A, Class B, and Class C shares. Redemption price per share was equal to the net asset value per share for Classes I, R1, R2, R3, R4, and R6.
See Notes to Financial Statements
22

Financial Statements
Statement of Operations
Year ended 10/31/22
This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.
Net investment income (loss)  
Income  
Interest $24,777,346
Dividends from affiliated issuers 501,803
Other 2,922
Foreign taxes withheld (368,000)
Total investment income $24,914,071
Expenses  
Management fee $3,313,060
Distribution and service fees 19,326
Shareholder servicing costs 50,999
Administrative services fee 76,890
Independent Trustees' compensation 8,419
Custodian fee 285,116
Shareholder communications 22,814
Audit and tax fees 86,915
Legal fees 1,869
Miscellaneous 264,850
Total expenses $4,130,258
Reduction of expenses by investment adviser (729,499)
Net expenses $3,400,759
Net investment income (loss) $21,513,312
23

Statement of Operations – continued
Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)  
Unaffiliated issuers (net of $60,643 country tax) $(36,566,621)
Affiliated issuers (3,911)
Futures contracts 868,326
Swap agreements (2,011,462)
Forward foreign currency exchange contracts (7,952,272)
Foreign currency (1,145,024)
Net realized gain (loss) $(46,810,964)
Change in unrealized appreciation or depreciation  
Unaffiliated issuers (net of $198,702 decrease in deferred country tax) $(52,563,689)
Affiliated issuers 3,820
Futures contracts (1,341,426)
Swap agreements (627,404)
Forward foreign currency exchange contracts (1,434,415)
Translation of assets and liabilities in foreign currencies (166,726)
Net unrealized gain (loss) $(56,129,840)
Net realized and unrealized gain (loss) $(102,940,804)
Change in net assets from operations $(81,427,492)
See Notes to Financial Statements
24

Financial Statements
Statements of Changes in Net Assets
These statements describe the increases and/or decreases in net assets resulting from operations, any distributions, and any shareholder transactions.
  Year ended
  10/31/22 10/31/21
Change in net assets    
From operations    
Net investment income (loss) $21,513,312 $17,922,639
Net realized gain (loss) (46,810,964) 2,079,495
Net unrealized gain (loss) (56,129,840) (14,653,218)
Change in net assets from operations $(81,427,492) $5,348,916
Distributions to shareholders $(8,055,668) $(18,004,163)
Tax return of capital distributions to shareholders $(13,366,391) $—
Change in net assets from fund share transactions $74,597,679 $95,410,769
Total change in net assets $(28,251,872) $82,755,522
Net assets    
At beginning of period 448,001,543 365,246,021
At end of period $419,749,671 $448,001,543
See Notes to Financial Statements
25

Financial Statements
Financial Highlights
The financial highlights table is intended to help you understand the fund's financial performance for the past 5 years. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Class A  Year ended
  10/31/22 10/31/21 10/31/20 10/31/19 10/31/18
Net asset value, beginning of period $6.20 $6.34 $6.94 $6.20 $6.99
Income (loss) from investment operations
Net investment income (loss) (d) $0.25 $0.26 $0.27 $0.33 $0.34
Net realized and unrealized gain (loss) (1.30) (0.14) (0.59) 0.72 (0.78)
 Total from investment operations  $(1.05)  $0.12  $(0.32)  $1.05  $(0.44)
Less distributions declared to shareholders
From net investment income $(0.09) $(0.26) $(0.14) $(0.18) $(0.15)
From tax return of capital (0.16) (0.14) (0.13) (0.20)
 Total distributions declared to shareholders  $(0.25)  $(0.26)  $(0.28)  $(0.31)  $(0.35)
 Net asset value, end of period (x)  $4.90  $6.20  $6.34  $6.94  $6.20
 Total return (%) (r)(s)(t)(x) (17.29) 1.75 (4.54) 17.31 (6.65)
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 1.27 1.36 1.44 1.40 1.44
Expenses after expense reductions 1.10 1.10 1.10 1.10 1.11
Net investment income (loss) 4.54 3.90 4.22 5.00 4.89
Portfolio turnover 64 82 78 136 95
Net assets at end of period (000 omitted)  $3,398  $3,934  $1,916  $2,350  $2,056
See Notes to Financial Statements
26

Financial Highlights – continued
Class B  Year ended
  10/31/22 10/31/21 10/31/20 10/31/19 10/31/18
Net asset value, beginning of period $6.20 $6.35 $6.95 $6.20 $7.00
Income (loss) from investment operations
Net investment income (loss) (d) $0.21 $0.21 $0.23 $0.28 $0.29
Net realized and unrealized gain (loss) (1.29) (0.15) (0.60) 0.73 (0.79)
 Total from investment operations  $(1.08)  $0.06  $(0.37)  $1.01  $(0.50)
Less distributions declared to shareholders
From net investment income $(0.08) $(0.21) $(0.12) $(0.15) $(0.13)
From tax return of capital (0.13) (0.11) (0.11) (0.17)
 Total distributions declared to shareholders  $(0.21)  $(0.21)  $(0.23)  $(0.26)  $(0.30)
 Net asset value, end of period (x)  $4.91  $6.20  $6.35  $6.95  $6.20
 Total return (%) (r)(s)(t)(x) (17.76) 0.83 (5.25) 16.62 (7.48)
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 2.02 2.11 2.19 2.15 2.19
Expenses after expense reductions 1.85 1.85 1.85 1.85 1.86
Net investment income (loss) 3.78 3.20 3.48 4.28 4.17
Portfolio turnover 64 82 78 136 95
Net assets at end of period (000 omitted)  $80  $101  $113  $131  $115
    
Class C  Year ended
  10/31/22 10/31/21 10/31/20 10/31/19 10/31/18
Net asset value, beginning of period $6.20 $6.34 $6.94 $6.20 $7.00
Income (loss) from investment operations
Net investment income (loss) (d) $0.21 $0.21 $0.22 $0.28 $0.28
Net realized and unrealized gain (loss) (1.30) (0.14) (0.59) 0.72 (0.78)
 Total from investment operations  $(1.09)  $0.07  $(0.37)  $1.00  $(0.50)
Less distributions declared to shareholders
From net investment income $(0.08) $(0.21) $(0.12) $(0.15) $(0.13)
From tax return of capital (0.13) (0.11) (0.11) (0.17)
 Total distributions declared to shareholders  $(0.21)  $(0.21)  $(0.23)  $(0.26)  $(0.30)
 Net asset value, end of period (x)  $4.90  $6.20  $6.34  $6.94  $6.20
 Total return (%) (r)(s)(t)(x) (17.93) 0.99 (5.26) 16.45 (7.48)
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 2.02 2.11 2.19 2.15 2.19
Expenses after expense reductions 1.85 1.85 1.85 1.85 1.86
Net investment income (loss) 3.78 3.19 3.46 4.18 4.12
Portfolio turnover 64 82 78 136 95
Net assets at end of period (000 omitted)  $733  $1,003  $1,093  $1,268  $563
See Notes to Financial Statements
27

Financial Highlights – continued
Class I  Year ended
  10/31/22 10/31/21 10/31/20 10/31/19 10/31/18
Net asset value, beginning of period $6.18 $6.32 $6.92 $6.18 $6.98
Income (loss) from investment operations
Net investment income (loss) (d) $0.26 $0.27 $0.29 $0.35 $0.34
Net realized and unrealized gain (loss) (1.29) (0.13) (0.59) 0.72 (0.77)
 Total from investment operations  $(1.03)  $0.14  $(0.30)  $1.07  $(0.43)
Less distributions declared to shareholders
From net investment income $(0.10) $(0.28) $(0.15) $(0.19) $(0.15)
From tax return of capital (0.17) (0.15) (0.14) (0.22)
 Total distributions declared to shareholders  $(0.27)  $(0.28)  $(0.30)  $(0.33)  $(0.37)
 Net asset value, end of period (x)  $4.88  $6.18  $6.32  $6.92  $6.18
 Total return (%) (r)(s)(t)(x) (17.15) 2.00 (4.33) 17.64 (6.58)
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 1.04 1.11 1.18 1.15 1.19
Expenses after expense reductions 0.85 0.85 0.85 0.85 0.86
Net investment income (loss) 4.84 4.18 4.48 5.21 5.04
Portfolio turnover 64 82 78 136 95
Net assets at end of period (000 omitted)  $49,753  $13,991  $15,055  $24,544  $13,417
    
Class R1  Year ended
  10/31/22 10/31/21 10/31/20 10/31/19 10/31/18
Net asset value, beginning of period $6.24 $6.35 $6.95 $6.21 $7.01
Income (loss) from investment operations
Net investment income (loss) (d) $0.21 $0.19 $0.22 $0.29 $0.29
Net realized and unrealized gain (loss) (1.31) (0.09)(g) (0.59) 0.72 (0.79)
 Total from investment operations  $(1.10)  $0.10  $(0.37)  $1.01  $(0.50)
Less distributions declared to shareholders
From net investment income $(0.08) $(0.21) $(0.12) $(0.16) $(0.13)
From tax return of capital (0.13) (0.11) (0.11) (0.17)
 Total distributions declared to shareholders  $(0.21)  $(0.21)  $(0.23)  $(0.27)  $(0.30)
 Net asset value, end of period (x)  $4.93  $6.24  $6.35  $6.95  $6.21
 Total return (%) (r)(s)(t)(x) (17.95) 1.47 (5.25) 16.43 (7.46)
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 2.02 2.09 2.18 2.15 2.19
Expenses after expense reductions 1.85 1.85 1.85 1.85 1.86
Net investment income (loss) 3.79 2.91 3.47 4.29 4.15
Portfolio turnover 64 82 78 136 95
Net assets at end of period (000 omitted)  $59  $58  $58  $61  $52
See Notes to Financial Statements
28

Financial Highlights – continued
Class R2  Year ended
  10/31/22 10/31/21 10/31/20 10/31/19 10/31/18
Net asset value, beginning of period $6.21 $6.35 $6.95 $6.20 $7.00
Income (loss) from investment operations
Net investment income (loss) (d) $0.24 $0.24 $0.26 $0.32 $0.32
Net realized and unrealized gain (loss) (1.30) (0.14) (0.59) 0.73 (0.78)
 Total from investment operations  $(1.06)  $0.10  $(0.33)  $1.05  $(0.46)
Less distributions declared to shareholders
From net investment income $(0.09) $(0.24) $(0.14) $(0.18) $(0.14)
From tax return of capital (0.15) (0.13) (0.12) (0.20)
 Total distributions declared to shareholders  $(0.24)  $(0.24)  $(0.27)  $(0.30)  $(0.34)
 Net asset value, end of period (x)  $4.91  $6.21  $6.35  $6.95  $6.20
 Total return (%) (r)(s)(t)(x) (17.47) 1.50 (4.77) 17.19 (7.01)
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 1.52 1.61 1.68 1.65 1.69
Expenses after expense reductions 1.35 1.35 1.35 1.35 1.36
Net investment income (loss) 4.29 3.70 3.97 4.79 4.65
Portfolio turnover 64 82 78 136 95
Net assets at end of period (000 omitted)  $50  $60  $59  $62  $53
    
Class R3  Year ended
  10/31/22 10/31/21 10/31/20 10/31/19 10/31/18
Net asset value, beginning of period $6.22 $6.36 $6.96 $6.22 $7.01
Income (loss) from investment operations
Net investment income (loss) (d) $0.25 $0.26 $0.27 $0.33 $0.32
Net realized and unrealized gain (loss) (1.30) (0.14) (0.59) 0.72 (0.76)
 Total from investment operations  $(1.05)  $0.12  $(0.32)  $1.05  $(0.44)
Less distributions declared to shareholders
From net investment income $(0.09) $(0.26) $(0.14) $(0.18) $(0.15)
From tax return of capital (0.16) (0.14) (0.13) (0.20)
 Total distributions declared to shareholders  $(0.25)  $(0.26)  $(0.28)  $(0.31)  $(0.35)
 Net asset value, end of period (x)  $4.92  $6.22  $6.36  $6.96  $6.22
 Total return (%) (r)(s)(t)(x) (17.22) 1.76 (4.52) 17.27 (6.61)
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 1.27 1.37 1.44 1.40 1.44
Expenses after expense reductions 1.10 1.10 1.10 1.10 1.11
Net investment income (loss) 4.55 3.96 4.21 5.01 4.75
Portfolio turnover 64 82 78 136 95
Net assets at end of period (000 omitted)  $123  $132  $275  $211  $155
See Notes to Financial Statements
29

Financial Highlights – continued
Class R4  Year ended
  10/31/22 10/31/21 10/31/20 10/31/19 10/31/18
Net asset value, beginning of period $6.23 $6.38 $6.98 $6.23 $7.00
Income (loss) from investment operations
Net investment income (loss) (d) $0.27 $0.28 $0.29 $0.35 $0.38
Net realized and unrealized gain (loss) (1.30) (0.15) (0.59) 0.73 (0.78)
 Total from investment operations  $(1.03)  $0.13  $(0.30)  $1.08  $(0.40)
Less distributions declared to shareholders
From net investment income $(0.10) $(0.28) $(0.15) $(0.19) $(0.15)
From tax return of capital (0.17) (0.15) (0.14) (0.22)
 Total distributions declared to shareholders  $(0.27)  $(0.28)  $(0.30)  $(0.33)  $(0.37)
 Net asset value, end of period (x)  $4.93  $6.23  $6.38  $6.98  $6.23
 Total return (%) (r)(s)(t)(x) (16.98) 1.86 (4.25) 17.71 (6.10)
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 1.02 1.11 1.19 1.15 1.22
Expenses after expense reductions 0.85 0.85 0.85 0.85 0.85
Net investment income (loss) 4.79 4.19 4.42 5.29 5.45
Portfolio turnover 64 82 78 136 95
Net assets at end of period (000 omitted)  $109  $127  $122  $64  $54
    
Class R6  Year ended
  10/31/22 10/31/21 10/31/20 10/31/19 10/31/18
Net asset value, beginning of period $6.20 $6.34 $6.94 $6.20 $7.00
Income (loss) from investment operations
Net investment income (loss) (d) $0.27 $0.28 $0.30 $0.36 $0.36
Net realized and unrealized gain (loss) (1.30) (0.14) (0.59) 0.72 (0.78)
 Total from investment operations  $(1.03)  $0.14  $(0.29)  $1.08  $(0.42)
Less distributions declared to shareholders
From net investment income $(0.10) $(0.28) $(0.16) $(0.20) $(0.16)
From tax return of capital (0.17) (0.15) (0.14) (0.22)
 Total distributions declared to shareholders  $(0.27)  $(0.28)  $(0.31)  $(0.34)  $(0.38)
 Net asset value, end of period (x)  $4.90  $6.20  $6.34  $6.94  $6.20
 Total return (%) (r)(s)(t)(x) (17.00) 2.10 (4.20) 17.69 (6.45)
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions 0.92 1.02 1.08 1.08 1.11
Expenses after expense reductions 0.76 0.76 0.74 0.78 0.77
Net investment income (loss) 4.88 4.28 4.57 5.37 5.23
Portfolio turnover 64 82 78 136 95
Net assets at end of period (000 omitted)  $365,446  $428,596  $346,556  $317,272  $298,538
    
See Notes to Financial Statements
30

Financial Highlights – continued
(d) Per share data is based on average shares outstanding.
(g) The per share amount varies from the net realized and unrealized gain/loss for the period because of the timing of sales of fund shares and the per share amount of realized and unrealized gains and losses at such time.
(r) Certain expenses have been reduced without which performance would have been lower.
(s) From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower.
(t) Total returns do not include any applicable sales charges.
(x) The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.
See Notes to Financial Statements
31

Notes to Financial Statements
(1) Business and Organization
MFS Emerging Markets Debt Local Currency Fund (the fund) is a non-diversified series of MFS Series Trust X (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company.
The fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies.
(2) Significant Accounting Policies
General — The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. The fund invests in high-yield securities rated below investment grade. Investments in below investment grade quality securities can involve a substantially greater risk of default or can already be in default, and their values can decline significantly. Below investment grade quality securities tend to be more sensitive to adverse news about the issuer, or the market or economy in general, than higher quality debt instruments. The fund invests in foreign securities, including securities of emerging market issuers. Investments in foreign securities are vulnerable to the effects of changes in the relative values of the local currency and the U.S. dollar and to the effects of changes in each country’s market, economic, industrial, political, regulatory, geopolitical, environmental, public health, and other conditions. Investments in emerging markets can involve additional and greater risks than the risks associated with investments in developed foreign markets. Emerging markets can have less developed markets, greater custody and operational risk, less developed legal, regulatory, accounting, and auditing systems, greater government involvement in the economy, greater risk of new or inconsistent government treatment of or restrictions on issuers and instruments, and greater political, social, and economic instability than developed markets.
Balance Sheet Offsetting — The fund's accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement, or similar agreement, does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the fund and the applicable counterparty. The fund's right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject. Balance sheet offsetting disclosures, to the extent applicable to the fund, have been included in the fund’s Significant Accounting Policies note under the captions for each of the fund’s in-scope financial instruments and transactions.
32

Notes to Financial Statements  - continued
Investment Valuations Subject to its oversight, the fund's Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments to MFS as the fund's adviser, pursuant to the fund’s valuation policy and procedures which have been adopted by the adviser and approved by the Board. Effective September 8, 2022, and in accordance with Rule 2a-5 under the Investment Company Act of 1940, the Board of Trustees designated the adviser as the “valuation designee” of the fund. If the adviser, as valuation designee, determines that reliable market quotations are not readily available for an investment, the investment is valued at fair value as determined in good faith by the adviser in accordance with the adviser’s fair valuation policy and procedures.
Under the fund's valuation policy and procedures, 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.
Exchange-traded options are generally valued at the last sale or official closing price on their primary exchange as provided by a third-party pricing service. Exchange-traded options for which there were no sales reported that day are generally valued at the last daily bid quotation on their primary exchange as provided by a third-party pricing service. For put options, the position may be valued at the last daily ask quotation if there are no trades reported during the day. Options not traded on an exchange are generally valued at a broker/dealer bid quotation. Foreign currency options are generally valued at valuations provided by a third-party pricing service. Futures contracts are generally valued at last posted settlement price on their primary exchange as provided by a third-party pricing service. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation on their primary exchange as provided by a third-party pricing service.
Forward foreign currency exchange contracts are generally valued at the mean of bid and asked prices for the time period interpolated from rates provided by a third-party pricing service for proximate time periods. Swap agreements are generally valued using valuations provided by a third-party pricing service, which for cleared swaps includes an evaluation of any trading activity at the clearinghouses. Open-end investment companies are generally valued at net asset value per share. The values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and asked prices for rates provided by a third-party pricing service.
Under the fund’s valuation policy and procedures, market quotations are not considered to be readily available for debt instruments, floating rate loans, and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services or otherwise determined by the adviser in accordance with the adviser’s fair valuation policy and procedures. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. In determining values, third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, spreads and other
33

Notes to Financial Statements  - continued
market data. An investment may also be valued at fair value if the adviser determines that the investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halt of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.
Various inputs are used in determining the value of the fund's assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes significant unobservable inputs, which may include the adviser's own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments, such as futures contracts, forward foreign currency exchange contracts, and swap agreements. The following is a summary of the levels used as of October 31, 2022 in valuing the fund's assets and liabilities:
Financial Instruments Level 1 Level 2 Level 3 Total
Non - U.S. Sovereign Debt $— $311,522,215 $2,036,062 $313,558,277
Foreign Bonds 17,773,119 17,773,119
Mutual Funds 75,804,189 75,804,189
Total $75,804,189 $329,295,334 $2,036,062 $407,135,585
Other Financial Instruments        
Futures Contracts – Assets $49,384 $— $— $49,384