Quarterly Report
February 28, 2022
MFS® Intermediate High
Income Fund
Income Fund
CIH-Q1
Portfolio of Investments
2/28/22 (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 – 135.4% | ||||
| Aerospace & Defense – 3.1% | ||||
| Bombardier, Inc., 7.5%, 3/15/2025 (n) | $ | 124,000 | $125,240 | |
| Bombardier, Inc., 7.125%, 6/15/2026 (n) | 127,000 | 126,841 | ||
| F-Brasile S.p.A./F-Brasile U.S. LLC, 7.375%, 8/15/2026 (n) | 200,000 | 193,000 | ||
| Moog, Inc., 4.25%, 12/15/2027 (n) | 241,000 | 236,269 | ||
| TransDigm, Inc., 6.25%, 3/15/2026 (n) | 200,000 | 205,750 | ||
| TransDigm, Inc., 6.375%, 6/15/2026 | 185,000 | 188,602 | ||
| TransDigm, Inc., 5.5%, 11/15/2027 | 130,000 | 129,487 | ||
| TransDigm, Inc., 4.625%, 1/15/2029 | 147,000 | 138,725 | ||
| $1,343,914 | ||||
| Automotive – 4.0% | ||||
| Clarios Global LP/Clarios US Finance Cois, 8.5%, 5/15/2027 (n) | $ | 300,000 | $312,750 | |
| Dana, Inc., 5.375%, 11/15/2027 | 143,000 | 145,860 | ||
| Dana, Inc., 5.625%, 6/15/2028 | 47,000 | 48,058 | ||
| Dana, Inc., 4.25%, 9/01/2030 | 95,000 | 90,576 | ||
| Dornoch Debt Merger Sub, Inc., 6.625%, 10/15/2029 (n) | 120,000 | 111,300 | ||
| Ford Motor Co., 5.113%, 5/03/2029 | 210,000 | 221,380 | ||
| Ford Motor Co., 4.75%, 1/15/2043 | 155,000 | 149,962 | ||
| Ford Motor Credit Co. LLC, 4.134%, 8/04/2025 | 200,000 | 202,250 | ||
| IAA Spinco, Inc., 5.5%, 6/15/2027 (n) | 200,000 | 202,750 | ||
| Real Hero Merger Sub 2, Inc., 6.25%, 2/01/2029 (n) | 130,000 | 122,525 | ||
| Wheel Pros, Inc., 6.5%, 5/15/2029 (n) | 120,000 | 109,800 | ||
| $1,717,211 | ||||
| Broadcasting – 4.0% | ||||
| Advantage Sales & Marketing, Inc., 6.5%, 11/15/2028 (n) | $ | 199,000 | $200,389 | |
| Gray Escrow II, Inc., 5.375%, 11/15/2031 (n) | 305,000 | 293,611 | ||
| iHeartCommunications, Inc., 8.375%, 5/01/2027 | 175,000 | 182,296 | ||
| Scripps Escrow II, Inc., 5.875%, 7/15/2027 (n) | 215,000 | 214,582 | ||
| Summer (BC) Bidco B LLC, 5.5%, 10/31/2026 (n) | 200,000 | 193,000 | ||
| Summer (BC) Holdco S.à r.l., “A”, 9.25%, 10/31/2027 | EUR | 90,105 | 104,449 | |
| Univision Communications, Inc., 4.5%, 5/01/2029 (n) | $ | 220,000 | 210,581 | |
| WMG Acquisition Corp., 3.875%, 7/15/2030 (n) | 340,000 | 326,400 | ||
| $1,725,308 | ||||
| Brokerage & Asset Managers – 2.3% | ||||
| Aretec Escrow Issuer, Inc., 7.5%, 4/01/2029 (n) | $ | 110,000 | $109,017 | |
| LPL Holdings, Inc., 4.625%, 11/15/2027 (n) | 265,000 | 263,675 | ||
| LPL Holdings, Inc., 4%, 3/15/2029 (n) | 191,000 | 185,509 | ||
| LPL Holdings, Inc., 4.375%, 5/15/2031 (n) | 125,000 | 121,875 | ||
| NFP Corp., 4.875%, 8/15/2028 (n) | 155,000 | 149,548 | ||
| NFP Corp., 6.875%, 8/15/2028 (n) | 153,000 | 142,252 | ||
| $971,876 | ||||
| Building – 5.3% | ||||
| ABC Supply Co., Inc., 4%, 1/15/2028 (n) | $ | 405,000 | $395,887 | |
| Foundation Building Materials LLC, 6%, 3/01/2029 (n) | 50,000 | 46,500 | ||
| GYP Holding III Corp., 4.625%, 5/01/2029 (n) | 240,000 | 223,920 | ||
| Interface, Inc., 5.5%, 12/01/2028 (n) | 205,000 | 206,025 | ||
| MIWD Holdco II LLC/MIWD Finance Co., 5.5%, 2/01/2030 (n) | 115,000 | 109,648 | ||
| New Enterprise Stone & Lime Co., Inc., 9.75%, 7/15/2028 (n) | 138,000 | 142,485 | ||
| Park River Holdings, Inc., 5.625%, 2/01/2029 (n) | 65,000 | 56,063 | ||
| Patrick Industries, Inc., 7.5%, 10/15/2027 (n) | 200,000 | 208,183 | ||
| SRM Escrow Issuer LLC, 6%, 11/01/2028 (n) | 190,000 | 189,930 | ||
| SRS Distribution, Inc., 6.125%, 7/01/2029 (n) | 190,000 | 181,537 | ||
| Standard Industries, Inc., 4.75%, 1/15/2028 (n) | 90,000 | 88,312 | ||
1
Portfolio of Investments (unaudited) – continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Building – continued | ||||
| Standard Industries, Inc., 4.375%, 7/15/2030 (n) | $ | 241,000 | $228,174 | |
| Standard Industries, Inc., 3.375%, 1/15/2031 (n) | 40,000 | 35,400 | ||
| White Cap Buyer LLC, 6.875%, 10/15/2028 (n) | 140,000 | 139,300 | ||
| $2,251,364 | ||||
| Business Services – 3.1% | ||||
| Austin BidCo, Inc., 7.125%, 12/15/2028 (n) | $ | 115,000 | $112,413 | |
| HealthEquity, Inc., 4.5%, 10/01/2029 (n) | 185,000 | 176,092 | ||
| Iron Mountain, Inc., 5.25%, 3/15/2028 (n) | 100,000 | 100,026 | ||
| Iron Mountain, Inc., REIT, 4.875%, 9/15/2027 (n) | 140,000 | 140,171 | ||
| Nielsen Finance LLC, 4.5%, 7/15/2029 (n) | 205,000 | 184,171 | ||
| Paysafe Finance PLC, 4%, 6/15/2029 (z) | 185,000 | 160,987 | ||
| Switch Ltd., 3.75%, 9/15/2028 (n) | 250,000 | 237,207 | ||
| Switch Ltd., 4.125%, 6/15/2029 (n) | 70,000 | 67,113 | ||
| Verscend Escrow Corp., 9.75%, 8/15/2026 (n) | 150,000 | 156,375 | ||
| $1,334,555 | ||||
| Cable TV – 10.9% | ||||
| CCO Holdings LLC/CCO Holdings Capital Corp., 4.75%, 3/01/2030 (n) | $ | 601,000 | $590,173 | |
| CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 8/15/2030 (n) | 150,000 | 144,462 | ||
| CCO Holdings LLC/CCO Holdings Capital Corp., 4.25%, 2/01/2031 (n) | 240,000 | 224,866 | ||
| CCO Holdings LLC/CCO Holdings Capital Corp., 4.25%, 1/15/2034 (n) | 155,000 | 142,507 | ||
| CSC Holdings LLC, 5.375%, 2/01/2028 (n) | 200,000 | 194,375 | ||
| CSC Holdings LLC, 5.75%, 1/15/2030 (n) | 400,000 | 353,696 | ||
| CSC Holdings LLC, 4.125%, 12/01/2030 (n) | 200,000 | 179,584 | ||
| DISH DBS Corp., 7.75%, 7/01/2026 | 80,000 | 81,015 | ||
| DISH DBS Corp., 5.25%, 12/01/2026 (n) | 150,000 | 147,047 | ||
| DISH DBS Corp., 5.125%, 6/01/2029 | 135,000 | 113,906 | ||
| Intelsat Jackson Holdings S.A., 5.5%, 8/01/2023 (a)(d) | 130,000 | 56,225 | ||
| Intelsat Jackson Holdings S.A., 9.75%, 7/15/2025 (a)(d)(n) | 90,000 | 38,813 | ||
| LCPR Senior Secured Financing DAC, 6.75%, 10/15/2027 (n) | 180,000 | 185,980 | ||
| Sirius XM Holdings, Inc., 3.875%, 9/01/2031 (n) | 230,000 | 211,892 | ||
| Sirius XM Radio, Inc., 4%, 7/15/2028 (n) | 228,000 | 219,165 | ||
| Sirius XM Radio, Inc., 5.5%, 7/01/2029 (n) | 390,000 | 398,775 | ||
| Telenet Finance Luxembourg S.A., 5.5%, 3/01/2028 (n) | 400,000 | 396,000 | ||
| Videotron Ltd., 5.125%, 4/15/2027 (n) | 190,000 | 193,325 | ||
| Virgin Media Finance PLC, 5%, 7/15/2030 (n) | 225,000 | 212,861 | ||
| Virgin Media Vendor Financing Notes IV DAC, 5%, 7/15/2028 (n) | 225,000 | 214,461 | ||
| Ziggo Bond Finance B.V., 5.125%, 2/28/2030 (n) | 400,000 | 373,000 | ||
| $4,672,128 | ||||
| Chemicals – 3.2% | ||||
| Axalta Coating Systems Ltd., 4.75%, 6/15/2027 (n) | $ | 150,000 | $150,375 | |
| Axalta Coating Systems Ltd., 3.375%, 2/15/2029 (n) | 170,000 | 155,125 | ||
| Consolidated Energy Finance S.A., 5.625%, 10/15/2028 (n) | 188,000 | 173,768 | ||
| Element Solutions, Inc., 3.875%, 9/01/2028 (n) | 213,000 | 202,018 | ||
| Herens Holdco S.à r.l., 4.75%, 5/15/2028 (n) | 200,000 | 187,000 | ||
| Ingevity Corp., 3.875%, 11/01/2028 (n) | 240,000 | 226,188 | ||
| LSF11 A5 HoldCo LLC, 6.625%, 10/15/2029 (n) | 110,000 | 104,639 | ||
| S.P.C.M. S.A., 3.125%, 3/15/2027 (n) | 200,000 | 189,382 | ||
| $1,388,495 | ||||
| Computer Software – 1.8% | ||||
| Camelot Finance S.A., 4.5%, 11/01/2026 (n) | $ | 120,000 | $120,114 | |
| Clarivate Science Holdings Corp., 3.875%, 7/01/2028 (n) | 45,000 | 42,525 | ||
| Clarivate Science Holdings Corp., 4.875%, 7/01/2029 (n) | 215,000 | 202,457 | ||
| Dun & Bradstreet Corp., 5%, 12/15/2029 (n) | 150,000 | 144,000 | ||
| PTC, Inc., 3.625%, 2/15/2025 (n) | 160,000 | 159,200 | ||
2
Portfolio of Investments (unaudited) – continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Computer Software – continued | ||||
| PTC, Inc., 4%, 2/15/2028 (n) | $ | 95,000 | $92,862 | |
| $761,158 | ||||
| Computer Software - Systems – 2.2% | ||||
| Fair Isaac Corp., 5.25%, 5/15/2026 (n) | $ | 385,000 | $408,581 | |
| Fair Isaac Corp., 4%, 6/15/2028 (n) | 36,000 | 35,325 | ||
| SS&C Technologies Holdings, Inc., 5.5%, 9/30/2027 (n) | 250,000 | 256,940 | ||
| Viavi Solutions, Inc., 3.75%, 10/01/2029 (n) | 235,000 | 222,736 | ||
| $923,582 | ||||
| Conglomerates – 4.3% | ||||
| Amsted Industries Co., 5.625%, 7/01/2027 (n) | $ | 255,000 | $257,550 | |
| BWX Technologies, Inc., 4.125%, 6/30/2028 (n) | 58,000 | 56,260 | ||
| BWX Technologies, Inc., 4.125%, 4/15/2029 (n) | 315,000 | 305,550 | ||
| Gates Global LLC, 6.25%, 1/15/2026 (n) | 165,000 | 168,725 | ||
| Granite Holdings U.S. Acquisition Co., 11%, 10/01/2027 (n) | 135,000 | 143,775 | ||
| Griffon Corp., 5.75%, 3/01/2028 | 231,000 | 230,105 | ||
| Madison IAQ LLC, 5.875%, 6/30/2029 (n) | 184,000 | 166,980 | ||
| Stevens Holding Co., Inc., 6.125%, 10/01/2026 (n) | 140,000 | 144,550 | ||
| TriMas Corp., 4.125%, 4/15/2029 (n) | 380,000 | 357,622 | ||
| $1,831,117 | ||||
| Construction – 1.9% | ||||
| Empire Communities Corp., 7%, 12/15/2025 (n) | $ | 145,000 | $143,550 | |
| Mattamy Group Corp., 5.25%, 12/15/2027 (n) | 95,000 | 95,356 | ||
| Mattamy Group Corp., 4.625%, 3/01/2030 (n) | 155,000 | 145,700 | ||
| Taylor Morrison Communities, Inc., 5.75%, 1/15/2028 (n) | 165,000 | 172,013 | ||
| Taylor Morrison Communities, Inc., 5.125%, 8/01/2030 (n) | 100,000 | 99,664 | ||
| Weekley Homes LLC/Weekley Finance Corp., 4.875%, 9/15/2028 (n) | 181,000 | 172,169 | ||
| $828,452 | ||||
| Consumer Products – 1.6% | ||||
| Mattel, Inc., 3.375%, 4/01/2026 (n) | $ | 147,000 | $145,986 | |
| Mattel, Inc., 5.875%, 12/15/2027 (n) | 109,000 | 115,540 | ||
| Mattel, Inc., 5.45%, 11/01/2041 | 55,000 | 60,736 | ||
| Prestige Consumer Healthcare, Inc., 5.125%, 1/15/2028 (n) | 175,000 | 175,219 | ||
| Prestige Consumer Healthcare, Inc., 3.75%, 4/01/2031 (n) | 70,000 | 64,501 | ||
| SWF Escrow Issuer Corp., 6.5%, 10/01/2029 (n) | 155,000 | 138,939 | ||
| $700,921 | ||||
| Consumer Services – 5.2% | ||||
| Allied Universal Holdco LLC, 6.625%, 7/15/2026 (n) | $ | 59,000 | $60,434 | |
| Allied Universal Holdco LLC, 9.75%, 7/15/2027 (n) | 265,000 | 276,925 | ||
| ANGI Group LLC, 3.875%, 8/15/2028 (n) | 227,000 | 201,462 | ||
| Arches Buyer, Inc., 6.125%, 12/01/2028 (n) | 175,000 | 164,500 | ||
| GoDaddy, Inc., 3.5%, 3/01/2029 (n) | 343,000 | 324,879 | ||
| GW B-CR Security Corp., 9.5%, 11/01/2027 (n) | 131,000 | 135,074 | ||
| Match Group Holdings II LLC, 3.625%, 10/01/2031 (n) | 15,000 | 13,988 | ||
| Match Group, Inc., 5%, 12/15/2027 (n) | 185,000 | 185,000 | ||
| Match Group, Inc., 4.625%, 6/01/2028 (n) | 205,000 | 205,617 | ||
| Match Group, Inc., 4.125%, 8/01/2030 (n) | 65,000 | 62,919 | ||
| Realogy Group LLC/Realogy Co-Issuer Corp., 5.75%, 1/15/2029 (n) | 90,000 | 88,987 | ||
| Realogy Group LLC/Realogy Co-Issuer Corp., 5.25%, 4/15/2030 (n) | 115,000 | 109,595 | ||
| TriNet Group, Inc., 3.5%, 3/01/2029 (n) | 263,000 | 247,412 | ||
| WASH Multifamily Acquisition, Inc., 5.75%, 4/15/2026 (n) | 134,000 | 135,071 | ||
| $2,211,863 | ||||
3
Portfolio of Investments (unaudited) – continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Containers – 2.8% | ||||
| Ardagh Metal Packaging, 4%, 9/01/2029 (n) | $ | 200,000 | $187,560 | |
| Ardagh Packaging Finance PLC/Ardagh MP Holdings USA, Inc., 5.25%, 8/15/2027 (n) | 255,000 | 242,394 | ||
| Can-Pack S.A., 3.875%, 11/15/2029 (n) | 275,000 | 252,312 | ||
| Crown Americas LLC/Crown Americas Capital Corp. V, 4.25%, 9/30/2026 | 250,000 | 256,186 | ||
| Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 2/01/2026 | 45,000 | 45,774 | ||
| Trivium Packaging Finance B.V., 8.5%, 8/15/2027 (n) | 200,000 | 205,136 | ||
| $1,189,362 | ||||
| Electrical Equipment – 0.6% | ||||
| CommScope Technologies LLC, 5%, 3/15/2027 (n) | $ | 285,000 | $254,123 | |
| Electronics – 2.6% | ||||
| Diebold Nixdorf, Inc., 8.5%, 4/15/2024 | $ | 65,000 | $64,025 | |
| Diebold Nixdorf, Inc., 9.375%, 7/15/2025 (n) | 106,000 | 109,739 | ||
| Entegris, Inc., 4.375%, 4/15/2028 (n) | 75,000 | 73,500 | ||
| Entegris, Inc., 3.625%, 5/01/2029 (n) | 95,000 | 89,063 | ||
| Sensata Technologies B.V., 5.625%, 11/01/2024 (n) | 130,000 | 136,963 | ||
| Sensata Technologies B.V., 5%, 10/01/2025 (n) | 285,000 | 294,717 | ||
| Sensata Technologies, Inc., 4.375%, 2/15/2030 (n) | 125,000 | 121,562 | ||
| Synaptics, Inc., 4%, 6/15/2029 (n) | 215,000 | 207,262 | ||
| $1,096,831 | ||||
| Energy - Independent – 5.5% | ||||
| Callon Petroleum Co., 6.125%, 10/01/2024 | $ | 90,000 | $89,663 | |
| Callon Petroleum Co., 8%, 8/01/2028 (n) | 105,000 | 109,200 | ||
| CNX Resources Corp., 6%, 1/15/2029 (n) | 157,000 | 160,328 | ||
| Colgate Energy Partners III LLC, 5.875%, 7/01/2029 (n) | 75,000 | 77,196 | ||
| Comstock Resources, Inc., 6.75%, 3/01/2029 (n) | 155,000 | 157,720 | ||
| CrownRock LP/CrownRock Finance, Inc., “F”, 5%, 5/01/2029 (n) | 120,000 | 122,100 | ||
| Encino Acquisition Partners Holdings LLC, 8.5%, 5/01/2028 (n) | 100,000 | 101,250 | ||
| EQT Corp., 5%, 1/15/2029 | 158,000 | 166,690 | ||
| Laredo Petroleum, Inc., 10.125%, 1/15/2028 | 35,000 | 37,013 | ||
| Moss Creek Resources Holdings, Inc., 7.5%, 1/15/2026 (n) | 35,000 | 30,975 | ||
| Occidental Petroleum Corp., 5.875%, 9/01/2025 | 165,000 | 176,962 | ||
| Occidental Petroleum Corp., 5.5%, 12/01/2025 | 130,000 | 139,711 | ||
| Occidental Petroleum Corp., 6.625%, 9/01/2030 | 278,000 | 323,499 | ||
| Occidental Petroleum Corp., 6.45%, 9/15/2036 | 80,000 | 94,200 | ||
| Occidental Petroleum Corp., 6.6%, 3/15/2046 | 115,000 | 137,425 | ||
| SM Energy Co., 5.625%, 6/01/2025 | 95,000 | 94,541 | ||
| SM Energy Co., 6.5%, 7/15/2028 | 100,000 | 102,500 | ||
| Southwestern Energy Co., 5.95%, 1/23/2025 | 13,300 | 13,865 | ||
| Southwestern Energy Co., 8.375%, 9/15/2028 | 90,000 | 98,212 | ||
| Southwestern Energy Co., 5.375%, 3/15/2030 | 95,000 | 98,088 | ||
| $2,331,138 | ||||
| Entertainment – 4.8% | ||||
| AMC Entertainment Holdings, Inc., 10%, (10% cash or 12% PIK) 6/15/2026 (n)(p) | $ | 65,000 | $60,044 | |
| Carnival Corp. PLC, 7.625%, 3/01/2026 (n) | 385,000 | 395,776 | ||
| Carnival Corp. PLC, 5.75%, 3/01/2027 (n) | 150,000 | 146,101 | ||
| Carnival Corp. PLC, 6%, 5/01/2029 (n) | 45,000 | 43,692 | ||
| Life Time, Inc., 5.75%, 1/15/2026 (n) | 150,000 | 149,250 | ||
| Live Nation Entertainment, Inc., 5.625%, 3/15/2026 (n) | 218,000 | 221,815 | ||
| Motion Bondco DAC, 6.625%, 11/15/2027 (n) | 200,000 | 194,500 | ||
| NCL Corp. Ltd., 3.625%, 12/15/2024 (n) | 130,000 | 121,909 | ||
| NCL Corp. Ltd., 5.875%, 3/15/2026 (n) | 115,000 | 110,688 | ||
| Royal Caribbean Cruises Ltd., 5.375%, 7/15/2027 (n) | 75,000 | 73,677 | ||
| Royal Caribbean Cruises Ltd., 5.5%, 4/01/2028 (n) | 225,000 | 220,520 | ||
| SeaWorld Parks & Entertainment, 5.25%, 8/15/2029 (n) | 250,000 | 243,187 | ||
4
Portfolio of Investments (unaudited) – continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Entertainment – continued | ||||
| Viking Cruises Ltd. Co., 5.875%, 9/15/2027 (n) | $ | 95,000 | $88,587 | |
| $2,069,746 | ||||
| Financial Institutions – 4.6% | ||||
| Avation Capital S.A., 8.25%, (8.25% cash or 9% PIK) 10/31/2026 (n)(p) | $ | 203,202 | $176,786 | |
| Credit Acceptance Corp., 5.125%, 12/31/2024 (n) | 210,000 | 212,732 | ||
| Freedom Mortgage Corp., 7.625%, 5/01/2026 (n) | 150,000 | 144,000 | ||
| Global Aircraft Leasing Co. Ltd., 6.5% (6.5% cash or 7.25% PIK), 9/15/2024 (n)(p) | 448,020 | 425,619 | ||
| Howard Hughes Corp., 4.125%, 2/01/2029 (n) | 271,000 | 256,434 | ||
| Nationstar Mortgage Holdings, Inc., 6%, 1/15/2027 (n) | 200,000 | 203,000 | ||
| Nationstar Mortgage Holdings, Inc., 5.75%, 11/15/2031 (n) | 80,000 | 77,400 | ||
| OneMain Finance Corp., 6.875%, 3/15/2025 | 95,000 | 101,374 | ||
| OneMain Finance Corp., 8.875%, 6/01/2025 | 99,000 | 104,445 | ||
| OneMain Finance Corp., 7.125%, 3/15/2026 | 100,000 | 108,400 | ||
| Rocket Mortgage Co-Issuer, Inc., 3.625%, 3/01/2029 (n) | 165,000 | 154,502 | ||
| $1,964,692 | ||||
| Food & Beverages – 4.4% | ||||
| Aramark Services, Inc., 6.375%, 5/01/2025 (n) | $ | 270,000 | $279,585 | |
| Aramark Services, Inc., 5%, 2/01/2028 (n) | 60,000 | 60,107 | ||
| JBS USA Lux S.A./JBS USA Finance, Inc., 6.75%, 2/15/2028 (n) | 169,000 | 177,874 | ||
| Lamb Weston Holdings, Inc., 4.125%, 1/31/2030 (n) | 315,000 | 304,763 | ||
| Performance Food Group Co., 5.5%, 10/15/2027 (n) | 210,000 | 213,675 | ||
| Post Holdings, Inc., 5.625%, 1/15/2028 (n) | 184,000 | 184,690 | ||
| Post Holdings, Inc., 4.625%, 4/15/2030 (n) | 245,000 | 230,658 | ||
| Primo Water Holding, Inc., 4.375%, 4/30/2029 (n) | 225,000 | 209,556 | ||
| U.S. Foods Holding Corp., 4.75%, 2/15/2029 (n) | 230,000 | 227,516 | ||
| $1,888,424 | ||||
| Gaming & Lodging – 9.7% | ||||
| Boyd Gaming Corp., 4.75%, 12/01/2027 | $ | 190,000 | $190,746 | |
| Boyd Gaming Corp., 4.75%, 6/15/2031 (n) | 75,000 | 73,688 | ||
| Caesars Entertainment, Inc., 4.625%, 10/15/2029 (n) | 150,000 | 142,312 | ||
| Caesars Resort Collection LLC/CRC Finco, Inc., 5.75%, 7/01/2025 (n) | 131,000 | 134,332 | ||
| Caesars Resort Collection LLC/CRC Finco, Inc., 8.125%, 7/01/2027 (n) | 162,000 | 174,633 | ||
| CCM Merger, Inc., 6.375%, 5/01/2026 (n) | 118,000 | 120,694 | ||
| Hilton Domestic Operating Co., Inc., 3.75%, 5/01/2029 (n) | 268,000 | 258,620 | ||
| Hilton Domestic Operating Co., Inc., 3.625%, 2/15/2032 (n) | 191,000 | 181,565 | ||
| International Game Technology PLC, 4.125%, 4/15/2026 (n) | 200,000 | 197,000 | ||
| International Game Technology PLC, 6.25%, 1/15/2027 (n) | 200,000 | 212,000 | ||
| Marriott Ownership Resorts, Inc., 4.5%, 6/15/2029 (n) | 185,000 | 175,287 | ||
| MGM China Holdings Ltd., 5.875%, 5/15/2026 (n) | 200,000 | 190,750 | ||
| MGM Growth Properties LLC, 4.625%, 6/15/2025 (n) | 185,000 | 190,550 | ||
| MGM Growth Properties LLC, 5.75%, 2/01/2027 | 75,000 | 81,187 | ||
| MGM Growth Properties LLC, 3.875%, 2/15/2029 (n) | 111,000 | 111,555 | ||
| MGM Resorts International Co., 4.75%, 10/15/2028 | 152,000 | 151,336 | ||
| Scientific Games Corp., 8.625%, 7/01/2025 (n) | 45,000 | 47,700 | ||
| Scientific Games Corp., 8.25%, 3/15/2026 (n) | 120,000 | 125,340 | ||
| Scientific Games Holdings LP/Scientific Games US FinCo, Inc., 6.625%, 3/01/2030 (n) | 108,000 | 107,269 | ||
| Scientific Games International, Inc., 7%, 5/15/2028 (n) | 115,000 | 118,450 | ||
| VICI Properties LP, REIT, 4.25%, 12/01/2026 (n) | 135,000 | 136,350 | ||
| VICI Properties LP, REIT, 3.75%, 2/15/2027 (n) | 200,000 | 198,500 | ||
| VICI Properties, Inc., 4.125%, 8/15/2030 (n) | 45,000 | 44,663 | ||
| Wyndham Hotels & Resorts, Inc., 4.375%, 8/15/2028 (n) | 284,000 | 279,740 | ||
| Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 5.25%, 5/15/2027 (n) | 95,000 | 94,050 | ||
| Wynn Macau Ltd., 5.5%, 1/15/2026 (n) | 105,000 | 95,287 | ||
| Wynn Macau Ltd., 5.625%, 8/26/2028 (n) | 200,000 | 174,113 | ||
| Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., 5.125%, 10/01/2029 (n) | 150,000 | 144,375 | ||
| $4,152,092 | ||||
5
Portfolio of Investments (unaudited) – continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Industrial – 1.3% | ||||
| APi Escrow Corp., 4.75%, 10/15/2029 (n) | $ | 215,000 | $203,175 | |
| Dycom Industries, Inc., 4.5%, 4/15/2029 (n) | 125,000 | 120,313 | ||
| Williams Scotsman International, Inc., 4.625%, 8/15/2028 (n) | 240,000 | 236,700 | ||
| $560,188 | ||||
| Insurance - Property & Casualty – 1.7% | ||||
| Alliant Holdings Intermediate LLC, 6.75%, 10/15/2027 (n) | $ | 285,000 | $278,588 | |
| AssuredPartners, Inc., 5.625%, 1/15/2029 (n) | 120,000 | 110,376 | ||
| GTCR (AP) Finance, Inc., 8%, 5/15/2027 (n) | 65,000 | 65,000 | ||
| Hub International Ltd., 5.625%, 12/01/2029 (n) | 131,000 | 124,450 | ||
| Ryan Specialty Group, 4.375%, 2/01/2030 (n) | 145,000 | 139,497 | ||
| $717,911 | ||||
| Machinery & Tools – 1.0% | ||||
| Ritchie Bros. Holdings Ltd., 4.75%, 12/15/2031 (n) | $ | 195,000 | $193,748 | |
| Terex Corp., 5%, 5/15/2029 (n) | 230,000 | 227,753 | ||
| $421,501 | ||||
| Medical & Health Technology & Services – 9.0% | ||||
| 180 Medical, Inc., 3.875%, 10/15/2029 (n) | $ | 200,000 | $192,000 | |
| Avantor Funding, Inc., 4.625%, 7/15/2028 (n) | 255,000 | 258,825 | ||
| Catalent, Inc., 3.125%, 2/15/2029 (n) | 368,000 | 340,860 | ||
| Charles River Laboratories International, Inc., 3.75%, 3/15/2029 (n) | 433,000 | 416,200 | ||
| CHS/Community Health Systems, Inc., 8%, 12/15/2027 (n) | 105,000 | 110,740 | ||
| CHS/Community Health Systems, Inc., 6.125%, 4/01/2030 (n) | 265,000 | 246,450 | ||
| CHS/Community Health Systems, Inc., 5.25%, 5/15/2030 (n) | 45,000 | 43,587 | ||
| DaVita, Inc., 4.625%, 6/01/2030 (n) | 140,000 | 134,225 | ||
| DaVita, Inc., 3.75%, 2/15/2031 (n) | 167,000 | 152,596 | ||
| Encompass Health Corp., 5.125%, 3/15/2023 | 88,000 | 88,220 | ||
| Encompass Health Corp., 5.75%, 9/15/2025 | 30,000 | 30,375 | ||
| HCA, Inc., 5.875%, 2/15/2026 | 275,000 | 297,206 | ||
| IQVIA Holdings, Inc., 5%, 5/15/2027 (n) | 400,000 | 409,172 | ||
| Legacy LifePoint Health LLC, 4.375%, 2/15/2027 (n) | 30,000 | 28,425 | ||
| MPH Acquisition Holdings LLC, 5.5%, 9/01/2028 (n) | 115,000 | 111,556 | ||
| Regional Care/LifePoint Health, Inc., 9.75%, 12/01/2026 (n) | 130,000 | 136,356 | ||
| Syneos Health, Inc., 3.625%, 1/15/2029 (n) | 275,000 | 259,710 | ||
| Tenet Healthcare Corp., 6.125%, 10/01/2028 (n) | 277,000 | 280,601 | ||
| U.S. Renal Care, Inc., 10.625%, 7/15/2027 (n) | 135,000 | 134,325 | ||
| US Acute Care Solutions LLC, 6.375%, 3/01/2026 (n) | 180,000 | 177,300 | ||
| $3,848,729 | ||||
| Medical Equipment – 0.6% | ||||
| Teleflex, Inc., 4.625%, 11/15/2027 | $ | 240,000 | $243,600 | |
| Metals & Mining – 5.4% | ||||
| Baffinland Iron Mines Corp./Baffinland Iron Mines LP, 8.75%, 7/15/2026 (n) | $ | 220,000 | $225,775 | |
| Coeur Mining, Inc., 5.125%, 2/15/2029 (n) | 186,000 | 164,089 | ||
| Compass Minerals International, Inc., 6.75%, 12/01/2027 (n) | 185,000 | 192,095 | ||
| Eldorado Gold Corp., 6.25%, 9/01/2029 (n) | 175,000 | 176,750 | ||
| Ero Copper Corp., 6.5%, 2/15/2030 (n) | 78,000 | 75,378 | ||
| First Quantum Minerals Ltd., 6.875%, 10/15/2027 (n) | 200,000 | 212,544 | ||
| FMG Resources Ltd., 4.375%, 4/01/2031 (n) | 240,000 | 232,872 | ||
| GrafTech Finance, Inc., 4.625%, 12/15/2028 (n) | 166,000 | 161,311 | ||
| Kaiser Aluminum Corp., 4.625%, 3/01/2028 (n) | 330,000 | 311,609 | ||
| Kaiser Aluminum Corp., 4.5%, 6/01/2031 (n) | 125,000 | 112,578 | ||
| Novelis Corp., 3.25%, 11/15/2026 (n) | 103,000 | 97,721 | ||
| Novelis Corp., 4.75%, 1/30/2030 (n) | 200,000 | 195,704 | ||
| Novelis Corp., 3.875%, 8/15/2031 (n) | 93,000 | 85,676 | ||
6
Portfolio of Investments (unaudited) – continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Metals & Mining – continued | ||||
| Petra Diamonds US$ Treasury PLC, 10.5% PIK to 12/31/2022, 10.5% PIK/9.75% Cash to 6/30/2023, 9.75% Cash to 3/08/2026 (n) | $ | 70,628 | $72,040 | |
| $2,316,142 | ||||
| Midstream – 6.2% | ||||
| Cheniere Energy Partners LP, 4.5%, 10/01/2029 | $ | 90,000 | $91,728 | |
| Cheniere Energy Partners LP, 4%, 3/01/2031 | 245,000 | 241,325 | ||
| DT Midstream, Inc., 4.125%, 6/15/2029 (n) | 144,000 | 138,960 | ||
| DT Midstream, Inc., 4.375%, 6/15/2031 (n) | 254,000 | 248,107 | ||
| EQM Midstream Partners LP, 6%, 7/01/2025 (n) | 48,000 | 48,960 | ||
| EQM Midstream Partners LP, 6.5%, 7/01/2027 (n) | 32,000 | 33,468 | ||
| EQM Midstream Partners LP, 5.5%, 7/15/2028 | 400,000 | 392,704 | ||
| EQM Midstream Partners LP, 4.5%, 1/15/2029 (n) | 90,000 | 84,038 | ||
| Genesis Energy LP/Genesis Energy Finance Corp., 6.25%, 5/15/2026 | 82,500 | 79,200 | ||
| Northriver Midstream Finance LP, 5.625%, 2/15/2026 (n) | 95,000 | 95,475 | ||
| Tallgrass Energy Partners LP, 5.5%, 1/15/2028 (n) | 135,000 | 130,106 | ||
| Targa Resources Partners LP/Targa Resources Finance Corp., 6.875%, 1/15/2029 | 260,000 | 282,987 | ||
| Targa Resources Partners LP/Targa Resources Finance Corp., 4.875%, 2/01/2031 | 192,000 | 197,374 | ||
| Targa Resources Partners LP/Targa Resources Finance Corp., 4%, 1/15/2032 | 80,000 | 78,802 | ||
| Venture Global Calcasieu Pass LLC, 3.875%, 8/15/2029 (n) | 150,000 | 146,842 | ||
| Venture Global Calcasieu Pass LLC, 4.125%, 8/15/2031 (n) | 150,000 | 148,500 | ||
| Western Midstream Operating LP, 4.55%, 2/01/2030 | 86,000 | 88,456 | ||
| Western Midstream Operation LP, 4.65%, 7/01/2026 | 65,000 | 67,350 | ||
| Western Midstream Operation LP, 5.5%, 8/15/2048 | 45,000 | 46,144 | ||
| $2,640,526 | ||||
| Municipals – 0.1% | ||||
| Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority Rev. (Cogeneration Facilities - AES Puerto Rico Project), 9.12%, 6/01/2022 | $ | 35,000 | $35,875 | |
| Network & Telecom – 0.5% | ||||
| Iliad Holding S.A.S., 7%, 10/15/2028 (n) | $ | 200,000 | $198,932 | |
| Oil Services – 0.3% | ||||
| Nabors Industries, Inc., 5.75%, 2/01/2025 | $ | 35,000 | $33,530 | |
| Solaris Midstream Holding LLC, 7.625%, 4/01/2026 (n) | 100,000 | 102,500 | ||
| $136,030 | ||||
| Oils – 1.0% | ||||
| Parkland Corp., 4.625%, 5/01/2030 (n) | $ | 260,000 | $246,025 | |
| PBF Holding Co. LLC/PBF Finance Corp., 7.25%, 6/15/2025 | 120,000 | 100,800 | ||
| PBF Holding Co. LLC/PBF Finance Corp., 6%, 2/15/2028 | 100,000 | 73,163 | ||
| $419,988 | ||||
| Personal Computers & Peripherals – 0.8% | ||||
| NCR Corp., 5%, 10/01/2028 (n) | $ | 225,000 | $221,049 | |
| NCR Corp., 5.125%, 4/15/2029 (n) | 115,000 | 113,706 | ||
| $334,755 | ||||
| Pharmaceuticals – 3.6% | ||||
| Bausch Health Companies, Inc., 6.125%, 4/15/2025 (n) | $ | 371,000 | $372,855 | |
| Bausch Health Companies, Inc., 5%, 1/30/2028 (n) | 350,000 | 293,125 | ||
| Bausch Health Companies, Inc., 5%, 2/15/2029 (n) | 95,000 | 76,896 | ||
| Endo Luxembourg Finance Co I S.à r.l., 6.125%, 4/01/2029 (n) | 105,000 | 98,700 | ||
| Jazz Securities DAC, 4.375%, 1/15/2029 (n) | 400,000 | 396,184 | ||
| Organon Finance 1 LLC, 5.125%, 4/30/2031 (n) | 200,000 | 199,654 | ||
| Par Pharmaceutical, Inc., 7.5%, 4/01/2027 (n) | 105,000 | 105,173 | ||
| $1,542,587 | ||||
7
Portfolio of Investments (unaudited) – continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Pollution Control – 1.1% | ||||
| GFL Environmental, Inc., 4%, 8/01/2028 (n) | $ | 180,000 | $167,207 | |
| GFL Environmental, Inc., 4.75%, 6/15/2029 (n) | 60,000 | 56,659 | ||
| GFL Environmental, Inc., 4.375%, 8/15/2029 (n) | 80,000 | 74,253 | ||
| Stericycle, Inc., 3.875%, 1/15/2029 (n) | 178,000 | 165,763 | ||
| $463,882 | ||||
| Precious Metals & Minerals – 0.6% | ||||
| IAMGOLD Corp., 5.75%, 10/15/2028 (n) | $ | 155,000 | $141,450 | |
| Taseko Mines Ltd., 7%, 2/15/2026 (n) | 120,000 | 120,000 | ||
| $261,450 | ||||
| Printing & Publishing – 0.7% | ||||
| Cimpress N.V., 7%, 6/15/2026 (n) | $ | 300,000 | $297,000 | |
| Railroad & Shipping – 0.2% | ||||
| Watco Cos. LLC/Watco Finance Corp., 6.5%, 6/15/2027 (n) | $ | 69,000 | $69,690 | |
| Real Estate - Other – 1.0% | ||||
| Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer, 5.875%, 10/01/2028 (n) | $ | 245,000 | $249,503 | |
| XHR LP, REIT, 4.875%, 6/01/2029 (n) | 180,000 | 175,050 | ||
| $424,553 | ||||
| Restaurants – 0.3% | ||||
| Fertitta Entertainment LLC, 6.75%, 1/15/2030 (n) | $ | 125,000 | $118,992 | |
| Retailers – 1.7% | ||||
| Asbury Automotive Group, Inc., 4.625%, 11/15/2029 (n) | $ | 131,000 | $127,725 | |
| Bath & Body Works, Inc., 5.25%, 2/01/2028 | 420,000 | 437,067 | ||
| Victoria's Secret & Co., 4.625%, 7/15/2029 (n) | 180,000 | 169,200 | ||
| $733,992 | ||||
| Specialty Chemicals – 0.4% | ||||
| Univar Solutions USA, Inc., 5.125%, 12/01/2027 (n) | $ | 186,000 | $189,378 | |
| Specialty Stores – 1.4% | ||||
| Group 1 Automotive, Inc., 4%, 8/15/2028 (n) | $ | 174,000 | $167,693 | |
| Michael Cos., Inc., 5.25%, 5/01/2028 (n) | 100,000 | 93,500 | ||
| Michael Cos., Inc., 7.875%, 5/01/2029 (n) | 125,000 | 109,375 | ||
| Penske Automotive Group Co., 3.75%, 6/15/2029 | 254,000 | 237,172 | ||
| $607,740 | ||||
| Supermarkets – 0.9% | ||||
| Albertsons Cos. LLC/Safeway, Inc., 4.625%, 1/15/2027 (n) | $ | 215,000 | $215,943 | |
| Albertsons Cos. LLC/Safeway, Inc., 3.5%, 3/15/2029 (n) | 175,000 | 162,750 | ||
| $378,693 | ||||
| Telecommunications - Wireless – 3.2% | ||||
| Altice France S.A., 6%, 2/15/2028 (n) | $ | 200,000 | $177,148 | |
| SBA Communications Corp., 3.875%, 2/15/2027 | 176,000 | 175,696 | ||
| SBA Communications Corp., 3.125%, 2/01/2029 | 305,000 | 283,284 | ||
| Sprint Capital Corp., 6.875%, 11/15/2028 | 245,000 | 290,930 | ||
| Sprint Corp., 7.125%, 6/15/2024 | 70,000 | 75,688 | ||
| Sprint Corp., 7.625%, 3/01/2026 | 325,000 | 370,521 | ||
| $1,373,267 | ||||
8
Portfolio of Investments (unaudited) – continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Tobacco – 0.5% | ||||
| Vector Group Ltd., 10.5%, 11/01/2026 (n) | $ | 105,000 | $107,803 | |
| Vector Group Ltd., 5.75%, 2/01/2029 (n) | 105,000 | 96,863 | ||
| $204,666 | ||||
| Utilities - Electric Power – 4.0% | ||||
| Calpine Corp., 4.5%, 2/15/2028 (n) | $ | 228,000 | $222,501 | |
| Calpine Corp., 5.125%, 3/15/2028 (n) | 245,000 | 236,090 | ||
| Clearway Energy Operating LLC, 4.75%, 3/15/2028 (n) | 115,000 | 115,592 | ||
| Clearway Energy Operating LLC, 3.75%, 2/15/2031 (n) | 370,000 | 344,228 | ||
| NextEra Energy, Inc., 4.25%, 7/15/2024 (n) | 92,000 | 93,809 | ||
| NextEra Energy, Inc., 4.25%, 9/15/2024 (n) | 29,000 | 29,217 | ||
| NextEra Energy, Inc., 4.5%, 9/15/2027 (n) | 150,000 | 150,750 | ||
| TerraForm Global Operating LLC, 6.125%, 3/01/2026 (n) | 120,000 | 119,700 | ||
| TerraForm Power Operating LLC, 5%, 1/31/2028 (n) | 275,000 | 275,687 | ||
| TerraForm Power Operating LLC, 4.75%, 1/15/2030 (n) | 110,000 | 107,942 | ||
| $1,695,516 | ||||
| Total Bonds | $57,843,935 | |||
| Common Stocks – 1.7% | ||||
| Construction – 0.0% | ||||
| ICA Tenedora, S.A. de C.V. (a)(u) | 11,385 | $9,450 | ||
| Oil Services – 0.1% | ||||
| LTRI Holdings LP (a)(u) | 200 | $57,518 | ||
| Special Products & Services – 1.6% | ||||
| iShares iBoxx $ High Yield Corporate Bond ETF | 8,000 | $669,360 | ||
| Total Common Stocks | $736,328 | |||
| Strike Price | First Exercise | |||
| Warrants – 0.0% | ||||
| Other Banks & Diversified Financials – 0.0% | ||||
| Avation Capital S.A. (1 share for 1 warrant, Expiration 10/31/26) (a)(u) | GBP 1.14 | 3/16/21 | 3,500 | $715 |
| Investment Companies (h) – 3.8% | ||||
| Money Market Funds – 3.8% | ||||
| MFS Institutional Money Market Portfolio, 0.06% (v) | 1,630,348 | $1,630,348 | ||
| Other Assets, Less Liabilities – (40.9)% | (17,482,194) | |||
| Net Assets – 100.0% | $42,729,132 | |||
| (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 $1,630,348 and $58,580,978, 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 $48,524,277, representing 113.6% of net assets. |
| (p) | Payment-in-kind (PIK) security for which interest income may be received in additional securities and/or cash. |
| (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. |
9
Portfolio of Investments (unaudited) – continued
| (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 |
| Paysafe Finance PLC, 4%, 6/15/2029 | 6/10/21-9/09/21 | $184,161 | $160,987 |
| % of Net assets | 0.4% |
| The following abbreviations are used in this report and are defined: | |
| ETF | Exchange-Traded Fund |
| REIT | Real Estate Investment Trust |
| Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below: | |
| EUR | Euro |
| GBP | British Pound |
| Derivative Contracts at 2/28/22 | ||||||
| Forward Foreign Currency Exchange Contracts | ||||||
| Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
| Asset Derivatives | ||||||
| USD | 113,675 | EUR | 99,766 | JPMorgan Chase Bank N.A. | 4/08/2022 | $1,644 |
| Futures Contracts | ||||||
| Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
| Asset Derivatives | ||||||
| Interest Rate Futures | ||||||
| U.S. Treasury Bond | Long | USD | 6 | $940,125 | June – 2022 | $15,922 |
| U.S. Treasury Ultra Bond | Long | USD | 1 | 185,938 | June – 2022 | 2,099 |
| $18,021 | ||||||
| Liability Derivatives | ||||||
| Interest Rate Futures | ||||||
| U.S. Treasury Note 10 yr | Short | USD | 15 | $1,911,563 | June – 2022 | $(18,336) |
At February 28, 2022, the fund had cash collateral of $11,900 to cover any collateral or margin obligations for certain derivative contracts.
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
2/28/22 (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. Futures contracts are generally valued at last posted settlement price on their primary exchange as provided by a third-party pricing service. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation on their primary exchange as provided by a third-party pricing service. Forward foreign currency exchange contracts are generally valued at the mean of bid and asked prices for the time period interpolated from rates provided by a third-party pricing service for proximate time periods. Open-end investment companies are generally valued at net asset value per share. 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).
11
Supplemental Information (unaudited) – continued
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, such as futures contracts and forward foreign currency exchange contracts. The following is a summary of the levels used as of February 28, 2022 in valuing the fund's assets and liabilities:
| Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
| Equity Securities: | ||||
| United States | $669,360 | $— | $57,518 | $726,878 |
| Mexico | — | — | 9,450 | 9,450 |
| United Kingdom | — | — | 715 | 715 |
| Municipal Bonds | — | 35,875 | — | 35,875 |
| U.S. Corporate Bonds | — | 49,705,000 | — | 49,705,000 |
| Foreign Bonds | — | 8,103,060 | — | 8,103,060 |
| Mutual Funds | 1,630,348 | — | — | 1,630,348 |
| Total | $2,299,708 | $57,843,935 | $67,683 | $60,211,326 |
| Other Financial Instruments | ||||
| Futures Contracts – Assets | $18,021 | $— | $— | $18,021 |
| Futures Contracts – Liabilities | (18,336) | — | — | (18,336) |
| Forward Foreign Currency Exchange Contracts – Assets | — | 1,644 | — | 1,644 |
For further information regarding security characteristics, see the Portfolio of Investments.
The following is a reconciliation of level 3 assets for which significant unobservable inputs were used to determine fair value. The table presents the activity of level 3 securities held at the beginning and the end of the period.
| Equity Securities | |
| Balance as of 11/30/21 | $67,005 |
| Change in unrealized appreciation or depreciation | 678 |
| Balance as of 2/28/22 | $67,683 |
The net change in unrealized appreciation or depreciation from investments held as level 3 at February 28, 2022 is $678. At February 28, 2022, the fund held three level 3 securities.
(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 | $828,333 | $3,874,134 | $3,072,119 | $— | $— | $1,630,348 |
| Affiliated Issuers | Dividend Income | Capital Gain Distributions |
| MFS Institutional Money Market Portfolio | $271 | $— |
(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.
(4) Russia and Ukraine Conflict
The market disruptions, which began in late February 2022, associated with geopolitical events related to the conflict between Russia and Ukraine may adversely affect the value of the fund’s assets and thus the fund’s performance. Management continues to monitor these events and to evaluate the related impacts, if any, to the fund.
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