Quarterly Report
February 28, 2021
MFS® Intermediate High
Income Fund
Income Fund
CIH-Q1
Portfolio of Investments
2/28/21 (unaudited)
The Portfolio of Investments is a
complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
| Issuer | Shares/Par | Value ($) | ||
| Bonds – 134.4% | ||||
| Aerospace – 3.3% | ||||
| Bombardier, Inc., 7.5%, 3/15/2025 (n) | $ | 308,000 | $281,725 | |
| Bombardier, Inc., 7.875%, 4/15/2027 (n) | 155,000 | 139,143 | ||
| F-Brasile S.p.A./F-Brasile U.S. LLC, 7.375%, 8/15/2026 (n) | 200,000 | 202,000 | ||
| Moog, Inc., 4.25%, 12/15/2027 (n) | 285,000 | 292,837 | ||
| TransDigm, Inc., 6.25%, 3/15/2026 (n) | 200,000 | 210,760 | ||
| TransDigm, Inc., 6.375%, 6/15/2026 | 185,000 | 190,583 | ||
| TransDigm, Inc., 5.5%, 11/15/2027 | 120,000 | 123,274 | ||
| TransDigm, Inc., 4.625%, 1/15/2029 (n) | 132,000 | 129,855 | ||
| $1,570,177 | ||||
| Automotive – 2.8% | ||||
| Adient Global Holdings Ltd., 4.875%, 8/15/2026 (n) | $ | 200,000 | $202,000 | |
| Adient U.S. LLC, 7%, 5/15/2026 (n) | 20,000 | 21,527 | ||
| Dana, Inc., 5.5%, 12/15/2024 | 20,000 | 20,350 | ||
| Dana, Inc., 5.375%, 11/15/2027 | 143,000 | 149,435 | ||
| Dana, Inc., 5.625%, 6/15/2028 | 47,000 | 49,879 | ||
| IAA Spinco, Inc., 5.5%, 6/15/2027 (n) | 250,000 | 261,006 | ||
| KAR Auction Services, Inc., 5.125%, 6/01/2025 (n) | 135,000 | 137,025 | ||
| Panther BR Aggregator 2 LP/Panther Finance Co., Inc., 8.5%, 5/15/2027 (n) | 245,000 | 264,355 | ||
| PM General Purchaser LLC, 9.5%, 10/01/2028 (n) | 90,000 | 99,086 | ||
| Real Hero Merger Sub 2, Inc., 6.25%, 2/01/2029 (n) | 105,000 | 108,150 | ||
| $1,312,813 | ||||
| Broadcasting – 3.9% | ||||
| Advantage Sales & Marketing, Inc., 6.5%, 11/15/2028 (n) | $ | 145,000 | $148,625 | |
| CBS Radio, Inc., 7.25%, 11/01/2024 (n) | 75,000 | 75,855 | ||
| iHeartCommunications, Inc., 8.375%, 5/01/2027 | 175,000 | 185,567 | ||
| Netflix, Inc., 5.875%, 2/15/2025 | 315,000 | 360,273 | ||
| Netflix, Inc., 3.625%, 6/15/2025 (n) | 150,000 | 159,750 | ||
| Netflix, Inc., 5.875%, 11/15/2028 | 70,000 | 83,790 | ||
| Nexstar Escrow Corp., 5.625%, 7/15/2027 (n) | 250,000 | 264,062 | ||
| Scripps Escrow II, Inc., 5.875%, 7/15/2027 (n) | 115,000 | 119,830 | ||
| WMG Acquisition Corp., 3.875%, 7/15/2030 (n) | 420,000 | 431,416 | ||
| $1,829,168 | ||||
| Brokerage & Asset Managers – 0.7% | ||||
| LPL Holdings, Inc., 4.625%, 11/15/2027 (n) | $ | 330,000 | $337,524 | |
| Building – 5.8% | ||||
| ABC Supply Co., Inc., 5.875%, 5/15/2026 (n) | $ | 175,000 | $180,868 | |
| ABC Supply Co., Inc., 4%, 1/15/2028 (n) | 290,000 | 292,900 | ||
| Core & Main LP, 8.625%, (8.625% cash or 9.375% PIK) 9/15/2024 (p) | 85,000 | 86,306 | ||
| Core & Main LP, 6.125%, 8/15/2025 (n) | 108,000 | 110,441 | ||
| Cornerstone Building Brands, Inc., 8%, 4/15/2026 (n) | 160,000 | 166,101 | ||
| Cornerstone Building Brands, Inc., 6.125%, 1/15/2029 (n) | 45,000 | 46,125 | ||
| CP Atlas Buyer, Inc., 7%, 12/01/2028 (n) | 121,000 | 125,689 | ||
| Foundation Building Materials LLC, 6%, 3/01/2029 (n) | 35,000 | 34,913 | ||
| Interface, Inc., 5.5%, 12/01/2028 (n) | 150,000 | 157,125 | ||
| LBM Acquisition LLC, 6.25%, 1/15/2029 (n) | 110,000 | 111,673 | ||
| New Enterprise Stone & Lime Co., Inc., 6.25%, 3/15/2026 (n) | 226,000 | 232,780 | ||
| New Enterprise Stone & Lime Co., Inc., 9.75%, 7/15/2028 (n) | 109,000 | 122,080 | ||
| Park River Holdings, Inc., 5.625%, 2/01/2029 (n) | 105,000 | 102,900 | ||
| Patrick Industries, Inc., 7.5%, 10/15/2027 (n) | 210,000 | 229,162 | ||
| Specialty Building Products Holdings LLC, 6.375%, 9/30/2026 (n) | 150,000 | 155,625 | ||
| SRM Escrow Issuer LLC, 6%, 11/01/2028 (n) | 155,000 | 161,006 | ||
| Standard Industries, Inc., 4.375%, 7/15/2030 (n) | 196,000 | 202,258 | ||
1
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Building – continued | ||||
| White Cap Buyer LLC, 6.875%, 10/15/2028 (n) | $ | 125,000 | $132,500 | |
| White Cap Parent LLC, 8.25%, (8.25% cash or 9% PIK) 3/15/2026 (p) | 75,000 | 79,079 | ||
| $2,729,531 | ||||
| Business Services – 2.6% | ||||
| Ascend Learning LLC, 6.875%, 8/01/2025 (n) | $ | 225,000 | $231,188 | |
| Austin BidCo, Inc., 7.125%, 12/15/2028 (n) | 105,000 | 107,756 | ||
| CDK Global, Inc., 4.875%, 6/01/2027 | 130,000 | 136,013 | ||
| Iron Mountain, Inc., 5.25%, 3/15/2028 (n) | 75,000 | 78,375 | ||
| Iron Mountain, Inc., 5.25%, 7/15/2030 (n) | 95,000 | 97,731 | ||
| Iron Mountain, Inc., REIT, 4.875%, 9/15/2027 (n) | 175,000 | 181,858 | ||
| Switch, Ltd., 3.75%, 9/15/2028 (n) | 235,000 | 239,406 | ||
| Verscend Escrow Corp., 9.75%, 8/15/2026 (n) | 165,000 | 177,256 | ||
| $1,249,583 | ||||
| Cable TV – 11.6% | ||||
| CCO Holdings LLC, 4.25%, 2/01/2031 (n) | $ | 150,000 | $151,875 | |
| CCO Holdings LLC/CCO Holdings Capital Corp., 5.75%, 2/15/2026 (n) | 234,000 | 241,839 | ||
| CCO Holdings LLC/CCO Holdings Capital Corp., 5.875%, 5/01/2027 (n) | 340,000 | 351,900 | ||
| CCO Holdings LLC/CCO Holdings Capital Corp., 4.75%, 3/01/2030 (n) | 575,000 | 600,127 | ||
| CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 8/15/2030 (n) | 150,000 | 155,271 | ||
| CSC Holdings LLC, 5.5%, 5/15/2026 (n) | 200,000 | 206,875 | ||
| CSC Holdings LLC, 5.5%, 4/15/2027 (n) | 600,000 | 630,750 | ||
| CSC Holdings LLC, 5.75%, 1/15/2030 (n) | 200,000 | 213,500 | ||
| DISH DBS Corp., 5.875%, 11/15/2024 | 205,000 | 214,754 | ||
| DISH DBS Corp., 7.75%, 7/01/2026 | 200,000 | 220,100 | ||
| Intelsat Jackson Holdings S.A., 5.5%, 8/01/2023 (a)(d) | 180,000 | 114,300 | ||
| Intelsat Jackson Holdings S.A., 9.75%, 7/15/2025 (a)(d)(n) | 90,000 | 57,654 | ||
| LCPR Senior Secured Financing DAC, 6.75%, 10/15/2027 (n) | 200,000 | 214,750 | ||
| Sirius XM Holdings, Inc., 4.625%, 7/15/2024 (n) | 195,000 | 200,606 | ||
| Sirius XM Holdings, Inc., 5.5%, 7/01/2029 (n) | 390,000 | 422,175 | ||
| Telenet Finance Luxembourg S.A., 5.5%, 3/01/2028 (n) | 400,000 | 423,000 | ||
| Telesat Holdings, Inc., 6.5%, 10/15/2027 (n) | 155,000 | 159,965 | ||
| Videotron Ltd., 5.375%, 6/15/2024 (n) | 20,000 | 21,800 | ||
| Videotron Ltd., 5.125%, 4/15/2027 (n) | 440,000 | 459,250 | ||
| Ziggo Bond Finance B.V., 5.125%, 2/28/2030 (n) | 400,000 | 417,048 | ||
| $5,477,539 | ||||
| Chemicals – 1.5% | ||||
| Axalta Coating Systems Ltd., 4.75%, 6/15/2027 (n) | $ | 150,000 | $156,750 | |
| Consolidated Energy Finance S.A., 6.875%, 6/15/2025 (n) | 200,000 | 203,500 | ||
| Element Solutions, Inc., 3.875%, 9/01/2028 (n) | 158,000 | 157,818 | ||
| Ingevity Corp., 3.875%, 11/01/2028 (n) | 195,000 | 193,051 | ||
| $711,119 | ||||
| Computer Software – 1.3% | ||||
| Camelot Finance S.A., 4.5%, 11/01/2026 (n) | $ | 295,000 | $306,063 | |
| PTC, Inc., 3.625%, 2/15/2025 (n) | 215,000 | 220,106 | ||
| PTC, Inc., 4%, 2/15/2028 (n) | 95,000 | 97,814 | ||
| $623,983 | ||||
| Computer Software - Systems – 2.3% | ||||
| BY Crown Parent LLC, 4.25%, 1/31/2026 (n) | $ | 65,000 | $66,950 | |
| Endurance International Group Holdings, Inc., 6%, 2/15/2029 (n) | 105,000 | 101,850 | ||
| Fair Isaac Corp., 5.25%, 5/15/2026 (n) | 385,000 | 436,012 | ||
| Fair Isaac Corp., 4%, 6/15/2028 (n) | 36,000 | 37,249 | ||
| JDA Software Group, Inc., 7.375%, 10/15/2024 (n) | 175,000 | 177,625 | ||
| SS&C Technologies Holdings, Inc., 5.5%, 9/30/2027 (n) | 275,000 | 291,239 | ||
| $1,110,925 | ||||
2
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Conglomerates – 5.7% | ||||
| Amsted Industries Co., 5.625%, 7/01/2027 (n) | $ | 270,000 | $286,200 | |
| BWX Technologies, Inc., 5.375%, 7/15/2026 (n) | 335,000 | 346,087 | ||
| BWX Technologies, Inc., 4.125%, 6/30/2028 (n) | 68,000 | 70,635 | ||
| CFX Escrow Corp., 6.375%, 2/15/2026 (n) | 210,000 | 223,912 | ||
| EnerSys, 5%, 4/30/2023 (n) | 275,000 | 287,375 | ||
| EnerSys, 4.375%, 12/15/2027 (n) | 55,000 | 57,888 | ||
| Gates Global LLC, 6.25%, 1/15/2026 (n) | 220,000 | 231,209 | ||
| Granite Holdings U.S. Acquisition Co., 11%, 10/01/2027 (n) | 135,000 | 151,200 | ||
| Griffon Corp., 5.75%, 3/01/2028 | 223,000 | 234,150 | ||
| MTS Systems Corp., 5.75%, 8/15/2027 (n) | 135,000 | 146,880 | ||
| Stevens Holding Co., Inc., 6.125%, 10/01/2026 (n) | 200,000 | 215,250 | ||
| TriMas Corp., 4.875%, 10/15/2025 (n) | 460,000 | 469,200 | ||
| $2,719,986 | ||||
| Construction – 2.6% | ||||
| Empire Communities Corp., 7%, 12/15/2025 (n) | $ | 145,000 | $152,613 | |
| Mattamy Group Corp., 5.25%, 12/15/2027 (n) | 95,000 | 99,750 | ||
| Mattamy Group Corp., 4.625%, 3/01/2030 (n) | 155,000 | 161,006 | ||
| Shea Homes LP/Shea Homes Funding Corp., 4.75%, 2/15/2028 (n) | 200,000 | 206,500 | ||
| Toll Brothers Finance Corp., 4.875%, 11/15/2025 | 180,000 | 202,950 | ||
| Toll Brothers Finance Corp., 4.35%, 2/15/2028 | 160,000 | 177,600 | ||
| Weekley Homes LLC/Weekley Finance Corp., 4.875%, 9/15/2028 (n) | 231,000 | 241,353 | ||
| $1,241,772 | ||||
| Consumer Products – 1.9% | ||||
| Coty, Inc., 6.5%, 4/15/2026 (n) | $ | 190,000 | $187,359 | |
| Energizer Holdings, Inc., 4.375%, 3/31/2029 (n) | 150,000 | 149,625 | ||
| Mattel, Inc., 6.75%, 12/31/2025 (n) | 160,000 | 168,080 | ||
| Mattel, Inc., 5.875%, 12/15/2027 (n) | 109,000 | 118,660 | ||
| Prestige Brands Holdings, Inc., 3.75%, 4/01/2031 (n) | 80,000 | 78,404 | ||
| Prestige Brands, Inc., 5.125%, 1/15/2028 (n) | 170,000 | 177,875 | ||
| $880,003 | ||||
| Consumer Services – 4.3% | ||||
| Allied Universal Holdco LLC, 6.625%, 7/15/2026 (n) | $ | 59,000 | $62,466 | |
| Allied Universal Holdco LLC, 9.75%, 7/15/2027 (n) | 175,000 | 193,119 | ||
| ANGI Group LLC, 3.875%, 8/15/2028 (n) | 210,000 | 214,725 | ||
| Arches Buyer, Inc., 6.125%, 12/01/2028 (n) | 120,000 | 124,048 | ||
| Frontdoor, Inc., 6.75%, 8/15/2026 (n) | 155,000 | 164,881 | ||
| Garda World Security Corp., 4.625%, 2/15/2027 (n) | 75,000 | 74,438 | ||
| GoDaddy, Inc., 3.5%, 3/01/2029 (n) | 118,000 | 117,410 | ||
| GW B-CR Security Corp., 9.5%, 11/01/2027 (n) | 131,000 | 141,480 | ||
| Match Group, Inc., 5%, 12/15/2027 (n) | 200,000 | 209,576 | ||
| Match Group, Inc., 4.625%, 6/01/2028 (n) | 220,000 | 228,400 | ||
| Match Group, Inc., 4.125%, 8/01/2030 (n) | 65,000 | 67,194 | ||
| Realogy Group LLC, 9.375%, 4/01/2027 (n) | 220,000 | 242,066 | ||
| Realogy Group LLC, 5.75%, 1/15/2029 (n) | 60,000 | 60,282 | ||
| TriNet Group, Inc., 3.5%, 3/01/2029 (n) | 147,000 | 145,852 | ||
| $2,045,937 | ||||
| Containers – 4.9% | ||||
| Ardagh Metal Packaging, 4%, 9/01/2029 (n) | $ | 200,000 | $200,000 | |
| Ardagh Packaging Finance PLC/Ardagh MP Holdings USA, Inc., 5.25%, 8/15/2027 (n) | 255,000 | 264,083 | ||
| Berry Global, Inc., 5.625%, 7/15/2027 (n) | 95,000 | 100,700 | ||
| Crown Americas LLC/Crown Americas Capital Corp. IV, 4.5%, 1/15/2023 | 276,000 | 290,145 | ||
| Crown Americas LLC/Crown Americas Capital Corp. V, 4.25%, 9/30/2026 | 270,000 | 290,925 | ||
| Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 2/01/2026 | 45,000 | 46,588 | ||
| Flex Acquisition Co., Inc., 6.875%, 1/15/2025 (n) | 175,000 | 177,277 | ||
| Greif, Inc., 6.5%, 3/01/2027 (n) | 125,000 | 131,250 | ||
3
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Containers – continued | ||||
| Reynolds Group, 4%, 10/15/2027 (n) | $ | 230,000 | $229,425 | |
| Silgan Holdings, Inc., 4.75%, 3/15/2025 | 205,000 | 207,409 | ||
| Silgan Holdings, Inc., 4.125%, 2/01/2028 | 152,000 | 157,860 | ||
| Trivium Packaging Finance B.V., 8.5%, 8/15/2027 (n) | 200,000 | 214,500 | ||
| $2,310,162 | ||||
| Electrical Equipment – 0.8% | ||||
| CommScope Technologies LLC, 6%, 6/15/2025 (n) | $ | 129,000 | $131,392 | |
| CommScope Technologies LLC, 5%, 3/15/2027 (n) | 180,000 | 176,324 | ||
| TTM Technologies, Inc., 4%, 3/01/2029 (n) | 73,000 | 73,752 | ||
| $381,468 | ||||
| Electronics – 2.4% | ||||
| Diebold Nixdorf, Inc., 8.5%, 4/15/2024 | $ | 50,000 | $51,000 | |
| Diebold Nixdorf, Inc., 9.375%, 7/15/2025 (n) | 106,000 | 118,455 | ||
| Entegris, Inc., 4.625%, 2/10/2026 (n) | 250,000 | 258,158 | ||
| Entegris, Inc., 4.375%, 4/15/2028 (n) | 90,000 | 94,431 | ||
| Sensata Technologies B.V., 5.625%, 11/01/2024 (n) | 140,000 | 154,350 | ||
| Sensata Technologies B.V., 5%, 10/01/2025 (n) | 285,000 | 312,702 | ||
| Sensata Technologies, Inc., 4.375%, 2/15/2030 (n) | 125,000 | 133,281 | ||
| $1,122,377 | ||||
| Energy - Independent – 4.6% | ||||
| Apache Corp., 4.875%, 11/15/2027 | $ | 63,000 | $66,150 | |
| Apache Corp., 4.375%, 10/15/2028 | 255,000 | 258,187 | ||
| CNX Resources Corp., 6%, 1/15/2029 (n) | 135,000 | 141,244 | ||
| CrownRock LP/CrownRock Finance, Inc., 5.625%, 10/15/2025 (n) | 130,000 | 131,304 | ||
| EQT Corp., 5%, 1/15/2029 | 73,000 | 79,935 | ||
| Laredo Petroleum, Inc., 10.125%, 1/15/2028 | 110,000 | 105,160 | ||
| Leviathan Bond Ltd., 6.5%, 6/30/2027 (n) | 159,000 | 176,331 | ||
| Magnolia Oil & Gas Operating LLC/Magnolia Oil & Gas Finance Corp., 6%, 8/01/2026 (n) | 150,000 | 154,638 | ||
| Murphy Oil Corp., 6.875%, 8/15/2024 | 100,000 | 101,500 | ||
| Murphy Oil Corp., 5.875%, 12/01/2027 | 60,000 | 59,100 | ||
| Newfield Exploration Co., 5.375%, 1/01/2026 | 80,000 | 88,514 | ||
| Occidental Petroleum Corp., 5.875%, 9/01/2025 | 155,000 | 168,175 | ||
| Occidental Petroleum Corp., 5.5%, 12/01/2025 | 105,000 | 111,510 | ||
| Ovintiv, Inc., 6.5%, 8/15/2034 | 55,000 | 68,168 | ||
| Range Resources Corp., 9.25%, 2/01/2026 | 65,000 | 70,734 | ||
| Range Resources Corp., 8.25%, 1/15/2029 (n) | 105,000 | 112,843 | ||
| Southwestern Energy Co., 6.45%, 1/23/2025 | 98,300 | 103,215 | ||
| Southwestern Energy Co., 7.5%, 4/01/2026 | 137,700 | 144,960 | ||
| Southwestern Energy Co., 7.75%, 10/01/2027 | 35,000 | 37,405 | ||
| $2,179,073 | ||||
| Entertainment – 3.7% | ||||
| Carnival Corp. PLC, 7.625%, 3/01/2026 (n) | $ | 75,000 | $78,844 | |
| Carnival Corp. PLC, 5.75%, 3/01/2027 (n) | 150,000 | 152,250 | ||
| Carnival Corp. PLC, 9.875%, 8/01/2027 (n) | 150,000 | 172,512 | ||
| Cedar Fair LP/Canada's Wonderland Co./Magnum Management Corp./Millennium Operations LLC, 5.5%, 5/01/2025 (n) | 60,000 | 62,888 | ||
| Cedar Fair LP/Canada's Wonderland Co./Magnum Management Corp./Millennium Operations LLC, 5.375%, 4/15/2027 | 105,000 | 107,323 | ||
| Live Nation Entertainment, Inc., 5.625%, 3/15/2026 (n) | 218,000 | 223,450 | ||
| Live Nation Entertainment, Inc., 4.75%, 10/15/2027 (n) | 75,000 | 75,765 | ||
| Merlin Entertainments, 5.75%, 6/15/2026 (n) | 200,000 | 211,000 | ||
| NCL Corp. Ltd., 3.625%, 12/15/2024 (n) | 80,000 | 74,776 | ||
| NCL Corp. Ltd., 10.25%, 2/01/2026 (n) | 95,000 | 110,437 | ||
| NCL Corp. Ltd., 5.875%, 3/15/2026 (n) | 105,000 | 105,559 | ||
| Royal Caribbean Cruises Ltd., 10.875%, 6/01/2023 (n) | 90,000 | 101,954 | ||
| Six Flags Entertainment Corp., 4.875%, 7/31/2024 (n) | 185,000 | 185,152 | ||
4
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Entertainment – continued | ||||
| Six Flags Entertainment Corp., 7%, 7/01/2025 (n) | $ | 70,000 | $75,462 | |
| $1,737,372 | ||||
| Financial Institutions – 4.0% | ||||
| Avation Capital S.A., 6.5%, 5/15/2021 (n) | $ | 200,000 | $160,000 | |
| Avolon Holdings Funding Ltd., 5.125%, 10/01/2023 | 150,000 | 160,786 | ||
| Avolon Holdings Funding Ltd., 3.95%, 7/01/2024 (n) | 130,000 | 135,923 | ||
| Credit Acceptance Corp., 5.125%, 12/31/2024 (n) | 220,000 | 223,344 | ||
| Freedom Mortgage Corp., 7.625%, 5/01/2026 (n) | 150,000 | 160,500 | ||
| Global Aircraft Leasing Co. Ltd., 6.5%, (6.5% cash or 7.25% PIK) 9/15/2024 (p) | 462,348 | 429,105 | ||
| Nationstar Mortgage Holdings, Inc., 6%, 1/15/2027 (n) | 160,000 | 168,000 | ||
| OneMain Finance Corp., 6.875%, 3/15/2025 | 95,000 | 107,149 | ||
| OneMain Finance Corp., 8.875%, 6/01/2025 | 99,000 | 108,762 | ||
| OneMain Finance Corp., 7.125%, 3/15/2026 | 100,000 | 115,500 | ||
| Park Aerospace Holdings Ltd., 5.5%, 2/15/2024 (n) | 120,000 | 130,509 | ||
| $1,899,578 | ||||
| Food & Beverages – 4.6% | ||||
| Aramark Services, Inc., 6.375%, 5/01/2025 (n) | $ | 270,000 | $285,187 | |
| JBS USA LLC/JBS USA Finance, Inc., 6.75%, 2/15/2028 (n) | 295,000 | 323,751 | ||
| JBS USA Lux S.A./JBS USA Finance, Inc., 5.5%, 1/15/2030 (n) | 115,000 | 128,800 | ||
| Kraft Heinz Foods Co., 4.375%, 6/01/2046 | 305,000 | 330,037 | ||
| Lamb Weston Holdings, Inc., 4.625%, 11/01/2024 (n) | 295,000 | 306,210 | ||
| Lamb Weston Holdings, Inc., 4.875%, 5/15/2028 (n) | 43,000 | 46,870 | ||
| Performance Food Group Co., 5.5%, 10/15/2027 (n) | 210,000 | 220,773 | ||
| Post Holdings, Inc., 5.625%, 1/15/2028 (n) | 150,000 | 157,459 | ||
| Post Holdings, Inc., 4.625%, 4/15/2030 (n) | 150,000 | 152,250 | ||
| U.S. Foods Holding Corp., 4.75%, 2/15/2029 (n) | 230,000 | 234,025 | ||
| $2,185,362 | ||||
| Gaming & Lodging – 8.0% | ||||
| Boyd Gaming Corp., 4.75%, 12/01/2027 | $ | 130,000 | $132,229 | |
| Caesars Resort Collection LLC/CRC Finco, Inc., 5.25%, 10/15/2025 (n) | 180,000 | 178,682 | ||
| CCM Merger, Inc., 6.375%, 5/01/2026 (n) | 165,000 | 174,900 | ||
| Churchill Downs, Inc., 5.5%, 4/01/2027 (n) | 115,000 | 119,819 | ||
| Colt Merger Sub, Inc., 5.75%, 7/01/2025 (n) | 131,000 | 137,550 | ||
| Colt Merger Sub, Inc., 8.125%, 7/01/2027 (n) | 162,000 | 176,682 | ||
| Hilton Domestic Operating Co., Inc., 3.75%, 5/01/2029 (n) | 208,000 | 211,598 | ||
| Hilton Domestic Operating Co., Inc., 3.625%, 2/15/2032 (n) | 146,000 | 144,041 | ||
| MGM China Holdings Ltd., 5.875%, 5/15/2026 (n) | 200,000 | 211,464 | ||
| MGM Growth Properties LLC, 4.625%, 6/15/2025 (n) | 185,000 | 196,100 | ||
| MGM Growth Properties LLC, 5.75%, 2/01/2027 | 75,000 | 84,750 | ||
| MGM Growth Properties LLC, 3.875%, 2/15/2029 (n) | 135,000 | 136,380 | ||
| MGM Resorts International, 6.75%, 5/01/2025 | 185,000 | 198,067 | ||
| MGM Resorts International, 5.5%, 4/15/2027 | 135,000 | 146,434 | ||
| Scientific Games Corp., 8.25%, 3/15/2026 (n) | 120,000 | 127,204 | ||
| Scientific Games International, Inc., 7%, 5/15/2028 (n) | 115,000 | 121,865 | ||
| VICI Properties LP, REIT, 4.25%, 12/01/2026 (n) | 140,000 | 144,375 | ||
| VICI Properties LP, REIT, 3.75%, 2/15/2027 (n) | 235,000 | 238,525 | ||
| Wyndham Hotels & Resorts, Inc., 4.375%, 8/15/2028 (n) | 39,000 | 39,833 | ||
| Wyndham Hotels Group LLC, 5.375%, 4/15/2026 (n) | 305,000 | 311,862 | ||
| Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 5.5%, 3/01/2025 (n) | 150,000 | 159,000 | ||
| Wynn Macau Ltd., 5.5%, 1/15/2026 (n) | 105,000 | 109,410 | ||
| Wynn Macau Ltd., 5.625%, 8/26/2028 (n) | 200,000 | 209,425 | ||
| Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., 5.125%, 10/01/2029 (n) | 85,000 | 89,463 | ||
| $3,799,658 | ||||
5
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Industrial – 1.0% | ||||
| Howard Hughes Corp., 4.125%, 2/01/2029 (n) | $ | 264,000 | $262,698 | |
| Williams Scotsman International, Inc., 4.625%, 8/15/2028 (n) | 182,000 | 187,005 | ||
| $449,703 | ||||
| Insurance - Property & Casualty – 1.7% | ||||
| Acrisure LLC/Acrisure Finance, Inc., 7%, 11/15/2025 (n) | $ | 150,000 | $153,750 | |
| Alliant Holdings Intermediate LLC, 6.75%, 10/15/2027 (n) | 240,000 | 248,234 | ||
| AssuredPartners, Inc., 7%, 8/15/2025 (n) | 60,000 | 61,346 | ||
| AssuredPartners, Inc., 5.625%, 1/15/2029 (n) | 55,000 | 55,275 | ||
| GTCR (AP) Finance, Inc., 8%, 5/15/2027 (n) | 65,000 | 69,388 | ||
| Hub International Ltd., 7%, 5/01/2026 (n) | 215,000 | 224,009 | ||
| $812,002 | ||||
| Machinery & Tools – 0.3% | ||||
| Clark Equipment Co., 5.875%, 6/01/2025 (n) | $ | 155,000 | $163,525 | |
| Major Banks – 1.4% | ||||
| Barclays PLC, 7.875%, 12/29/2049 | $ | 200,000 | $210,000 | |
| Credit Suisse Group AG, 7.25%, 12/29/2049 (n) | 200,000 | 227,260 | ||
| UBS Group AG, 6.875% to 8/07/2025, FLR (Swap Rate - 5yr. + 4.59%) to 12/29/2049 | 200,000 | 226,000 | ||
| $663,260 | ||||
| Medical & Health Technology & Services – 9.1% | ||||
| AdaptHealth LLC, 4.625%, 8/01/2029 (n) | $ | 160,000 | $160,254 | |
| Akumin, Inc., 7%, 11/01/2025 (n) | 120,000 | 125,400 | ||
| Avantor Funding, Inc., 4.625%, 7/15/2028 (n) | 279,000 | 290,863 | ||
| BCPE Cycle Merger Sub II, Inc., 10.625%, 7/15/2027 (n) | 115,000 | 126,500 | ||
| CHS/Community Health Systems, Inc., 6.625%, 2/15/2025 (n) | 280,000 | 294,455 | ||
| CHS/Community Health Systems, Inc., 8%, 12/15/2027 (n) | 35,000 | 38,369 | ||
| DaVita, Inc., 4.625%, 6/01/2030 (n) | 140,000 | 142,275 | ||
| DaVita, Inc., 3.75%, 2/15/2031 (n) | 122,000 | 116,569 | ||
| Encompass Health Corp., 5.75%, 9/15/2025 | 120,000 | 124,200 | ||
| Encompass Health Corp., 4.625%, 4/01/2031 | 120,000 | 127,470 | ||
| HCA, Inc., 5.375%, 2/01/2025 | 400,000 | 449,000 | ||
| HCA, Inc., 5.875%, 2/15/2026 | 275,000 | 317,886 | ||
| HCA, Inc., 5.625%, 9/01/2028 | 45,000 | 52,370 | ||
| HCA, Inc., 5.875%, 2/01/2029 | 75,000 | 88,414 | ||
| HCA, Inc., 3.5%, 9/01/2030 | 175,000 | 180,910 | ||
| HealthSouth Corp., 5.125%, 3/15/2023 | 265,000 | 265,000 | ||
| Heartland Dental LLC, 8.5%, 5/01/2026 (n) | 130,000 | 135,200 | ||
| IQVIA Holdings, Inc., 5%, 5/15/2027 (n) | 600,000 | 627,750 | ||
| LifePoint Health, Inc., 4.375%, 2/15/2027 (n) | 75,000 | 74,556 | ||
| LifePoint Health, Inc., 5.375%, 1/15/2029 (n) | 55,000 | 55,277 | ||
| Regional Care/LifePoint Health, Inc., 9.75%, 12/01/2026 (n) | 235,000 | 253,264 | ||
| Syneos Health, Inc., 3.625%, 1/15/2029 (n) | 220,000 | 215,600 | ||
| US Acute Care Solutions LLC, 6.375%, 3/01/2026 (n) | 45,000 | 46,013 | ||
| $4,307,595 | ||||
| Medical Equipment – 1.4% | ||||
| Hill-Rom Holdings, Inc., 4.375%, 9/15/2027 (n) | $ | 250,000 | $260,625 | |
| Teleflex, Inc., 4.875%, 6/01/2026 | 80,000 | 82,400 | ||
| Teleflex, Inc., 4.625%, 11/15/2027 | 295,000 | 310,856 | ||
| $653,881 | ||||
| Metals & Mining – 6.1% | ||||
| Arconic Corp., 6%, 5/15/2025 (n) | $ | 175,000 | $185,938 | |
| Baffinland Iron Mines Corp./Baffinland Iron Mines LP, 8.75%, 7/15/2026 (n) | 235,000 | 247,925 | ||
| Big River Steel LLC/BRS Finance Corp., 6.625%, 1/31/2029 (n) | 125,000 | 134,016 | ||
| Coeur Mining, Inc., 5.125%, 2/15/2029 (n) | 145,000 | 141,103 | ||
6
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Metals & Mining – continued | ||||
| Compass Minerals International, Inc., 6.75%, 12/01/2027 (n) | $ | 185,000 | $198,875 | |
| First Quantum Minerals Ltd., 6.875%, 10/15/2027 (n) | 200,000 | 217,000 | ||
| Freeport-McMoRan, Inc., 5%, 9/01/2027 | 190,000 | 203,209 | ||
| Freeport-McMoRan, Inc., 4.375%, 8/01/2028 | 100,000 | 106,375 | ||
| Freeport-McMoRan, Inc., 5.25%, 9/01/2029 | 185,000 | 205,572 | ||
| GrafTech Finance, Inc., 4.625%, 12/15/2028 (n) | 150,000 | 153,030 | ||
| Grinding Media, Inc./Moly-Cop AltaSteel Ltd., 7.375%, 12/15/2023 (n) | 200,000 | 203,750 | ||
| Kaiser Aluminum Corp., 4.625%, 3/01/2028 (n) | 252,000 | 263,070 | ||
| Novelis Corp., 5.875%, 9/30/2026 (n) | 285,000 | 297,112 | ||
| SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp., 7.5%, 6/15/2025 (n) | 110,000 | 114,158 | ||
| TMS International Corp., 7.25%, 8/15/2025 (n) | 220,000 | 224,446 | ||
| $2,895,579 | ||||
| Midstream – 6.3% | ||||
| Cheniere Energy Partners LP, 5.25%, 10/01/2025 | $ | 380,000 | $390,564 | |
| Cheniere Energy Partners LP, 4.5%, 10/01/2029 | 110,000 | 115,362 | ||
| Cheniere Energy, Inc., 4%, 3/01/2031 (n) | 180,000 | 181,409 | ||
| EnLink Midstream Partners LP, 4.85%, 7/15/2026 | 120,000 | 119,700 | ||
| EnLink Midstream Partners LP, 5.625%, 1/15/2028 (n) | 135,000 | 136,181 | ||
| EQM Midstream Partners LP, 6%, 7/01/2025 (n) | 48,000 | 50,760 | ||
| EQM Midstream Partners LP, 6.5%, 7/01/2027 (n) | 47,000 | 50,417 | ||
| EQM Midstream Partners LP, 5.5%, 7/15/2028 | 370,000 | 381,100 | ||
| EQM Midstream Partners LP, 4.5%, 1/15/2029 (n) | 90,000 | 87,244 | ||
| Genesis Energy LP/Genesis Energy Finance Corp., 5.625%, 6/15/2024 | 60,000 | 58,800 | ||
| Genesis Energy LP/Genesis Energy Finance Corp., 6.25%, 5/15/2026 | 152,500 | 144,494 | ||
| Genesis Energy LP/Genesis Energy Finance Corp., 8%, 1/15/2027 | 15,000 | 15,163 | ||
| Northriver Midstream Finance LP, 5.625%, 2/15/2026 (n) | 235,000 | 243,519 | ||
| NuStar Logistics, LP, 5.75%, 10/01/2025 | 220,000 | 234,300 | ||
| Targa Resources Partners LP/Targa Resources Finance Corp., 5.375%, 2/01/2027 | 180,000 | 186,750 | ||
| Targa Resources Partners LP/Targa Resources Finance Corp., 6.875%, 1/15/2029 | 160,000 | 177,400 | ||
| Western Midstream Operating LP, 5.3%, 2/01/2030 | 270,000 | 292,689 | ||
| Western Midstream Operation LP, 4.65%, 7/01/2026 | 110,000 | 113,874 | ||
| $2,979,726 | ||||
| Municipals – 0.2% | ||||
| Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority Rev. (Cogeneration Facilities - AES Puerto Rico Project), 9.12%, 6/01/2022 | $ | 105,000 | $107,625 | |
| Network & Telecom – 0.9% | ||||
| C&W Senior Financing DAC, 6.875%, 9/15/2027 (n) | $ | 200,000 | $214,250 | |
| Front Range BidCo, Inc., 6.125%, 3/01/2028 (n) | 185,000 | 190,754 | ||
| $405,004 | ||||
| Oil Services – 0.2% | ||||
| Ensign Drilling, Inc., 9.25%, 4/15/2024 (n) | $ | 100,000 | $75,000 | |
| Oils – 0.3% | ||||
| PBF Holding Co. LLC/PBF Finance Corp., 7.25%, 6/15/2025 | $ | 120,000 | $82,800 | |
| PBF Holding Co. LLC/PBF Finance Corp., 6%, 2/15/2028 | 130,000 | 82,550 | ||
| $165,350 | ||||
| Personal Computers & Peripherals – 0.4% | ||||
| NCR Corp., 5%, 10/01/2028 (n) | $ | 205,000 | $208,118 | |
| Pharmaceuticals – 3.5% | ||||
| Bausch Health Companies, Inc., 6.125%, 4/15/2025 (n) | $ | 535,000 | $547,112 | |
| Bausch Health Companies, Inc., 5%, 1/30/2028 (n) | 350,000 | 357,000 | ||
| Bausch Health Companies, Inc., 5%, 2/15/2029 (n) | 45,000 | 45,506 | ||
| Catalent, Inc., 3.125%, 2/15/2029 (n) | 58,000 | 57,303 | ||
7
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Pharmaceuticals – continued | ||||
| Emergent BioSolutions, Inc., 3.875%, 8/15/2028 (n) | $ | 261,000 | $264,670 | |
| Jaguar Holding Co. II/Pharmaceutical Development LLC, 5%, 6/15/2028 (n) | 254,000 | 267,970 | ||
| Par Pharmaceutical, Inc., 7.5%, 4/01/2027 (n) | 105,000 | 112,875 | ||
| $1,652,436 | ||||
| Pollution Control – 1.1% | ||||
| GFL Environmental, Inc., 3.75%, 8/01/2025 (n) | $ | 60,000 | $61,125 | |
| GFL Environmental, Inc., 8.5%, 5/01/2027 (n) | 65,000 | 71,500 | ||
| GFL Environmental, Inc., 4%, 8/01/2028 (n) | 105,000 | 102,375 | ||
| GFL Environmental, Inc., 3.5%, 9/01/2028 (n) | 125,000 | 122,188 | ||
| Stericycle, Inc., 3.875%, 1/15/2029 (n) | 170,000 | 171,215 | ||
| $528,403 | ||||
| Precious Metals & Minerals – 0.5% | ||||
| IAMGOLD Corp., 5.75%, 10/15/2028 (n) | $ | 155,000 | $160,203 | |
| Taseko Mines Ltd., 7%, 2/15/2026 (n) | 60,000 | 61,213 | ||
| $221,416 | ||||
| Printing & Publishing – 0.7% | ||||
| Cimpress N.V., 7%, 6/15/2026 (n) | $ | 300,000 | $316,410 | |
| Railroad & Shipping – 0.4% | ||||
| Watco Cos. LLC/Watco Finance Corp., 6.5%, 6/15/2027 (n) | $ | 182,000 | $195,568 | |
| Real Estate - Healthcare – 0.4% | ||||
| MPT Operating Partnership LP/MPT Financial Co., REIT, 5%, 10/15/2027 | $ | 185,000 | $197,062 | |
| Real Estate - Other – 1.0% | ||||
| InterMed Holdings Ltd., 5.875%, 10/01/2028 (n) | $ | 180,000 | $188,550 | |
| RHP Hotel Properties LP, 4.5%, 2/15/2029 (n) | 110,000 | 108,944 | ||
| Ryman Hospitality Properties, Inc., REIT, 4.75%, 10/15/2027 (n) | 161,000 | 163,223 | ||
| $460,717 | ||||
| Retailers – 1.0% | ||||
| L Brands, Inc., 5.25%, 2/01/2028 | $ | 350,000 | $374,500 | |
| L Brands, Inc., 6.625%, 10/01/2030 (n) | 75,000 | 84,188 | ||
| $458,688 | ||||
| Specialty Chemicals – 0.4% | ||||
| Univar Solutions USA, Inc., 5.125%, 12/01/2027 (n) | $ | 201,000 | $210,045 | |
| Specialty Stores – 1.4% | ||||
| Group 1 Automotive, Inc., 4%, 8/15/2028 (n) | $ | 221,000 | $223,210 | |
| PetSmart, Inc., 7.125%, 3/15/2023 (n) | 160,000 | 160,288 | ||
| PetSmart, Inc./PetSmart Finance Corp., 4.75%, 2/15/2028 (n) | 250,000 | 258,988 | ||
| $642,486 | ||||
| Supermarkets – 0.7% | ||||
| Albertsons Cos. LLC/Safeway, Inc., 5.75%, 3/15/2025 | $ | 22,000 | $22,687 | |
| Albertsons Cos. LLC/Safeway, Inc., 4.625%, 1/15/2027 (n) | 270,000 | 279,627 | ||
| Albertsons Cos. LLC/Safeway, Inc., 5.875%, 2/15/2028 (n) | 15,000 | 15,975 | ||
| $318,289 | ||||
| Telecommunications - Wireless – 6.9% | ||||
| Altice France S.A., 7.375%, 5/01/2026 (n) | $ | 200,000 | $208,640 | |
| Altice France S.A., 8.125%, 2/01/2027 (n) | 200,000 | 218,002 | ||
| Altice France S.A., 5.5%, 1/15/2028 (n) | 200,000 | 204,022 | ||
| Altice France S.A., 6%, 2/15/2028 (n) | 200,000 | 195,750 | ||
8
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Telecommunications - Wireless – continued | ||||
| Digicel International Finance Ltd., 8.75%, 5/25/2024 (n) | $ | 200,000 | $208,000 | |
| SBA Communications Corp., 4.875%, 9/01/2024 | 220,000 | 225,654 | ||
| SBA Communications Corp., 3.875%, 2/15/2027 | 161,000 | 166,881 | ||
| SBA Communications Corp., 3.125%, 2/01/2029 (n) | 145,000 | 141,687 | ||
| Sprint Capital Corp., 6.875%, 11/15/2028 | 295,000 | 373,175 | ||
| Sprint Corp., 7.125%, 6/15/2024 | 75,000 | 86,359 | ||
| Sprint Corp., 7.625%, 3/01/2026 | 360,000 | 441,709 | ||
| T-Mobile USA, Inc., 6.5%, 1/15/2026 | 130,000 | 134,063 | ||
| T-Mobile USA, Inc., 2.25%, 2/15/2026 | 105,000 | 104,596 | ||
| T-Mobile USA, Inc., 5.375%, 4/15/2027 | 310,000 | 328,212 | ||
| T-Mobile USA, Inc., 2.625%, 2/15/2029 | 220,000 | 215,325 | ||
| $3,252,075 | ||||
| Tobacco – 0.5% | ||||
| Vector Group Ltd., 10.5%, 11/01/2026 (n) | $ | 105,000 | $113,400 | |
| Vector Group Ltd., 5.75%, 2/01/2029 (n) | 125,000 | 129,531 | ||
| $242,931 | ||||
| Utilities - Electric Power – 3.3% | ||||
| Calpine Corp., 4.5%, 2/15/2028 (n) | $ | 135,000 | $138,712 | |
| Calpine Corp., 5.125%, 3/15/2028 (n) | 150,000 | 150,750 | ||
| Clearway Energy Operating LLC, 5.75%, 10/15/2025 | 450,000 | 470,497 | ||
| Clearway Energy Operating LLC, 4.75%, 3/15/2028 (n) | 90,000 | 96,188 | ||
| NextEra Energy Operating Co., 4.25%, 9/15/2024 (n) | 29,000 | 30,740 | ||
| NextEra Energy Operating Co., 4.5%, 9/15/2027 (n) | 120,000 | 134,064 | ||
| NextEra Energy, Inc., 4.25%, 7/15/2024 (n) | 130,000 | 137,475 | ||
| TerraForm Global Operating LLC, 6.125%, 3/01/2026 (n) | 120,000 | 123,271 | ||
| TerraForm Power Operating Co., 5%, 1/31/2028 (n) | 245,000 | 270,725 | ||
| $1,552,422 | ||||
| Total Bonds | $63,590,426 | |||
| Common Stocks – 1.6% | ||||
| Construction – 0.0% | ||||
| ICA Tenedora, S.A. de C.V. (a) | 11,385 | $23,456 | ||
| Oil Services – 0.1% | ||||
| LTRI Holdings LP (a)(u) | 200 | $56,504 | ||
| Special Products & Services – 1.5% | ||||
| iShares iBoxx $ High Yield Corporate Bond ETF | 8,000 | $691,520 | ||
| Total Common Stocks | $771,480 | |||
| Floating Rate Loans (r) – 0.8% | ||||
| Broadcasting – 0.1% | ||||
| Nexstar Broadcasting, Inc., Term Loan B4, 2.872%, 9/18/2026 | $ | 55,216 | $55,231 | |
| Cable TV – 0.2% | ||||
| CSC Holdings LLC, Term Loan B5, 2.611%, 4/15/2027 | $ | 63,360 | $63,152 | |
| Chemicals – 0.3% | ||||
| Axalta Coating Systems U.S. Holdings, Inc., Term Loan B3, 2.004%, 6/01/2024 | $ | 52,580 | $52,486 | |
| Element Solutions, Inc., Term Loan B1, 2.114%, 1/31/2026 | 63,200 | 63,121 | ||
| $115,607 | ||||
| Computer Software - Systems – 0.1% | ||||
| SS&C Technologies, Inc., Term Loan B5, 1.865%, 4/16/2025 | $ | 63,176 | $63,011 | |
9
Portfolio of Investments (unaudited) –
continued
| Issuer | Shares/Par | Value ($) | ||
| Floating Rate Loans (r) – continued | ||||
| Pharmaceuticals – 0.1% | ||||
| Bausch Health Companies, Inc., Term Loan B, 2.865%, 11/27/2025 | $ | 54,857 | $54,814 | |
| Total Floating Rate Loans | $351,815 | |||
| Strike Price | First Exercise | |||
| Warrants – 0.0% | ||||
| Forest & Paper Products – 0.0% | ||||
| Appvion Holdings Corp. - Tranche A (1 share for 1 warrant, Expiration 6/13/23) (a) | $27.17 | 8/24/18 | 84 | $0 |
| Appvion Holdings Corp. - Tranche B (1 share for 1 warrant, Expiration 6/13/23) (a) | 31.25 | 8/24/18 | 84 | 0 |
| Total Warrants | $0 | |||
| Investment Companies (h) – 1.9% | ||||
| Money Market Funds – 1.9% | ||||
| MFS Institutional Money Market Portfolio, 0.07% (v) | 906,466 | $906,466 | ||
| Other Assets, Less Liabilities – (38.7)% | (18,300,256) | |||
| Net Assets – 100.0% | $47,319,931 | |||
| (a) | Non-income producing security. | |||
| (d) | In default. | |||
| (h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $906,466 and $64,713,721, respectively. | |||
| (n) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $47,941,688, representing 101.3% of net assets. | |||
| (p) | Payment-in-kind (PIK) security for which interest income may be received in additional securities and/or cash. | |||
| (r) | The remaining maturities of floating rate loans may be less than the 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. The interest rate shown represents the weighted average of the floating interest rates on settled contracts within the loan facility at period end, unless otherwise indicated. The floating interest rates on settled contracts are determined periodically by reference to a base lending rate and a spread. | |||
| (u) | The security was valued using significant unobservable inputs and is considered level 3 under the fair value hierarchy. | |||
| (v) | Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end. |
| The following abbreviations are used in this report and are defined: | |
| ETF | Exchange-Traded Fund |
| FLR | Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted. |
| REIT | Real Estate Investment Trust |
See attached supplemental
information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.
10
Supplemental Information
2/28/21 (unaudited)
The fund is an investment company
and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment
Companies.
(1) Investment Valuations
Equity securities, including
restricted equity securities, are generally valued at the last sale or official closing price on their primary market or exchange as provided by a third-party pricing service. Equity securities, for which there were
no sales reported that day, are generally valued at the last quoted daily bid quotation on their primary market or exchange as provided by a third-party pricing service. Debt instruments and floating rate loans,
including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less
may be valued at amortized cost, which approximates market value. 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. In determining values, third-party pricing services can utilize both transaction data and market information
such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, 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 halt of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is
principally traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost
and investment characteristics of the security; the business and financial 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. The following is a summary of the levels used as of February 28, 2021 in valuing the fund's assets or liabilities:
| Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
| Equity Securities: | ||||
| United States | $691,520 | $0 | $56,504 | $748,024 |
| Mexico | — | 23,456 | — | 23,456 |
| Municipal Bonds | — | 107,625 | — | 107,625 |
| U.S. Corporate Bonds | — | 54,348,498 | — | 54,348,498 |
| Foreign Bonds | — | 9,134,303 | — | 9,134,303 |
| Floating Rate Loans | — | 351,815 | — | 351,815 |
| Mutual Funds | 906,466 | — | — | 906,466 |
| Total | $1,597,986 | $63,965,697 | $56,504 | $65,620,187 |
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
11
Supplemental Information (unaudited) –
continued
presents the activity of level 3 securities held at
the beginning and the end of the period.
| Equity Securities | |
| Balance as of 11/30/20 | $56,504 |
| Change in unrealized appreciation or depreciation | 0 |
| Balance as of 2/28/21 | $56,504 |
The net change in unrealized
appreciation or depreciation from investments held as level 3 at February 28, 2021 is $0. At February 28, 2021, the fund held one level 3 security.
(2) Investments in Affiliated
Issuers
An affiliated issuer may be
considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the following were affiliated issuers:
| Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
| MFS Institutional Money Market Portfolio | $1,867,963 | $4,911,256 | $5,872,753 | $38 | $(38) | $906,466 |
| Affiliated Issuers | Dividend Income | Capital Gain Distributions |
| MFS Institutional Money Market Portfolio | $8,473 | $— |
(3) Impacts of COVID-19
The pandemic related to the global
spread of novel coronavirus disease (COVID-19), which was first detected in December 2019, has resulted in significant disruptions to global business activity and the global economy, as well as the economies of
individual countries, the financial performance of individual companies and sectors, and the securities and commodities markets in general. Multiple surges in cases globally, the availability and widespread adoption
of vaccines, and the emergence of variant strains of the virus continue to create uncertainty as to the future and long-term impacts resulting from the pandemic including impacts to the prices and liquidity of the
fund's investments and the fund's performance.
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