N-Q 1 dnq.htm MFS INTERMEDIATE HIGH INCOME FUND N-Q MFS INTERMEDIATE HIGH INCOME FUND N-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-5567

MFS INTERMEDIATE HIGH INCOME FUND

(Exact name of registrant as specified in charter)

500 Boylston Street, Boston, Massachusetts 02116

(Address of principal executive offices) (Zip code)

Susan S. Newton

Massachusetts Financial Services Company

500 Boylston Street

Boston, Massachusetts 02116

(Name and address of agents for service)

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

Date of fiscal year end: November 30

Date of reporting period: August 31, 2010


 

ITEM 1. SCHEDULE OF INVESTMENTS.


 

LOGO


 

MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 8/31/10

 

Issuer

   Shares/Par      Value ($)  

Bonds – 127.3%

     

Aerospace – 1.8%

     

BE Aerospace, Inc., 8.5%, 2018

   $ 315,002       $ 337,022   

Bombardier, Inc., 7.5%, 2018 (n)

     280,000         298,200   

Hawker Beechcraft Acquisition Co. LLC, 8.5%, 2015

     406,000         311,605   

Oshkosh Corp., 8.25%, 2017

     75,000         78,938   

Oshkosh Corp., 8.5%, 2020

     85,000         90,313   
           
      $ 1,116,078   
           

Airlines – 0.9%

     

American Airlines Pass-Through Trust, 7.377%, 2019

   $ 122,682       $ 108,574   

Continental Airlines, Inc., 7.339%, 2014

     132,761         130,770   

Delta Air Lines, Inc., 7.711%, 2011

     330,000         338,250   
           
      $ 577,594   
           

Apparel Manufacturers – 1.4%

     

Broder Brothers Co., 11.25%, 2010

   $ 260,000       $ 254,800   

Hanesbrands, Inc., 8%, 2016

     245,000         255,106   

Hanesbrands, Inc., FRN, 4.121%, 2014

     220,000         209,000   

Phillips-Van Heusen Corp., 7.375%, 2020

     120,000         123,600   
           
      $ 842,506   
           

Asset-Backed & Securitized – 1.7%

     

Banc of America Commercial Mortgage, Inc., FRN, 6.415%, 2051 (z)

   $ 450,000       $ 130,382   

Citigroup Commercial Mortgage Trust, FRN, 5.886%, 2049

     275,000         59,671   

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.936%, 2049

     250,617         91,543   

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.936%, 2049

     404,598         133,713   

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.936%, 2049

     1,169,622         351,159   

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 6.259%, 2051

     155,000         46,398   

Merrill Lynch Mortgage Trust, FRN, 6.019%, 2050

     155,000         49,317   

Merrill Lynch/Countrywide Commercial Mortgage Trust, FRN, 5.902%, 2050

     125,000         99,676   

Wachovia Bank Commercial Mortgage Trust, FRN, 5.887%, 2047

     250,000         52,995   

Wachovia Bank Commercial Mortgage Trust, FRN, 5.947%, 2047

     175,000         32,178   
           
      $ 1,047,032   
           

Automotive – 3.7%

     

Accuride Corp., 9.5%, 2018 (n)

   $ 190,000       $ 194,750   

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

     235,000         252,625   

Ford Motor Credit Co. LLC, 12%, 2015

     1,110,000         1,311,820   

General Motors Corp., 7.125%, 2013 (d)

     260,000         80,600   

Goodyear Tire & Rubber Co., 8.625%, 2011

     107,000         111,815   

Goodyear Tire & Rubber Co., 9%, 2015

     194,000         203,215   

Goodyear Tire & Rubber Co., 10.5%, 2016

     65,000         72,150   
           
      $ 2,226,975   
           

Basic Industry – 0.4%

     

TriMas Corp., 9.75%, 2017 (n)

   $ 215,000       $ 221,988   
           

Broadcasting – 5.8%

     

Allbritton Communications Co., 8%, 2018

   $ 130,000       $ 128,050   

Bonten Media Acquisition Co., 9%, 2015 (p)(z)

     134,221         74,504   

Entravision Communications Corp., 8.75%, 2017 (n)

     65,000         65,000   

Gray Television, Inc., 10.5%, 2015

     90,000         86,625   

Inmarsat Finance PLC, 7.375%, 2017 (n)

     330,000         338,250   

Intelsat Jackson Holdings Ltd., 9.5%, 2016

     695,000         741,044   

Lamar Media Corp., 6.625%, 2015

     260,000         260,000   

Lamar Media Corp., “C”, 6.625%, 2015

     165,000         163,350   

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

     150,000         126,000   

Local TV Finance LLC, 10%, 2015 (p)(z)

     207,852         177,367   

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

     179,700         142,337   

 

1


 

MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 8/31/10 - continued

 

Issuer

   Shares/Par      Value ($)  

Bonds – continued

     

Broadcasting – continued

     

Nexstar Broadcasting Group, Inc., 0.5% to 2011, 7% to 2014 (n)(p)

   $ 293,265       $ 269,608   

Nexstar Broadcasting Group, Inc., 7%, 2014

     96,000         94,080   

Salem Communications Corp., 9.625%, 2016

     75,000         78,094   

Sinclair Broadcast Group, Inc., 9.25%, 2017 (n)

     125,000         128,750   

SIRIUS XM Radio, Inc., 8.75%, 2015 (n)

     220,000         226,600   

Univision Communications, Inc., 12%, 2014 (n)

     95,000         102,956   

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

     392,347         333,887   

Young Broadcasting, Inc., 8.75%, 2014 (d)

     120,000         0   
           
      $ 3,536,502   
           

Brokerage & Asset Managers – 1.2%

     

E*TRADE Financial Corp., 7.875%, 2015

   $ 260,000       $ 245,700   

E*TRADE Financial Corp., 12.5%, 2017

     70,000         78,050   

Janus Capital Group, Inc., 6.95%, 2017

     275,000         279,572   

Nuveen Investments, Inc., 10.5%, 2015

     150,000         142,500   
           
      $ 745,822   
           

Building – 2.7%

     

Associated Materials, Inc., 11.25%, 2014

   $ 270,000       $ 273,713   

Building Materials Holding Corp., 6.875%, 2018 (z)

     110,000         106,975   

Building Materials Holding Corp., 7%, 2020 (n)

     115,000         114,425   

CEMEX Finance Europe B.V., 9.625%, 2017 (n)

   EUR 150,000         179,870   

Masco Corp., 7.125%, 2020

   $ 110,000         111,474   

Nortek, Inc., 11%, 2013

     381,688         402,204   

Owens Corning, 9%, 2019

     150,000         178,880   

Ply Gem Industries, Inc., 11.75%, 2013

     115,000         118,450   

Ply Gem Industries, Inc., 13.125%, 2014

     185,000         185,463   
           
      $ 1,671,454   
           

Business Services – 2.7%

     

First Data Corp., 9.875%, 2015

   $ 315,000       $ 239,400   

Interactive Data Corp., 10.25%, 2018 (n)

     175,000         181,563   

Iron Mountain, Inc., 6.625%, 2016

     185,000         185,000   

Iron Mountain, Inc., 8.375%, 2021

     135,000         143,438   

SunGard Data Systems, Inc., 9.125%, 2013

     365,000         372,756   

SunGard Data Systems, Inc., 10.25%, 2015

     377,000         395,850   

Terremark Worldwide, Inc., 12%, 2017

     95,000         107,350   
           
      $ 1,625,357   
           

Cable TV – 4.4%

     

Cablevision Systems Corp., 8.625%, 2017 (n)

   $ 375,000       $ 408,750   

CCH II LLC, 13.5%, 2016

     150,000         177,750   

Charter Communications Holding Co. LLC, 7.875%, 2018 (n)

     65,000         67,275   

Charter Communications Holding Co. LLC, 8.125%, 2020 (n)

     135,000         142,088   

Charter Communications, Inc., 10.875%, 2014 (n)

     260,000         291,200   

CSC Holdings LLC, 8.5%, 2014

     255,000         278,588   

CSC Holdings LLC, 8.5%, 2015

     90,000         97,650   

EchoStar Corp., 7.125%, 2016

     350,000         357,875   

Insight Communications Co., Inc., 9.375%, 2018 (n)

     160,000         168,000   

Mediacom LLC, 9.125%, 2019

     255,000         255,000   

Videotron LTEE, 6.875%, 2014

     110,000         110,550   

Virgin Media Finance PLC, 9.125%, 2016

     100,000         106,875   

Virgin Media Finance PLC, 9.5%, 2016

     200,000         224,000   
           
      $ 2,685,601   
           

Chemicals – 3.8%

     

Ashland, Inc., 9.125%, 2017

   $ 385,000       $ 439,863   

 

2


 

MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 8/31/10 - continued

 

Issuer

   Shares/Par      Value ($)  

Bonds – continued

     

Chemicals – continued

     

Hexion Specialty Chemicals, Inc., 9.75%, 2014

   $ 80,000       $ 78,600   

Hexion Specialty Chemicals, Inc., 8.875%, 2018

     365,000         337,625   

Huntsman International LLC, 6.875%, 2013 (n)

   EUR 200,000         249,648   

Lumena Resources Corp., 12%, 2014 (n)

   $ 152,000         140,220   

Lyondell Chemical Co., 11%, 2018

     220,539         239,560   

Momentive Performance Materials, Inc., 12.5%, 2014

     455,000         503,344   

Momentive Performance Materials, Inc., 11.5%, 2016

     109,000         101,370   

Solutia, Inc., 7.875%, 2020

     235,000         245,575   
           
      $ 2,335,805   
           

Computer Software - Systems – 0.6%

     

DuPont Fabros Technology, Inc., 8.5%, 2017

   $ 350,000       $ 370,125   
           

Conglomerates – 0.3%

     

Amsted Industries, Inc., 8.125%, 2018 (z)

   $ 180,000       $ 185,625   
           

Consumer Products – 1.4%

     

ACCO Brands Corp., 10.625%, 2015

   $ 30,000       $ 33,000   

ACCO Brands Corp., 7.625%, 2015

     80,000         76,400   

Central Garden & Pet Co., 8.25%, 2018

     150,000         151,125   

Easton-Bell Sports, Inc., 9.75%, 2016

     95,000         100,463   

Jarden Corp., 7.5%, 2017

     215,000         219,031   

Libbey Glass, Inc., 10%, 2015 (n)

     145,000         154,063   

Visant Holding Corp., 8.75%, 2013

     125,000         127,500   
           
      $ 861,582   
           

Consumer Services – 2.5%

     

KAR Holdings, Inc., 10%, 2015

   $ 340,000       $ 351,050   

KAR Holdings, Inc., FRN, 4.465%, 2014

     100,000         92,500   

Service Corp. International, 7.375%, 2014

     50,000         54,375   

Service Corp. International, 7%, 2017

     785,000         812,475   

Ticketmaster Entertainment, Inc., 10.75%, 2016

     215,000         228,975   
           
      $ 1,539,375   
           

Containers – 1.6%

     

Graham Packaging Holdings Co., 9.875%, 2014

   $ 400,000       $ 407,000   

Greif, Inc., 6.75%, 2017

     350,000         353,500   

Owens-Illinois, Inc., 7.375%, 2016

     110,000         118,250   

Reynolds Group, 7.75%, 2016 (n)

     105,000         105,788   
           
      $ 984,538   
           

Defense Electronics – 0.9%

     

L-3 Communications Corp., 6.375%, 2015

   $ 310,000       $ 317,363   

ManTech International Corp., 7.25%, 2018

     120,000         122,400   

MOOG, Inc., 7.25%, 2018

     90,000         90,900   
           
      $ 530,663   
           

Electronics – 1.3%

     

Freescale Semiconductor, Inc., 8.875%, 2014

   $ 180,000       $ 166,950   

Freescale Semiconductor, Inc., 10.125%, 2018 (n)

     150,000         154,500   

Freescale Semiconductor, Inc., 9.25%, 2018 (n)

     160,000         160,400   

Jabil Circuit, Inc., 7.75%, 2016

     160,000         172,400   

NXP B.V., 7.875%, 2014

     165,000         165,825   
           
      $ 820,075   
           

Energy - Independent – 7.2%

     

Anadarko Petroleum Corp., 5.95%, 2016

   $ 125,000       $ 123,800   

Anadarko Petroleum Corp., 6.375%, 2017

     30,000         29,685   

Anadarko Petroleum Corp., 8.7%, 2019

     35,000         38,490   

 

3


 

MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 8/31/10 - continued

 

Issuer

   Shares/Par      Value ($)  

Bonds – continued

     

Energy - Independent – continued

     

Berry Petroleum Co., 10.25%, 2014

   $ 150,000       $ 165,375   

Chaparral Energy, Inc., 8.875%, 2017

     195,000         187,200   

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

     280,000         291,200   

Newfield Exploration Co., 6.625%, 2014

     155,000         158,488   

Newfield Exploration Co., 6.625%, 2016

     90,000         93,150   

OPTI Canada, Inc., 9.75%, 2013 (z)

     65,000         64,188   

OPTI Canada, Inc., 8.25%, 2014

     370,000         288,600   

Penn Virginia Corp., 10.375%, 2016

     280,000         304,500   

Petrohawk Energy Corp., 10.5%, 2014

     140,000         156,450   

Pioneer Natural Resources Co., 6.875%, 2018

     175,000         182,867   

Pioneer Natural Resources Co., 7.5%, 2020

     200,000         214,876   

Plains Exploration & Production Co., 7%, 2017

     565,000         555,113   

QEP Resources, Inc., 6.875%, 2021

     110,000         114,675   

Quicksilver Resources, Inc., 8.25%, 2015

     230,000         234,600   

Quicksilver Resources, Inc., 9.125%, 2019

     165,000         176,963   

Range Resources Corp., 8%, 2019

     170,000         181,900   

Range Resources Corp., 6.75%, 2020

     200,000         201,500   

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

     290,000         272,600   

Southwestern Energy Co., 7.5%, 2018

     175,000         197,313   

Williams Cos., Inc., 7.75%, 2031

     159,000         184,775   
           
      $ 4,418,308   
           

Entertainment – 1.6%

     

AMC Entertainment, Inc., 11%, 2016

   $ 325,000       $ 343,688   

AMC Entertainment, Inc., 8.75%, 2019

     250,000         258,125   

Cinemark USA, Inc., 8.625%, 2019

     380,000         398,050   
           
      $ 999,863   
           

Financial Institutions – 5.5%

     

CIT Group, Inc., 7%, 2014

   $ 215,000       $ 209,356   

CIT Group, Inc., 7%, 2017

     695,000         653,517   

CIT Group, Inc., 10.25%, 2017

     585,000         604,744   

Credit Acceptance Corp., 9.125%, 2017 (z)

     135,000         139,894   

GMAC, Inc., 6.75%, 2014

     370,000         367,225   

GMAC, Inc., 8%, 2031

     514,000         506,290   

International Lease Finance Corp., 5.625%, 2013

     315,000         295,706   

International Lease Finance Corp., 8.75%, 2017 (n)

     350,000         353,063   

International Lease Finance Corp., 7.125%, 2018 (z)

     46,000         47,035   

Nationstar Mortgage LLC, 10.875%, 2015 (z)

     215,000         177,375   
           
      $ 3,354,205   
           

Food & Beverages – 3.4%

     

ARAMARK Corp., 8.5%, 2015

   $ 430,000       $ 443,438   

B&G Foods, Inc., 7.625%, 2018

     125,000         128,594   

CEDC Finance Corp. International, Inc., 9.125%, 2016 (n)

     210,000         215,250   

Constellation Brands, Inc., 7.25%, 2016

     180,000         188,550   

Del Monte Foods Co., 6.75%, 2015

     335,000         344,631   

Pinnacle Foods Finance LLC, 9.25%, 2015

     330,000         338,663   

Smithfield Foods, Inc., 7.75%, 2017

     90,000         87,525   

TreeHouse Foods, Inc., 7.75%, 2018

     290,000         306,675   
           
      $ 2,053,326   
           

Forest & Paper Products – 3.8%

     

Boise, Inc., 8%, 2020

   $ 225,000       $ 228,938   

Bowater, Inc., 6.5%, 2013 (d)

     500,000         153,125   

Cascades, Inc., 7.75%, 2017

     205,000         211,150   

 

4


 

MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 8/31/10 - continued

 

Issuer

   Shares/Par      Value ($)  

Bonds – continued

     

Forest & Paper Products – continued

     

Cellu Tissue Holdings, Inc., 11.5%, 2014

   $ 235,000       $ 254,681   

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

     190,000         200,450   

Georgia-Pacific Corp., 8%, 2024

     425,000         467,500   

Georgia-Pacific Corp., 7.25%, 2028

     55,000         55,550   

Graphic Packaging International Corp., 9.5%, 2013

     137,000         139,398   

JSG Funding PLC, 7.75%, 2015

     10,000         10,000   

Millar Western Forest Products Ltd., 7.75%, 2013

     375,000         323,438   

Sappi Papier Holding GmbH, 6.75%, 2012 (z)

     90,000         90,450   

Smurfit Kappa Group PLC, 7.75%, 2019 (n)

   EUR 120,000         155,872   
           
      $ 2,290,552   
           

Gaming & Lodging – 6.8%

     

Ameristar Casinos, Inc., 9.25%, 2014

   $ 85,000       $ 90,100   

Circus & Eldorado Joint Venture, 10.125%, 2012

     300,000         279,750   

FelCor Lodging Trust, Inc., 10%, 2014

     70,000         74,725   

Firekeepers Development Authority, 13.875%, 2015 (n)

     335,000         388,600   

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

     695,000         1,807   

Gaylord Entertainment Co., 6.75%, 2014

     305,000         292,800   

GWR Operating Partnership LLP, 10.875%, 2017 (n)

     220,000         218,350   

Harrah’s Operating Co., Inc., 11.25%, 2017

     255,000         272,850   

Harrah’s Operating Co., Inc., 10%, 2018

     340,000         265,200   

Harrah’s Operating Co., Inc., 10%, 2018

     164,000         127,920   

Host Hotels & Resorts, Inc., 6.75%, 2016

     250,000         253,750   

Host Hotels & Resorts, Inc., 9%, 2017

     340,000         374,000   

MGM Mirage, 10.375%, 2014

     40,000         43,600   

MGM Mirage, 11.125%, 2017

     105,000         117,338   

MGM Mirage, 11.375%, 2018 (n)

     150,000         135,750   

MGM Mirage, 9%, 2020 (n)

     170,000         176,375   

Penn National Gaming, Inc., 8.75%, 2019

     185,000         193,325   

Pinnacle Entertainment, Inc., 7.5%, 2015

     90,000         87,075   

Royal Caribbean Cruises Ltd., 7%, 2013

     65,000         66,381   

Royal Caribbean Cruises Ltd., 11.875%, 2015

     185,000         217,838   

Starwood Hotels & Resorts Worldwide, Inc., 6.75%, 2018

     100,000         105,750   

Station Casinos, Inc., 6%, 2012 (d)

     245,000         637   

Station Casinos, Inc., 6.875%, 2016 (d)

     715,000         86   

Station Casinos, Inc., 6.625%, 2018 (d)

     875,000         2,188   

Wyndham Worldwide Corp., 6%, 2016

     240,000         244,932   

Wynn Las Vegas LLC, 7.75%, 2020 (n)

     110,000         111,100   
           
      $ 4,142,227   
           

Industrial – 1.8%

     

Altra Holdings, Inc., 8.125%, 2016

   $ 115,000       $ 117,300   

Baldor Electric Co., 8.625%, 2017

     465,000         491,738   

Diversey, Inc., 8.25%, 2019

     160,000         165,600   

Great Lakes Dredge & Dock Corp., 7.75%, 2013

     140,000         141,575   

Hillman Cos., Inc., 10.875%, 2018 (n)

     140,000         147,175   

Mueller Water Products, Inc., 8.75%, 2020 (z)

     52,000         52,260   
           
      $ 1,115,648   
           

Insurance – 2.6%

     

American International Group, Inc., 8.175% to 2038, FRN to 2058

   $ 600,000       $ 514,500   

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

     470,000         386,575   

MetLife, Inc., 9.25% to 2038, FRN to 2068 (n)

     600,000         690,000   
           
      $ 1,591,075   
           

 

5


 

MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 8/31/10 - continued

 

Issuer

   Shares/Par      Value ($)  

Bonds – continued

     

Insurance - Property & Casualty – 2.4%

     

Liberty Mutual Group, Inc., 10.75% to 2038, FRN to 2058 (n)

   $ 330,000       $ 367,125   

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

     575,000         547,688   

XL Group PLC, 6.5% to 2017, FRN to 2049

     155,000         116,839   

ZFS Finance USA Trust II, 6.45% to 2016, FRN to 2065 (n)

     500,000         460,000   
           
      $ 1,491,652   
           

Machinery & Tools – 1.1%

     

Case Corp., 7.25%, 2016

   $ 90,000       $ 92,925   

Case New Holland, Inc., 7.875%, 2017 (n)

     315,000         331,538   

Rental Service Corp., 9.5%, 2014

     220,000         224,400   
           
      $ 648,863   
           

Major Banks – 2.4%

     

Bank of America Corp., 8% to 2018, FRN to 2049

   $ 510,000       $ 520,251   

JPMorgan Chase & Co., 7.9% to 2018, FRN to 2049

     595,000         625,773   

Royal Bank of Scotland Group PLC, 6.99% to 2017, FRN to 2049 (n)

     100,000         73,000   

Royal Bank of Scotland Group PLC, 7.648% to 2031, FRN to 2049

     310,000         266,600   
           
      $ 1,485,624   
           

Medical & Health Technology & Services – 9.8%

     

Biomet, Inc., 11.625%, 2017

   $ 475,000       $ 522,500   

Capella Healthcare, Inc., 9.25%, 2017 (n)

     55,000         56,925   

Community Health Systems, Inc., 8.875%, 2015

     435,000         451,313   

Cooper Cos., Inc., 7.125%, 2015

     120,000         120,300   

DaVita, Inc., 7.25%, 2015

     395,000         408,331   

Fresenius Medical Care AG & Co. KGaA, 9%, 2015 (n)

     165,000         184,800   

HCA, Inc., 9.25%, 2016

     1,150,000         1,233,375   

HCA, Inc., 8.5%, 2019

     160,000         175,400   

HealthSouth Corp., 8.125%, 2020

     435,000         439,894   

Psychiatric Solutions, Inc., 7.75%, 2015

     165,000         170,363   

Tenet Healthcare Corp., 9.25%, 2015

     425,000         444,125   

Tenet Healthcare Corp., 8%, 2020 (z)

     90,000         87,300   

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

     165,000         170,363   

U.S. Oncology, Inc., FRN, 6.643%, 2012 (p)

     315,000         282,376   

United Surgical Partners International, Inc., 8.875%, 2017

     95,000         97,375   

United Surgical Partners International, Inc., 9.25%, 2017 (p)

     125,000         128,281   

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

     400,000         402,000   

Vanguard Health Systems, Inc., 8%, 2018

     195,000         191,344   

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

     402,062         416,134   
           
      $ 5,982,499   
           

Metals & Mining – 2.7%

     

Arch Coal, Inc., 7.25%, 2020

   $ 110,000       $ 111,650   

Arch Western Finance LLC, 6.75%, 2013

     85,000         85,425   

Cloud Peak Energy, Inc., 8.25%, 2017 (n)

     165,000         170,569   

Cloud Peak Energy, Inc., 8.5%, 2019 (n)

     175,000         181,781   

CONSOL Energy, Inc., 8%, 2017 (n)

     170,000         179,350   

CONSOL Energy, Inc., 8.25%, 2020 (n)

     110,000         116,738   

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

     190,000         220,163   

Peabody Energy Corp., 7.375%, 2016

     350,000         381,500   

Teck Resources Ltd., 10.25%, 2016

     26,000         31,428   

U.S. Steel Corp., 7.375%, 2020

     170,000         172,125   
           
      $ 1,650,729   
           

Municipals – 0.5%

     

Virginia Tobacco Settlement Financing Corp., “A-1”, 6.706%, 2046

   $ 410,000       $ 278,989   

 

6


 

MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 8/31/10 - continued

 

Issuer

   Shares/Par      Value ($)  

Bonds – continued

     

Natural Gas - Distribution – 1.4%

     

AmeriGas Partners LP, 7.125%, 2016

   $ 295,000       $ 302,744   

Ferrellgas Partners LP, 8.625%, 2020

     180,000         185,850   

Inergy LP, 6.875%, 2014

     335,000         336,675   
           
      $ 825,269   
           

Natural Gas - Pipeline – 3.1%

     

Atlas Pipeline Partners LP, 8.125%, 2015

   $ 55,000       $ 54,175   

Atlas Pipeline Partners LP, 8.75%, 2018

     250,000         246,875   

Colorado Interstate Gas Co., 6.8%, 2015

     91,000         107,573   

Crosstex Energy, Inc., 8.875%, 2018

     220,000         227,150   

El Paso Corp., 6.875%, 2014

     325,000         343,890   

El Paso Corp., 8.25%, 2016

     155,000         168,950   

El Paso Corp., 7%, 2017

     185,000         195,384   

El Paso Corp., 7.75%, 2032

     90,000         90,596   

Enterprise Products Partners LP, FRN, 8.375%, 2066

     109,000         112,270   

Enterprise Products Partners LP, FRN, 7.034%, 2068

     67,000         64,906   

MarkWest Energy Partners LP, 6.875%, 2014

     210,000         211,575   

MarkWest Energy Partners LP, 8.75%, 2018

     40,000         42,800   
           
      $ 1,866,144   
           

Network & Telecom – 5.5%

     

Cincinnati Bell, Inc., 7%, 2015

   $ 395,000       $ 383,150   

Cincinnati Bell, Inc., 8.75%, 2018

     270,000         257,850   

Citizens Communications Co., 7.875%, 2027

     325,000         312,000   

Citizens Communications Co., 9%, 2031

     70,000         71,225   

Frontier Communications Corp., 8.25%, 2017

     65,000         68,738   

Frontier Communications Corp., 8.5%, 2020

     55,000         58,369   

Nordic Telephone Co. Holdings, 8.25%, 2016 (n)

   EUR 240,000         320,107   

Orascom Telecom Finance S.C.A., 7.875%, 2014 (z)

   $ 225,000         213,750   

Qwest Communications International, Inc., 8%, 2015 (n)

     105,000         112,875   

Qwest Communications International, Inc., 7.125%, 2018 (n)

     205,000         213,200   

Qwest Communications International, Inc. “B”, 7.5%, 2014

     250,000         254,688   

Qwest Corp., 7.5%, 2014

     145,000         161,494   

Qwest Corp., 8.375%, 2016

     105,000         122,325   

Windstream Corp., 8.625%, 2016

     715,000         738,238   

Windstream Corp., 8.125%, 2018 (n)

     45,000         45,788   
           
      $ 3,333,797   
           

Oil Services – 1.3%

     

Allis-Chalmers Energy, Inc., 8.5%, 2017

   $ 135,000       $ 135,675   

Basic Energy Services, Inc., 7.125%, 2016

     65,000         58,175   

Edgen Murray Corp., 12.25%, 2015 (n)

     70,000         57,750   

Expro Finance Luxembourg, 8.5%, 2016 (n)

     200,000         187,000   

McJunkin Red Man Holding Corp., 9.5%, 2016 (n)

     210,000         185,325   

Pioneer Drilling Co., 9.875%, 2018 (n)

     165,000         165,000   
           
      $ 788,925   
           

Oils – 0.3%

     

Petroplus Holdings AG, 9.375%, 2019 (n)

   $ 205,000       $ 184,500   
           

Other Banks & Diversified Financials – 2.0%

     

Capital One Financial Corp., 10.25%, 2039

   $ 220,000       $ 237,600   

Citigroup Capital XXI, 8.3% to 2037, FRN to 2057

     325,000         337,188   

Groupe BPCE S.A., 12.5% to 2019, FRN to 2049 (n)

     125,000         139,611   

LBG Capital No. 1 PLC, 7.875%, 2020 (n)

     210,000         195,300   

Santander UK PLC, 8.963% to 2030, FRN to 2049

     295,000         321,555   
           
      $ 1,231,254   
           

 

7


 

MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 8/31/10 - continued

 

Issuer

   Shares/Par      Value ($)  

Bonds – continued

     

Printing & Publishing – 2.0%

     

American Media Operations, Inc., 9%, 2013 (p)(z)

   $ 26,886       $ 26,584   

American Media Operations, Inc., 14%, 2013 (p)(z)

     294,705         184,477   

McClatchy Co., 11.5%, 2017

     180,000         185,850   

Morris Publishing Group LLC, 10%, 2014

     101,534         96,584   

Nielsen Finance LLC, 10%, 2014

     340,000         357,000   

Nielsen Finance LLC, 11.5%, 2016

     150,000         168,188   

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

     175,000         173,469   
           
      $ 1,192,152   
           

Railroad & Shipping – 0.5%

     

Kansas City Southern Railway, 8%, 2015

   $ 310,000       $ 330,925   
           

Real Estate – 0.8%

     

CB Richard Ellis Group, Inc., 11.625%, 2017

   $ 180,000       $ 204,300   

Developers Diversified Realty Corp., REIT, 7.875%, 2020

     125,000         127,179   

Entertainment Properties Trust, REIT, 7.75%, 2020 (n)

     150,000         147,750   
           
      $ 479,229   
           

Retailers – 4.5%

     

Couche-Tard, Inc., 7.5%, 2013

   $ 70,000       $ 71,138   

Dollar General Corp., 11.875%, 2017 (p)

     83,000         95,658   

Express Parent LLC, 8.75%, 2018 (n)

     110,000         113,850   

General Nutrition Centers, Inc., FRN, 5.75%, 2014 (p)

     205,000         196,031   

Limited Brands, Inc., 6.9%, 2017

     125,000         129,375   

Limited Brands, Inc., 6.95%, 2033

     175,000         157,938   

Macy’s, Inc., 5.75%, 2014

     240,000         246,600   

Macy’s, Inc., 5.9%, 2016

     215,000         221,450   

Neiman Marcus Group, Inc., 10.375%, 2015

     300,000         305,250   

QVC, Inc., 7.375%, 2020 (n)

     225,000         228,375   

Sally Beauty Holdings, Inc., 10.5%, 2016

     275,000         298,375   

Toys “R” Us, Inc., 10.75%, 2017

     280,000         315,700   

Toys “R” Us, Inc., 8.5%, 2017 (n)

     330,000         343,200   
           
      $ 2,722,940   
           

Specialty Chemicals – 0.2%

     

INVISTA, 9.25%, 2012 (n)

   $ 137,000       $ 138,541   
           

Specialty Stores – 0.6%

     

Michaels Stores, Inc., 11.375%, 2016

   $ 105,000       $ 112,613   

Payless ShoeSource, Inc., 8.25%, 2013

     262,000         265,930   
           
      $ 378,543   
           

Telecommunications - Wireless – 5.9%

     

Clearwire Corp., 12%, 2015 (n)

   $ 425,000       $ 425,000   

Cricket Communications, Inc., 7.75%, 2016

     135,000         139,388   

Crown Castle International Corp., 9%, 2015

     215,000         233,275   

Crown Castle International Corp., 7.75%, 2017 (n)

     105,000         114,450   

Crown Castle International Corp., 7.125%, 2019

     210,000         217,875   

Digicel Group Ltd., 8.25%, 2017 (n)

     235,000         244,106   

Digicel Group Ltd., 10.5%, 2018 (n)

     100,000         107,250   

MetroPCS Wireless, Inc., 9.25%, 2014

     90,000         93,600   

Nextel Communications, Inc., 6.875%, 2013

     135,000         134,663   

NII Holdings, Inc., 10%, 2016

     160,000         179,400   

NII Holdings, Inc., 8.875%, 2019

     100,000         108,000   

SBA Communications Corp., 8%, 2016

     80,000         85,300   

SBA Communications Corp., 8.25%, 2019

     125,000         135,625   

Sprint Capital Corp., 6.875%, 2028

     90,000         75,150   

Sprint Nextel Corp., 8.375%, 2017

     345,000         356,213   

 

8


 

MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 8/31/10 - continued

 

Issuer

   Shares/Par      Value ($)  

Bonds – continued

     

Telecommunications - Wireless – continued

     

Sprint Nextel Corp., 8.75%, 2032

   $ 400,000       $ 385,500   

Wind Acquisition Finance S.A., 12%, 2015 (n)

     515,000         543,325   
           
      $ 3,578,120   
           

Telephone Services – 0.6%

     

Embarq Corp., 7.995%, 2036

   $ 160,000       $ 165,498   

Frontier Communications Corp., 8.125%, 2018

     195,000         206,700   
           
      $ 372,198   
           

Tobacco – 0.9%

     

Alliance One International, Inc., 10%, 2016

   $ 115,000       $ 120,463   

Reynolds American, Inc., 7.625%, 2016

     345,000         404,806   
           
      $ 525,269   
           

Transportation - Services – 1.7%

     

American Petroleum Tankers LLC, 10.25%, 2015 (z)

   $ 95,000       $ 96,188   

Commercial Barge Line Co., 12.5%, 2017

     285,000         307,800   

Hertz Corp., 8.875%, 2014

     595,000         611,363   
           
      $ 1,015,351   
           

Utilities - Electric Power – 5.3%

     

AES Corp., 8%, 2017

   $ 505,000       $ 531,513   

Calpine Corp., 8%, 2016 (n)

     415,000         435,750   

Calpine Corp., 7.875%, 2020 (n)

     95,000         95,238   

Dynegy Holdings, Inc., 7.125%, 2018

     540,000         345,600   

Dynegy Holdings, Inc., 7.75%, 2019

     90,000         58,050   

Edison Mission Energy, 7%, 2017

     410,000         279,825   

Energy Future Holdings Corp., 10%, 2020 (n)

     270,000         260,011   

Mirant North America LLC, 7.375%, 2013

     340,000         347,650   

NRG Energy, Inc., 7.375%, 2016

     350,000         352,625   

NRG Energy, Inc., 7.375%, 2017

     245,000         246,838   

Texas Competitive Electric Holdings LLC, 10.25%, 2015

     415,000         264,563   
           
      $ 3,217,663   
           

Total Bonds

      $ 77,609,077   
           

Floating Rate Loans (g)(r) – 2.7%

     

Aerospace – 0.1%

     

Hawker Beechcraft Acquisition Co. LLC, Term Loan, 10.5%, 2014

   $ 107,546       $ 106,404   
           

Automotive – 1.1%

     

Ford Motor Co., Term Loan B, 3.03%, 2013

   $ 682,786       $ 656,798   
           

Broadcasting – 0.3%

     

Gray Television, Inc., Term Loan B, 3.8%, 2014

   $ 67,875       $ 64,045   

Local TV Finance LLC, Term Loan B, 2.27%, 2013

     15,470         13,755   

New Young Broadcasting Holding Co., Inc., Term Loan, 8%, 2015

     92,724         90,870   
           
      $ 168,670   
           

Consumer Services – 0.1%

     

Realogy Corp., Letter of Credit, 3.35%, 2013

   $ 14,244       $ 12,291   

Realogy Corp., Term Loan, 3.29%, 2013

     83,094         71,698   
           
      $ 83,989   
           

Financial Institutions – 0.1%

     

American General Financial Corp., Term Loan B, 7.25%, 2015

   $ 32,250       $ 31,867   
           

Gaming & Lodging – 0.2%

     

Green Valley Ranch Gaming LLC, Second Lien Term Loan, 3.5%, 2014 (d)

   $ 525,000       $ 13,125   

MGM Mirage, Term Loan, 7%, 2014

     128,389         109,148   
           
      $ 122,273   
           

 

9


 

MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 8/31/10 - continued

 

Issuer

                 Shares/Par      Value ($)  

Floating Rate Loans (g)(r) – continued

           

Printing & Publishing – 0.2%

           

Tribune Co., Incremental Term Loan B, 5.25%, 2014 (d)

         $ 258,166       $ 136,263   
                 

Utilities - Electric Power – 0.6%

           

Texas Competitive Electric Holdings Co. LLC, Term Loan B-2, 3.94%, 2014 (o)

         $ 281,213       $ 213,054   

Texas Competitive Electric Holdings Co. LLC, Term Loan B-3, 3.79%, 2014

           215,906         162,739   
                 
            $ 375,793   
                 

Total Floating Rate Loans

            $ 1,682,057   
                 

Common Stocks – 0.8%

           

Automotive – 0.1%

           

Accuride Corp. (a)

           35,636       $ 39,200   
                 

Broadcasting – 0.1%

           

Dex One Corp. (a)

           2,252       $ 19,187   

New Young Broadcasting Holding Co., Inc. (a)

           42         83,708   

Supermedia, Inc. (a)

           250         2,260   
                 
            $ 105,155   
                 

Chemicals – 0.2%

           

LyondellBasell Industries N.V., “A” (a)

           1,536       $ 31,488   

LyondellBasell Industries N.V., “B” (a)

           6,110         125,194   
                 
            $ 156,682   
                 

Construction – 0.2%

           

Nortek, Inc. (a)

           2,805       $ 116,408   
                 

Gaming & Lodging – 0.1%

           

Ameristar Casinos, Inc.

           2,100       $ 34,461   
                 

Printing & Publishing – 0.1%

           

American Media, Inc. (a)

           4,713       $ 28,841   

Quad/Graphics, Inc. (a)

           357         15,062   
                 
            $ 43,903   
                 

Special Products & Services – 0.0%

           

Mark IV Industries LLC, Common Units, “A” (a)

           207       $ 8,073   
                 

Trucking – 0.0%

           

Quality Distribution, Inc. (a)

           2,687       $ 12,548   
                 

Total Common Stocks

            $ 516,430   
                 

Convertible Bonds – 0.2%

           

Automotive – 0.2%

           

Accuride Corp., 7.5%, 2020

         $ 38,818       $ 100,279   
                 
     Strike Price      First Exercise         

Warrants – 0.4%

           

Broadcasting – 0.4%

           

New Young Broadcasting Holding Co., Inc. (1 share for 1 warrant) (a)

   $ 0.01         7/14/10         113       $ 225,214   
                 

Rights – 0.0%

           

Forest & Paper Products – 0.0%

           

Abitibi-Consolidated, Inc. (1 share for 1 right) (a)

   $ 1.00         8/9/10         17,118       $ 0   

Bowater, Inc. (1 share for 1 right) (a)

   $ 1.00         8/9/10         41,353         0   
                 

Total Rights

            $ 0   
                 

Issuer/Expiration Date/Strike Price

                 Number of
Contracts
     Value ($)  

Call Options Purchased – 0.0%

           

S&P 500 Index - December 2010 @ $ 1,200

           11       $ 5,940   
                 

 

10


 

MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 8/31/10 - continued

 

Issuer

   Shares/Par      Value ($)  

Money Market Funds (v) – 2.1%

     

MFS Institutional Money Market Portfolio, 0.24%, at Net Asset Value

     1,273,695       $ 1,273,695   
           

Total Investments

      $ 81,412,692   
           

Other Assets, Less Liabilities (33.5)%

        (20,432,272
           

Net Assets – 100.0%

      $ 60,980,420   
           

 

(a) Non-income producing security.
(d) Non-income producing security - in default.
(g) The rate shown represents a weighted average coupon rate on settled positions at period end, unless otherwise indicated.
(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 $15,795,624, representing 25.9% of net assets.
(o) All or a portion of this position has not settled. Upon settlement date, interest rates for unsettled amounts will be determined. The rate shown represents the weighted average coupon rate for settled amounts.
(p) Payment-in-kind security.
(r) Remaining maturities of floating rate loans may be less than stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty. These loans may be subject to restrictions on resale. Floating rate loans generally have rates of interest which are determined periodically by reference to a base lending rate plus a premium.
(v) Underlying fund that is available only to investment companies managed by MFS. The rate quoted is the annualized seven-day yield of the fund at period end.
(z) Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities:

 

Restricted Securities

   Acquisition
Date
     Cost      Current
Market  Value
 

American Media Operations, Inc., 9%, 2013

     1/29/09 - 4/15/10       $ 19,820       $ 26,584   

American Media Operations, Inc., 14%, 2013

     1/29/09 - 5/01/10         192,797         184,477   

American Petroleum Tankers LLC, 10.25%, 2015

     5/06/10         92,464         96,188   

Amsted Industries, Inc., 8.125%, 2018

     7/12/10 - 8/03/10         185,378         185,625   

Banc of America Commercial Mortgage, Inc., FRN, 6.415%, 2051

     6/19/08         327,563         130,382   

Bonten Media Acquisition Co., 9%, 2015

     6/26/09 - 5/15/10         47,311         74,504   

Building Materials Holding Corp., 6.875%, 2018

     8/09/10         108,351         106,975   

Credit Acceptance Corp., 9.125%, 2017

     1/25/10         131,824         139,894   

International Lease Finance Corp., 7.125%, 2018

     8/11/10 - 8/12/10         46,099         47,035   

LBI Media, Inc., 8.5%, 2017

     7/18/07         148,081         126,000   

Local TV Finance LLC, 10%, 2015

     5/02/07         210,823         177,367   

Mueller Water Products, Inc., 8.75%, 2020

     8/19/10         51,153         52,260   

Nationstar Mortgage LLC, 10.875%, 2015

     3/23/10 - 8/06/10         199,187         177,375   

OPTI Canada, Inc., 9.75%, 2013

     8/11/10         62,747         64,188   

Orascom Telecom Finance S.C.A., 7.875%, 2014

     2/01/07         225,000         213,750   

Sappi Papier Holding GmbH, 6.75%, 2012

     7/29/10 - 8/02/10         90,601         90,450   

Tenet Healthcare Corp., 8%, 2020

     8/03/10         90,000         87,300   

USI Holdings Corp., 9.75%, 2015

     4/26/07 - 9/13/07         556,074         547,688   
              

Total Restricted Securities

         $ 2,528,042   

% of Net Assets

           4.1

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

 

FRN    Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end.
PLC    Public Limited Company
REIT    Real Estate Investment Trust

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

EUR   Euro

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

 

11


 

MFS Intermediate High Income Fund

Supplemental Information (Unaudited) 8/31/10

(1) Investment Valuations

Debt instruments and floating rate loans (other than short-term instruments), including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Equity securities, including restricted equity securities, are generally valued at the last sale or official closing price as provided by a third-party pricing service on the market or exchange on which they are primarily traded. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation as provided by a third-party pricing service on the market or exchange on which such securities are primarily traded. Equity securities held short, for which there were no sales reported for that day, are generally valued at the last quoted daily ask quotation as provided by a third-party pricing service on the market or exchange on which such securities are primarily traded. Short-term instruments with a maturity at issuance of 60 days or less generally are valued at amortized cost, which approximates market value. Exchange-traded options are generally valued at the last sale or official closing price as provided by a third-party pricing service on the exchange on which such options are primarily traded. Exchange-traded options for which there were no sales reported that day are generally valued at the last daily bid quotation as provided by a third-party pricing service on the exchange on which such options are primarily traded. 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. Forward foreign currency contracts are generally valued at the mean of bid and asked prices for the time period interpolated from rates provided by a third-party pricing service for proximate time periods. Open-end investment companies are generally valued at net asset value per share. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. Values obtained from third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. The values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and asked prices for rates provided by a third-party pricing service.

The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under the fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.

Various inputs are used in determining the value of the fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments not reflected in total investments, such as futures, forwards, swap contracts, and written options.

 

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MFS Intermediate High Income Fund

Supplemental Information (Unaudited) 8/31/10 - continued

(1) Investment Valuations - continued

The following is a summary of the levels used as of August 31, 2010 in valuing the fund’s assets or liabilities:

 

Investments at Value

   Level 1      Level 2     Level 3      Total  

Equity Securities

   $ 285,340       $ 124,481      $ 337,763       $ 747,584   

Municipal Bonds

     —           278,989        —           278,989   

Corporate Bonds

     —           68,126,629        —           68,126,629   

Commerical Mortgage-Backed Securities

     —           1,047,032        —           1,047,032   

Foreign Bonds

     —           8,256,706        —           8,256,706   

Floating Rate Loans

     —           1,682,057        —           1,682,057   

Mutual Funds

     1,273,695         —          —           1,273,695   
                                  

Total Investments

   $ 1,559,035       $ 79,515,894      $ 337,763       $ 81,412,692   
                                  

Other Financial Instruments

                          

Forward Currency Contracts

     —         $ (50,821     —         $ (50,821

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

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 11/30/09

   $ 6,315   

Accrued discounts/premiums

     —     

Realized gain (loss)

     —     

Change in unrealized appreciation (depreciation)

     22,526   

Net purchases (sales)

     —     

Transfers in and/or out of Level 3

     308,922   
        

Balance as of 8/31/10

   $ 337,763   
        

The net change in unrealized appreciation (depreciation) from investments still held as Level 3 at August 31, 2010 is $22,526.

(2) Portfolio Securities

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

 

Aggregate cost

   $ 83,373,449   
        

Gross unrealized appreciation

   $ 4,443,362   

Gross unrealized depreciation

     (6,404,119
        

Net unrealized appreciation (depreciation)

   $ (1,960,757
        

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

(3) Derivative Contracts at 8/31/10

Forward Foreign Currency Exchange Contracts at 8/31/10

 

Type

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

Liability Derivatives

                    

SELL

     EUR         UBS  AG         814,303         9/15/10       $ 981,088       $ 1,031,909       $ (50,821
                          

At August 31, 2010, the fund had sufficient cash and/or other liquid securities to cover any commitments under these derivative contracts.

 

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MFS Intermediate High Income Fund

Supplemental Information (Unaudited) 8/31/10 - continued

(4) Transactions in Underlying Funds-Affiliated Issuers

An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the fund assumes the following to be affiliated issuers:

 

Underlying Funds

   Beginning
Shares/Par
Amount
     Acquisitions
Shares/Par
Amount
     Dispositions
Shares/Par
Amount
    Ending
Shares/Par
Amount
 

MFS Institutional Money Market Portfolio

     1,330,053         18,594,336         (18,650,694     1,273,695   

Underlying Funds

   Realized
Gain

(Loss)
     Capital Gain
Distributions
     Dividend
Income
    Ending
Value
 

MFS Institutional Money Market Portfolio

   $ —         $ —         $ 2,715      $ 1,273,695   

 

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ITEM 2. CONTROLS AND PROCEDURES.

 

(a) Based upon their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as conducted within 90 days of the filing date of this Form N-Q, the registrant’s principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

 

(b) There were no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 3. EXHIBITS.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto.


 

Notice

A copy of the 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)*    MARIA F. DWYER
  Maria F. Dwyer, President

Date: October 18, 2010

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)*    MARIA F. DWYER
  Maria F. Dwyer, President (Principal Executive Officer)

Date: October 18, 2010

 

By (Signature and Title)*    JOHN M. CORCORAN
  John M. Corcoran, Treasurer (Principal Financial Officer and Accounting Officer)

Date: October 18, 2010

 

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