0001193125-11-107753.txt : 20110425 0001193125-11-107753.hdr.sgml : 20110425 20110425162830 ACCESSION NUMBER: 0001193125-11-107753 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20110228 FILED AS OF DATE: 20110425 DATE AS OF CHANGE: 20110425 EFFECTIVENESS DATE: 20110425 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MFS INTERMEDIATE HIGH INCOME FUND CENTRAL INDEX KEY: 0000833021 IRS NUMBER: 046593681 STATE OF INCORPORATION: MA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-05567 FILM NUMBER: 11777697 BUSINESS ADDRESS: STREET 1: 500 BOYLSTON ST STREET 2: 20TH FL LEGAL DEPT. CITY: BOSTON STATE: MA ZIP: 02116 BUSINESS PHONE: 6179545000 MAIL ADDRESS: STREET 1: 500 BOYLSTON ST STREET 2: 20TH FL LEGAL DEPT. CITY: BOSTON STATE: MA ZIP: 02116 FORMER COMPANY: FORMER CONFORMED NAME: COLONIAL INTERMEDIATE HIGH INCOME FUND DATE OF NAME CHANGE: 19920703 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 811-05567

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: February 28, 2011


ITEM 1. SCHEDULE OF INVESTMENTS.


LOGO


MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 2/28/11

 

Issuer

   Shares/Par      Value ($)  

Bonds – 124.4%

     

Aerospace – 2.1%

     

Alliant Techsystems, Inc., 6.875%, 2020

   $ 115,000       $ 118,881   

BE Aerospace, Inc., 8.5%, 2018

     315,000         348,075   

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

     405,000         435,375   

Hawker Beechcraft Acquisition Co. LLC, 8.5%, 2015

     406,000         325,815   

Oshkosh Corp., 8.25%, 2017

     110,000         122,100   
           
      $ 1,350,246   
           

Apparel Manufacturers – 1.2%

     

Hanesbrands, Inc., 8%, 2016

   $ 245,000       $ 265,213   

Hanesbrands, Inc., 6.375%, 2020

     110,000         106,095   

Hanesbrands, Inc., FRN, 3.831%, 2014

     220,000         220,000   

Phillips-Van Heusen Corp., 7.375%, 2020

     185,000         197,025   
           
      $ 788,333   
           

Asset-Backed & Securitized – 3.1%

     

Banc of America Commercial Mortgage, Inc., FRN, 6.248%, 2051 (z)

   $ 450,000       $ 241,357   

Citigroup Commercial Mortgage Trust, FRN, 5.698%, 2049

     275,000         142,047   

G-Force LLC, CDO, “A2”, 4.83%, 2036 (z)

     128,653         127,688   

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.744%, 2049

     250,617         170,270   

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.744%, 2049

     404,598         243,711   

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.744%, 2049

     1,169,622         563,928   

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 6.06%, 2051

     155,000         118,752   

Merrill Lynch Mortgage Trust, “B”, FRN, 5.826%, 2050

     155,000         95,419   

Merrill Lynch/Countrywide Commercial Mortgage Trust, FRN, 5.743%, 2050

     125,000         116,985   

Wachovia Bank Commercial Mortgage Trust, FRN, 5.686%, 2047

     250,000         128,860   

Wachovia Bank Commercial Mortgage Trust, FRN, 5.746%, 2047

     175,000         73,527   
           
      $ 2,022,544   
           

Automotive – 3.8%

     

Accuride Corp., 9.5%, 2018

   $ 225,000       $ 250,875   

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

     315,000         342,561   

Ford Motor Credit Co. LLC, 8%, 2014

     125,000         139,802   

Ford Motor Credit Co. LLC, 12%, 2015

     1,110,000         1,401,788   

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

     372,000         118,110   

Goodyear Tire & Rubber Co., 10.5%, 2016

     165,000         188,100   

UCI International, Inc., 8.625%, 2019 (z)

     60,000         63,900   
           
      $ 2,505,136   
           

Basic Industry – 0.4%

     

Trimas Corp., 9.75%, 2017

   $ 215,000       $ 238,650   
           

Broadcasting – 6.0%

     

Allbritton Communications Co., 8%, 2018

   $ 255,000       $ 267,111   

Citadel Broadcasting Corp., 7.75%, 2018 (z)

     40,000         42,900   

Entravision Communications Corp., 8.75%, 2017

     65,000         70,200   

Gray Television, Inc., 10.5%, 2015

     50,000         53,125   

Inmarsat Finance PLC, 7.375%, 2017 (n)

     330,000         354,750   

Intelsat Bermuda Ltd., 11.25%, 2017

     165,000         182,531   

Intelsat Jackson Holdings Ltd., 9.5%, 2016

     695,000         734,963   

Lamar Media Corp., 6.625%, 2015

     260,000         266,500   

Lamar Media Corp., “C”, 6.625%, 2015

     165,000         168,713   

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

     150,000         125,438   

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

     268,809         260,745   

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

     142,054         134,359   

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

     293,998         285,178   

Nexstar Broadcasting, Inc., 7%, 2014

     96,000         93,600   

Salem Communications Corp., 9.625%, 2016

     38,000         41,705   

 

1


MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 2/28/11 - continued

 

Issuer

   Shares/Par      Value ($)  

Bonds – continued

     

Broadcasting – continued

     

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

   $ 125,000       $ 141,250   

Sinclair Broadcast Group, Inc., 8.375%, 2018 (n)

     40,000         42,300   

SIRIUS XM Radio, Inc., 13%, 2013 (z)

     110,000         131,175   

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

     220,000         243,925   

SIRIUS XM Radio, Inc., 7.625%, 2018 (n)

     125,000         132,500   

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

     41,000         44,690   

Univision Communications, Inc., 7.875%, 2020 (n)

     90,000         96,525   

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

     120,000         0   
           
      $ 3,914,183   
           

Brokerage & Asset Managers – 1.2%

     

E*TRADE Financial Corp., 7.875%, 2015

   $ 260,000       $ 261,300   

E*TRADE Financial Corp., 12.5%, 2017

     160,000         189,600   

Janus Capital Group, Inc., 6.95%, 2017

     275,000         301,318   
           
      $ 752,218   
           

Building – 2.3%

     

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

   $ 165,000       $ 169,125   

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

     115,000         121,181   

CEMEX S.A., 9.25%, 2020

     375,000         386,250   

Nortek, Inc., 11%, 2013

     166,688         177,523   

Nortek, Inc., 10%, 2018 (n)

     120,000         128,100   

Owens Corning, 9%, 2019

     220,000         260,343   

Ply Gem Industries, Inc., 13.125%, 2014

     185,000         203,038   

Ply Gem Industries, Inc., 8.25%, 2018 (z)

     80,000         81,900   
           
      $ 1,527,460   
           

Business Services – 2.4%

     

First Data Corp., 9.875%, 2015

   $ 205,000       $ 207,050   

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

     375,000         420,000   

Iron Mountain, Inc., 6.625%, 2016

     185,000         185,925   

Iron Mountain, Inc., 8.375%, 2021

     135,000         149,344   

SunGard Data Systems, Inc., 10.25%, 2015

     377,000         397,264   

SunGard Data Systems, Inc., 7.375%, 2018 (n)

     100,000         103,250   

SunGard Data Systems, Inc., 7.625%, 2020 (n)

     105,000         108,413   
           
      $ 1,571,246   
           

Cable TV – 5.0%

     

Bresnan Broadband Holdings LLC, 8%, 2018 (z)

   $ 60,000       $ 63,000   

Cablevision Systems Corp., 8.625%, 2017

     375,000         420,000   

CCH II LLC, 13.5%, 2016

     285,000         345,206   

CCO Holdings LLC, 7.875%, 2018

     355,000         378,961   

CCO Holdings LLC, 8.125%, 2020

     135,000         145,631   

Cequel Communications Holdings, 8.625%, 2017 (z)

     80,000         84,600   

Charter Communications Operating LLC, 10.875%, 2014 (n)

     120,000         134,850   

CSC Holdings LLC, 8.5%, 2014

     255,000         285,600   

CSC Holdings LLC, 8.5%, 2015

     90,000         98,550   

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

     200,000         220,500   

Mediacom LLC, 9.125%, 2019

     255,000         270,938   

ONO Finance ll PLC, 10.875%, 2019 (z)

     150,000         161,250   

UPCB Finance III Ltd., 6.625%, 2020 (z)

     204,000         203,235   

Videotron LTEE, 6.875%, 2014

     110,000         111,511   

Virgin Media Finance PLC, 9.125%, 2016

     100,000         106,750   

Virgin Media Finance PLC, 9.5%, 2016

     200,000         230,750   
           
      $ 3,261,332   
           

 

2


MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 2/28/11 - continued

 

Issuer

   Shares/Par      Value ($)  

Bonds – continued

     

Chemicals – 5.7%

     

Ashland, Inc., 9.125%, 2017

   $ 300,000       $ 348,935   

Celanese U.S. Holdings LLC, 6.625%, 2018 (n)

     135,000         141,075   

Hexion U.S. Finance Corp/Hexion Nova Scotia Finance, 8.875%, 2018

     365,000         391,919   

Hexion U.S. Finance Corp/Hexion Nova Scotia Finance, 9%, 2020 (n)

     60,000         63,825   

Huntsman International LLC, 6.875%, 2013 (n)

   EUR  200,000         282,200   

Huntsman International LLC, 8.625%, 2021 (n)

   $ 285,000         316,350   

Lyondell Chemical Co., 8%, 2017 (n)

     100,000         112,563   

Lyondell Chemical Co., 11%, 2018

     775,539         889,931   

Momentive Performance Materials, Inc., 12.5%, 2014

     455,000         507,894   

Momentive Performance Materials, Inc., 11.5%, 2016

     239,000         259,315   

Momentive Performance Materials, Inc., 9%, 2021 (n)

     125,000         132,969   

Polypore International, Inc., 7.5%, 2017 (z)

     55,000         56,925   

Solutia, Inc., 7.875%, 2020

     185,000         203,500   
           
      $ 3,707,401   
           

Computer Software – 0.2%

     

Syniverse Holdings, Inc., 9.125%, 2019 (z)

   $ 135,000       $ 145,800   
           

Computer Software - Systems – 0.6%

     

DuPont Fabros Technology, Inc., REIT, 8.5%, 2017

   $ 350,000       $ 385,875   
           

Conglomerates – 0.6%

     

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

   $ 180,000       $ 193,500   

Pinafore LLC, 9%, 2018 (n)

     185,000         205,813   
           
      $ 399,313   
           

Consumer Products – 1.8%

     

ACCO Brands Corp., 10.625%, 2015

   $ 30,000       $ 33,900   

ACCO Brands Corp., 7.625%, 2015

     80,000         81,500   

Central Garden & Pet Co., 8.25%, 2018

     150,000         157,686   

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

     145,000         163,125   

Elizabeth Arden, Inc., 7.375%, 2021 (z)

     120,000         126,000   

Jarden Corp., 7.5%, 2017

     180,000         191,475   

Libbey Glass, Inc., 10%, 2015

     131,000         143,118   

NBTY, Inc., 9%, 2018 (n)

     30,000         32,550   

Visant Corp., 10%, 2017

     215,000         232,736   
           
      $ 1,162,090   
           

Consumer Services – 2.2%

     

KAR Holdings, Inc., 10%, 2015

   $ 121,000       $ 128,260   

KAR Holdings, Inc., FRN, 4.304%, 2014

     100,000         98,750   

Realogy Corp., 10.5%, 2014

     85,000         88,400   

Service Corp. International, 6.75%, 2015

     25,000         26,438   

Service Corp. International, 7%, 2017

     785,000         836,025   

Ticketmaster Entertainment, Inc., 10.75%, 2016

     215,000         235,963   
           
      $ 1,413,836   
           

Containers – 2.3%

     

Graham Packaging Co. LP/GPC Capital Corp., 9.875%, 2014

   $ 400,000       $ 414,000   

Graham Packaging Co. LP/GPC Capital Corp., 8.25%, 2018

     40,000         43,100   

Greif, Inc., 6.75%, 2017

     350,000         371,000   

Owens-Illinois, Inc., 7.375%, 2016

     110,000         119,900   

Packaging Dynamics Corp., 8.75%, 2016 (z)

     65,000         66,544   

Reynolds Group, 7.75%, 2016 (n)

     105,000         111,825   

Reynolds Group, 7.125%, 2019 (n)

     130,000         133,250   

Reynolds Group, 9%, 2019 (z)

     100,000         104,250   

Reynolds Group, 8.25%, 2021 (z)

     105,000         105,263   
           
      $ 1,469,132   
           

 

3


MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 2/28/11 - continued

 

Issuer

   Shares/Par      Value ($)  

Bonds – continued

     

Defense Electronics – 0.3%

     

ManTech International Corp., 7.25%, 2018

   $ 120,000       $ 125,400   

MOOG, Inc., 7.25%, 2018

     90,000         94,728   
           
      $ 220,128   
           

Electronics – 1.2%

     

CPI International Acquisition, Inc., 8%, 2018 (z)

   $ 70,000       $ 70,525   

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

     150,000         171,750   

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

     160,000         178,400   

Jabil Circuit, Inc., 7.75%, 2016

     160,000         181,200   

NXP B.V., 7.875%, 2014

     165,000         172,219   
           
      $ 774,094   
           

Energy - Independent – 7.9%

     

Berry Petroleum Co., 10.25%, 2014

   $ 150,000       $ 174,000   

Bill Barrett Corp., 9.875%, 2016

     85,000         95,200   

Carrizo Oil & Gas, Inc., 8.625%, 2018 (n)

     205,000         217,812   

Chesapeake Energy Corp., 6.875%, 2020

     135,000         143,775   

Comstock Resources, Inc., 7.75%, 2019

     95,000         95,000   

Concho Resources, Inc., 8.625%, 2017

     45,000         49,613   

Denbury Resources, Inc., 8.25%, 2020

     170,000         189,125   

Energy XXI Gulf Coast, Inc., 9.25%, 2017 (n)

     205,000         220,375   

EXCO Resources, Inc., 7.5%, 2018

     125,000         124,063   

Harvest Operations Corp., 6.875%, 2017 (n)

     180,000         187,200   

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

     280,000         294,000   

Linn Energy LLC, 8.625%, 2020 (n)

     20,000         22,300   

Linn Energy LLC, 7.75%, 2021 (n)

     174,000         184,875   

Newfield Exploration Co., 6.625%, 2014

     155,000         158,488   

Newfield Exploration Co., 6.625%, 2016

     90,000         92,925   

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

     135,000         132,975   

OPTI Canada, Inc., 8.25%, 2014

     470,000         256,150   

Penn Virginia Corp., 10.375%, 2016

     285,000         319,913   

Pioneer Natural Resources Co., 6.875%, 2018

     175,000         189,994   

Pioneer Natural Resources Co., 7.5%, 2020

     200,000         224,559   

Plains Exploration & Production Co., 7%, 2017

     565,000         589,013   

QEP Resources, Inc., 6.875%, 2021

     185,000         193,788   

Quicksilver Resources, Inc., 8.25%, 2015

     230,000         237,475   

Quicksilver Resources, Inc., 9.125%, 2019

     165,000         174,900   

Range Resources Corp., 8%, 2019

     115,000         126,644   

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

     290,000         303,775   

Williams Cos., Inc., 7.75%, 2031

     159,000         189,273   
           
      $ 5,187,210   
           

Entertainment – 1.4%

     

AMC Entertainment, Inc., 8.75%, 2019

   $ 250,000       $ 268,436   

AMC Entertainment, Inc., 9.75%, 2020 (z)

     125,000         134,061   

Cinemark USA, Inc., 8.625%, 2019

     380,000         414,200   

NAI Entertainment Holdings LLC, 8.25%, 2017 (z)

     90,000         96,750   
           
      $ 913,447   
           

Financial Institutions – 6.3%

     

American General Finance Corp., 5.375%, 2012

   $ 85,000       $ 83,619   

American General Finance Corp., 6.9%, 2017

     205,000         183,986   

CIT Group, Inc., 7%, 2014

     215,000         219,166   

CIT Group, Inc., 7%, 2016

     420,000         423,675   

CIT Group, Inc., 7%, 2017

     1,225,000         1,234,185   

Credit Acceptance Corp., 9.125%, 2017

     135,000         145,463   

 

4


MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 2/28/11 - continued

 

Issuer

   Shares/Par      Value ($)  

Bonds – continued

     

Financial Institutions – continued

     

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

   $ 55,000       $ 58,300   

General Electric Capital Corp., 6.375% to 2017, FRN to 2067

     194,000         198,608   

GMAC, Inc., 8%, 2031

     225,000         257,625   

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

     300,000         342,750   

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

     246,000         268,448   

International Lease Finance Corp., 8.25%, 2020

     60,000         66,750   

Nationstar Mortgage LLC, 10.875%, 2015 (z)

     250,000         257,500   

SLM Corp., 8%, 2020

     325,000         344,906   
           
      $ 4,084,981   
           

Food & Beverages – 3.0%

     

ARAMARK Corp., 8.5%, 2015

   $ 430,000       $ 449,350   

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

     125,000         133,436   

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

     210,000         227,325   

Constellation Brands, Inc., 7.25%, 2016

     180,000         193,500   

Del Monte Foods Co., 6.75%, 2015

     335,000         340,025   

Pinnacle Foods Finance LLC, 9.25%, 2015

     330,000         344,025   

Pinnacle Foods Finance LLC, 10.625%, 2017

     65,000         69,713   

TreeHouse Foods, Inc., 7.75%, 2018

     215,000         232,738   
           
      $ 1,990,112   
           

Forest & Paper Products – 2.2%

     

Boise, Inc., 8%, 2020

   $ 225,000       $ 248,061   

Cascades, Inc., 7.75%, 2017

     205,000         214,481   

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

     190,000         201,875   

Georgia-Pacific Corp., 8%, 2024

     85,000         97,431   

Georgia-Pacific Corp., 7.25%, 2028

     55,000         58,025   

Graphic Packaging Holding Co., 7.875%, 2018

     125,000         134,375   

JSG Funding PLC, 7.75%, 2015

     10,000         10,250   

Millar Western Forest Products Ltd., 7.75%, 2013

     205,000         201,413   

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

     90,000         93,825   

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

   EUR  120,000         177,186   
           
      $ 1,436,922   
           

Gaming & Lodging – 6.8%

     

Ameristar Casinos, Inc., 9.25%, 2014

   $ 130,000       $ 139,750   

Circus & Eldorado Joint Venture, 10.125%, 2012

     300,000         294,000   

Firekeepers Development Authority, 13.875%, 2015 (n)

     335,000         399,069   

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

     695,000         3,475   

Gaylord Entertainment Co., 6.75%, 2014

     340,000         345,100   

GWR Operating Partnership LLP, 10.875%, 2017

     220,000         237,050   

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

     370,000         419,950   

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

     164,000         154,160   

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

     425,000         399,500   

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

     195,000         202,313   

Host Hotels & Resorts, Inc., 9%, 2017

     380,000         426,550   

MGM Mirage, 10.375%, 2014

     40,000         44,800   

MGM Mirage, 11.125%, 2017

     205,000         236,263   

MGM Mirage, 9%, 2020 (n)

     170,000         185,725   

MGM Resorts International, 11.375%, 2018

     110,000         124,850   

Penn National Gaming, Inc., 8.75%, 2019

     185,000         206,275   

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

     100,000         108,250   

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

     715,000         72   

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

     875,000         88   

Wyndham Worldwide Corp., 6%, 2016

     170,000         181,020   

Wyndham Worldwide Corp., 7.375%, 2020

     170,000         188,183   

 

5


MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 2/28/11 - continued

 

Issuer

   Shares/Par      Value ($)  

Bonds – continued

     

Gaming & Lodging – continued

     

Wynn Las Vegas LLC, 7.75%, 2020

   $ 110,000       $ 116,325   
           
      $ 4,412,768   
           

Industrial – 1.1%

     

Altra Holdings, Inc., 8.125%, 2016

   $ 115,000       $ 122,761   

Diversey, Inc., 8.25%, 2019

     160,000         174,200   

Hillman Group, Inc., 10.875%, 2018

     140,000         154,000   

Mueller Water Products, Inc., 7.375%, 2017

     125,000         121,875   

Mueller Water Products, Inc., 8.75%, 2020

     107,000         118,503   
           
      $ 691,339   
           

Insurance – 2.4%

     

American International Group, Inc., 8.175% to 2038, FRN to 2068

   $ 325,000       $ 356,685   

ING Capital Funding Trust III, FRN, 3.902%, 2049

     80,000         76,762   

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

     434,000         386,260   

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

     600,000         726,000   
           
      $ 1,545,707   
           

Insurance - Property & Casualty – 1.5%

     

Liberty Mutual Group, Inc., 10.75% to 2038, FRN to 2088 (n)

   $ 330,000       $ 429,825   

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

     320,000         329,600   

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

     245,000         226,625   
           
      $ 986,050   
           

International Market Sovereign – 0.3%

     

Republic of Ireland, 5.4%, 2025

   EUR 175,000       $ 169,817   
           

Machinery & Tools – 1.3%

     

Case Corp., 7.25%, 2016

   $ 90,000       $ 98,325   

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

     415,000         463,761   

Rental Service Corp., 9.5%, 2014

     178,000         186,900   

RSC Equipment Rental, Inc., 8.25%, 2021 (z)

     95,000         100,463   
           
      $ 849,449   
           

Major Banks – 2.6%

     

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

   $ 630,000       $ 665,085   

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

     445,000         484,387   

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

     525,000         480,375   

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

     100,000         86,000   
           
      $ 1,715,847   
           

Medical & Health Technology & Services – 8.1%

     

Biomet, Inc., 10.375%, 2017 (p)

   $ 85,000       $ 95,094   

Biomet, Inc., 11.625%, 2017

     475,000         535,563   

Community Health Systems, Inc., 8.875%, 2015

     435,000         461,100   

Davita, Inc., 6.375%, 2018

     190,000         192,613   

Davita, Inc., 6.625%, 2020

     105,000         106,444   

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

     165,000         189,131   

HCA, Inc., 9.25%, 2016

     1,150,000         1,242,000   

HCA, Inc., 8.5%, 2019

     160,000         179,200   

HealthSouth Corp., 8.125%, 2020

     435,000         471,975   

Tenet Healthcare Corp., 9.25%, 2015

     425,000         466,969   

Tenet Healthcare Corp., 8%, 2020

     90,000         92,700   

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

     95,000         100,225   

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

     125,000         132,186   

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

     400,000         418,000   

Vanguard Health Systems, Inc., 8%, 2018

     195,000         200,361   

 

6


MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 2/28/11 - continued

 

Issuer

   Shares/Par      Value ($)  

Bonds – continued

     

Medical & Health Technology & Services – continued

     

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

   $ 402,062       $ 426,186   
           
      $ 5,309,747   
           

Metals & Mining – 2.3%

     

Arch Coal, Inc., 7.25%, 2020

   $ 110,000       $ 116,875   

Arch Western Finance LLC, 6.75%, 2013

     85,000         85,850   

Cloud Peak Energy, Inc., 8.25%, 2017

     165,000         179,438   

Cloud Peak Energy, Inc., 8.5%, 2019

     225,000         248,063   

Consol Energy, Inc., 8%, 2017

     170,000         184,450   

Consol Energy, Inc., 8.25%, 2020

     110,000         121,275   

Novelis, Inc., 8.375%, 2017 (n)

     110,000         121,275   

Novelis, Inc., 8.75%, 2020 (n)

     60,000         66,150   

Peabody Energy Corp., 7.375%, 2016

     350,000         395,500   
           
      $ 1,518,876   
           

Natural Gas - Distribution – 0.8%

     

AmeriGas Partners LP, 7.125%, 2016

   $ 295,000       $ 306,800   

Ferrellgas Partners LP, 8.625%, 2020

     180,000         195,750   
           
      $ 502,550   
           

Natural Gas - Pipeline – 2.8%

     

Atlas Pipeline Partners LP, 8.125%, 2015

   $ 55,000       $ 57,406   

Atlas Pipeline Partners LP, 8.75%, 2018

     200,000         214,000   

Colorado Interstate Gas Co., 6.8%, 2015

     91,000         104,602   

Crosstex Energy, Inc., 8.875%, 2018

     220,000         242,550   

El Paso Corp., 6.875%, 2014

     325,000         355,152   

El Paso Corp., 7%, 2017

     185,000         206,686   

El Paso Corp., 7.75%, 2032

     90,000         95,292   

Energy Transfer Equity LP, 7.5%, 2020

     290,000         314,288   

Enterprise Products Partners LP, 8.375% to 2016, FRN to 2066

     109,000         117,584   

Enterprise Products Partners LP, 7.034% to 2018, FRN to 2068

     67,000         69,848   

MarkWest Energy Partners LP, 8.75%, 2018

     40,000         43,800   
           
      $ 1,821,208   
           

Network & Telecom – 5.1%

     

CenturyLink, Inc., 7.6%, 2039

   $ 125,000       $ 131,960   

Cincinnati Bell, Inc., 7%, 2015

     395,000         402,900   

Cincinnati Bell, Inc., 8.75%, 2018

     270,000         258,861   

Citizens Communications Co., 7.875%, 2027

     325,000         313,625   

Citizens Communications Co., 9%, 2031

     70,000         73,675   

Frontier Communications Corp., 8.25%, 2017

     65,000         71,825   

Frontier Communications Corp., 8.5%, 2020

     55,000         61,050   

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

     225,000         217,125   

Qwest Communications International, Inc., 8%, 2015

     105,000         114,581   

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

     315,000         337,838   

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

     250,000         253,750   

Qwest Corp., 7.5%, 2014

     145,000         166,025   

Windstream Corp., 8.625%, 2016

     715,000         756,113   

Windstream Corp., 8.125%, 2018

     45,000         48,150   

Windstream Corp., 7.75%, 2020

     125,000         129,531   
           
      $ 3,337,009   
           

Oil Services – 1.6%

     

Edgen Murray Corp., 12.25%, 2015

   $ 105,000       $ 100,275   

Expro Finance Luxembourg, 8.5%, 2016 (n)

     400,000         411,000   

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

     160,000         158,400   

Pioneer Drilling Co., 9.875%, 2018

     190,000         207,100   

 

7


MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 2/28/11 - continued

 

Issuer

   Shares/Par      Value ($)  

Bonds – continued

     

Oil Services – continued

     

Trinidad Drilling Ltd., 7.875%, 2019 (n)

   $ 130,000       $ 136,013   
           
      $ 1,012,788   
           

Oils – 0.3%

     

Petroplus Holdings AG, 9.375%, 2019 (n)

   $ 205,000       $ 213,200   
           

Other Banks & Diversified Financials – 2.5%

     

Capital One Financial Corp., 10.25%, 2039

   $ 220,000       $ 238,975   

Citigroup Capital XXI, 8.3% to 2037, FRN to 2077

     660,000         679,800   

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

     125,000         140,694   

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

     210,000         202,650   

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

     338,000         371,800   
           
      $ 1,633,919   
           

Pharmaceuticals – 0.1%

     

Valeant Pharmaceuticals International, Inc., 6.75%, 2017 (n)

   $ 60,000       $ 62,100   
           

Printing & Publishing – 0.7%

     

American Media, Inc., 13.5%, 2018 (z)

   $ 28,207       $ 28,806   

McClatchy Co., 11.5%, 2017

     100,000         113,500   

Morris Publishing Group LLC, 10%, 2014

     91,547         87,771   

Nielsen Finance LLC, 11.5%, 2016

     97,000         114,218   

Nielsen Finance LLC, 7.75%, 2018 (n)

     105,000         113,531   
           
      $ 457,826   
           

Railroad & Shipping – 0.5%

     

Kansas City Southern Railway, 8%, 2015

   $ 310,000       $ 336,350   
           

Real Estate – 0.6%

     

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

   $ 180,000       $ 212,175   

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

     200,000         210,500   
           
      $ 422,675   
           

Restaurants – 0.1%

     

Dunkin Finance Corp., 9.625%, 2018 (n)

   $ 68,000       $ 68,850   
           

Retailers – 3.5%

     

Burlington Coat Factory Warehouse Corp., 10%, 2019 (z)

   $ 50,000       $ 50,500   

Express LLC/Express Finance Corp., 8.75%, 2018

     110,000         118,388   

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

     205,000         204,616   

Limited Brands, Inc., 6.9%, 2017

     125,000         134,063   

Limited Brands, Inc., 6.95%, 2033

     175,000         162,750   

Neiman Marcus Group, Inc., 10.375%, 2015

     300,000         317,625   

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

     225,000         238,500   

Sally Beauty Holdings, Inc., 10.5%, 2016

     275,000         302,500   

Toys “R” Us Property Co. II LLC, 8.5%, 2017

     330,000         358,875   

Toys “R” Us, Inc., 10.75%, 2017

     280,000         319,900   

YCC Holdings LLC, 10.25%, 2016 (p)(z)

     105,000         108,150   
           
      $ 2,315,867   
           

Specialty Stores – 1.0%

     

Giraffe Acquisition Corp., 9.125%, 2018 (n)

   $ 70,000       $ 71,400   

Michaels Stores, Inc., 11.375%, 2016

     125,000         136,563   

Michaels Stores, Inc., 7.75%, 2018 (n)

     155,000         160,038   

Payless ShoeSource, Inc., 8.25%, 2013

     262,000         266,421   
           
      $ 634,422   
           

Telecommunications - Wireless – 5.5%

     

Clearwire Corp., 12%, 2015 (n)

   $ 525,000       $ 572,250   

Cricket Communications, Inc., 7.75%, 2016

     135,000         142,763   

 

8


MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 2/28/11 - continued

 

Issuer

   Shares/Par      Value ($)  

Bonds – continued

     

Telecommunications - Wireless – continued

     

Crown Castle International Corp., 9%, 2015

   $ 215,000       $ 241,875   

Crown Castle International Corp., 7.125%, 2019

     210,000         223,388   

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

     235,000         245,575   

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

     100,000         114,000   

MetroPCS Wireless, Inc., 7.875%, 2018

     105,000         110,906   

Nextel Communications, Inc., 7.375%, 2015

     170,000         170,425   

NII Holdings, Inc., 10%, 2016

     160,000         181,200   

NII Holdings, Inc., 8.875%, 2019

     100,000         110,500   

SBA Communications Corp., 8%, 2016

     80,000         87,200   

SBA Communications Corp., 8.25%, 2019

     125,000         137,813   

Sprint Capital Corp., 6.875%, 2028

     90,000         81,113   

Sprint Nextel Corp., 8.375%, 2017

     450,000         498,938   

Sprint Nextel Corp., 8.75%, 2032

     315,000         327,600   

Wind Acquisition Finance S.A., 11.75%, 2017 (n)

     100,000         114,750   

Wind Acquisition Finance S.A., 7.25%, 2018 (n)

     210,000         216,825   
           
      $ 3,577,121   
           

Telephone Services – 0.8%

     

Cogent Communications Group, Inc., 8.375%, 2018 (z)

   $ 100,000       $ 103,750   

Embarq Corp., 7.995%, 2036

     160,000         181,833   

Frontier Communications Corp., 8.125%, 2018

     195,000         216,694   
           
      $ 502,277   
           

Tobacco – 0.6%

     

Reynolds American, Inc., 7.625%, 2016

   $ 345,000       $ 409,940   
           

Transportation - Services – 2.6%

     

ACL I Corp., 10.625%, 2016 (p)(z)

   $ 150,000       $ 149,897   

Aguila American Resources Ltd., 7.875%, 2018 (z)

     150,000         155,625   

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

     145,000         151,706   

Commercial Barge Line Co., 12.5%, 2017

     285,000         330,600   

Hertz Corp., 8.875%, 2014

     219,000         224,749   

Hertz Corp., 7.5%, 2018 (n)

     130,000         137,638   

Hertz Corp., 7.375%, 2021 (n)

     170,000         177,650   

Navios Maritime Acquisition Corp., 8.625%, 2017 (n)

     105,000         109,463   

Navios Maritime Holdings, Inc., 8.875%, 2017

     90,000         97,200   

Swift Services Holdings, Inc., 10%, 2018 (z)

     165,000         180,675   
           
      $ 1,715,203   
           

Utilities - Electric Power – 5.7%

     

AES Corp., 8%, 2017

   $ 505,000       $ 547,925   

Calpine Corp., 8%, 2016 (n)

     415,000         450,275   

Calpine Corp., 7.875%, 2020 (n)

     215,000         227,361   

Covanta Holding Corp., 7.25%, 2020

     155,000         162,791   

Dynegy Holdings, Inc., 7.125%, 2018

     540,000         383,400   

Dynegy Holdings, Inc., 7.75%, 2019

     240,000         173,400   

Edison Mission Energy, 7%, 2017

     500,000         406,250   

Energy Future Holdings Corp., 10.25%, 2020 (n)

     270,000         281,165   

Energy Future Holdings Corp., 10%, 2020

     420,000         438,418   

Genon Escrow Corp., 9.875%, 2020 (n)

     475,000         499,938   

Texas Competitive Electric Holdings LLC, 10.25%, 2015

     275,000         154,688   
           
      $ 3,725,611   
           

Total Bonds

      $ 81,170,205   
           

Floating Rate Loans (g)(r) – 0.8%

     

Aerospace – 0.2%

     

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

   $ 107,005       $ 108,476   

 

9


MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 2/28/11 - continued

 

Issuer

                 Shares/Par      Value ($)  

Floating Rate Loans (g)(r) – continued

           

Broadcasting – 0.3%

           

Gray Television, Inc., Term Loan B, 3.77%, 2014

         $ 64,993       $ 64,703   

Local TV Finance LLC, Term Loan B, 2.31%, 2013

           15,390         15,006   

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

           92,724         93,111   
                 
            $ 172,820   
                 

Building – 0.0%

           

Goodman Global Holdings, Inc., 2nd Lien Term Loan, 9%, 2017

         $ 9,907       $ 10,211   
                 

Consumer Services – 0.1%

           

Realogy Corp., Letter of Credit, 3.113%, 2016

         $ 9,796       $ 9,398   

Realogy Corp., Term Loan, 5.25%, 2016

           57,760         55,408   
                 
            $ 64,806   
                 

Financial Institutions – 0.0%

           

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

         $ 32,250       $ 32,537   
                 

Gaming & Lodging – 0.2%

           

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

         $ 525,000       $ 4,935   

MGM Mirage, Term Loan, 7%, 2014 (o)

           119,806         117,993   
                 
            $ 122,928   
                 

Total Floating Rate Loans

            $ 511,778   
                 

Common Stocks – 0.5%

           

Automotive – 0.1%

           

Accuride Corp. (a)

           4,099       $ 57,345   
                 

Broadcasting – 0.1%

           

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

           42       $ 105,000   
                 

Gaming & Lodging – 0.1%

           

Ameristar Casinos, Inc.

           2,100       $ 35,175   
                 

Printing & Publishing – 0.2%

           

American Media Operations, Inc. (a)

           7,229       $ 103,158   

Quad/Graphics, Inc. (a)

           357         15,501   
                 
            $ 118,659   
                 

Special Products & Services – 0.0%

           

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

           207       $ 12,110   
                 

Trucking – 0.0%

           

Quality Distribution, Inc. (a)

           2,687       $ 27,139   
                 

Total Common Stocks

            $ 355,428   
                 

Preferred Stocks – 0.3%

           

Automotive – 0.2%

           

General Motors Co., 4.75%

           3,430       $ 174,518   
                 

Other Banks & Diversified Financials – 0.1%

           

Citigroup Capital XIII, 7.875%

           1,450       $ 39,223   
                 

Total Preferred Stocks

            $ 213,741   
                 
      Strike Price      First Exercise                

Warrants – 0.2%

           

Broadcasting – 0.2%

           

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

   $ 0.01         7/14/10         38       $ 95,000   
                 

Issuer/Expiration Date/Strike Price

                 Number
of  Contracts
        
           

Call Options Purchased – 0.1%

           

S&P 500 Index - June 2011@ $1,350

           23       $ 76,360   
                 

 

10


MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 2/28/11 - continued

 

Issuer

   Shares/Par      Value ($)  

Money Market Funds (v) – 5.4%

     

MFS Institutional Money Market Portfolio, 0.2%, at Net Asset Value

     3,515,723       $ 3,515,723   
           

Total Investments

      $ 85,938,235   
           

Other Assets, Less Liabilities (31.7)%

        (20,662,916
           

Net Assets – 100.0%

      $ 65,275,319   
           
(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 $16,818,166, representing 25.8% 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 affiliated 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      Value  

ACL I Corp., 10.625%, 2016

   2/10/11    $ 147,391       $ 149,897   

AMC Entertainment, Inc., 9.75%, 2020

   12/01/10      125,000         134,061   

Aguila American Resources Ltd., 7.875%, 2018

   1/25/11      153,713         155,625   

American Media, Inc., 13.5%, 2018

   12/22/10      28,652         28,806   

Banc of America Commercial Mortgage, Inc., FRN, 6.248%, 2051

   6/19/08      328,073         241,357   

Bresnan Broadband Holdings LLC, 8%, 2018

   12/01/10      60,000         63,000   

Burlington Coat Factory Warehouse Corp., 10%, 2019

   2/17/11      50,000         50,500   

CPI International Acquisition, Inc., 8%, 2018

   2/03/11      70,000         70,525   

Cequel Communications Holdings, 8.625%, 2017

   1/13/11      82,271         84,600   

Citadel Broadcasting Corp., 7.75%, 2018

   12/06/10      40,000         42,900   

Cogent Communications Group, Inc., 8.375%, 2018

   1/11/11      100,000         103,750   

Credit Acceptance Corp., 9.125%, 2017

   2/28/11      58,300         58,300   

Elizabeth Arden, Inc., 7.375%, 2021

   1/13/11 - 1/21/11      121,967         126,000   

G-Force LLC, CDO, “A2”, 4.83%, 2036

   1/20/11      124,805         127,688   

LBI Media, Inc., 8.5%, 2017

   7/18/07      148,183         125,438   

Local TV Finance LLC, 9.25%, 2015

   5/02/07 - 2/16/11      270,058         260,745   

NAI Entertainment Holdings LLC, 8.25%, 2017

   12/02/10 - 12/20/10      92,612         96,750   

Nationstar Mortgage LLC, 10.875%, 2015

   3/23/10 -12/08/10      234,615         257,500   

ONO Finance ll PLC, 10.875%, 2019

   1/21/11      150,000         161,250   

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

   2/01/07      225,000         217,125   

Packaging Dynamics Corp., 8.75%, 2016

   1/25/11 - 2/01/11      65,822         66,544   

Ply Gem Industries, Inc., 8.25%, 2018

   2/09/11      80,000         81,900   

Polypore International, Inc., 7.5%, 2017

   11/10/10 - 2/24/11      55,675         56,925   

RSC Equipment Rental, Inc., 8.25%, 2021

   1/13/11 - 1/14/11      95,869         100,463   

Reynolds Group, 9%, 2019

   1/24/11      105,580         104,250   

Reynolds Group, 8.25%, 2021

   1/27/11      105,000         105,263   

SIRIUS XM Radio, Inc., 13%, 2013

   12/15/10 -1/03/11      129,643         131,175   

Swift Services Holdings, Inc., 10%, 2018

   12/15/10      165,000         180,675   

Syniverse Holdings, Inc., 9.125%, 2019

   12/16/10      137,446         145,800   

UCI International, Inc., 8.625%, 2019

   1/11/11      60,000         63,900   

UPCB Finance III Ltd., 6.625%, 2020

   2/07/11      204,000         203,235   

USI Holdings Corp., 9.75%, 2015

   4/26/07 - 9/13/07      317,598         329,600   

 

11


MFS Intermediate High Income Fund

PORTFOLIO OF INVESTMENTS (unaudited) 2/28/11 - continued

 

Restricted Securities - continued

   Acquisition
Date
     Cost      Value  

YCC Holdings LLC, 10.25%, 2016

     2/04/11 - 2/10/11       $ 105,660       $ 108,150   

Total Restricted Securities

         $ 4,233,697   

% of Net Assets

           6.5

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

 

CDO    Collateralized Debt Obligation
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.

 

12


MFS Intermediate High Income Fund

Supplemental Information (Unaudited) 2/28/11

(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. Futures contracts are generally valued at last posted settlement price as provided by a third-party pricing service on the market on which they are primarily traded. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation as provided by a third-party pricing service on the market on which such futures contracts are primarily traded. 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 effected 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 and forwards.

 

13


MFS Intermediate High Income Fund

Supplemental Information (Unaudited) 2/28/11 - continued

(1) Investment Valuations - continued

 

The following is a summary of the levels used as of February 28, 2011 in valuing the fund’s assets or liabilities:

 

Investments at Value

   Level 1     Level 2     Level 3      Total  

Equity Securities

   $ 425,262      $ 315,267      $ —         $ 740,529   

Non-U.S. Sovereign Debt

     —          169,817        —           169,817   

Corporate Bonds

     —          70,000,077        0         70,000,077   

Commercial Mortgage-Backed Securities

     —          1,894,856        —           1,894,856   

Asset-Backed Securities (including CDOs)

     —          127,688        —           127,688   

Foreign Bonds

     —          8,977,767        —           8,977,767   

Floating Rate Loans

     —          511,778        —           511,778   

Mutual Funds

     3,515,723        —          —           3,515,723   
                                 

Total Investments

   $ 3,940,985      $ 81,997,250      $ 0       $ 85,938,235   
                                 

Other Financial Instruments

                         

Futures

   $ (1,818   $ —        $ —         $ (1,818

Forward Currency Contracts

     —          (45,745     —           (45,745

For further information regarding security characteristics, see the Portfolio of Investments. At 2/28/11, the fund held 1 level 3 security valued at $0, which was also held and valued at $0 at November 30, 2010.

(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

   $ 83,918,355   
        

Gross unrealized appreciation

   $ 5,835,473   

Gross unrealized depreciation

     (3,815,593
        

Net unrealized appreciation (depreciation)

   $ 2,019,880   
        

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

(3) Derivative Contracts at 2/28/11

Forward Foreign Currency Exchange Contracts at 2/28/11

 

Type

  

Currency

  

Counterparty

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

Asset Derivatives

                    

BUY

   EUR    Citibank N.A.      258,738         4/12/11       $ 356,649       $ 356,864       $ 215   

BUY

   EUR    UBS AG      80,000         3/15/11         105,531         110,378         4,847   
                          
                     $ 5,062   
                          

Liability Derivatives

                    

BUY

   EUR    Citibank N.A.      157,630         4/12/11       $ 217,644       $ 217,412       $ (232

SELL

   EUR    Credit Suisse Group      135,315         4/12/11         184,009         186,634         (2,625

SELL

   EUR    UBS AG      814,303         3/15/11         1,075,564         1,123,514         (47,950
                          
                     $ (50,807
                          

 

14


MFS Intermediate High Income Fund

Supplemental Information (Unaudited) 2/28/11 - continued

(3) Derivative Contracts at 2/28/11 - continued

 

Futures Contracts Outstanding at 2/28/11

 

Description

  

Currency

   Contracts      Value     

Expiration
Date

   Unrealized
Appreciation
(Depreciation)
 

Liability Derivatives

              

Interest Rate Futures

              

U.S. Treasury Note 10 yr (Short)

   USD      4       $ 476,188       June-2011    $ (1,045

U.S. Treasury Bond 30 yr (Short)

   USD      2         240,688       June-2011      (773
                    
               $ (1,818
                    

At February 28, 2011, the fund had sufficient cash and/or other liquid securities to cover any commitments under these derivative contracts.

(4) Transactions in Underlying Affiliated Funds-Affiliated Issuers

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

 

Underlying Affiliated Funds

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

MFS Institutional Money Market Portfolio

     1,209,589         8,072,935         (5,766,801     3,515,723   

Underlying Affiliated Funds

   Realized
Gain

(Loss)
     Capital Gain
Distributions
     Dividend
Income
    Ending
Value
 

MFS Institutional Money Market Portfolio

   $ —         $ —         $ 1,036      $ 3,515,723   

 

15


ITEM 2. CONTROLS AND PROCEDURES.

 

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

 

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

 

ITEM 3. EXHIBITS.

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


Notice

A copy of the 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. DIORIODWYER
  Maria F. DiOrioDwyer, President

Date: April 15, 2011

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. DIORIODWYER
  Maria F. DiOrioDwyer, President (Principal Executive Officer)

Date: April 15, 2011

 

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

Date: April 15, 2011

 

* Print name and title of each signing officer under his or her signature.
EX-99.CERT 2 dex99cert.htm CERTIFICATIONS CERTIFICATIONS

EX-99.CERT

MFS INTERMEDIATE HIGH INCOME FUND

CERTIFICATION

I, John M. Corcoran, certify that:

 

1. I have reviewed this report on Form N-Q 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 schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

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 registrant’s most recent fiscal quarter 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: April 15, 2011     JOHN M. CORCORAN
    John M. Corcoran
   

Treasurer (Principal Financial Officer and

Accounting Officer)


EX-99.CERT

MFS INTERMEDIATE HIGH INCOME FUND

CERTIFICATION

I, Maria F. DiOrioDwyer, certify that:

 

1. I have reviewed this report on Form N-Q 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 schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;

 

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 registrant’s most recent fiscal quarter 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: April 15, 2011     MARIA F. DIORIODWYER
    Maria F. DiOrioDwyer
    President (Principal Executive Officer)
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