SEC Form N-CSRS filed by MFS Intermediate High Income Fund
$CIF
Trusts Except Educational Religious and Charitable
Finance
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 811-05567
MFS INTERMEDIATE HIGH INCOME FUND
(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: November 30
Date of reporting period: May 31, 2025
ITEM 1. REPORTS TO STOCKHOLDERS.
Item 1(a):
Semiannual Report
May 31, 2025
MFS® Intermediate High
Income Fund
Income Fund
CIH-SEM
MANAGED DISTRIBUTION POLICY
DISCLOSURE
The MFS Intermediate High Income
Fund’s (the fund) Board of Trustees adopted a managed distribution policy. The fund seeks to pay monthly distributions based on an annual rate of 9.50% of the fund’s average monthly net asset value. The
primary purpose of the managed distribution policy is to provide shareholders with a constant, but not guaranteed, fixed rate of distribution each month. You should not draw any conclusions about the fund’s
investment performance from the amount of the current distribution or from the terms of the fund’s managed distribution policy. The Board may amend or terminate the managed distribution policy at any time
without prior notice to fund shareholders. The amendment or termination of the managed distribution policy could have an adverse effect on the market price of the fund’s shares.
With each distribution, the fund
will issue a notice to shareholders and an accompanying press release which will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and
sources of distributions reported in the notice to shareholders 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. Please refer to “Tax Matters and Distributions” under Note 2 of the Notes to Financial Statements for information regarding the
tax character of the fund’s distributions.
Under a managed distribution policy
the fund may at times distribute more than its net investment income and net realized capital gains; therefore, a portion of your distribution may result in 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. Any such returns of capital will decrease the fund’s total assets and, therefore, could have the effect of increasing the
fund’s expense ratio. In addition, in order to make the level of distributions called for under its managed distribution policy, the fund may have to sell portfolio securities at a less than opportune time. A
return of capital does not necessarily reflect the fund’s investment performance and should not be confused with ‘yield’ or ‘income’. The fund’s total return in relation to changes
in net asset value is presented in the Financial Highlights.
MFS® Intermediate High
Income Fund
Income Fund
New York Stock Exchange Symbol: CIF
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| back cover |
NOT FDIC INSURED
• MAY LOSE VALUE • NO BANK GUARANTEE
Portfolio Composition
| (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. Not Rated includes fixed income securities and fixed income derivatives that have not been rated by any rating agency. Non-Fixed Income includes equity securities (including convertible bonds and equity derivatives), ETFs and Options on ETFs, and/or commodity-linked derivatives. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies. |
1
Portfolio Composition - continued
| (b) | Cash & Cash Equivalents (Less Liabilities) includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Liabilities include the value of outstanding borrowings made by the fund for leverage transactions. Cash & Cash Equivalents (Less Liabilities) is negative due to these borrowings. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities. Please see Note 6 in the Notes to Financial Statements for more information on the fund's outstanding borrowings. |
| (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%. |
Where the fund holds convertible
bonds, they are treated as part of the equity portion of the portfolio.
Other includes equivalent exposure
from currency derivatives and/or any offsets to derivative positions and may be negative.
Percentages are based on net assets
as of May 31, 2025.
The portfolio is actively managed
and current holdings may be different.
2
Portfolio Managers' Profiles
| Portfolio Manager | Primary Role | Since | Title and Five Year History |
| David Cole | Portfolio Manager | 2007 | Investment Officer of MFS; employed in the investment management area of MFS since 2004. |
| Michael Skatrud | Portfolio Manager | 2018 | Investment Officer of MFS; employed in the investment management area of MFS since 2013. |
Other Notes
The fund’s shares may trade at
a discount or premium to net asset value. When fund shares trade at a premium, buyers pay more than the net asset value of the underlying fund shares, and shares purchased at a premium would receive less than the
amount paid for them in the event of the fund’s concurrent liquidation.
The fund's target annual
distribution rate is calculated based on an annual rate of 9.50% of the fund's average monthly net asset value, not a fixed share price, and the fund's distribution amount will fluctuate with changes in the
fund's average monthly net assets.
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.
3
Portfolio of Investments
5/31/25 (unaudited)
The Portfolio of Investments is a
complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
| Issuer | Shares/Par | Value ($) | ||
| Bonds – 138.8% | ||||
| Aerospace & Defense – 6.3% | ||||
| Axon Enterprise, Inc., 6.125%, 3/15/2030 (n) | $ | 173,000 | $176,443 | |
| Boeing Co., 5.805%, 5/01/2050 | 153,000 | 143,274 | ||
| Bombardier, Inc., 7.5%, 2/01/2029 (n) | 95,000 | 98,331 | ||
| Bombardier, Inc., 8.75%, 11/15/2030 (n) | 70,000 | 75,131 | ||
| Bombardier, Inc., 7.25%, 7/01/2031 (n) | 88,000 | 90,750 | ||
| Bombardier, Inc., 7%, 6/01/2032 (n) | 53,000 | 54,204 | ||
| Bombardier, Inc., 6.75%, 6/15/2033 (n) | 71,000 | 71,995 | ||
| F-Brasile S.p.A./F-Brasile U.S. LLC, 7.375%, 8/15/2026 (n) | 200,000 | 199,250 | ||
| Moog, Inc., 4.25%, 12/15/2027 (n) | 133,000 | 128,828 | ||
| TransDigm, Inc., 5.5%, 11/15/2027 | 116,000 | 115,909 | ||
| TransDigm, Inc., 6.75%, 8/15/2028 (n) | 108,000 | 109,874 | ||
| TransDigm, Inc., 4.625%, 1/15/2029 | 151,000 | 146,240 | ||
| TransDigm, Inc., 6.375%, 3/01/2029 (n) | 82,000 | 83,336 | ||
| TransDigm, Inc., 6.875%, 12/15/2030 (n) | 249,000 | 256,798 | ||
| TransDigm, Inc., 6.375%, 5/31/2033 (n) | 288,000 | 284,544 | ||
| $2,034,907 | ||||
| Automotive – 2.4% | ||||
| Adient Global Holdings Ltd., 7.5%, 2/15/2033 (n) | $ | 71,000 | $70,441 | |
| Allison Transmission, Inc., 3.75%, 1/30/2031 (n) | 262,000 | 237,830 | ||
| Dealer Tire LLC/DT Issuer LLC, 8%, 2/01/2028 (n) | 119,000 | 116,294 | ||
| Dornoch Debt Merger Sub, Inc., 6.625%, 10/15/2029 (n) | 161,000 | 123,741 | ||
| Real Hero Merger Sub 2, Inc., 6.25%, 2/01/2029 (n) | 123,000 | 95,541 | ||
| Wabash National Corp., 4.5%, 10/15/2028 (n) | 158,000 | 134,837 | ||
| $778,684 | ||||
| Broadcasting – 2.4% | ||||
| Banijay Group S.A.S., 8.125%, 5/01/2029 (n) | $ | 200,000 | $207,545 | |
| Gray Media, Inc., 10.5%, 7/15/2029 (n) | 57,000 | 60,621 | ||
| Midas OpCo Holdings LLC, 5.625%, 8/15/2029 (n) | 156,000 | 146,677 | ||
| Sinclair Television Group, Inc., 8.125%, 2/15/2033 (n) | 135,000 | 135,072 | ||
| Univision Communications, Inc., 8%, 8/15/2028 (n) | 85,000 | 85,054 | ||
| Univision Communications, Inc., 8.5%, 7/31/2031 (n) | 160,000 | 153,626 | ||
| $788,595 | ||||
| Brokerage & Asset Managers – 2.7% | ||||
| AG TTMT Escrow Issuer LLC, 8.625%, 9/30/2027 (n) | $ | 179,000 | $185,823 | |
| Aretec Escrow Issuer 2, Inc., 10%, 8/15/2030 (n) | 143,000 | 155,822 | ||
| Aretec Escrow Issuer, Inc., 7.5%, 4/01/2029 (n) | 65,000 | 64,941 | ||
| Hightower Holding LLC, 6.75%, 4/15/2029 (n) | 107,000 | 105,515 | ||
4
Portfolio of Investments (unaudited)
– continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Brokerage & Asset Managers – continued | ||||
| Hightower Holding LLC, 9.125%, 1/31/2030 (n) | $ | 64,000 | $66,618 | |
| Jane Street Group/JSG Finance, Inc., 6.125%, 11/01/2032 (n) | 297,000 | 297,492 | ||
| $876,211 | ||||
| Building – 7.1% | ||||
| ABC Supply Co., Inc., 3.875%, 11/15/2029 (n) | $ | 124,000 | $115,492 | |
| AmeriTex Holdco Intermediate LLC, 10.25%, 10/15/2028 (n) | 145,000 | 153,850 | ||
| BCPE Ulysses Intermediate, Inc., 7.75% (7.75% Cash or 8.5% PIK), 4/01/2027 (n)(p) | 57,000 | 54,156 | ||
| Cornerstone Building Brands, Inc., 6.125%, 1/15/2029 (n) | 125,000 | 90,737 | ||
| Cornerstone Building Brands, Inc., 9.5%, 8/15/2029 (n) | 59,000 | 52,423 | ||
| Foundation Building Materials LLC, 6%, 3/01/2029 (n) | 176,000 | 149,910 | ||
| GYP Holding III Corp., 4.625%, 5/01/2029 (n) | 225,000 | 216,128 | ||
| Knife River Corp., 7.75%, 5/01/2031 (n) | 174,000 | 182,128 | ||
| LBM Acquisition LLC, 6.25%, 1/15/2029 (n) | 107,000 | 85,935 | ||
| Miter Brands Acquisition Holdco, Inc., 6.75%, 4/01/2032 (n) | 47,000 | 47,354 | ||
| MIWD Holdco II LLC/MIWD Finance Co., 5.5%, 2/01/2030 (n) | 175,000 | 161,339 | ||
| New Enterprise Stone & Lime Co., Inc., 5.25%, 7/15/2028 (n) | 105,000 | 103,042 | ||
| New Enterprise Stone & Lime Co., Inc., 9.75%, 7/15/2028 (n) | 56,000 | 56,337 | ||
| Patrick Industries, Inc., 6.375%, 11/01/2032 (n) | 212,000 | 208,958 | ||
| Quikrete Holdings Inc., 6.375%, 3/01/2032 (n) | 145,000 | 147,343 | ||
| Standard Building Solutions, Inc., 6.5%, 8/15/2032 (n) | 88,000 | 89,371 | ||
| Standard Industries, Inc., 4.75%, 1/15/2028 (n) | 51,000 | 50,079 | ||
| Standard Industries, Inc., 4.375%, 7/15/2030 (n) | 171,000 | 160,486 | ||
| White Cap Buyer LLC, 6.875%, 10/15/2028 (n) | 193,000 | 189,199 | ||
| $2,314,267 | ||||
| Business Services – 2.8% | ||||
| athenahealth, Inc., 6.5%, 2/15/2030 (n) | $ | 159,000 | $153,200 | |
| CACI International, Inc., 6.375%, 6/15/2033 (n) | 142,000 | 144,761 | ||
| Iron Mountain, Inc., 4.875%, 9/15/2027 (n) | 93,000 | 91,898 | ||
| Iron Mountain, Inc., 5.25%, 3/15/2028 (n) | 132,000 | 130,552 | ||
| Iron Mountain, Inc., 5.625%, 7/15/2032 (n) | 122,000 | 119,039 | ||
| Iron Mountain, Inc., 6.25%, 1/15/2033 (n) | 105,000 | 105,986 | ||
| Shift4 Payments LLC/Shift4 Payments Finance Sub, Inc., 6.75%, 8/15/2032 (n) | 166,000 | 169,369 | ||
| $914,805 | ||||
| Cable TV – 7.0% | ||||
| Cable One, Inc., 4%, 11/15/2030 (n) | $ | 156,000 | $120,816 | |
| CCO Holdings LLC/CCO Holdings Capital Corp., 4.75%, 3/01/2030 (n) | 470,000 | 448,657 | ||
| CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 8/15/2030 (n) | 333,000 | 312,238 | ||
| CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 5/01/2032 | 84,000 | 76,452 | ||
| CCO Holdings LLC/CCO Holdings Capital Corp., 4.25%, 1/15/2034 (n) | 98,000 | 84,597 | ||
5
Portfolio of Investments (unaudited)
– continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Cable TV – continued | ||||
| CSC Holdings LLC, 5.375%, 2/01/2028 (n) | $ | 200,000 | $182,403 | |
| DIRECTV Financing LLC, 8.875%, 2/01/2030 (n) | 65,000 | 64,029 | ||
| DIRECTV Holdings LLC / DIRECTV Financing Co., Inc., 10%, 2/15/2031 (n) | 44,000 | 42,827 | ||
| DISH DBS Corp., 7.75%, 7/01/2026 | 96,000 | 82,538 | ||
| DISH DBS Corp., 5.125%, 6/01/2029 | 98,000 | 64,430 | ||
| DISH Network Corp., 11.75%, 11/15/2027 (n) | 94,000 | 96,981 | ||
| EchoStar Corp., 10.75%, 11/30/2029 | 144,824 | 145,534 | ||
| Virgin Media Finance PLC, 5%, 7/15/2030 (n) | 200,000 | 181,311 | ||
| Virgin Media Vendor Financing Notes IV DAC, 5%, 7/15/2028 (n) | 225,000 | 219,248 | ||
| Ziggo Bond Finance B.V., 5.125%, 2/28/2030 (n) | 200,000 | 169,525 | ||
| $2,291,586 | ||||
| Chemicals – 3.0% | ||||
| Cerdia Finanz GmbH, 9.375%, 10/03/2031 (n) | $ | 200,000 | $205,505 | |
| Chemours Co., 4.625%, 11/15/2029 (n) | 209,000 | 170,965 | ||
| Chemours Co., 8%, 1/15/2033 (n) | 57,000 | 49,695 | ||
| Consolidated Energy Finance S.A., 5.625%, 10/15/2028 (n) | 150,000 | 121,101 | ||
| SCIH Salt Holdings, Inc., 6.625%, 5/01/2029 (n) | 193,000 | 189,353 | ||
| SNF Group SACA, 3.375%, 3/15/2030 (n) | 250,000 | 228,328 | ||
| $964,947 | ||||
| Computer Software – 1.9% | ||||
| Amentum Escrow Corp., 7.25%, 8/01/2032 (n) | $ | 159,000 | $162,193 | |
| Cloud Software Group, Inc., 8.25%, 6/30/2032 (n) | 173,000 | 181,905 | ||
| Fair Isaac Corp., 6%, 5/15/2033 (n) | 143,000 | 142,730 | ||
| Neptune Bidco U.S., Inc., 9.29%, 4/15/2029 (n) | 134,000 | 126,966 | ||
| $613,794 | ||||
| Computer Software - Systems – 2.0% | ||||
| Sabre GLBL, Inc., 8.625%, 6/01/2027 (n) | $ | 87,000 | $89,460 | |
| Sabre GLBL, Inc., 10.75%, 11/15/2029 (n) | 49,000 | 49,980 | ||
| Sabre GLBL, Inc., 11.125%, 7/15/2030 (n) | 42,000 | 43,092 | ||
| SS&C Technologies Holdings, Inc., 5.5%, 9/30/2027 (n) | 248,000 | 247,723 | ||
| Virtusa Corp., 7.125%, 12/15/2028 (n) | 92,000 | 88,939 | ||
| Zebra Technologies Corp., “A”, 6.5%, 6/01/2032 (n) | 136,000 | 138,424 | ||
| $657,618 | ||||
| Conglomerates – 2.9% | ||||
| Amsted Industries, Inc., 6.375%, 3/15/2033 (n) | $ | 109,000 | $110,634 | |
| BWX Technologies, Inc., 4.125%, 6/30/2028 (n) | 44,000 | 42,820 | ||
| BWX Technologies, Inc., 4.125%, 4/15/2029 (n) | 265,000 | 253,875 | ||
| Emerald Debt Merger, 6.625%, 12/15/2030 (n) | 157,000 | 158,588 | ||
| Gates Corp., 6.875%, 7/01/2029 (n) | 114,000 | 116,822 | ||
6
Portfolio of Investments (unaudited)
– continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Conglomerates – continued | ||||
| Husky Injection Molding Systems Ltd., 9%, 2/15/2029 (n) | $ | 117,000 | $119,575 | |
| SPX Flow, Inc., 8.75%, 4/01/2030 (n) | 145,000 | 149,257 | ||
| $951,571 | ||||
| Construction – 1.7% | ||||
| Beazer Homes USA, Inc., 7.5%, 3/15/2031 (n) | $ | 116,000 | $113,815 | |
| Empire Communities Corp., 9.75%, 5/01/2029 (n) | 162,000 | 162,608 | ||
| Mattamy Group Corp., 5.25%, 12/15/2027 (n) | 63,000 | 62,658 | ||
| Mattamy Group Corp., 4.625%, 3/01/2030 (n) | 84,000 | 79,076 | ||
| Weekley Homes LLC/Weekley Finance Corp., 4.875%, 9/15/2028 (n) | 122,000 | 117,256 | ||
| $535,413 | ||||
| Consumer Products – 4.5% | ||||
| Acushnet Co., 7.375%, 10/15/2028 (n) | $ | 138,000 | $142,997 | |
| Amer Sports Co., 6.75%, 2/16/2031 (n) | 165,000 | 171,553 | ||
| CD&R Smokey Buyer, Inc./Radio Systems Corp., 9.5%, 10/15/2029 (n) | 114,000 | 94,620 | ||
| Champ Acquisition Corp., 8.375%, 12/01/2031 (n) | 102,000 | 107,098 | ||
| MajorDrive Holdings IV LLC, 6.375%, 6/01/2029 (n) | 58,000 | 43,692 | ||
| Newell Brands, Inc., 8.5%, 6/01/2028 (n) | 71,000 | 73,453 | ||
| Newell Brands, Inc., 6.375%, 5/15/2030 | 157,000 | 147,493 | ||
| Newell Brands, Inc., 6.625%, 5/15/2032 | 87,000 | 80,274 | ||
| Opal Bidco S.A.S., 5.5%, 3/31/2032 (n) | EUR | 100,000 | 115,450 | |
| Perrigo Finance Unlimited Co., 6.125%, 9/30/2032 | $ | 208,000 | 207,632 | |
| Prestige Consumer Healthcare, Inc., 5.125%, 1/15/2028 (n) | 153,000 | 152,259 | ||
| Prestige Consumer Healthcare, Inc., 3.75%, 4/01/2031 (n) | 146,000 | 132,520 | ||
| $1,469,041 | ||||
| Consumer Services – 4.9% | ||||
| Allied Universal Holdco LLC, 9.75%, 7/15/2027 (n) | $ | 102,000 | $102,838 | |
| Allied Universal Holdco LLC, 7.875%, 2/15/2031 (n) | 157,000 | 162,710 | ||
| Arches Buyer, Inc., 6.125%, 12/01/2028 (n) | 167,000 | 152,647 | ||
| Garda World Security Corp., 8.375%, 11/15/2032 (n) | 156,000 | 156,523 | ||
| GoDaddy, Inc., 3.5%, 3/01/2029 (n) | 208,000 | 194,157 | ||
| New Flyer Holdings, Inc., 9.25%, 7/01/2030 (n)(w) | 43,000 | 44,129 | ||
| Raven Acquisition Holdings LLC, 6.875%, 11/15/2031 (n) | 144,000 | 143,347 | ||
| Realogy Group LLC/Realogy Co-Issuer Corp., 5.75%, 1/15/2029 (n) | 50,000 | 41,000 | ||
| Realogy Group LLC/Realogy Co-Issuer Corp., 5.25%, 4/15/2030 (n) | 135,000 | 104,850 | ||
| Service Corp. International, 5.75%, 10/15/2032 | 199,000 | 197,754 | ||
| TriNet Group, Inc., 3.5%, 3/01/2029 (n) | 156,000 | 144,175 | ||
| TriNet Group, Inc., 7.125%, 8/15/2031 (n) | 29,000 | 29,899 | ||
| WASH Multi-Family Acquisition, Inc., 5.75%, 4/15/2026 (n) | 135,000 | 134,679 | ||
| $1,608,708 | ||||
7
Portfolio of Investments (unaudited)
– continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Containers – 1.8% | ||||
| Ball Corp., 6%, 6/15/2029 | $ | 70,000 | $71,387 | |
| Ball Corp., 2.875%, 8/15/2030 | 230,000 | 203,850 | ||
| Clydesdale Acquisition Holdings, Inc., 8.75%, 4/15/2030 (n) | 104,000 | 106,354 | ||
| Clydesdale Acquisition Holdings, Inc., 6.75%, 4/15/2032 (n) | 42,000 | 42,444 | ||
| Owens-Brockway Glass Container, Inc., 7.25%, 5/15/2031 (n) | 157,000 | 157,268 | ||
| $581,303 | ||||
| Electrical Equipment – 0.3% | ||||
| CommScope Technologies LLC, 5%, 3/15/2027 (n) | $ | 71,000 | $68,613 | |
| CommScope, Inc., 4.75%, 9/01/2029 (n) | 42,000 | 40,216 | ||
| $108,829 | ||||
| Electronics – 0.9% | ||||
| Diebold Nixdorf, Inc., 7.75%, 3/31/2030 (n) | $ | 127,000 | $133,491 | |
| Entegris, Inc., 4.375%, 4/15/2028 (n) | 77,000 | 74,341 | ||
| Entegris, Inc., 3.625%, 5/01/2029 (n) | 49,000 | 45,694 | ||
| Entegris, Inc., 5.95%, 6/15/2030 (n) | 44,000 | 44,024 | ||
| $297,550 | ||||
| Energy - Independent – 6.1% | ||||
| Chord Energy Corp., 6.75%, 3/15/2033 (n) | $ | 72,000 | $71,502 | |
| Civitas Resources, Inc., 8.375%, 7/01/2028 (n) | 94,000 | 94,705 | ||
| Civitas Resources, Inc., 8.625%, 11/01/2030 (n) | 52,000 | 51,281 | ||
| Civitas Resources, Inc., 8.75%, 7/01/2031 (n) | 81,000 | 79,194 | ||
| CNX Resources Corp., 7.25%, 3/01/2032 (n) | 115,000 | 117,194 | ||
| Comstock Resources, Inc., 6.75%, 3/01/2029 (n) | 226,000 | 222,751 | ||
| Encino Acquisition Partners Holdings LLC, 8.75%, 5/01/2031 (n) | 129,000 | 140,891 | ||
| Gulfport Energy Corp., 6.75%, 9/01/2029 (n) | 172,000 | 174,486 | ||
| Magnolia Oil & Gas Operating LLC/Magnolia Oil & Gas Finance Corp., 6.875%, 12/01/2032 (n) | 143,000 | 141,590 | ||
| Matador Resources Co., 6.875%, 4/15/2028 (n) | 162,000 | 164,227 | ||
| Matador Resources Co., 6.5%, 4/15/2032 (n) | 50,000 | 48,957 | ||
| Permian Resources Operating LLC, 5.875%, 7/01/2029 (n) | 143,000 | 141,243 | ||
| Permian Resources Operating LLC, 7%, 1/15/2032 (n) | 96,000 | 98,476 | ||
| Permian Resources Operating LLC, 6.25%, 2/01/2033 (n) | 51,000 | 50,319 | ||
| Sitio Royalties Operating Partnership LP, 7.875%, 11/01/2028 (n) | 155,000 | 159,857 | ||
| Vital Energy, Inc., 7.875%, 4/15/2032 (n) | 133,000 | 107,880 | ||
| Wildfire Intermediate Holdings LLC, 7.5%, 10/15/2029 (n) | 114,000 | 110,261 | ||
| $1,974,814 | ||||
| Entertainment – 5.1% | ||||
| Carnival Corp., 5.75%, 3/15/2030 (n) | $ | 144,000 | $144,334 | |
| Carnival Corp., 6.125%, 2/15/2033 (n) | 72,000 | 72,178 | ||
| Life Time, Inc., 6%, 11/15/2031 (n) | 164,000 | 164,366 | ||
8
Portfolio of Investments (unaudited)
– continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Entertainment – continued | ||||
| Lindblad Expeditions Holdings, Inc., 9%, 5/15/2028 (n) | $ | 143,000 | $147,318 | |
| Motion Bondco DAC, 6.625%, 11/15/2027 (n) | 200,000 | 189,009 | ||
| NCL Corp. Ltd., 5.875%, 3/15/2026 (n) | 14,000 | 14,009 | ||
| NCL Corp. Ltd., 6.25%, 3/01/2030 (n) | 146,000 | 144,436 | ||
| NCL Corp. Ltd., 6.75%, 2/01/2032 (n) | 93,000 | 93,017 | ||
| Royal Caribbean Cruises Ltd., 5.625%, 9/30/2031 (n) | 73,000 | 72,152 | ||
| Royal Caribbean Cruises Ltd., 6%, 2/01/2033 (n) | 177,000 | 177,635 | ||
| Six Flags Entertainment Corp., 6.625%, 5/01/2032 (n) | 201,000 | 204,921 | ||
| Viking Cruises Ltd. Co., 5.875%, 9/15/2027 (n) | 59,000 | 58,971 | ||
| Viking Ocean Cruises Ship VII Ltd., 5.625%, 2/15/2029 (n) | 188,000 | 185,781 | ||
| $1,668,127 | ||||
| Financial Institutions – 7.3% | ||||
| Avation Capital S.A., 8.25% (8.25% Cash or 9% PIK), 10/31/2026 (n)(p) | $ | 210,916 | $204,576 | |
| Azorra Finance Ltd., 7.75%, 4/15/2030 (n) | 217,000 | 217,622 | ||
| Credit Acceptance Corp., 9.25%, 12/15/2028 (n) | 69,000 | 73,012 | ||
| Credit Acceptance Corp., 6.625%, 3/15/2030 (n) | 117,000 | 116,543 | ||
| Freedom Mortgage Corp., 7.625%, 5/01/2026 (n) | 111,000 | 110,804 | ||
| Freedom Mortgage Holdings LLC, 9.25%, 2/01/2029 (n) | 131,000 | 135,064 | ||
| FTAI Aviation Ltd., 5.5%, 5/01/2028 (n) | 170,000 | 168,579 | ||
| FTAI Aviation Ltd., 7.875%, 12/01/2030 (n) | 106,000 | 111,393 | ||
| Icahn Enterprises LP/Icahn Enterprises Finance Corp., 9.75%, 1/15/2029 | 111,000 | 107,557 | ||
| Icahn Enterprises LP/Ichan Enterprises Finance Corp., 10%, 11/15/2029 (n) | 57,000 | 55,563 | ||
| Jefferson Capital Holdings LLC, 8.25%, 5/15/2030 (n) | 142,000 | 145,347 | ||
| Nationstar Mortgage Holdings, Inc., 6%, 1/15/2027 (n) | 135,000 | 135,020 | ||
| Nationstar Mortgage Holdings, Inc., 6.5%, 8/01/2029 (n) | 114,000 | 116,112 | ||
| Navient Corp., 7.875%, 6/15/2032 | 50,000 | 50,426 | ||
| OneMain Finance Corp., 6.625%, 5/15/2029 | 145,000 | 146,616 | ||
| OneMain Finance Corp., 5.375%, 11/15/2029 | 92,000 | 89,136 | ||
| OneMain Finance Corp., 7.5%, 5/15/2031 | 55,000 | 56,532 | ||
| PennyMac Financial Services, Inc., 6.875%, 2/15/2033 (n) | 229,000 | 230,230 | ||
| Walker & Dunlop, Inc., 6.625%, 4/01/2033 (n) | 117,000 | 118,473 | ||
| $2,388,605 | ||||
| Food & Beverages – 4.5% | ||||
| Chobani LLC/Chobani Finance Corp., 7.625%, 7/01/2029 (n) | $ | 124,000 | $130,022 | |
| Fiesta Purchaser, Inc., 7.875%, 3/01/2031 (n) | 80,000 | 83,957 | ||
| Fiesta Purchaser, Inc., 9.625%, 9/15/2032 (n) | 92,000 | 96,243 | ||
| Performance Food Group Co., 5.5%, 10/15/2027 (n) | 160,000 | 159,337 | ||
| Performance Food Group Co., 6.125%, 9/15/2032 (n) | 98,000 | 98,789 | ||
| Post Holdings, Inc., 4.625%, 4/15/2030 (n) | 228,000 | 215,775 | ||
9
Portfolio of Investments (unaudited)
– continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Food & Beverages – continued | ||||
| Post Holdings, Inc., 6.25%, 10/15/2034 (n) | $ | 63,000 | $62,230 | |
| Primo Water Holdings Inc./Triton Water Holdings, 4.375%, 4/30/2029 (n) | 245,000 | 235,139 | ||
| U.S. Foods Holding Corp., 4.75%, 2/15/2029 (n) | 240,000 | 234,697 | ||
| U.S. Foods Holding Corp., 5.75%, 4/15/2033 (n) | 38,000 | 37,331 | ||
| Viking Baked Goods Acquisition Corp., 8.625%, 11/01/2031 (n) | 120,000 | 113,136 | ||
| $1,466,656 | ||||
| Forest & Paper Products – 1.0% | ||||
| Graphic Packaging International LLC, 6.375%, 7/15/2032 (n) | $ | 188,000 | $188,278 | |
| Veritiv Operating Co., 10.5%, 11/30/2030 (n) | 130,000 | 138,268 | ||
| $326,546 | ||||
| Gaming & Lodging – 5.3% | ||||
| CCM Merger, Inc., 6.375%, 5/01/2026 (n) | $ | 150,000 | $150,056 | |
| CDI Escrow Issuer, Inc., 5.75%, 4/01/2030 (n) | 298,000 | 293,804 | ||
| Hilton Domestic Operating Co., Inc., 4.875%, 1/15/2030 | 297,000 | 291,104 | ||
| Hilton Domestic Operating Co., Inc., 3.625%, 2/15/2032 (n) | 159,000 | 141,518 | ||
| Melco Resorts Finance Limited, 5.375%, 12/04/2029 | 200,000 | 183,277 | ||
| Voyager Parent LLC, 9.25%, 7/01/2032 (n) | 43,000 | 44,424 | ||
| Wyndham Hotels & Resorts, Inc., 4.375%, 8/15/2028 (n) | 228,000 | 220,622 | ||
| Wynn Macau Ltd., 5.625%, 8/26/2028 (n) | 200,000 | 192,799 | ||
| Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., 5.125%, 10/01/2029 (n) | 183,000 | 178,450 | ||
| Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., 7.125%, 2/15/2031 (n) | 36,000 | 37,759 | ||
| $1,733,813 | ||||
| Industrial – 1.1% | ||||
| APi Escrow Corp., 4.75%, 10/15/2029 (n) | $ | 264,000 | $257,066 | |
| Brundage-Bone Concrete Pumping Holdings, Inc., 7.5%, 2/01/2032 (n) | 85,000 | 84,851 | ||
| $341,917 | ||||
| Insurance - Property & Casualty – 5.2% | ||||
| Acrisure LLC/Acrisure Finance, Inc., 8.25%, 2/01/2029 (n) | $ | 115,000 | $118,924 | |
| Acrisure LLC/Acrisure Finance, Inc., 6%, 8/01/2029 (n) | 128,000 | 123,907 | ||
| Acrisure LLC/Acrisure Finance, Inc., 7.5%, 11/06/2030 (n) | 42,000 | 43,336 | ||
| Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer, 5.875%, 11/01/2029 (n) | 101,000 | 99,180 | ||
| Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer, 7%, 1/15/2031 (n) | 121,000 | 123,764 | ||
| Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer, 6.5%, 10/01/2031 (n) | 227,000 | 228,817 | ||
10
Portfolio of Investments (unaudited)
– continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Insurance - Property & Casualty – continued | ||||
| AmWINS Group Benefits, Inc., 6.375%, 2/15/2029 (n) | $ | 71,000 | $71,995 | |
| AmWINS Group Benefits, Inc., 4.875%, 6/30/2029 (n) | 103,000 | 98,678 | ||
| Baldwin Insurance Group Holdings LLC, 7.125%, 5/15/2031 (n) | 212,000 | 218,556 | ||
| Hub International Ltd., 5.625%, 12/01/2029 (n) | 79,000 | 78,351 | ||
| Hub International Ltd., 7.25%, 6/15/2030 (n) | 171,000 | 178,083 | ||
| Hub International Ltd., 7.375%, 1/31/2032 (n) | 74,000 | 77,226 | ||
| Panther Escrow Issuer, 7.125%, 6/01/2031 (n) | 221,000 | 228,625 | ||
| $1,689,442 | ||||
| Interactive Media Services – 0.4% | ||||
| Snap, Inc., 6.875%, 3/01/2033 (n) | $ | 120,000 | $121,554 | |
| Machinery & Tools – 1.3% | ||||
| Manitowoc Co., Inc., 9.25%, 10/01/2031 (n) | $ | 102,000 | $106,282 | |
| Ritchie Bros Holdings, Inc., 7.75%, 3/15/2031 (n) | 291,000 | 304,620 | ||
| $410,902 | ||||
| Medical & Health Technology & Services – 7.5% | ||||
| 180 Medical, Inc., 3.875%, 10/15/2029 (n) | $ | 200,000 | $189,965 | |
| Acadia Healthcare Co., Inc., 7.375%, 3/15/2033 (n) | 116,000 | 118,198 | ||
| Bausch & Lomb Escrow Corp., 8.375%, 10/01/2028 (n) | 124,000 | 128,199 | ||
| Charles River Laboratories International, Inc., 3.75%, 3/15/2029 (n) | 152,000 | 140,798 | ||
| CHS/Community Health Systems, Inc., 6.125%, 4/01/2030 (n) | 86,000 | 66,436 | ||
| CHS/Community Health Systems, Inc., 5.25%, 5/15/2030 (n) | 336,000 | 302,583 | ||
| Concentra, Inc., 6.875%, 7/15/2032 (n) | 155,000 | 159,468 | ||
| Encompass Health Corp., 5.75%, 9/15/2025 | 8,000 | 8,000 | ||
| Encompass Health Corp., 4.75%, 2/01/2030 | 181,000 | 176,455 | ||
| Encompass Health Corp., 4.625%, 4/01/2031 | 58,000 | 55,303 | ||
| IQVIA, Inc., 6.5%, 5/15/2030 (n) | 200,000 | 204,269 | ||
| Lifepoint Health, Inc., 9.875%, 8/15/2030 (n) | 85,000 | 91,068 | ||
| Lifepoint Health, Inc., 11%, 10/15/2030 (n) | 94,000 | 103,338 | ||
| Lifepoint Health, Inc., 10%, 6/01/2032 (n) | 60,000 | 62,765 | ||
| Surgery Center Holdings, Inc., 7.25%, 4/15/2032 (n) | 138,000 | 137,734 | ||
| Tenet Healthcare Corp., 6.125%, 10/01/2028 | 107,000 | 107,155 | ||
| Tenet Healthcare Corp., 6.125%, 6/15/2030 | 248,000 | 250,430 | ||
| U.S. Acute Care Solutions LLC, 9.75%, 5/15/2029 (n) | 141,000 | 143,311 | ||
| $2,445,475 | ||||
| Medical Equipment – 1.6% | ||||
| Insulet Corp., 6.5%, 4/01/2033 (n) | $ | 128,000 | $131,617 | |
| Medline Borrower LP, 3.875%, 4/01/2029 (n) | 73,000 | 68,800 | ||
| Medline Borrower LP, 5.25%, 10/01/2029 (n) | 193,000 | 188,610 | ||
| Medline Borrower LP/Medline Co-Issuer, Inc., 6.25%, 4/01/2029 (n) | 119,000 | 121,090 | ||
| $510,117 | ||||
11
Portfolio of Investments (unaudited)
– continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Metals & Mining – 3.8% | ||||
| Baffinland Iron Mines Corp./Baffinland Iron Mines LP, 8.75%, 7/15/2026 (n) | $ | 155,000 | $140,959 | |
| Cleveland-Cliffs, Inc., 7%, 3/15/2032 (n) | 128,000 | 110,406 | ||
| FMG Resources Ltd., 4.375%, 4/01/2031 (n) | 437,000 | 401,181 | ||
| Mineral Resources Ltd., 9.25%, 10/01/2028 (n) | 57,000 | 58,157 | ||
| Novelis, Inc., 4.75%, 1/30/2030 (n) | 170,000 | 161,608 | ||
| Novelis, Inc., 6.875%, 1/30/2030 (n) | 86,000 | 88,686 | ||
| Novelis, Inc., 3.875%, 8/15/2031 (n) | 82,000 | 72,901 | ||
| Petra Diamonds US$ Treasury PLC, 9.75%, 3/08/2026 (n) | 76,107 | 40,528 | ||
| Taseko Mines Ltd., 8.25%, 5/01/2030 (n) | 142,000 | 145,895 | ||
| $1,220,321 | ||||
| Midstream – 9.2% | ||||
| Buckeye Partners LP, 6.75%, 2/01/2030 (n) | $ | 86,000 | $88,770 | |
| Buckeye Partners LP, 5.85%, 11/15/2043 | 43,000 | 36,300 | ||
| Delek Logistics Partners LP/Delek Logistics Corp., 8.625%, 3/15/2029 (n) | 177,000 | 183,313 | ||
| DT Midstream, Inc., 4.375%, 6/15/2031 (n) | 173,000 | 161,562 | ||
| Genesis Energy LP/Genesis Energy Finance Corp., 8.25%, 1/15/2029 | 200,000 | 206,945 | ||
| Kinetik Holdings, Inc., 5.875%, 6/15/2030 (n) | 179,000 | 177,936 | ||
| NFE Financing LLC, 12%, 11/15/2029 (n) | 100,677 | 43,193 | ||
| NuStar Logistics LP, 6.375%, 10/01/2030 | 164,000 | 167,083 | ||
| Prairie Acquiror LP, 9%, 8/01/2029 (n) | 129,000 | 131,140 | ||
| Rockies Express Pipeline LLC, 6.75%, 3/15/2033 (n) | 73,000 | 75,186 | ||
| Rockies Express Pipeline LLC, 6.875%, 4/15/2040 (n) | 146,000 | 139,803 | ||
| Sunoco LP, 7.25%, 5/01/2032 (n) | 186,000 | 193,395 | ||
| Tallgrass Energy Partners LP, 5.5%, 1/15/2028 (n) | 229,000 | 227,576 | ||
| Tallgrass Energy Partners LP, 7.375%, 2/15/2029 (n) | 112,000 | 113,916 | ||
| TransMontaigne Partners LLC, 8.5%, 6/15/2030 (n) | 85,000 | 86,772 | ||
| Venture Global Calcasieu Pass LLC, 3.875%, 8/15/2029 (n) | 70,000 | 65,054 | ||
| Venture Global Calcasieu Pass LLC, 4.125%, 8/15/2031 (n) | 92,000 | 83,231 | ||
| Venture Global LNG, Inc., 8.125%, 6/01/2028 (n) | 128,000 | 130,995 | ||
| Venture Global LNG, Inc., 9.5%, 2/01/2029 (n) | 160,000 | 171,063 | ||
| Venture Global LNG, Inc., 7%, 1/15/2030 (n) | 59,000 | 58,739 | ||
| Venture Global LNG, Inc., 8.375%, 6/01/2031 (n) | 223,000 | 226,377 | ||
| Venture Global LNG, Inc., 9% to 9/30/2029, FLR (CMT - 5yr. + 5.44%) to 3/30/2173 (n) | 178,000 | 167,884 | ||
| Venture Global Plaquemines LNG LLC, 7.5%, 5/01/2033 (n) | 50,000 | 52,222 | ||
| $2,988,455 | ||||
| Network & Telecom – 1.7% | ||||
| Frontier Communications Holdings LLC, 6.75%, 5/01/2029 (n) | $ | 145,000 | $146,984 | |
| Iliad Holding S.A.S., 5.375%, 4/15/2030 (n) | EUR | 100,000 | 115,958 | |
| Iliad Holding S.A.S., 6.875%, 4/15/2031 (n) | 100,000 | 120,824 | ||
12
Portfolio of Investments (unaudited)
– continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Network & Telecom – continued | ||||
| Iliad Holding S.A.S., 6.875%, 4/15/2031 | EUR | 100,000 | $120,825 | |
| Windstream Services, LLC / Windstream Escrow, 8.25%, 10/01/2031 (n) | $ | 57,000 | 59,322 | |
| $563,913 | ||||
| Oil Services – 1.1% | ||||
| Nabors Industries, Inc., 8.875%, 8/15/2031 (n) | $ | 166,000 | $113,602 | |
| U.S.A. Compression Partners LP/Finance Co., 7.125%, 3/15/2029 (n) | 166,000 | 168,609 | ||
| Valaris Ltd., 8.375%, 4/30/2030 (n) | 78,000 | 78,303 | ||
| $360,514 | ||||
| Pharmaceuticals – 1.9% | ||||
| 1261229 B.C. Ltd., 10%, 4/15/2032 (n) | $ | 200,000 | $198,004 | |
| Bausch Health Co., Inc., 4.875%, 6/01/2028 (n) | 110,000 | 89,788 | ||
| Bausch Health Co., Inc., 5.25%, 1/30/2030 (n) | 62,000 | 35,191 | ||
| Grifols S.A., 7.125%, 5/01/2030 | EUR | 100,000 | 118,059 | |
| Organon Finance 1 LLC, 4.125%, 4/30/2028 (n) | $ | 200,000 | 187,865 | |
| $628,907 | ||||
| Pollution Control – 0.8% | ||||
| GFL Environmental, Inc., 4%, 8/01/2028 (n) | $ | 147,000 | $141,313 | |
| GFL Environmental, Inc., 6.75%, 1/15/2031 (n) | 47,000 | 48,753 | ||
| Wrangler Holdco Corp., 6.625%, 4/01/2032 (n) | 74,000 | 76,322 | ||
| $266,388 | ||||
| Precious Metals & Minerals – 1.5% | ||||
| Coeur Mining, Inc., 5.125%, 2/15/2029 (n) | $ | 58,000 | $55,820 | |
| Eldorado Gold Corp., 6.25%, 9/01/2029 (n) | 171,000 | 169,923 | ||
| IAMGOLD Corp., 5.75%, 10/15/2028 (n) | 156,000 | 153,877 | ||
| New Gold, Inc., 6.875%, 4/01/2032 (n) | 120,000 | 122,582 | ||
| $502,202 | ||||
| Real Estate - Healthcare – 0.5% | ||||
| MPT Operating Partnership LP/MPT Finance Corp., REIT, 5%, 10/15/2027 | $ | 58,000 | $50,690 | |
| MPT Operating Partnership LP/MPT Finance Corp., REIT, 8.5%, 2/15/2032 (n) | 102,000 | 104,554 | ||
| $155,244 | ||||
| Real Estate - Other – 1.7% | ||||
| Park Intermediate Holdings LLC, 4.875%, 5/15/2029 (n) | $ | 142,000 | $134,311 | |
| RHP Hotel Properties LP/RHP Finance Corp., 7.25%, 7/15/2028 (n) | 242,000 | 249,504 | ||
| XHR LP, REIT, 4.875%, 6/01/2029 (n) | 177,000 | 168,089 | ||
| $551,904 | ||||
13
Portfolio of Investments (unaudited)
– continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Restaurants – 1.4% | ||||
| 1011778 B.C. ULC/New Red Finance, Inc., 6.125%, 6/15/2029 (n) | $ | 109,000 | $111,161 | |
| 1011778 B.C. ULC/New Red Finance, Inc., 4%, 10/15/2030 (n) | 105,000 | 96,565 | ||
| Fertitta Entertainment LLC, 6.75%, 1/15/2030 (n) | 159,000 | 144,401 | ||
| New Red Finance, Inc., 5.625%, 9/15/2029 (n) | 101,000 | 101,583 | ||
| $453,710 | ||||
| Retailers – 3.0% | ||||
| Hanesbrands, Inc., 9%, 2/15/2031 (n) | $ | 78,000 | $82,409 | |
| L Brands, Inc., 6.625%, 10/01/2030 (n) | 185,000 | 188,959 | ||
| Macy's Retail Holdings LLC, 5.875%, 4/01/2029 (n) | 139,000 | 136,233 | ||
| Mavis Tire Express Services Corp., 6.5%, 5/15/2029 (n) | 104,000 | 98,860 | ||
| Maxeda DIY Holding B.V., 5.875%, 10/01/2026 | EUR | 100,000 | 100,487 | |
| Parkland Corp., 4.625%, 5/01/2030 (n) | $ | 173,000 | 162,548 | |
| Parkland Corp., 6.625%, 8/15/2032 (n) | 29,000 | 29,064 | ||
| Penske Automotive Group Co., 3.75%, 6/15/2029 | 188,000 | 176,227 | ||
| $974,787 | ||||
| Specialty Stores – 1.9% | ||||
| Carvana Co., 9% (9% Cash or 12% PIK) to 8/15/2025, 9% Cash to 12/01/2028 (n)(p) | $ | 49,846 | $51,216 | |
| Carvana Co., 14% (9% Cash or 14% PIK) to 8/15/2025, 9% Cash to 6/01/2031 (n)(p) | 200,631 | 232,715 | ||
| Michael Cos., Inc., 5.25%, 5/01/2028 (n) | 84,000 | 57,262 | ||
| Michael Cos., Inc., 7.875%, 5/01/2029 (n) | 94,000 | 45,355 | ||
| PetSmart, Inc./PetSmart Finance Corp., 7.75%, 2/15/2029 (n) | 250,000 | 243,369 | ||
| $629,917 | ||||
| Supermarkets – 1.5% | ||||
| Albertsons Cos., LLC / Safeway, Inc., 6.25%, 3/15/2033 (n) | $ | 285,000 | $289,326 | |
| KeHE Distributors LLC/KeHE Finance Corp., 9%, 2/15/2029 (n) | 196,000 | 204,329 | ||
| $493,655 | ||||
| Telecommunications - Wireless – 1.8% | ||||
| Altice France S.A., 5.125%, 7/15/2029 (n) | $ | 200,000 | $168,763 | |
| SBA Communications Corp., 3.125%, 2/01/2029 | 227,000 | 211,177 | ||
| Zegona Finance PLC, 8.625%, 7/15/2029 (n) | 200,000 | 213,000 | ||
| $592,940 | ||||
| Telephone Services – 1.0% | ||||
| Level 3 Financing, Inc., 11%, 11/15/2029 (n) | $ | 87,094 | $98,801 | |
| Level 3 Financing, Inc., 3.875%, 10/15/2030 (n) | 108,173 | 91,136 | ||
| Uniti Group/CSL Capital Co., 6.5%, 2/15/2029 (n) | 143,000 | 134,826 | ||
| $324,763 | ||||
14
Portfolio of Investments (unaudited)
– continued
| Issuer | Shares/Par | Value ($) | ||
| Bonds – continued | ||||
| Tobacco – 0.4% | ||||
| Turning Point Brands, Inc., 7.625%, 3/15/2032 (n) | $ | 115,000 | $120,924 | |
| Transportation - Services – 0.6% | ||||
| Avis Budget Finance PLC, 7.25%, 7/31/2030 (n) | EUR | 178,000 | $204,619 | |
| Utilities - Electric Power – 4.0% | ||||
| Calpine Corp., 4.5%, 2/15/2028 (n) | $ | 164,000 | $160,852 | |
| Clearway Energy Operating LLC, 3.75%, 2/15/2031 (n) | 283,000 | 255,407 | ||
| Clearway Energy Operating LLC, 3.75%, 1/15/2032 (n) | 8,000 | 7,027 | ||
| PG&E Corp., 5.25%, 7/01/2030 | 247,000 | 239,654 | ||
| PG&E Corp., 7.375% to 3/15/2030, FLR (CMT - 5yr. + 3.883%) to 3/15/2055 | 71,000 | 69,524 | ||
| TerraForm Global Operating LLC, 6.125%, 3/01/2026 (n) | 55,000 | 54,302 | ||
| TerraForm Power Operating LLC, 5%, 1/31/2028 (n) | 172,000 | 167,229 | ||
| TerraForm Power Operating LLC, 4.75%, 1/15/2030 (n) | 67,000 | 63,155 | ||
| XPLR Infrastructure Operating Partners LP, 4.5%, 9/15/2027 (n) | 90,000 | 87,062 | ||
| XPLR Infrastructure Operating Partners LP, 7.25%, 1/15/2029 (n) | 130,000 | 130,638 | ||
| XPLR Infrastructure Operating Partners LP, 8.375%, 1/15/2031 (n) | 40,000 | 41,772 | ||
| XPLR Infrastructure Operating Partners LP, 8.625%, 3/15/2033 (n) | 33,000 | 34,617 | ||
| $1,311,239 | ||||
| Total Bonds (Identified Cost, $45,448,887) | $45,210,199 | |||
| Common Stocks – 0.4% | ||||
| Oil Services – 0.2% | ||||
| LTRI Holdings LP (a)(u) | 200 | $54,654 | ||
| Telecom Services – 0.2% | ||||
| Intelsat Emergence S.A. (a) | 1,566 | $63,423 | ||
| Total Common Stocks (Identified Cost, $204,858) | $118,077 | |||
| Strike Price | First Exercise | |||
| Warrants – 0.0% | ||||
| Other Banks & Diversified Financials – 0.0% | ||||
| Avation Capital S.A. (1 share for 1 warrant, Expiration 10/31/26) (a) (Identified Cost, $0) | GBP 1.14 | N/A | 3,500 | $1,532 |
15
Portfolio of Investments (unaudited)
– continued
| Issuer | Shares/Par | Value ($) | ||
| Mutual Funds (h) – 5.3% | ||||
| Money Market Funds – 5.3% | ||||
| MFS Institutional Money Market Portfolio, 4.35% (v) (Identified Cost, $1,728,389) | 1,728,406 | $1,728,406 | ||
| Other Assets, Less Liabilities – (44.5)% | (14,491,617) | |||
| Net Assets – 100.0% | $32,566,597 | |||
| (a) | Non-income producing security. | |||
| (h) | An affiliated issuer, which may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $1,728,406 and $45,329,808, respectively. | |||
| (n) | Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $40,508,470, representing 124.4% of net assets. | |||
| (p) | Payment-in-kind (PIK) security for which interest income may be received in additional securities and/or cash. | |||
| (u) | The security was valued using significant unobservable inputs and is considered level 3 under the fair value hierarchy. For further information about the fund’s level 3 holdings, please see Note 2 in the Notes to Financial Statements. | |||
| (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: | |
| 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. |
| REIT | Real Estate Investment Trust |
| Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below: | |
| EUR | Euro |
| GBP | British Pound |
Derivative Contracts at 5/31/25
| Forward Foreign Currency Exchange Contracts | ||||||
| Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
| Liability Derivatives | ||||||
| USD | 483,794 | EUR | 425,970 | Citibank N.A. | 7/18/2025 | $(1,291) |
| USD | 10,420 | EUR | 9,288 | HSBC Bank | 7/18/2025 | (157) |
| USD | 193,598 | EUR | 170,388 | Merrill Lynch International | 7/18/2025 | (436) |
16
Portfolio of Investments (unaudited)
– continued
| Forward Foreign Currency Exchange Contracts - continued | ||||||
| Currency Purchased | Currency Sold | Counterparty | Settlement Date | Unrealized Appreciation (Depreciation) | ||
| Liability Derivatives - continued | ||||||
| USD | 259,422 | EUR | 228,779 | State Street Corp. | 7/18/2025 | $(1,108) |
| $(2,992) | ||||||
See Notes to Financial Statements
17
Financial Statements
Statement of Assets and
Liabilities
At 5/31/25 (unaudited)
This statement represents your
fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.
| Assets | |
| Investments in unaffiliated issuers, at value (identified cost, $45,653,745) | $45,329,808 |
| Investments in affiliated issuers, at value (identified cost, $1,728,389) | 1,728,406 |
| Receivables for | |
| Investments sold | 125,180 |
| Interest | 697,925 |
| Receivable from investment adviser | 5,827 |
| Other assets | 14,480 |
| Total assets | $47,901,626 |
| Liabilities | |
| Notes payable | $15,000,000 |
| Payables for | |
| Distributions | 16,772 |
| Forward foreign currency exchange contracts | 2,992 |
| Investments purchased | 184,481 |
| When-issued investments purchased | 43,000 |
| Payable to affiliates | |
| Administrative services fee | 144 |
| Transfer agent and dividend disbursing costs | 681 |
| Accrued interest expense | 8,881 |
| Accrued expenses and other liabilities | 78,078 |
| Total liabilities | $15,335,029 |
| Net assets | $32,566,597 |
| Net assets consist of | |
| Paid-in capital | $43,435,408 |
| Total distributable earnings (loss) | (10,868,811) |
| Net assets | $32,566,597 |
| Shares of beneficial interest outstanding (unlimited number of shares authorized) | 17,901,986 |
| Net asset value per share (net assets of $32,566,597 / 17,901,986 shares of beneficial interest outstanding) | $1.82 |
See Notes to Financial Statements
18
Financial Statements
Statement of Operations
Six months ended 5/31/25
(unaudited)
This statement describes how much
your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.
| Net investment income (loss) | |
| Income | |
| Interest | $1,611,168 |
| Dividends from affiliated issuers | 22,392 |
| Dividends from unaffiliated issuers | 10,614 |
| Total investment income | $1,644,174 |
| Expenses | |
| Management fee | $122,093 |
| Transfer agent and dividend disbursing costs | 7,396 |
| Administrative services fee | 8,727 |
| Independent Trustees' compensation | 3,194 |
| Stock exchange fee | 11,819 |
| Custodian fee | 5,811 |
| Shareholder communications | 26,572 |
| Audit and tax fees | 52,563 |
| Legal fees | 237 |
| Interest expense and fees | 408,163 |
| Miscellaneous | 20,176 |
| Total expenses | $666,751 |
| Reduction of expenses by investment adviser | (38,975) |
| Net expenses | $627,776 |
| Net investment income (loss) | $1,016,398 |
| Realized and unrealized gain (loss) | |
| Realized gain (loss) (identified cost basis) | |
| Unaffiliated issuers | $(258,338) |
| Affiliated issuers | (97) |
| Forward foreign currency exchange contracts | (15,342) |
| Foreign currency | 2,096 |
| Net realized gain (loss) | $(271,681) |
| Change in unrealized appreciation or depreciation | |
| Unaffiliated issuers | $(144,117) |
| Affiliated issuers | (38) |
| Forward foreign currency exchange contracts | (32,056) |
| Translation of assets and liabilities in foreign currencies | (129) |
| Net unrealized gain (loss) | $(176,340) |
| Net realized and unrealized gain (loss) | $(448,021) |
| Change in net assets from operations | $568,377 |
See Notes to Financial Statements
19
Financial Statements
Statements of Changes in Net
Assets
These statements describe the
increases and/or decreases in net assets resulting from operations, any distributions, and any shareholder transactions.
| Six months ended | Year ended | |
| 5/31/25 (unaudited) | 11/30/24 | |
| Change in net assets | ||
| From operations | ||
| Net investment income (loss) | $1,016,398 | $1,867,588 |
| Net realized gain (loss) | (271,681) | (792,005) |
| Net unrealized gain (loss) | (176,340) | 3,107,833 |
| Change in net assets from operations | $568,377 | $4,183,416 |
| Distributions to shareholders | $(968,770) | $(1,870,641) |
| Tax return of capital distributions to shareholders | $— | $(1,327,359) |
| Distributions from other sources | $(600,975)(a) | $— |
| Change in net assets from fund share transactions | $(163,570) | $(865,747) |
| Total change in net assets | $(1,164,938) | $119,669 |
| Net assets | ||
| At beginning of period | 33,731,535 | 33,611,866 |
| At end of period | $32,566,597 | $33,731,535 |
| (a) | Estimated tax return of capital. All or a portion of this amount may be redesignated as ordinary income and/or capital gains at fiscal year end when the tax character of distributions is determined. Please refer to “Tax Matters and Distributions” under Note 2 of the Notes to Financial Statements for additional information regarding the tax character of the fund’s distributions. |
See Notes to Financial Statements
20
Financial Statements
Statement of Cash Flows
Six months ended 5/31/25
(unaudited)
This statement provides a summary
of cash flows from investment activity for the fund.
| Cash flows from operating activities: | |
| Change in net assets from operations | $568,377 |
| Adjustments to reconcile change in net assets from operations to net cash provided by operating activities: | |
| Purchase of investment securities | (10,376,399) |
| Proceeds from disposition of investment securities | 12,342,032 |
| Purchase of short-term investments, net | (1,129,307) |
| Realized gain/loss on investments | 258,338 |
| Unrealized appreciation/depreciation on investments | 144,155 |
| Unrealized appreciation/depreciation on foreign currency contracts | 32,056 |
| Net amortization/accretion of income | (98,904) |
| Decrease in interest receivable | 43,170 |
| Decrease in accrued expenses and other liabilities | (36,683) |
| Increase in receivable from investment adviser | (5,042) |
| Increase in other assets | (12,473) |
| Increase in interest payable | 4,237 |
| Net cash provided by operating activities | $1,733,557 |
| Cash flows from financing activities: | |
| Distributions paid in cash | $(1,569,987) |
| Repurchase of shares of beneficial interest | (163,570) |
| Net cash used by financing activities | $(1,733,557) |
| Cash and restricted cash: | |
| Beginning of period | $— |
| End of period | $— |
Supplemental disclosure of cash flow
information:
Cash paid during the six months
ended May 31, 2025 for interest was $403,926.
See Notes to Financial Statements
21
Financial Statements
Financial Highlights
The financial highlights table is
intended to help you understand the fund's financial performance for the semiannual period and the past 5 fiscal years. Certain information reflects financial results for a single fund share. The total returns in the
table represent the rate that an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
| Six months ended | Year ended | |||||
| 5/31/25 (unaudited) | 11/30/24 | 11/30/23 | 11/30/22 | 11/30/21 | 11/30/20 | |
| Net asset value, beginning of period | $1.87 | $1.82 | $1.83 | $2.32 | $2.47 | $2.56 |
| Income (loss) from investment operations | ||||||
| Net investment income (loss) (d) | $0.06 | $0.10 | $0.09 | $0.11 | $0.13 | $0.14 |
| Net realized and unrealized gain (loss) | (0.02) | 0.13 | 0.06 | (0.40) | (0.05) | (0.00)(w) |
| Total from investment operations | $0.04 | $0.23 | $0.15 | $(0.29) | $0.08 | $0.14 |
| Less distributions declared to shareholders | ||||||
| From net investment income | $(0.06) | $(0.11) | $(0.09) | $(0.12) | $(0.14) | $(0.15) |
| From tax return of capital | — | (0.07) | (0.08) | (0.08) | (0.09) | (0.08) |
| From other sources | (0.03)(b) | — | — | — | — | — |
| Total distributions declared to shareholders | $(0.09) | $(0.18) | $(0.17) | $(0.20) | $(0.23) | $(0.23) |
| Net increase from repurchase of capital shares | $0.00(w) | $0.00(w) | $0.01 | $— | $— | $0.00(w) |
| Net asset value, end of period (x) | $1.82 | $1.87 | $1.82 | $1.83 | $2.32 | $2.47 |
| Market value, end of period | $1.72 | $1.77 | $1.64 | $1.83 | $2.97 | $2.47 |
| Total return at market value (%) | 2.48(n) | 19.09 | (0.77) | (32.19) | 30.89 | 0.89 |
| Total return at net asset value (%) (j)(r)(s)(x) | 2.35(n) | 13.70 | 10.13 | (13.19) | 2.25 | 6.40 |
| Ratios (%) (to average net assets) and Supplemental data: | ||||||
| Expenses before expense reductions | 4.07(a) | 4.27 | 4.03 | 2.53 | 1.84 | 2.05 |
| Expenses after expense reductions | 3.83(a) | 4.18 | 3.95 | 2.23 | 1.65 | 1.82 |
| Net investment income (loss) | 6.20(a) | 5.53 | 5.20 | 5.54 | 5.27 | 5.75 |
| Portfolio turnover rate | 22(n) | 59 | 44 | 31 | 65 | 57 |
| Net assets at end of period (000 omitted) | $32,567 | $33,732 | $33,612 | $35,545 | $44,943 | $47,585 |
| Supplemental Ratios (%): | ||||||
| Ratios of expenses to average net assets after expense reductions and excluding interest expense and fees | 1.34(a) | 1.34 | 1.34 | 1.34 | 1.34 | 1.34 |
| Senior Securities: | ||||||
| Total notes payable outstanding (000 omitted) | $15,000 | $15,000 | $15,000 | $16,000 | $18,500 | $18,500 |
| Asset coverage per $1,000 of indebtedness (k) | $3,171 | $3,249 | $3,241 | $3,222 | $3,429 | $3,572 |
See Notes to Financial Statements
22
Financial Highlights – continued
| (a) | Annualized. |
| (b) | Estimated tax return of capital. All or a portion of this amount may be redesignated as ordinary income and/or capital gains at fiscal year end when the tax character of distributions is determined. Please refer to “Tax Matters and Distributions” under Note 2 of the Notes to Financial Statements for additional information regarding the tax character of the fund’s distributions. |
| (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. |
| (k) | Calculated by subtracting the fund's total liabilities (not including notes payable) from the fund's total assets and dividing this number by the notes payable outstanding and then multiplying by 1,000. |
| (n) | Not annualized. |
| (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. |
See Notes to Financial Statements
23
Notes to Financial Statements
(unaudited)
(1) Business and
Organization
MFS Intermediate High Income Fund
(the fund) is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a diversified closed-end management investment company.
The fund is an investment company
and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment
Companies.
(2) Significant Accounting
Policies
General — The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s
Statement of Assets and Liabilities through the date that the financial statements were issued. The fund invests in high-yield securities rated below investment grade. Investments in below investment grade quality securities can involve a substantially greater risk of default or can
already be in default, and their values can decline significantly. Below investment grade quality securities tend to be more sensitive to adverse news about the issuer, or the market or economy in general, than higher
quality debt instruments. The fund invests in foreign securities. Investments in foreign securities are vulnerable to the effects of changes in the relative values of the local currency and the U.S. dollar and to
the effects of changes in each country’s market, economic, industrial, political, regulatory, geopolitical, environmental, public health, and other conditions.
In this reporting period, the fund
adopted FASB Accounting Standards Update 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures (“ASU 2023-07”). Adoption of the new standard impacted financial statement
disclosures only and did not affect the fund’s financial position or the results of its operations. An operating segment is a component of a public entity that engages in business activities from which it may
recognize revenues and incur expenses, has operating results that are regularly reviewed by the entity’s chief operating decision maker (CODM) in making resource allocation decisions and assessing segment
performance, and for which discrete financial information is available. The fund represents a single operating segment and the Chairman’s Committee of the fund's adviser acts as the segment’s CODM. The
fund’s total returns, expense ratios, and changes in net assets which are used by the CODM to assess segment performance and to make resource allocation decisions to the segment are consistent with that
presented within the fund’s financial statements.
Balance Sheet Offsetting — The fund's accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International
Swaps and Derivatives Association (ISDA) Master Agreement, or similar agreement, does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and
Liabilities across
24
Notes to Financial
Statements (unaudited) - continued
transactions between the fund and the applicable
counterparty. The fund's right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is subject.
Balance sheet offsetting disclosures, to the extent applicable to the fund, have been included in the fund’s Significant Accounting Policies note under the captions for each of the fund’s in-scope
financial instruments and transactions.
Investment Valuations — Subject to its oversight, the fund's Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments to MFS as
the fund's adviser, pursuant to the fund’s valuation policy and procedures which have been adopted by the adviser and approved by the Board. In accordance with Rule 2a-5 under the Investment Company Act of
1940, the Board of Trustees designated the adviser as the “valuation designee” of the fund. If the adviser, as valuation designee, determines that reliable market quotations are not readily available for
an investment, the investment is valued at fair value as determined in good faith by the adviser in accordance with the adviser’s fair valuation policy and procedures.
Under the fund's valuation policy
and procedures, equity securities, including restricted equity securities, are generally valued at the last sale or official closing price on their primary market or exchange as provided by a third-party pricing
service. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation on their primary market or exchange as provided by a third-party pricing
service. Debt instruments and floating rate loans, including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with
a maturity at issuance of 60 days or less may be valued at amortized cost, which approximates market value.
Exchange-traded options are generally valued at the
last sale or official closing price on their primary exchange as provided by a third-party pricing service. Exchange-traded options for which there were no sales reported that day are generally valued at the last
daily bid quotation on their primary exchange as provided by a third-party pricing service. For put options, the position may be valued at the last daily ask quotation if there are no trades reported during the day.
Options not traded on an exchange are generally valued at a broker/dealer bid quotation. Foreign currency options are generally valued at valuations provided by a third-party pricing service. Forward foreign currency
exchange contracts are generally valued at the mean of bid and asked prices for the time period interpolated from rates provided by a third-party pricing service for proximate time periods. Open-end investment
companies are generally valued at net asset value per share. Funds traded on a recognized securities exchange (such as Exchange Traded Funds or Closed End Funds) are generally valued at the official closing price on
their primary market or exchange as provided by a third-party pricing service. If no sales are reported that day for these funds, generally they will be valued at the last quoted daily bid quotation on their primary
market or exchange as provided by a third-party pricing service. The values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid
and asked prices for rates provided by a third-party pricing service.
Under the fund’s valuation
policy and procedures, market quotations are not considered to be readily available for debt instruments, floating rate loans, and many types of derivatives. These investments are generally valued at fair value based
on information from third-party pricing services or otherwise determined by the adviser in accordance with the adviser’s fair valuation policy and procedures. Securities and other
25
Notes to Financial
Statements (unaudited) - continued
assets generally valued on the basis of information
from a third-party pricing service may also be valued at a broker/dealer bid quotation. In determining values, third-party pricing services can utilize both transaction data and market information such as yield,
quality, coupon rate, maturity, type of issue, trading characteristics, spreads and other market data. Pricing services generally value debt instruments assuming orderly transactions of institutional round lot sizes,
but a fund may hold or transact in such securities in smaller, odd lot sizes. In instances where a fund holds an odd lot size position in a debt instrument, such position will typically be valued using the pricing
agent’s institutional round lot price for the debt instrument. Odd lots may trade at lower prices than institutional round lots, and the fund may receive different prices when it sells odd lot positions than it
would receive for sales of institutional round lot positions. An investment may also be valued at fair value if the adviser determines that the investment’s value has been materially affected by events occurring
after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halt of
trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. The adviser generally relies on third-party pricing services or
other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition
of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s
net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted
or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund
determines its net asset value per share.
Various inputs are used in
determining the value of the fund's assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value
hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund's assessment of the significance of a
particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or
liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes significant
unobservable inputs, which may include the adviser's own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments, such as forward foreign currency exchange
contracts. The following is a summary of the levels used as of May 31, 2025 in valuing the fund's assets and liabilities:
26
Notes to Financial
Statements (unaudited) - continued
| Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
| Equity Securities: | ||||
| Luxembourg | $— | $63,423 | $— | $63,423 |
| United States | — | — | 54,654 | 54,654 |
| United Kingdom | — | 1,532 | — | 1,532 |
| U.S. Corporate Bonds | — | 38,289,594 | — | 38,289,594 |
| Foreign Bonds | — | 6,920,605 | — | 6,920,605 |
| Investment Companies | 1,728,406 | — | — | 1,728,406 |
| Total | $1,728,406 | $45,275,154 | $54,654 | $47,058,214 |
| Other Financial Instruments | ||||
| Forward Foreign Currency Exchange Contracts – Liabilities | $— | $(2,992) | $— | $(2,992) |
For further information regarding
security characteristics, see the Portfolio of Investments.
The following is a reconciliation of
level 3 assets for which significant unobservable inputs were used to determine fair value. The table presents the activity of level 3 securities held at the beginning and the end of the period.
| Equity Securities | |
| Balance as of 11/30/24 | $45,514 |
| Change in unrealized appreciation or depreciation | 9,140 |
| Balance as of 5/31/25 | $54,654 |
At May 31, 2025, the fund held one
level 3 security.
Foreign Currency Translation — Purchases and sales of foreign investments, income, and expenses are converted into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such
transactions or on the reporting date for foreign denominated receivables and payables. Gains and losses attributable to foreign currency exchange rates on sales of securities are recorded for financial statement
purposes as net realized gains and losses on investments. Gains and losses attributable to foreign exchange rate movements on receivables, payables, income and expenses are recorded for financial statement purposes as
foreign currency transaction gains and losses. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately
disclosed.
Derivatives — The fund uses derivatives primarily to increase or decrease exposure to a particular market or segment of the market, or security, to increase or decrease interest rate exposure,
or as alternatives to direct investments. Derivatives are used for hedging or non-hedging purposes. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. When the fund uses derivatives
as an investment to increase market exposure, or for hedging purposes, gains and losses from derivative instruments may be substantially greater than the derivative’s original cost.
The derivative instruments used by
the fund during the period were purchased options and forward foreign currency exchange contracts. Depending on the type of derivative, a fund may exit a derivative position by entering into an offsetting transaction
with a counterparty or exchange, negotiating an agreement with the derivative
27
Notes to Financial
Statements (unaudited) - continued
counterparty, or novating the position to a third
party. The fund's period end derivatives, as presented in the Portfolio of Investments and the associated Derivative Contract tables, generally are indicative of the volume of its derivative activity during the
period.
The following table presents, by
major type of derivative contract, the fair value, on a gross basis, of the asset and liability components of derivatives held by the fund at May 31, 2025 as reported in the Statement of Assets and Liabilities:
| Fair Value | ||
| Risk | Derivative Contracts | Liability Derivatives |
| Foreign Exchange | Forward Foreign Currency Exchange Contracts | $(2,992) |
The following table presents, by
major type of derivative contract, the realized gain (loss) on derivatives held by the fund for the six months ended May 31, 2025 as reported in the Statement of Operations:
| Risk | Forward Foreign Currency Exchange Contracts | Unaffiliated Issuers (Purchased Options) |
| Foreign Exchange | $(15,342) | $— |
| Equity | — | (35,795) |
| Total | $(15,342) | $(35,795) |
The following table presents, by
major type of derivative contract, the change in unrealized appreciation or depreciation on derivatives held by the fund for the six months ended May 31, 2025 as reported in the Statement of Operations:
| Risk | Forward Foreign Currency Exchange Contracts | Unaffiliated Issuers (Purchased Options) |
| Foreign Exchange | $(32,056) | $— |
| Equity | — | 35,745 |
| Total | $(32,056) | $35,745 |
Derivative counterparty credit risk
is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain, but not all, uncleared derivatives, the fund attempts to reduce its exposure to counterparty credit risk
whenever possible by entering into an ISDA Master Agreement on a bilateral basis. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if
there is a specified deterioration in the credit quality of the other party. Upon an event of default or a termination of the ISDA Master Agreement, the non-defaulting party has the right to close out all transactions
traded under such agreement and to net amounts owed under each agreement to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA
Master Agreement could result in a reduction of the fund's credit risk to such counterparty equal to any amounts payable by the fund under the applicable transactions, if any.
28
Notes to Financial
Statements (unaudited) - continued
Collateral and margin requirements
differ by type of derivative. For cleared derivatives (e.g., futures contracts, cleared swaps, and exchange-traded options), margin requirements are set by the clearing broker and the clearing house and collateral, in
the form of cash or securities, is posted by the fund directly with the clearing broker. Collateral terms are counterparty agreement specific for uncleared derivatives (e.g., forward foreign currency exchange
contracts, uncleared swap agreements, and uncleared options). Collateral, in the form of cash and securities, is held in segregated accounts with the fund's custodian in connection with these agreements. For
derivatives traded under an ISDA Master Agreement, which contains a credit support annex, the collateral requirements are netted across all transactions traded under such counterparty-specific agreement and an
amount is posted from one party to the other to collateralize such obligations. Cash that has been segregated or delivered to cover the fund's collateral or margin obligations under derivative contracts, if any,
will be reported separately in the Statement of Assets and Liabilities as restricted cash for uncleared derivatives and/or deposits with brokers for cleared derivatives. Securities pledged as collateral or margin for
the same purpose, if any, are noted in the Portfolio of Investments. The fund may be required to make payments of interest on uncovered collateral or margin obligations with the broker. Any such payments are included
in “Interest expense and fees” in the Statement of Operations.
Purchased Options — The fund purchased put options for a premium. Purchased put options entitle the holder to sell a specified number of shares or units of a particular security, currency or index at
a specified price at a specified date or within a specified period of time. Purchasing put options may hedge against an anticipated decline in the value of portfolio securities or currency or decrease the fund's
exposure to an underlying instrument.
The premium paid is initially
recorded as an investment in the Statement of Assets and Liabilities. That investment is subsequently marked-to-market daily with the difference between the premium paid and the market value of the purchased option
being recorded as unrealized appreciation or depreciation. Premiums paid for purchased put options which have expired are treated as realized losses on investments in the Statement of Operations. Upon the exercise or
closing of a purchased put option, the premium paid is offset against the proceeds on the sale of the underlying security or financial instrument in order to determine the realized gain or loss on investments.
Whether or not the option is
exercised, the fund's maximum risk of loss from purchasing an option is the amount of premium paid. All option contracts involve credit risk if the counterparty to the option contract fails to perform. For
uncleared options, this risk is mitigated in cases where there is an ISDA Master Agreement between the fund and the counterparty providing for netting as described above and, where applicable, by the posting of
collateral by the counterparty to the fund to cover the fund’s exposure to the counterparty under such ISDA Master Agreement.
Forward Foreign Currency Exchange
Contracts — The fund entered into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. These contracts may be
used to hedge the fund’s currency risk or for non-hedging purposes. For hedging purposes, the fund may enter into contracts to deliver or receive foreign currency that the fund will receive from or use in its
normal investment activities. The fund may also use contracts to hedge against declines in the value of foreign currency denominated securities due to
29
Notes to Financial
Statements (unaudited) - continued
unfavorable exchange rate movements. For
non-hedging purposes, the fund may enter into contracts with the intent of changing the relative exposure of the fund’s portfolio of securities to different currencies to take advantage of anticipated exchange
rate changes.
Forward foreign currency exchange
contracts are adjusted by the daily exchange rate of the underlying currency and any unrealized gains or losses are recorded as a receivable or payable for forward foreign currency exchange contracts until the
contract settlement date. On contract settlement date, any gain or loss on the contract is recorded as realized gains or losses on forward foreign currency exchange contracts.
Risks may arise upon entering into
these contracts from unanticipated movements in the value of the contract and from the potential inability of counterparties to meet the terms of their contracts. Generally, the fund’s maximum risk due to
counterparty credit risk is the unrealized gain on the contract due to the use of Continuous Linked Settlement, a multicurrency cash settlement system for the centralized settlement of foreign transactions. This risk
is mitigated in cases where there is an ISDA Master Agreement between the fund and the counterparty providing for netting as described above and, where applicable, by the posting of collateral by the counterparty to
the fund to cover the fund’s exposure to the counterparty under such ISDA Master Agreement.
Statement of Cash Flows — Information on financial transactions which have been settled through the receipt or disbursement of cash or restricted cash is presented in the Statement of Cash Flows. Cash as
presented in the fund's Statement of Assets and Liabilities includes cash on hand at the fund's custodian bank and does not include any short-term investments. Restricted cash is presented in the fund's Statement of
Assets and Liabilities as restricted cash for uncleared derivatives and/or deposits with brokers for cleared derivatives and represents cash that has been segregated or delivered to cover the fund's collateral or
margin obligations under derivative contracts.
Indemnifications — Under the fund's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to
the fund. Additionally, in the normal course of business, the fund enters into agreements with service providers that may contain indemnification clauses. The fund's maximum exposure under these agreements is unknown
as this would involve future claims that may be made against the fund that have not yet occurred.
Investment Transactions and
Income — Interest income is recorded on the accrual basis. All premium and discount is amortized or accreted for financial statement purposes in accordance with U.S. generally accepted accounting principles. Dividends received in cash are recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded when the fund is informed of the dividend if such information is
obtained subsequent to the ex-dividend date. Dividend and interest payments received in additional securities are recorded on the ex-dividend or ex-interest date in an amount equal to the value of the security on such
date.
30
Notes to Financial
Statements (unaudited) - continued
The fund may receive proceeds from
litigation settlements. Any proceeds received from litigation involving portfolio holdings are reflected in the Statement of Operations in realized gain/loss if the security has been disposed of by the fund or in
unrealized gain/loss if the security is still held by the fund. Any other proceeds from litigation not related to portfolio holdings are reflected as other income in the Statement of Operations.
Investment transactions are recorded
on the trade date. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis.
The fund may purchase or sell
securities on a when-issued or delayed delivery basis. In these extended settlement transactions, the receipt or delivery of the securities by the fund and related payments occur at a future date, usually beyond the
customary settlement period. The price of such security and the date that the security will be settled are generally fixed at the time the transaction is negotiated. The value of the security varies with market
fluctuations and for debt securities no interest accrues to the fund until settlement takes place. When the fund sells securities on a when-issued or delayed delivery basis, the fund typically owns or has the right to
acquire securities equivalent in kind and amount to the securities sold. Purchase and sale commitments for when-issued or delayed delivery securities are held at carrying amount, which approximates fair value and are
categorized as level 2 within the fair value hierarchy, and included in When-issued investments purchased and When-issued investments sold in the Statement of Assets and Liabilities, as applicable. Losses may arise
due to changes in the value of the underlying securities prior to settlement date or if the counterparty does not perform under the contract’s terms, or if the issuer does not issue the securities.
Tax Matters and Distributions — The fund intends to qualify as a regulated investment company, as defined under Subchapter M of the Internal Revenue Code, and to distribute all of its taxable income, including
realized capital gains. As a result, no provision for federal income tax is required. The fund’s federal tax returns, when filed, will remain subject to examination by the Internal Revenue Service for
generally a three year period. Management has analyzed the fund’s tax positions taken on federal and state tax returns for all open tax years and does not believe that there are any uncertain tax positions
that require recognition of a tax liability. Foreign taxes, if any, have been accrued by the fund in the accompanying financial statements in accordance with the applicable foreign tax law. Foreign income taxes may be
withheld by certain countries in which the fund invests. Additionally, capital gains realized by the fund on securities issued in or by certain foreign countries may be subject to capital gains tax imposed by those
countries.
Distributions to shareholders are
recorded on the ex-dividend date. The fund employs a managed distribution policy whereby the fund seeks to pay monthly distributions based on an annual rate of 9.50% of the fund’s average monthly net asset
value. As a result, distributions may exceed actual earnings which may result in a tax return of capital. Distributions in any year may include a substantial return of capital component. For the six months ended May
31, 2025, the amount of distributions estimated to be a tax return of capital was approximately $600,975 which is reported as distributions from other sources in the Statements of Changes in Net Assets. All or a
portion of this amount may be redesignated as ordinary income and/or capital gains at fiscal year end. Please refer to the Financial Highlights for distributions of tax returns of capital made during the prior five
years. Income and capital gain distributions are determined in
31
Notes to Financial
Statements (unaudited) - continued
accordance with income tax regulations, which may
differ from U.S. generally accepted accounting principles. Certain capital accounts in the financial statements are periodically adjusted for permanent differences in order to reflect their tax character. These
adjustments have no impact on net assets or net asset value per share. Temporary differences which arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and
tax purposes will reverse at some time in the future.
Book/tax differences primarily
relate to amortization of premium and accretion of discount of debt securities.
The tax character of distributions
made during the current period will be determined at fiscal year end. The tax character of distributions declared to shareholders for the last fiscal year is as follows:
| Year ended 11/30/24 | |
| Ordinary income (including any short-term capital gains) | $1,870,641 |
| Tax return of capital (b) | 1,327,359 |
| Total distributions | $3,198,000 |
| (b) | Distributions in excess of tax basis earnings and profits are reported in the financial statements as a tax return of capital. |
The federal tax cost and the tax
basis components of distributable earnings were as follows:
| As of 5/31/25 | |
| Cost of investments | $47,116,424 |
| Gross appreciation | 953,963 |
| Gross depreciation | (1,012,173) |
| Net unrealized appreciation (depreciation) | $(58,210) |
| As of 11/30/24 | |
| Capital loss carryforwards | (9,916,433) |
| Other temporary differences | (16,662) |
| Net unrealized appreciation (depreciation) | 65,652 |
The aggregate cost above includes
prior fiscal year end tax adjustments, if applicable.
As of November 30, 2024, the fund
had capital loss carryforwards available to offset future realized gains. These net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses. Such losses
are characterized as follows:
| Short-Term | $(499,487) |
| Long-Term | (9,416,946) |
| Total | $(9,916,433) |
(3) Transactions with
Affiliates
Investment Adviser — The fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to the fund. The management fee is computed daily and paid monthly at an
32
Notes to Financial
Statements (unaudited) - continued
annual rate of 0.65% of the fund’s average
daily net assets. The fund pays the adviser a monthly fee equal to 20% of the fund’s leverage income after deducting the expenses of leveraging (“net leverage income”); provided, however, if the
fund’s net leverage income is less than zero, MFS will reduce its management fee by an amount equivalent to the percentage indicated of the fund’s net leverage income. The management fee incurred for the
six months ended May 31, 2025 was equivalent to an annual effective rate of 0.74% of the fund's average daily net assets.
The investment adviser has agreed in
writing to pay a portion of the fund’s total annual operating expenses, excluding interest, taxes, extraordinary expenses, brokerage and transaction costs, certain tax reclaim recovery expenses (including
contingency fees and closing agreement expenses), and investment-related expenses, such that total fund operating expenses do not exceed 1.34% annually of the fund’s average daily net assets. This written
agreement will continue until modified by the fund’s Board of Trustees, but such agreement will continue at least until November 30, 2026. For the six months ended May 31, 2025, this reduction amounted to
$38,975, which is included in the reduction of total expenses in the Statement of Operations.
Transfer Agent — The fund engages Computershare Trust Company, N.A. (“Computershare”) as the sole transfer agent for the fund. MFS Service Center, Inc. (MFSC) monitors and supervises
the activities of Computershare for an agreed upon fee approved by the Board of Trustees. For the six months ended May 31, 2025, fees paid to MFSC amounted to $1,545.
Administrator — MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to the fund. Under an administrative services agreement, the fund
reimburses MFS the costs incurred to provide these services. The fund is charged an annual fixed amount of $17,500 plus a fee based on average daily net assets. The administrative services fee is computed daily and
paid monthly. The administrative services fee incurred for the six months ended May 31, 2025 was equivalent to an annual effective rate of 0.0532% of the fund's average daily net assets.
Trustees’ and Officers’
Compensation — The fund pays compensation to independent Trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee
chairpersons. Independent Trustees’ compensation is accrued daily and paid subsequent to each Trustee Board meeting. The fund does not pay compensation directly to Trustees or officers of the fund who
are also officers of the investment adviser, all of whom receive remuneration from MFS for their services to the fund. Certain officers and Trustees of the fund are officers or directors of MFS and
MFSC.
Other — The fund invests in the MFS Institutional Money Market Portfolio which is managed by MFS and seeks current income consistent with preservation of capital and liquidity. This money
market fund does not pay a management fee to MFS but does incur investment and operating costs.
(4) Portfolio Securities
For the six months ended May 31,
2025, purchases and sales of investments, other than short-term obligations, aggregated $10,149,268 and $12,127,066, respectively.
33
Notes to Financial
Statements (unaudited) - continued
(5) Shares of Beneficial
Interest
The fund's Declaration of Trust
permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest. The Trustees have authorized the repurchase by the fund of up to 10% annually of its own shares of beneficial
interest.
The fund repurchased 102,100 shares of beneficial
interest during the six months ended May 31, 2025 at an average price per share of $1.60 and a weighted average discount of 8.28% per share. The fund repurchased 506,945 shares of beneficial interest during the year
ended November 30, 2024 at an average price per share of $1.71 and a weighted average discount of 7.85% per share. Transactions in fund shares were as follows:
| Six months ended 5/31/25 | Year ended 11/30/24 | ||||
| Shares | Amount | Shares | Amount | ||
| Capital shares repurchased | (102,100) | $(163,570) | (506,945) | $(865,747) | |
(6) Loan Agreement
The fund has a credit agreement with
a bank for a revolving secured line of credit that can be drawn upon up to $17,000,000. At May 31, 2025, the fund had outstanding borrowings under this agreement in the amount of $15,000,000, which are secured by a
lien on the fund’s assets. The loan’s carrying value in the fund’s Statement of Assets and Liabilities approximates its fair value. The loan value as of the reporting date is considered level 2 under
the fair value hierarchy. The credit agreement has no explicit maturity date but may be terminated with appropriate notice by either party. Borrowings under the agreement can be made for liquidity or leverage
purposes. Interest is charged at a rate per annum equal to the one-month term SOFR (Secured Overnight Financing Rate) plus 0.10% plus an agreed upon spread, or at the option of the borrower, an alternate base
rate plus an agreed upon spread. The fund incurred interest expense of $406,900 during the period, which is included in “Interest expense and fees” in the Statement of Operations. The fund may also be
charged a commitment fee based on the average daily unused portion of the line of credit. The fund paid a commitment fee of $1,263 during the period, which is included in “Interest expense and fees” in the
Statement of Operations. For the six months ended May 31, 2025, the average loan balance was $15,000,000 at a weighted average annual interest rate of 5.44%. The fund is subject to certain covenants including, but not
limited to, requirements with respect to asset coverage, portfolio diversification and liquidity.
34
Notes to Financial
Statements (unaudited) - continued
(7) Investments in Affiliated
Issuers
An affiliated issuer may be
considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the following were affiliated issuers for the
six months ended May 31, 2025:
| Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
| MFS Institutional Money Market Portfolio | $599,137 | $6,254,768 | $5,125,364 | $(97) | $(38) | $1,728,406 |
| Affiliated Issuers | Dividend Income | Capital Gain Distributions |
| MFS Institutional Money Market Portfolio | $22,392 | $— |
35
Report of Independent Registered Public
Accounting Firm
To the Shareholders and the Board
of Trustees of MFS Intermediate High Income Fund
Results of Review of Interim Financial
Statements
We have reviewed the accompanying
statement of assets and liabilities of MFS Intermediate High Income Fund (the “Fund”), including the portfolio of investments, as of May 31, 2025, and the related statements of operations, changes in net
assets, cash flows and financial highlights for the six-month period then ended and the related notes (collectively referred to as the “interim financial statements”). Based on our review, we are not aware
of any material modifications that should be made to the interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.
We have previously audited, in
accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the statement of changes in net assets for the year ended November 30, 2024 and the financial
highlights for each of the five years in the period then ended; and in our report dated January 14, 2025, we expressed an unqualified opinion on those financial statements.
Basis for Review Results
These financial statements are the
responsibility of the Fund's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and
the applicable rules and regulations of the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying
analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the
objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
/s/ Ernst & Young LLP
Boston, Massachusetts
July 16, 2025
July 16, 2025
36
Proxy Voting Policies and
Information
MFS votes proxies on behalf of the
fund pursuant to proxy voting policies and procedures that are available without charge, upon request, by calling 1-800-225-2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s Web site at http://www.sec.gov.
Information regarding how the fund
voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available by August 31 of each year without charge by visiting mfs.com/proxyvoting, or by visiting the SEC’s Web site at http://www.sec.gov.
Quarterly Portfolio
Disclosure
The fund files a complete schedule
of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s Web site
at http://www.sec.gov. A shareholder can obtain the portfolio holdings report for the first and third quarters of the fund's fiscal year at mfs.com/closedendfunds by choosing the fund's name and then scrolling to the “Resources” section and clicking on the “Reports and Other Documents” tab.
Further Information
From time to time, MFS may post
important information about the fund or the MFS Funds on the MFS Web site (mfs.com). This information is available at https://www.mfs.com/announcements or at mfs.com/closedendfunds by choosing the fund's name and then scrolling to the “Resources” section and clicking on the “Announcements” tab, if any.
Additional information about the
fund (e.g., performance, dividends and the fund’s price history) is also available at mfs.com/closedendfunds by choosing the fund's name, if any.
INFORMATION ABOUT FUND
CONTRACTS AND LEGAL CLAIMS
The fund has entered into
contractual arrangements with an investment adviser, administrator, transfer agent, and custodian who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended
beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them
against the service providers, either directly or on behalf of the fund.
Under the Trust’s By-Laws, any
claims asserted against or on behalf of the MFS Funds, including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.
37
CONTACT US
COMPUTERSHARE TRUST COMPANY,
N.A.
TRANSFER AGENT, REGISTRAR, AND
DIVIDEND DISBURSING AGENT
TRANSFER AGENT, REGISTRAR, AND
DIVIDEND DISBURSING AGENT
CALL
1-800-637-2304
9 a.m. to 5 p.m. Eastern time
WRITE
Computershare Trust Company, N.A.
P.O. Box 43078
Providence, RI 02940-3078
New York Stock Exchange Symbol:
CIF
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.
During the period covered by this report, the Registrant has not amended any provision in its Code of Ethics (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.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable for semi-annual reports.
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 BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.
Not applicable.
ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable for semi-annual reports.
ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
There were no changes during the period.
ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
MFS Intermediate High Income Fund
|
|
|
|
|
(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 |
Part of Publicly |
Shares that May |
|
|
|
|
Paid per |
Announced |
Yet Be Purchased |
|
|
|
|
Share |
Plans or |
under the Plans |
|
|
|
|
|
Programs |
or Programs |
|
|
|
|
|
|
|
|
|
12/01/24-12/31/24 |
0 |
N/A |
0 |
1,797,453 |
|
|
01/01/25-01/31/25 |
0 |
N/A |
0 |
1,797,453 |
|
|
02/01/25-02/28/25 |
0 |
N/A |
0 |
1,797,453 |
|
|
03/01/25-03/31/25 |
0 |
N/A |
0 |
1,797,453 |
|
|
04/01/25-04/30/25 |
102,100 |
1.60 |
102,100 |
1,695,353 |
|
|
05/01/25-05/31/25 |
0 |
N/A |
0 |
1,695,353 |
|
|
Total |
102,100 |
1.60 |
102,100 |
|
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 1,800,737.
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.
Not applicable for semi-annual reports.
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: Not applicable.
(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)Notices to Trust’s common shareholders in accordance with Investment Company Act Section 19(a) and Rule 19a-1. Attached hereto as Ex-99.19a-1.
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 HIGH INCOME FUND
By (Signature and Title)*
/S/ DAVID L. DILORENZO
David L. DiLorenzo, President
Date: July 16, 2025
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: July 16, 2025
By (Signature and Title)*
/S/ KASEY L. PHILLIPS
Kasey L. Phillips, Treasurer (Principal Financial Officer and Accounting Officer) Date: July 16, 2025
* Print name and title of each signing officer under his or her signature.