UNITED STATES
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05440
MFS INTERMEDIATE INCOME TRUST
(Exact name of registrant as specified in charter)
111 Huntington Avenue, Boston, Massachusetts 02199 (Address of principal executive offices) (Zip code)
Christopher R. Bohane
Massachusetts Financial Services Company
111Huntington Avenue Boston, Massachusetts 02199
(Name and address of agents for service)
Registrant’s telephone number, including area code: (617) 954-5000
Date of fiscal year end: October 31
Date of reporting period: October 31, 2024
ITEM 1. REPORTS TO STOCKHOLDERS.
Item 1(a):
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back cover |
(a) | For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities. |
(d) | Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. The Average Duration calculation reflects the impact of the equivalent exposure of derivative positions, if any. |
(i) | For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts. |
(m) | In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening feature (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity. |
(o) | Less than 0.1%. |
(q) | For purposes of this presentation, Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions and may be negative. |
(v) | For purposes of this presentation, market value of fixed income and/or equity derivatives, if any, is included in Cash & Cash Equivalents. |
(r) | Securities rated “BBB”, “Baa”, or higher are considered investment grade; securities rated “BB”, “Ba”, or below are considered non-investment grade. Ratings are assigned to underlying securities utilizing ratings from Moody's, Fitch, and Standard & Poor's and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). For securities that are not rated by any of the rating agencies, the security is considered Not Rated. |
(y) | A yield curve graphically depicts the yields of different maturity bonds of the same credit quality and type; a normal yield curve is upward sloping, with short-term rates lower than long-term rates. |
Inception Date | 1-yr | 5-yr | 10-yr | |
Market Value (r) | 3/17/1988 | 15.71% | 2.55% | 2.97% |
Net Asset Value (r) | 3/17/1988 | 9.35% | 1.73% | 2.50% |
Bloomberg U.S. Intermediate Government/Credit Bond Index (f) | 8.20% | 0.85% | 1.73% |
(f) | Source: FactSet Research Systems Inc. |
(r) | Includes reinvestment of all distributions. Market value references New York Stock Exchange Price. |
(a) | Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg's licensors own all proprietary rights in the Bloomberg Indices. Bloomberg neither approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. |
(1) | borrow money except to the extent not prohibited by the 1940 Act and exemptive orders granted under such Act. |
(2) | underwrite securities issued by other persons, except that all or any portion of the assets of the Fund may be invested in one or more investment companies, to the extent not prohibited by the 1940 Act and exemptive orders granted under such Act, and except insofar as the Fund may technically be deemed an underwriter under the Securities Act of 1933, as amended, in selling a portfolio security. |
(3) | issue any senior securities except to the extent not prohibited by the 1940 Act and exemptive orders granted under such Act. For purposes of this restriction, collateral arrangements with respect to any type of swap, option, Forward Contracts and Futures Contracts and collateral arrangements with respect to initial and variation margin are not deemed to be the issuance of a senior security. |
(4) | make loans except to the extent not prohibited by the 1940 Act and exemptive orders granted under such Act. |
(5) | purchase or sell real estate (excluding securities secured by real estate or interests therein and securities of companies, such as real estate investment trusts, which deal in real estate or interests therein), interests in oil, gas or mineral leases, commodities or commodity contracts (excluding currencies and any type of option, Futures Contracts and Forward Contracts) in the ordinary course of its business. The Fund reserves the freedom of action to hold and to sell real estate, mineral leases, commodities or commodity contracts (including currencies and any type of option, Futures Contracts and Forward Contracts) acquired as a result of the ownership of securities. |
(6) | purchase any securities of an issuer in a particular industry if as a result 25% or more of its total assets (taken at market value at the time of purchase) would be invested in securities of issuers whose principal business activities are in the same industry. |
Portfolio Manager | Primary Role | Since | Title and Five Year History |
Geoffrey Schechter | Lead Portfolio Manager | 2017 | Investment Officer of MFS; employed in the investment management area of MFS since 1993. |
Alexander Mackey | Investment Grade Debt Instruments Portfolio Manager | 2017 | Co-Chief Investment Officer-Global Fixed Income of MFS; employed in the investment management area of MFS since 2001. |
Jake Stone | U.S. Government Securities Portfolio Manager | 2023 | Investment Officer of MFS; employed in the investment management area of MFS since 2018. |
Issuer | Shares/Par | Value ($) | ||
Bonds – 96.8% | ||||
Aerospace & Defense – 0.5% | ||||
Huntington Ingalls Industries, Inc., 3.844%, 5/01/2025 | $ | 1,486,000 | $1,477,453 | |
Asset-Backed & Securitized – 8.8% | ||||
3650R Commercial Mortgage Trust, 2021-PF1, “XA”, 1.008%, 11/15/2054 (i) | $ | 10,318,085 | $444,854 | |
ACREC 2021-FL1 Ltd., “AS”, FLR, 6.373% ((SOFR - 1mo. + 0.11448%) + 1.5%), 10/16/2036 (n) | 1,087,000 | 1,079,768 | ||
American Credit Acceptance Receivables Trust, 2024-2, “A”, 5.9%, 2/12/2027 (n) | 794,974 | 798,291 | ||
AmeriCredit Automobile Receivables Trust, 2024-1, “A”, 5.61%, 1/12/2027 (n) | 153,274 | 153,441 | ||
AmeriCredit Automobile Receivables Trust, 2024-1, “A2-B”, FLR, 5.941% (SOFR - 1mo. + 0.6%), 2/18/2028 | 1,127,000 | 1,127,369 | ||
Angel Oak Mortgage Trust, 2024-10, “A1”, 5.348%, 10/25/2069 (n) | 1,562,957 | 1,552,606 | ||
Arbor Realty Trust, Inc., CLO, 2021-FL3, “AS”, FLR, 6.318% ((SOFR - 1mo. + 0.11448%) + 1.4%), 8/15/2034 (n) | 1,112,500 | 1,105,934 | ||
AREIT 2022-CRE6 Trust, “AS”, FLR, 6.54% (SOFR - 30 day + 1.65%), 1/20/2037 (n) | 1,522,500 | 1,511,742 | ||
ARI Fleet Lease Trust, 2023-B, “A2”, 6.05%, 7/15/2032 (n) | 241,968 | 244,392 | ||
BDS 2021-FL9 Ltd., “A”, FLR, 5.943% ((SOFR - 1mo. + 0.11448%) + 1.07%), 11/16/2038 (n) | 411,927 | 409,964 | ||
BDS Ltd., 2024-FL13, “A”, FLR, 6.335% (SOFR - 1mo. + 1.5762%), 9/19/2039 (n) | 305,500 | 305,458 | ||
Brazos Securitization LLC, 5.014%, 9/01/2031 (n) | 655,490 | 655,811 | ||
Bridgecrest Lending Auto Securitization Trust, 2024-2, “A2”, 5.78%, 2/16/2027 | 607,485 | 608,834 | ||
Bridgecrest Lending Auto Securitization Trust, 2023-1, “A2”, 6.34%, 7/15/2026 | 35,319 | 35,331 | ||
BSPDF 2021-FL1 Issuer Ltd., “A”, FLR, 6.118% ((SOFR - 1mo. + 0.11448%) + 1.2%), 10/15/2036 (n) | 174,395 | 172,346 | ||
BSPDF 2021-FL1 Issuer Ltd., “AS”, FLR, 6.398% ((SOFR - 1mo. + 0.11448%) + 1.48%), 10/15/2036 (n) | 774,500 | 759,217 | ||
Business Jet Securities LLC, 2024-1A, “A”, 6.197%, 5/15/2039 (n) | 426,013 | 430,859 | ||
BXMT 2021-FL4 Ltd., “AS”, FLR, 6.195% ((SOFR - 1mo. + 0.11448%) + 1.3%), 5/15/2038 (n) | 2,000,000 | 1,871,881 | ||
Chase Auto Owner Trust, 2024-5A, “A2”, 4.4%, 11/26/2027 (n) | 355,435 | 354,413 | ||
Commercial Mortgage Trust, 2017-COR2, “A3”, 3.51%, 9/10/2050 | 1,676,352 | 1,593,073 | ||
Dell Equipment Finance Trust, 2023-1, “A2”, 5.65%, 9/22/2028 (n) | 25,784 | 25,790 | ||
Dell Equipment Finance Trust, 2023-3, “A2”, 6.1%, 4/23/2029 (n) | 181,839 | 182,522 | ||
EQT Trust, 2024-EXTR, “B”, 5.654%, 7/05/2041 (n) | 236,027 | 236,565 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Asset-Backed & Securitized – continued | ||||
GLS Auto Select Receivables Trust, 2023-2A, 6.37%, 6/15/2028 (n) | $ | 311,198 | $314,964 | |
GLS Auto Select Receivables Trust, 2024-2A, “A-2”, 5.77%, 6/15/2027 (n) | 991,246 | 994,385 | ||
LoanCore 2021-CRE6 Ltd., “AS”, FLR, 6.568% ((SOFR - 1mo. + 0.11448%) + 1.65%), 11/15/2038 (n) | 1,500,000 | 1,482,654 | ||
Morgan Stanley Residential Mortgage Loan Trust, 2024-NQM3, “A-1”, 5.044%, 7/25/2069 (n) | 562,576 | 558,115 | ||
Neuberger Berman CLO Ltd., 2023-53A, “B”, FLR, 6.884% (SOFR - 3mo. + 2.25%), 10/24/2032 (n) | 758,092 | 761,397 | ||
Neuberger Berman CLO Ltd., 2023-53A, “BR”, FLR, 1% (SOFR - 3mo. + 1.7%), 10/24/2037 (n) | 758,092 | 758,092 | ||
OBX Trust, 2024-NQM1, “A1”, 5.928%, 11/25/2063 (n) | 291,938 | 293,028 | ||
OBX Trust, 2024-NQM1, “A2”, 6.253%, 11/25/2063 (n) | 88,374 | 88,648 | ||
OBX Trust, 2024-NQM12, “A1”, 5.475%, 7/25/2064 (n) | 413,840 | 413,470 | ||
OBX Trust, 2024-NQM2, “A1”, 5.878%, 12/25/2063 (n) | 1,361,351 | 1,365,927 | ||
PFP III 2024-11 Ltd., “11A”, 6.651% (SOFR - 1mo. + 1.83239%), 9/17/2039 (n) | 903,912 | 906,001 | ||
PFS Financing Corp., 2024-A, “A”, FLR, 5.859% (SOFR - 1mo. + 0.85%), 1/15/2028 (n) | 1,700,000 | 1,705,078 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL7, “A”, FLR, 6.052% ((SOFR - 1mo. + 0.11448%) + 1.2%), 11/25/2036 (n) | 280,838 | 279,744 | ||
ReadyCap Commercial Mortgage Trust, 2021-FL7, “AS”, FLR, 6.352% ((SOFR - 1mo. + 0.11448%) + 1.5%), 11/25/2036 (n) | 199,500 | 198,461 | ||
Santander Drive Auto Receivables Trust, 2024-1, “A2”, 5.71%, 2/16/2027 | 188,170 | 188,564 | ||
SBNA Auto Lease Trust, 2024-A, “A2”, 5.45%, 1/20/2026 (n) | 275,119 | 275,590 | ||
Verus Securitization Trust, 2014-1, “A1”, 5.712%, 1/25/2069 (n) | 800,807 | 801,365 | ||
Verus Securitization Trust, 2024-1, “A2”, 5.915%, 1/25/2069 (n) | 223,782 | 223,426 | ||
Verus Securitization Trust, 2024-8, “A1”, 5.364%, 10/25/2069 (n) | 276,663 | 275,995 | ||
Westlake Automobile Receivables Trust, 2024-1A, “A2B”, FLR, 5.562% (SOFR - 1mo. + 0.57%), 3/15/2027 (n) | 623,912 | 624,052 | ||
$28,169,417 | ||||
Automotive – 1.6% | ||||
Ford Motor Credit Co. LLC, 5.8%, 3/05/2027 | $ | 958,000 | $966,439 | |
Hyundai Capital America, 1.65%, 9/17/2026 (n) | 1,000,000 | 942,392 | ||
LKQ Corp., 5.75%, 6/15/2028 | 862,000 | 879,117 | ||
LKQ Corp., 6.25%, 6/15/2033 | 1,176,000 | 1,216,163 | ||
Stellantis Finance US, Inc., 1.711%, 1/29/2027 (n) | 762,000 | 707,790 | ||
Stellantis Finance US, Inc., 2.691%, 9/15/2031 (n) | 532,000 | 438,384 | ||
$5,150,285 | ||||
Broadcasting – 0.7% | ||||
WarnerMedia Holdings, Inc., 4.279%, 3/15/2032 | $ | 2,524,000 | $2,211,865 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Brokerage & Asset Managers – 2.6% | ||||
Brookfield Finance, Inc., 2.724%, 4/15/2031 | $ | 2,844,000 | $2,484,901 | |
Charles Schwab Corp., 5.875%, 8/24/2026 | 425,000 | 433,772 | ||
Charles Schwab Corp., 5.643% to 5/19/2028, FLR (SOFR - 1 day + 2.210%) to 5/19/2029 | 1,535,000 | 1,573,725 | ||
Low Income Investment Fund, 3.386%, 7/01/2026 | 705,000 | 681,458 | ||
Low Income Investment Fund, 3.711%, 7/01/2029 | 1,905,000 | 1,736,825 | ||
LPL Holdings, Inc., 6.75%, 11/17/2028 | 1,437,000 | 1,514,629 | ||
$8,425,310 | ||||
Building – 0.5% | ||||
Allegion US Holding Co., Inc., 5.6%, 5/29/2034 | $ | 1,713,000 | $1,750,255 | |
Business Services – 0.9% | ||||
Tencent Holdings Ltd., 2.88%, 4/22/2031 (n) | $ | 1,499,000 | $1,334,757 | |
Verisk Analytics, Inc., 4.125%, 3/15/2029 | 716,000 | 699,847 | ||
Verisk Analytics, Inc., 5.75%, 4/01/2033 | 850,000 | 890,968 | ||
$2,925,572 | ||||
Cable TV – 0.7% | ||||
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 4.908%, 7/23/2025 | $ | 312,000 | $311,663 | |
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 6.15%, 11/10/2026 | 372,000 | 379,935 | ||
Cox Communications, Inc., 5.45%, 9/15/2028 (n) | 1,559,000 | 1,585,679 | ||
$2,277,277 | ||||
Conglomerates – 1.4% | ||||
nVent Finance S.à r.l., 5.65%, 5/15/2033 | $ | 1,216,000 | $1,241,184 | |
Regal Rexnord Corp., 6.05%, 4/15/2028 | 1,533,000 | 1,569,688 | ||
Westinghouse Air Brake Technologies Corp., 4.7%, 9/15/2028 | 1,760,000 | 1,751,822 | ||
$4,562,694 | ||||
Consumer Products – 0.3% | ||||
Haleon US Capital LLC, 3.375%, 3/24/2029 | $ | 860,000 | $812,737 | |
Consumer Services – 1.0% | ||||
Booking Holdings, Inc., 3.55%, 3/15/2028 | $ | 2,737,000 | $2,652,597 | |
Conservation Fund, 3.474%, 12/15/2029 | 563,000 | 514,440 | ||
$3,167,037 | ||||
Containers – 0.6% | ||||
Berry Global, Inc., 1.65%, 1/15/2027 | $ | 1,542,000 | $1,437,737 | |
Berry Global, Inc., 5.5%, 4/15/2028 | 325,000 | 325,916 | ||
$1,763,653 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Electrical Equipment – 0.3% | ||||
Arrow Electronics, Inc., 3.875%, 1/12/2028 | $ | 1,049,000 | $1,013,167 | |
Electronics – 0.7% | ||||
Broadcom, Inc., 4.55%, 2/15/2032 | $ | 1,671,000 | $1,616,019 | |
Qorvo, Inc., 1.75%, 12/15/2024 | 634,000 | 630,860 | ||
$2,246,879 | ||||
Emerging Market Quasi-Sovereign – 0.7% | ||||
DAE Funding LLC (United Arab Emirates), 2.625%, 3/20/2025 (n) | $ | 1,000,000 | $989,907 | |
Qatar Petroleum, 2.25%, 7/12/2031 (n) | 1,635,000 | 1,406,288 | ||
$2,396,195 | ||||
Energy - Independent – 0.6% | ||||
Occidental Petroleum Corp., 5.55%, 10/01/2034 | $ | 375,000 | $369,150 | |
Pioneer Natural Resources Co., 1.9%, 8/15/2030 | 1,750,000 | 1,490,174 | ||
$1,859,324 | ||||
Energy - Integrated – 0.4% | ||||
Eni S.p.A., 4.25%, 5/09/2029 (n) | $ | 1,252,000 | $1,225,083 | |
Financial Institutions – 1.4% | ||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.3%, 1/30/2032 | $ | 332,000 | $291,910 | |
Avolon Holdings Funding Ltd., 3.25%, 2/15/2027 (n) | 583,000 | 558,285 | ||
Avolon Holdings Funding Ltd., 2.528%, 11/18/2027 (n) | 869,000 | 804,104 | ||
Avolon Holdings Funding Ltd., 2.75%, 2/21/2028 (n) | 2,336,000 | 2,155,958 | ||
SMBC Aviation Capital Finance DAC, 5.3%, 4/03/2029 (n) | 789,000 | 797,226 | ||
$4,607,483 | ||||
Food & Beverages – 2.4% | ||||
Bacardi-Martini B.V., 5.25%, 1/15/2029 (n) | $ | 1,356,000 | $1,361,833 | |
Constellation Brands, Inc., 4.4%, 11/15/2025 | 3,306,000 | 3,289,951 | ||
JBS USA Lux S.A./JBS USA Food Co./JBS USA Finance, Inc., 3%, 2/02/2029 | 1,451,000 | 1,333,060 | ||
JDE Peet's N.V., 1.375%, 1/15/2027 (n) | 1,931,000 | 1,788,245 | ||
$7,773,089 | ||||
Gaming & Lodging – 1.6% | ||||
GLP Capital LP/GLP Financing II, Inc., 4%, 1/15/2031 | $ | 3,055,000 | $2,808,773 | |
Marriott International, Inc., 2.85%, 4/15/2031 | 802,000 | 704,859 | ||
Marriott International, Inc., 2.75%, 10/15/2033 | 1,750,000 | 1,449,107 | ||
$4,962,739 | ||||
Industrial – 0.4% | ||||
Howard University, Washington D.C., AGM, 2.757%, 10/01/2027 | $ | 1,250,000 | $1,165,431 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Insurance – 1.5% | ||||
AIA Group Ltd., 3.375%, 4/07/2030 (n) | $ | 563,000 | $525,330 | |
Corebridge Financial, Inc., 3.85%, 4/05/2029 | 2,500,000 | 2,388,944 | ||
Sammons Financial Group, Inc., 4.75%, 4/08/2032 (n) | 2,000,000 | 1,834,685 | ||
$4,748,959 | ||||
Insurance - Health – 0.8% | ||||
Elevance Health, Inc., 4.95%, 11/01/2031 | $ | 1,905,000 | $1,891,492 | |
Humana, Inc., 3.7%, 3/23/2029 | 867,000 | 822,010 | ||
$2,713,502 | ||||
Insurance - Property & Casualty – 0.9% | ||||
Arthur J. Gallagher & Co., 6.5%, 2/15/2034 | $ | 1,626,000 | $1,761,870 | |
RenaissanceRe Holdings Ltd., 5.75%, 6/05/2033 | 1,098,000 | 1,114,588 | ||
$2,876,458 | ||||
International Market Quasi-Sovereign – 0.4% | ||||
NBN Co. Ltd. (Commonwealth of Australia), 5.75%, 10/06/2028 (n) | $ | 1,181,000 | $1,220,210 | |
Machinery & Tools – 1.1% | ||||
AGCO Corp., 5.8%, 3/21/2034 | $ | 529,000 | $538,045 | |
CNH Industrial N.V., 3.85%, 11/15/2027 | 3,066,000 | 3,001,797 | ||
$3,539,842 | ||||
Major Banks – 11.1% | ||||
Bank of America Corp., 1.734% to 7/22/2026, FLR (SOFR - 1 day + 0.96%) to 7/22/2027 | $ | 2,224,000 | $2,111,028 | |
Bank of America Corp., 2.572% to 10/20/2031, FLR (SOFR - 1 day + 1.21%) to 10/20/2032 | 1,823,000 | 1,550,125 | ||
Barclays PLC, 2.279% to 11/24/2026, FLR (CMT - 1yr. + 1.05%) to 11/24/2027 | 1,435,000 | 1,360,684 | ||
BNP Paribas S.A., 2.591% to 1/20/2027, FLR (SOFR - 1 day + 1.228%) to 1/20/2028 (n) | 1,723,000 | 1,637,845 | ||
Capital One Financial Corp., 7.624% to 10/30/2030, FLR (SOFR - 1 day + 3.07%) to 10/30/2031 | 1,677,000 | 1,863,541 | ||
Deutsche Bank AG, 2.311% to 11/16/2026, FLR (SOFR - 1 day + 1.219%) to 11/16/2027 | 457,000 | 432,399 | ||
Deutsche Bank AG, 6.72% to 1/18/2028, FLR (SOFR - 1 day + 3.18%) to 1/18/2029 | 150,000 | 156,316 | ||
Goldman Sachs Group, Inc., 3.5%, 4/01/2025 | 1,500,000 | 1,491,431 | ||
Goldman Sachs Group, Inc., 1.093% to 12/09/2025, FLR (SOFR - 1 day + 0.789%) to 12/09/2026 | 894,000 | 857,328 | ||
Huntington Bancshares, Inc., 6.208% to 8/21/2028, FLR (SOFR - 1 day + 2.02%) to 8/21/2029 | 1,142,000 | 1,185,156 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Major Banks – continued | ||||
JPMorgan Chase & Co., 2.005% to 3/13/2025, FLR (SOFR - 1 day + 1.585%) to 3/13/2026 | $ | 2,500,000 | $2,471,460 | |
JPMorgan Chase & Co., 5.04% to 1/23/2027, FLR (SOFR - 1 day + 1.19%) to 1/23/2028 | 357,000 | 358,916 | ||
JPMorgan Chase & Co., 2.58% to 4/22/2031, FLR (SOFR - 1 day + 1.25%) to 4/22/2032 | 2,250,000 | 1,949,582 | ||
Lloyds Banking Group PLC, 3.511% to 3/18/2025, FLR (CMT - 1yr. + 1.6%) to 3/18/2026 | 2,546,000 | 2,528,039 | ||
Mizuho Financial Group, 5.754%, 5/27/2034 | 2,000,000 | 2,071,394 | ||
Morgan Stanley, 3.875%, 1/27/2026 | 5,400,000 | 5,350,421 | ||
Morgan Stanley, 3.625%, 1/20/2027 | 824,000 | 808,556 | ||
Morgan Stanley, 3.95%, 4/23/2027 | 290,000 | 284,648 | ||
Morgan Stanley, 1.512% to 7/20/2026, FLR (SOFR - 1 day + 0.858%) to 7/20/2027 | 977,000 | 924,458 | ||
Standard Chartered PLC, 6.17% to 1/09/2026, FLR (CMT - 1yr. + 2.05%) to 1/09/2027 (n) | 1,750,000 | 1,770,947 | ||
UBS Group Funding (Switzerland) AG, 4.253%, 3/23/2028 (n) | 2,449,000 | 2,390,811 | ||
UniCredit S.p.A., 2.569% to 9/22/2025, FLR (CMT - 1yr. + 2.3%) to 9/22/2026 (n) | 2,088,000 | 2,035,809 | ||
$35,590,894 | ||||
Medical & Health Technology & Services – 0.7% | ||||
IQVIA, Inc., 5.7%, 5/15/2028 | $ | 472,000 | $481,676 | |
IQVIA, Inc., 6.25%, 2/01/2029 | 353,000 | 367,598 | ||
ProMedica Toledo Hospital, “B”, AGM, 5.75%, 11/15/2038 | 1,250,000 | 1,260,779 | ||
$2,110,053 | ||||
Metals & Mining – 1.9% | ||||
Anglo American Capital PLC, 4.75%, 4/10/2027 (n) | $ | 1,547,000 | $1,538,441 | |
Anglo American Capital PLC, 2.25%, 3/17/2028 (n) | 744,000 | 680,794 | ||
Anglo American Capital PLC, 2.875%, 3/17/2031 (n) | 870,000 | 762,737 | ||
Glencore Funding LLC, 1.625%, 4/27/2026 (n) | 1,191,000 | 1,137,149 | ||
Glencore Funding LLC, 3.875%, 10/27/2027 (n) | 1,887,000 | 1,834,353 | ||
$5,953,474 | ||||
Midstream – 1.8% | ||||
Enbridge, Inc., 3.125%, 11/15/2029 | $ | 1,506,000 | $1,389,877 | |
MPLX LP, 4%, 3/15/2028 | 1,395,000 | 1,358,631 | ||
Plains All American Pipeline LP, 3.8%, 9/15/2030 | 1,510,000 | 1,408,322 | ||
Targa Resources Corp., 4.2%, 2/01/2033 | 357,000 | 328,170 | ||
Targa Resources Corp., 6.125%, 3/15/2033 | 577,000 | 602,928 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Midstream – continued | ||||
Targa Resources Partners LP/Targa Resources Finance Corp., 6.875%, 1/15/2029 | $ | 499,000 | $510,393 | |
$5,598,321 | ||||
Mortgage-Backed – 1.4% | ||||
Fannie Mae, 6.5%, 11/01/2031 | $ | 213,270 | $218,186 | |
Freddie Mac, 2.57%, 7/25/2026 | 3,375,000 | 3,275,460 | ||
Freddie Mac, 0.443%, 5/25/2029 (i) | 6,837,545 | 130,327 | ||
Freddie Mac, 0.816%, 7/25/2029 (i) | 4,920,901 | 175,206 | ||
Freddie Mac, 0.355%, 2/25/2031 (i) | 6,786,456 | 159,341 | ||
Freddie Mac, 0.266%, 5/25/2033 (i) | 6,200,000 | 137,185 | ||
Freddie Mac, 0.176%, 10/25/2033 (i) | 11,614,030 | 203,731 | ||
Freddie Mac, 6%, 8/01/2034 | 3,528 | 3,632 | ||
Freddie Mac, 0.905%, 9/25/2034 (i)(w) | 1,558,346 | 113,340 | ||
Ginnie Mae, 6%, 6/15/2033 - 10/15/2036 | 178,699 | 186,197 | ||
$4,602,605 | ||||
Municipals – 4.6% | ||||
Bridgeview, IL, Stadium and Redevelopment Projects, Taxable, AAC, 5.06%, 12/01/2025 | $ | 1,835,000 | $1,826,920 | |
Gainesville, TX, Hospital District, Taxable, “A”, 5.711%, 8/15/2033 | 2,330,000 | 2,359,932 | ||
Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Taxable, “B”, 3%, 6/01/2046 | 540,000 | 499,228 | ||
Guam International Airport Authority Rev., Taxable (A.B. Won Pat Airport), “A”, 3.839%, 10/01/2036 | 110,000 | 94,049 | ||
Massachusetts Educational Financing Authority, Education Loan Rev., Taxable, “N”, 6.069%, 7/01/2033 | 1,750,000 | 1,796,108 | ||
Massachusetts Educational Financing Authority, Education Loan Rev., Taxable, Issue M, “A”, 2.641%, 7/01/2037 | 1,745,000 | 1,532,272 | ||
Michigan Finance Authority Hospital Refunding Rev., Taxable (Trinity Health Credit Group), “T”, 3.084%, 12/01/2034 | 2,500,000 | 2,191,511 | ||
Michigan Finance Authority Tobacco Settlement Asset-Backed Rev., Taxable (2006 Sold Tobacco Receipts), “A-1”, 2.326%, 6/01/2030 | 14,541 | 14,461 | ||
Rhode Island Student Loan Authority, Education Loan Rev., Taxable, “2”, 2.348%, 12/01/2040 | 45,000 | 42,401 | ||
Syracuse, NY, Industrial Development Agency PILOT Rev., Taxable (Carousel Center Project), “B”, 5%, 1/01/2036 (n) | 3,635,000 | 2,767,743 | ||
University of California, General Rev., Taxable, “BG”, 1.614%, 5/15/2030 | 2,010,000 | 1,720,865 | ||
$14,845,490 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Other Banks & Diversified Financials – 1.4% | ||||
AIB Group PLC, 6.608% to 9/13/2028, FLR (SOFR - 1 day + 2.33%) to 9/13/2029 (n) | $ | 352,000 | $370,049 | |
CaixaBank S.A., 5.673% to 3/15/2029, FLR (SOFR - 1 day + 1.78%) to 3/15/2030 (n) | 637,000 | 647,407 | ||
Macquarie Group Ltd., 1.34% to 1/12/2026, FLR (SOFR - 1 day + 1.069%) to 1/12/2027 (n) | 1,784,000 | 1,707,678 | ||
Macquarie Group Ltd., 6.255% to 12/07/2033, FLR (SOFR - 1 day + 2.303%) to 12/07/2034 (n) | 819,000 | 871,608 | ||
Truist Financial Corp., 5.435% to 1/24/2029, FLR (SOFR - 1 day + 1.62%) to 1/24/2030 | 789,000 | 798,465 | ||
$4,395,207 | ||||
Pharmaceuticals – 0.7% | ||||
Bayer US Finance LLC, 6.375%, 11/21/2030 (n) | $ | 2,000,000 | $2,085,894 | |
Real Estate - Retail – 2.7% | ||||
Brixmor Operating Partnership LP, REIT, 4.05%, 7/01/2030 | $ | 2,349,000 | $2,228,063 | |
NNN REIT, Inc., 5.6%, 10/15/2033 | 675,000 | 688,658 | ||
Realty Income Corp., REIT, 3.4%, 1/15/2028 | 2,875,000 | 2,770,079 | ||
Regency Centers Corp., 3.7%, 6/15/2030 | 3,000,000 | 2,820,001 | ||
$8,506,801 | ||||
Specialty Stores – 1.4% | ||||
DICK'S Sporting Goods, 3.15%, 1/15/2032 | $ | 2,631,000 | $2,307,392 | |
Ross Stores, Inc., 4.8%, 4/15/2030 | 2,358,000 | 2,318,528 | ||
$4,625,920 | ||||
Supermarkets – 0.4% | ||||
Kroger Co., 4.9%, 9/15/2031 | $ | 1,184,000 | $1,181,147 | |
Telecommunications - Wireless – 1.8% | ||||
Crown Castle, Inc., REIT, 3.65%, 9/01/2027 | $ | 947,000 | $916,619 | |
Crown Castle, Inc., REIT, 2.25%, 1/15/2031 | 1,000,000 | 847,133 | ||
Rogers Communications, Inc., 3.2%, 3/15/2027 | 1,739,000 | 1,676,457 | ||
T-Mobile USA, Inc., 3.875%, 4/15/2030 | 2,500,000 | 2,374,302 | ||
$5,814,511 | ||||
Tobacco – 1.2% | ||||
B.A.T. Capital Corp., 4.7%, 4/02/2027 | $ | 2,000,000 | $1,997,066 | |
Philip Morris International, Inc., 5.75%, 11/17/2032 | 1,773,000 | 1,846,410 | ||
$3,843,476 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Transportation - Services – 2.4% | ||||
Element Fleet Management Corp., 6.271%, 6/26/2026 (n) | $ | 1,685,000 | $1,718,160 | |
Element Fleet Management Corp., 5.643%, 3/13/2027 (n) | 653,000 | 661,977 | ||
GXO Logistics, Inc., 6.25%, 5/06/2029 | 625,000 | 645,430 | ||
Penske Truck Leasing Co. LP, 5.35%, 1/12/2027 (n) | 648,000 | 653,764 | ||
Penske Truck Leasing Co. LP, 5.35%, 3/30/2029 (n) | 911,000 | 921,707 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2026 (n) | 480,000 | 441,386 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2027 (n) | 1,525,000 | 1,314,248 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2029 (n) | 1,392,000 | 969,668 | ||
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2031 (n) | 480,000 | 296,297 | ||
$7,622,637 | ||||
U.S. Government Agencies and Equivalents – 0.0% | ||||
Small Business Administration, 5.36%, 11/01/2025 | $ | 20,203 | $20,112 | |
Small Business Administration, 5.39%, 12/01/2025 | 13,200 | 13,174 | ||
$33,286 | ||||
U.S. Treasury Obligations – 26.7% | ||||
U.S. Treasury Notes, 2%, 2/15/2025 (f) | $ | 9,900,000 | $9,826,524 | |
U.S. Treasury Notes, 2%, 8/15/2025 | 5,225,000 | 5,128,827 | ||
U.S. Treasury Notes, 2.25%, 11/15/2025 | 5,086,000 | 4,979,274 | ||
U.S. Treasury Notes, 2%, 11/15/2026 | 6,254,000 | 5,994,557 | ||
U.S. Treasury Notes, 1.625%, 11/30/2026 | 7,750,000 | 7,363,711 | ||
U.S. Treasury Notes, 1.875%, 2/28/2027 | 10,066,500 | 9,564,748 | ||
U.S. Treasury Notes, 2.375%, 5/15/2027 | 4,075,000 | 3,903,245 | ||
U.S. Treasury Notes, 0.5%, 6/30/2027 | 6,500,000 | 5,908,906 | ||
U.S. Treasury Notes, 3.75%, 8/15/2027 | 11,885,000 | 11,766,150 | ||
U.S. Treasury Notes, 0.375%, 9/30/2027 | 5,672,000 | 5,090,620 | ||
U.S. Treasury Notes, 1.75%, 11/15/2029 | 4,500,000 | 4,018,535 | ||
U.S. Treasury Notes, 1.5%, 2/15/2030 | 5,043,500 | 4,405,970 | ||
U.S. Treasury Notes, 4.625%, 4/30/2031 | 1,626,000 | 1,662,839 | ||
U.S. Treasury Notes, 1.875%, 2/15/2032 | 2,705,500 | 2,306,544 | ||
U.S. Treasury Notes, 4.125%, 11/15/2032 | 3,400,000 | 3,374,234 | ||
$85,294,684 | ||||
Utilities - Electric Power – 3.8% | ||||
Algonquin Power & Utilities Corp., 5.365%, 6/15/2026 | $ | 364,000 | $366,031 | |
Enel Americas S.A., 4%, 10/25/2026 | 252,000 | 247,097 | ||
Enel Finance International N.V., 7.05%, 10/14/2025 (n) | 895,000 | 912,511 | ||
FirstEnergy Corp., 3.9%, 7/15/2027 | 2,827,000 | 2,759,337 | ||
ITC Holdings Corp., 2.95%, 5/14/2030 (n) | 3,000,000 | 2,700,922 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Utilities - Electric Power – continued | ||||
Liberty Utilities Finance Co., 2.05%, 9/15/2030 (n) | $ | 3,000,000 | $2,519,394 | |
Pacific Gas & Electric Co., 5.45%, 6/15/2027 | 401,000 | 406,537 | ||
Pacific Gas & Electric Co., 2.1%, 8/01/2027 | 952,000 | 885,501 | ||
Pacific Gas & Electric Co., 6.1%, 1/15/2029 | 326,000 | 338,497 | ||
Southern California Edison Co., 6.65%, 4/01/2029 | 816,000 | 873,021 | ||
Transelec S.A., 4.25%, 1/14/2025 (n) | 228,000 | 227,392 | ||
$12,236,240 | ||||
Total Bonds (Identified Cost, $321,785,453) | $309,382,556 | |||
Investment Companies (h) – 2.8% | ||||
Money Market Funds – 2.8% | ||||
MFS Institutional Money Market Portfolio, 4.87% (v) (Identified Cost, $8,830,474) | 8,830,471 | $8,831,354 | ||
Other Assets, Less Liabilities – 0.4% | 1,404,328 | |||
Net Assets – 100.0% | $319,618,238 |
(f) | All or a portion of the security has been segregated as collateral for open futures contracts. | |||
(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 $8,831,354 and $309,382,556, respectively. | |||
(i) | Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security. | |||
(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 $79,424,239, representing 24.8% of net assets. | |||
(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. | |||
(w) | When-issued security. |
The following abbreviations are used in this report and are defined: | |
AAC | Ambac Assurance Corp. |
AGM | Assured Guaranty Municipal |
CLO | Collateralized Loan Obligation |
CMT | Constant Maturity Treasury |
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. |
NPFG | National Public Finance Guarantee Corp. |
REIT | Real Estate Investment Trust |
SOFR | Secured Overnight Financing Rate |
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Ultra Note 10 yr | Short | USD | 161 | $18,313,750 | December – 2024 | $406,937 |
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 10 yr | Long | USD | 101 | $11,157,344 | December – 2024 | $(253,510) |
U.S. Treasury Note 2 yr | Long | USD | 173 | 35,628,539 | December – 2024 | (112,509) |
U.S. Treasury Note 5 yr | Long | USD | 520 | 55,761,875 | December – 2024 | (1,170,992) |
$(1,537,011) |
Assets | |
Investments in unaffiliated issuers, at value (identified cost, $321,785,453) | $309,382,556 |
Investments in affiliated issuers, at value (identified cost, $8,830,474) | 8,831,354 |
Receivables for | |
Investments sold | 35,386 |
Interest | 2,550,212 |
Other assets | 18,467 |
Total assets | $320,817,975 |
Liabilities | |
Payables for | |
Distributions | $88,207 |
Net daily variation margin on open futures contracts | 78,730 |
Investments purchased | 758,092 |
When-issued investments purchased | 113,575 |
Payable to affiliates | |
Investment adviser | 9,481 |
Administrative services fee | 306 |
Transfer agent and dividend disbursing costs | 1,999 |
Payable for independent Trustees' compensation | 15 |
Accrued expenses and other liabilities | 149,332 |
Total liabilities | $1,199,737 |
Net assets | $319,618,238 |
Net assets consist of | |
Paid-in capital | $344,954,397 |
Total distributable earnings (loss) | (25,336,159) |
Net assets | $319,618,238 |
Shares of beneficial interest outstanding (unlimited number of shares authorized) | 113,798,238 |
Net asset value per share (net assets of $319,618,238 / 113,798,238 shares of beneficial interest outstanding) | $2.81 |
Net investment income (loss) | |
Income | |
Interest | $11,240,872 |
Dividends from affiliated issuers | 1,332,801 |
Total investment income | $12,573,673 |
Expenses | |
Management fee | $1,770,850 |
Transfer agent and dividend disbursing costs | 76,225 |
Administrative services fee | 56,638 |
Independent Trustees' compensation | 10,960 |
Stock exchange fee | 111,190 |
Custodian fee | 23,031 |
Shareholder communications | 134,067 |
Audit and tax fees | 97,628 |
Legal fees | 7,931 |
Miscellaneous | 45,485 |
Total expenses | $2,334,005 |
Net investment income (loss) | $10,239,668 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $(1,297,758) |
Affiliated issuers | 3,949 |
Futures contracts | 462,653 |
Net realized gain (loss) | $(831,156) |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $18,195,829 |
Affiliated issuers | (1,073) |
Futures contracts | (291,103) |
Net unrealized gain (loss) | $17,903,653 |
Net realized and unrealized gain (loss) | $17,072,497 |
Change in net assets from operations | $27,312,165 |
Year ended | ||
10/31/24 | 10/31/23 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $10,239,668 | $9,217,321 |
Net realized gain (loss) | (831,156) | (6,701,513) |
Net unrealized gain (loss) | 17,903,653 | 7,131,199 |
Change in net assets from operations | $27,312,165 | $9,647,007 |
Distributions to shareholders | $(10,586,303) | $(9,780,059) |
Tax return of capital distributions to shareholders | $(17,058,539) | $(19,197,187) |
Change in net assets from fund share transactions | $(554,096) | $(2,444,698) |
Total change in net assets | $(886,773) | $(21,774,937) |
Net assets | ||
At beginning of period | 320,505,011 | 342,279,948 |
At end of period | $319,618,238 | $320,505,011 |
Year ended | |||||
10/31/24 | 10/31/23 | 10/31/22 | 10/31/21 | 10/31/20 | |
Net asset value, beginning of period | $2.81 | $2.98 | $3.64 | $3.95 | $4.04 |
Income (loss) from investment operations | |||||
Net investment income (loss) (d) | $0.09 | $0.08 | $0.07 | $0.08 | $0.09 |
Net realized and unrealized gain (loss) | 0.15 | 0.00(w) | (0.44) | (0.06) | 0.16 |
Total from investment operations | $0.24 | $0.08 | $(0.37) | $0.02 | $0.25 |
Less distributions declared to shareholders | |||||
From net investment income | $(0.09) | $(0.08) | $(0.08) | $(0.10) | $(0.11) |
From net realized gain | — | — | — | (0.03) | (0.04) |
From tax return of capital | (0.15) | (0.17) | (0.21) | (0.20) | (0.19) |
Total distributions declared to shareholders | $(0.24) | $(0.25) | $(0.29) | $(0.33) | $(0.34) |
Net increase from repurchase of capital shares | $0.00(w) | $0.00(w) | $0.00(w) | $— | $0.00(w) |
Net asset value, end of period (x) | $2.81 | $2.81 | $2.98 | $3.64 | $3.95 |
Market value, end of period | $2.73 | $2.58 | $2.75 | $3.63 | $3.73 |
Total return at market value (%) | 15.71 | 2.73 | (16.98) | 6.18 | 8.24 |
Total return at net asset value (%) (j)(r)(s)(x) | 9.35 | 3.26 | (10.29) | 0.54 | 6.96 |
Ratios (%) (to average net assets) and Supplemental data: | |||||
Expenses | 0.72 | 0.69 | 0.65 | 0.62 | 0.64 |
Net investment income (loss) | 3.15 | 2.72 | 2.16 | 2.08 | 2.33 |
Portfolio turnover rate | 20 | 15 | 16 | 20 | 43 |
Net assets at end of period (000 omitted) | $319,618 | $320,505 | $342,280 | $422,382 | $457,844 |
(d) | Per share data is based on average shares outstanding. |
(j) | Total return at net asset value is calculated using the net asset value of the fund, not the publicly traded price and therefore may be different than the total return at market value. |
(r) | Certain expenses have been reduced without which performance would have been lower. |
(s) | From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values and total returns at net asset value have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents | $— | $85,327,970 | $— | $85,327,970 |
Non - U.S. Sovereign Debt | — | 3,616,405 | — | 3,616,405 |
Municipal Bonds | — | 14,845,490 | — | 14,845,490 |
U.S. Corporate Bonds | — | 121,920,343 | — | 121,920,343 |
Residential Mortgage-Backed Securities | — | 10,175,185 | — | 10,175,185 |
Commercial Mortgage-Backed Securities | — | 7,347,779 | — | 7,347,779 |
Asset-Backed Securities (including CDOs) | — | 15,249,058 | — | 15,249,058 |
Foreign Bonds | — | 50,900,326 | — | 50,900,326 |
Mutual Funds | 8,831,354 | — | — | 8,831,354 |
Total | $8,831,354 | $309,382,556 | $— | $318,213,910 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $406,937 | $— | $— | $406,937 |
Futures Contracts – Liabilities | (1,537,011) | — | — | (1,537,011) |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Futures Contracts | $406,937 | $(1,537,011) |
(a) | Values presented in this table for futures contracts correspond to the values reported in the Portfolio of Investments. Only the current day net variation margin for futures contracts is reported separately within the Statement of Assets and Liabilities. |
Risk | Futures Contracts |
Interest Rate | $462,653 |
Risk | Futures Contracts |
Interest Rate | $(291,103) |
Year ended 10/31/24 | Year ended 10/31/23 | |
Ordinary income (including any short-term capital gains) | $10,586,303 | $9,780,059 |
Tax return of capital (b) | 17,058,539 | 19,197,187 |
Total distributions | $27,644,842 | $28,977,246 |
(b) | Distributions in excess of tax basis earnings and profits are reported in the financial statements as a tax return of capital. |
As of 10/31/24 | |
Cost of investments | $330,615,523 |
Gross appreciation | 1,816,866 |
Gross depreciation | (15,348,553) |
Net unrealized appreciation (depreciation) | $(13,531,687) |
Capital loss carryforwards | (11,716,265) |
Other temporary differences | (88,207) |
Total distributable earnings (loss) | $(25,336,159) |
Short-Term | $(1,654,137) |
Long-Term | (10,062,128) |
Total | $(11,716,265) |
Purchases | Sales | |
U.S. Government securities | $17,726,600 | $18,954,166 |
Non-U.S. Government securities | 43,170,697 | 42,152,452 |
Year ended 10/31/24 | Year ended 10/31/23 | ||||
Shares | Amount | Shares | Amount | ||
Capital shares repurchased | (213,332) | $(554,096) | (886,201) | $(2,444,698) |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $30,216,448 | $72,408,048 | $93,796,018 | $3,949 | $(1,073) | $8,831,354 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $1,332,801 | $— |
Number of Shares | ||||
Nominee | For | Against/Withheld | ||
John A. Caroselli | 73,100,453.091 | 10,166,782.374 | ||
James W. Kilman, Jr. | 73,245,086.091 | 10,022,149.374 | ||
Clarence Otis, Jr. | 73,078,400.709 | 10,188,834.756 |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Term Expiring | Number of MFS Funds overseen by the Trustee | Principal Occupations During the Past Five Years | Other Directorships During the Past Five Years (j) | ||||||
INTERESTED TRUSTEE | ||||||||||||
Michael W. Roberge (k) (age 58) | Trustee | January 2021 | 2026 | 135 | Massachusetts Financial Services Company, Chairman (since January 2021); Chief Executive Officer (since January 2017); Director; Chairman of the Board (since January 2022) | N/A | ||||||
INDEPENDENT TRUSTEES | ||||||||||||
John P. Kavanaugh (age 70) | Trustee and Chair of Trustees | January 2009 | 2026 | 135 | Private investor | N/A | ||||||
Steven E. Buller (age 73) | Trustee | February 2014 | 2026 | 135 | Private investor | N/A | ||||||
John A. Caroselli (age 70) | Trustee | March 2017 | 2027 | 135 | Private investor; JC Global Advisors, LLC (management consulting), President (since 2015) | N/A | ||||||
Maureen R. Goldfarb (age 69) | Trustee | January 2009 | 2025 | 135 | Private investor | N/A | ||||||
Peter D. Jones (age 69) | Trustee | January 2019 | 2026 | 135 | Private investor | N/A | ||||||
James W. Kilman, Jr. (age 63) | Trustee | January 2019 | 2027 | 135 | Burford Capital Limited (finance and investment management), Senior Advisor (since 2021), Chief Financial Officer (2019 - 2021); KielStrand Capital LLC (family office), Chief Executive Officer (since 2016) | Alpha-En Corporation, Director (2016-2019) |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Term Expiring | Number of MFS Funds overseen by the Trustee | Principal Occupations During the Past Five Years | Other Directorships During the Past Five Years (j) | ||||||
Clarence Otis, Jr. (age 68) | Trustee | March 2017 | 2027 | 135 | Private investor | VF Corporation, Director; Verizon Communications, Inc., Director; The Travelers Companies, Director | ||||||
Maryanne L. Roepke (age 68) | Trustee | May 2014 | 2025 | 135 | Private investor | N/A | ||||||
Laurie J. Thomsen (age 67) | Trustee | March 2005 | 2025 | 135 | Private investor | The Travelers Companies, Director; Dycom Industries, Inc., Director |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Term Expiring | Number of MFS Funds overseen by the Trustee | Principal Occupations During the Past Five Years | |||||
OFFICERS | ||||||||||
William T. Allen (k) (age 57) | Deputy Assistant Treasurer | April 2024 | N/A | 135 | Massachusetts Financial Services Company, Vice President | |||||
Brian Balasco (k) (age 46) | Assistant Treasurer | April 2024 | N/A | 135 | Massachusetts Financial Services Company, Vice President | |||||
Christopher R. Bohane (k) (age 50) | Assistant Secretary and Assistant Clerk | July 2005 | N/A | 135 | Massachusetts Financial Services Company, Senior Vice President and Deputy General Counsel | |||||
James L. Byrne (k) (age 48) | Assistant Treasurer | April 2024 | N/A | 135 | Massachusetts Financial Services Company, Vice President | |||||
John W. Clark, Jr. (k) (age 57) | Deputy Treasurer | April 2017 | N/A | 135 | Massachusetts Financial Services Company, Vice President | |||||
David L. DiLorenzo (k) (age 56) | President | July 2005 | N/A | 135 | Massachusetts Financial Services Company, Senior Vice President | |||||
Heidi W. Hardin (k) (age 57) | Secretary and Clerk | April 2017 | N/A | 135 | Massachusetts Financial Services Company, Executive Vice President and General Counsel |
Name, Age | Position(s) Held with Fund | Trustee/Officer Since(h) | Term Expiring | Number of MFS Funds overseen by the Trustee | Principal Occupations During the Past Five Years | |||||
Brian E. Langenfeld (k) (age 51) | Assistant Secretary and Assistant Clerk | June 2006 | N/A | 135 | Massachusetts Financial Services Company, Vice President and Managing Counsel | |||||
Rosa E. Licea-Mailloux (k) (age 48) | Chief Compliance Officer | March 2022 | N/A | 135 | Massachusetts Financial Services Company, Vice President (since 2018); Director of Corporate Compliance (2018-2021), Senior Director Compliance (2021-2022), Senior Managing Director of North American Compliance & Chief Compliance Officer (since March 2022) | |||||
Amanda S. Mooradian (k) (age 45) | Assistant Secretary and Assistant Clerk | September 2018 | N/A | 135 | Massachusetts Financial Services Company, Vice President and Senior Counsel | |||||
Susan A. Pereira (k) (age 54) | Assistant Secretary and Assistant Clerk | July 2005 | N/A | 135 | Massachusetts Financial Services Company, Vice President and Managing Counsel | |||||
Kasey L. Phillips (k) (age 53) | Treasurer | September 2012 | N/A | 135 | Massachusetts Financial Services Company, Vice President | |||||
Matthew A. Stowe (k) (age 50) | Assistant Secretary and Assistant Clerk | October 2014 | N/A | 135 | Massachusetts Financial Services Company, Senior Vice President and Senior Managing Counsel | |||||
William B. Wilson (k) (age 42) | Assistant Secretary and Assistant Clerk | October 2022 | N/A | 135 | Massachusetts Financial Services Company, Assistant Vice President and Senior Counsel |
(h) | Date first appointed to serve as Trustee/Officer of an MFS Fund. Each Trustee has served continuously since appointment unless indicated otherwise. From January 2012 through December 2016, Mr. DiLorenzo served as Treasurer of the Funds. From September 2012 through March 2024, Ms. Phillips served as Assistant Treasurer of the Funds. From April 2017 through March 2024, Mr. Clark served as Assistant Treasurer of the Funds. |
(j) | Directorships or trusteeships of companies required to report to the Securities and Exchange Commission (i.e., “public companies”). |
(k) | “Interested person” of the Trust within the meaning of the Investment Company Act of 1940 (referred to as the 1940 Act), which is the principal federal law governing investment companies like the fund, as a result of a position with MFS. The address of MFS is 111 Huntington Avenue, Boston, Massachusetts 02199-7618. |
Investment Adviser | Custodian |
Massachusetts Financial Services Company 111 Huntington Avenue Boston, MA 02199-7618 | State Street Bank and Trust Company 1 Congress Street, Suite 1 Boston, MA 02114-2016 |
Portfolio Manager(s) | Independent Registered Public Accounting Firm |
Geoffrey Schechter Alexander Mackey Jake Stone | Deloitte & Touche LLP 115 Federal Street Boston, MA 02110 |
FACTS | WHAT DOES MFS DO WITH YOUR PERSONAL INFORMATION? |
Why? | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. |
What? | The types of personal information we collect and share depend on the product or service you have with us. This information can include: |
• Social Security number and account balances | |
• Account transactions and transaction history | |
• Checking account information and wire transfer instructions | |
When you are no longer our customer, we continue to share your information as described in this notice. |
How? | All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons MFS chooses to share; and whether you can limit this sharing. |
Reasons we can share your personal information | Does MFS share? | Can you limit this sharing? |
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus | Yes | No |
For our marketing purposes – to offer our products and services to you | No | We don't share |
For joint marketing with other financial companies | No | We don't share |
For our affiliates' everyday business purposes – information about your transactions and experiences | No | We don't share |
For our affiliates' everyday business purposes – information about your creditworthiness | No | We don't share |
For nonaffiliates to market to you | No | We don't share |
Questions? | Call 800-225-2606 or go to mfs.com. |
Who we are | |
Who is providing this notice? | MFS Funds, MFS Investment Management, MFS Institutional Advisors, Inc., and MFS Heritage Trust Company. |
What we do | |
How does MFS protect my personal information? | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include procedural, electronic, and physical safeguards for the protection of the personal information we collect about you. |
How does MFS collect my personal information? | We collect your personal information, for example, when you |
• open an account or provide account information | |
• direct us to buy securities or direct us to sell your securities | |
• make a wire transfer | |
We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. | |
Why can't I limit all sharing? | Federal law gives you the right to limit only |
• sharing for affiliates' everyday business purposes – information about your creditworthiness | |
• affiliates from using your information to market to you | |
• sharing for nonaffiliates to market to you | |
State laws and individual companies may give you additional rights to limit sharing. |
Definitions | |
Affiliates | Companies related by common ownership or control. They can be financial and nonfinancial companies. |
• MFS does not share personal information with affiliates, except for everyday business purposes as described on page one of this notice. | |
Nonaffiliates | Companies not related by common ownership or control. They can be financial and nonfinancial companies. |
• MFS does not share with nonaffiliates so they can market to you. | |
Joint marketing | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. |
• MFS doesn't jointly market. |
Other important information |
If you own an MFS product or receive an MFS service in the name of a third party such as a bank or broker-dealer, their privacy policy may apply to you instead of ours. |
Item 1(b):
A copy of the notice transmitted to the Registrant’s shareholders in reliance on Rule 30e-3 of the Investment Company Act of 1940, as amended that contains disclosure specified by paragraph (c)(3) of Rule 30e-3 is attached hereto as EX-99.30e-3Notice.
ITEM 2. CODE OF ETHICS.
The Registrant has adopted a Code of Ethics (the “Code”) pursuant to Section 406 of the Sarbanes-Oxley Act and as defined in Form N-CSR that applies to the Registrant’s principal executive officer and principal financial and accounting officer. During the period covered by this report, the Registrant has not amended any provision in the Code that relates to an element of the Code’s definition enumerated in paragraph
(b)of Item 2 of this Form N-CSR. During the period covered by this report, the Registrant did not grant a waiver, including an implicit
waiver, from any provision of the Code. David L. DiLorenzo (Principal Executive Officer) and James O. Yost (Principal Financial Officer) were the two persons covered by the Code prior to April 1, 2024. Beginning April 1, 2024, David L. DiLorenzo (Principal Executive Officer) and Kasey L. Phillips (Principal Financial Officer) are the two persons covered by the Code.
A copy of the Code is attached hereto as EX-99.COE.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Messrs. Steven E. Buller and Clarence Otis, Jr., members of the Audit Committee, have been determined by the Board of Trustees in their reasonable business judgment to meet the definition of “audit committee financial expert” as such term is defined in Form N-CSR. In addition, Messrs. Buller and Otis are “independent” members of the Audit Committee (as such term has been defined by the Securities and Exchange Commission in regulations implementing Section 407 of the Sarbanes-Oxley Act of 2002). The Securities and Exchange Commission has stated that the designation of a person as an audit committee financial expert pursuant to this Item 3 on the Form N-CSR does not impose on such a person any duties, obligations or liability that are greater than the duties, obligations or liability imposed on such person as a member of the Audit Committee and the Board of Trustees in the absence of such designation or identification.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Items 4(a) through 4(d) and 4(g):
The Board of Trustees has appointed Deloitte & Touche LLP (“Deloitte”) to serve as independent accountants to the Registrant (hereinafter the “Registrant” or the “Fund”). The tables below set forth the audit fees billed to the Fund as well as fees for non-audit services provided to the Fund and/or to the Fund’s investment adviser, Massachusetts Financial Services Company (“MFS”) and to various entities either controlling, controlled by, or under common control with MFS that provide ongoing services to the Fund (“MFS Related Entities”).
For the fiscal years ended October 31, 2024 and 2023, audit fees billed to the Fund by Deloitte were as follows:
Fees billed by Deloitte: |
|
Audit Fees |
|
|
2024 |
|
2023 |
MFS Intermediate Income Trust |
74,560 |
|
71,571 |
For the fiscal years ended October 31, 2024 and 2023, fees billed by Deloitte for audit-related, tax and other services provided to the Fund and for audit-related, tax and other services provided to MFS and MFS Related Entities were as follows:
Fees billed by Deloitte: |
Audit-Related Fees1 |
|
Tax Fees2 |
All Other Fees3 |
||||||
|
2024 |
2023 |
|
2024 |
2023 |
2024 |
|
2023 |
||
To MFS Intermediate Income |
10,000 |
10,000 |
|
0 |
0 |
|
0 |
|
0 |
|
Trust |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fees billed by Deloitte: |
Audit-Related Fees1 |
|
Tax Fees2 |
All Other Fees3 |
||||||
|
2024 |
2023 |
|
2024 |
2023 |
2024 |
|
2023 |
||
To MFS and MFS Related |
|
|
|
|
|
|
|
|
|
|
Entities of MFS Intermediate |
0 |
0 |
|
0 |
0 |
|
0 |
|
0 |
|
Income Trust* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Fees Billed by Deloitte: |
|
|
|
Aggregate Fees for Non-audit Services |
|
|||||
|
|
|
|
2024 |
|
|
2023 |
|
||
To MFS Intermediate Income Trust, MFS |
|
|
|
|
|
|
|
|
|
|
and MFS Related Entities# |
|
|
|
27,927 |
|
|
10,000 |
|
*This amount reflects the fees billed to MFS and MFS Related Entities for non-audit services relating directly to the operations and financial reporting of the Fund (portions of which services also related to the operations and financial reporting of other funds within the MFS Funds complex).
# This amount reflects the aggregate fees billed by Deloitte for non-audit services rendered to the Fund and for non- audit services rendered to MFS and the MFS Related Entities. If applicable the fees are converted to USD as of the payment date.
1 The fees included under “Audit-Related Fees” are fees related to assurance and related services that are reasonably related to the performance of the audit or review of financial statements, but not reported under ‘‘Audit Fees,’’ including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters and internal control reviews.
2 The fees included under “Tax Fees” are fees associated with tax compliance, tax advice and tax planning, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews and tax distribution and analysis.
3 The fees included under “All Other Fees” are fees for products and services provided by Deloitte other than those reported under “Audit Fees,” “Audit-Related Fees” and “Tax Fees,” including fees for services related to review of internal controls and review of Rule 38a-1 compliance program.
Item 4(e)(1):
Set forth below are the policies and procedures established by the Audit Committee of the Board of Trustees relating to the pre-approval of audit and non-audit related services:
To the extent required by applicable law, pre-approval by the Audit Committee of the Board is needed for all audit and permissible non-audit services rendered to the Fund and all permissible non-audit services rendered to MFS or MFS Related Entities if the services relate directly to the operations and financial reporting of the Registrant. Pre- approval is currently on an engagement-by-engagement basis. In the event pre-approval of such services is necessary between regular meetings of the Audit Committee and it is not practical to wait to seek pre-approval at the next regular meeting of the Audit Committee, pre-approval of such services may be referred to the Chair of the Audit Committee for approval; provided that the Chair may not pre-approve any individual engagement for such services exceeding $50,000 or multiple engagements for such services in the aggregate exceeding $100,000 between such regular meetings of the Audit Committee. Any engagement pre-approved by the Chair between regular meetings of the Audit Committee shall be presented for ratification by the entire Audit Committee at its next regularly scheduled meeting.
Item 4(e)(2):
None, or 0%, of the services relating to the Audit-Related Fees, Tax Fees and All Other Fees paid by the Fund and MFS and MFS Related Entities relating directly to the operations and financial reporting of the Registrant disclosed above were approved by the audit committee pursuant to paragraphs (c)(7)(i)(C) of Rule 2-01 of Regulation S-X (which permits audit committee approval after the start of the engagement with respect to services other than audit, review or attest services, if certain conditions are satisfied).
Item 4(f):
Not applicable.
Item 4(h):
The Registrant’s Audit Committee has considered whether the provision by a Registrant’s independent registered public accounting firm of non-audit services to MFS and MFS Related Entities that were not pre-approved by the Committee (because such services were provided prior to the effectiveness of SEC rules requiring pre-approval or because such services did not relate directly to the operations and financial reporting of the Registrant) was compatible with maintaining the independence of the independent registered public accounting firm as the Registrant’s principal auditors.
Item 4(i):
Not applicable.
Item 4(j):
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The Registrant has an Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. Effective January 1, 2024, the members of the Audit Committee are Messrs. Steven E. Buller, John A. Caroselli, Peter D. Jones, and Clarence Otis, Jr.
ITEM 6. INVESTMENTS
A schedule of investments of the Registrant is included as part of the report to shareholders of the Registrant under Item 1(a) of this Form N-CSR.
ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 10. RENUMERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the Registrant.
ITEM 11. STATEMENT REGARDING BASES FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.
Not applicable.
ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A copy of the proxy voting policies and procedures are attached hereto as Ex-99.PROXYPOL.
ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT
INVESTMENT COMPANIES.
Portfolio Manager(s)
Information regarding the portfolio manager(s) of the MFS Intermediate Income Trust (the "Fund") is set forth below. Each portfolio manager is primarily responsible for the day-to-day management of the Fund.
Geoffrey Schechter has announced his intention to retire effective September 30, 2025, and he will no longer be a portfolio manager of the fund as of that date.
Portfolio Manager |
Primary Role |
Since |
Title and Five Year History |
Geoffrey Schechter |
Lead Portfolio Manager |
2017 |
Investment Officer of MFS; employed in the investment |
|
|
|
area of MFS since 1993 |
Alexander Mackey |
Investment Grade Debt Instruments Portfolio |
2017 |
Co-Chief Investment Officer-Global Fixed Income of MFS; |
|
Manager |
|
employed in the investment area of MFS since 2001 |
Jake Stone |
U.S. Government Securities Portfolio Manager |
2023 |
Investment Officer of MFS; employed in the investment |
|
|
|
area of MFS since July 2018 |
Compensation
MFS’ philosophy is to align portfolio manager compensation with the goal to provide shareholders with long-term value through a collaborative investment process. Therefore, MFS uses long-term investment performance as well as contribution to the overall investment process and collaborative culture as key factors in determining portfolio manager compensation. In addition, MFS seeks to maintain total compensation programs that are competitive in the asset management industry in each geographic market where it has employees. MFS uses competitive compensation data to ensure that compensation practices are aligned with its goals of attracting, retaining, and motivating the highest-quality professionals.
MFS reviews portfolio manager compensation annually. In determining portfolio manager compensation, MFS uses quantitative means and qualitative means to help ensure a durable investment process. As of December 31, 2023, portfolio manager total cash compensation is a combination of base salary and performance bonus:
Base Salary – Base salary generally represents a smaller percentage of portfolio manager total cash compensation than performance bonus. Performance Bonus – Generally, the performance bonus represents more than a majority of portfolio manager total cash compensation.
With respect to each portfolio manager except Mr. Alexander Mackey, the performance bonus is based on a combination of quantitative and qualitative factors, generally with more weight given to the former and less weight given to the latter. The quantitative portion is primarily based on the pre-tax performance of accounts managed by the portfolio manager over a range of fixed-length time periods, intended to provide the ability to assess performance over time periods consistent with a full market cycle and a strategy's investment horizon. The fixed- length time periods include the portfolio manager's full tenure on each Fund/strategy and, when available, 10-, 5-, and 3-year periods. For portfolio managers who have served for less than three years, shorter-term periods, including the one-year period, will also be considered, as will performance in previous roles, if any, held at the firm. Emphasis is generally placed on longer performance periods when multiple performance periods are available. Performance is evaluated across the full set of strategies and portfolios managed by a given portfolio manager, relative to appropriate peer group universes and/or representative indices (“benchmarks”). As of December 31, 2023, the following benchmarks were used to measure the following portfolio manager's performance for the Fund:
Fund |
Portfolio Manager |
Benchmark(s) |
MFS Intermediate Income Trust |
Geoffrey Schechter |
Bloomberg U.S. Intermediate Government/Credit Bond Index |
|
Jake Stone |
Bloomberg U.S. Intermediate Government/Credit Bond Index |
Benchmarks may include versions and components of indices, custom indices, and linked indices that combine performance of different indices for different portions of the time period, where appropriate.
The qualitative portion is based on the results of an annual internal peer review process (where portfolio managers are evaluated by other portfolio managers, analysts, and traders) and management’s assessment of overall portfolio manager contributions to the MFS investment process and the client experience (distinct from fund and other account performance).
The performance bonus may be in the form of cash and/or a deferred cash award, at the discretion of management. A deferred cash award is issued for a cash value and becomes payable over a three-year vesting period if the portfolio manager remains in the continuous employ of MFS or its affiliates. During the vesting period, the value of the unfunded deferred cash award will fluctuate as though the portfolio manager had invested the cash value of the award in an MFS fund(s) selected by the portfolio manager. A selected fund may, but is not required to, be a fund that is managed by the portfolio manager.
With respect to Mr. Alexander Mackey, his compensation reflects his broader role within MFS as Co-Chief Investment Officer-Global Fixed Income in addition to being a portfolio manager. His performance bonus is based on a combination of quantitative and qualitative factors, generally with more weight given to the former and less weight given to the latter. The quantitative portion is based on overall group
investment performance and business performance metrics. The qualitative portion is based on the results of an annual internal review process conducted by the Chief Investment Officer which takes into account his broad leadership responsibilities. This performance bonus is in the form of cash and/or a deferred cash award. A deferred cash award is issued for a cash value and becomes payable over a three-year vesting period if the portfolio manager remains in the continuous employ of MFS or its affiliates. During the vesting period, the value of the unfunded deferred cash award will fluctuate as though the portfolio manager had invested the cash value of the award in an MFS fund(s) selected by the portfolio manager. A selected fund may, but is not required to, be a fund that is managed by the portfolio manager.
MFS Equity Plan – Portfolio managers also typically benefit from the opportunity to participate in the MFS Equity Plan. Equity interests are awarded by management, on a discretionary basis, taking into account tenure at MFS, contribution to the investment process, and other factors.
Finally, portfolio managers also participate in benefit plans (including a defined contribution plan and health and other insurance plans) and programs available generally to other employees of MFS. The percentage such benefits represent of any portfolio manager’s compensation depends upon the length of the individual’s tenure at MFS and salary level, as well as other factors.
Ownership of Fund Shares
The following table shows the dollar range of equity securities of the Fund beneficially owned by the Fund’s portfolio manager(s) as of the Fund's fiscal year ended October 31, 2024. The following dollar ranges apply:
N. None
A. $1 – $10,000
B. $10,001 – $50,000
C. $50,001 – $100,000
D. $100,001 – $500,000
E. $500,001 – $1,000,000
F. Over $1,000,000
Name of Portfolio Manager |
Dollar Range of Equity Securities in Fund |
Geoffrey Schechter |
N |
Alexander Mackey |
N |
Jake Stone |
N |
Other Accounts
In addition to the Fund, each portfolio manager of the Fund is named as a portfolio manager of certain other accounts managed or sub- advised by MFS or an affiliate. The number and assets of these accounts were as follows as of the Fund's fiscal year ended October 31, 2024:
|
Registered Investment Companies* |
Other Pooled Investment Vehicles |
Other Accounts |
|||
Name |
Number of Accounts |
Total |
Number of |
Total Assets |
Number of |
Total Assets |
|
|
Assets |
Accounts |
|
Accounts |
|
Geoffrey Schechter |
15 |
$21.6 billion |
4 |
$720.1 million |
5 |
$810.2 million |
|
|
|
|
|
|
|
Alexander Mackey |
18 |
$38.9 billion |
5 |
$3.3 billion |
5 |
$468.0 million |
|
|
|
|
|
|
|
Jake Stone |
6 |
$6.4 billion |
3 |
$525.7 million |
0 |
N/A |
*Includes the Fund
Advisory fees are not based upon performance of any of the accounts identified in the table above.
Potential Conflicts of Interest
MFS seeks to identify potential conflicts of interest resulting from a portfolio manager’s management of both the Fund and other accounts, and has adopted policies and procedures reasonably designed to address such potential conflicts. There is no guarantee that MFS will be successful in identifying or mitigating conflicts of interest.
The management of multiple funds and accounts (including accounts in which MFS, an affiliate, an employee, an officer, or a director has an interest) gives rise to conflicts of interest if the funds and accounts have different objectives and strategies, benchmarks, time horizons, and fees, as a portfolio manager must allocate his or her time and investment ideas across multiple funds and accounts. In certain instances, there are securities which are suitable for the Fund’s portfolio as well as for one or more other accounts advised by MFS or its subsidiaries (including accounts in which MFS, an affiliate, an employee, an officer, or a director has an interest). MFS' trade allocation policies could have a detrimental effect on the Fund if the Fund’s orders do not get fully executed or are delayed in getting executed due to being aggregated with those of other accounts advised by MFS or its subsidiaries. A portfolio manager may execute transactions for another fund or account that may adversely affect the value of the Fund’s investments. Investments selected for funds or accounts other than the Fund may outperform investments selected for the Fund.
When two or more accounts are simultaneously engaged in the purchase or sale of the same security, the securities are allocated among
clients in a manner believed by MFS to be fair and equitable to each over time. Allocations may be based on many factors and may not always be pro rata based on assets managed. The allocation methodology could have a detrimental effect on the price or availability of a security with respect to the Fund.
MFS and/or a portfolio manager may have a financial incentive to allocate favorable or limited opportunity investments or structure the timing of investments to favor accounts other than the Fund; for instance, those that pay a higher advisory fee and/or have a performance adjustment, those that include an investment by the portfolio manager, and/or those in which MFS, its affiliates, its employees, its officers, and/or its directors own or have an interest.
To the extent permitted by applicable law, certain accounts may invest their assets in other accounts advised by MFS or its affiliates, including accounts that are advised by one or more of the same portfolio manager(s), which could result in conflicts of interest relating to asset allocation, timing of purchases and redemptions, and increased profitability for MFS, its affiliates, and/or its personnel, including portfolio managers.
ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
MFS Intermediate Income Trust
|
|
|
|
(c) Total |
(d) Maximum |
|
|
|
|
Number of |
Number (or |
|
|
(a) Total number |
(b) |
Shares |
Approximate |
|
Period |
of Shares |
Average |
Purchased as |
Dollar Value) of |
|
|
Purchased |
Price Paid |
Part of Publicly |
Shares that May |
|
|
|
per Share |
Announced |
Yet Be Purchased |
|
|
|
|
Plans or |
under the Plans |
|
|
|
|
Programs |
or Programs |
|
|
|
|
|
|
|
11/01/23-11/30/23 |
0 |
N/A |
0 |
11,224,711 |
|
12/01/23-12/31/23 |
0 |
N/A |
0 |
11,224,711 |
|
01/01/24-01/31/24 |
0 |
N/A |
0 |
11,224,711 |
|
02/01/24-02/28/24 |
0 |
N/A |
0 |
11,224,711 |
|
03/01/24-03/31/24 |
0 |
N/A |
0 |
11,224,711 |
|
04/01/24-04/30/24 |
213,332 |
2.60 |
213,332 |
11,011,379 |
|
05/01/24-05/31/24 |
0 |
N/A |
0 |
11,011,379 |
|
06/01/24-06/30/24 |
0 |
N/A |
0 |
11,011,379 |
|
07/01/24-07/31/24 |
0 |
N/A |
0 |
11,011,379 |
|
08/01/24- 8/31/24 |
0 |
N/A |
0 |
11,011,379 |
|
09/01/24-09/30/24 |
0 |
N/A |
0 |
11,011,379 |
|
10/01/24-10/31/24 |
0 |
N/A |
0 |
11,379,823 |
|
Total |
213,332 |
2.60 |
213,332 |
|
|
|
|
|
|
|
Note: The Board approved procedures to repurchase shares and reviews the results periodically. The notification to shareholders of the program is part of the semi-annual and annual reports sent to shareholders. These annual programs begin on October 1st of each year. The programs conform to the conditions of Rule 10b-18 of the Securities Exchange Act of 1934 and limit the aggregate number of shares that may be purchased in each annual period (October 1 through the following September 30) to 10% of the Registrant’s outstanding shares as of the first day of the plan year (October 1). The aggregate number of shares available for purchase for the October 1, 2024 plan year is 11,379,823.
86121
ITEM 15. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There were no material changes to the procedures by which shareholders may send recommendations to the Board for nominees to the Registrant’s Board since the Registrant last provided disclosure as to such procedures in response to the requirements of Item 407 (c)(2)(iv) of Regulation S-K or this Item.
ITEM 16. CONTROLS AND PROCEDURES.
(a)Based upon their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as conducted within 90 days of the filing date of this report on Form N-CSR, the Registrant’s principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the Registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.
(b)There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the period covered by the report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
ITEM 17. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
During the fiscal year ended October 31, 2024, there were no fees or income related to securities lending activities of the Registrant.
ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.
Not applicable.
ITEM 19. EXHIBITS.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Attached hereto as EX-99.COE.
(2)A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto as EX-99.302CERT.
(3)Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable.
(4)Change in the registrant’s independent public accountant. Not applicable.
(b)If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for the purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Attached hereto as EX-99.906CERT.
(c)Registrant’s Rule 30e-3 Notice pursuant to Item 1(b) of Form N-CSR. Attached hereto as EX-99.30e-3Notice.
(d)Proxy Voting Policies and Procedures pursuant to Item 7 of Form N-CSR. Attached hereto as EX-99.PROXYPOL.
(e) Notices to Trust’s common shareholders in accordance with Investment Company Act Section 19(a) and Rule 19a-1. Attached hereto as
Notice
A copy of the Amended and Restated 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 INCOME TRUST
By (Signature and Title)*
/S/ DAVID L. DILORENZO
David L. DiLorenzo, President
Date: December 13, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)*
/S/ DAVID L. DILORENZO
David L. DiLorenzo, President (Principal Executive Officer)
Date: December 13, 2024
By (Signature and Title)*
/S/ KASEY L. PHILLIPS
Kasey L. Phillips, Treasurer (Principal Financial Officer and Accounting Officer) Date: December 13, 2024
* Print name and title of each signing officer under his or her signature.
EX-99.COE
Code of Ethics for Principal Executive and Principal Financial Officers
Effective April 1, 2024
Policy Purpose and Summary
Section 406 of the Sarbanes-Oxley Act requires that each MFS Fund registered under the Investment Company Act of 1940 disclose whether or not it has adopted a code of ethics for senior financial officers, applicable to its principal financial officer and principal accounting officer.
I.Overview
A. Covered Officers/Purpose of the Code
This code of ethics (this “Code”) has been adopted by the funds (collectively, “Funds” and each, “Fund”) under supervision of the MFS Funds Board (the “Board”) and applies to the Funds’ Principal Executive Officer and Principal Financial Officer (the “Covered Officers” each of whom is set forth in Exhibit A) for the purpose of promoting:
•honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
•full, fair, accurate, timely and understandable disclosure in reports and documents that the Funds file with, or submit to, the Securities and Exchange Commission (“SEC”) and in other public communications made by the Funds;
•compliance by the Funds with applicable laws and governmental rules and regulations;
•the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and
•accountability for adherence to the Code.
B. Conduct Guidelines
Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. In addition, each Covered Officer should not place his or her personal interests ahead of the Funds’ interests and should endeavor to act honestly and ethically. In furtherance of the foregoing, each Covered Officer must:
•not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting for any Fund whereby the Covered Officer would benefit personally to the detriment of the Fund; and
•not cause a Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Fund.
The following activities, which could create the appearance of a conflict of interest, are permitted only with the approval of the Funds’ Chief Legal Officer (“CLO”):
•service as a director on the board of any “for profit” company other than the board of the Funds' investment adviser or its subsidiaries or board of a pooled investment vehicle sponsored by the Funds' investment adviser or its subsidiaries;
•running for political office;
•the receipt of any Fund business-related gift or any entertainment from any company with which a Fund has current or prospective business dealings unless such gift or entertainment is permitted by the gifts and entertainment policy of the Funds' investment adviser;
•any material ownership interest in, or any consulting or employment relationship with, any Fund service providers (e.g., custodian banks, audit firms), other than the Funds’ investment adviser, principal underwriter, administrator or any affiliated person thereof;
•a direct or indirect financial interest in commissions, transaction charges or spreads paid by a Fund for effecting portfolio transactions or for selling or redeeming shares, other than an interest arising from the Covered Officer’s employment or securities ownership.
C.Disclosure and Compliance
•Each Covered Officer should familiarize himself or herself with the disclosure requirements generally applicable to the Funds;
•each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about a Fund to others, whether within or outside the Fund, including to the Fund’s trustees and auditors, and to governmental regulators and self-regulatory organizations;
•each Covered Officer should, to the extent appropriate within his or her area of Fund responsibility, consult with other officers and employees of the Funds and the adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds; and
•it is the responsibility of each Covered Officer to promote compliance within his or her area of Fund responsibility with the standards and restrictions imposed by applicable laws, rules and regulations.
D.Reporting and Accountability
Each Covered Officer must:
•upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he or she has received, read, and understands the Code;
•annually thereafter affirm to the Board that he or she has complied with the requirements of the Code;
•annually report to the CLO affiliations and relationships which are or may raise the appearance of a conflict of interest with the Covered Officer’s duties to the Funds, as identified in the annual Trustee and Officer Questionnaire;
•not retaliate against any other Covered Officer or any officer or employee of the Funds or their affiliated persons for reports of potential violations that are made in good faith; and
•notify the CLO promptly if he or she knows of any violation of this Code. Failure to do so is itself a violation of this Code.
The CLO is responsible for applying this Code to specific situations in which questions are presented under it, granting waivers upon consultation with the Board or its designee, investigating violations, and has the authority to interpret this Code in any particular situation. The CLO will report requests for waivers to the Board (or a designee thereof) promptly upon receipt of a waiver request and will periodically report to the Board any approvals granted since the last report.
The CLO will take all appropriate action to investigate any potential violations reported to him or her and to report any violations to the Board. If the Board concurs that a violation has occurred, it will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered Officer.
Any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.
E. Confidentiality
All reports and records prepared or maintained pursuant to this Code and under the direction of the CLO will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Funds’ Board, its counsel, counsel to the Board’s independent trustees and senior management and the board of directors of the Fund’s investment adviser and its counsel.
F. Internal Use
The Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of any Fund, as to any fact, circumstance, or legal conclusion.
II.Supervision
The Board of Trustees of the Funds, including a majority of the Trustees who are not “interested persons” (as defined in the 1940 Act) of the Funds, shall review no less frequently than annually, a report from the CLO regarding the affirmations of the principal executive officer and the principal financial officer as to compliance with this Code.
III.Interpretation and Escalation
Breaches of the Code are reviewed by the CLO and communicated to the Board of Trustees of the affected Fund(s). Interpretations of this Policy shall be made from time to time by the CLO, as needed, and questions regarding the application of this Policy to a specific set of facts are escalated to the CLO.
IV. Authority
Section 406 of the Sarbanes-Oxley Act.
V.Monitoring
Adherence to this policy is monitored by the CLO.
VI. |
Related Policies |
|
This Code shall be the sole code of ethics adopted by the Funds for purposes of |
|
Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to |
|
registered investment companies thereunder. Insofar as other policies or procedures |
|
of the Funds, the Funds’ adviser, principal underwriter, or other service providers |
|
govern or purport to govern the behavior or activities of the Covered Officers who |
|
are subject to this Code, they are superseded by this Code to the extent that they |
|
overlap or conflict with the provisions of this Code. The Funds’ and their investment |
|
adviser’s codes of ethics under Rule 17j-1 under the Investment Company Act and |
|
any other codes or policies or procedures adopted by the Funds or their investment |
|
adviser or other service providers are separate requirements and are not part of this |
|
Code. |
VII. |
Amendment |
|
Any amendments to this Code, other than amendments to Exhibit A, must be |
|
approved or ratified by a majority vote of the Board, including a majority of |
|
independent trustees. |
VIII. |
Recordkeeping |
|
All required books, records and other documentation shall be retained in accordance |
|
with MFS’ related record retention policy. |
Additional procedures may need to be implemented by departments to properly comply with this policy.
Exhibit A
As of April 1, 2024
Persons Covered by this Code of Ethics
Funds’ Principal Executive Officer: David L. DiLorenzo
Funds’ Principal Financial Officer: Kasey L. Phillips
EX-99.302CERT
MFS INTERMEDIATE INCOME TRUST
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act
I, Kasey L. Phillips, certify that:
1.I have reviewed this report on Form N-CSR of MFS Intermediate Income Trust;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by the report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: December 13, 2024
/S/ KASEY L. PHILLIPS
Kasey L. Phillips
Treasurer (Principal Financial Officer and Accounting Officer)
EX-99.302CERT
MFS INTERMEDIATE INCOME TRUST
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act
I, David L. DiLorenzo, certify that:
1.I have reviewed this report on Form N-CSR of MFS Intermediate Income Trust;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by the report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: December 13, 2024
/S/ DAVID L. DILORENZO
David L. DiLorenzo
President (Principal Executive Officer)
EX-99.906CERT
MFS INTERMEDIATE INCOME TRUST
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
I, Kasey L. Phillips, certify that, to my knowledge:
1.The Form N-CSR (the “Report”) of MFS Intermediate Income Trust (the “Registrant”) fully complies for the period covered by the Report with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
Date: December 13, 2024
/S/ KASEY L. PHILLIPS
Kasey L. Phillips
Treasurer (Principal Financial Officer and Accounting Officer)
A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request.
EX-99.906CERT
MFS INTERMEDIATE INCOME TRUST
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
I, David L. DiLorenzo, certify that, to my knowledge:
1.The Form N-CSR (the “Report”) of MFS Intermediate Income Trust (the “Registrant”) fully complies for the period covered by the Report with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
Date: December 13, 2024
/S/ DAVID L. DILORENZO
David L. DiLorenzo
President (Principal Executive Officer)
A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request.
EX-99.30e-3Notice
MFS Intermediate Income Trust
Thank you for being a shareholder. You are encouraged to access and review this important report containing information about the fund, including portfolio holdings and financial statements.
The report is available at:
closedendfunds.mfs.com
This report is available by mail or email upon request free of charge. Reports for the prior reporting period and the fund’s portfolio holdings for its most recent fi rst and third fiscal quarters are also available online and in print by request.
Current and future report delivery requests can be submitted at any time using the options in the right panel.
Why am I receiving this Notice?
The Securities and Exchange Commission adopted new rule 30e-3, which, among other things, allows mutual fund companies to deliver shareholder reports by making such reports accessible at a website address. You still may elect to receive a paper copy of the current report and/or any future reports by following the instructions on the panel on the right-hand side.
001CD80003 : CCS-Letter-75GSM-Plain-white-20/50#
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In accordance with Section 23(c) of the Investment Company Act of 1940, the fund hereby gives notice that it may from time to time repurchase shares of the fund in the open market at the option of the Board of Trustees and on such terms as the Trustees shall determine.
03DCCB
EX-99.PROXYPOL
MASSACHUSETTS FINANCIAL SERVICES COMPANY
PROXY VOTING POLICIES AND PROCEDURES
January 1, 2024
At MFS Investment Management, our core purpose is to create value responsibly. In serving the long-term economic interests of our clients, we rely on deep fundamental research, risk awareness, engagement, and effective stewardship to generate long-term risk-adjusted returns for our clients. A core component of this approach is our proxy voting activity. We believe that robust ownership practices can help protect and enhance long-term shareholder value. Such ownership practices include diligently exercising our voting rights as well as engaging with our issuers on a variety of proxy voting topics. We recognize that environmental, social and governance (“ESG”) issues may impact the long-term value of an investment, and, therefore, we consider ESG issues in light of our fiduciary obligation to vote proxies in what we believe to be in the best long- term economic interest of our clients.
MFS Investment Management and its subsidiaries that perform discretionary investment activities (collectively, “MFS”) have adopted these proxy voting policies and procedures (“MFS Proxy Voting Policies and Procedures”) with respect to securities owned by the clients for which MFS serves as investment adviser and has been delegated the power to vote proxies on behalf of such clients. These clients include pooled investment vehicles sponsored by MFS (an “MFS Fund” or collectively, the “MFS Funds”).
Our approach to proxy voting is guided by the overall principle that proxy voting decisions are made in what MFS believes to be the best long-term economic interests of our clients for which we have been delegated with the authority to vote on their behalf, and not in the interests of any other party, including company management or in MFS' corporate interests, including interests such as the distribution of MFS Fund shares and institutional client relationships. These Proxy Voting Policies and Procedures include voting guidelines that govern how MFS generally will vote on specific matters as well as how we monitor potential material conflicts of interest on the part of MFS that could arise in connection with the voting of proxies on behalf of MFS’ clients.
Our approach to proxy voting is guided by the following additional principles:
1.Consistency in application of the policy across multiple client portfolios: While MFS generally votes consistently on the same matter when securities of an issuer are held by multiple client portfolios, MFS may vote differently on the matter for different client portfolios under certain circumstances. For example, we may vote differently for a client portfolio if we have received explicit voting instructions to vote differently from such client for its own account. Likewise, MFS may vote differently if the portfolio management team responsible for a particular client account believes that a different voting instruction is in the best long-term economic interest of such account.
2.Consistency in application of policy across shareholder meetings in most instances: As a general matter, MFS seeks to vote consistently on similar proxy proposals across all
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shareholder meetings. However, as many proxy proposals (e.g., mergers, acquisitions, and shareholder proposals) are analyzed on a case-by-case basis in light of the relevant facts and circumstances of the issuer and proposal MFS may vote similar proposals differently at different shareholder meetings. In addition, MFS also reserves the right to override the guidelines with respect to a particular proxy proposal when such an override is, in MFS’ best judgment, consistent with the overall principle of voting proxies in the best long-term economic interests of MFS’ clients.
3.Consideration of company specific context and informed by engagement: As noted above MFS will seek to consider a company’s specific context in determining its voting decision. Where there are significant, complex or unusual voting items we may seek to engage with a company before making the vote to further inform our decision. Where sufficient progress has not been made on a particular issue of engagement, MFS may determine a vote against management may be warranted to reflect our concerns and influence for change in the best long-term economic interests of our clients for which MFS has been delegated with the authority to vote on their behalf.
4.Clear decisions to best support issuer processes and decision making: To best support improved issuer decision making we strive to generally provide clear decisions by voting either For or Against each item. We may however vote to Abstain in certain situations if we believe a vote either For or Against may produce a result not in the best long-term economic interests of our clients.
5.Transparency in approach and implementation: In addition to the publication of the MFS Proxy Voting Policies and Procedures on our website, we are open to communicating our vote intention with companies, including ahead of the annual meeting. We may do this proactively where we wish to make our view or corresponding rationale clearly known to the company. Our voting data is reported to clients upon request and publicly on a quarterly and annual basis on our website (under Proxy Voting Records & Reports). For more information about reporting on our proxy voting activities, please refer to Section F below.
A.VOTING GUIDELINES
The following guidelines govern how MFS will generally vote on specific matters presented for shareholder vote. These guidelines are not exhaustive, and MFS may vote on matters not identified below. In such circumstances, MFS will be governed by its general policy to vote in what MFS believes to be in the best long-term economic interest of its clients.
These guidelines are written to apply to the markets and companies where MFS has significant assets invested. There will be markets and companies, such as controlled companies and smaller markets, where local governance practices are taken into consideration and exceptions may need to be applied that are not explicitly stated below. There are also markets and companies where transparency and related data limit the ability to apply these guidelines.
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Board structure and performance
MFS generally supports the election and/or discharge of directors proposed by the board in uncontested or non-contentious elections, unless concerns have been identified, such as in relation to:
Director independence
MFS believes that good governance is enabled by a board with at least a simple majority of directors who are “independent” (as determined by MFS in its sole discretion)1 of management, the company and each other. MFS may not support the non-independent nominees, or other relevant director (e.g., chair of the board or the chair of the nominating committee), where insufficient independence is identified and determined to be a risk to the board’s and/or company’s effectiveness.
As a general matter we will not support a nominee to a board if, as a result of such nominee being elected to the board, the board will consist of less than a simple majority of members who are “independent.” However, there are also governance structures and markets where we may accept lower levels of independence, such as companies required to have non- shareholder representatives on the board, controlled companies, and companies in certain markets. In these circumstances we generally expect the board to be at least one-third independent or at least half of shareholder representatives to be independent, and as a general matter we will not support the nominee to the board if as a result of such nominee’s elections these expectations are not met. In certain circumstances, we may not support another relevant director’s election. For example, in Japan, we will generally not support the most senior director where the board is not comprised of at least one-third independent directors.
MFS also believes good governance is enabled by a board whose key committees, in particular audit, nominating and compensation/remuneration, consist entirely of “independent” directors. For Canada and US companies, MFS generally votes against any non-independent nominee that would cause any of the audit, compensation, nominating committee to not be fully independent. For Australia, Benelux, Ireland, New Zealand, Switzerland, and UK companies MFS generally votes against any non-independent nominee that would cause the audit or compensation/remuneration committee to not be fully independent. For Korea companies MFS generally votes against any non-independent nominee that would cause the audit committee to not be fully independent. In other markets MFS generally votes against non-independent nominees or other relevant director if a majority of committee members or the chair of the audit committee are not independent. However, there are also governance structures (e.g., controlled companies or boards with non-shareholder representatives) and markets where we may accept lower levels of independence for these key committees.
In general, MFS believes that good governance is enabled by a board with at least a simple majority of directors who are independent and whose key committees consist entirely of
1MFS’ determination of “independence” may be different than that of the company, the exchange on which the company is listed, or of a third party (e.g., proxy advisory firm).
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independent directors. While there are currently markets where we accept lower levels of independence, we expect to expand these independence guidelines to all markets over time.
Tenure in leadership roles
For a board with a lead independent director whose overall tenure on the board equals or exceeds twenty (20) years, we will generally engage with the company to encourage refreshment of that role, and we may vote against the long tenured lead director if progress on refreshment is not made or being considered by the company’s board or we identify other concerns that suggest more immediate refreshment is necessary.
Overboarding
All directors on a board should have sufficient time and attention to fulfil their duties and play their part in achieving effective oversight, both in normal and exceptional circumstances.
MFS may also vote against any director if we deem such nominee to have board roles or outside time commitments that we believe would impair their ability to dedicate sufficient time and attention to their director role.
As a general guideline, MFS will generally vote against a director’s election if they:
∙Are not a CEO or executive chair of a public company, but serve on more than four (4) public company boards in total at US companies and more than five (5) public boards for companies in other non-US markets.
∙Are a CEO or executive chair of a public company, and serve on more than two
(2)public company boards in total at US companies and two (2) outside public company boards for companies in non-US markets. In these cases, MFS would only apply a vote against at the meetings of the companies where the director is non-executive.
MFS may consider exceptions to this guideline if: (i) the company has disclosed the director's plans to step down from the number of public company boards exceeding the above limits, as applicable, within a reasonable time; or (ii) the director exceeds the permitted number of public company board seats solely due to either his/her board service on an affiliated company (e.g., a subsidiary), or service on more than one investment company within the same investment company complex (as defined by applicable law), or
iii)after engagement we believe the director’s ability to dedicate sufficient time and attention is not impaired by the external roles.
Diversity
MFS believes that a well-balanced board with diverse perspectives is a foundation for sound corporate governance, and this is best spread across the board rather than concentrated in one or a few individuals. We take a holistic view on the dimensions of diversity that can lead to diversity of perspectives and stronger oversight and governance.
Gender diversity is one such dimension and where good disclosure and data enables a specific expectation and voting guideline.
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On gender representation specifically MFS wishes to see companies in all markets achieve a consistent minimum representation of women of at least a third of the board, and we are likely to increase our voting guideline towards this over time.
Currently, where data is available, MFS will generally vote against the chair of the nominating and governance committee or other most relevant position at any company whose board is comprised of an insufficient representation of directors who are women for example:
∙At US, Canadian, European, Australian, New Zealand companies: less than 24%.
∙At Brazilian companies: less than 20%.
∙At Chinese, Hong Kong, Indian, Japanese, Korean, Chilean and Mexican companies: less than 10%.
As a general matter, MFS will vote against the chair of the nominating committee of US S&P 500 companies and UK FTSE 100 companies that have failed to appoint at least one director who identifies as either an underrepresented ethnic/racial minority or a member of the LGBTQ+ community.
MFS may consider exceptions to these guidelines if we believe that the company is transitioning towards these goals or has provided clear and compelling reasons for why they have been unable to comply with these goals.
For other markets, we will engage on board diversity and may vote against the election of directors where we fail to see progress.
Board size
MFS believes that the size of the board can have an effect on the board's ability to function efficiently and effectively. While MFS may evaluate board size on a case-by-case basis, we will typically vote against the chair of the nominating and governance committee in instances where the size of the board is greater than sixteen (16) members. An exception to this is companies with requirements to have equal representation of employees on the board where we expect a maximum of twenty (20) members.
Other concerns related to director election:
MFS may also not support some or all nominees standing for election to a board if we determine:
∙There are concerns with a director or board regarding performance, governance or oversight, which may include:
o Clear failures in oversight or execution of duties, including the identification, management and reporting of material risks and information, at the company or any other at which the nominee has served. This may include climate-related risks;
o A failure by the director or board of the issuer to take action to eliminate shareholder unfriendly provisions in the issuer's charter documents; or
o Allowing the hedging and/or significant pledging of company shares by executives.
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∙A director attended less than 75% of the board and/or relevant committee meetings in the previous year without a valid reason stated in the proxy materials or other annual governance reporting;
∙The board or relevant committee has not adequately responded to an issue that received a significant vote against management from shareholders;
∙The board has implemented a poison pill without shareholder approval since the last annual meeting and such poison pill is not on the subsequent shareholder meeting's agenda (including those related to net-operating loss carry-forwards); or
∙In Japan, the company allocates a significant portion of its net assets to cross- shareholdings.
Unless the concern is commonly accepted market practice, MFS may also not support some or all nominees standing for election to a nominating committee if we determine (in our sole discretion) that the chair of the board is not independent and there is no strong lead independent director role in place, or an executive director is a member of a key board committee.
Where individual directors are not presented for election in the year MFS may apply the same vote position to votes on the discharge of the director. Where the election of directors is bundled MFS may vote against the whole group if there is concern with an individual director and no other vote related to that director.
Proxy contests
From time to time, a shareholder may express alternative points of view in terms of a company's strategy, capital allocation, or other issues. Such a shareholder may also propose a slate of director nominees different than the slate of director nominees proposed by the company (a "Proxy Contest"). MFS will analyze Proxy Contests on a case-by-case basis, taking into consideration the track record and current recommended initiatives of both company management and the dissident shareholder(s). MFS will support the director nominee(s) that we believe is in the best, long-term economic interest of our clients.
Other items related to board accountability:
Majority voting for the election of directors: MFS generally supports reasonably crafted proposals calling for directors to be elected with an affirmative majority of votes cast and/or the elimination of the plurality standard for electing directors (including binding resolutions requesting that the board amend the company’s bylaws), provided the proposal includes a carve-out for a plurality voting standard when there are more director nominees than board seats (e.g., contested elections).
Declassified boards: MFS generally supports proposals to declassify a board (i.e., a board in which only a sub-set of board members is elected each year) for all issuers other than for certain closed-end investment companies. MFS generally opposes proposals to classify a board for issuers other than for certain closed-end investment companies.
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The right to call a special meeting or act by written consent:
MFS believes a threshold of 15-25% is an appropriate balance of shareholder and company interests, with thresholds of 15% for large and widely held companies.
MFS will generally support management proposals to establish these rights. MFS will generally support shareholder proposals to adjust existing rights to within the thresholds described above. MFS may also support shareholder proposals to establish the right at a threshold of 10% or above if no existing right exists and no right is presented for vote by management within the threshold range described above.
MFS will support shareholder proposals to establish the right to act by majority written consent if shareholders do not have the right to call a special meeting at the thresholds described above or lower.
Independent chairs: MFS believes boards should include some form of independent leadership responsible for amplifying the views of independent directors and setting meeting agendas, and this is often best positioned as an independent chair of the board or a lead independent director. We review the merits of a change in leadership structure on a case-by-case basis.
Proxy access: MFS believes that the ability of qualifying shareholders to nominate a certain number of directors on the company's proxy statement ("Proxy Access") may have corporate governance benefits. However, such potential benefits must be balanced by its potential misuse by shareholders. Therefore, MFS generally supports Proxy Access proposals at U.S. issuers that establish ownership criteria of 3% of the company held continuously for a period of 3 years. In our view, such qualifying shareholders should have the ability to nominate at least 2 directors. We also believe companies should be mindful of imposing any undue impediments within their bylaws that may render Proxy Access impractical, including re-submission thresholds for director nominees via Proxy Access.
Items related to shareholder rights:
Anti-takeover measures: In general, MFS votes against any measure that inhibits capital appreciation in a stock, including proposals that protect management from action by shareholders. These types of proposals take many forms, ranging from “poison pills” and “shark repellents” to super-majority requirements. While MFS may consider the adoption of a prospective “poison pill” or the continuation of an existing “poison pill" on a case-by- case basis, MFS generally votes against such anti-takeover devices.
MFS will consider any poison pills designed to protect a company’s net-operating loss carryforwards on a case-by-case basis, weighing the accounting and tax benefits of such a pill against the risk of deterring future acquisition candidates. MFS will also consider, on
acase-by-case basis, proposals designed to prevent tenders which are disadvantageous to
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shareholders such as tenders at below market prices and tenders for substantially less than all shares of an issuer.
MFS generally supports proposals that seek to remove governance structures that insulate management from shareholders. MFS generally votes for proposals to rescind existing “poison pills” and proposals that would require shareholder approval to adopt prospective “poison pills.”
Cumulative voting: MFS generally opposes proposals that seek to introduce cumulative voting and supports proposals that seek to eliminate cumulative voting. In either case, MFS will consider whether cumulative voting is likely to enhance the interests of MFS’ clients as minority shareholders.
One-share one-vote: As a general matter, MFS supports proportional alignment of voting rights with economic interest, and may not support a proposal that deviates from this approach. Where multiple share classes or other forms of disproportionate control are in place, we expect these to have sunset provisions of generally no longer than seven years after which the structure becomes single class one-share one-vote.
Reincorporation and reorganization proposals: When presented with a proposal to reincorporate a company under the laws of a different state, or to effect some other type of corporate reorganization, MFS considers the underlying purpose and ultimate effect of such a proposal in determining whether or not to support such a measure. MFS generally votes with management in regards to these types of proposals, however, if MFS believes the proposal is not in the best long-term economic interests of its clients, then MFS may vote against management (e.g., the intent or effect would be to create additional inappropriate impediments to possible acquisitions or takeovers).
Other business: MFS generally votes against "other business" proposals as the content of any such matter is not known at the time of our vote.
Items related to capitalization proposals, capital allocation and corporate actions:
Issuance of stock: There are many legitimate reasons for the issuance of stock. Nevertheless, as noted above under “Stock Plans,” when a stock option plan (either individually or when aggregated with other plans of the same company) would substantially dilute the existing equity (e.g., by more than approximately 10-15%), MFS generally votes against the plan.
MFS typically votes against proposals where management is asking for authorization to issue common or preferred stock with no reason stated (a “blank check”) because the unexplained authorization could work as a potential anti-takeover device. MFS may also vote against the authorization or issuance of common or preferred stock if MFS determines that the requested authorization is excessive or not warranted. MFS will consider the
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duration of the authority and the company’s history in using such authorities in making its decision.
Repurchase programs: MFS generally supports proposals to institute share repurchase plans in which all shareholders have the opportunity to participate on an equal basis. Such plans may include a company acquiring its own shares on the open market, or a company making a tender offer to its own shareholders.
Mergers, acquisitions & other special transactions: MFS considers proposals with respect to mergers, acquisitions, sale of company assets, share and debt issuances and other transactions that have the potential to affect ownership interests on a case-by-case basis. When analyzing such proposals, we use a variety of materials and information, including our own internal research as well as the research of third-party service providers.
Independent Auditors
MFS generally supports the election of auditors but may determine to vote against the election of a statutory auditor and/or members of the audit committee in certain markets if MFS reasonably believes that the statutory auditor is not truly independent, sufficiently competent or there are concerns related to the auditor’s work or opinion. To inform this view, MFS may evaluate the use of non-audit services in voting decisions when the percentage of non-audit fees to total auditor fees exceeds 40%, in particular if recurring.
Executive Compensation
MFS believes that competitive compensation packages are necessary to attract, motivate and retain executives. We seek compensation plans that are geared towards durable long- term value creation and aligned with shareholder interests and experience, such as where we believe:
∙The plan is aligned with the company’s current strategic priorities with a focused set of clear, suitably ambitious and measurable performance conditions;
oPractices of concern may include an incentive plan without financial performance conditions, without a substantial majority weighting to quantitative metrics or that vests substantially below median performance.
∙Meaningful portions of awards are paid in shares and based on long performance periods (e.g., at least three years);
∙Awards and potential future awards, reflect the nature of the business, value created and the executive’s performance;
oPractices of concern may include large windfall gains or award increases without justification.
∙Awards are fair, not detrimental to firm culture and reflect the policies approved by shareholders at previous meetings with appropriate use of discretion (positive and negative); and
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oPractices of concern may include one-off awards without justification or robust performance conditions, equity awards repriced without shareholder approval, substantial executive or director share pledging, egregious perks or substantial internal pay imbalances.
∙The calculation and justification for awards is sufficiently transparent for investors to appraise alignment with performance and future incentives.
MFS will analyze votes on executive compensation on a case-by-case basis. When analyzing compensation practices, MFS generally uses a two-step process. MFS first seeks to identify any compensation practices that are potentially of concern by using both internal research and the research of third-party service providers. Where such practices are identified, MFS will then analyze the compensation practices in light of relevant facts and circumstances. MFS will vote against an issuer's executive compensation practices if MFS determines that such practices are not geared towards durable long-term value creation and are misaligned with the best, long-term economic interest of our clients. When analyzing whether an issuer’s compensation practices are aligned with the best, long-term economic interest of our clients, MFS uses a variety of materials and information, including our own internal research and engagement with issuers as well as the research of third- party service providers.
MFS generally supports proposals to include an advisory shareholder vote on an issuer’s executive compensation practices on an annual basis.
MFS does not have formal voting guideline in regards to the inclusion of ESG incentives in a company’s compensation plan; however, where such incentives are included, we believe:
∙The incentives should be tied to issues that are financially material for the issuer in question.
∙They should predominantly include quantitative or other externally verifiable outcomes rather than qualitative measures.
∙The weighting of incentives should be appropriately balanced with other strategic priorities.
We believe non-executive directors may be compensated in cash or stock but these should not be performance-based.
Stock Plans
MFS may oppose stock option programs and restricted stock plans if they:
∙Provide unduly generous compensation for officers, directors or employees, or could result in excessive dilution to other shareholders. As a general guideline, MFS votes against restricted stock, stock option, non-employee director, omnibus stock plans and any other stock plan if all such plans for a particular company involve potential excessive dilution (which we typically consider to be, in the aggregate, of more than 15%). MFS will generally vote against stock plans that
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involve potential dilution, in aggregate, of more than 10% at U.S. issuers that are listed in the Standard and Poor’s 100 index as of December 31 of the previous year.
∙Allow the board or the compensation committee to re-price underwater options or to automatically replenish shares without shareholder approval.
∙Do not require an investment by the optionee, give “free rides” on the stock price, or permit grants of stock options with an exercise price below fair market value on the date the options are granted.
In the cases where a stock plan amendment is seeking qualitative changes and not additional shares, MFS will vote on a case-by-case basis.
MFS will consider proposals to exchange existing options for newly issued options, restricted stock or cash on a case-by-case basis, taking into account certain factors, including, but not limited to, whether there is a reasonable value-for-value exchange and whether senior executives are excluded from participating in the exchange.
From time to time, MFS may evaluate a separate, advisory vote on severance packages or “golden parachutes” to certain executives at the same time as a vote on a proposed merger or acquisition. MFS will vote on a severance package on a case- by-case basis, and MFS may vote against the severance package regardless of whether MFS supports the proposed merger or acquisition.
MFS supports the use of a broad-based employee stock purchase plans to increase company stock ownership by employees, provided that shares purchased under the plan are acquired for no less than 85% of their market value and do not result in excessive dilution.
MFS may also not support some or all nominees standing for election to a compensation/remuneration committee if:
∙MFS votes against consecutive pay votes;
∙MFS determines that a particularly egregious executive compensation practice has occurred. This may include use of discretion to award excessive payouts. MFS believes compensation committees should have flexibility to apply discretion to ensure final payments reflect long-term performance as long as this is used responsibly;
∙MFS believes the committee is inadequately incentivizing or rewarding executives, or is overseeing pay practices that we believe are detrimental the long-term success of the company; or
∙An advisory pay vote is not presented to shareholders, or the company has not implemented the advisory vote frequency supported by a plurality/majority of shareholders.
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Shareholder Proposals on Executive Compensation
MFS generally opposes shareholder proposals that seek to set rigid restrictions on executive compensation as MFS believes that compensation committees should retain flexibility to determine the appropriate pay package for executives.
MFS may support reasonably crafted shareholder proposals that:
∙Require shareholder approval of any severance package for an executive officer that exceeds a certain multiple of such officer’s annual compensation that is not determined in MFS’ judgment to be excessive;
∙Require the issuer to adopt a policy to recover the portion of performance-based bonuses and awards paid to senior executives that were not earned based upon a significant negative restatement of earnings, or other significant misconduct or corporate failure, unless the company already has adopted a satisfactory policy on the matter;
∙Expressly prohibit the backdating of stock options; or,
∙Prohibit the acceleration of vesting of equity awards upon a broad definition of a "change-in-control" (e.g., single or modified single-trigger).
Environmental and Social Proposals
Where management presents climate action/transition plans to shareholder vote, we will evaluate the level of ambition over time, scope, credibility and transparency of the plan in determining our support. Where companies present climate action progress reports to shareholder vote we will evaluate evidence of implementation of and progress against the plan and level of transparency in determining our support.
Most vote items related to environmental and social topics are presented by shareholders. As these proposals, even on the same topic, can vary significantly in scope and action requested, these proposals are typically assessed on a case-by-case basis.
For example, MFS may support reasonably crafted proposals:
∙On climate change: that seek disclosure consistent with the recommendations of a generally accepted global framework (e.g., Task Force on Climate-related Financial Disclosures) that is appropriately audited and that is presented in a way that enables shareholders to assess and analyze the company's data; or request appropriately robust and ambitious plans or targets.
∙Other environmental: that request the setting of targets for reduction of environmental impact or disclosure of key performance indicators or risks related to the impact, where materially relevant to the business. An example of such a proposal could be reporting on the impact of plastic use or waste stemming from company products or packaging.
∙On diversity: that seek to amend a company’s equal employment opportunity policy to prohibit discrimination; that request good practice employee-related DEI
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disclosure; or that seek external input and reviews on specific related areas of performance.
∙On lobbying: that request good practice disclosure regarding a company’s political contributions and lobbying payments and policy (including trade organizations and lobbying activity).
∙On tax: that request reporting in line with the GRI 207 Standard on Tax.
∙On corporate culture and/or human/worker rights: that request additional disclosure on corporate culture factors like employee turnover and/or management of human and labor rights.
MFS is unlikely to support a proposal if we believe that the proposal is unduly costly, restrictive, unclear, burdensome, has potential unintended consequences, is unlikely to lead to tangible outcomes or we don’t believe the issue is material or the action a priority for the business. MFS is also unlikely to support a proposal where the company already provides publicly available information that we believe is sufficient to enable shareholders to evaluate the potential opportunities and risks on the subject of the proposal, if the request of the proposal has already been substantially implemented, or if through engagement we gain assurances that it will be substantially implemented.
The laws of various states or countries may regulate how the interests of certain clients subject to those laws (e.g., state pension plans) are voted with respect to environmental, social and governance issues. Thus, it may be necessary to cast ballots differently for certain clients than MFS might normally do for other clients.
B. GOVERNANCE OF PROXY VOTING ACTIVITIES
From time to time, MFS may receive comments on the MFS Proxy Voting Policies and Procedures from its clients. These comments are carefully considered by MFS when it reviews these MFS Proxy Voting Policies and Procedures and revises them as appropriate, in MFS' sole judgment.
1. MFS Proxy Voting Committee
The administration of these MFS Proxy Voting Policies and Procedures is overseen by the MFS Proxy Voting Committee, which includes senior personnel from the MFS Legal and Global Investment and Client Support Departments as well as members of the investment team. The Proxy Voting Committee does not include individuals whose primary duties relate to client relationship management, marketing, or sales. The MFS Proxy Voting Committee:
a.Reviews these MFS Proxy Voting Policies and Procedures at least annually and recommends any amendments considered to be necessary or advisable;
b.Determines whether any potential material conflict of interest exists with respect to instances in which MFS (i) seeks to override these MFS Proxy Voting Policies and
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Procedures; (ii) votes on ballot items not governed by these MFS Proxy Voting Policies and Procedures; (iii) evaluates an excessive executive compensation issue in relation to the election of directors; or (iv) requests a vote recommendation from an MFS portfolio manager or investment analyst (e.g., mergers and acquisitions);
c.Considers special proxy issues as they may arise from time to time; and
d.Determines engagement priorities and strategies with respect to MFS' proxy voting activities
The day-to-day application of the MFS Proxy Voting Policies and Procedures are conducted by the MFS stewardship team led by MFS’ Director of Global Stewardship. The stewardship team are members of MFS’ investment team.
2. Potential Conflicts of Interest
These policies and procedures are intended to address any potential material conflicts of interest on the part of MFS or its subsidiaries that are likely to arise in connection with the voting of proxies on behalf of MFS’ clients. If such potential material conflicts of interest do arise, MFS will analyze, document and report on such potential material conflicts of interest (see below) and shall ultimately vote the relevant ballot items in what MFS believes to be the best long-term economic interests of its clients. The MFS Proxy Voting Committee is responsible for monitoring and reporting with respect to such potential material conflicts of interest.
The MFS Proxy Voting Committee is responsible for monitoring potential material conflicts of interest on the part of MFS or its subsidiaries that could arise in connection with the voting of proxies on behalf of MFS’ clients. Due to the client focus of our investment management business, we believe that the potential for actual material conflict of interest issues is small. Nonetheless, we have developed precautions to assure that all votes are cast in the best long-term economic interest of its clients.2 Other MFS internal policies require all MFS employees to avoid actual and potential conflicts of interests between personal activities and MFS’ client activities. If an employee (including investment professionals) identifies an actual or potential conflict of interest with respect to any voting decision (including the ownership of securities in their individual portfolio), then that employee must recuse himself/herself from participating in the voting process. Any significant attempt by an employee of MFS or its subsidiaries to unduly influence MFS’ voting on a particular proxy matter should also be reported to the MFS Proxy Voting Committee.
In cases where ballots are voted in accordance with these MFS Proxy Voting Policies and Procedures, no material conflict of interest will be deemed to exist. In cases where (i) MFS
2For clarification purposes, note that MFS votes in what we believe to be the best, long-term economic interest of our clients entitled to vote at the shareholder meeting, regardless of whether other MFS clients hold “short” positions in the same issuer or whether other MFS clients hold an interest in the company that is not entitled to vote at the shareholder meeting (e.g., bond holder).
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is considering overriding these MFS Proxy Voting Policies and Procedures, (ii) matters presented for vote are not governed by these MFS Proxy Voting Policies and Procedures,
(iii)MFS identifies and evaluates a potentially concerning executive compensation issue in relation to an advisory pay or severance package vote, or (iv) a vote recommendation is requested from an MFS portfolio manager or investment analyst for proposals relating to a merger, an acquisition, a sale of company assets or other similar transactions (collectively, “Non-Standard Votes”); the MFS Proxy Voting Committee will follow these procedures:
a.Compare the name of the issuer of such ballot or the name of the shareholder (if identified in the proxy materials) making such proposal against a list of significant current (i) distributors of MFS Fund shares, and (ii) MFS institutional clients (the “MFS Significant Distributor and Client List”);
b.If the name of the issuer does not appear on the MFS Significant Distributor and Client List, then no material conflict of interest will be deemed to exist, and the proxy will be voted as otherwise determined by the MFS Proxy Voting Committee;
c.If the name of the issuer appears on the MFS Significant Distributor and Client List, then the MFS Proxy Voting Committee will be apprised of that fact and each member of the MFS Proxy Voting Committee (with the participation of MFS' Conflicts Officer) will carefully evaluate the proposed vote in order to ensure that the proxy ultimately is voted in what MFS believes to be the best long-term economic interests of MFS’ clients, and not in MFS' corporate interests; and
d.For all potential material conflicts of interest identified under clause (c) above, the MFS Proxy Voting Committee will document: the name of the issuer, the issuer’s relationship to MFS, the analysis of the matters submitted for proxy vote, the votes as to be cast and the reasons why the MFS Proxy Voting Committee determined that the votes were cast in the best long-term economic interests of MFS’ clients, and not in MFS' corporate interests. A copy of the foregoing documentation will be provided to MFS’ Conflicts Officer.
The members of the MFS Proxy Voting Committee are responsible for creating and maintaining the MFS Significant Distributor and Client List, in consultation with MFS’ distribution and institutional business units. The MFS Significant Distributor and Client List will be reviewed and updated periodically, as appropriate.
For instances where MFS is evaluating a director nominee who also serves as a director/trustee of the MFS Funds, then the MFS Proxy Voting Committee will adhere to the procedures described in section (c) above regardless of whether the portfolio company appears on our Significant Distributor and Client List. In doing so, the MFS Proxy Voting Committee will adhere to such procedures for all Non-Standard Votes at the company’s shareholder meeting at which the director nominee is standing for election.
If an MFS client has the right to vote on a matter submitted to shareholders by Sun Life Financial, Inc. or any of its affiliates (collectively "Sun Life"), MFS will cast a vote on
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behalf of such MFS client as such client instructs or in the event that a client instruction is unavailable pursuant to the recommendations of Institutional Shareholder Services, Inc.'s ("ISS") benchmark policy, or as required by law. Likewise, if an MFS client has the right to vote on a matter submitted to shareholders by a public company for which an MFS Fund director/trustee serves as an executive officer, MFS will cast a vote on behalf of such MFS client as such client instructs or in the event that client instruction is unavailable pursuant to the recommendations of ISS or as required by law.
Except as described in the MFS Fund's Prospectus, from time to time, certain MFS Funds (the “top tier fund”) may own shares of other MFS Funds (the “underlying fund”). If an underlying fund submits a matter to a shareholder vote, the top tier fund will generally vote its shares in the same proportion as the other shareholders of the underlying fund. If there are no other shareholders in the underlying fund, the top tier fund will vote in what MFS believes to be in the top tier fund’s best long-term economic interest. If an MFS client has the right to vote on a matter submitted to shareholders by a pooled investment vehicle advised by MFS (excluding those vehicles for which MFS' role is primarily portfolio management and is overseen by another investment adviser), MFS will cast a vote on behalf of such MFS client in the same proportion as the other shareholders of the pooled investment vehicle.
3. Review of Policy
The MFS Proxy Voting Policies and Procedures are available on www.mfs.com and may be accessed by both MFS’ clients and the companies in which MFS’ clients invest. The MFS Proxy Voting Policies and Procedures are reviewed by the Proxy Voting Committee annually. From time to time, MFS may receive comments on the MFS Proxy Voting Policies and Procedures from its clients. These comments are carefully considered by MFS when it reviews these MFS Proxy Voting Policies and Procedures and revises them as appropriate, in MFS' sole judgment.
C. OTHER ADMINISTRATIVE MATTERS & USE OF PROXY ADVISORY FIRMS
1. Use of Proxy Advisory Firms
MFS, on behalf of itself and certain of its clients (including the MFS Funds) has entered into an agreement with an independent proxy administration firm pursuant to which the proxy administration firm performs various proxy vote related administrative services such as vote processing and recordkeeping functions. Except as noted below, the proxy administration firm for MFS and its clients, including the MFS Funds, is ISS. The proxy administration firm for MFS Development Funds, LLC is Glass, Lewis & Co., Inc. (“Glass Lewis”; Glass Lewis and ISS are each hereinafter referred to as the “Proxy Administrator”).
The Proxy Administrator receives proxy statements and proxy ballots directly or indirectly from various custodians, logs these materials into its database and matches upcoming
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meetings with MFS Fund and client portfolio holdings, which are inputted into the Proxy Administrator’s system by an MFS holdings data-feed. The Proxy Administrator then reconciles a list of all MFS accounts that hold shares of a company’s stock and the number of shares held on the record date by these accounts with the Proxy Administrator’s list of any upcoming shareholder’s meeting of that company. If a proxy ballot has not been received, the Proxy Administrator and/or MFS may contact the client’s custodian requesting the reason as to why a ballot has not been received. Through the use of the Proxy Administrator system, ballots and proxy material summaries for all upcoming shareholders’ meetings are available on-line to certain MFS employees and members of the MFS Proxy Voting Committee.
MFS also receives research reports and vote recommendations from proxy advisory firms. These reports are only one input among many in our voting analysis, which includes other sources of information such as proxy materials, company engagement discussions, other third-party research and data. MFS has due diligence procedures in place to help ensure that the research we receive from our proxy advisory firms is materially accurate and that we address any material conflicts of interest involving these proxy advisory firms. This due diligence includes an analysis of the adequacy and quality of the advisory firm staff, its conflict of interest policies and procedures and independent audit reports. We also review the proxy policies, methodologies and peer-group-composition methodology of our proxy advisory firms at least annually. Additionally, we also receive reports from our proxy advisory firms regarding any violations or changes to conflict of interest procedures.
2. Analyzing and Voting Proxies
Proxies are voted in accordance with these MFS Proxy Voting Policies and Procedures. The Proxy Administrator, at the prior direction of MFS, automatically votes all proxy matters that do not require the particular exercise of discretion or judgment with respect to these MFS Proxy Voting Policies and Procedures as determined by MFS. In these circumstances, if the Proxy Administrator, based on MFS' prior direction, expects to vote against management with respect to a proxy matter and MFS becomes aware that the issuer has filed or will file additional soliciting materials sufficiently in advance of the deadline for casting a vote at the meeting, MFS will consider such information when casting its vote. With respect to proxy matters that require the particular exercise of discretion or judgment, the MFS Proxy Voting Committee or its representatives considers and votes on those proxy matters. In analyzing all proxy matters, MFS uses a variety of materials and information, including, but not limited to, the issuer's proxy statement and other proxy solicitation materials (including supplemental materials), our own internal research and research and recommendations provided by other third parties (including research of the Proxy Administrator). As described herein, MFS may also determine that it is beneficial in analyzing a proxy voting matter for members of the Proxy Voting Committee or its representatives to engage with the company on such matter. MFS also uses its own internal research, the research of Proxy Administrators and/or other third party research tools and vendors to identify (i) circumstances in which a board may have approved an executive compensation plan that is excessive or poorly aligned with the portfolio company's business or its shareholders, (ii) environmental, social and governance proposals that
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warrant further consideration, or (iii) circumstances in which a company is not in compliance with local governance or compensation best practices. Representatives of the MFS Proxy Voting Committee review, as appropriate, votes cast to ensure conformity with these MFS Proxy Voting Policies and Procedures.
For certain types of votes (e.g., mergers and acquisitions, proxy contests and capitalization matters), MFS’ stewardship team will seek a recommendation from the MFS investment analyst that is responsible for analyzing the company and/or portfolio managers that holds the security in their portfolio.3 For certain other votes that require a case-by-case analysis per these policies (e.g., potentially excessive executive compensation issues, or certain shareholder proposals), the stewardship team will likewise consult with MFS investment analysts and/or portfolio managers.3 However, the MFS Proxy Voting Committee will ultimately be responsible for the manner in which all ballots are voted.
As noted above, MFS reserves the right to override the guidelines when such an override is, in MFS’ best judgment, consistent with the overall principle of voting proxies in the best long-term economic interests of MFS’ clients. Any such override of the guidelines shall be analyzed, documented and reported in accordance with the procedures set forth in these policies.
In accordance with its contract with MFS, the Proxy Administrator also generates a variety of reports for the MFS Proxy Voting Committee and makes available on-line various other types of information so that the MFS Proxy Voting Committee or its representatives may review and monitor the votes cast by the Proxy Administrator on behalf of MFS’ clients.
For those markets that utilize a "record date" to determine which shareholders are eligible to vote, MFS generally will vote all eligible shares pursuant to these guidelines regardless of whether all (or a portion of) the shares held by our clients have been sold prior to the meeting date.
3. Securities Lending
From time to time, certain MFS Funds may participate in a securities lending program. In the event MFS or its agent receives timely notice of a shareholder meeting for a U.S. security, MFS and its agent will attempt to recall any securities on loan before the meeting’s record date so that MFS will be entitled to vote these shares. However, there may be instances in which MFS is unable to timely recall securities on loan for a U.S. security, in which cases MFS will not be able to vote these shares. MFS will report to the appropriate board of the MFS Funds those instances in which MFS is not able to timely recall the loaned securities. MFS generally does not recall non-U.S. securities on loan because there may be insufficient advance notice of proxy materials, record dates, or vote
3From time to time, due to travel schedules and other commitments, an appropriate portfolio manager or research analyst may not be available to provide a vote recommendation. If such a recommendation cannot be obtained within a reasonable time prior to the cut-off date of the shareholder meeting, the MFS Proxy Voting Committee may determine to abstain from voting.
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1051727
cut-off dates to allow MFS to timely recall the shares in certain markets on an automated basis. As a result, non-U.S. securities that are on loan will not generally be voted. If MFS receives timely notice of what MFS determines to be an unusual, significant vote for a non- U.S. security whereas MFS shares are on loan and determines that voting is in the best long-term economic interest of shareholders, then MFS will attempt to timely recall the loaned shares.
4. Potential impediments to voting
In accordance with local law or business practices, some companies or custodians prevent the sale of shares that have been voted for a certain period beginning prior to the shareholder meeting and ending on the day following the meeting (“share blocking”). Depending on the country in which a company is domiciled, the blocking period may begin a stated number of days prior or subsequent to the meeting (e.g., one, three or five days) or on a date established by the company. While practices vary, in many countries the block period can be continued for a longer period if the shareholder meeting is adjourned and postponed to a later date. Similarly, practices vary widely as to the ability of a shareholder to have the “block” restriction lifted early (e.g., in some countries shares generally can be “unblocked” up to two days prior to the meeting whereas in other countries the removal of the block appears to be discretionary with the issuer’s transfer agent). Due to these restrictions, MFS must balance the benefits to its clients of voting proxies against the potentially serious portfolio management consequences of a reduced flexibility to sell the underlying shares at the most advantageous time. For companies in countries with share blocking periods or in markets where some custodians may block shares, the disadvantage of being unable to sell the stock regardless of changing conditions generally outweighs the advantages of voting at the shareholder meeting for routine items. Accordingly, MFS will not vote those proxies in the absence of an unusual, significant vote that outweighs the disadvantage of being unable to sell the stock.
From time to time, governments may impose economic sanctions which may prohibit us from transacting business with certain companies or individuals. These sanctions may also prohibit the voting of proxies at certain companies or on certain individuals. In such instances, MFS will not vote at certain companies or on certain individuals if it determines that doing so is in violation of the sanctions.
In limited circumstances, other market specific impediments to voting shares may limit our ability to cast votes, including, but not limited to, late delivery of proxy materials, untimely vote cut-off dates, power of attorney and share re-registration requirements, or any other unusual voting requirements. In these limited instances, MFS votes securities on a best- efforts basis in the context of the guidelines described above.
D. ENGAGEMENT
As part of its approach to stewardship MFS engages with companies in which it invests on a range of priority issues. Where sufficient progress has not been made on a particular issue of engagement, MFS may determine a vote against management may be warranted to
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1051727
reflect our concerns and influence for change in the best long-term economic interests of our clients.
MFS may determine that it is appropriate and beneficial to engage in a dialogue or written communication with a company or other shareholders specifically regarding certain matters on the company’s proxy statement that are of concern to shareholders, including environmental, social and governance matters. This may be to discuss and build our understanding of a certain proposal, or to provide further context to the company on our vote decision.
A company or shareholder may also seek to engage with members of the MFS Proxy Voting Committee or Stewardship Team in advance of the company’s formal proxy solicitation to review issues more generally or gauge support for certain contemplated proposals. For further information on requesting engagement with MFS on proxy voting issues or information about MFS' engagement priorities, please contact dlstewardshipteam@mfs.com.
E. RECORDS RETENTION
MFS will retain copies of these MFS Proxy Voting Policies and Procedures in effect from time to time and will retain all proxy voting reports submitted to the Board of Trustees of the MFS Funds for the period required by applicable law. Proxy solicitation materials, including electronic versions of the proxy ballots completed by representatives of the MFS Proxy Voting Committee, together with their respective notes and comments, are maintained in an electronic format by the Proxy Administrator and are accessible on-line by the MFS Proxy Voting Committee and other MFS employees. All proxy voting materials and supporting documentation, including records generated by the Proxy Administrator’s system as to proxies processed, including the dates when proxy ballots were received and submitted, and the votes on each company’s proxy issues, are retained as required by applicable law.
F. REPORTS
U.S. Registered MFS Funds
MFS publicly discloses the proxy voting records of the U.S. registered MFS Funds on a quarterly basis. MFS will also report the results of its voting to the Board of Trustees of the U.S. registered MFS Funds. These reports will include: (i) a summary of how votes were cast (including advisory votes on pay and “golden parachutes”); (ii) a summary of votes against management’s recommendation; (iii) a review of situations where MFS did not vote in accordance with the guidelines and the rationale therefore; (iv) a review of the procedures used by MFS to identify material conflicts of interest and any matters identified as a material conflict of interest; (v) a review of these policies and the guidelines; (vi) a review of our proxy engagement activity; (vii) a report and impact assessment of instances in which the recall of loaned securities of a U.S. issuer was unsuccessful; and (viii) as necessary or appropriate, any proposed modifications thereto to reflect new developments
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1051727
in corporate governance and other issues. Based on these reviews, the Trustees of the U.S. registered MFS Funds will consider possible modifications to these policies to the extent necessary or advisable.
Other MFS Clients
MFS may publicly disclose the proxy voting records of certain other clients (including certain MFS Funds) or the votes it casts with respect to certain matters as required by law. A report can also be printed by MFS for each client who has requested that MFS furnish a record of votes cast. The report specifies the proxy issues which have been voted for the client during the year and the position taken with respect to each issue and, upon request, may identify situations where MFS did not vote in accordance with the MFS Proxy Voting Policies and Procedures.
Firm-wide Voting Records
MFS also publicly discloses its firm-wide proxy voting records on a quarterly basis.
Except as described above, MFS generally will not divulge actual voting practices to any party other than the client or its representatives because we consider that information to be confidential and proprietary to the client. However, as noted above, MFS may determine that it is appropriate and beneficial to engage in a dialogue with a company regarding certain matters. During such dialogue with the company, MFS may disclose the vote it intends to cast in order to potentially effect positive change at a company in regards to environmental, social or governance issues.
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1051727
EX-99.19a-1
MFS® Intermediate Income Trust
P.O. Box 43078
Providence, RI 02940-3078
Notice to shareholders — Source of distribution
Distribution period |
October-2024 |
Distribution amount per share |
$0.02042 |
The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund’s fiscal year begins each November 1st. All amounts are expressed per common share.
|
Current |
% Breakdown of |
Total cumulative |
% Breakdown of the total |
|||
|
distributions for the |
cumulative distributions |
|||||
|
distribution |
current distribution |
fiscal year to date |
for the fiscal year to date |
|||
Net Investment Income |
0.00776 |
38% |
0.09223 |
|
38% |
|
|
Net Realized ST Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
|
Net Realized LT Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
|
Return of Capital or |
0.01266 |
62% |
0.15047 |
|
62% |
|
|
Other Capital Source |
|
|
|||||
Total (per common share) |
0.02042 |
100% |
0.24270 |
|
100% |
|
|
Average annual total return (in relation to NAV) for the five years ended 9-30-2024 |
|
|
2.11% |
|
|||
Annualized current distribution rate expressed as a percentage of month end NAV as of 9-30-2024 |
|
8.54% |
|
||||
Cumulative total return (in relation to NAV) for the fiscal year through 9-30-2024 |
|
|
10.86% |
|
|||
Cumulative fiscal year distributions as a percentage of NAV as of 9-30-2024 |
|
|
8.46% |
|
You should not draw any conclusions about the fund's investment performance from the amount of this distribution or from the terms of the fund's managed distribution plan.
The fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. A return of capital distribution does not necessarily reflect the fund's investment performance and should not be confused with "yield" or "income."
The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax- reporting purposes. The actual amounts and sources of the amounts for tax-reporting purposes will depend upon the fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
If you have any questions regarding this information, please call our fund service department at 1-800-637-2304 any business day from 9 a.m. to 5 p.m. Eastern time.
MINSN-1024
MFS® Intermediate Income Trust
P.O. Box 43078
Providence, RI 02940-3078
Notice to shareholders — Source of distribution
Distribution period |
September-2024 |
Distribution amount per share |
$0.02029 |
The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund’s fiscal year begins each November 1st. All amounts are expressed per common share.
|
Current |
% Breakdown of |
Total cumulative |
% Breakdown of the total |
|||
|
distributions for the |
cumulative distributions |
|||||
|
distribution |
current distribution |
fiscal year to date |
for the fiscal year to date |
|||
Net Investment Income |
0.00812 |
40% |
0.08447 |
|
38% |
|
|
Net Realized ST Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
|
Net Realized LT Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
|
Return of Capital or |
0.01217 |
60% |
0.13781 |
|
62% |
|
|
Other Capital Source |
|
|
|||||
Total (per common share) |
0.02029 |
100% |
0.22228 |
|
100% |
|
|
Average annual total return (in relation to NAV) for the five years ended 8-31-2024 |
|
|
1.84% |
|
|||
Annualized current distribution rate expressed as a percentage of month end NAV as of 8-31-2024 |
|
8.51% |
|
||||
Cumulative total return (in relation to NAV) for the fiscal year through 8-31-2024 |
|
|
9.67% |
|
|||
Cumulative fiscal year distributions as a percentage of NAV as of 8-31-2024 |
|
|
7.77% |
|
You should not draw any conclusions about the fund's investment performance from the amount of this distribution or from the terms of the fund's managed distribution plan.
The fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. A return of capital distribution does not necessarily reflect the fund's investment performance and should not be confused with "yield" or "income."
The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax- reporting purposes. The actual amounts and sources of the amounts for tax-reporting purposes will depend upon the fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
If you have any questions regarding this information, please call our fund service department at 1-800-637-2304 any business day from 9 a.m. to 5 p.m. Eastern time.
MINSN-0924
MFS® Intermediate Income Trust
P.O. Box 43078
Providence, RI 02940-3078
Notice to shareholders — Source of distribution
Distribution period |
August-2024 |
Distribution amount per share |
$0.02009 |
The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund’s fiscal year begins each November 1st. All amounts are expressed per common share.
|
Current |
% Breakdown of |
Total cumulative |
% Breakdown of the total |
|||
|
distributions for the |
cumulative distributions |
|||||
|
distribution |
current distribution |
fiscal year to date |
for the fiscal year to date |
|||
Net Investment Income |
0.00784 |
39% |
0.07676 |
|
38% |
|
|
Net Realized ST Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
|
Net Realized LT Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
|
Return of Capital or |
0.01225 |
61% |
0.12523 |
|
62% |
|
|
Other Capital Source |
|
|
|||||
Total (per common share) |
0.02009 |
100% |
0.20199 |
|
100% |
|
|
Average annual total return (in relation to NAV) for the five years ended 7-31-2024 |
|
|
1.98% |
|
|||
Annualized current distribution rate expressed as a percentage of month end NAV as of 7-31-2024 |
|
8.46% |
|
||||
Cumulative total return (in relation to NAV) for the fiscal year through 7-31-2024 |
|
|
8.50% |
|
|||
Cumulative fiscal year distributions as a percentage of NAV as of 7-31-2024 |
|
|
7.09% |
|
You should not draw any conclusions about the fund's investment performance from the amount of this distribution or from the terms of the fund's managed distribution plan.
The fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. A return of capital distribution does not necessarily reflect the fund's investment performance and should not be confused with "yield" or "income."
The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax- reporting purposes. The actual amounts and sources of the amounts for tax-reporting purposes will depend upon the fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
If you have any questions regarding this information, please call our fund service department at 1-800-637-2304 any business day from 9 a.m. to 5 p.m. Eastern time.
MINSN-0824
MFS® Intermediate Income Trust
P.O. Box 43078
Providence, RI 02940-3078
Notice to shareholders — Source of distribution
Distribution period |
July-2024 |
Distribution amount per share |
$0.02006 |
The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund’s fiscal year begins each November 1st. All amounts are expressed per common share.
|
Current |
% Breakdown of |
Total cumulative |
% Breakdown of the total |
|||
|
distributions for the |
cumulative distributions |
|||||
|
distribution |
current distribution |
fiscal year to date |
for the fiscal year to date |
|||
Net Investment Income |
0.00782 |
39% |
0.06912 |
|
38% |
|
|
Net Realized ST Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
|
Net Realized LT Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
|
Return of Capital or |
0.01224 |
61% |
0.11278 |
|
62% |
|
|
Other Capital Source |
|
|
|||||
Total (per common share) |
0.02006 |
100% |
0.18190 |
|
100% |
|
|
Average annual total return (in relation to NAV) for the five years ended 6-30-2024 |
|
|
1.62% |
|
|||
Annualized current distribution rate expressed as a percentage of month end NAV as of 6-30-2024 |
|
8.54% |
|
||||
Cumulative total return (in relation to NAV) for the fiscal year through 6-30-2024 |
|
|
6.57% |
|
|||
Cumulative fiscal year distributions as a percentage of NAV as of 6-30-2024 |
|
|
6.45% |
|
You should not draw any conclusions about the fund's investment performance from the amount of this distribution or from the terms of the fund's managed distribution plan.
The fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. A return of capital distribution does not necessarily reflect the fund's investment performance and should not be confused with "yield" or "income."
The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax- reporting purposes. The actual amounts and sources of the amounts for tax-reporting purposes will depend upon the fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
If you have any questions regarding this information, please call our fund service department at 1-800-637-2304 any business day from 9 a.m. to 5 p.m. Eastern time.
MINSN-0724
MFS® Intermediate Income Trust
P.O. Box 43078
Providence, RI 02940-3078
Notice to shareholders — Source of distribution
Distribution period |
June-2024 |
Distribution amount per share |
$0.01998 |
The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund’s fiscal year begins each November 1st. All amounts are expressed per common share.
|
Current |
% Breakdown of |
Total cumulative |
% Breakdown of the total |
|||
|
distributions for the |
cumulative distributions |
|||||
|
distribution |
current distribution |
fiscal year to date |
for the fiscal year to date |
|||
Net Investment Income |
0.00799 |
40% |
0.06150 |
|
38% |
|
|
Net Realized ST Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
|
Net Realized LT Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
|
Return of Capital or |
0.01199 |
60% |
0.10034 |
|
62% |
|
|
Other Capital Source |
|
|
|||||
Total (per common share) |
0.01998 |
100% |
0.16184 |
|
100% |
|
|
Average annual total return (in relation to NAV) for the five years ended 5-31-2024 |
|
|
1.71% |
|
|||
Annualized current distribution rate expressed as a percentage of month end NAV as of 5-31-2024 |
|
8.50% |
|
||||
Cumulative total return (in relation to NAV) for the fiscal year through 5-31-2024 |
|
|
5.77% |
|
|||
Cumulative fiscal year distributions as a percentage of NAV as of 5-31-2024 |
|
|
5.74% |
|
You should not draw any conclusions about the fund's investment performance from the amount of this distribution or from the terms of the fund's managed distribution plan.
The fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. A return of capital distribution does not necessarily reflect the fund's investment performance and should not be confused with "yield" or "income."
The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax- reporting purposes. The actual amounts and sources of the amounts for tax-reporting purposes will depend upon the fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
If you have any questions regarding this information, please call our fund service department at 1-800-637-2304 any business day from 9 a.m. to 5 p.m. Eastern time.
MINSN-0624
MFS® Intermediate Income Trust
P.O. Box 43078
Providence, RI 02940-3078
Notice to shareholders — Source of distribution
Distribution period |
May-2024 |
Distribution amount per share |
$0.01999 |
The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund’s fiscal year begins each November 1st. All amounts are expressed per common share.
|
Current |
% Breakdown of |
Total cumulative |
% Breakdown of the total |
|||
|
distributions for the |
cumulative distributions |
|||||
|
distribution |
current distribution |
fiscal year to date |
for the fiscal year to date |
|||
Net Investment Income |
0.00760 |
38% |
0.05391 |
|
38% |
|
|
Net Realized ST Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
|
Net Realized LT Cap Gains |
0.00000 |
0% |
0.00000 |
|
0% |
|
|
Return of Capital or |
0.01239 |
62% |
0.08795 |
|
62% |
|
|
Other Capital Source |
|
|
|||||
Total (per common share) |
0.01999 |
100% |
0.14186 |
|
100% |
|
|
Average annual total return (in relation to NAV) for the five years ended 4-30-2024 |
|
|
1.67% |
|
|||
Annualized current distribution rate expressed as a percentage of month end NAV as of 4-30-2024 |
|
8.57% |
|
||||
Cumulative total return (in relation to NAV) for the fiscal year through 4-30-2024 |
|
|
4.23% |
|
|||
Cumulative fiscal year distributions as a percentage of NAV as of 4-30-2024 |
|
|
5.07% |
|
You should not draw any conclusions about the fund's investment performance from the amount of this distribution or from the terms of the fund's managed distribution plan.
The fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. A return of capital distribution does not necessarily reflect the fund's investment performance and should not be confused with "yield" or "income."
The amounts and sources of distributions reported in this notice are only estimates and are not being provided for tax- reporting purposes. The actual amounts and sources of the amounts for tax-reporting purposes will depend upon the fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
If you have any questions regarding this information, please call our fund service department at 1-800-637-2304 any business day from 9 a.m. to 5 p.m. Eastern time.
MINSN-0524