N-Q 1 dnq.htm MFS SERIES TRUST VIII N-Q MFS SERIES TRUST VIII 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 811-5262

 

 

MFS SERIES TRUST VIII

(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: October 31

 

Date of reporting period: July 31, 2008


ITEM 1. SCHEDULE OF INVESTMENTS.


LOGO


MFS Global Growth Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08

 

Issuer

   Shares/Par    Value ($)

Common Stocks – 98.4%

     

Aerospace – 1.0%

     

United Technologies Corp.

   47,310    $ 3,026,894
         

Alcoholic Beverages – 1.4%

     

Companhia de Bebidas das Americas, ADR (l)

   33,550    $ 1,986,831

Pernod Ricard S.A. (l)

   25,986      2,259,180
         
      $ 4,246,011
         

Apparel Manufacturers – 3.8%

     

Compagnie Financiere Richemont S.A.

   25,480    $ 1,528,247

Li & Fung Ltd.

   690,200      2,344,018

LVMH Moet Hennessy Louis Vuitton S.A.

   45,670      5,037,846

NIKE, Inc., “B”

   36,810      2,160,011
         
      $ 11,070,122
         

Automotive – 0.0%

     

PT Astra International Tbk.

   3,500    $ 8,640
         

Biotechnology – 1.6%

     

Actelion Ltd. (a)

   34,742    $ 1,886,482

Genzyme Corp.

   38,740      2,969,421
         
      $ 4,855,903
         

Broadcasting – 3.7%

     

Grupo Televisa S.A., ADR

   122,960    $ 2,765,370

Societe Television Francaise 1

   56,811      970,169

Walt Disney Co.

   94,460      2,866,861

WPP Group PLC

   455,710      4,338,814
         
      $ 10,941,214
         

Brokerage & Asset Managers – 4.6%

     

Daiwa Securities Group, Inc.

   290,000    $ 2,504,944

Deutsche Boerse AG

   18,480      2,106,318

Franklin Resources, Inc.

   24,860      2,501,165

Goldman Sachs Group, Inc.

   10,980      2,020,759

ICAP PLC

   117,490      1,158,257

Julius Baer Holding Ltd.

   53,564      3,415,838
         
      $ 13,707,281
         

Business Services – 5.8%

     

Accenture Ltd., “A”

   50,780    $ 2,120,573

Amdocs Ltd.

   41,510      1,262,319

Capita Group PLC

   82,187      1,119,481

Fidelity National Information Services, Inc.

   71,470      1,354,357

Infosys Technologies Ltd., ADR (l)

   85,670      3,374,541

Intertek Group PLC

   79,230      1,581,659

Lender Processing Services, Inc. (a)

   80      2,668

Satyam Computer Services Ltd.

   280,480      2,511,638

Visa, Inc., “A”

   50,990      3,725,329
         
      $ 17,052,565
         

Chemicals – 2.5%

     

3M Co.

   41,370    $ 2,912,034

Makhteshim-Agan Industries Ltd.

   341,320      2,953,653

Wacker Chemie AG

   6,990      1,446,169
         
      $ 7,311,856
         

Computer Software – 2.1%

     

Oracle Corp.

   145,960    $ 3,142,519

SAP AG

   53,040      3,068,829
         
      $ 6,211,348
         

 

1


MFS Global Growth Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued

 

Issuer

   Shares/Par    Value ($)

Common Stocks – continued

     

Computer Software - Systems – 3.1%

     

Apple, Inc.

   21,600    $ 3,433,320

EMC Corp.

   193,160      2,899,332

International Business Machines Corp.

   22,980      2,940,980
         
      $ 9,273,632
         

Conglomerates – 1.0%

     

Siemens AG

   23,440    $ 2,874,391
         

Consumer Goods & Services – 4.8%

     

Alberto-Culver Co.

   75,740    $ 2,032,104

Colgate-Palmolive Co.

   29,620      2,199,877

L’Oreal S.A.

   15,480      1,626,847

Procter & Gamble Co.

   49,900      3,267,452

Reckitt Benckiser Group PLC

   61,520      3,363,562

Shiseido Co. Ltd.

   71,000      1,576,401
         
      $ 14,066,243
         

Containers – 1.1%

     

Brambles Ltd.

   403,080    $ 3,100,564
         

Electrical Equipment – 1.6%

     

Keyence Corp.

   7,000    $ 1,512,545

Schneider Electric S.A.

   29,337      3,238,721
         
      $ 4,751,266
         

Electronics – 8.1%

     

Canon, Inc.

   45,500    $ 2,079,076

Hirose Electric Co. Ltd.

   26,000      2,462,608

Hoya Corp.

   55,800      1,138,325

Intel Corp.

   233,650      5,184,694

Konica Minolta Holdings, Inc.

   112,000      1,833,969

National Semiconductor Corp.

   94,880      1,987,736

Royal Philips Electronics N.V.

   63,680      2,112,361

Samsung Electronics Co. Ltd.

   4,875      2,716,763

SUMCO Corp. (l)

   64,200      1,447,087

Taiwan Semiconductor Manufacturing Co. Ltd., ADR

   295,615      2,808,344
         
      $ 23,770,963
         

Energy - Independent – 1.9%

     

INPEX Holdings, Inc.

   553    $ 5,556,914
         

Energy - Integrated – 4.0%

     

OAO Gazprom, ADR

   82,880    $ 3,970,903

Petroleo Brasileiro S.A., ADR

   58,870      3,291,422

TOTAL S.A.

   57,430      4,401,425
         
      $ 11,663,750
         

Food & Beverages – 3.2%

     

Nestle S.A.

   150,865    $ 6,608,598

PepsiCo, Inc.

   40,530      2,697,677
         
      $ 9,306,275
         

Food & Drug Stores – 0.8%

     

Tesco PLC

   345,709    $ 2,457,093
         

Gaming & Lodging – 0.5%

     

International Game Technology

   63,940    $ 1,388,137
         

Internet – 1.1%

     

Google, Inc., “A”

   7,040    $ 3,335,200
         

Machinery & Tools – 0.7%

     

GEA Group AG

   61,940    $ 2,043,181
         

 

2


MFS Global Growth Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued

 

Issuer

   Shares/Par    Value ($)

Common Stocks – continued

     

Major Banks – 6.7%

     

Bank of New York Mellon Corp.

   52,020    $ 1,846,710

Credit Suisse Group AG

   52,760      2,647,383

Erste Bank der oesterreichischen Sparkassen AG

   55,530      3,562,169

HSBC Holdings PLC

   173,307      2,868,263

Raiffeisen International Bank Holding AG

   16,500      2,057,562

Standard Chartered PLC

   75,023      2,281,327

State Street Corp.

   41,430      2,968,045

UniCredito Italiano S.p.A.

   272,872      1,624,379
         
      $ 19,855,838
         

Medical Equipment – 3.9%

     

Essilor International S.A.

   27,930    $ 1,379,897

Medtronic, Inc.

   52,320      2,764,066

ResMed, Inc.

   38,030      1,438,295

Synthes, Inc.

   24,700      3,413,026

Zimmer Holdings, Inc.

   37,000      2,549,670
         
      $ 11,544,954
         

Metals & Mining – 3.4%

     

Anglo American PLC

   45,690    $ 2,620,139

BHP Billiton PLC

   219,680      7,333,260
         
      $ 9,953,399
         

Network & Telecom – 4.1%

     

Cisco Systems, Inc.

   147,690    $ 3,247,703

NICE Systems Ltd., ADR (l)

   49,420      1,460,855

Nokia Oyj

   149,970      4,097,647

Research in Motion Ltd.

   26,890      3,302,630
         
      $ 12,108,835
         

Oil Services – 2.4%

     

Halliburton Co.

   50,740    $ 2,274,167

Schlumberger Ltd.

   29,940      3,041,904

Vallourec S.A.

   5,540      1,644,428
         
      $ 6,960,499
         

Other Banks & Diversified Financials – 3.1%

     

Aeon Credit Service Co. Ltd.

   122,500    $ 1,560,852

American Express Co.

   78,660      2,919,859

Bank of Cyprus Public Co. Ltd.

   128,976      1,707,474

Housing Development Finance Corp. Ltd.

   56,949      3,015,185
         
      $ 9,203,370
         

Pharmaceuticals – 6.4%

     

Allergan, Inc.

   56,080    $ 2,912,234

Bayer AG

   33,110      2,861,155

Novartis AG

   72,690      4,306,650

Novo Nordisk A/S, “B” (l)

   45,450      2,890,273

Roche Holding AG

   32,390      5,978,558
         
      $ 18,948,870
         

Restaurants – 0.9%

     

YUM! Brands, Inc.

   75,270    $ 2,696,171
         

Specialty Chemicals – 4.0%

     

Akzo Nobel N.V.

   40,560    $ 2,314,964

L’Air Liquide S.A.

   20,400      2,675,424

Linde AG

   20,820      2,873,914

Praxair, Inc.

   25,170      2,359,184

Symrise AG

   95,823      1,639,004
         
      $ 11,862,490
         

 

3


MFS Global Growth Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued

 

Issuer

   Shares/Par    Value ($)  

Common Stocks – continued

     

Specialty Stores – 1.3%

     

Industria de Diseno Textile S.A.

   44,200    $ 2,123,511  

Staples, Inc.

   77,920      1,753,200  
           
      $ 3,876,711  
           

Telecommunications - Wireless – 2.4%

     

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

   56,660    $ 2,860,763  

MTN Group Ltd.

   143,680      2,477,942  

Rogers Communications, Inc., “B”

   52,020      1,758,229  
           
      $ 7,096,934  
           

Telephone Services – 1.4%

     

Telefonica S.A.

   157,980    $ 4,114,022  
           

Total Common Stocks

      $ 290,241,536  
           

Collateral for Securities Loaned – 1.2%

     

Citigroup Global Markets, Inc. Repurchase Agreement, 2.17%, dated 7/31/08, due 8/01/08, total to be received $3,548,828 (secured by U.S. Treasury and Federal Agency obligations and Mortgage Backed securities in an individually traded account)

   3,548,614    $ 3,548,614  
           

Money Market Funds (v) – 1.3%

     

MFS Institutional Money Market Portfolio, 2.57%, at Net Asset Value

   3,760,801    $ 3,760,801  
           

Total Investments (k)

      $ 297,550,951  
           

Other Assets, Less Liabilities – (0.9)%

        (2,790,876 )
           

Net Assets – 100.0%

      $ 294,760,075  
           

 

(a) Non-income producing security.
(k) As of July 31, 2008, the fund had 60 securities that were fair valued, aggregating $162,713,521 and 54.68% of market value, in accordance with the policies adopted by the Board of Trustees.
(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

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

 

4


MFS Global Growth Fund

Supplemental Information (Unaudited) 7/31/08

(1) 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

   $ 304,107,705  
        

Gross unrealized appreciation

   $ 18,950,089  

Gross unrealized depreciation

     (25,506,843 )
        

Net unrealized appreciation (depreciation)

   $ (6,556,754 )
        

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

(2) 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 nine months ended July 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

   5,217,288    96,752,325    (98,208,812 )   3,760,801

 

Underlying Funds

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

MFS Institutional Money Market Portfolio

   $ —      $ —      $ 72,238    $ 3,760,801

(3) Country Weightings

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

 

United States

   32.0 %

Switzerland

   10.1 %

United Kingdom

   9.9 %

France

   7.9 %

Japan

   7.4 %

Germany

   6.4 %

India

   3.0 %

Spain

   2.1 %

Mexico

   1.9 %

Other Countries

   19.3 %

 

5


LOGO


MFS Strategic Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08

 

Issuer

   Shares/Par    Value ($)

Bonds – 90.7%

     

Aerospace – 0.4%

     

Hawker Beechcraft Acquisition Co. LLC, 9.75%, 2017

   $ 450,000    $ 444,375

Vought Aircraft Industries, Inc., 8%, 2011

     625,000      576,563
         
      $ 1,020,938
         

Airlines – 0.2%

     

Continental Airlines, Inc., 7.339%, 2014

   $ 548,000    $ 411,000
         

Asset Backed & Securitized – 5.5%

     

Anthracite Ltd., CDO, 6%, 2037 (z)

   $ 1,200,000    $ 600,000

ARCap REIT, Inc., CDO, “H”, 6.1%, 2045 (n)

     900,000      333,000

Bayview Financial Revolving Mortgage Loan Trust, FRN, 3.26%, 2040 (z)

     674,286      483,843

Brazilian Merchant Voucher Receivables Ltd., 5.911%, 2011 (z)

     875,670      866,913

Chase Commercial Mortgage Securities Corp., 6.6%, 2029 (z)

     1,378,380      1,410,839

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

     25,286      25,120

Crest Ltd., CDO, 7%, 2040

     400,000      195,260

Deutsche Mortgage & Asset Receiving Corp., FRN, 7.5%, 2031

     1,050,000      1,081,912

DLJ Commercial Mortgage Corp., 6.04%, 2031 (z)

     550,000      534,138

Falcon Franchise Loan LLC, 6.5%, 2014 (z)

     700,000      424,594

Falcon Franchise Loan LLC, FRN, 3.011%, 2023 (i)(n)

     4,670,944      360,174

Falcon Franchise Loan LLC, FRN, 3.421%, 2025 (i)(z)

     3,587,800      373,314

First Union-Lehman Brothers Bank of America, FRN, 0.389%, 2035 (i)

     17,194,651      275,551

First Union-Lehman Brothers Commercial Mortgage Trust, 7%, 2029 (n)

     435,696      451,048

GMAC Commercial Mortgage Securities, Inc., FRN, 6.02%, 2033 (z)

     1,758,000      1,616,018

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.364%, 2043

     1,789,097      1,560,918

KKR Financial CLO Ltd., “C”, CDO, FRN, 4.126%, 2021 (n)

     523,730      315,285

Morgan Stanley Capital I, Inc., 1.444%, 2039 (i)(n)

     10,951,115      286,372

Prudential Securities Secured Financing Corp., FRN, 7.286%, 2013 (z)

     875,000      681,092

Salomon Brothers Mortgage Securities, Inc., FRN, 6.979%, 2032 (z)

     1,800,000      1,902,106
         
      $ 13,777,497
         

Automotive – 1.2%

     

Allison Transmission, Inc., 11%, 2015 (n)

   $ 590,000    $ 533,950

Fce Bank PLC, 7.125%, 2012

   EUR 500,000      647,089

Ford Motor Credit Co. LLC, 12%, 2015

   $ 386,000      325,311

Ford Motor Credit Co. LLC, 8%, 2016

     610,000      431,100

Ford Motor Credit Co. LLC, FRN, 4.361%, 2010

     290,000      247,911

General Motors Corp., 8.375%, 2033

     859,000      423,057

Johnson Controls, Inc., 5.25%, 2011

     290,000      293,751
         
      $ 2,902,169
         

Broadcasting – 2.3%

     

Allbritton Communications Co., 7.75%, 2012

   $ 485,000    $ 446,200

CanWest MediaWorks LP, 9.25%, 2015 (n)

     305,000      236,375

DIRECTV Holdings LLC, 7.625%, 2016 (n)

     530,000      526,025

Grupo Televisa S.A., 8.5%, 2032

     177,000      199,501

Lamar Media Corp., 6.625%, 2015

     435,000      391,500

Lamar Media Corp., “C”, 6.625%, 2015

     275,000      247,500

LBI Media, Inc., 8.5%, 2017 (n)

     300,000      229,875

Liberty Media Corp., 5.7%, 2013

     520,000      467,993

LIN TV Corp., 6.5%, 2013

     625,000      543,750

Local TV Finance LLC, 9.25%, 2015 (n)(p)

     455,000      345,800

Newport Television LLC, 13%, 2017 (n)(p)

     460,000      393,300

News America, Inc., 6.4%, 2035

     890,000      824,590

Nexstar Broadcasting Group, Inc., 7%, 2014

     510,000      419,475

Univision Communications, Inc., 9.75%, 2015 (n)(p)

     600,000      457,500
         
      $ 5,729,384
         

Brokerage & Asset Managers – 0.7%

     

Lehman Brothers Holdings, Inc., 6.5%, 2017

   $ 740,000    $ 667,945
         

 

1


MFS Strategic Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Brokerage & Asset Managers – continued

     

Merrill Lynch & Co., Inc., 6.4%, 2017

   $ 400,000    $ 365,137

Nuveen Investments, Inc., 10.5%, 2015 (n)

     745,000      670,500
         
      $ 1,703,582
         

Building – 1.5%

     

Associated Materials, Inc., 0% to 2009, 11.25% to 2014

   $ 355,000    $ 217,437

Building Materials Corp. of America, 7.75%, 2014

     320,000      249,600

CRH America, Inc., 8.125%, 2018

     1,430,000      1,444,027

Lafarge S.A., 6.15%, 2011

     1,320,000      1,319,834

Nortek Holdings, Inc., 10%, 2013 (n)

     225,000      201,375

Nortek Holdings, Inc., 8.5%, 2014

     380,000      215,175

Ply Gem Industries, Inc., 9%, 2012

     405,000      210,600
         
      $ 3,858,048
         

Business Services – 0.2%

     

SunGard Data Systems, Inc., 10.25%, 2015

   $ 553,000    $ 561,295
         

Cable TV – 1.7%

     

CCH I Holdings LLC, 11%, 2015

   $ 437,000    $ 331,027

CCH II Holdings LLC, 10.25%, 2010

     760,000      723,900

CCO Holdings LLC, 8.75%, 2013

     1,080,000      999,000

CSC Holdings, Inc., 6.75%, 2012

     380,000      361,950

Mediacom LLC, 9.5%, 2013

     530,000      500,850

NTL Cable PLC, 9.125%, 2016

     350,000      323,750

TCI Communications, Inc., 9.8%, 2012

     841,000      945,488
         
      $ 4,185,965
         

Chemicals – 1.6%

     

Braskem S.A., 7.25%, 2018 (z)

   $ 127,000    $ 126,365

Innophos, Inc., 8.875%, 2014

     405,000      405,000

Koppers Holdings, Inc., 9.875%, 2013

     355,000      372,306

Momentive Performance Materials, Inc., 9.75%, 2014

     145,000      128,325

Momentive Performance Materials, Inc., 11.5%, 2016

     382,000      294,140

Nalco Co., 7.75%, 2011

     450,000      454,500

Nalco Co., 8.875%, 2013

     445,000      459,463

Nalco Finance Holdings, Inc., 0% to 2009, 9% to 2014

     450,000      405,000

Yara International A.S.A., 5.25%, 2014 (n)

     1,300,000      1,253,552
         
      $ 3,898,651
         

Computer Software – 0.1%

     

First Data Corp., 9.875%, 2015 (n)

   $ 425,000    $ 376,125
         

Construction – 0.4%

     

Lennar Corp., 5.125%, 2010

   $ 1,110,000    $ 965,700
         

Consumer Goods & Services – 1.8%

     

Corrections Corp. of America, 6.25%, 2013

   $ 200,000    $ 195,500

Fortune Brands, Inc., 5.125%, 2011

     1,025,000      1,021,772

Jarden Corp., 7.5%, 2017

     230,000      200,100

KAR Holdings, Inc., 10%, 2015

     310,000      257,300

Service Corp. International, 7%, 2017

     435,000      403,463

Service Corp. International, 7.625%, 2018

     425,000      403,750

Ticketmaster, 10.75%, 2016 (z)

     195,000      201,825

Western Union Co., 5.4%, 2011

     1,800,000      1,799,246
         
      $ 4,482,956
         

Containers – 1.1%

     

Crown Americas LLC, 7.75%, 2015

   $ 610,000    $ 629,825

Graham Packaging Co. LP, 9.875%, 2014

     310,000      265,050

Greif, Inc., 6.75%, 2017

     915,000      869,250

 

2


MFS Strategic Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Containers – continued

     

Owens-Brockway Glass Container, Inc., 8.25%, 2013

   $ 1,000,000    $ 1,025,000
         
      $ 2,789,125
         

Defense Electronics – 0.8%

     

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

   $ 1,297,000    $ 1,251,918

L-3 Communications Corp., 6.125%, 2014

     700,000      661,500
         
      $ 1,913,418
         

Electronics – 0.3%

     

Avago Technologies Finance, 11.875%, 2015

   $ 160,000    $ 170,400

Flextronics International Ltd., 6.25%, 2014

     420,000      388,500

Spansion LLC, 11.25%, 2016 (n)

     375,000      232,500
         
      $ 791,400
         

Emerging Market Quasi-Sovereign – 1.4%

     

Banco Nacional de Desenvolvimento Economico e Social, 6.369%, 2018 (n)

   $ 519,000    $ 522,892

Codelco, Inc., 4.75%, 2014

     529,000      508,878

National Power Corp., 6.888%, 2011

     389,000      404,788

OAO Gazprom, 7.343%, 2013 (z)

     100,000      101,250

Pemex Project Funding Master Trust, 5.75%, 2018 (n)

     1,145,000      1,114,658

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

     890,000      867,483
         
      $ 3,519,949
         

Emerging Market Sovereign – 1.3%

     

Federative Republic of Brazil, 6%, 2017

   $ 151,000    $ 154,246

Gabonese Republic, 8.2%, 2017 (n)

     422,000      429,385

Republic of Argentina, FRN, 3.092%, 2012

     574,063      464,942

Republic of Colombia, 7.375%, 2017

     704,000      770,880

Republic of Indonesia, 6.875%, 2018 (n)

     278,000      275,915

Republic of Indonesia, 7.75%, 2038 (n)

     311,000      308,279

Republic of Panama, 7.25%, 2015

     21,000      22,628

Republic of Philippines, 9.375%, 2017

     272,000      327,080

Republic of Uruguay, 8%, 2022

     535,000      567,100
         
      $ 3,320,455
         

Energy - Independent – 2.4%

     

Chaparral Energy, Inc., 8.875%, 2017

   $ 320,000    $ 276,000

Chesapeake Energy Corp., 6.375%, 2015

     400,000      378,000

Forest Oil Corp., 7.25%, 2019

     290,000      272,600

Hilcorp Energy I LP, 7.75%, 2015 (n)

     430,000      394,525

Hilcorp Energy I LP, 9%, 2016 (n)

     310,000      303,800

Mariner Energy, Inc., 8%, 2017

     270,000      254,475

Newfield Exploration Co., 6.625%, 2014

     400,000      378,000

Nexen, Inc., 6.4%, 2037

     1,100,000      1,019,093

OPTI Canada, Inc., 8.25%, 2014

     625,000      629,688

Plains Exploration & Production Co., 7%, 2017

     830,000      776,050

Quicksilver Resources, Inc., 7.125%, 2016

     690,000      595,125

SandRidge Energy, Inc., 8.625%, 2015 (n)(p)

     175,000      176,531

SandRidge Energy, Inc., 8%, 2018 (n)

     265,000      262,350

Southwestern Energy Co., 7.5%, 2018 (n)

     200,000      205,000
         
      $ 5,921,237
         

Energy - Integrated – 0.1%

     

Petroleum Co. of Trinidad & Tobago Ltd., 6%, 2022 (n)

   $ 264,000    $ 249,823
         

Entertainment – 0.5%

     

AMC Entertainment, Inc., 11%, 2016

   $ 285,000    $ 288,562

Marquee Holdings, Inc., 12%, 2014

     225,000      178,312

Time Warner, Inc., 6.5%, 2036

     110,000      95,359

 

3


MFS Strategic Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Entertainment – continued

     

Turner Broadcasting System, Inc., 8.375%, 2013

   $ 653,000    $ 700,754
         
      $ 1,262,987
         

Financial Institutions – 1.5%

     

American Express Centurion Bank, 5.2%, 2010

   $ 840,000    $ 838,748

General Motors Acceptance Corp., 6.875%, 2011

     55,000      36,317

General Motors Acceptance Corp., 8%, 2031

     415,000      232,542

ILFC E-Capital Trust I, 5.9% to 2010, FRN to 2065 (n)

     1,400,000      1,045,227

ORIX Corp., 5.48%, 2011

     1,580,000      1,528,154
         
      $ 3,680,988
         

Food & Beverages – 1.7%

     

ARAMARK Corp., 8.5%, 2015

   $ 430,000    $ 428,387

Dean Foods Co., 7%, 2016

     455,000      411,775

Del Monte Corp., 6.75%, 2015

     360,000      336,600

Kraft Foods, Inc., 6.125%, 2018

     720,000      702,026

Michael Foods, Inc., 8%, 2013

     495,000      488,812

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

     1,370,000      1,372,210

Tyson Foods, Inc., 6.85%, 2016

     660,000      610,645
         
      $ 4,350,455
         

Food & Drug Stores – 0.1%

     

CVS Caremark Corp., 5.75%, 2017

   $ 178,000    $ 174,017
         

Forest & Paper Products – 1.7%

     

Buckeye Technologies, Inc., 8%, 2010

   $ 92,000    $ 92,230

Buckeye Technologies, Inc., 8.5%, 2013

     1,145,000      1,142,137

Georgia-Pacific Corp., 7.125%, 2017 (n)

     255,000      235,237

Georgia-Pacific Corp., 8%, 2024

     150,000      138,000

Graphic Packaging International Corp., 9.5%, 2013

     230,000      213,900

International Paper Co., 7.95%, 2018

     390,000      387,814

Millar Western Forest Products Ltd., 7.75%, 2013

     530,000      310,050

NewPage Holding Corp., 10%, 2012

     160,000      153,200

Smurfit Kappa Group PLC, 7.75%, 2015

   EUR   530,000      694,178

Smurfit-Stone Container Corp., 8%, 2017

   $ 310,000      253,425

Stora Enso Oyj, 6.404%, 2016 (n)

     690,000      584,096
         
      $ 4,204,267
         

Gaming & Lodging – 2.6%

     

Firekeepers Development Authority, 13.875%, 2015 (z)

   $ 545,000    $ 501,400

Fontainebleau Las Vegas Holdings LLC, 10.25%, 2015 (n)

     680,000      360,400

Harrah’s Operating Co., Inc., 5.5%, 2010

     265,000      230,550

Harrah’s Operating Co., Inc., 10.75%, 2016 (n)

     780,000      588,900

Harrah’s Operating Co., Inc., 10.75%, 2018 (n)(p)

     320,000      214,400

Host Marriott LP, 7.125%, 2013

     275,000      253,000

Host Marriott LP, 6.75%, 2016

     140,000      119,700

MGM Mirage, 8.375%, 2011

     960,000      866,400

MGM Mirage, 6.75%, 2013

     365,000      304,775

Pinnacle Entertainment, Inc., 7.5%, 2015

     605,000      450,725

Scientific Games Corp., 6.25%, 2012

     750,000      703,125

Station Casinos, Inc., 6%, 2012

     225,000      150,750

Station Casinos, Inc., 6.5%, 2014

     620,000      299,150

Station Casinos, Inc., 6.875%, 2016

     1,060,000      482,300

Trump Entertainment Resorts Holdings, Inc., 8.5%, 2015

     995,000      490,038

Wyndham Worldwide Corp., 6%, 2016

     380,000      326,525

Wynn Las Vegas LLC, 6.625%, 2014

     85,000      76,925
         
      $ 6,419,063
         

Industrial – 0.9%

     

Blount, Inc., 8.875%, 2012

   $ 650,000    $ 658,125

 

4


MFS Strategic Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Industrial – continued

     

JohnsonDiversey, Inc., 9.625%, 2012

   EUR  $ 140,000    $ 209,563

JohnsonDiversey, Inc., “B”, 9.625%, 2012

   $ 635,000      646,112

Steelcase, Inc., 6.5%, 2011

     618,000      628,074
         
      $ 2,141,874
         

Insurance – 1.5%

     

Allianz AG, 5.5%, 2049

   EUR   947,000    $ 1,334,567

American International Group, Inc., 6.25%, 2037

   $ 930,000      705,991

Hartford Financial Services Group, Inc., 8.125%, 2068

     150,000      144,045

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

     2,010,000      1,668,809
         
      $ 3,853,412
         

Insurance - Property & Casualty – 1.0%

     

AXIS Capital Holdings Ltd., 5.75%, 2014

   $ 1,555,000    $ 1,413,871

USI Holdings Corp., 9.75%, 2015 (n)

     320,000      258,400

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

     1,080,000      925,498
         
      $ 2,597,769
         

International Market Quasi-Sovereign – 0.2%

     

Canada Housing Trust, 4.6%, 2011

   CAD   500,000    $ 504,001
         

International Market Sovereign – 21.3%

     

Dutch Government, 3.75%, 2009

   EUR   3,149,000    $ 4,875,300

Dutch Government, 3.75%, 2014

   EUR   288,000      434,366

Federal Republic of Germany, 5.25%, 2010

   EUR   2,503,000      3,969,385

Federal Republic of Germany, 3.75%, 2015

   EUR   1,044,000      1,579,103

Federal Republic of Germany, 6.25%, 2030

   EUR   1,262,000      2,357,373

Government of Australia, 6.25%, 2015

   AUD   271,000      255,777

Government of Canada, 4.5%, 2015

   CAD   845,000      877,350

Government of Canada, 5.75%, 2033

   CAD   218,000      266,033

Government of Japan, 1.5%, 2012

   JPY   306,000,000      2,887,268

Government of Japan, 1.3%, 2014

   JPY   514,000,000      4,788,723

Government of Japan, 1.7%, 2017

   JPY   381,000,000      3,611,607

Government of Japan, 2.2%, 2027

   JPY   224,000,000      2,083,540

Government of Japan, 2.4%, 2037

   JPY   125,000,000      1,153,787

Kingdom of Denmark, 4%, 2015

   DKK   1,837,000      368,821

Kingdom of Spain, 5.35%, 2011

   EUR   2,701,000      4,320,402

Kingdom of Sweden, 4.5%, 2015

   SEK   2,715,000      454,830

Republic of Austria, 4.65%, 2018

   EUR   2,068,000      3,255,646

Republic of France, 4.75%, 2012

   EUR   439,000      693,841

Republic of France, 5%, 2016

   EUR   1,142,000      1,841,117

Republic of France, 6%, 2025

   EUR   554,000      987,947

Republic of France, 4.75%, 2035

   EUR   2,101,000      3,264,158

Republic of Ireland, 4.6%, 2016

   EUR   2,339,000      3,655,583

United Kingdom Treasury, 8%, 2015

   GBP   1,140,000      2,693,189

United Kingdom Treasury, 8%, 2021

   GBP   368,000      939,215

United Kingdom Treasury, 4.25%, 2036

   GBP   775,000      1,460,184
         
      $ 53,074,545
         

Machinery & Tools – 0.7%

     

Atlas Copco AB, 5.6%, 2017 (n)

   $ 1,470,000    $ 1,427,086

Case New Holland, Inc., 7.125%, 2014

     370,000      357,975
         
      $ 1,785,061
         

Major Banks – 2.3%

     

BAC Capital Trust XIV, 5.63% to 2012, FRN to 2049

   $ 1,840,000    $ 1,302,499

BNP Paribas, 5.186% to 2015, FRN to 2049 (n)

     226,000      194,036

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

     600,000      515,790

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

     820,000      784,519

Royal Bank of Scotland Group PLC, 9.118%, 2049

     857,000      859,115

 

5


MFS Strategic Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Major Banks – continued

     

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

   $ 1,187,000    $ 1,201,716

Wachovia Capital Trust III, 5.8% to 2011, FRN to 2042

     1,350,000      762,750
         
      $ 5,620,425
         

Medical & Health Technology & Services – 3.6%

     

Biomet, Inc., 10%, 2017

   $ 310,000    $ 333,250

Biomet, Inc., 11.625%, 2017

     615,000      649,594

Cardinal Health, Inc., 6.3%, 2016

     840,000      819,628

Community Health Systems, Inc., 8.875%, 2015

     860,000      866,450

Cooper Cos., Inc., 7.125%, 2015

     410,000      393,600

DaVita, Inc., 7.25%, 2015

     1,115,000      1,096,881

HCA, Inc., 6.375%, 2015

     1,075,000      881,500

HCA, Inc., 9.25%, 2016

     660,000      679,800

Hospira, Inc., 5.55%, 2012

     450,000      445,224

Hospira, Inc., 6.05%, 2017

     410,000      395,793

McKesson Corp., 5.7%, 2017

     370,000      357,821

Owens & Minor, Inc., 6.35%, 2016

     710,000      680,920

Psychiatric Solutions, Inc., 7.75%, 2015

     375,000      366,563

U.S. Oncology, Inc., 10.75%, 2014

     495,000      486,338

Universal Hospital Services, Inc., 8.5%, 2015 (p)

     305,000      305,000

Universal Hospital Services, Inc., FRN, 6.303%, 2015

     90,000      83,700

VWR Funding, Inc., 10.25%, 2015 (p)

     265,000      243,138
         
      $ 9,085,200
         

Metals & Mining – 1.6%

     

Arch Western Finance LLC, 6.75%, 2013

   $ 345,000    $ 344,137

FMG Finance Ltd., 10.625%, 2016 (n)

     720,000      835,200

Freeport-McMoRan Copper & Gold, Inc., 8.375%, 2017

     1,160,000      1,215,100

Freeport-McMoRan Copper & Gold, Inc., FRN, 5.883%, 2015

     480,000      482,314

Peabody Energy Corp., 7.375%, 2016

     155,000      158,100

Peabody Energy Corp., “B”, 6.875%, 2013

     665,000      671,650

PNA Group, Inc., 10.75%, 2016

     325,000      385,938
         
      $ 4,092,439
         

Mortgage Backed – 4.8%

     

Fannie Mae, 5.5%, 2019- 2035

   $ 8,658,826    $ 8,572,080

Fannie Mae, 6.5%, 2031

     253,796      264,774

Fannie Mae, 6%, 2034 (f)

     3,110,176      3,141,181
         
      $ 11,978,035
         

Natural Gas - Distribution – 0.3%

     

AmeriGas Partners LP, 7.125%, 2016

   $ 385,000    $ 349,387

Inergy LP, 6.875%, 2014

     335,000      301,500
         
      $ 650,887
         

Natural Gas - Pipeline – 3.0%

     

Atlas Pipeline Partners LP, 8.125%, 2015

   $ 300,000    $ 293,250

Atlas Pipeline Partners LP, 8.75%, 2018 (n)

     270,000      265,275

CenterPoint Energy, Inc., 7.875%, 2013

     1,826,000      1,953,674

Deutsche Bank (El Paso Performance-Linked Trust, CLN), 7.75%, 2011 (n)

     695,000      703,289

El Paso Corp., 7.25%, 2018

     280,000      277,200

Intergas Finance B.V., 6.875%, 2011

     228,000      222,300

Kinder Morgan Energy Partners LP, 6%, 2017

     830,000      819,700

Kinder Morgan Finance Corp., 5.35%, 2011

     1,516,000      1,485,680

Spectra Energy Capital LLC, 8%, 2019

     679,000      705,804

TransCapitalInvest Ltd., 7.7%, 2013

     218,000      218,000

TransCapitalInvest Ltd., 5.67%, 2014

     126,000      116,568

Williams Partners LP, 7.25%, 2017

     405,000      403,988
         
      $ 7,464,728
         

 

6


MFS Strategic Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Network & Telecom – 2.5%

     

Cincinnati Bell, Inc., 8.375%, 2014

   $ 485,000    $ 461,962

Citizens Communications Co., 9.25%, 2011

     863,000      897,520

Citizens Communications Co., 9%, 2031

     630,000      557,550

Deutsche Telekom International Finance B.V., 8.5%, 2010

     543,000      573,325

Nordic Telephone Co. Holdings, 8.875%, 2016 (n)

     465,000      448,725

Qwest Capital Funding, Inc., 7.25%, 2011

     710,000      676,275

Qwest Corp., 8.875%, 2012

     290,000      289,275

Qwest Corp., 7.5%, 2014

     560,000      513,800

Telecom Italia Capital, 4.875%, 2010

     248,000      246,161

Telefonica Europe B.V., 7.75%, 2010

     1,090,000      1,147,256

Windstream Corp., 8.625%, 2016

     435,000      440,438
         
      $ 6,252,287
         

Oil Services – 0.7%

     

Basic Energy Services, Inc., 7.125%, 2016

   $ 595,000    $ 556,325

KazMunaiGaz Finance B.V., 8.375%, 2013 (z)

     451,000      459,456

KazMunaiGaz Finance B.V., 9.125%, 2018 (z)

     352,000      358,160

Weatherford International Ltd., 6.35%, 2017

     340,000      343,866
         
      $ 1,717,807
         

Oils – 0.5%

     

Premcor Refining Group, Inc., 7.5%, 2015

   $ 1,290,000    $ 1,332,063
         

Other Banks & Diversified Financials – 1.8%

     

Alfa Diversified Payment Rights Finance Co. S.A., FRN, 4.676%, 2011 (n)

   $ 476,000    $ 452,200

Banco Mercantil del Norte S.A., 5.875% to 2009, FRN to 2014 (n)

     588,000      586,530

Bosphorus Financial Services Ltd., FRN, 4.476%, 2012 (z)

     750,000      724,042

Resona Bank Ltd., 5.85% to 2016, FRN to 2049 (n)

     246,000      201,478

RSHB Capital S.A., 7.125%, 2014 (z)

     100,000      98,590

Swedbank AB, 9% to 2010, FRN to 2049 (n)

     800,000      811,470

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

     1,120,000      954,828

UFJ Finance Aruba AEC, 6.75%, 2013

     648,000      672,150
         
      $ 4,501,288
         

Pharmaceuticals – 0.1%

     

Teva Pharmaceutical Finance LLC, 5.55%, 2016

   $ 359,000    $ 344,749
         

Precious Metals & Minerals – 0.2%

     

Alrosa Finance S.A., 8.875%, 2014

   $ 488,000    $ 502,972
         

Printing & Publishing – 1.2%

     

American Media Operations, Inc., 10.25%, 2009 (z)

   $ 16,107    $ 12,644

American Media Operations, Inc., “B”, 10.25%, 2009

     443,000      347,755

Dex Media West LLC, 9.875%, 2013

     1,409,000      1,106,065

Idearc, Inc., 8%, 2016

     703,000      319,865

Nielsen Finance LLC, 10%, 2014

     430,000      433,225

Nielsen Finance LLC, 0% to 2011, 12.5% to 2016

     780,000      532,350

Quebecor World, Inc., 6.125%, 2013 (d)

     210,000      73,500

R.H. Donnelley Corp., 8.875%, 2016

     285,000      137,513
         
      $ 2,962,917
         

Railroad & Shipping – 0.1%

     

Panama Canal Railway Co., 7%, 2026 (z)

   $ 337,000    $ 296,560
         

Real Estate – 0.9%

     

ERP Operating LP, REIT, 5.75%, 2017

   $ 630,000    $ 566,950

Simon Property Group, Inc., REIT, 6.1%, 2016

     1,790,000      1,725,952
         
      $ 2,292,902
         

Retailers – 0.8%

     

Couche-Tard, Inc., 7.5%, 2013

   $ 490,000    $ 456,925

 

7


MFS Strategic Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Retailers – continued

     

Limited Brands, Inc., 5.25%, 2014

   $ 671,000    $ 566,098

Macy’s Retail Holdings, Inc., 7.875%, 2015

     860,000      854,949
         
      $ 1,877,972
         

Specialty Stores – 0.1%

     

Payless ShoeSource, Inc., 8.25%, 2013

   $ 310,000    $ 279,000
         

Steel – 0.1%

     

Steel Capital S.A., 9.75%, 2013 (z)

   $ 277,000    $ 277,139
         

Supermarkets – 0.5%

     

Safeway, Inc., 4.95%, 2010

   $ 470,000    $ 469,376

Safeway, Inc., 6.5%, 2011

     650,000      672,515
         
      $ 1,141,891
         

Telecommunications - Wireless – 1.7%

     

Alltel Corp., 7%, 2012

   $ 462,000    $ 473,550

MetroPCS Wireless, Inc., 9.25%, 2014

     490,000      475,300

Nextel Communications, Inc., 5.95%, 2014

     1,545,000      1,174,200

Rogers Cable, Inc., 5.5%, 2014

     659,000      635,830

Vodafone Group PLC, 5.375%, 2015

     1,080,000      1,039,619

Wind Acquisition Finance S.A., 10.75%, 2015 (n)

     442,000      457,470
         
      $ 4,255,969
         

Tobacco – 0.4%

     

Reynolds American, Inc., 6.75%, 2017

   $ 1,040,000    $ 1,020,913
         

Transportation – 0.3%

     

IIRSA Norte Finance Ltd., 8.75%, 2024

   $ 561,482    $ 624,648

Peru Enhanced Pass-Through Trust, 0%, 2018 (n)

     246,100      163,041
         
      $ 787,689
         

Transportation - Services – 0.1%

     

Hertz Corp., 8.875%, 2014

   $ 300,000    $ 275,250
         

Utilities - Electric Power – 4.4%

     

Beaver Valley Funding Corp., 9%, 2017

   $ 1,545,000    $ 1,661,246

Dynegy Holdings, Inc., 7.5%, 2015

     240,000      227,400

Edison Mission Energy, 7%, 2017

     1,470,000      1,389,150

Enersis S.A., 7.375%, 2014

     648,000      689,357

FirstEnergy Corp., 6.45%, 2011

     857,000      875,287

HQI Transelec Chile S.A., 7.875%, 2011

     1,200,000      1,286,987

Israel Electric Corp. Ltd., 7.25%, 2019 (z)

     344,000      340,736

Mirant Americas Generation LLC, 8.3%, 2011

     100,000      102,000

Mirant North America LLC, 7.375%, 2013

     585,000      585,000

NRG Energy, Inc., 7.375%, 2016

     1,660,000      1,610,200

Reliant Energy, Inc., 7.875%, 2017

     350,000      337,750

Sierra Pacific Resources, 8.625%, 2014

     58,000      60,755

Texas Competitive Electric Holdings LLC, 10.25%, 2015 (n)

     1,215,000      1,215,000

Waterford 3 Funding Corp., 8.09%, 2017

     518,001      506,429
         
      $ 10,887,297
         

Total Bonds

      $ 226,325,535
         

Floating Rate Loans – 2.2% (g)(r)

     

Aerospace – 0.2%

     

Hawker Beechcraft Acquisition Co., Letter of Credit, 4.8%, 2014

   $ 26,430    $ 24,572

Hawker Beechcraft Acquisition Co., Term Loan B, 4.8%, 2014

     601,629      559,327
         
      $ 583,899
         

Automotive – 0.5%

     

Allison Transmission, Inc., Term Loan B, 5.32%, 2014

   $ 339,620    $ 303,620

Federal Mogul Corp., Term Loan B, 4.4%, 2014

     355,660      277,415

 

8


MFS Strategic Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued

 

Issuer

   Shares/Par    Value ($)

Floating Rate Loans (g)(r) – continued

     

Automotive – continued

     

Ford Motor Co., Term Loan B, 5.46%, 2013

   $ 185,815    $ 145,749

Goodyear Tire & Rubber Co., Second Lien Term Loan, 4.54%, 2014

     573,442      526,133
         
      $ 1,252,917
         

Broadcasting – 0.1%

     

Young Broadcasting, Inc., Term Loan, 5.31%, 2012

   $ 251,057    $ 215,909

Young Broadcasting, Inc., Term Loan B-1, 5.31%, 2012

     133,763      115,036
         
      $ 330,945
         

Cable TV – 0.1%

     

CSC Holdings, Inc., Term Loan B, 4.21%, 2013

   $ 369,925    $ 350,119
         

Computer Software – 0.2%

     

First Data Corp., Term Loan B-1, 5.24%, 2014

   $ 467,682    $ 429,877
         

Forest & Paper Products – 0.1%

     

Abitibi-Consolidated, Inc., Term Loan, 11.5%, 2009

   $ 130,082    $ 129,432
         

Gaming & Lodging – 0.1%

     

Green Valley Ranch Gaming LLC, Second Lien Term Loan, 5.89%, 2014

   $ 310,737    $ 180,228
         

Medical & Health Technology & Services – 0.1%

     

Community Health Systems, Inc., Delayed Draw Term Loan B, 0%, 2014 (q)

   $ 3,876    $ 3,667

Community Health Systems, Inc., Term Loan, 4.85%, 2014

     75,780      71,696

HCA, Inc., Term Loan B, 5.05%, 2013

     175,724      165,107
         
      $ 240,470
         

Printing & Publishing – 0.1%

     

Idearc, Inc., Term Loan B, 4.79%, 2014

   $ 45,190    $ 33,478

Tribune Co., Term Loan B, 2014 (o)

     542,966      368,880
         
      $ 402,358
         

Retailers – 0.1%

     

Burlington Coat Factory, Term Loan B, 2013 (o)

   $ 158,338    $ 125,747
         

Specialty Stores – 0.2%

     

Michaels Stores, Inc., Term Loan B, 4.75%, 2013

   $ 514,918    $ 413,436
         

Telecommunications - Wireless – 0.1%

     

Alltel Corp., Term Loan B-2, 2015 (o)

   $ 239,998    $ 236,953
         

Utilities - Electric Power – 0.3%

     

Calpine Corp., Term Loan, 5.69%, 2014

   $ 395,047    $ 370,568

TXU Corp. Term Loan B-3, 6.26%, 2014

     513,973      481,127
         
      $ 851,695
         

Total Floating Rate Loans

      $ 5,528,076
         

Money Market Funds (v) – 6.3%

     

MFS Institutional Money Market Portfolio, 2.56%, at Net Asset Value

     15,626,669    $ 15,626,669
         

Rights – 0.0%

     

Emerging Market Sovereign – 0.0%

     

Banco Central del Uruguay, Value Recovery Rights, Expiring January 2021 (a)

     1,250,000    $ 0
         

Total Investments (k)

      $ 247,480,280
         

Other Assets, Less Liabilities 0.8%

        2,118,422
         

Net Assets – 100.0%

      $ 249,598,702
         

 

(a) Non-income producing security.
(d) Non-income producing security - in default.
(f) All or a portion of the security has been segregated as collateral for open futures contracts.
(g) The rate shown represents a weighted average coupon rate on settled positions at period end, unless otherwise indicated.
(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.

 

9


MFS Strategic Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued

 

(k) As of July 31, 2008, the fund held securities fair valued in accordance with the policies adopted by the Board of Trustees, aggregating $226,325,535 and 91.45% of market value. All of these security values were provided by an independent pricing service using an evaluated bid.
(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 $29,412,509, representing 11.8% of net assets.
(o) All or a portion of this position has not settled. Upon settlement date, interest rates will be determined.
(p) Payment-in-kind security.
(q) All or a portion of this position represents an unfunded loan commitment. The rate shown represents a weighted average coupon rate on the full position, including the unfunded loan commitment which has no current coupon rate.
(r) Remaining maturities of floating rate loans may be less than stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty. These loans may be subject to restrictions on resale. Floating rate loans generally have rates of interest which are determined periodically by reference to a base lending rate plus a premium.
(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 Media Operations, Inc., 10.25%, 2009

   1/18/08    $ 15,596    $ 12,644  

Anthracite Ltd., CDO, 6%, 2037

   5/14/02      997,192      600,000  

Bayview Financial Revolving Mortgage Loan Trust, FRN, 3.26%, 2040

   3/01/06      674,286      483,843  

Bosphorus Financial Services Ltd., FRN, 4.476%, 2012

   3/08/05      750,000      724,042  

Braskem S.A., 7.25%, 2018

   5/29/08      125,903      126,365  

Brazilian Merchant Voucher Receivables Ltd., 5.911%, 2011

   3/08/07      878,736      866,913  

Chase Commercial Mortgage Securities Corp., 6.6%, 2029

   6/07/00      1,315,964      1,410,839  

DLJ Commercial Mortgage Corp., 6.04%, 2031

   7/23/04      542,323      534,138  

Falcon Franchise Loan LLC, 6.5%, 2014

   7/15/05      640,683      424,594  

Falcon Franchise Loan LLC, FRN, 3.421%, 2025

   1/29/03      448,160      373,314  

Firekeepers Development Authority, 13.875%, 2015

   4/22/08      526,769      501,400  

GMAC Commercial Mortgage Securities, Inc., FRN, 6.02%, 2033

   11/17/00      1,621,938      1,616,018  

Israel Electric Corp. Ltd., 7.25%, 2019

   5/01/08      343,427      340,736  

KazMunaiGaz Finance B.V., 8.375%, 2013

   6/24/08      448,770      459,456  

KazMunaiGaz Finance B.V., 9.125%, 2018

   6/24/08      349,184      358,160  

OAO Gazprom, 7.343%, 2013

   4/02/08      100,000      101,250  

Panama Canal Railway Co., 7%, 2026

   10/29/07      337,000      296,560  

Prudential Securities Secured Financing Corp., FRN, 7.286%, 2013

   12/06/04      931,434      681,092  

RSHB Capital S.A., 7.125%, 2014

   5/21/08      100,000      98,590  

Salomon Brothers Mortgage Securities, Inc., FRN, 6.979%, 2032

   1/07/05      1,970,845      1,902,106  

Steel Capital S.A., 9.75%, 2013

   7/21/08      277,000      277,139  

Ticketmaster, 10.75%, 2016

   7/16/08 - 7/17/08      197,061      201,825  
              

Total Restricted Securities

         $ 12,391,024  

% of Net Assets

           5.0 %

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

 

CDO    Collateralized Debt Obligation
CLN    Credit-Linked Note
CLO    Collateralized Loan Obligation
FRN    Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end.
REIT    Real Estate Investment Trust

Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below:

 

AUD    Australian Dollar
CAD    Canadian Dollar
CLP    Chilean Peso
CNY    Chinese Yuan Renminbi

 

10


MFS Strategic Income Fund

PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued

 

DKK    Danish Krone
EUR    Euro
GBP    British Pound
JPY    Japanese Yen
MXN    Mexican Peso
SEK    Swedish Krona

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

 

11


MFS Strategic Income Fund

Supplemental Information (Unaudited) 7/31/08

(1) 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

   $ 259,070,122  
        

Gross unrealized appreciation

   $ 4,106,778  

Gross unrealized depreciation

     (15,696,620 )
        

Net unrealized appreciation (depreciation)

   $ (11,589,842 )
        

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

(2) Derivative Contracts at 7/31/08

Forward Foreign Currency Exchange Contracts at 7/31/08

 

Type

  

Currency

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

SELL

   AUD    274,564    8/11/08    $ 264,528    $ 258,437    $ 6,091  

SELL

   CAD    1,704,823    8/25/08      1,673,282      1,665,387      7,895  

BUY

   CLP    263,487,826    8/07/08-8/18/08      514,813      522,073      7,260  

SELL

   CLP    263,487,826    8/07/08-8/18/08      531,771      522,073      9,698  

BUY

   CNY    5,322,625    8/21/08      770,000      780,100      10,100  

SELL

   CNY    5,322,625    8/21/08      783,834      780,099      3,735  

BUY

   EUR    1,271,137    8/25/08      1,973,650      1,979,796      6,146  

SELL

   EUR    434,679    8/25/08      684,130      677,013      7,117  

SELL

   JPY    385,144,494    8/26/08      3,586,844      3,574,387      12,457  

BUY

   MXN    3,111,529    8/11/08      299,335      309,829      10,494  

SELL

   SEK    2,805,851    9/30/08      465,315      462,254      3,061  
                       
                  $ 84,054  
                       
Depreciation                  

SELL

   DKK    4,496,681    8/12/08    $ 930,008    $ 939,311    $ (9,303 )

BUY

   DKK    2,574,587    8/12/08      547,534      537,805      (9,729 )

SELL

   EUR    11,973,357    8/25/08      18,594,263      18,648,504      (54,241 )

SELL

   GBP    2,696,596    8/26/08      5,283,035      5,337,776      (54,741 )
                       
                  $ (128,014 )
                       

Futures contracts outstanding at 7/31/08

 

Description

   Contracts    Value    Expiration
Date
   Unrealized
Appreciation
(Depreciation)

U.S. Treasury Note 5yr (Long)

   59    $ 6,568,820    Sep-08    $ 71,239
               

 

12


MFS Strategic Income Fund

Supplemental Information (Unaudited) 7/31/08 - Continued

 

Swap Agreements at 7/31/08

 

Expiration

        Notional
Amount
  

Counterparty

  

Cash Flows to Receive

  

Cash Flows to Pay

   Value  

Credit Default Swaps

           

6/20/09

   USD    300,000    JPMorgan Chase Bank    4.10% (fixed rate)    (1)    $ (45,018 )

6/20/09

   USD    100,000    JPMorgan Chase Bank    4.80% (fixed rate)    (1)      (13,859 )

9/20/10

   USD    1,130,000    Merrill Lynch International    (2)    0.68% (fixed rate)      148,203  

9/20/12

   USD    1,180,000    JPMorgan Chase Bank    0.36% (fixed rate)    (3)      685  

3/20/13

   USD    1,790,000    Goldman Sachs International    (4)    2.129% (fixed rate)      (72,477 )

6/20/13

   USD    6,800,000    Morgan Stanley Capital Services, Inc. (a)    (5)    5.00% (fixed rate)      395,139  

9/20/13

   USD    390,000    Goldman Sachs International    (6)    0.645% (fixed rate)      (893 )

9/20/13

   USD    240,000    Goldman Sachs International    (6)    0.645% (fixed rate)      (545 )

9/20/13

   USD    300,000    JPMorgan Chase Bank    5.30% (fixed rate)    (7)      6,448  

9/20/13

   USD    630,000    Merrill Lynch International    (8)    0.77% (fixed rate)      4,041  
                       
                  $ 421,724  
                       

 

(1) Fund to pay notional amount upon a defined credit event by Abitibi-Consolidated, Inc., 8.375%, 4/01/15.
(2) Fund to receive notional amount upon a defined credit event by Lennar Corp., 5.95%, 3/01/13.
(3) Fund to pay notional amount upon a defined credit event by Fannie Mae, 5.5%, 6/09/33.
(4) Fund to receive notional amount upon a defined credit event by Simon Property Group, Inc., 6.35%, 8/28/12.
(5) Fund to receive notional amount upon a defined credit event by CDX.NA.HY.10 Index, 5.0%, 6/20/13.
(6) Fund to receive notional amount upon a defined credit event by CIGNA Corp., 7.875%, 5/15/27.
(7) Fund to pay notional amount upon a defined credit event by ARAMARK Corp., 8.50%, 2/01/15.
(8) Fund to receive notional amount upon a defined credit event by AutoZone, Inc., 5.875%, 10/15/12.

 

(a) Net unamortized premiums paid by the fund amounted to $446,250.

At July 31, 2008, the fund had sufficient cash and/or other liquid securities to cover any commitments under these derivative contracts.

(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 nine months ended July 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

   —       78,135,023    62,508,354    15,626,669

 

Underlying Funds

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

MFS Institutional Money Market

           

Portfolio

   $ —      $ —      $ 357,306    $ 15,626,669

 

13


MFS Strategic Income Fund

Supplemental Information (Unaudited) 7/31/08 - Continued

 

(4) Country Weightings

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

 

United States

   62.0 %

Japan

   6.8 %

Germany

   4.0 %

France

   3.4 %

United Kingdom

   3.2 %

Netherlands

   3.2 %

Spain

   2.3 %

Canada

   2.0 %

Ireland

   1.8 %

Other Countries

   11.3 %

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

 

14


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 VIII

 

By (Signature and Title)*    ROBERT J. MANNING
  Robert J. Manning, President

Date: September 12, 2008

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)*    ROBERT J. MANNING
 

Robert J. Manning, President

(Principal Executive Officer)

Date: September 12, 2008

 

By (Signature and Title)*    MARIA F. DWYER
 

Maria F. Dwyer, Treasurer

(Principal Financial Officer

and Accounting Officer)

Date: September 12, 2008

 

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