UNITED STATES
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05567
MFS INTERMEDIATE HIGH INCOME FUND
(Exact name of registrant as specified in charter)
111 Huntington Avenue, Boston, Massachusetts 02199 (Address of principal executive offices) (Zip code)
Christopher R. Bohane
Massachusetts Financial Services Company
111Huntington 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: November 30
Date of reporting period: May 31, 2023
ITEM 1. REPORTS TO STOCKHOLDERS.
Item 1(a):
Semiannual Report
May 31, 2023
MFS® Intermediate High
Income Fund
MANAGED DISTRIBUTION POLICY
DISCLOSURE
The MFS Intermediate High Income
Fund’s (the fund) Board of Trustees adopted a managed distribution policy. The fund seeks to pay monthly distributions based on an annual rate of 9.50% of the fund’s average monthly net asset value. The
primary purpose of the managed distribution policy is to provide shareholders with a constant, but not guaranteed, fixed rate of distribution each month. You should not draw any conclusions about the fund’s
investment performance from the amount of the current distribution or from the terms of the fund’s managed distribution policy. The Board may amend or terminate the managed distribution policy at any time
without prior notice to fund shareholders. The amendment or termination of the managed distribution policy could have an adverse effect on the market price of the fund’s shares.
With each distribution, the fund
will issue a notice to shareholders and an accompanying press release which will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and
sources of distributions reported in the notice to shareholders are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will
depend upon the fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will
tell you how to report these distributions for federal income tax purposes. Please refer to “Tax Matters and Distributions” under Note 2 of the Notes to Financial Statements for information regarding the
tax character of the fund’s distributions.
Under a managed distribution policy
the fund may at times distribute more than its net investment income and net realized capital gains; therefore, a portion of your distribution may result in a return of capital. A return of capital may occur, for
example, when some or all of the money that you invested in the fund is paid back to you. Any such returns of capital will decrease the fund’s total assets and, therefore, could have the effect of increasing the
fund’s expense ratio. In addition, in order to make the level of distributions called for under its managed distribution policy, the fund may have to sell portfolio securities at a less than opportune time. A
return of capital does not necessarily reflect the fund’s investment performance and should not be confused with ‘yield’ or ‘income’. The fund’s total return in relation to changes
in net asset value is presented in the Financial Highlights.
MFS® Intermediate High
Income Fund
New York Stock Exchange Symbol: CIF
| 1
|
| 3
|
| 3
|
| 4
|
| 17
|
| 18
|
| 20
|
| 21
|
| 22
|
| 24
|
| 36
|
| 37
|
| 37
|
| 37
|
| 37
|
NOT FDIC INSURED
• MAY LOSE VALUE • NO BANK GUARANTEE
Portfolio structure (i)
Top five industries (i)
| Cable TV
| 12.2%
|
| Medical & Health Technology & Services
| 8.2%
|
| Midstream
| 7.5%
|
| Consumer Services
| 6.5%
|
| Gaming & Lodging
| 5.9%
|
Composition including fixed income credit quality
(a)(i)
| BBB
| 2.6%
|
| BB
| 61.5%
|
| B
| 56.7%
|
| CCC
| 19.3%
|
| Not Rated
| 3.5%
|
| Non-Fixed Income
| (2.3)%
|
Cash & Cash Equivalents
(Less Liabilities) (b)
| (40.8)%
|
| Other
| (0.5)%
|
Portfolio facts
| Average Duration (d)
| 5.6
|
| Average Effective Maturity (m)
| 5.1 yrs.
|
| (a)
| For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard &
Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies
rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4
rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA).
Securities rated BBB or higher are considered investment grade. All ratings are subject to change. Not Rated includes fixed income securities and fixed income derivatives that have not been rated by any rating agency.
Non-Fixed Income includes equity securities (including convertible bonds and equity derivatives), ETFs and Options on ETFs, and/or commodity-linked derivatives. The fund may or may not have held all of these
instruments on this date. The fund is not rated by these agencies.
|
Portfolio Composition - continued
| (b)
| Cash & Cash Equivalents (Less Liabilities) includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Liabilities include the
value of outstanding borrowings made by the fund for leverage transactions. Cash & Cash Equivalents (Less Liabilities) is negative due to these borrowings. Please see the Statement of Assets and Liabilities for
additional information related to the fund’s cash position and other assets and liabilities. Please see Note 6 in the Notes to Financial Statements for more information on the fund's outstanding borrowings.
|
| (d)
| Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is
likely to lose about 5.00% of its value due to the interest rate move. The Average Duration calculation reflects the impact of the equivalent exposure of derivative positions, if any.
|
| (f)
| The fund invests a portion of its assets in Exchange-Traded Funds (ETFs) or Options on ETFs to gain fixed income exposure. Percentages include the direct exposure from investing in
ETFs or Options on ETFs and not the indirect exposure to the underlying holdings.
|
| (i)
| For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may
be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to
hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more
representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts.
|
| (m)
| In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s
stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening feature (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an
earlier date can be substantially shorter than the instrument’s stated maturity.
|
Where the fund holds convertible
bonds, they are treated as part of the equity portion of the portfolio.
Other includes equivalent exposure
from currency derivatives and/or any offsets to derivative positions and may be negative.
Percentages are based on net assets
as of May 31, 2023.
The portfolio is actively managed
and current holdings may be different.
Portfolio Managers' Profiles
| Portfolio Manager
| Primary Role
| Since
| Title and Five Year History
|
| David Cole
| Portfolio Manager
| 2007
| Investment Officer of MFS; employed in the investment management area of MFS since 2004.
|
| Michael Skatrud
| Portfolio Manager
| 2018
| Investment Officer of MFS; employed in the investment management area of MFS since 2013.
|
Other Notes
The fund’s shares may trade at
a discount or premium to net asset value. When fund shares trade at a premium, buyers pay more than the net asset value of the underlying fund shares, and shares purchased at a premium would receive less than the
amount paid for them in the event of the fund’s concurrent liquidation.
The fund's target annual
distribution rate is calculated based on an annual rate of 9.50% of the fund's average monthly net asset value, not a fixed share price, and the fund's dividend amount will fluctuate with changes in the fund's average
monthly net assets.
In accordance with Section 23(c)
of the Investment Company Act of 1940, the fund hereby gives notice that it may from time to time repurchase shares of the fund in the open market at the option of the Board of Trustees and on such terms as the
Trustees shall determine.
Portfolio of Investments
5/31/23 (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 – 138.1%
|
| Aerospace & Defense – 4.3%
|
| Bombardier, Inc., 7.5%, 3/15/2025 (n)
|
| $
| 38,000
| $38,035
|
| Bombardier, Inc., 7.125%, 6/15/2026 (n)
|
|
| 102,000
| 100,028
|
| F-Brasile S.p.A./F-Brasile U.S. LLC, 7.375%, 8/15/2026 (n)
|
|
| 200,000
| 180,128
|
| Moog, Inc., 4.25%, 12/15/2027 (n)
|
|
| 251,000
| 234,046
|
| Spirit AeroSystems, Inc., 4.6%, 6/15/2028
|
|
| 172,000
| 141,519
|
| TransDigm, Inc., 6.25%, 3/15/2026 (n)
|
|
| 175,000
| 173,802
|
| TransDigm, Inc., 6.375%, 6/15/2026
|
|
| 170,000
| 167,931
|
| TransDigm, Inc., 5.5%, 11/15/2027
|
|
| 158,000
| 148,538
|
| TransDigm, Inc., 6.75%, 8/15/2028 (n)
|
|
| 147,000
| 147,169
|
| TransDigm, Inc., 4.625%, 1/15/2029
|
|
| 181,000
| 160,422
|
|
|
|
|
| $1,491,618
|
| Airlines – 0.8%
|
| Air Canada, 3.875%, 8/15/2026 (n)
|
| $
| 181,000
| $168,020
|
| American Airlines, Inc./AAdvantage Loyalty IP Ltd., 5.75%, 4/20/2029 (n)
|
|
| 109,745
| 105,157
|
|
|
|
|
| $273,177
|
| Automotive – 3.7%
|
| Clarios Global LP/Clarios U.S. Finance Co., 8.5%, 5/15/2027 (n)
|
| $
| 163,000
| $163,420
|
| Clarios Global LP/Clarios U.S. Finance Co., 6.75%, 5/15/2028 (n)
|
|
| 77,000
| 77,000
|
| Dana, Inc., 5.375%, 11/15/2027
|
|
| 138,000
| 129,252
|
| Dana, Inc., 4.25%, 9/01/2030
|
|
| 102,000
| 81,725
|
| Dornoch Debt Merger Sub, Inc., 6.625%, 10/15/2029 (n)
|
|
| 186,000
| 139,622
|
| Ford Motor Co., 5.113%, 5/03/2029
|
|
| 210,000
| 192,260
|
| Ford Motor Credit Co. LLC, 4.134%, 8/04/2025
|
|
| 429,000
| 406,165
|
| Real Hero Merger Sub 2, Inc., 6.25%, 2/01/2029 (n)
|
|
| 135,000
| 102,296
|
|
|
|
|
| $1,291,740
|
| Broadcasting – 1.9%
|
| Gray Escrow II, Inc., 5.375%, 11/15/2031 (n)
|
| $
| 265,000
| $168,618
|
| Gray Television, Inc., 5.875%, 7/15/2026 (n)
|
|
| 31,000
| 26,645
|
| iHeartCommunications, Inc., 8.375%, 5/01/2027
|
|
| 102,000
| 57,544
|
| Midas OpCo Holdings LLC, 5.625%, 8/15/2029 (n)
|
|
| 183,000
| 157,056
|
| Summer (BC) Bidco B LLC, 5.5%, 10/31/2026 (n)
|
|
| 200,000
| 170,200
|
| Summer (BC) Holdco S.à r.l., “A”, 9.25%, 10/31/2027
|
| EUR
| 90,105
| 76,270
|
|
|
|
|
| $656,333
|
Portfolio of Investments (unaudited)
– continued
| Issuer
|
|
| Shares/Par
| Value ($)
|
| Bonds – continued
|
| Brokerage & Asset Managers – 2.3%
|
| AG Issuer LLC, 6.25%, 3/01/2028 (n)
|
| $
| 31,000
| $28,582
|
| AG TTMT Escrow Issuer LLC, 8.625%, 9/30/2027 (n)
|
|
| 202,000
| 204,566
|
| Aretec Escrow Issuer, Inc., 7.5%, 4/01/2029 (n)
|
|
| 189,000
| 161,467
|
| LPL Holdings, Inc., 4.375%, 5/15/2031 (n)
|
|
| 123,000
| 106,924
|
| NFP Corp., 4.875%, 8/15/2028 (n)
|
|
| 164,000
| 146,405
|
| NFP Corp., 6.875%, 8/15/2028 (n)
|
|
| 175,000
| 145,133
|
|
|
|
|
| $793,077
|
| Building – 4.6%
|
| Foundation Building Materials LLC, 6%, 3/01/2029 (n)
|
| $
| 172,000
| $138,238
|
| GYP Holding III Corp., 4.625%, 5/01/2029 (n)
|
|
| 255,000
| 221,213
|
| Interface, Inc., 5.5%, 12/01/2028 (n)
|
|
| 271,000
| 211,380
|
| MIWD Holdco II LLC/MIWD Finance Co., 5.5%, 2/01/2030 (n)
|
|
| 157,000
| 126,385
|
| New Enterprise Stone & Lime Co., Inc., 9.75%, 7/15/2028 (n)
|
|
| 158,000
| 150,100
|
| Patrick Industries, Inc., 7.5%, 10/15/2027 (n)
|
|
| 220,000
| 212,300
|
| SRS Distribution, Inc., 6.125%, 7/01/2029 (n)
|
|
| 114,000
| 94,401
|
| Standard Industries, Inc., 4.75%, 1/15/2028 (n)
|
|
| 101,000
| 92,595
|
| Standard Industries, Inc., 4.375%, 7/15/2030 (n)
|
|
| 201,000
| 169,718
|
| White Cap Buyer LLC, 6.875%, 10/15/2028 (n)
|
|
| 183,000
| 158,257
|
|
|
|
|
| $1,574,587
|
| Business Services – 2.0%
|
| Entegris Escrow Corp., 5.95%, 6/15/2030 (n)
|
| $
| 84,000
| $80,921
|
| Iron Mountain, Inc., 4.875%, 9/15/2027 (n)
|
|
| 155,000
| 145,036
|
| Iron Mountain, Inc., 5.25%, 3/15/2028 (n)
|
|
| 95,000
| 88,877
|
| Verscend Escrow Corp., 9.75%, 8/15/2026 (n)
|
|
| 216,000
| 216,472
|
| ZI Technologies LLC/ZI Finance Corp. Co., 3.875%, 2/01/2029 (n)
|
|
| 187,000
| 161,979
|
|
|
|
|
| $693,285
|
| Cable TV – 11.8%
|
| Cable One, Inc., 4%, 11/15/2030 (n)
|
| $
| 268,000
| $209,710
|
| CCO Holdings LLC/CCO Holdings Capital Corp., 5.125%, 5/01/2027 (n)
|
|
| 142,000
| 131,538
|
| CCO Holdings LLC/CCO Holdings Capital Corp., 4.75%, 3/01/2030 (n)
|
|
| 625,000
| 527,105
|
| CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 8/15/2030 (n)
|
|
| 320,000
| 263,409
|
| CCO Holdings LLC/CCO Holdings Capital Corp., 4.25%, 2/01/2031 (n)
|
|
| 228,000
| 182,637
|
| CCO Holdings LLC/CCO Holdings Capital Corp., 4.25%, 1/15/2034 (n)
|
|
| 155,000
| 114,670
|
| CSC Holdings LLC, 5.375%, 2/01/2028 (n)
|
|
| 200,000
| 157,348
|
| CSC Holdings LLC, 7.5%, 4/01/2028 (n)
|
|
| 200,000
| 108,361
|
| CSC Holdings LLC, 5.75%, 1/15/2030 (n)
|
|
| 200,000
| 88,086
|
| DISH DBS Corp., 7.75%, 7/01/2026
|
|
| 100,000
| 57,377
|
| DISH DBS Corp., 5.25%, 12/01/2026 (n)
|
|
| 155,000
| 122,438
|
| DISH DBS Corp., 5.125%, 6/01/2029
|
|
| 135,000
| 61,226
|
| DISH Network Corp., 11.75%, 11/15/2027 (n)
|
|
| 78,000
| 74,654
|
| LCPR Senior Secured Financing DAC, 6.75%, 10/15/2027 (n)
|
|
| 180,000
| 167,020
|
Portfolio of Investments (unaudited)
– continued
| Issuer
|
|
| Shares/Par
| Value ($)
|
| Bonds – continued
|
| Cable TV – continued
|
| Sirius XM Radio, Inc., 4%, 7/15/2028 (n)
|
| $
| 163,000
| $136,488
|
| Sirius XM Radio, Inc., 5.5%, 7/01/2029 (n)
|
|
| 370,000
| 322,972
|
| Sirius XM Radio, Inc., 3.875%, 9/01/2031 (n)
|
|
| 128,000
| 94,456
|
| Telenet Finance Luxembourg S.A., 5.5%, 3/01/2028 (n)
|
|
| 400,000
| 370,000
|
| Videotron Ltd., 5.125%, 4/15/2027 (n)
|
|
| 129,000
| 124,436
|
| Videotron Ltd., 3.625%, 6/15/2029 (n)
|
|
| 106,000
| 91,191
|
| Virgin Media Finance PLC, 5%, 7/15/2030 (n)
|
|
| 225,000
| 178,104
|
| Virgin Media Vendor Financing Notes IV DAC, 5%, 7/15/2028 (n)
|
|
| 225,000
| 195,459
|
| Ziggo Bond Finance B.V., 5.125%, 2/28/2030 (n)
|
|
| 400,000
| 306,724
|
|
|
|
|
| $4,085,409
|
| Chemicals – 3.2%
|
| Axalta Coating Systems Ltd., 4.75%, 6/15/2027 (n)
|
| $
| 150,000
| $141,746
|
| Axalta Coating Systems Ltd., 3.375%, 2/15/2029 (n)
|
|
| 320,000
| 274,150
|
| Element Solutions, Inc., 3.875%, 9/01/2028 (n)
|
|
| 244,000
| 213,548
|
| Ingevity Corp., 3.875%, 11/01/2028 (n)
|
|
| 261,000
| 215,403
|
| LSF11 A5 HoldCo LLC, 6.625%, 10/15/2029 (n)
|
|
| 179,000
| 152,907
|
| SCIH Salt Holdings, Inc., 6.625%, 5/01/2029 (n)
|
|
| 121,000
| 100,233
|
|
|
|
|
| $1,097,987
|
| Computer Software – 1.8%
|
| Camelot Finance S.A., 4.5%, 11/01/2026 (n)
|
| $
| 131,000
| $122,927
|
| Clarivate Science Holdings Corp., 3.875%, 7/01/2028 (n)
|
|
| 50,000
| 44,179
|
| Clarivate Science Holdings Corp., 4.875%, 7/01/2029 (n)
|
|
| 172,000
| 147,720
|
| Dun & Bradstreet Corp., 5%, 12/15/2029 (n)
|
|
| 170,000
| 148,104
|
| Neptune Bidco U.S., Inc., 9.29%, 4/15/2029 (n)
|
|
| 172,000
| 157,380
|
|
|
|
|
| $620,310
|
| Computer Software - Systems – 2.6%
|
| Fair Isaac Corp., 5.25%, 5/15/2026 (n)
|
| $
| 309,000
| $303,979
|
| Fair Isaac Corp., 4%, 6/15/2028 (n)
|
|
| 36,000
| 33,118
|
| Sabre GLBL, Inc., 7.375%, 9/01/2025 (n)
|
|
| 75,000
| 63,422
|
| Sabre GLBL, Inc., 11.25%, 12/15/2027 (n)
|
|
| 78,000
| 59,959
|
| SS&C Technologies Holdings, Inc., 5.5%, 9/30/2027 (n)
|
|
| 318,000
| 303,528
|
| Virtusa Corp., 7.125%, 12/15/2028 (n)
|
|
| 152,000
| 121,220
|
|
|
|
|
| $885,226
|
| Conglomerates – 5.4%
|
| BWX Technologies, Inc., 4.125%, 6/30/2028 (n)
|
| $
| 128,000
| $115,685
|
| BWX Technologies, Inc., 4.125%, 4/15/2029 (n)
|
|
| 315,000
| 278,769
|
| Chart Industries, Inc., 9.5%, 1/01/2031 (n)
|
|
| 186,000
| 194,530
|
| Emerald Debt Merger, 6.625%, 12/15/2030 (n)
|
|
| 268,000
| 265,856
|
| Gates Global LLC, 6.25%, 1/15/2026 (n)
|
|
| 222,000
| 217,560
|
| Griffon Corp., 5.75%, 3/01/2028
|
|
| 201,000
| 185,309
|
Portfolio of Investments (unaudited)
– continued
| Issuer
|
|
| Shares/Par
| Value ($)
|
| Bonds – continued
|
| Conglomerates – continued
|
| Madison IAQ LLC, 5.875%, 6/30/2029 (n)
|
| $
| 195,000
| $148,435
|
| Regal Rexnord Corp., 6.3%, 2/15/2030 (n)
|
|
| 130,000
| 129,694
|
| TriMas Corp., 4.125%, 4/15/2029 (n)
|
|
| 349,000
| 309,856
|
|
|
|
|
| $1,845,694
|
| Construction – 1.9%
|
| Empire Communities Corp., 7%, 12/15/2025 (n)
|
| $
| 158,000
| $143,780
|
| Mattamy Group Corp., 5.25%, 12/15/2027 (n)
|
|
| 95,000
| 87,663
|
| Mattamy Group Corp., 4.625%, 3/01/2030 (n)
|
|
| 142,000
| 122,035
|
| Taylor Morrison Communities, Inc., 5.75%, 1/15/2028 (n)
|
|
| 217,000
| 210,490
|
| Weekley Homes LLC/Weekley Finance Corp., 4.875%, 9/15/2028 (n)
|
|
| 116,000
| 101,694
|
|
|
|
|
| $665,662
|
| Consumer Products – 3.5%
|
| Energizer Gamma Acquisition B.V., 3.5%, 6/30/2029
|
| EUR
| 100,000
| $84,897
|
| Energizer Holdings, Inc., 4.375%, 3/31/2029 (n)
|
| $
| 188,000
| 160,975
|
| Mattel, Inc., 3.375%, 4/01/2026 (n)
|
|
| 147,000
| 134,837
|
| Mattel, Inc., 5.875%, 12/15/2027 (n)
|
|
| 99,000
| 96,468
|
| Mattel, Inc., 6.2%, 10/01/2040
|
|
| 15,000
| 13,180
|
| Newell Brands, Inc., 6.375%, 9/15/2027
|
|
| 181,000
| 172,147
|
| Newell Brands, Inc., 6.625%, 9/15/2029
|
|
| 121,000
| 114,194
|
| Prestige Consumer Healthcare, Inc., 5.125%, 1/15/2028 (n)
|
|
| 175,000
| 167,125
|
| Prestige Consumer Healthcare, Inc., 3.75%, 4/01/2031 (n)
|
|
| 59,000
| 48,554
|
| Spectrum Brands, Inc., 3.875%, 3/15/2031 (n)
|
|
| 156,000
| 127,422
|
| SWF Escrow Issuer Corp., 6.5%, 10/01/2029 (n)
|
|
| 155,000
| 92,419
|
|
|
|
|
| $1,212,218
|
| Consumer Services – 6.3%
|
| Allied Universal Holdco LLC, 9.75%, 7/15/2027 (n)
|
| $
| 297,000
| $260,573
|
| ANGI Group LLC, 3.875%, 8/15/2028 (n)
|
|
| 232,000
| 188,883
|
| Arches Buyer, Inc., 6.125%, 12/01/2028 (n)
|
|
| 200,000
| 173,078
|
| Cushman & Wakefield PLC, 6.75%, 5/15/2028 (n)
|
|
| 123,000
| 109,778
|
| GoDaddy, Inc., 3.5%, 3/01/2029 (n)
|
|
| 319,000
| 275,924
|
| GW B-CR Security Corp., 9.5%, 11/01/2027 (n)
|
|
| 151,000
| 141,231
|
| Match Group Holdings II LLC, 5%, 12/15/2027 (n)
|
|
| 182,000
| 171,138
|
| Match Group Holdings II LLC, 4.625%, 6/01/2028 (n)
|
|
| 215,000
| 196,188
|
| Match Group Holdings II LLC, 4.125%, 8/01/2030 (n)
|
|
| 65,000
| 55,168
|
| Match Group Holdings II LLC, 3.625%, 10/01/2031 (n)
|
|
| 15,000
| 12,219
|
| Realogy Group LLC/Realogy Co-Issuer Corp., 5.75%, 1/15/2029 (n)
|
|
| 180,000
| 130,038
|
| Realogy Group LLC/Realogy Co-Issuer Corp., 5.25%, 4/15/2030 (n)
|
|
| 135,000
| 93,646
|
| TriNet Group, Inc., 3.5%, 3/01/2029 (n)
|
|
| 283,000
| 242,428
|
| WASH Multi-Family Acquisition, Inc., 5.75%, 4/15/2026 (n)
|
|
| 153,000
| 136,494
|
|
|
|
|
| $2,186,786
|
Portfolio of Investments (unaudited)
– continued
| Issuer
|
|
| Shares/Par
| Value ($)
|
| Bonds – continued
|
| Containers – 4.6%
|
| Ardagh Metal Packaging Finance USA LLC, 3.25%, 9/01/2028 (n)
|
| $
| 200,000
| $170,754
|
| Ardagh Metal Packaging Finance USA LLC, 4%, 9/01/2029 (n)
|
|
| 200,000
| 156,842
|
| Ardagh Packaging Finance PLC/Ardagh MP Holdings USA, Inc., 5.25%, 8/15/2027 (n)
|
|
| 255,000
| 214,085
|
| Can-Pack S.A./Eastern PA Land Investment Holding LLC, 3.875%, 11/15/2029 (n)
|
|
| 275,000
| 220,876
|
| Crown Americas LLC, 5.25%, 4/01/2030
|
|
| 155,000
| 147,940
|
| Crown Americas LLC/Crown Americas Capital Corp. V, 4.25%, 9/30/2026
|
|
| 220,000
| 208,731
|
| Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 2/01/2026
|
|
| 130,000
| 126,463
|
| LABL, Inc., 5.875%, 11/01/2028 (n)
|
|
| 152,000
| 136,610
|
| Trivium Packaging Finance B.V., 8.5%, 8/15/2027 (n)
|
|
| 200,000
| 188,320
|
|
|
|
|
| $1,570,621
|
| Electrical Equipment – 0.4%
|
| CommScope Technologies LLC, 5%, 3/15/2027 (n)
|
| $
| 185,000
| $124,430
|
| Electronics – 2.3%
|
| Entegris, Inc., 4.375%, 4/15/2028 (n)
|
| $
| 85,000
| $78,118
|
| Entegris, Inc., 3.625%, 5/01/2029 (n)
|
|
| 110,000
| 94,920
|
| Sensata Technologies B.V., 5.625%, 11/01/2024 (n)
|
|
| 10,000
| 10,005
|
| Sensata Technologies B.V., 5%, 10/01/2025 (n)
|
|
| 260,000
| 255,547
|
| Sensata Technologies B.V., 5.875%, 9/01/2030 (n)
|
|
| 200,000
| 193,151
|
| Synaptics, Inc., 4%, 6/15/2029 (n)
|
|
| 202,000
| 169,175
|
|
|
|
|
| $800,916
|
| Energy - Independent – 4.6%
|
| Callon Petroleum Co., 8%, 8/01/2028 (n)
|
| $
| 137,000
| $133,966
|
| CNX Resources Corp., 6%, 1/15/2029 (n)
|
|
| 118,000
| 108,968
|
| CNX Resources Corp., 7.375%, 1/15/2031 (n)
|
|
| 40,000
| 38,501
|
| Comstock Resources, Inc., 6.75%, 3/01/2029 (n)
|
|
| 235,000
| 205,391
|
| CrownRock LP/CrownRock Finance, Inc., “F”, 5%, 5/01/2029 (n)
|
|
| 220,000
| 206,250
|
| Encino Acquisition Partners Holdings LLC, 8.5%, 5/01/2028 (n)
|
|
| 135,000
| 124,031
|
| Matador Resources Co., 6.875%, 4/15/2028 (n)
|
|
| 97,000
| 96,207
|
| Moss Creek Resources Holdings, Inc., 7.5%, 1/15/2026 (n)
|
|
| 137,000
| 126,242
|
| Permian Resources Operating LLC, 7.75%, 2/15/2026 (n)
|
|
| 30,000
| 30,175
|
| Permian Resources Operating LLC, 5.875%, 7/01/2029 (n)
|
|
| 197,000
| 184,433
|
| SM Energy Co., 6.75%, 9/15/2026
|
|
| 47,000
| 45,378
|
| SM Energy Co., 6.5%, 7/15/2028
|
|
| 121,000
| 113,455
|
| Southwestern Energy Co., 8.375%, 9/15/2028
|
|
| 90,000
| 93,809
|
| Southwestern Energy Co., 5.375%, 3/15/2030
|
|
| 102,000
| 93,753
|
|
|
|
|
| $1,600,559
|
Portfolio of Investments (unaudited)
– continued
| Issuer
|
|
| Shares/Par
| Value ($)
|
| Bonds – continued
|
| Entertainment – 3.4%
|
| Carnival Corp., 4%, 8/01/2028 (n)
|
| $
| 46,000
| $40,115
|
| Carnival Corp. PLC, 7.625%, 3/01/2026 (n)
|
|
| 143,000
| 135,580
|
| Carnival Corp. PLC, 5.75%, 3/01/2027 (n)
|
|
| 216,000
| 184,904
|
| Carnival Corp. PLC, 9.875%, 8/01/2027 (n)
|
|
| 116,000
| 119,726
|
| Merlin Entertainments, 5.75%, 6/15/2026 (n)
|
|
| 200,000
| 191,186
|
| NCL Corp. Ltd., 5.875%, 3/15/2026 (n)
|
|
| 112,000
| 101,600
|
| Royal Caribbean Cruises Ltd., 5.375%, 7/15/2027 (n)
|
|
| 142,000
| 130,847
|
| Royal Caribbean Cruises Ltd., 5.5%, 4/01/2028 (n)
|
|
| 190,000
| 174,547
|
| VOC Escrow Ltd., 5%, 2/15/2028 (n)
|
|
| 93,000
| 83,713
|
|
|
|
|
| $1,162,218
|
| Financial Institutions – 6.1%
|
| Avation Capital S.A., 8.25% (8.25% Cash or 9% PIK), 10/31/2026 (n)(p)
|
| $
| 208,313
| $180,236
|
| Credit Acceptance Corp., 5.125%, 12/31/2024 (n)
|
|
| 211,000
| 206,967
|
| Credit Acceptance Corp., 6.625%, 3/15/2026
|
|
| 21,000
| 20,037
|
| Global Aircraft Leasing Co. Ltd., 6.5% (6.5% Cash or 7.25% PIK), 9/15/2024 (n)(p)
|
|
| 404,529
| 361,042
|
| Howard Hughes Corp., 4.125%, 2/01/2029 (n)
|
|
| 265,000
| 216,696
|
| Macquarie AirFinance Ltd., 8.375%, 5/01/2028 (n)
|
|
| 151,000
| 148,755
|
| Nationstar Mortgage Holdings, Inc., 6%, 1/15/2027 (n)
|
|
| 261,000
| 238,032
|
| Nationstar Mortgage Holdings, Inc., 5.75%, 11/15/2031 (n)
|
|
| 39,000
| 31,671
|
| OneMain Finance Corp., 6.875%, 3/15/2025
|
|
| 144,000
| 138,752
|
| OneMain Finance Corp., 7.125%, 3/15/2026
|
|
| 226,000
| 216,094
|
| Rocket Mortgage Co-Issuer, Inc., 3.625%, 3/01/2029 (n)
|
|
| 191,000
| 157,510
|
| SLM Corp., 3.125%, 11/02/2026
|
|
| 218,000
| 186,887
|
|
|
|
|
| $2,102,679
|
| Food & Beverages – 4.1%
|
| B&G Foods, Inc., 5.25%, 4/01/2025
|
| $
| 120,000
| $113,076
|
| B&G Foods, Inc., 5.25%, 9/15/2027
|
|
| 45,000
| 38,260
|
| BellRing Brands, Inc., 7%, 3/15/2030 (n)
|
|
| 220,000
| 223,052
|
| Performance Food Group Co., 5.5%, 10/15/2027 (n)
|
|
| 237,000
| 227,878
|
| Post Holdings, Inc., 5.625%, 1/15/2028 (n)
|
|
| 154,000
| 148,487
|
| Post Holdings, Inc., 4.625%, 4/15/2030 (n)
|
|
| 260,000
| 227,680
|
| Primo Water Holding, Inc., 4.375%, 4/30/2029 (n)
|
|
| 282,000
| 242,562
|
| U.S. Foods Holding Corp., 4.75%, 2/15/2029 (n)
|
|
| 230,000
| 209,770
|
|
|
|
|
| $1,430,765
|
| Gaming & Lodging – 5.8%
|
| Caesars Entertainment, Inc., 4.625%, 10/15/2029 (n)
|
| $
| 85,000
| $73,279
|
| Caesars Entertainment, Inc., 7%, 2/15/2030 (n)
|
|
| 129,000
| 129,592
|
| Caesars Resort Collection LLC/CRC Finco, Inc., 8.125%, 7/01/2027 (n)
|
|
| 187,000
| 190,551
|
| CCM Merger, Inc., 6.375%, 5/01/2026 (n)
|
|
| 166,000
| 160,335
|
Portfolio of Investments (unaudited)
– continued
| Issuer
|
|
| Shares/Par
| Value ($)
|
| Bonds – continued
|
| Gaming & Lodging – continued
|
| International Game Technology PLC, 4.125%, 4/15/2026 (n)
|
| $
| 200,000
| $189,417
|
| International Game Technology PLC, 6.25%, 1/15/2027 (n)
|
|
| 200,000
| 199,608
|
| Penn National Gaming, Inc., 4.125%, 7/01/2029 (n)
|
|
| 156,000
| 125,806
|
| Sands China Ltd., 4.3%, 1/08/2026
|
|
| 250,000
| 233,292
|
| Scientific Games Holdings LP/Scientific Games US Finco, Inc., 6.625%, 3/01/2030 (n)
|
|
| 158,000
| 138,895
|
| Wyndham Hotels & Resorts, Inc., 4.375%, 8/15/2028 (n)
|
|
| 229,000
| 210,108
|
| Wynn Macau Ltd., 5.5%, 10/01/2027 (n)
|
|
| 200,000
| 173,540
|
| Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., 5.125%, 10/01/2029 (n)
|
|
| 195,000
| 174,010
|
|
|
|
|
| $1,998,433
|
| Industrial – 1.9%
|
| Albion Financing 1 S.à r.l., 6.125%, 10/15/2026 (n)
|
| $
| 200,000
| $179,346
|
| APi Escrow Corp., 4.75%, 10/15/2029 (n)
|
|
| 265,000
| 238,093
|
| Williams Scotsman International, Inc., 4.625%, 8/15/2028 (n)
|
|
| 248,000
| 226,536
|
|
|
|
|
| $643,975
|
| Insurance - Property & Casualty – 2.8%
|
| Acrisure LLC/Acrisure Finance, Inc., 7%, 11/15/2025 (n)
|
| $
| 111,000
| $105,175
|
| Acrisure LLC/Acrisure Finance, Inc., 4.25%, 2/15/2029 (n)
|
|
| 78,000
| 65,619
|
| Acrisure LLC/Acrisure Finance, Inc., 6%, 8/01/2029 (n)
|
|
| 122,000
| 102,052
|
| Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer, 6.75%, 10/15/2027 (n)
|
|
| 80,000
| 74,561
|
| Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer, 5.875%, 11/01/2029 (n)
|
|
| 171,000
| 146,686
|
| AmWINS Group Benefits, Inc., 4.875%, 6/30/2029 (n)
|
|
| 47,000
| 41,949
|
| AssuredPartners, Inc., 5.625%, 1/15/2029 (n)
|
|
| 145,000
| 125,456
|
| GTCR (AP) Finance, Inc., 8%, 5/15/2027 (n)
|
|
| 70,000
| 68,115
|
| Hub International Ltd., 5.625%, 12/01/2029 (n)
|
|
| 266,000
| 238,645
|
|
|
|
|
| $968,258
|
| Machinery & Tools – 1.7%
|
| Ritchie Bros Holdings, Inc., 6.75%, 3/15/2028 (n)
|
| $
| 136,000
| $137,617
|
| Ritchie Bros Holdings, Inc., 7.75%, 3/15/2031 (n)
|
|
| 262,000
| 273,075
|
| Terex Corp., 5%, 5/15/2029 (n)
|
|
| 183,000
| 169,579
|
|
|
|
|
| $580,271
|
| Major Banks – 0.6%
|
| Toronto Dominion Bank, 8.125% to 10/31/2027, FLR (CMT - 5yr. + 4.075%) to 10/31/2082
|
| $
| 200,000
| $204,964
|
Portfolio of Investments (unaudited)
– continued
| Issuer
|
|
| Shares/Par
| Value ($)
|
| Bonds – continued
|
| Medical & Health Technology & Services – 8.1%
|
| 180 Medical, Inc., 3.875%, 10/15/2029 (n)
|
| $
| 200,000
| $174,913
|
| AdaptHealth LLC, 4.625%, 8/01/2029 (n)
|
|
| 71,000
| 54,698
|
| Avantor Funding, Inc., 4.625%, 7/15/2028 (n)
|
|
| 276,000
| 255,291
|
| Charles River Laboratories International, Inc., 3.75%, 3/15/2029 (n)
|
|
| 276,000
| 242,245
|
| CHS/Community Health Systems, Inc., 8%, 12/15/2027 (n)
|
|
| 110,000
| 102,380
|
| CHS/Community Health Systems, Inc., 6.125%, 4/01/2030 (n)
|
|
| 216,000
| 116,672
|
| CHS/Community Health Systems, Inc., 5.25%, 5/15/2030 (n)
|
|
| 187,000
| 140,459
|
| DaVita, Inc., 4.625%, 6/01/2030 (n)
|
|
| 167,000
| 143,026
|
| Encompass Health Corp., 5.75%, 9/15/2025
|
|
| 30,000
| 29,740
|
| Encompass Health Corp., 4.75%, 2/01/2030
|
|
| 207,000
| 188,558
|
| Encompass Health Corp., 4.625%, 4/01/2031
|
|
| 30,000
| 26,198
|
| IQVIA, Inc., 5%, 5/15/2027 (n)
|
|
| 400,000
| 384,666
|
| IQVIA, Inc., 6.5%, 5/15/2030 (n)
|
|
| 200,000
| 203,382
|
| Legacy LifePoint Health LLC, 4.375%, 2/15/2027 (n)
|
|
| 89,000
| 67,052
|
| Regional Care/LifePoint Health, Inc., 9.75%, 12/01/2026 (n)
|
|
| 105,000
| 78,685
|
| Tenet Healthcare Corp., 6.125%, 10/01/2028
|
|
| 132,000
| 125,110
|
| Tenet Healthcare Corp., 4.375%, 1/15/2030
|
|
| 61,000
| 54,351
|
| Tenet Healthcare Corp., 6.125%, 6/15/2030 (n)
|
|
| 194,000
| 187,497
|
| Tenet Healthcare Corp., 6.75%, 5/15/2031 (n)
|
|
| 77,000
| 76,924
|
| U.S. Acute Care Solutions LLC, 6.375%, 3/01/2026 (n)
|
|
| 152,000
| 128,820
|
|
|
|
|
| $2,780,667
|
| Medical Equipment – 1.8%
|
| Embecta Corp., 5%, 2/15/2030 (n)
|
| $
| 156,000
| $130,613
|
| Garden SpinCo Corp., 8.625%, 7/20/2030 (n)
|
|
| 210,000
| 227,256
|
| Mozart Debt Merger Sub, Inc., 5.25%, 10/01/2029 (n)
|
|
| 105,000
| 89,840
|
| Teleflex, Inc., 4.625%, 11/15/2027
|
|
| 189,000
| 178,773
|
|
|
|
|
| $626,482
|
| Metals & Mining – 5.1%
|
| Baffinland Iron Mines Corp./Baffinland Iron Mines LP, 8.75%, 7/15/2026 (n)
|
| $
| 210,000
| $201,700
|
| Coeur Mining, Inc., 5.125%, 2/15/2029 (n)
|
|
| 175,000
| 147,437
|
| Eldorado Gold Corp., 6.25%, 9/01/2029 (n)
|
|
| 83,000
| 74,492
|
| Ero Copper Corp., 6.5%, 2/15/2030 (n)
|
|
| 123,000
| 106,395
|
| FMG Resources Ltd., 4.375%, 4/01/2031 (n)
|
|
| 313,000
| 264,530
|
| GrafTech Finance, Inc., 4.625%, 12/15/2028 (n)
|
|
| 221,000
| 176,256
|
| Kaiser Aluminum Corp., 4.625%, 3/01/2028 (n)
|
|
| 245,000
| 214,128
|
| Kaiser Aluminum Corp., 4.5%, 6/01/2031 (n)
|
|
| 136,000
| 106,862
|
| Novelis Corp., 3.25%, 11/15/2026 (n)
|
|
| 103,000
| 93,036
|
| Novelis Corp., 4.75%, 1/30/2030 (n)
|
|
| 187,000
| 165,961
|
| Novelis Corp., 3.875%, 8/15/2031 (n)
|
|
| 93,000
| 76,368
|
| Petra Diamonds US$ Treasury PLC, 10.5% (10.5% PIK/9.75% Cash to 6/30/2023), 9.75% Cash to 3/08/2026 (n)(p)
|
|
| 96,293
| 90,502
|
Portfolio of Investments (unaudited)
– continued
| Issuer
|
|
| Shares/Par
| Value ($)
|
| Bonds – continued
|
| Metals & Mining – continued
|
| TMS International Corp., 6.25%, 4/15/2029 (n)
|
| $
| 45,000
| $35,572
|
|
|
|
|
| $1,753,239
|
| Midstream – 7.4%
|
| DT Midstream, Inc., 4.125%, 6/15/2029 (n)
|
| $
| 180,000
| $156,096
|
| DT Midstream, Inc., 4.375%, 6/15/2031 (n)
|
|
| 248,000
| 208,575
|
| EQM Midstream Partners LP, 5.5%, 7/15/2028
|
|
| 391,000
| 366,513
|
| EQM Midstream Partners LP, 4.5%, 1/15/2029 (n)
|
|
| 81,000
| 70,767
|
| Genesis Energy LP/Genesis Energy Finance Corp., 8%, 1/15/2027
|
|
| 62,000
| 60,390
|
| Genesis Energy LP/Genesis Energy Finance Corp., 8.875%, 4/15/2030
|
|
| 155,000
| 152,427
|
| Kinetik Holdings, Inc., 5.875%, 6/15/2030 (n)
|
|
| 309,000
| 292,778
|
| NuStar Logistics, LP, 6.375%, 10/01/2030
|
|
| 152,000
| 146,300
|
| Tallgrass Energy Partners LP, 6%, 3/01/2027 (n)
|
|
| 61,000
| 57,037
|
| Tallgrass Energy Partners LP, 5.5%, 1/15/2028 (n)
|
|
| 280,000
| 252,804
|
| Targa Resources Partners LP/Targa Resources Finance Corp., 6.875%, 1/15/2029
|
|
| 210,000
| 212,633
|
| Venture Global Calcasieu Pass LLC, 3.875%, 8/15/2029 (n)
|
|
| 245,000
| 213,157
|
| Venture Global Calcasieu Pass LLC, 6.25%, 1/15/2030 (n)
|
|
| 80,000
| 79,310
|
| Venture Global Calcasieu Pass LLC, 4.125%, 8/15/2031 (n)
|
|
| 145,000
| 125,002
|
| Venture Global LNG, Inc., 8.125%, 6/01/2028 (n)
|
|
| 51,000
| 51,255
|
| Venture Global LNG, Inc., 8.375%, 6/01/2031 (n)
|
|
| 102,000
| 102,534
|
|
|
|
|
| $2,547,578
|
| Network & Telecom – 0.5%
|
| Iliad Holding S.A.S., 7%, 10/15/2028 (n)
|
| $
| 200,000
| $186,455
|
| Oil Services – 0.9%
|
| Nabors Industries Ltd., 7.25%, 1/15/2026 (n)
|
| $
| 203,000
| $184,941
|
| Solaris Midstream Holding LLC, 7.625%, 4/01/2026 (n)
|
|
| 135,000
| 130,950
|
|
|
|
|
| $315,891
|
| Oils – 1.2%
|
| Parkland Corp., 4.625%, 5/01/2030 (n)
|
| $
| 331,000
| $286,149
|
| PBF Holding Co. LLC/PBF Finance Corp., 6%, 2/15/2028
|
|
| 147,000
| 136,710
|
|
|
|
|
| $422,859
|
| Personal Computers & Peripherals – 0.9%
|
| NCR Corp., 5%, 10/01/2028 (n)
|
| $
| 213,000
| $187,257
|
| NCR Corp., 5.125%, 4/15/2029 (n)
|
|
| 124,000
| 108,469
|
|
|
|
|
| $295,726
|
| Pharmaceuticals – 1.6%
|
| 1375209 BC Ltd., 9%, 1/30/2028 (n)
|
| $
| 108,000
| $107,716
|
| Bausch Health Co., Inc., 11%, 9/30/2028 (n)
|
|
| 123,000
| 92,865
|
| Bausch Health Co., Inc., 14%, 10/15/2030 (n)
|
|
| 24,000
| 14,972
|
Portfolio of Investments (unaudited)
– continued
| Issuer
|
|
| Shares/Par
| Value ($)
|
| Bonds – continued
|
| Pharmaceuticals – continued
|
| Jazz Securities DAC, 4.375%, 1/15/2029 (n)
|
| $
| 200,000
| $179,196
|
| Organon Finance 1 LLC, 5.125%, 4/30/2031 (n)
|
|
| 200,000
| 169,711
|
|
|
|
|
| $564,460
|
| Pollution Control – 1.6%
|
| GFL Environmental, Inc., 4.25%, 6/01/2025 (n)
|
| $
| 60,000
| $57,737
|
| GFL Environmental, Inc., 4%, 8/01/2028 (n)
|
|
| 180,000
| 160,732
|
| GFL Environmental, Inc., 4.75%, 6/15/2029 (n)
|
|
| 65,000
| 59,017
|
| GFL Environmental, Inc., 4.375%, 8/15/2029 (n)
|
|
| 80,000
| 71,009
|
| Stericycle, Inc., 3.875%, 1/15/2029 (n)
|
|
| 233,000
| 205,492
|
|
|
|
|
| $553,987
|
| Precious Metals & Minerals – 0.8%
|
| IAMGOLD Corp., 5.75%, 10/15/2028 (n)
|
| $
| 198,000
| $154,551
|
| Taseko Mines Ltd., 7%, 2/15/2026 (n)
|
|
| 150,000
| 134,464
|
|
|
|
|
| $289,015
|
| Printing & Publishing – 0.8%
|
| Cimpress PLC, 7%, 6/15/2026
|
| $
| 300,000
| $258,750
|
| Real Estate - Healthcare – 0.6%
|
| MPT Operating Partnership LP/MPT Finance Corp., REIT, 5%, 10/15/2027
|
| $
| 235,000
| $193,001
|
| Real Estate - Other – 0.5%
|
| XHR LP, REIT, 4.875%, 6/01/2029 (n)
|
| $
| 218,000
| $186,662
|
| Restaurants – 0.4%
|
| Fertitta Entertainment LLC, 6.75%, 1/15/2030 (n)
|
| $
| 175,000
| $142,397
|
| Retailers – 2.4%
|
| Asbury Automotive Group, Inc., 4.625%, 11/15/2029 (n)
|
| $
| 212,000
| $186,867
|
| Bath & Body Works, Inc., 5.25%, 2/01/2028
|
|
| 313,000
| 297,829
|
| Hanesbrands, Inc., 9%, 2/15/2031 (n)
|
|
| 78,000
| 78,008
|
| Macy's Retail Holdings LLC, 5.875%, 4/01/2029 (n)
|
|
| 122,000
| 107,848
|
| Victoria's Secret & Co., 4.625%, 7/15/2029 (n)
|
|
| 213,000
| 163,440
|
|
|
|
|
| $833,992
|
| Specialty Stores – 2.3%
|
| Group 1 Automotive, Inc., 4%, 8/15/2028 (n)
|
| $
| 158,000
| $138,353
|
| Lithia Motors, Inc., 3.875%, 6/01/2029 (n)
|
|
| 62,000
| 53,415
|
| Michael Cos., Inc., 5.25%, 5/01/2028 (n)
|
|
| 105,000
| 80,850
|
| Michael Cos., Inc., 7.875%, 5/01/2029 (n)
|
|
| 125,000
| 76,805
|
| Penske Automotive Group Co., 3.75%, 6/15/2029
|
|
| 215,000
| 184,162
|
Portfolio of Investments (unaudited)
– continued
| Issuer
|
|
| Shares/Par
| Value ($)
|
| Bonds – continued
|
| Specialty Stores – continued
|
| PetSmart, Inc./PetSmart Finance Corp., 7.75%, 2/15/2029 (n)
|
| $
| 250,000
| $242,703
|
|
|
|
|
| $776,288
|
| Supermarkets – 0.6%
|
| Albertsons Cos. LLC/Safeway, Inc., 4.625%, 1/15/2027 (n)
|
| $
| 73,000
| $69,411
|
| Albertsons Cos. LLC/Safeway, Inc., 3.5%, 3/15/2029 (n)
|
|
| 160,000
| 139,116
|
|
|
|
|
| $208,527
|
| Telecommunications - Wireless – 1.4%
|
| Altice France S.A., 6%, 2/15/2028 (n)
|
| $
| 200,000
| $98,997
|
| SBA Communications Corp., 3.875%, 2/15/2027
|
|
| 145,000
| 133,647
|
| SBA Communications Corp., 3.125%, 2/01/2029
|
|
| 305,000
| 256,913
|
|
|
|
|
| $489,557
|
| Tobacco – 0.3%
|
| Vector Group Ltd., 5.75%, 2/01/2029 (n)
|
| $
| 105,000
| $91,239
|
| Utilities - Electric Power – 4.5%
|
| Calpine Corp., 4.5%, 2/15/2028 (n)
|
| $
| 238,000
| $216,581
|
| Calpine Corp., 5.125%, 3/15/2028 (n)
|
|
| 225,000
| 201,556
|
| Clearway Energy Operating LLC, 4.75%, 3/15/2028 (n)
|
|
| 158,000
| 147,055
|
| Clearway Energy Operating LLC, 3.75%, 2/15/2031 (n)
|
|
| 365,000
| 306,176
|
| NextEra Energy, Inc., 4.25%, 7/15/2024 (n)
|
|
| 43,000
| 42,189
|
| NextEra Energy, Inc., 4.25%, 9/15/2024 (n)
|
|
| 29,000
| 27,804
|
| NextEra Energy, Inc., 4.5%, 9/15/2027 (n)
|
|
| 130,000
| 121,062
|
| TerraForm Global Operating LLC, 6.125%, 3/01/2026 (n)
|
|
| 155,000
| 148,800
|
| TerraForm Power Operating LLC, 5%, 1/31/2028 (n)
|
|
| 262,000
| 245,625
|
| TerraForm Power Operating LLC, 4.75%, 1/15/2030 (n)
|
|
| 108,000
| 96,956
|
|
|
|
|
| $1,553,804
|
| Total Bonds (Identified Cost, $52,654,542)
|
| $47,631,774
|
| Common Stocks – 0.4%
|
| Cable TV – 0.2%
|
|
| Intelsat Emergence S.A. (a)
|
| 2,070
| $50,715
|
| Oil Services – 0.2%
|
|
| LTRI Holdings LP (a)(u)
|
| 200
| $67,008
|
| Total Common Stocks (Identified Cost, $250,507)
|
| $117,723
|
Portfolio of Investments (unaudited)
– continued
| Issuer
|
|
| Shares/Par
| Value ($)
|
| Contingent Value Rights – 0.0%
|
| Cable TV – 0.0%
|
| Intelsat Jackson Holdings S.A. - Series A, 12/05/2025 (a)
|
|
| 216
| $1,404
|
| Intelsat Jackson Holdings S.A. - Series B, 12/05/2025 (a)
|
|
| 216
| 918
|
| Total Contingent Value Rights (Identified Cost, $0)
|
| $2,322
|
|
| Strike
Price
| First
Exercise
|
|
|
| Warrants – 0.0%
|
|
|
|
|
| Other Banks & Diversified Financials – 0.0%
|
| Avation Capital S.A. (1 share for 1 warrant, Expiration 10/31/26) (a) (Identified Cost, $0)
| GBP 1.14
| 3/16/21
| 3,500
| $2,307
|
|
|
|
|
|
|
| Investment Companies (h) – 2.5%
|
| Money Market Funds – 2.5%
|
|
| MFS Institutional Money Market Portfolio, 4.88% (v) (Identified Cost, $868,788)
|
|
| 868,805
| $868,718
|
| Underlying/Expiration Date/Exercise Price
| Put/Call
| Counterparty
| Notional
Amount
| Par Amount/
Number of
Contracts
|
|
| Purchased Options – 0.1%
|
|
| Fixed Income ETFs – 0.1%
|
|
| iShares iBoxx $ High Yield Corporate Bond ETF – July 2023 @ $74
| Put
| Goldman Sachs International
| $ 978,252
| 132
| $12,672
|
| iShares iBoxx $ High Yield Corporate Bond ETF – September 2023 @ $71
| Put
| Goldman Sachs International
| 1,437,734
| 194
| 11,252
|
Total Purchased Options
(Premiums Paid, $51,818)
|
| $23,924
|
|
|
|
|
| Other Assets, Less Liabilities – (41.1)%
|
| (14,165,573)
|
| Net Assets – 100.0%
| $34,481,195
|
| (a)
| Non-income producing security.
|
|
|
|
| (h)
| An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common
control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $868,718 and $47,778,050, respectively.
|
|
|
|
| (n)
| Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions
exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $40,398,922, representing 117.2% of net assets.
|
|
|
|
| (p)
| Payment-in-kind (PIK) security for which interest income may be received in additional securities and/or cash.
|
|
|
|
Portfolio of Investments (unaudited)
– continued
| (u)
| The security was valued using significant unobservable inputs and is considered level 3 under the fair value hierarchy. For further information about the fund’s level 3
holdings, please see Note 2 in the Notes to Financial Statements.
|
|
|
|
| (v)
| Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized
seven-day yield of the fund at period end.
|
|
|
|
| The following abbreviations are used in this report and are defined:
|
| CMT
| Constant Maturity Treasury
|
| ETF
| Exchange-Traded Fund
|
| FLR
| Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference
rates are USD unless otherwise noted.
|
| 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
|
| GBP
| British Pound
|
Derivative Contracts at 5/31/23
| Forward Foreign Currency Exchange Contracts
|
Currency
Purchased
| Currency
Sold
| Counterparty
| Settlement
Date
| Unrealized
Appreciation
(Depreciation)
|
| Asset Derivatives
|
| USD
| 195,825
| EUR
| 177,863
| Morgan Stanley Capital Services, Inc.
| 7/21/2023
| $5,177
|
| Futures Contracts
|
| Description
| Long/
Short
| Currency
| Contracts
| Notional
Amount
| Expiration
Date
| Value/Unrealized
Appreciation
(Depreciation)
|
| Asset Derivatives
|
| Interest Rate Futures
|
|
|
| U.S. Treasury Bond 30 yr
| Long
| USD
| 3
| $385,031
| September – 2023
| $3,628
|
| U.S. Treasury Ultra Note 10 yr
| Long
| USD
| 6
| 722,719
| September – 2023
| 3,025
|
|
|
|
|
|
|
| $6,653
|
At May 31, 2023, the fund had cash
collateral of $31,200 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statement of Assets and Liabilities are comprised of cash
collateral.
See Notes to Financial Statements
Financial Statements
Statement of Assets and
Liabilities
At 5/31/23 (unaudited)
This statement represents your
fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.
| Assets
|
|
| Investments in unaffiliated issuers, at value (identified cost, $52,956,867)
| $47,778,050
|
| Investments in affiliated issuers, at value (identified cost, $868,788)
| 868,718
|
| Cash
| 108
|
| Deposits with brokers for
|
|
| Futures contracts
| 31,200
|
| Receivables for
|
|
| Forward foreign currency exchange contracts
| 5,177
|
| Net daily variation margin on open futures contracts
| 6,098
|
| Investments sold
| 218,331
|
| Interest
| 783,295
|
| Receivable from investment adviser
| 432
|
| Other assets
| 14,010
|
| Total assets
| $49,705,419
|
| Liabilities
|
|
| Notes payable
| $15,000,000
|
| Payables for
|
|
| Distributions
| 12,905
|
| Investments purchased
| 100,334
|
| Capital shares reacquired
| 6,505
|
| Payable to affiliates
|
|
| Administrative services fee
| 96
|
| Transfer agent and dividend disbursing costs
| 458
|
| Payable for independent Trustees' compensation
| 62
|
| Accrued interest expense
| 19,577
|
| Accrued expenses and other liabilities
| 84,287
|
| Total liabilities
| $15,224,224
|
| Net assets
| $34,481,195
|
| Net assets consist of
|
|
| Paid-in capital
| $48,379,596
|
| Total distributable earnings (loss)
| (13,898,401)
|
| Net assets
| $34,481,195
|
| Shares of beneficial interest outstanding (19,215,481 shares authorized less 78,100 capital shares to be
retired)
| 19,137,381
|
| Net asset value per share (net assets of $34,481,195 / 19,137,381 shares of beneficial interest
outstanding)
| $1.80
|
See Notes to Financial Statements
Financial Statements
Statement of Operations
Six months ended 5/31/23
(unaudited)
This statement describes how much
your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.
| Net investment income (loss)
|
|
| Income
|
|
| Interest
| $1,526,198
|
| Dividends from affiliated issuers
| 33,054
|
| Dividends
| 8,672
|
| Other
| 153
|
| Total investment income
| $1,568,077
|
| Expenses
|
|
| Management fee
| $125,249
|
| Transfer agent and dividend disbursing costs
| 7,469
|
| Administrative services fee
| 8,727
|
| Independent Trustees' compensation
| 2,662
|
| Stock exchange fee
| 11,840
|
| Custodian fee
| 2,187
|
| Shareholder communications
| 29,152
|
| Audit and tax fees
| 49,261
|
| Legal fees
| 636
|
| Interest expense and fees
| 430,613
|
| Miscellaneous
| 18,587
|
| Total expenses
| $686,383
|
| Reduction of expenses by investment adviser
| (17,959)
|
| Net expenses
| $668,424
|
| Net investment income (loss)
| $899,653
|
Statement of Operations (unaudited)
– continued
| Realized and unrealized gain (loss)
|
| Realized gain (loss) (identified cost basis)
|
|
| Unaffiliated issuers
| $(1,511,765)
|
| Affiliated issuers
| (57)
|
| Futures contracts
| 292
|
| Forward foreign currency exchange contracts
| (22,513)
|
| Foreign currency
| 548
|
| Net realized gain (loss)
| $(1,533,495)
|
| Change in unrealized appreciation or depreciation
|
|
| Unaffiliated issuers
| $1,694,149
|
| Affiliated issuers
| (86)
|
| Futures contracts
| 8,746
|
| Forward foreign currency exchange contracts
| 18,880
|
| Translation of assets and liabilities in foreign currencies
| (115)
|
| Net unrealized gain (loss)
| $1,721,574
|
| Net realized and unrealized gain (loss)
| $188,079
|
| Change in net assets from operations
| $1,087,732
|
See Notes to Financial Statements
Financial Statements
Statements of Changes in Net
Assets
These statements describe the
increases and/or decreases in net assets resulting from operations, any distributions, and any shareholder transactions.
|
| Six months ended
| Year ended
|
|
| 5/31/23
(unaudited)
| 11/30/22
|
| Change in net assets
|
|
|
| From operations
|
|
|
| Net investment income (loss)
| $899,653
| $2,162,780
|
| Net realized gain (loss)
| (1,533,495)
| (1,087,991)
|
| Net unrealized gain (loss)
| 1,721,574
| (6,833,003)
|
| Change in net assets from operations
| $1,087,732
| $(5,758,214)
|
| Distributions to shareholders
| $(880,235)
| $(2,327,302)
|
| Tax return of capital distributions to shareholders
| $—
| $(1,468,441)
|
| Distributions from other sources
| $(807,338)(a)
| $—
|
| Change in net assets from fund share transactions
| $(463,919)
| $155,726
|
| Total change in net assets
| $(1,063,760)
| $(9,398,231)
|
| Net assets
|
|
|
| At beginning of period
| 35,544,955
| 44,943,186
|
| At end of period
| $34,481,195
| $35,544,955
|
| (a)
| Estimated tax return of capital. All or a portion of this amount may be redesignated as ordinary income and/or capital gains at fiscal year end when the tax character of distributions
is determined. Please refer to “Tax Matters and Distributions” under Note 2 of the Notes to Financial Statements for additional information regarding the tax character of the fund’s distributions.
|
See Notes to Financial Statements
Financial Statements
Statement of Cash Flows
Six months ended 5/31/23
(unaudited)
This statement provides a summary
of cash flows from investment activity for the fund.
| Cash flows from operating activities:
|
|
| Change in net assets from operations
| $1,087,732
|
| Adjustments to reconcile change in net assets from operations to net cash provided by operating activities:
|
|
| Purchase of investment securities
| (12,467,010)
|
| Proceeds from disposition of investment securities
| 14,857,583
|
| Purchase of short-term investments, net
| (74,193)
|
| Realized gain/loss on investments
| 1,511,765
|
| Unrealized appreciation/depreciation on investments
| (1,694,063)
|
| Unrealized appreciation/depreciation on foreign currency contracts
| (18,880)
|
| Net amortization/accretion of income
| (21,109)
|
| Decrease in interest receivable
| 7,075
|
| Decrease in accrued expenses and other liabilities
| (14,234)
|
| Increase in receivable from investment adviser
| (432)
|
| Increase in receivable for net daily variation margin on open futures contracts
| (6,098)
|
| Decrease in payable for net daily variation margin on open futures contracts
| (3,090)
|
| Increase in other assets
| (11,996)
|
| Decrease in interest payable
| (1,248)
|
| Net cash provided by operating activities
| $3,151,802
|
| Cash flows from financing activities:
|
|
| Distributions paid in cash
| $(1,650,430)
|
| Decrease in notes payable
| (1,000,000)
|
| Repurchase of shares of beneficial interest
| (481,652)
|
| Net cash used by financing activities
| $(3,132,082)
|
| Net increase in cash and restricted cash
| $19,720
|
| Cash and restricted cash:
|
|
| Beginning of period
| $11,588
|
| End of period
| $31,308
|
Supplemental disclosure of cash flow
information:
Non-cash financing activities not
included herein consist of reinvestment of dividends and distributions of $24,238.
Cash paid during the six months
ended May 31, 2023 for interest was $431,861.
See Notes to Financial Statements
Financial Statements
Financial Highlights
The financial highlights table is
intended to help you understand the fund's financial performance for the semiannual period and the past 5 fiscal years. Certain information reflects financial results for a single fund share. The total returns in the
table represent the rate that an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
|
| Six months
ended
| Year ended
|
|
| 5/31/23
(unaudited)
| 11/30/22
| 11/30/21
| 11/30/20
| 11/30/19
| 11/30/18
|
| Net asset value, beginning of period
| $1.83
| $2.32
| $2.47
| $2.56
| $2.46
| $2.79
|
| Income (loss) from investment operations
|
| Net investment income (loss) (d)
| $0.05
| $0.11
| $0.13
| $0.14
| $0.14
| $0.14(c)
|
| Net realized and unrealized gain (loss)
| 0.01
| (0.40)
| (0.05)
| (0.00)(w)
| 0.20
| (0.22)
|
| Total from investment operations
| $0.06
| $(0.29)
| $0.08
| $0.14
| $0.34
| $(0.08)
|
| Less distributions declared to shareholders
|
| From net investment income
| $(0.05)
| $(0.12)
| $(0.14)
| $(0.15)
| $(0.14)
| $(0.15)
|
| From tax return of capital
| —
| (0.08)
| (0.09)
| (0.08)
| (0.10)
| (0.10)
|
| From other sources
| (0.04)(b)
| —
| —
| —
| —
| —
|
| Total distributions declared to shareholders
| $(0.09)
| $(0.20)
| $(0.23)
| $(0.23)
| $(0.24)
| $(0.25)
|
| Net increase from repurchase of capital shares
| $0.00(w)
| $—
| $—
| $0.00(w)
| $0.00(w)
| $—
|
| Net asset value, end of period (x)
| $1.80
| $1.83
| $2.32
| $2.47
| $2.56
| $2.46
|
| Market value, end of period
| $1.62
| $1.83
| $2.97
| $2.47
| $2.70
| $2.29
|
| Total return at market value (%)
| (6.93)(n)
| (32.19)
| 30.89
| 0.89
| 29.74
| (8.21)
|
| Total return at net asset value (%) (j)(r)(s)(x)
| 3.41(n)
| (13.19)
| 2.25
| 6.40
| 14.52
| (2.81)(c)
|
Ratios (%) (to average net assets)
and Supplemental data:
|
| Expenses before expense reductions
| 3.87(a)
| 2.53
| 1.84
| 2.05
| 2.56
| 2.50(c)
|
| Expenses after expense reductions
| 3.77(a)
| 2.23
| 1.65
| 1.82
| 2.49
| 2.41(c)
|
| Net investment income (loss)
| 5.07(a)
| 5.54
| 5.27
| 5.75
| 5.43
| 5.50(c)
|
| Portfolio turnover
| 24(n)
| 31
| 65
| 57
| 56
| 45
|
| Net assets at end of period (000 omitted)
| $34,481
| $35,545
| $44,943
| $47,585
| $50,387
| $48,508
|
| Supplemental Ratios (%):
|
| Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees
| 1.34(a)
| 1.34
| 1.34
| 1.34
| 1.34
| 1.33(c)
|
| Senior Securities:
|
| Total notes payable outstanding (000 omitted)
| $15,000
| $16,000
| $18,500
| $18,500
| $20,000
| $20,000
|
| Asset coverage per $1,000 of indebtedness (k)
| $3,299
| $3,222
| $3,429
| $3,572
| $3,519
| $3,425
|
See Notes to Financial Statements
Financial Highlights – continued
| (a)
| Annualized.
|
| (b)
| Estimated tax return of capital. All or a portion of this amount may be redesignated as ordinary income and/or capital gains at fiscal year end when the tax character of distributions is determined.
Please refer to “Tax Matters and Distributions” under Note 2 of the Notes to Financial Statements for additional information regarding the tax character of the fund’s distributions.
|
| (c)
| Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher.
|
| (d)
| Per share data is based on average shares outstanding.
|
| (j)
| Total return at net asset value is calculated using the net asset value of the fund, not the publicly traded price and therefore may be different than the total return at market value.
|
| (k)
| Calculated by subtracting the fund's total liabilities (not including notes payable) from the fund's total assets and dividing this number by the notes payable outstanding and then multiplying by 1,000.
|
| (n)
| Not annualized.
|
| (r)
| Certain expenses have been reduced without which performance would have been lower.
|
| (s)
| From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower.
|
| (w)
| Per share amount was less than $0.01.
|
| (x)
| The net asset values and total returns at net asset value have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting
principles required at period end for financial reporting purposes.
|
See Notes to Financial Statements
Notes to Financial Statements
(unaudited)
(1) Business and
Organization
MFS Intermediate High Income Fund
(the fund) is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a diversified closed-end management investment company.
The fund is an investment company
and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment
Companies.
(2) Significant Accounting
Policies
General — The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s
Statement of Assets and Liabilities through the date that the financial statements were issued. The fund invests in high-yield securities rated below investment grade. Investments in below investment grade quality securities can involve a substantially greater risk of default or can
already be in default, and their values can decline significantly. Below investment grade quality securities tend to be more sensitive to adverse news about the issuer, or the market or economy in general, than higher
quality debt instruments. The fund invests in foreign securities. Investments in foreign securities are vulnerable to the effects of changes in the relative values of the local currency and the U.S. dollar and to
the effects of changes in each country’s market, economic, industrial, political, regulatory, geopolitical, environmental, public health, and other conditions.
Balance Sheet Offsetting — The fund's accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International
Swaps and Derivatives Association (ISDA) Master Agreement, or similar agreement, does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and
Liabilities across transactions between the fund and the applicable counterparty. The fund's right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which
a specific master netting agreement counterparty is subject. Balance sheet offsetting disclosures, to the extent applicable to the fund, have been included in the fund’s Significant Accounting Policies note
under the captions for each of the fund’s in-scope financial instruments and transactions.
Investment Valuations — Subject to its oversight, the fund's Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments to MFS as
the fund's adviser, pursuant to the fund’s valuation policy and procedures which have been adopted by the adviser and approved by the Board. In accordance with Rule 2a-5 under the Investment Company Act of
1940, the Board of Trustees designated the adviser as the “valuation designee” of the fund. If the
Notes to Financial
Statements (unaudited) - continued
adviser, as valuation designee, determines that
reliable market quotations are not readily available for an investment, the investment is valued at fair value as determined in good faith by the adviser in accordance with the adviser’s fair valuation policy
and procedures.
Under the fund's valuation policy
and procedures, equity securities, including restricted equity securities, are generally valued at the last sale or official closing price on their primary market or exchange as provided by a third-party pricing
service. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation on their primary market or exchange as provided by a third-party pricing
service. Debt instruments and floating rate loans, including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with
a maturity at issuance of 60 days or less may be valued at amortized cost, which approximates market value.
Exchange-traded options are generally valued at the
last sale or official closing price on their primary exchange as provided by a third-party pricing service. Exchange-traded options for which there were no sales reported that day are generally valued at the last
daily bid quotation on their primary exchange as provided by a third-party pricing service. For put options, the position may be valued at the last daily ask quotation if there are no trades reported during the day.
Options not traded on an exchange are generally valued at a broker/dealer bid quotation. Foreign currency options are generally valued at valuations provided by a third-party pricing service. Futures contracts are
generally valued at last posted settlement price on their primary exchange as provided by a third-party pricing service. Futures contracts for which there were no trades that day for a particular position are
generally valued at the closing bid quotation on their primary exchange as provided by a third-party pricing service.
Forward foreign currency exchange contracts are
generally valued at the mean of bid and asked prices for the time period interpolated from rates provided by a third-party pricing service for proximate time periods. Open-end investment companies are generally valued
at net asset value per share. The values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and asked prices for rates provided
by a third-party pricing service.
Under the fund’s valuation
policy and procedures, market quotations are not considered to be readily available for debt instruments, floating rate loans, and many types of derivatives. These investments are generally valued at fair value based
on information from third-party pricing services or otherwise determined by the adviser in accordance with the adviser’s fair valuation policy and procedures. Securities and other assets generally valued on the
basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. In determining values, third-party pricing services can utilize both transaction data and market information
such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, spreads and other market data. An investment may also be valued at fair value if the adviser determines that the
investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the
determination of the fund’s net asset value, or after the halt of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally
traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment
characteristics of the security; the business and financial
Notes to Financial
Statements (unaudited) - continued
condition of the issuer; and trading and other
market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s net asset value can differ depending
on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same
investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per
share.
Various inputs are used in
determining the value of the fund's assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value
hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund's assessment of the significance of a
particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or
liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes significant
unobservable inputs, which may include the adviser's own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments, such as futures contracts and forward foreign
currency exchange contracts. The following is a summary of the levels used as of May 31, 2023 in valuing the fund's assets and liabilities:
| Financial Instruments
| Level 1
| Level 2
| Level 3
| Total
|
| Equity Securities:
|
|
|
|
|
| United States
| $23,924
| $—
| $67,008
| $90,932
|
| Luxembourg
| —
| 53,037
| —
| 53,037
|
| United Kingdom
| —
| 2,307
| —
| 2,307
|
| U.S. Corporate Bonds
| —
| 39,936,950
| —
| 39,936,950
|
| Foreign Bonds
| —
| 7,694,824
| —
| 7,694,824
|
| Mutual Funds
| 868,718
| —
| —
| 868,718
|
| Total
| $892,642
| $47,687,118
| $67,008
| $48,646,768
|
| Other Financial Instruments
|
|
|
|
|
| Futures Contracts – Assets
| $6,653
| $—
| $—
| $6,653
|
| Forward Foreign Currency Exchange Contracts – Assets
| —
| 5,177
| —
| 5,177
|
For further information regarding
security characteristics, see the Portfolio of Investments.
Notes to Financial
Statements (unaudited) - continued
The following is a reconciliation of
level 3 assets for which significant unobservable inputs were used to determine fair value. The table presents the activity of level 3 securities held at the beginning and the end of the period.
|
| Equity
Securities
|
| Balance as of 11/30/22
| $92,285
|
| Realized gain (loss)
| 10,734
|
| Change in unrealized appreciation or depreciation
| (25,277)
|
| Disposed of as part of a corporate action
| (10,734)
|
| Balance as of 5/31/23
| $67,008
|
The net change in unrealized
appreciation or depreciation from investments held as level 3 at May 31, 2023 is $(15,246). At May 31, 2023, the fund held one level 3 security.
Foreign Currency Translation — Purchases and sales of foreign investments, income, and expenses are converted into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such
transactions or on the reporting date for foreign denominated receivables and payables. Gains and losses attributable to foreign currency exchange rates on sales of securities are recorded for financial statement
purposes as net realized gains and losses on investments. Gains and losses attributable to foreign exchange rate movements on receivables, payables, income and expenses are recorded for financial statement purposes as
foreign currency transaction gains and losses. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately
disclosed.
Derivatives — The fund uses derivatives primarily to increase or decrease exposure to a particular market or segment of the market, or security, to increase or decrease interest rate exposure,
or as alternatives to direct investments. Derivatives are used for hedging or non-hedging purposes. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. When the fund uses derivatives
as an investment to increase market exposure, or for hedging purposes, gains and losses from derivative instruments may be substantially greater than the derivative’s original cost.
The derivative instruments used by
the fund during the period were purchased options, futures contracts, and forward foreign currency exchange contracts. Depending on the type of derivative, a fund may exit a derivative position by entering into
an offsetting transaction with a counterparty or exchange, negotiating an agreement with the derivative counterparty, or novating the position to a third party. The fund may be unable to promptly close out a futures
position in instances where the daily fluctuation in the price for that type of future exceeds the daily limit set by the exchange. The fund's period end derivatives, as presented in the Portfolio of Investments and
the associated Derivative Contract tables, generally are indicative of the volume of its derivative activity during the period.
Notes to Financial
Statements (unaudited) - continued
The following table presents, by
major type of derivative contract, the fair value, on a gross basis, of the asset and liability components of derivatives held by the fund at May 31, 2023 as reported in the Statement of Assets and Liabilities:
|
|
| Fair Value (a)
|
| Risk
| Derivative Contracts
| Asset Derivatives
|
| Equity
| Purchased Option Contracts
| $23,924
|
| Interest Rate
| Futures Contracts
| 6,653
|
| Foreign Exchange
| Forward Foreign Currency Exchange Contracts
| 5,177
|
| Total
|
| $35,754
|
| (a)
| The value of purchased options outstanding is included in investments in unaffiliated issuer, at value, within the Statement of Assets and Liabilities. Values presented in this table
for futures contracts correspond to the values reported in the Portfolio of Investments. Only the current day net variation margin for futures contracts is reported separately within the Statement of Assets and
Liabilities.
|
The following table presents, by
major type of derivative contract, the realized gain (loss) on derivatives held by the fund for the six months ended May 31, 2023 as reported in the Statement of Operations:
| Risk
| Futures
Contracts
| Forward Foreign
Currency
Exchange
Contracts
| Unaffiliated Issuers
(Purchased
Options)
|
| Interest Rate
| $292
| $—
| $—
|
| Foreign Exchange
| —
| (22,513)
| —
|
| Equity
| —
| —
| (574)
|
| Total
| $292
| $(22,513)
| $(574)
|
The following table presents, by
major type of derivative contract, the change in unrealized appreciation or depreciation on derivatives held by the fund for the six months ended May 31, 2023 as reported in the Statement of Operations:
| Risk
| Futures
Contracts
| Forward Foreign
Currency
Exchange
Contracts
| Unaffiliated Issuers
(Purchased
Options)
|
| Interest Rate
| $8,746
| $—
| $—
|
| Foreign Exchange
| —
| 18,880
| —
|
| Equity
| —
| —
| (27,894)
|
| Total
| $8,746
| $18,880
| $(27,894)
|
Derivative counterparty credit risk
is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain, but not all, uncleared derivatives, the fund attempts to reduce its exposure to counterparty credit risk
whenever possible by entering into an ISDA Master Agreement on a bilateral basis. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if
there is a specified deterioration in the credit quality of the other party. Upon an event of default or a termination of the ISDA Master Agreement, the non-defaulting party has the right to close out all transactions
traded under such agreement and to net amounts owed under each agreement to one
Notes to Financial
Statements (unaudited) - continued
net amount payable by one party to the other. This
right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the fund's credit risk to such counterparty equal to any amounts payable by the fund
under the applicable transactions, if any.
Collateral and margin requirements
differ by type of derivative. For cleared derivatives (e.g., futures contracts, cleared swaps, and exchange-traded options), margin requirements are set by the clearing broker and the clearing house and collateral, in
the form of cash or securities, is posted by the fund directly with the clearing broker. Collateral terms are counterparty agreement specific for uncleared derivatives (e.g., forward foreign currency exchange
contracts, uncleared swap agreements, and uncleared options) and collateral, in the form of cash and securities, is held in segregated accounts with the fund's custodian in connection with these agreements. For
derivatives traded under an ISDA Master Agreement, which contains a credit support annex, the collateral requirements are netted across all transactions traded under such counterparty-specific agreement and an amount
is posted from one party to the other to collateralize such obligations. Cash that has been segregated or delivered to cover the fund's collateral or margin obligations under derivative contracts, if any, will be
reported separately in the Statement of Assets and Liabilities as restricted cash for uncleared derivatives and/or deposits with brokers for cleared derivatives. Securities pledged as collateral or margin for the same
purpose, if any, are noted in the Portfolio of Investments. The fund may be required to make payments of interest on uncovered collateral or margin obligations with the broker. Any such payments are included in
“Interest expense and fees” in the Statement of Operations.
Purchased Options — The fund purchased put options for a premium. Purchased put options entitle the holder to sell a specified number of shares or units of a particular security, currency or index at
a specified price at a specified date or within a specified period of time. Purchasing put options may hedge against an anticipated decline in the value of portfolio securities or currency or decrease the fund's
exposure to an underlying instrument.
The premium paid is initially
recorded as an investment in the Statement of Assets and Liabilities. That investment is subsequently marked-to-market daily with the difference between the premium paid and the market value of the purchased option
being recorded as unrealized appreciation or depreciation. Premiums paid for purchased put options which have expired are treated as realized losses on investments in the Statement of Operations. Upon the exercise or
closing of a purchased put option, the premium paid is offset against the proceeds on the sale of the underlying security or financial instrument in order to determine the realized gain or loss on investments.
Whether or not the option is
exercised, the fund's maximum risk of loss from purchasing an option is the amount of premium paid. All option contracts involve credit risk if the counterparty to the option contract fails to perform. For uncleared
options, this risk is mitigated in cases where there is an ISDA Master Agreement between the fund and the counterparty providing for netting as described above and, where applicable, by the posting of collateral by
the counterparty to the fund to cover the fund’s exposure to the counterparty under such ISDA Master Agreement.
Futures Contracts — The fund entered into futures contracts which may be used to hedge against or obtain broad market exposure, interest rate exposure, currency exposure, or to manage duration. A
futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.
Notes to Financial
Statements (unaudited) - continued
Upon entering into a futures
contract, the fund is required to deposit with the broker, either in cash or securities, an initial margin in an amount equal to a specified percentage of the notional amount of the contract. Subsequent payments
(variation margin) are made or received by the fund each day, depending on the daily fluctuations in the value of the contract, and are recorded for financial statement purposes as unrealized gain or loss by the fund
until the contract is closed or expires at which point the gain or loss on futures contracts is realized.
The fund bears the risk of interest
rates, exchange rates or securities prices moving unexpectedly, in which case, the fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. While futures contracts may present
less counterparty risk to the fund since the contracts are exchange traded and the exchange’s clearinghouse guarantees payments to the broker, there is still counterparty credit risk due to the insolvency of the
broker. The fund’s maximum risk of loss due to counterparty credit risk is equal to the margin posted by the fund to the broker plus any gains or minus any losses on the outstanding futures contracts.
Forward Foreign Currency Exchange
Contracts — The fund entered into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. These contracts may be
used to hedge the fund’s currency risk or for non-hedging purposes. For hedging purposes, the fund may enter into contracts to deliver or receive foreign currency that the fund will receive from or use in its
normal investment activities. The fund may also use contracts to hedge against declines in the value of foreign currency denominated securities due to unfavorable exchange rate movements. For non-hedging purposes, the
fund may enter into contracts with the intent of changing the relative exposure of the fund’s portfolio of securities to different currencies to take advantage of anticipated exchange rate changes.
Forward foreign currency exchange
contracts are adjusted by the daily exchange rate of the underlying currency and any unrealized gains or losses are recorded as a receivable or payable for forward foreign currency exchange contracts until the
contract settlement date. On contract settlement date, any gain or loss on the contract is recorded as realized gains or losses on forward foreign currency exchange contracts.
Risks may arise upon entering into
these contracts from unanticipated movements in the value of the contract and from the potential inability of counterparties to meet the terms of their contracts. Generally, the fund’s maximum risk due to
counterparty credit risk is the unrealized gain on the contract due to the use of Continuous Linked Settlement, a multicurrency cash settlement system for the centralized settlement of foreign transactions. This risk
is mitigated in cases where there is an ISDA Master Agreement between the fund and the counterparty providing for netting as described above and, where applicable, by the posting of collateral by the counterparty to
the fund to cover the fund’s exposure to the counterparty under such ISDA Master Agreement.
Statement of Cash Flows — Information on financial transactions which have been settled through the receipt or disbursement of cash or restricted cash is presented in the Statement of Cash Flows. Cash as
presented in the fund's Statement of Assets and Liabilities includes cash on hand at the fund's custodian bank and does not include any short-term investments. Restricted cash is presented in the fund's Statement of
Assets
Notes to Financial
Statements (unaudited) - continued
and Liabilities as restricted cash for uncleared
derivatives and/or deposits with brokers for cleared derivatives and represents cash that has been segregated or delivered to cover the fund's collateral or margin obligations under derivative contracts.
The following table provides a
reconciliation of cash and restricted cash reported within the Statement of Assets and Liabilities with that shown in the Statement of Cash Flows:
|
| 5/31/23
|
| Cash
| $108
|
| Restricted cash
| —
|
| Restricted cash included in deposits with brokers
| 31,200
|
| Total cash and restricted cash in the Statement of Cash Flows
| $31,308
|
Indemnifications — Under the fund's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to
the fund. Additionally, in the normal course of business, the fund enters into agreements with service providers that may contain indemnification clauses. The fund's maximum exposure under these agreements is unknown
as this would involve future claims that may be made against the fund that have not yet occurred.
Investment Transactions and
Income — Investment transactions are recorded on the trade date. Interest income is recorded on the accrual basis. All premium and discount is amortized or accreted for financial statement purposes in accordance with U.S. generally accepted accounting principles. Dividends received in cash are recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded when the fund is informed of the dividend if such information is
obtained subsequent to the ex-dividend date. Dividend and interest payments received in additional securities are recorded on the ex-dividend or ex-interest date in an amount equal to the value of the security on such
date. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.
The fund may receive proceeds from
litigation settlements. Any proceeds received from litigation involving portfolio holdings are reflected in the Statement of Operations in realized gain/loss if the security has been disposed of by the fund or in
unrealized gain/loss if the security is still held by the fund. Any other proceeds from litigation not related to portfolio holdings are reflected as other income in the Statement of Operations.
Tax Matters and Distributions — The fund intends to qualify as a regulated investment company, as defined under Subchapter M of the Internal Revenue Code, and to distribute all of its taxable income, including
realized capital gains. As a result, no provision for federal income tax is required. The fund’s federal tax returns, when filed, will remain subject to examination by the Internal Revenue Service for a three
year period. Management has analyzed the fund’s tax positions taken on federal and state tax returns for all open tax years and does not believe that there are any uncertain tax positions that require
recognition of a tax liability. Foreign taxes, if any, have been accrued by the fund in the accompanying financial statements in accordance with the applicable foreign tax law. Foreign income taxes may be withheld by
certain countries in which the fund invests. Additionally, capital gains realized by the fund on securities issued in or by certain foreign countries may be subject to capital gains tax imposed by those
countries.
Notes to Financial
Statements (unaudited) - continued
Distributions to shareholders are
recorded on the ex-dividend date. The fund employs a managed distribution policy whereby the fund seeks to pay monthly distributions based on an annual rate of 9.50% of the fund’s average monthly net asset
value. As a result, distributions may exceed actual earnings which may result in a tax return of capital. Distributions in any year may include a substantial return of capital component. Please refer to the Financial
Highlights for distributions of tax returns of capital made during the prior five years. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S.
generally accepted accounting principles. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no
impact on net assets or net asset value per share. Temporary differences which arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will
reverse at some time in the future.
Book/tax differences primarily
relate to amortization and accretion of debt securities.
For the six months ended May 31,
2023, the amount of distributions estimated to be a tax return of capital was approximately $807,338 which is reported as distributions from other sources in the Statements of Changes in Net Assets. All or a portion
of this amount may be redesignated as ordinary income and/or capital gains at fiscal year end.
The tax character of distributions
made during the current period will be determined at fiscal year end. The tax character of distributions declared to shareholders for the last fiscal year is as follows:
|
| Year ended
11/30/22
|
| Ordinary income (including any short-term capital gains)
| $2,327,302
|
| Tax return of capital (b)
| 1,468,441
|
| Total distributions
| $3,795,743
|
| (b)
| Distributions in excess of tax basis earnings and profits are reported in the financial statements as a tax return of capital.
|
The federal tax cost and the tax
basis components of distributable earnings were as follows:
| As of 5/31/23
|
|
| Cost of investments
| $53,842,194
|
| Gross appreciation
| 172,292
|
| Gross depreciation
| (5,367,718)
|
| Net unrealized appreciation (depreciation)
| $(5,195,426)
|
| As of 11/30/22
|
|
| Capital loss carryforwards
| (6,284,951)
|
| Late year ordinary loss deferral
| (11,911)
|
| Other temporary differences
| 85
|
| Net unrealized appreciation (depreciation)
| (7,001,783)
|
The aggregate cost above includes
prior fiscal year end tax adjustments, if applicable.
Notes to Financial
Statements (unaudited) - continued
As of November 30, 2022, the fund
had capital loss carryforwards available to offset future realized gains. These net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses. Such losses
are characterized as follows:
| Short-Term
| $(582,326)
|
| Long-Term
| (5,702,625)
|
| Total
| $(6,284,951)
|
(3) Transactions with
Affiliates
Investment Adviser — The fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to the fund. The management fee is computed daily and paid monthly at an annual rate of 0.65% of the fund’s average daily net assets. The fund pays the adviser a monthly fee equal to 20% of the
fund’s leverage income after deducting the expenses of leveraging (“net leverage income”); provided, however, if the fund’s net leverage income is less than zero, MFS will reduce its management
fee by an amount equivalent to the percentage indicated of the fund’s net leverage income. The management fee incurred for the six months ended May 31, 2023 was equivalent to an annual effective rate of 0.71% of the fund's average daily net assets.
The investment adviser has agreed in
writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, certain tax reclaim recovery expenses (including
contingency fees and closing agreement expenses), and investment-related expenses, such that total fund operating expenses do not exceed 1.34% annually of the fund’s average daily net assets. This written
agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until November 30, 2023. For the six months ended May 31, 2023, this reduction amounted to
$17,959, which is included in the reduction of total expenses in the Statement of Operations.
Transfer Agent — The fund engages Computershare Trust Company, N.A. (“Computershare”) as the sole transfer agent for the fund. MFS Service Center, Inc. (MFSC) monitors and supervises
the activities of Computershare for an agreed upon fee approved by the Board of Trustees. For the six months ended May 31, 2023, these fees paid to MFSC amounted to $1,463.
Administrator — MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to the fund. Under an administrative services agreement, the fund
reimburses MFS the costs incurred to provide these services. The fund is charged an annual fixed amount of $17,500 plus a fee based on average daily net assets. The administrative services fee incurred for the six
months ended May 31, 2023 was equivalent to an annual effective rate of 0.0492% of the fund's average daily net assets.
Trustees’ and Officers’
Compensation — The fund pays compensation to independent Trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee chairpersons. The fund does not
pay compensation directly to Trustees or officers of the fund who are also officers of the investment adviser, all of whom receive remuneration from MFS for their services to the fund. Certain officers and Trustees of
the fund are officers or directors of MFS and MFSC.
Notes to Financial
Statements (unaudited) - continued
Other — The fund invests in the MFS Institutional Money Market Portfolio which is managed by MFS and seeks current income consistent with preservation of capital and liquidity. This money
market fund does not pay a management fee to MFS but does incur investment and operating costs.
(4) Portfolio Securities
For the six months ended May 31,
2023, purchases and sales of investments, other than purchased options with an expiration date of less than one year from the time of purchase and short-term obligations, were as follows:
|
| Purchases
| Sales
|
| U.S. Government securities
| $897,354
| $906,938
|
| Non-U.S. Government securities
| 10,797,793
| 13,332,577
|
(5) Shares of Beneficial
Interest
The fund's Declaration of Trust
permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest. The Trustees have authorized the repurchase by the fund of up to 10% annually of its own shares of beneficial
interest.
The fund repurchased 292,754 shares of beneficial
interest during the six months ended May 31, 2023 at an average price per share of $1.67 and a weighted average discount of 8.78% per share. The fund did not repurchase any shares for the year ended November 30, 2022.
Transactions in fund shares were as follows:
|
| Six months ended
5/31/23
|
| Year ended
11/30/22
|
|
| Shares
| Amount
|
| Shares
| Amount
|
| Shares issued to shareholders in reinvestment of distributions
| 13,107
| $24,238
|
| 74,893
| $155,726
|
| Capital shares repurchased
| (292,754)
| (488,157)
|
| —
| —
|
| Net change
| (279,647)
| $(463,919)
|
| 74,893
| $155,726
|
(6) Loan Agreement
The fund has a credit agreement with
a bank for a revolving secured line of credit that can be drawn upon up to $17,000,000. Prior to May 30, 2023, the maximum amount of the revolving secured line of credit was $20,000,000. At May 31, 2023, the fund had
outstanding borrowings under this agreement in the amount of $15,000,000, which are secured by a lien on the fund’s assets. The loan’s carrying value in the fund’s Statement of Assets and Liabilities
approximates its fair value. The loan value as of the reporting date is considered level 2 under the fair value hierarchy. The credit agreement matures on August 19, 2023. Borrowings under the agreement can be made
for liquidity or leverage purposes. Interest is charged at a rate per annum equal to SOFR (Secured Overnight Financing Rate) plus 0.10% plus an agreed upon spread with the option to choose SOFR periods of 1 or 3
months, or at the option of the borrower an alternate base rate plus an agreed upon spread. The fund incurred interest expense of $428,048 during the period, which is included in “Interest expense and
fees” in the Statement of Operations. The fund may also be charged a commitment fee based on the average daily unused portion of the line of credit. The fund paid a commitment fee of $2,520 during the period,
which is included in “Interest expense and fees” in the Statement of Operations. For the six months ended May 31, 2023, the average loan
Notes to Financial
Statements (unaudited) - continued
balance was $15,873,626 at a weighted average
annual interest rate of 5.41%. The fund is subject to certain covenants including, but not limited to, requirements with respect to asset coverage, portfolio diversification and liquidity.
(7) Investments in 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 following were affiliated issuers:
| Affiliated Issuers
| Beginning
Value
| Purchases
| Sales
Proceeds
| Realized
Gain
(Loss)
| Change in
Unrealized
Appreciation or
Depreciation
| Ending
Value
|
| MFS Institutional Money Market Portfolio
| $794,611
| $7,155,605
| $7,081,355
| $(57)
| $(86)
| $868,718
|
| Affiliated Issuers
| Dividend
Income
| Capital Gain
Distributions
|
| MFS Institutional Money Market Portfolio
| $33,054
| $—
|
Report of Independent Registered Public
Accounting Firm
To the Shareholders and the Board
of Trustees of MFS Intermediate High Income Fund
Results of Review of Interim Financial
Statements
We have reviewed the accompanying
statement of assets and liabilities of MFS Intermediate High Income Fund (the “Fund”), including the portfolio of investments, as of May 31, 2023, and the related statements of operations, changes in net
assets, cash flows and financial highlights for the six-month period then ended and the related notes (collectively referred to as the “interim financial statements”). Based on our review, we are not aware
of any material modifications that should be made to the interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.
We have previously audited, in
accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the statement of changes in net assets for the year ended November 30, 2022 and the financial
highlights for each of the five years in the period then ended; and in our report dated January 13, 2023, we expressed an unqualified opinion on those financial statements.
Basis for Review Results
These financial statements are the
responsibility of the Fund's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and
the applicable rules and regulations of the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying
analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the
objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Boston, Massachusetts
July 14, 2023
Proxy Voting Policies and
Information
MFS votes proxies on behalf of the
fund pursuant to proxy voting policies and procedures that are available without charge, upon request, by calling 1-800-225-2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s Web site at http://www.sec.gov.
Information regarding how the fund
voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available by August 31 of each year without charge by visiting mfs.com/proxyvoting, or by visiting the SEC’s Web site at http://www.sec.gov.
Quarterly Portfolio
Disclosure
The fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s Web site at
http://www.sec.gov. A shareholder can obtain the portfolio holdings report for the first and third quarters of the fund's fiscal year at mfs.com/closedendfunds by choosing the fund's name and then scrolling to the “Resources” section and clicking on the “Prospectus and Reports” tab.
Further Information
From time to time, MFS may post
important information about the fund or the MFS Funds on the MFS Web site (mfs.com). This information is available at https://www.mfs.com/announcements or at mfs.com/closedendfunds by choosing the fund's name and then scrolling to the “Resources” section and clicking on the “Announcements” tab, if any.
Additional information about the
fund (e.g., performance, dividends and the fund’s price history) is also available at mfs.com/closedendfunds by choosing the fund's name, if any.
INFORMATION ABOUT FUND
CONTRACTS AND LEGAL CLAIMS
The fund has entered into
contractual arrangements with an investment adviser, administrator, transfer agent, and custodian who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended
beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them
against the service providers, either directly or on behalf of the fund.
Under the Trust’s By-Laws, any
claims asserted against or on behalf of the MFS Funds, including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.
CONTACT US
TRANSFER AGENT, REGISTRAR, AND
DIVIDEND DISBURSING AGENT
CALL
1-800-637-2304
9 a.m. to 5 p.m. Eastern time
WRITE
Computershare Trust Company, N.A.
P.O. Box 43078
Providence, RI 02940-3078
New York Stock Exchange Symbol:
CIF
Item 1(b):
A copy of the notice transmitted to the Registrant's shareholders in reliance on Rule 30e-3 of the Investment Company Act of 1940, as amended that contains disclosure specified by paragraph (c)(3) of Rule 30e-3 is attached hereto as EX-99.30e-3Notice.
ITEM 2. CODE OF ETHICS.
During the period covered by this report, the Registrant has not amended any provision in its Code of Ethics (the "Code") that relates to an element of the Code's definition enumerated in paragraph (b) of Item 2 of this Form N-CSR. During the period covered by this report, the Registrant did not grant a waiver, including an implicit waiver, from any provision of the Code.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable for semi-annual reports.
ITEM 6. INVESTMENTS
A schedule of investments of the Registrant is included as part of the report to shareholders of the Registrant under Item 1(a) of this Form N-CSR.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable for semi-annual reports.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
There were no changes during the period.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
MFS Intermediate High Income Fund
|
|
|
|
|
(c) Total Number of
|
(d) Maximum Number
|
|
|
|
|
|
Shares Purchased as
|
(or Approximate
|
|
|
|
(a) Total number of
|
(b) Average
|
Part of Publicly
|
Dollar Value) of
|
|
|
Period
|
Shares Purchased
|
Price Paid
|
Announced Plans or
|
Shares that May Yet
|
|
|
|
|
per Share
|
Programs
|
Be Purchased under
|
|
|
|
|
|
|
the Plans or Programs
|
|
|
|
|
|
|
|
|
|
12/01/22-12/31/22
|
0
|
N/A
|
0
|
1,940,399
|
|
|
1/01/23-1/31/23
|
0
|
N/A
|
0
|
1,940,399
|
|
|
2/01/23-2/28/23
|
0
|
N/A
|
0
|
1,940,399
|
|
|
3/01/23-3/31/23
|
25,177
|
1.68
|
25,177
|
1,915,222
|
|
|
4/01/23-4/30/23
|
125,285
|
1.69
|
125,285
|
1,789,937
|
|
|
5/01/23-5/31/23
|
142,292
|
1.65
|
142,292
|
1,647,645
|
|
|
Total
|
292,754
|
1.67
|
292,754
|
|
|
|
|
|
|
|
|
Note: The Board approved procedures to repurchase shares and reviews the results periodically. The notification to shareholders of the program is part of the semi-annual and annual reports sent to shareholders. These annual programs begin on October 1st of each year. The programs conform to the conditions of Rule 10b-18 of the Securities Exchange Act of 1934 and limit the aggregate number of shares that may be purchased in each annual period (October 1 through the following September 30) to 10% of the Registrant's outstanding shares as of the first day of the plan year (October 1). The aggregate number of shares available for purchase for the October 1, 2022 plan year is 1,940,399.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There were no material changes to the procedures by which shareholders may send recommendations to the Board for nominees to the Registrant's Board since the Registrant last provided disclosure as to such procedures in response to the requirements of Item 407 (c)(2)(iv) of Regulation S-K or this Item.
ITEM 11. 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 report on Form N-CSR, 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 period covered by the report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable for semi-annual reports.
ITEM 13. EXHIBITS.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable.
(2)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 as EX-99.302CERT.
(3)Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable.
(4)Change in the registrant's independent public accountant. Not applicable.
(b)If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for the purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Attached hereto as EX-99.906CERT.
(c)Registrant's Rule 30e-3 Notice pursuant to Item 1(b) of Form N-CSR. Attached hereto as EX-99.30e-3Notice.
(d)Notices to Trust's common shareholders in accordance with Investment Company Act Section 19(a) and Rule 19a-1. Attached hereto as Ex-99.19a-1.
Notice
A copy of the Agreement and 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 INTERMEDIATE HIGH INCOME FUND
By (Signature and Title)*
/S/ DAVID L. DILORENZO
David L. DiLorenzo, President
Date: July 14, 2023
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)*
/S/ DAVID L. DILORENZO
David L. DiLorenzo, President (Principal Executive Officer)
Date: July 14, 2023
By (Signature and Title)*
/S/ JAMES O. YOST
James O. Yost, Treasurer (Principal Financial Officer and Accounting Officer) Date: July 14, 2023
* Print name and title of each signing officer under his or her signature.
EX-99.302CERT
MFS INTERMEDIATE HIGH INCOME FUND
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act
I, James O. Yost, certify that:
1.I have reviewed this report on Form N-CSR of MFS Intermediate High Income Fund;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by the report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: July 14, 2023
/S/ JAMES O. YOST
James O. Yost
Treasurer (Principal Financial Officer and Accounting Officer)
EX-99.302CERT
MFS INTERMEDIATE HIGH INCOME FUND
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act
I, David L. DiLorenzo, certify that:
1.I have reviewed this report on Form N-CSR of MFS Intermediate High Income Fund;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by the report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: July 14, 2023
/S/ DAVID L. DILORENZO
David L. DiLorenzo
President (Principal Executive Officer)
EX-99.906CERT
MFS INTERMEDIATE HIGH INCOME FUND
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
I, James O. Yost, certify that, to my knowledge:
1.The Form N-CSR (the "Report") of MFS Intermediate High Income Fund (the "Registrant") fully complies for the period covered by the Report with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
Date: July 14, 2023
/S/ JAMES O. YOST
James O. Yost
Treasurer (Principal Financial Officer and Accounting Officer)
A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request.
EX-99.906CERT
MFS INTERMEDIATE HIGH INCOME FUND
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
I, David L. DiLorenzo, certify that, to my knowledge:
1.The Form N-CSR (the "Report") of MFS Intermediate High Income Fund (the "Registrant") fully complies for the period covered by the Report with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
Date: July 14, 2023
/S/ DAVID L. DILORENZO
David L. DiLorenzo
President (Principal Executive Officer)
A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request.
MFS Intermediate High Income Fund
Thank you for being a shareholder. You are encouraged to access and review this important report containing information about the fund, including portfolio holdings and financial statements.
The report is available at:
closedendfunds.mfs.com
This report is available by mail or email upon request free of charge. Reports for the prior reporting period and the fund's portfolio holdings for its most recent fi rst and third fiscal quarters are also available online and in print by request.
Current and future report delivery requests can be submitted at any time using the options in the right panel.
Why am I receiving this Notice?
The Securities and Exchange Commission adopted new rule 30e-3, which, among other things, allows mutual fund companies to deliver shareholder reports by making such reports accessible at a website address. You still may elect to receive a paper copy of the current report and/or any future reports by following the instructions on the panel on the right-hand side.
001CD80003 : CCS-Letter-75GSM-Plain-white-20/50#
An Important Report to Shareholders is Now Available Online and In Print by Request
Scan this code with your
smartphone to access your report:
Or download your report
using the link in the left panel.
Prefer a copy by mail or email?
Within USA, US Territories & Canada
800-637-2304
Outside USA, US Territories & Canada
(781) 575-2879
Sign up to get future
Fund Reports by email
Sign in to computershare.com/investor
Select My Profile >
Communications Preferences
and choose your preferred method
Please contact us with any questions:
Website
www.computershare.com/mfs
Phone
Within USA, US Territories & Canada
800-637-2304
Outside USA, US Territories & Canada
(781) 575-2879
Regular Mail
Computershare Trust Company, N.A.
P.O. Box 505005
Louisville, KY 40233-5005
In accordance with Section 23(c) of the Investment Company Act of 1940, the fund hereby gives notice that it may from time to time repurchase shares of the fund in the open market at the option of the Board of Trustees and on such terms as the Trustees shall determine.
MFS® Intermediate High Income Fund
P.O. Box 43078
Providence, RI 02940-3078
Notice to shareholders — Source of distribution
Distribution period |
May-2023 |
Distribution amount per share |
$0.01463 |
The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund's fiscal year begins each December 1st. All amounts are expressed per common share.
|
|
% Breakdown |
Total cumulative |
% Breakdown of the total |
|
Current |
of current |
distributions for the |
cumulative distributions |
|
distribution |
distribution |
fiscal year to date |
for the fiscal year to date |
Net Investment Income |
$0.00746 |
51% |
$0.04529 |
|
52% |
|
Net Realized ST Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
Net Realized LT Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
Return of Capital or |
|
|
|
|
|
|
|
Other Capital Source |
0.00717 |
49% |
0.04180 |
|
48% |
|
Total (per common share) |
$0.01463 |
100% |
$0.08709 |
|
100% |
|
Average annual total return (in relation to NAV) for the five years ended 4-30-2023 |
|
|
2.45% |
|
Annualized current distribution rate expressed as a percentage of month end NAV as of 4-30-2023 |
|
9.49% |
|
Cumulative total return (in relation to NAV) for the fiscal year through 4-30-2023 |
|
|
5.34% |
|
Cumulative fiscal year distributions as a percentage of NAV as of 4-30-2023 |
|
|
4.71% |
|
You should not draw any conclusions about the fund's investment performance from the amount of this distribution or from the terms of the fund's managed distribution plan.
The fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. A return of capital distribution does not necessarily reflect the fund's investment performance and should not be confused with "yield" or "income."
The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax-reporting purposes. The actual amounts and sources of the amounts for tax-reporting purposes will depend upon the fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. If you have any questions regarding this information, please call our fund service department at 1-800-637-2304 any business day from 9 a.m. to 5 p.m. Eastern time.
CIHSN-0523
MFS® Intermediate High Income Fund
P.O. Box 43078
Providence, RI 02940-3078
Notice to shareholders — Source of distribution
Distribution period |
April-2023 |
Distribution amount per share |
$0.01432 |
The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund's fiscal year begins each December 1st. All amounts are expressed per common share.
|
|
% Breakdown |
Total cumulative |
% Breakdown of the total |
|
Current |
of current |
distributions for the |
cumulative distributions |
|
distribution |
distribution |
fiscal year to date |
for the fiscal year to date |
Net Investment Income |
$0.00745 |
52% |
$0.03768 |
|
52% |
|
Net Realized ST Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
Net Realized LT Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
Return of Capital or |
|
|
|
|
|
|
|
Other Capital Source |
0.00687 |
48% |
0.03478 |
|
48% |
|
Total (per common share) |
$0.01432 |
100% |
$0.07246 |
|
100% |
|
Average annual total return (in relation to NAV) for the five years ended 3-31-2023 |
|
|
2.36% |
|
Annualized current distribution rate expressed as a percentage of month end NAV as of 3-31-2023 |
|
9.29% |
|
Cumulative total return (in relation to NAV) for the fiscal year through 3-31-2023 |
|
|
4.43% |
|
Cumulative fiscal year distributions as a percentage of NAV as of 3-31-2023 |
|
|
3.92% |
|
You should not draw any conclusions about the fund's investment performance from the amount of this distribution or from the terms of the fund's managed distribution plan.
The fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. A return of capital distribution does not necessarily reflect the fund's investment performance and should not be confused with "yield" or "income."
The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax-reporting purposes. The actual amounts and sources of the amounts for tax-reporting purposes will depend upon the fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. If you have any questions regarding this information, please call our fund service department at 1-800-637-2304 any business day from 9 a.m. to 5 p.m. Eastern time.
CIHSN-0423
MFS® Intermediate High Income Fund
P.O. Box 43078
Providence, RI 02940-3078
Notice to shareholders — Source of distribution
Distribution period |
March-2023 |
Distribution amount per share |
$0.01460 |
The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund's fiscal year begins each December 1st. All amounts are expressed per common share.
|
|
% Breakdown |
Total cumulative |
% Breakdown of the total |
|
Current |
of current |
distributions for the |
cumulative distributions |
|
distribution |
distribution |
fiscal year to date |
for the fiscal year to date |
Net Investment Income |
$0.00847 |
58% |
$0.03023 |
|
52% |
|
Net Realized ST Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
Net Realized LT Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
Return of Capital or |
|
|
|
|
|
|
|
Other Capital Source |
0.00613 |
42% |
0.02791 |
|
48% |
|
Total (per common share) |
$0.01460 |
100% |
$0.05814 |
|
100% |
|
Average annual total return (in relation to NAV) for the five years ended 2-28-2023 |
|
|
1.63% |
|
Annualized current distribution rate expressed as a percentage of month end NAV as of 2-28-2023 |
|
9.63% |
|
Cumulative total return (in relation to NAV) for the fiscal year through 2-28-2023 |
|
|
1.87% |
|
Cumulative fiscal year distributions as a percentage of NAV as of 2-28-2023 |
|
|
3.19% |
|
You should not draw any conclusions about the fund's investment performance from the amount of this distribution or from the terms of the fund's managed distribution plan.
The fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. A return of capital distribution does not necessarily reflect the fund's investment performance and should not be confused with "yield" or "income."
The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax-reporting purposes. The actual amounts and sources of the amounts for tax-reporting purposes will depend upon the fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. If you have any questions regarding this information, please call our fund service department at 1-800-637-2304 any business day from 9 a.m. to 5 p.m. Eastern time.
CIHSN-0323
MFS® Intermediate High Income Fund
P.O. Box 43078
Providence, RI 02940-3078
Notice to shareholders — Source of distribution
Distribution period |
February-2023 |
Distribution amount per share |
$0.01479 |
The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund's fiscal year begins each December 1st. All amounts are expressed per common share.
|
|
% Breakdown |
Total cumulative |
% Breakdown of the total |
|
Current |
of current |
distributions for the |
cumulative distributions |
|
distribution |
distribution |
fiscal year to date |
for the fiscal year to date |
Net Investment Income |
$0.00651 |
44% |
$0.02133 |
|
49% |
|
Net Realized ST Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
Net Realized LT Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
Return of Capital or |
|
|
|
|
|
|
|
Other Capital Source |
0.00828 |
56% |
0.02221 |
|
51% |
|
Total (per common share) |
$0.01479 |
100% |
$0.04354 |
|
100% |
|
Average annual total return (in relation to NAV) for the five years ended 1-31-2023 |
|
|
1.77% |
|
Annualized current distribution rate expressed as a percentage of month end NAV as of 1-31-2023 |
|
9.44% |
|
Cumulative total return (in relation to NAV) for the fiscal year through 1-31-2023 |
|
|
4.38% |
|
Cumulative fiscal year distributions as a percentage of NAV as of 1-31-2023 |
|
|
2.32% |
|
You should not draw any conclusions about the fund's investment performance from the amount of this distribution or from the terms of the fund's managed distribution plan.
The fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. A return of capital distribution does not necessarily reflect the fund's investment performance and should not be confused with "yield" or "income."
The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax-reporting purposes. The actual amounts and sources of the amounts for tax-reporting purposes will depend upon the fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. If you have any questions regarding this information, please call our fund service department at 1-800-637-2304 any business day from 9 a.m. to 5 p.m. Eastern time.
CIHSN-0223
MFS® Intermediate High Income Fund
P.O. Box 43078
Providence, RI 02940-3078
Notice to shareholders — Source of distribution
Distribution period |
January-2023 |
Distribution amount per share |
$0.01452 |
The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund's fiscal year begins each December 1st. All amounts are expressed per common share.
|
|
% Breakdown |
Total cumulative |
% Breakdown of the total |
|
Current |
of current |
distributions for the |
cumulative distributions |
|
distribution |
distribution |
fiscal year to date |
for the fiscal year to date |
Net Investment Income |
$0.00799 |
55% |
$0.01581 |
|
55% |
|
Net Realized ST Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
Net Realized LT Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
Return of Capital or |
|
|
|
|
|
|
|
Other Capital Source |
0.00653 |
45% |
0.01294 |
|
45% |
|
Total (per common share) |
$0.01452 |
100% |
$0.02875 |
|
100% |
|
Average annual total return (in relation to NAV) for the five years ended 12-31-2022 |
|
|
0.82% |
|
Annualized current distribution rate expressed as a percentage of month end NAV as of 12-31-2022 |
|
9.68% |
|
Cumulative total return (in relation to NAV) for the fiscal year through 12-31-2022 |
|
|
-0.83% |
|
Cumulative fiscal year distributions as a percentage of NAV as of 12-31-2022 |
|
|
1.60% |
|
You should not draw any conclusions about the fund's investment performance from the amount of this distribution or from the terms of the fund's managed distribution plan.
The fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. A return of capital distribution does not necessarily reflect the fund's investment performance and should not be confused with "yield" or "income."
The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax-reporting purposes. The actual amounts and sources of the amounts for tax-reporting purposes will depend upon the fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. If you have any questions regarding this information, please call our fund service department at 1-800-637-2304 any business day from 9 a.m. to 5 p.m. Eastern time.
CIHSN-0123
MFS® Intermediate High Income Fund
P.O. Box 43078
Providence, RI 02940-3078
Notice to shareholders — Source of distribution
Distribution period |
December-2022 |
Distribution amount per share |
$0.01423 |
The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund's fiscal year begins each December 1st. All amounts are expressed per common share.
|
|
% Breakdown |
Total cumulative |
% Breakdown of the total |
|
Current |
of current |
distributions for the |
cumulative distributions |
|
distribution |
distribution |
fiscal year to date |
for the fiscal year to date |
Net Investment Income |
$0.01423 |
100% |
$0.01423 |
|
100% |
|
Net Realized ST Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
Net Realized LT Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
Return of Capital or |
|
|
|
|
|
|
|
Other Capital Source |
0.00000 |
0% |
0.00000 |
|
0% |
|
Total (per common share) |
$0.01423 |
100% |
$0.01423 |
|
100% |
|
Average annual total return (in relation to NAV) for the five years ended 11-30-2022 |
|
|
1.00% |
|
Annualized current distribution rate expressed as a percentage of month end NAV as of 11-30-2022 |
|
9.33% |
|
Cumulative total return (in relation to NAV) for the fiscal year through 11-30-2022 |
|
|
-13.19% |
|
Cumulative fiscal year distributions as a percentage of NAV as of 11-30-2022 |
|
|
0.78% |
|
You should not draw any conclusions about the fund's investment performance from the amount of this distribution or from the terms of the fund's managed distribution plan.
The fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. A return of capital distribution does not necessarily reflect the fund's investment performance and should not be confused with "yield" or "income."
The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax-reporting purposes. The actual amounts and sources of the amounts for tax-reporting purposes will depend upon the fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. If you have any questions regarding this information, please call our fund service department at 1-800-637-2304 any business day from 9 a.m. to 5 p.m. Eastern time.
CIHSN-1222
MFS Intermediate High In... (NYSE:CIF)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
MFS Intermediate High In... (NYSE:CIF)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024
