6 9

North Carolina Municipal Bond Fund

MSNCX
$ 10.90
$0.09 As of 11/08/24
$466M
As of 09/30/24
Morningstar
View Overall Morningstar Ratings Information

North Carolina Municipal Bond Fund

MSNCX
$0.09 As of 11/08/24
As of 09/30/24
MSNCX
$ 10.9
$0.09 As of 11/08/24
$466M
As of 09/30/24
Morningstar
View Overall Morningstar Ratings Information
  • Overview

    INVESTMENT OBJECTIVE

    Seeks total return with an emphasis on income exempt from federal income tax and North Carolina personal income tax, if any, but also considering capital appreciation.

    INVESTMENT FOCUS

    Performance sought from sector/security selection and yield curve analysis

    Seeks to provide double tax free income for in-state residents (income that is exempt from federal and state taxes)

    Fund Information

    • Fund Commencement 10/31/1984
    • Net Assets ($ M) As of 09/30/24 $466.48
    • Fiscal Year End MARCH
    • Benchmark

      Bloomberg Municipal Bond Index measures the municipal bond market.
      Bloomberg Municipal Bond Index

    Share Class Information

    • Class Inception 10/31/1984
    • Net Asset Value (NAV) As of 11/08/24 $10.90
    • Most Recent NAV Change As of 11/08/24 $0.09 | 0.83%
    • Fund Number 41
    • Maximum Sales Charge 4.25%
    • Gross Expense Ratio

      Gross Expense Ratio: The Gross Expense Ratio is the fund's total operating expense ratio from the fund's most recent prospectus.
      0.86%
    • Net Expense Ratio

      Net Expense Ratio: The Net Expense Ratio reflects the reduction of expenses from contractual fee waivers and reimbursements. Elimination of these reductions will result in higher expenses and lower performance.


      These reductions will continue until at least 07/31/25
      0.84%

    MANAGERS

    Michael Dawson
    Michael Dawson

    Portfolio Manager

    26 YEARS WITH PORTFOLIO

    Top 10 Holdings

    As of 09/30/24
    • University of North Carolina at Chapel Hill Univ Of NC Hosp At Chapel Hill 5.000 FEB 01 46
    • PR Sales Tax Financing Corp Sales Tax Revenue PR Restructured-Ser A-1 5.000 JUL 01 58
    • North Carolina Turnpike Authority NC Triangle Expressway System Sen AGM 5.000 JAN 01 58
    • North Carolina Housing Finance Agency NC Social Bonds-1998 Trust Agreem 5.500 JAN 01 54
    • North Carolina Capital Facilities Finance Agency NC Ref-Duke University-Ser B 5.000 OCT 01 44
    • North Carolina Housing Finance Agency NC Social Bonds-1998 Trust Agreem 5.000 JUL 01 47
    • North Carolina Housing Finance Agency NC M-Tems-Cabarrus Arms Apartment 4.450 MAY 01 40
    • County of Johnston NC Water & Sewer System Revenue NC 4.000 APR 01 53
    • City of Charlotte NC Airport Revenue NC Charlotte Douglas Internationa 4.000 JUL 01 52
    • North Carolina Medical Care Commission NC Novant Health Obligated Group- 4.000 NOV 01 52
    Full and Historical Holdings
    The portfolio is actively managed, and current holdings may be different.

    Important Risk Considerations

    The fund may not achieve its objective and/or you could lose money on your investment in the fund.

    Bond: Investments in debt instruments may decline in value as the result of, or perception of, declines in the credit quality of the issuer, borrower, counterparty, or other entity responsible for payment, underlying collateral, or changes in economic, political, issuer-specific, or other conditions. Certain types of debt instruments can be more sensitive to these factors and therefore more volatile. In addition, debt instruments entail interest rate risk (as interest rates rise, prices usually fall). Therefore, the portfolio's value may decline during rising rates. Portfolios that consist of debt instruments with longer durations are generally more sensitive to a rise in interest rates than those with shorter durations. At times, and particularly during periods of market turmoil, all or a large portion of segments of the market may not have an active trading market. As a result, it may be difficult to value these investments and it may not be possible to sell a particular investment or type of investment at any particular time or at an acceptable price. The price of an instrument trading at a negative interest rate responds to interest rate changes like other debt instruments; however, an instrument purchased at a negative interest rate is expected to produce a negative return if held to maturity.

    Derivatives: Investments in derivatives can be used to take both long and short positions, be highly volatile, involve leverage (which can magnify losses), and involve risks in addition to the risks of the underlying indicator(s) on which the derivative is based, such as counterparty and liquidity risk.

    Municipal Bond: Investments in municipal instruments can be volatile and significantly affected by adverse tax or court rulings, legislative or political changes, market and economic conditions, issuer, industry-specific (including the credit quality of municipal insurers), and other conditions. Because many municipal instruments are issued to finance similar projects, conditions in certain industries can significantly affect the portfolio and the overall municipal market.

    Concentrated: The portfolio's performance could be closely tied to the economic, political, and other conditions in the state and other states and U.S. territories and possessions in which the portfolio invests and could be more volatile than the performance of more geographically diversified portfolios.

    Please see the prospectus for further information on these and other risk considerations.

  • Performance

    Performance

    Collapse Expand
    Average Annual Total Returns

    Average Annual Total Returns (%)

    These results represent the percent change in net asset value.
    Monthly | Quarterly As of 09/30/24 (*YTD Updated Daily, As of 11/07/24 , subject to revision and not annualized.)
      Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or higher than quoted.
      MORNINGSTAR RATING
      Morningstar Overall Rating As of 09/30/24 Class A Shares

      Morningstar Muni Single State Long

      Morningstar ratings are based on risk adjusted performance.
      Morningstar View Overall Morningstar Ratings Information
      OVERALL
      Out Of Funds
      NA
      OVERALL MORNINGSTAR RATING
      Morningstar Overall Rating As of 09/30/24 Class A Shares

      Morningstar Muni Single State Long

      Morningstar ratings are based on risk adjusted performance.
      NA
      THREE YEAR
      Out Of Funds
      NA
      FIVE YEAR
      Out Of Funds
      NA
      TEN YEAR
      Out Of Funds
      NA

      Important Performance Information

      Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers the fund's performance results would be less favorable. All results are historical and assume the reinvestment of dividends and capital gains.

      A small portion of income may be subject to state, federal, and/or alternative minimum tax. Capital gains, if any, are subject to a capital gains tax.

      Sales Charges

      Class A shares ("A") results include the maximum sales charge.

      Annual Rate of Return

      Annual Rate of Return (%)

      As of 12/31/23 | Benchmark: Bloomberg Municipal Bond Index
      annual rate of return table
      2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
      At NAV 9.57 3.05 0.21 4.35 0.69 6.84 3.80 2.16 -9.74 5.88
      With Sales Charge 4.92 -1.33 -4.05 -0.08 -3.59 2.30 -0.61 -2.18 -13.58 1.38
      Bloomberg Municipal Bond Index 9.05 3.30 0.25 5.45 1.28 7.54 5.21 1.52 -8.53 6.40
      At NAV With Sales Charge Bloomberg Municipal Bond Index
      2023 5.88 1.38 6.4
      2022 -9.74 -13.58 -8.53
      2021 2.16 -2.18 1.52
      2020 3.8 -0.61 5.21
      2019 6.84 2.3 7.54
      2018 0.69 -3.59 1.28
      2017 4.35 -0.08 5.45
      2016 0.21 -4.05 0.25
      2015 3.05 -1.33 3.3
      2014 9.57 4.92 9.05
      Pricing & Distributions

      Pricing History

      • NAV at Close of Trading on:  11/08/24
      • Net Asset Value (NAV):  $10.90
      • Change ($) (since 11/07/24 ):  0.09
      • Change (%) (since 11/07/24 ):  0.83
      • Market Price (MP): 
      Maximum data displayed is for the most recent 10 years
      Historical NAV Lookup
      Enter date for which you wish to obtain a Historical NAV for this fund

      Historical NAV may not be available for all dates.

      Historical MP Lookup
      Enter date for which you wish to obtain a Historical MP for this fund

      Historical MP may not be available for all dates.

      Historical Exit Price Table
      NAV at Close of Trading on Net Asset Value (NAV)
      No Data Available

      Distribution Rates (%)

      The distribution rates are computed by annualizing the current distribution rate per share (excluding short-term capital gains), and dividing the result by the public offering price (for the distribution rate including sales charge) or net asset value (for the distribution rate not including sales charge) at the end of the business day.

      As of 09/30/24

      Charges Distribution Rate
      Not Including Sales Charges 3.02
      Including Sales Charges 2.89

      30-Day SEC Yield (%)
      The fund's 30-day yield is based on the yield of a fund's investments over a 30-day period and not on the dividend paid by the fund, which may differ.

      As of 09/30/24

      Wavier Yield Value
      Without Waiver 2.90
      With Waiver 2.92

      Distributions
      The Record Date is the date on which a fund declares a distribution. To receive the distribution, an investor must be a shareholder of record on that date.

      The Payable Date is the date on which the distribution is paid to shareholders.

      Dividend Rate per Share is the amount of dividend that a shareholder will receive for each share held. It can be calculated by taking the total amount of dividends paid and dividing it by the total shares outstanding.

      Dividend Reinvestment at NAV is the automatic reinvestment of shareholder dividends in more shares at net asset value.

      Ex-Dividend Date is the date on which a fund goes ex-dividend. The interval between the announcement and the payment of the next dividend. An investor must own the fund before the ex-dividend date to be eligible for the dividend payout.

      Long-term Capital Gain The gain on the sale of a capital asset where the holding period was more than 12 months and the profit was subject to the long-term capital gains tax. (Source: Barron's Dictionary of Finance and Investment Terms)

      Short-term Capital Gain For tax purposes the profit realized from the sale of securities or other capital assets held for less than 12 months. Short-term gains are taxable at ordinary income rates to the extent they are not reduced by offsetting capital losses. (Source: Barron's Dictionary of Finance and Investment Terms)

      Updated Daily As of 11/08/24

      Record Date Ex-Date Payable Date Type of Earnings Rate per Share (US$) Reinvestment NAV (US$)
      10/31/24 10/31/24 11/01/24 Dividend 0.02978 10.86
      09/30/24 09/30/24 10/01/24 Dividend 0.02745 11.06
      08/30/24 08/30/24 09/03/24 Dividend 0.02814 10.95
      07/31/24 07/31/24 08/01/24 Dividend 0.02831 10.91
      06/28/24 06/28/24 07/01/24 Dividend 0.02719 10.83
      05/31/24 05/31/24 06/03/24 Dividend 0.02788 10.64
      04/30/24 04/30/24 05/01/24 Dividend 0.02671 10.67
      03/28/24 03/28/24 04/01/24 Dividend 0.02801 10.83
      02/29/24 02/29/24 03/01/24 Dividend 0.02655 10.85
      01/31/24 01/31/24 02/01/24 Dividend 0.02822 10.88
      12/29/23 12/29/23 12/29/23 Dividend 0.02799 10.91
      11/30/23 11/30/23 12/01/23 Dividend 0.02652 10.64
      Past performance is no guarantee of future results. Please consult your tax advisor for further information.
    • Portfolio & Holdings Information

      Portfolio & Holdings Information
      Portfolio characteristic data are based on unaudited net assets.

      The portfolio is actively managed, and current holdings may be different.

      • Select All
      • Holding Characteristics
      • Performance Statistics
      • Top 10 Holdings
      • Portfolio Structure (%)
      • Credit Quality (%)
      Collapse Expand
      Sector, Holding & Characterstics

      Holding Characteristics
      Average Coupon: Average Coupon is the equivalent exposure weighted coupon of all interest bearing instruments as a percent of the total equivalent exposure of all fixed income holdings, including short term and interest rate derivatives which have coupons. Coupons are netted for securities with a payable and receivable leg. Non-accruing securities are treated as having a coupon equal to zero.

      Average Effective Duration is a measure of how much a bond's price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value.

      Average Effective Maturity is a weighted average of maturity of the bonds held in a portfolio, taking into account any prepayments, puts, and adjustable coupons which may shorten the maturity. Longer-maturity funds are generally considered more interest-rate sensitive than shorter maturity funds.

      Weighted average yield-to-worst of all portfolio holdings excluding cash & derivatives. Yield-to-worst is the annual estimate of the portfolio yield considering factors such as call provisions, prepayments, and other features that may affect a bond's cash flow; and assumes no default. It is an estimated characteristic at a point in time and is not a measure of portfolio performance.

      As of 09/30/24
      Data table of holding characteristics
      characteristics Fixed Earning
      Number of Issues 281
      Number of Issuers 109
      Average Coupon 4.52
      Average Effective Duration 7.49 yrs
      Average Effective Maturity 17.24 yrs
      Yield To Worst 3.83%

      Performance Statistics

      Alpha is a measure of the portfolio's risk-adjusted performance. When compared to the portfolio's beta, a positive alpha indicates better-than-expected portfolio performance and a negative indicates alpha worse-than-expected portfolio performance.

      Beta is a measure of the volatility of a portfolio relative to the overall market. A beta less than 1.0 indicates lower risk than the market; a beta greater than 1.0 indicates higher risk than the market. It is most reliable as a risk measure when the return fluctuations of the portfolio are highly correlated with the return fluctuations of the index chosen to represent the market.

      Information ratio is a measure of consistency in excess return. It is calculated by taking the annualized excess return over a benchmark and dividing it by the annualized standard deviation of excess return.

      R squared represents the percentage of the portfolio's movements that can be explained by the general movements of the market.  Index portfolios will tend to have values very close to 100.  R squared is not a measure of performance.

      The Sharpe Ratio is a risk-adjusted measure calculated to determine reward per unit of risk. It uses a standard deviation and excess return. The higher the Sharpe Ratio, the better the portfolio's historical risk-adjusted performance.

      Standard Deviation is an indicator of the portfolio's total return volatility, which is based on a minimum of 36 monthly returns. The larger the portfolio's standard deviation, the greater the portfolio's volatility.

      Tracking error is the standard deviation of a portfolio's excess returns. Excess returns are a portfolio's return minus the benchmark's annualized return.

      Treynor Ratio: Treynor Ratio is a risk adjusted measure of performance. It is the ratio of the annualized excess return of the portfolio over the risk free rate for a given period divided by the Beta of the portfolio versus its benchmark for the same period. It measures the amount of excess return over the risk free rate earned per unit of systematic risk (beta) assumed.

      Upside and downside capture is a measure of how well a manager was able to replicate or improve on phases of positive benchmark returns, and how badly the manager was affected by phases of negative benchmark returns. Upside capture ratio for a portfolio is calculated by taking the portfolio's return during periods when the benchmark had a positive return and dividing it by the benchmark return during that same period. Downside capture ratio is calculated by taking the portfolio's return during the periods of negative benchmark performance and dividing it by the benchmark return for that period.

      Updated Monthly As of 09/30/24
      Benchmark
      Bloomberg Municipal Bond Index
      Performance Statistics Table
      10 Yr. 5 Yr. 3 Yr.
      Alpha -0.50 -0.44 -0.11
      Beta 1.07 1.12 1.10
      R-squared 96.19 97.21 97.94
      Standard Deviation % 5.49 7.32 8.33
      Sharpe Ratio 0.10 -0.17 -0.43
      Tracking Error 1.12 1.44 1.40
      Information Ratio -0.32 -0.22 -0.10
      Treynor Ratio 0.51 -1.11 -3.30
      Downside Capture % 103.77 110.57 106.53
      Upside Capture % 97.81 105.50 105.14

      Top 10 Holdings

      As of 09/30/24
      • University of North Carolina at Chapel Hill Univ Of NC Hosp At Chapel Hill 5.000 FEB 01 46
      • PR Sales Tax Financing Corp Sales Tax Revenue PR Restructured-Ser A-1 5.000 JUL 01 58
      • North Carolina Turnpike Authority NC Triangle Expressway System Sen AGM 5.000 JAN 01 58
      • North Carolina Housing Finance Agency NC Social Bonds-1998 Trust Agreem 5.500 JAN 01 54
      • North Carolina Capital Facilities Finance Agency NC Ref-Duke University-Ser B 5.000 OCT 01 44
      • North Carolina Housing Finance Agency NC Social Bonds-1998 Trust Agreem 5.000 JUL 01 47
      • North Carolina Housing Finance Agency NC M-Tems-Cabarrus Arms Apartment 4.450 MAY 01 40
      • County of Johnston NC Water & Sewer System Revenue NC 4.000 APR 01 53
      • City of Charlotte NC Airport Revenue NC Charlotte Douglas Internationa 4.000 JUL 01 52
      • North Carolina Medical Care Commission NC Novant Health Obligated Group- 4.000 NOV 01 52

      Full and Historical Holdings

      The portfolio is actively managed, and current holdings may be different.
      Exposures

      Portfolio Structure (%)

      As of 09/30/24
      • Municipals
        99.72
      • High Yield Corporates
        0.27
      • Cash & Cash Equivalents
        0.02

      Credit Quality (%)

      For all securities other than those described below, ratings are assigned utilizing ratings from Moody’s, Fitch, and Standard & Poor’s and applying the following hierarchy: If all three agencies provide a rating, the consensus rating is assigned if applicable or the middle rating if not; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 Rating Agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Other Not Rated includes other fixed income securities not rated by any rating agency. Ratings are shown in the S&P and Fitch scale (e.g., AAA). All ratings are subject to change. The portfolio itself has not been rated by any rating agency. The credit quality of a particular security or group of securities does not ensure the stability or safety of an overall portfolio. The quality ratings of individual issues/issuers are provided to indicate the credit-worthiness of such issues/ issuer and generally range from AAA, Aaa, or AAA (highest) to D, C, or D (lowest) for S&P, Moody’s, and Fitch respectively. The index rating methodology may differ.

      As of 09/30/24
      • % of Total Net Assets
      • AAA
        5.59
      • AA
        50.86
      • A
        19.95
      • BBB
        13.06
      • BB
        1.11
      • B
        0.60
      • CCC
        0.04
      • Other Not Rated
        8.79
      Important Characteristics Information
      The portfolio is actively managed, and current holdings may be different.

      Portfolio characteristics are based on equivalent exposure, which measures how a portfolio's value would change due to price changes in an asset held either directly or, in the case of a derivative contract, indirectly. The market value of the holding may differ.

      *Short positions, unlike long positions, lose value if the underlying asset gains value.

    • Fees

      Fees

      • 0.84 % Net Expense Ratio

        Net Expense Ratio: The Net Expense Ratio reflects the reduction of expenses from contractual fee waivers and reimbursements. Elimination of these reductions will result in higher expenses and lower performance.


        These reductions will continue until at least 07/31/25
      • 0.86 % Gross Expense Ratio

        Gross Expense Ratio: The Gross Expense Ratio is the fund's total operating expense ratio from the fund's most recent prospectus.
      • 4.25 % Maximum Sales Charge
        Class A shares ("A") results include the maximum sales charge.
    • Resources

      Resources

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      Product Resources

      Fact Sheets are available approximately 15 days after quarter end.


      Quarterly Portfolio Review is available approximately 25 days after quarter end.


      Product Presentation available approximately 25 days after quarter end.


      Quarterly Investment Update available approximately 25 days after quarter end.


      Full Holdings available approximately 19 or 24 days after month end.


      Performance Attribution available approximately 15 or 25 days after month end.

      Product Resources

      Morningstar
      Quick Hypothetical Illustration
      Customizable Hypothetical Illustration
      Prospectuses & SAIs
      Shareholder Reports

      Shareholder Reports

      Click here to access the following:
      • Semiannual Report
      • Annual Report
      • Financial and Other Information
      • First Quarter Holdings
      • Third Quarter Holdings
      Product Literature

      Product Literature

      Market Declines: A History of Recoveries
      As of Mar 06, 2024

      Flyer showing market declines over time and how recoveries have played out over the long-term.

      The Power of Active Management brochure
      As of Sep 30, 2024

      Collective expertise, long-term discipline and risk management

      Monthly Distribution Report
      As of Sep 30, 2024

      Monthly Fact Sheet

      Why a multi-asset approach could matter
      As of May 30, 2024

      Flyer describing potential benefits of multi-asset investing and highlighting several MFS Funds

      Barron's Box Flyer
      As of Mar 06, 2024

      Flyer showing MFS' annual rankings from Barron's since 2008

      2024 Dividend and Capital Gains Schedule
      As of Jan 05, 2024

      Announcements

      Announcements

      2024 Capital Gain Estimates
      As of Nov 08, 2024

      MORNINGSTAR RATINGS

      The fund's overall Morningstar Rating measures are based on risk-adjusted returns as of 09/30/24.

      The Morningstar Rating for funds, or "star rating", is calculated for funds with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

      Morningstar rankings may vary among share classes and are based on historical total returns, which are not indicative of future results. Class A share star ratings do not include any front-end sales load and are intended for those investors who have access to such purchase terms (e.g., plan participants of a defined contribution plan). Therefore, Morningstar strongly encourages investors to contact their investment professional to determine whether they are eligible to purchase the A share without paying the front load.

      This website is a general communication and is provided for informational and/or educational purposes only. None of the content should be viewed as a suggestion that you take or refrain from taking any action nor as a recommendation for any specific investment product, strategy, plan feature or other such purpose. Your use of this website indicates that you agree with the intended purpose. Prior to making any investment or financial decision, you should seek individualized advice from a personal financial, tax, and other professionals who are able to provide advice in the context of your particular financial situation.

      This publication is authorized for distribution only when preceded or accompanied by a prospectus, or summary prospectus, for the portfolio being offered. Consider the fund's investment objectives, risks, charges and expenses. Contact MFS or view online at MFS.com. Read it carefully.

      MFS registered investment products are offered through MFS® Fund Distributors, Inc., 111 Huntington Avenue, Boston, MA 02199.
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