MFS SPECIAL VALUE TRUST 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 811-05912

MFS SPECIAL VALUE TRUST

(Exact name of registrant as specified in charter)

111 Huntington Avenue, Boston, Massachusetts 02199

(Address of principal executive offices) (Zip code)

Susan S. Newton

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: January 31, 2015

ITEM 1. SCHEDULE OF INVESTMENTS.

QUARTERLY REPORT

January 31, 2015

 

LOGO

MFS® SPECIAL VALUE TRUST

 

LOGO

PORTFOLIO OF INVESTMENTS

1/31/15 (unaudited)

The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.

 

Issuer    Shares/Par     Value ($)  
    
Bonds - 62.5%                 
Aerospace - 1.5%                 
Bombardier, Inc., 7.75%, 3/15/20 (n)    $ 55,000      $ 55,210   
Bombardier, Inc., 6.125%, 1/15/23 (n)      30,000        28,350   
CPI International, Inc., 8.75%, 2/15/18      150,000        154,125   
Gencorp, Inc., 7.125%, 3/15/21      125,000        131,469   
Huntington Ingalls Industries, Inc., 7.125%, 3/15/21      185,000        198,875   
Huntington Ingalls Industries, Inc., 5%, 12/15/21 (n)      10,000        10,375   
Kratos Defense & Security Solutions, Inc., 7%, 5/15/19      40,000        33,200   
TransDigm, Inc., 6%, 7/15/22      25,000        24,938   
TransDigm, Inc., 6.5%, 7/15/24      60,000        60,750   
    

 

 

  
             $ 697,292   
Apparel Manufacturers - 0.3%                 
Hanesbrands, Inc., 6.375%, 12/15/20    $ 60,000      $ 63,420   
PVH Corp., 4.5%, 12/15/22      60,000        60,000   
    

 

 

  
             $ 123,420   
Asset-Backed & Securitized - 0.1%                 
Citigroup Commercial Mortgage Trust, FRN, 5.713%, 12/10/49    $ 220,000      $ 33,361   
Falcon Franchise Loan LLC, FRN, 20.252%, 1/05/25 (i)(z)      21,539        5,169   
Morgan Stanley Capital I, Inc., FRN, 1.418%, 4/28/39 (i)(z)      152,552        769   
    

 

 

  
             $ 39,299   
Automotive - 2.6%                 
Accuride Corp., 9.5%, 8/01/18    $ 150,000      $ 154,875   
Allison Transmission, Inc., 7.125%, 5/15/19 (n)      175,000        182,438   
Goodyear Tire & Rubber Co., 6.5%, 3/01/21      140,000        150,325   
Goodyear Tire & Rubber Co., 7%, 5/15/22      40,000        43,300   
Jaguar Land Rover PLC, 8.125%, 5/15/21 (n)      300,000        331,500   
Lear Corp., 4.75%, 1/15/23      80,000        81,000   
Lear Corp., 5.25%, 1/15/25      65,000        66,300   
Schaeffler Holding Finance B.V., 6.25%, 11/15/19 (n)(p)      200,000        209,500   
    

 

 

  
             $ 1,219,238   
Broadcasting - 1.8%                 
AMC Networks, Inc., 7.75%, 7/15/21    $ 101,000      $ 109,080   
Clear Channel Communications, Inc., 9%, 3/01/21      127,000        123,190   
Clear Channel Worldwide Holdings, Inc., “A”, 6.5%, 11/15/22      25,000        25,500   
Clear Channel Worldwide Holdings, Inc., “B”, 6.5%, 11/15/22      85,000        87,656   
Liberty Media Corp., 8.5%, 7/15/29      110,000        120,725   
Liberty Media Corp., 8.25%, 2/01/30      35,000        37,888   
Netflix, Inc., 5.375%, 2/01/21      70,000        72,450   
Nexstar Broadcasting, Inc., 6.875%, 11/15/20      100,000        104,125   
Univision Communications, Inc., 6.875%, 5/15/19 (n)      25,000        26,063   
Univision Communications, Inc., 7.875%, 11/01/20 (n)      100,000        107,000   
    

 

 

  
             $ 813,677   
Brokerage & Asset Managers - 0.4%                 
E*TRADE Financial Corp., 6.375%, 11/15/19    $ 170,000      $ 181,900   
Building - 1.8%                 
Allegion U.S. Holding Co., Inc., 5.75%, 10/01/21    $ 140,000      $ 147,000   
Associated Materials LLC, 9.125%, 11/01/17      15,000        12,413   
Building Materials Corp. of America, 5.375%, 11/15/24 (n)      75,000        76,125   

 

1

Portfolio of Investments (unaudited) – continued

Issuer    Shares/Par     Value ($)  
    
Bonds - continued                 
Building - continued                 
Building Materials Holding Corp., 6.75%, 5/01/21 (n)    $ 30,000      $ 32,100   
Gibraltar Industries, Inc., 6.25%, 2/01/21      30,000        30,600   
HD Supply, Inc., 7.5%, 7/15/20      110,000        115,225   
Headwaters, Inc., 7.25%, 1/15/19      70,000        73,150   
Headwaters, Inc., 7.625%, 4/01/19      35,000        36,400   
Nortek, Inc., 8.5%, 4/15/21      150,000        159,375   
Roofing Supply Group LLC/Roofing Supply Finance, Inc., 10%, 6/01/20 (n)      89,000        88,333   
USG Corp., 7.875%, 3/30/20 (n)      45,000        48,488   
    

 

 

  
             $ 819,209   
Business Services - 0.5%                 
Equinix, Inc., 4.875%, 4/01/20    $ 55,000      $ 56,100   
Equinix, Inc., 5.375%, 1/01/22      25,000        25,875   
Equinix, Inc., 5.375%, 4/01/23      35,000        36,313   
NeuStar, Inc., 4.5%, 1/15/23      110,000        96,250   
    

 

 

  
             $ 214,538   
Cable TV - 3.3%                 
Altice Financing S.A., 7.875%, 12/15/19 (n)    $ 200,000      $ 211,600   
CCO Holdings LLC/CCO Holdings Capital Corp., 8.125%, 4/30/20      120,000        126,300   
CCO Holdings LLC/CCO Holdings Capital Corp., 6.5%, 4/30/21      60,000        63,150   
CCO Holdings LLC/CCO Holdings Capital Corp., 5.75%, 1/15/24      105,000        106,444   
Cequel Communications Holdings, 6.375%, 9/15/20 (n)      65,000        67,600   
DISH DBS Corp., 6.75%, 6/01/21      60,000        65,175   
DISH DBS Corp., 5%, 3/15/23      90,000        88,425   
DISH DBS Corp., 5.875%, 11/15/24      30,000        30,150   
Intelsat Jackson Holdings S.A., 6.625%, 12/15/22      105,000        107,625   
Intelsat Jackson Holdings S.A., 5.5%, 8/01/23      110,000        108,625   
Intelsat Luxembourg S.A., 8.125%, 6/01/23      90,000        90,900   
LGE Holdco VI B.V., 7.125%, 5/15/24 (z)    EUR  100,000        127,831   
SIRIUS XM Radio, Inc., 4.25%, 5/15/20 (n)    $ 10,000        9,750   
SIRIUS XM Radio, Inc., 5.875%, 10/01/20 (n)      10,000        10,250   
SIRIUS XM Radio, Inc., 4.625%, 5/15/23 (n)      60,000        56,250   
SIRIUS XM Radio, Inc., 6%, 7/15/24 (n)      50,000        51,375   
Unitymedia KabelBW GmbH, 6.125%, 1/15/25 (n)      200,000        210,500   
    

 

 

  
             $ 1,531,950   
Chemicals - 1.7%                 
Celanese U.S. Holdings LLC, 5.875%, 6/15/21    $ 63,000      $ 67,568   
Celanese U.S. Holdings LLC, 4.625%, 11/15/22      20,000        19,950   
Hexion U.S. Finance Corp., 6.625%, 4/15/20      40,000        37,575   
Hexion U.S. Finance Corp./Hexion Nova Scotia Finance, 8.875%, 2/01/18      120,000        102,900   
Huntsman International LLC, 8.625%, 3/15/21      100,000        107,500   
INEOS Group Holdings S.A., 5.875%, 2/15/19 (n)      200,000        190,000   
PSPC Escrow Corp., 6.5%, 2/01/22 (n)      50,000        51,000   
Tronox Finance LLC, 6.375%, 8/15/20      155,000        153,450   
W.R. Grace & Co., 5.125%, 10/01/21 (n)      40,000        41,600   
    

 

 

  
             $ 771,543   
Computer Software - 0.2%                 
Syniverse Holdings, Inc., 9.125%, 1/15/19    $ 40,000      $ 41,700   
VeriSign, Inc., 4.625%, 5/01/23      35,000        34,781   
    

 

 

  
             $ 76,481   

 

2

Portfolio of Investments (unaudited) – continued

Issuer    Shares/Par     Value ($)  
    
Bonds - continued                 
Computer Software - Systems - 0.4%                 
Audatex North America, Inc., 6%, 6/15/21 (n)    $ 45,000      $ 46,800   
CDW LLC/CDW Finance Corp., 8.5%, 4/01/19      29,000        30,494   
CDW LLC/CDW Finance Corp., 6%, 8/15/22      50,000        52,500   
CDW LLC/CDW Finance Corp., 5.5%, 12/01/24      40,000        40,300   
    

 

 

  
             $ 170,094   
Conglomerates - 1.3%                 
Amsted Industries Co., 5%, 3/15/22 (n)    $ 105,000      $ 103,688   
BC Mountain LLC, 7%, 2/01/21 (n)      85,000        73,950   
Dynacast International LLC, 9.25%, 7/15/19      75,000        80,344   
EnPro Industries, Inc., 5.875%, 9/15/22 (n)      75,000        76,500   
Entegris, Inc., 6%, 4/01/22 (n)      125,000        126,250   
Renaissance Acquisition, 6.875%, 8/15/21 (n)      145,000        138,475   
    

 

 

  
             $ 599,207   
Construction - 0.2%                 
Empresas ICA S.A.B. de C.V., 8.9%, 2/04/21    $ 125,000      $ 89,875   
Consumer Products - 0.5%                 
Elizabeth Arden, Inc., 7.375%, 3/15/21    $ 48,000      $ 43,200   
Prestige Brands, Inc., 8.125%, 2/01/20      30,000        32,250   
Prestige Brands, Inc., 5.375%, 12/15/21 (n)      55,000        53,763   
Spectrum Brands, Inc., 6.375%, 11/15/20      110,000        116,600   
Spectrum Brands, Inc., 6.125%, 12/15/24 (n)      10,000        10,425   
    

 

 

  
             $ 256,238   
Consumer Services - 1.2%                 
ADT Corp., 6.25%, 10/15/21    $ 100,000      $ 105,969   
Garda World Security Corp., 7.25%, 11/15/21 (n)      60,000        58,500   
Garda World Security Corp., 7.25%, 11/15/21 (n)      30,000        29,250   
Grupo Posadas S.A.B. de C.V., 7.875%, 11/30/17      150,000        145,500   
Monitronics International, Inc., 9.125%, 4/01/20      145,000        134,850   
Multi-Color Corp., 6.125%, 12/01/22 (n)      40,000        40,450   
Service Corp. International, 5.375%, 5/15/24      50,000        52,010   
    

 

 

  
             $ 566,529   
Containers - 2.2%                 
Ardagh Packaging Finance PLC, 9.125%, 10/15/20 (n)    $ 200,000      $ 212,000   
Berry Plastics Group, Inc., 9.75%, 1/15/21      20,000        22,200   
Berry Plastics Group, Inc., 5.5%, 5/15/22      125,000        127,813   
Crown American LLC, 4.5%, 1/15/23      85,000        85,000   
Owens-Brockway Glass Container, Inc., 5%, 1/15/22 (n)      25,000        25,969   
Reynolds Group, 7.125%, 4/15/19      175,000        181,234   
Reynolds Group, 5.75%, 10/15/20      50,000        51,125   
Reynolds Group, 8.25%, 2/15/21      115,000        116,869   
Sealed Air Corp., 4.875%, 12/01/22 (n)      80,000        81,600   
Sealed Air Corp., 5.125%, 12/01/24 (n)      10,000        10,263   
Signode Industrial Group, 6.375%, 5/01/22 (n)      100,000        95,000   
    

 

 

  
             $ 1,009,073   
Defense Electronics - 0.3%                 
Ducommun, Inc., 9.75%, 7/15/18    $ 133,000      $ 141,978   
Electrical Equipment - 0.0%                 
Avaya, Inc., 10.5%, 3/01/21 (z)    $ 20,000      $ 16,375   

 

3

Portfolio of Investments (unaudited) – continued

Issuer    Shares/Par     Value ($)  
    
Bonds - continued                 
Electronics - 1.1%                 
Advanced Micro Devices, Inc., 6.75%, 3/01/19    $ 110,000      $ 104,500   
Advanced Micro Devices, Inc., 7.5%, 8/15/22      35,000        33,031   
Advanced Micro Devices, Inc., 7%, 7/01/24      25,000        21,813   
Micron Technology, Inc., 5.875%, 2/15/22 (n)      40,000        42,000   
Micron Technology, Inc., 5.5%, 2/01/25 (n)      50,000        50,250   
Nokia Corp., 5.375%, 5/15/19      80,000        87,400   
Nokia Corp., 6.625%, 5/15/39      25,000        27,938   
Sensata Technologies B.V., 6.5%, 5/15/19 (n)      105,000        109,463   
Sensata Technologies B.V., 5.625%, 11/01/24 (z)      40,000        42,300   
    

 

 

  
             $ 518,695   
Emerging Market Quasi-Sovereign - 0.1%                 
NOVA Chemicals Corp., 5%, 5/01/25 (n)    $ 38,000      $ 39,425   
Emerging Market Sovereign - 0.1%                 
Republic of Venezuela, 7%, 3/31/38    $ 203,000      $ 64,453   
Energy - Independent - 4.5%                 
Afren PLC, 11.5%, 2/01/16 (n)    $ 200,000      $ 70,000   
American Energy-Permian Basin LLC, 7.125%, 11/01/20 (n)      35,000        25,550   
American Energy-Permian Basin LLC, 7.375%, 11/01/21 (n)      135,000        99,900   
Antero Resources Finance Corp., 6%, 12/01/20      70,000        69,650   
Antero Resources Finance Corp., 5.375%, 11/01/21      85,000        82,875   
Baytex Energy Corp., 5.125%, 6/01/21 (n)      35,000        30,363   
Baytex Energy Corp., 5.625%, 6/01/24 (n)      95,000        81,463   
BreitBurn Energy Partners LP, 8.625%, 10/15/20      50,000        35,375   
BreitBurn Energy Partners LP, 7.875%, 4/15/22      80,000        51,200   
Chaparral Energy, Inc., 7.625%, 11/15/22      100,000        58,000   
Concho Resources, Inc., 5.5%, 4/01/23      20,000        20,000   
EP Energy LLC, 6.875%, 5/01/19      35,000        35,438   
EP Energy LLC, 9.375%, 5/01/20      110,000        110,825   
EP Energy LLC, 7.75%, 9/01/22      150,000        142,313   
Halcon Resources Corp., 8.875%, 5/15/21      140,000        93,100   
Hilcorp Energy I/Hilcorp Finance Co., 8%, 2/15/20 (n)      40,000        40,800   
Hilcorp Energy I/Hilcorp Finance Co., 5%, 12/01/24 (n)      20,000        18,000   
Linn Energy LLC/Linn Energy Finance Corp., 8.625%, 4/15/20      5,000        3,950   
Linn Energy LLC/Linn Energy Finance Corp., 7.75%, 2/01/21      160,000        120,800   
Linn Energy LLC/Linn Energy Finance Corp., 6.5%, 9/15/21      45,000        33,075   
MEG Energy Corp., 6.5%, 3/15/21 (n)      85,000        76,925   
MEG Energy Corp., 7%, 3/31/24 (n)      75,000        67,875   
Northern Blizzard Resources, Inc., 7.25%, 2/01/22 (n)      80,000        66,400   
Oasis Petroleum, Inc., 6.875%, 3/15/22      135,000        124,284   
QEP Resources, Inc., 5.25%, 5/01/23      25,000        23,688   
Rosetta Resources, Inc., 5.625%, 5/01/21      65,000        61,263   
RSP Permian, Inc., 6.625%, 10/01/22 (n)      65,000        64,594   
Sanchez Energy Corp., 6.125%, 1/15/23 (n)      145,000        128,325   
SandRidge Energy, Inc., 8.125%, 10/15/22      75,000        51,000   
SM Energy Co., 6.5%, 11/15/21      120,000        117,600   
SM Energy Co., 6.125%, 11/15/22 (n)      50,000        48,250   
Whiting Petroleum Corp., 5.75%, 3/15/21      20,000        19,025   
    

 

 

  
             $ 2,071,906   
Entertainment - 1.0%                 
Activision Blizzard, Inc., 6.125%, 9/15/23 (n)    $ 95,000      $ 103,550   
Cedar Fair LP, 5.25%, 3/15/21      105,000        106,575   

 

4

Portfolio of Investments (unaudited) – continued

Issuer    Shares/Par     Value ($)  
    
Bonds - continued                 
Entertainment - continued                 
Cedar Fair LP, 5.375%, 6/01/24 (n)    $ 35,000      $ 35,350   
Cinemark USA, Inc., 5.125%, 12/15/22      50,000        49,750   
NCL Corp. Ltd., 5.25%, 11/15/19 (n)      75,000        75,938   
Six Flags Entertainment Corp., 5.25%, 1/15/21 (n)      90,000        91,125   
    

 

 

  
             $ 462,288   
Financial Institutions - 2.8%                 
Aircastle Ltd., 5.125%, 3/15/21    $ 40,000      $ 40,500   
Aircastle Ltd., 5.5%, 2/15/22      10,000        10,302   
Aviation Capital Group, 4.625%, 1/31/18 (n)      55,000        56,946   
Aviation Capital Group, 6.75%, 4/06/21 (n)      25,000        28,125   
CIT Group, Inc., 5.25%, 3/15/18      40,000        41,500   
CIT Group, Inc., 6.625%, 4/01/18 (n)      119,000        128,223   
CIT Group, Inc., 5.5%, 2/15/19 (n)      148,000        157,013   
CIT Group, Inc., 5%, 8/15/22      35,000        36,794   
Icahn Enterprises LP, 6%, 8/01/20      55,000        57,536   
Icahn Enterprises LP, 5.875%, 2/01/22      110,000        112,475   
Nationstar Mortgage LLC/Capital Corp., 6.5%, 8/01/18      60,000        55,650   
Nationstar Mortgage LLC/Capital Corp., 7.875%, 10/01/20      305,000        282,125   
SLM Corp., 4.875%, 6/17/19      21,000        21,158   
SLM Corp., 8%, 3/25/20      135,000        149,850   
SLM Corp., 7.25%, 1/25/22      60,000        65,250   
SLM Corp., 6.125%, 3/25/24      50,000        48,750   
    

 

 

  
             $ 1,292,197   
Food & Beverages - 0.8%                 
B&G Foods, Inc., 4.625%, 6/01/21    $ 15,000      $ 14,925   
Constellation Brands, Inc., 3.75%, 5/01/21      10,000        10,100   
Constellation Brands, Inc., 4.25%, 5/01/23      95,000        97,375   
Darling Ingredients, Inc., 5.375%, 1/15/22      75,000        74,813   
H.J. Heinz Co., 4.25%, 10/15/20      70,000        70,569   
Sun Merger Sub, Inc., 5.875%, 8/01/21 (n)      100,000        102,750   
    

 

 

  
             $ 370,532   
Forest & Paper Products - 0.3%                 
Appvion, Inc., 9%, 6/01/20 (n)    $ 70,000      $ 47,513   
Rayonier AM Products, Inc., 5.5%, 6/01/24 (z)      20,000        17,050   
Tembec Industries, Inc., 9%, 12/15/19 (n)      60,000        59,250   
    

 

 

  
             $ 123,813   
Gaming & Lodging - 2.1%                 
CCM Merger, Inc., 9.125%, 5/01/19 (n)    $ 150,000      $ 162,000   
Chester Downs & Marina LLC, 9.25%, 2/01/20 (n)      45,000        32,175   
Greektown Holdings LLC, 8.875%, 3/15/19 (n)      145,000        146,088   
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp., 5.625%, 10/15/21      120,000        126,600   
Isle of Capri Casinos, Inc., 8.875%, 6/15/20      35,000        37,013   
Isle of Capri Casinos, Inc., 5.875%, 3/15/21      65,000        67,438   
MGM Resorts International, 6.625%, 12/15/21      90,000        94,500   
MGM Resorts International, 6%, 3/15/23      65,000        65,650   
Ryman Hospitality Properties, Inc., REIT, 5%, 4/15/21      120,000        120,300   
Wynn Las Vegas LLC, 7.75%, 8/15/20      95,000        100,938   
    

 

 

  
             $ 952,702   
Industrial - 1.0%                 
Anixter, Inc., 5.125%, 10/01/21    $ 75,000      $ 76,781   
Dematic S.A., 7.75%, 12/15/20 (n)      180,000        187,650   

 

5

Portfolio of Investments (unaudited) – continued

Issuer    Shares/Par     Value ($)  
    
Bonds - continued                 
Industrial - continued                 
Howard Hughes Corp., 6.875%, 10/01/21 (n)    $ 105,000      $ 109,725   
SPL Logistics Escrow LLC, 8.875%, 8/01/20 (n)      90,000        93,375   
    

 

 

  
             $ 467,531   
Machinery & Tools - 1.1%                 
CNH America LLC, 7.25%, 1/15/16    $ 50,000      $ 52,100   
H&E Equipment Services Co., 7%, 9/01/22      110,000        104,775   
Jurassic Holdings III, Inc., 6.875%, 2/15/21 (n)      95,000        81,225   
Light Tower Rentals, Inc., 8.125%, 8/01/19 (n)      110,000        75,625   
RSC Equipment Rental, Inc., 8.25%, 2/01/21      140,000        151,375   
United Rentals North America, Inc., 7.625%, 4/15/22      48,000        52,790   
    

 

 

  
             $ 517,890   
Major Banks - 1.4%                 
Bank of America Corp., FRN, 5.2%, 12/31/49    $ 140,000      $ 133,700   
JPMorgan Chase & Co., 6% to 8/01/23, FRN to 12/29/49      135,000        136,308   
RBS Capital Trust II, 6.425% to 1/03/34, FRN to 12/29/49      95,000        103,550   
Royal Bank of Scotland Group PLC, 7.648% to 9/30/31, FRN to 8/29/49      150,000        179,250   
Royal Bank of Scotland Group PLC, 6.99% to 10/04/17, FRN to 10/29/49 (n)      100,000        115,000   
    

 

 

  
             $ 667,808   
Medical & Health Technology & Services - 3.8%                 
CHS/Community Health Systems, Inc., 5.125%, 8/01/21    $ 15,000      $ 15,581   
CHS/Community Health Systems, Inc., 6.875%, 2/01/22      185,000        196,493   
Davita, Inc., 6.625%, 11/01/20      275,000        289,438   
Davita, Inc., 5.125%, 7/15/24      45,000        46,251   
Fresenius Medical Care Capital Trust III, 5.875%, 1/31/22 (n)      15,000        16,744   
HCA, Inc., 7.5%, 2/15/22      150,000        175,785   
HCA, Inc., 5.875%, 3/15/22      45,000        50,175   
HCA, Inc., 5%, 3/15/24      65,000        69,550   
HCA, Inc., 5.375%, 2/01/25      60,000        61,650   
HealthSouth Corp., 8.125%, 2/15/20      175,000        182,438   
Kindred Escrow Corp. II, 8%, 1/15/20 (z)      50,000        53,060   
LifePoint Hospitals, Inc., 5.5%, 12/01/21      150,000        157,688   
Tenet Healthcare Corp., 8%, 8/01/20      165,000        174,075   
Tenet Healthcare Corp., 4.5%, 4/01/21      120,000        121,200   
Tenet Healthcare Corp., 8.125%, 4/01/22      70,000        78,925   
Universal Health Services, Inc., 7.625%, 8/15/20      105,000        91,875   
    

 

 

  
             $ 1,780,928   
Medical Equipment - 0.5%                 
Biomet, Inc., 6.5%, 8/01/20    $ 56,000      $ 59,710   
Physio-Control International, Inc., 9.875%, 1/15/19 (n)      62,000        66,185   
Teleflex, Inc., 6.875%, 6/01/19      50,000        52,000   
Teleflex, Inc., 5.25%, 6/15/24 (n)      55,000        55,550   
    

 

 

  
             $ 233,445   
Metals & Mining - 2.8%                 
ArcelorMittal S.A., 6.75%, 2/25/22    $ 30,000      $ 31,875   
ArcelorMittal S.A., 7.5%, 3/01/41      45,000        46,181   
Arch Coal, Inc., 8%, 1/15/19 (n)      45,000        18,900   
Arch Coal, Inc., 7.25%, 10/01/20      35,000        9,713   
Century Aluminum Co., 7.5%, 6/01/21 (n)      110,000        114,125   
Commercial Metals Co., 4.875%, 5/15/23      75,000        70,875   
Consol Energy, Inc., 6.375%, 3/01/21      35,000        33,775   
Consol Energy, Inc., 5.875%, 4/15/22      80,000        69,400   

 

6

Portfolio of Investments (unaudited) – continued

Issuer    Shares/Par     Value ($)  
    
Bonds - continued                 
Metals & Mining - continued                 
EVRAZ, Inc. N.A. Canada, 7.5%, 11/15/19 (n)    $ 85,000      $ 72,888   
First Quantum Minerals Ltd., 7.25%, 10/15/19 (n)      200,000        173,500   
Fortescue Metals Group Ltd., 8.25%, 11/01/19 (n)      125,000        110,938   
GrafTech International Co., 6.375%, 11/15/20      100,000        84,000   
Hudbay Minerals, Inc., 9.5%, 10/01/20      20,000        19,450   
Lundin Mining Corp., 7.5%, 11/01/20 (n)      50,000        49,500   
Lundin Mining Corp., 7.875%, 11/01/22 (n)      50,000        49,500   
Steel Dynamics, Inc., 5.125%, 10/01/21 (n)      45,000        46,013   
Steel Dynamics, Inc., 5.25%, 4/15/23      20,000        20,400   
Steel Dynamics, Inc., 5.5%, 10/01/24 (n)      45,000        45,900   
Suncoke Energy Partners LP/Suncoke Energy Partners Finance Corp., 7.375%, 2/01/20 (n)      50,000        51,500   
Suncoke Energy Partners LP/Suncoke Energy Partners Finance Corp., 7.375%, 2/01/20 (n)      30,000        30,900   
Suncoke Energy, Inc., 7.625%, 8/01/19      33,000        33,825   
TMS International Corp., 7.625%, 10/15/21 (n)      70,000        69,650   
Walter Energy, Inc., 9.5%, 10/15/19 (n)      50,000        32,750   
Walter Energy, Inc., 8.5%, 4/15/21      55,000        7,150   
    

 

 

  
             $ 1,292,708   
Midstream - 3.3%                 
AmeriGas Finance LLC, 6.75%, 5/20/20    $ 150,000      $ 156,000   
Blue Racer Midstream LLC/Blue Racer Finance Corp., 6.125%, 11/15/22 (n)      30,000        29,700   
Crestwood Midstream Partners LP, 6%, 12/15/20      95,000        92,625   
Crestwood Midstream Partners LP, 6.125%, 3/01/22      55,000        53,488   
El Paso Corp., 7.75%, 1/15/32      195,000        243,812   
Energy Transfer Equity LP, 7.5%, 10/15/20      135,000        150,215   
Ferrellgas LP/Ferrellgas Finance Corp., 6.5%, 5/01/21      60,000        58,800   
Ferrellgas LP/Ferrellgas Finance Corp., 6.75%, 1/15/22      120,000        117,000   
MarkWest Energy Partners LP/MarkWest Energy Finance Corp., 5.5%, 2/15/23      155,000        159,456   
Sabine Pass Liquefaction LLC, 5.625%, 4/15/23      145,000        145,000   
Sabine Pass Liquefaction LLC, 5.75%, 5/15/24      100,000        100,500   
Summit Midstream Holdings LLC/Summit Midstream Finance Corp., 7.5%, 7/01/21      65,000        68,413   
Summit Midstream Holdings LLC/Summit Midstream Finance Corp., 5.5%, 8/15/22      60,000        57,750   
Targa Resources Partners LP/Targa Resources Finance Corp., 5%, 1/15/18 (n)      25,000        25,495   
Targa Resources Partners LP/Targa Resources Finance Corp., 4.125%, 11/15/19 (n)      50,000        48,750   
Targa Resources Partners LP/Targa Resources Finance Corp., 5.25%, 5/01/23      25,000        24,875   
    

 

 

  
             $ 1,531,879   
Network & Telecom - 0.9%                 
Centurylink, Inc., 6.45%, 6/15/21    $ 20,000      $ 21,650   
Centurylink, Inc., 6.75%, 12/01/23      30,000        33,488   
Centurylink, Inc., 7.65%, 3/15/42      95,000        95,950   
Citizens Communications Co., 9%, 8/15/31      100,000        108,000   
Frontier Communications Corp., 8.125%, 10/01/18      30,000        33,638   
Telecom Italia Capital, 6%, 9/30/34      35,000        35,963   
Windstream Corp., 7.75%, 10/15/20      80,000        83,000   
    

 

 

  
             $ 411,689   
Oil Services - 0.6%                 
Bristow Group, Inc., 6.25%, 10/15/22    $ 105,000      $ 100,013   
Pacific Drilling S.A., 5.375%, 6/01/20 (n)      145,000        108,388   
Shale-Inland Holdings LLC/Finance Co., 8.75%, 11/15/19 (n)      80,000        72,800   
Unit Corp., 6.625%, 5/15/21      4,000        3,760   
    

 

 

  
             $ 284,961   

 

7

Portfolio of Investments (unaudited) – continued

Issuer    Shares/Par     Value ($)  
    
Bonds - continued                 
Oils - 0.2%                 
CITGO Petroleum Corp., 6.25%, 8/15/22 (n)    $ 95,000      $ 92,150   
Other Banks & Diversified Financials - 0.6%                 
Groupe BPCE S.A., 12.5% to 9/30/19, FRN to 8/29/49 (n)    $ 200,000      $ 269,626   
Pharmaceuticals - 1.1%                 
Endo Finance LLC/Endo Finco, Inc., 7.25%, 1/15/22 (n)    $ 135,000      $ 143,438   
Mallinckrodt International Finance S.A., 5.75%, 8/01/22 (n)      90,000        92,925   
Valeant Pharmaceuticals International, Inc., 7%, 10/01/20 (n)      150,000        158,063   
Valeant Pharmaceuticals International, Inc., 7.25%, 7/15/22 (n)      55,000        58,713   
Valeant Pharmaceuticals International, Inc., 5.5%, 3/01/23 (n)      20,000        20,500   
Vantage Point Imaging, 7.5%, 7/15/21 (n)      45,000        49,275   
    

 

 

  
             $ 522,914   
Precious Metals & Minerals - 0.6%                 
Aurico Gold, Inc., 7.75%, 4/01/20 (n)    $ 145,000      $ 140,650   
Eldorado Gold Corp., 6.125%, 12/15/20 (n)      130,000        128,213   
    

 

 

  
             $ 268,863   
Printing & Publishing - 0.6%                 
American Media, Inc., 13.5%, 6/15/18 (z)    $ 23,764      $ 25,160   
Gannett Co., Inc., 4.875%, 9/15/21 (n)      25,000        25,000   
Gannett Co., Inc., 6.375%, 10/15/23      60,000        63,900   
Lamar Media Corp., 5%, 5/01/23      70,000        70,525   
Nielsen Finance LLC, 5%, 4/15/22 (n)      80,000        80,200   
    

 

 

  
             $ 264,785   
Railroad & Shipping - 0.2%                 
Watco Cos. LLC, 6.375%, 4/01/23 (n)    $ 80,000      $ 80,000   
Real Estate - Healthcare - 0.6%                 
Aviv Healthcare Properties LP/Aviv Healthcare, REIT, 6%, 10/15/21    $ 120,000      $ 125,400   
MPT Operating Partnership LP, REIT, 6.375%, 2/15/22      160,000        172,000   
    

 

 

  
             $ 297,400   
Real Estate - Other - 1.0%                 
CNL Lifestyle Properties, Inc., REIT, 7.25%, 4/15/19    $ 75,000      $ 76,500   
DuPont Fabros Technology LP, REIT, 5.875%, 9/15/21      170,000        176,375   
EPR Properties, REIT, 5.75%, 8/15/22      65,000        72,694   
Felcor Lodging LP, REIT, 5.625%, 3/01/23      125,000        127,188   
    

 

 

  
             $ 452,757   
Retailers - 1.1%                 
Best Buy Co., Inc., 5.5%, 3/15/21    $ 130,000      $ 134,225   
Bon Ton Stores, Inc., 8%, 6/15/21      70,000        57,050   
DriveTime Automotive Group, Inc./DT Acceptance Corp., 8%, 6/01/21 (z)      15,000        14,025   
Jo-Ann Stores Holdings, Inc., 9.75%, 10/15/19 (n)(p)      80,000        66,000   
Limited Brands, Inc., 6.95%, 3/01/33      40,000        43,100   
Neiman Marcus Group Ltd., 8%, 10/15/21 (n)      50,000        51,750   
Rite Aid Corp., 9.25%, 3/15/20      70,000        76,825   
Sally Beauty Holdings, Inc., 6.875%, 11/15/19      45,000        47,756   
    

 

 

  
             $ 490,731   
Specialty Chemicals - 0.1%                 
Chemtura Corp., 5.75%, 7/15/21    $ 65,000      $ 63,375   

 

8

Portfolio of Investments (unaudited) – continued

Issuer    Shares/Par     Value ($)  
    
Bonds - continued                 
Specialty Stores - 0.8%                 
Group 1 Automotive, Inc., 5%, 6/01/22 (n)    $ 125,000      $ 123,438   
Michaels Stores, Inc., 5.875%, 12/15/20 (n)      60,000        60,750   
Office Depot de Mexico S.A. de C.V., 6.875%, 9/20/20 (n)      200,000        211,000   
    

 

 

  
             $ 395,188   
Telecommunications - Wireless - 3.8%                 
Digicel Group Ltd., 7.125%, 4/01/22 (n)    $ 200,000      $ 181,190   
Eileme 2 AB, 11.625%, 1/31/20 (n)      200,000        226,315   
Numericable Group S.A., 6%, 5/15/22 (n)      200,000        204,580   
Sprint Capital Corp., 6.875%, 11/15/28      105,000        96,600   
Sprint Corp., 7.875%, 9/15/23      145,000        146,994   
Sprint Corp., 7.125%, 6/15/24      75,000        72,938   
Sprint Nextel Corp., 9%, 11/15/18 (n)      50,000        57,625   
Sprint Nextel Corp., 6%, 11/15/22      110,000        102,575   
T-Mobile USA, Inc., 6.125%, 1/15/22      10,000        10,288   
T-Mobile USA, Inc., 6.5%, 1/15/24      40,000        41,500   
T-Mobile USA, Inc., 6.464%, 4/28/19      25,000        25,906   
T-Mobile USA, Inc., 6.25%, 4/01/21      140,000        144,550   
T-Mobile USA, Inc., 6.633%, 4/28/21      50,000        51,913   
Wind Acquisition Finance S.A., 4.75%, 7/15/20 (n)      200,000        195,000   
Wind Acquisition Finance S.A., 7.375%, 4/23/21 (n)      200,000        194,000   
    

 

 

  
             $ 1,751,974   
Telephone Services - 0.3%                 
Cogent Communications Group, Inc., 8.375%, 2/15/18 (n)    $ 45,000      $ 47,025   
Frontier Communications Corp., 6.25%, 9/15/21      30,000        30,900   
Level 3 Financing, Inc., 8.625%, 7/15/20      45,000        49,073   
    

 

 

  
             $ 126,998   
Transportation - 0.1%                 
Far Eastern Shipping Co., 8%, 5/02/18 (n)    $ 200,000      $ 70,000   
Transportation - Services - 1.4%                 
Aguila American Resources Ltd., 7.875%, 1/31/18 (n)    $ 150,000      $ 147,750   
Jack Cooper Holdings Corp., 9.25%, 6/01/20 (n)      110,000        113,575   
Navios Logistics Finance (U.S.), Inc., 7.25%, 5/01/22 (n)      35,000        33,425   
Navios Maritime Acquisition Corp., 8.125%, 11/15/21 (n)      37,000        35,058   
Navios Maritime Holding, Inc., 7.375%, 1/15/22 (n)      100,000        89,000   
Stena AB, 7%, 2/01/24 (n)      200,000        187,000   
Ultrapetrol (Bahamas) Ltd., 8.875%, 6/15/21      28,000        28,560   
    

 

 

  
             $ 634,368   
Utilities - Electric Power - 1.5%                 
AES Corp., 7.375%, 7/01/21    $ 40,000      $ 44,300   
Calpine Corp., 5.375%, 1/15/23      45,000        45,450   
Calpine Corp., 5.5%, 2/01/24      75,000        75,094   
Covanta Holding Corp., 7.25%, 12/01/20      95,000        100,938   
Covanta Holding Corp., 6.375%, 10/01/22      35,000        37,363   
Covanta Holding Corp., 5.875%, 3/01/24      20,000        20,575   
NRG Energy, Inc., 8.25%, 9/01/20      195,000        206,700   
NRG Energy, Inc., 6.25%, 7/15/22      45,000        46,238   
NRG Energy, Inc., 6.625%, 3/15/23      100,000        103,750   
    

 

 

  
             $ 680,408   
Total Bonds            $ 28,884,303   

 

9

Portfolio of Investments (unaudited) – continued

Issuer    Shares/Par     Value ($)  
    
Common Stocks - 33.8%                 
Aerospace - 1.0%                 
United Technologies Corp.      4,034      $ 463,023   
Alcoholic Beverages - 0.8%                 
Diageo PLC, ADR      3,290      $ 388,648   
Automotive - 0.0%                 
Accuride Corp. (a)      2,414      $ 10,622   
Broadcasting - 1.0%                 
Time Warner, Inc.      5,583      $ 435,083   
Brokerage & Asset Managers - 2.5%                 
BlackRock, Inc.      1,446      $ 492,377   
NASDAQ OMX Group, Inc.      14,514        661,838   
    

 

 

  
             $ 1,154,215   
Business Services - 1.1%                 
Accenture PLC, “A”      5,899      $ 495,693   
Chemicals - 1.9%                 
3M Co.      3,199      $ 519,198   
PPG Industries, Inc.      1,641        365,746   
    

 

 

  
             $ 884,944   
Computer Software - Systems - 0.9%                 
International Business Machines Corp.      2,660      $ 407,805   
Electrical Equipment - 2.4%                 
Danaher Corp.      6,850      $ 564,303   
Tyco International PLC      13,669        557,832   
    

 

 

  
             $ 1,122,135   
Electronics - 1.0%                 
Texas Instruments, Inc.      8,916      $ 476,560   
Energy - Independent - 1.1%                 
California Resources Corp. (a)      2,490      $ 12,749   
Occidental Petroleum Corp.      6,227        498,160   
    

 

 

  
             $ 510,909   
Food & Beverages - 2.1%                 
General Mills, Inc.      7,766      $ 407,560   
Nestle S.A., ADR      7,394        565,715   
    

 

 

  
             $ 973,275   
Food & Drug Stores - 1.5%                 
CVS Health Corp.      7,004      $ 687,513   
General Merchandise - 0.9%                 
Target Corp.      5,392      $ 396,905   
Insurance - 3.4%                 
Aon PLC      5,628      $ 506,801   
MetLife, Inc.      7,806        362,979   

 

10

Portfolio of Investments (unaudited) – continued

Issuer    Shares/Par     Value ($)  
    
Common Stocks - continued                 
Insurance - continued                 
Travelers Cos., Inc.      6,730      $ 691,979   
    

 

 

  
             $ 1,561,759   
Major Banks - 1.4%                 
JPMorgan Chase & Co.      11,789      $ 641,086   
Medical Equipment - 2.4%                 
Abbott Laboratories      6,294      $ 281,719   
St. Jude Medical, Inc.      5,442        358,465   
Thermo Fisher Scientific, Inc.      3,732        467,284   
    

 

 

  
             $ 1,107,468   
Other Banks & Diversified Financials - 1.0%                 
U.S. Bancorp      11,096      $ 465,033   
Pharmaceuticals - 3.6%                 
Johnson & Johnson      5,974      $ 598,236   
Merck & Co., Inc.      9,563        576,458   
Pfizer, Inc.      15,129        472,781   
    

 

 

  
             $ 1,647,475   
Restaurants - 0.9%                 
McDonald’s Corp.      4,508      $ 416,720   
Special Products & Services - 0.3%                 

iShares iBoxx $ High Yield Corporate Bond ETF

      1,700      $ 153,391   
Telephone Services - 1.3%                 
Verizon Communications, Inc.      13,056      $ 596,790   
Tobacco - 1.3%                 
Philip Morris International, Inc.      7,655      $ 614,237   
Total Common Stocks            $ 15,611,289   
Floating Rate Loans (g)(r) - 1.7%                 
Aerospace - 0.2%                 
TransDigm, Inc., Term Loan C, 3.75%, 2/28/20    $ 76,359      $ 75,161   
Business Services - 0.1%                 
Fleetcor Technologies, Inc., Term Loan B, 3.75%, 9/30/21    $ 26,241      $ 26,241   
Conglomerates - 0.1%                 
Silver II U.S. Holdings LLC, Term Loan, 4%, 12/13/19    $ 61,387      $ 57,269   
Consumer Services - 0.1%                 
Realogy Corp., Term Loan B, 3.75%, 3/05/20    $ 33,856      $ 33,272   
Containers - 0.1%                 
Berry Plastics Group, Inc., Term Loan E, 3.75%, 1/06/21    $ 45,005      $ 44,314   
Energy - Independent - 0.1%                 
MEG Energy Corp., Term Loan, 3.75%, 3/31/20    $ 45,488      $ 42,740   
Entertainment - 0.1%                 
Cedar Fair LP, Term Loan B, 3.25%, 3/06/20    $ 43,246      $ 43,138   

 

11

Portfolio of Investments (unaudited) – continued

Issuer    Shares/Par     Value ($)  
    
Floating Rate Loans (g)(r) - continued                 
Medical & Health Technology & Services - 0.2%                 
Community Health Systems, Inc., Term Loan D, 4.25%, 1/27/21    $ 15,598      $ 15,583   
DaVita HealthCare Partners, Inc., Term Loan B, 3.5%, 6/24/21      77,363        76,927   
    

 

 

  
             $ 92,510   
Metals & Mining - 0.1%                 
FMG Resources Ltd., Term Loan B, 3.75%, 6/30/19    $ 50,045      $ 44,093   
Retailers - 0.1%                 
Dollar Tree, Inc., Bridge Term Loan, 8/06/15 (o)    $ 70,000      $ 70,000   
Supermarkets - 0.1%                 
Albertson’s Holdings LLC, Term Loan B4, 5.5%, 8/25/21    $ 53,754      $ 53,634   
Telephone Services - 0.2%                 
Level 3 Financing, Inc., Term Loan B, 4.5%, 1/31/22    $ 78,444      $ 78,509   
Transportation - Services - 0.2%                 
Commercial Barge Line Co., Term Loan, 7.5%, 9/20/19    $ 119,627      $ 118,880   
Total Floating Rate Loans            $ 779,761   
Money Market Funds - 0.6%                 
MFS Institutional Money Market Portfolio, 0.11%, at Net Asset Value (v)      289,364      $ 289,364   
Total Investments            $ 45,564,717   
Other Assets, Less Liabilities - 1.4%              638,110   
Net Assets - 100.0%            $ 46,202,827   

 

(a) Non-income producing security.
(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.
(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 $11,149,429, representing 24.1% of net assets.
(o) All or a portion of this position has not settled. Upon settlement date, interest rates for unsettled amounts will be determined. The rate shown, if any, represents the weighted average coupon rate for settled amounts.
(p) Payment-in-kind security.
(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 affiliated fund 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:

 

Restricted Securities    Acquisition
Date		    Cost      Value  
American Media, Inc., 13.5%, 6/15/18    12/22/10      $23,980         $25,160   
Avaya, Inc., 10.5%, 3/01/21    12/11/14-12/15/14      16,422         16,375   
DriveTime Automotive Group, Inc./DT Acceptance Corp., 8%, 6/01/21    12/08/14      14,189         14,025   
Falcon Franchise Loan LLC, FRN, 20.252%, 1/05/25    1/29/03      1,567         5,169   
Kindred Escrow Corp. II, 8%, 1/15/20    12/11/14-12/12/14      50,000         53,060   
LGE Holdco VI B.V., 7.125%, 5/15/24    7/21/11-1/17/12      141,411         127,831   
Morgan Stanley Capital I, Inc., FRN, 1.418%, 4/28/39    7/20/04      1,960         769   

 

12

Portfolio of Investments (unaudited) – continued

Restricted Securities - continued    Acquisition
Date		    Cost      Value  
Rayonier AM Products, Inc., 5.5%, 6/01/24    12/22/14      $16,501         $17,050   
Sensata Technologies B.V., 5.625%, 11/01/24    10/07/14-10/16/14      40,183         42,300   
Total Restricted Securities         $301,739   
% of Net assets         0.7%   

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

 

ADR   American Depositary Receipt
ETF   Exchange-Traded Fund
FRN   Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end.
PLC   Public Limited Company
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:

 

EUR   Euro

Derivative Contracts at 1/31/15

Forward Foreign Currency Exchange Contracts at 1/31/15

 

Type    Currency      Counterparty    Contracts to
Deliver/Receive		    Settlement
Date Range		    In Exchange
For		      Contracts
at Value		      Net Unrealized
Appreciation
(Depreciation)		  
Asset Derivatives            
SELL      EUR      

Credit Suisse Group

    58,755    4/10/15    $ 70,066       $ 66,431       $ 3,635   
                    

 

 

  

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

 

13

Supplemental Information

1/31/15 (unaudited)

The fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies.

(1) Investment Valuations

Equity securities, including restricted equity securities, are generally valued at the last sale or official closing price as provided by a third-party pricing service on the market or exchange on which they are primarily traded. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation as provided by a third-party pricing service on the market or exchange on which such securities are primarily traded. 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. 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. Open-end investment companies are generally valued at net asset value per share. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. Values obtained from third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. The values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and asked prices for rates provided by a third-party pricing service.

The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under the fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. Events that occur on a frequent basis after foreign markets close (such as developments in foreign markets and significant movements in the U.S. markets) and prior to the determination of the fund’s net asset value may be deemed to have a material effect on the value of securities traded in foreign markets. Accordingly, the fund’s foreign equity securities may often be valued at fair value. 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).

 

14

Supplemental Information (unaudited) – continued

Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments not reflected in total investments, such as forward foreign currency exchange contracts. The following is a summary of the levels used as of January 31, 2015 in valuing the fund’s assets or liabilities:

 

Investments at Value    Level 1      Level 2      Level 3      Total  
Equity Securities      $15,611,289         $—         $—         $15,611,289   
Non-U.S. Sovereign Debt      —         103,878         —         103,878   
U.S. Corporate Bonds      —         22,276,183         —         22,276,183   
Commercial Mortgage-Backed Securities      —         39,299         —         39,299   
Foreign Bonds      —         6,464,943         —         6,464,943   
Floating Rate Loans      —         779,761         —         779,761   
Mutual Funds      289,364         —         —         289,364   
Total Investments      $15,900,653         $29,664,064         $—         $45,564,717   
Other Financial Instruments                            
Forward Foreign Currency Exchange Contracts      $—         $3,635         $—         $3,635   

For further information regarding security characteristics, see the Portfolio of Investments.

(2) Portfolio Securities

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

 

Aggregate cost      $43,235,706   
Gross unrealized appreciation      4,534,455   
Gross unrealized depreciation      (2,205,444 ) 
Net unrealized appreciation (depreciation)      $2,329,011   

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

(3) Transactions in Underlying Affiliated 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 fund assumes the following to be an affiliated issuer:

 

Underlying Affiliated Fund    Beginning
Shares/Par
Amount		      Acquisitions
Shares/Par
Amount		      Dispositions
Shares/Par
Amount		      Ending
Shares/Par
Amount		  
MFS Institutional Money Market Portfolio      1,172,304         1,497,715         (2,380,655 )       289,364   
Underlying Affiliated Fund    Realized
Gain (Loss)		      Capital Gain
Distributions		      Dividend
Income		      Ending
Value		  
MFS Institutional Money Market Portfolio      $—         $—         $216         $289,364   

 

15

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 SPECIAL VALUE TRUST

 

By (Signature and Title)*   ROBIN A. STELMACH
  Robin A. Stelmach, President

Date: March 17, 2015

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)*   ROBIN A. STELMACH
  Robin A. Stelmach, President (Principal Executive Officer)

Date: March 17, 2015

 

By (Signature and Title)*   DAVID L. DILORENZO
  David L. DiLorenzo, Treasurer (Principal Financial Officer and Accounting Officer)

Date: March 17, 2015

 

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