MFS Charter Income Trust

07/28/2025 | Press release | Distributed by Public on 07/28/2025 06:59

Semi-Annual Report by Investment Company (Form N-CSRS)

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 811-05822

MFS CHARTER INCOME TRUST

(Exact name of registrant as specified in charter)

111 Huntington Avenue, Boston, Massachusetts 02199 (Address of principal executive offices) (Zip code)

Christopher R. Bohane

Massachusetts Financial Services Company

111Huntington Avenue Boston, Massachusetts 02199

(Name and address of agents for service)

Registrant's telephone number, including area code: (617) 954-5000

Date of fiscal year end: November 30

Date of reporting period: May 31, 2025

ITEM 1. REPORTS TO STOCKHOLDERS.

Item 1(a):


Semiannual Report
May 31, 2025
MFS® Charter Income Trust
MCR-SEM
MANAGED DISTRIBUTION POLICY DISCLOSURE
The MFS Charter Income Trust's (the fund) Board of Trustees adopted a managed distribution policy. The fund seeks to pay monthly distributions based on an annual rate of 8.00% 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® Charter Income Trust
New York Stock Exchange Symbol: MCR
Portfolio composition
1
Portfolio managers' profiles
4
Other notes
4
Portfolio of investments
6
Statement of assets and liabilities
42
Statement of operations
44
Statements of changes in net assets
46
Statement of cash flows
47
Financial highlights
48
Notes to financial statements
50
Report of independent registered public accounting firm
65
Proxy voting policies and information
66
Quarterly portfolio disclosure
66
Further information
66
Information about fund contracts and legal claims
66
Contact information
back cover
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Table of Contents
Table of Contents
Portfolio Composition
Portfolio structure at value (v)
Portfolio structure reflecting equivalent exposure of derivative positions (i)
Fixed income sectors (i)
High Yield Corporates 68.1%
Emerging Markets Bonds 20.0%
Non-U.S. Government Bonds 8.1%
Investment Grade Corporates 7.2%
U.S. Treasury Securities 4.1%
Mortgage-Backed Securities 2.4%
Commercial Mortgage-Backed Securities 1.7%
Collateralized Loan Obligations 0.8%
Asset-Backed Securities 0.6%
Residential Mortgage-Backed Securities 0.4%
Municipal Bonds 0.3%
Portfolio facts
Average Duration (d) 5.9
Average Effective Maturity (m) 6.9 yrs.
Composition including fixed income credit quality (a)(i)
AAA 5.9%
AA 3.3%
A 7.4%
BBB 10.4%
BB 39.1%
B 29.9%
CCC 9.5%
CC 0.4%
C 0.0%
U.S. Government 21.6%
Federal Agencies 2.4%
Not Rated (16.2)%
Non-Fixed Income 0.2%
Cash & Cash Equivalents (Less Liabilities) (b) (31.9)%
Other (q) 18.0%
1
Table of Contents
Portfolio Composition - continued
(a) For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody's, Fitch, and Standard & Poor's rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities.
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.
(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.
(p) For purposes of the presentation of Portfolio structure at value, Other includes market value from currency derivatives and may be negative.
(q) For purposes of this presentation, Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions and may be negative.
(v) For purposes of this presentation, market value of fixed income and/or equity derivatives, if any, is included in Cash & Cash Equivalents (Less Liabilities).
Where the fund holds convertible bonds, they are treated as part of the equity portion of the portfolio.
2
Table of Contents
Portfolio Composition - continued
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund's cash position and other assets and liabilities.
Percentages are based on net assets as of May 31, 2025.
The portfolio is actively managed and current holdings may be different.
3
Table of Contents
Portfolio Managers' Profiles
Portfolio Manager Primary Role Since Title and Five Year History
Robert Spector Lead and Debt Instruments Portfolio Manager 2015 Investment Officer of MFS; employed in the investment management area of MFS since 2011.
Neeraj Arora Emerging Markets Debt Instruments Portfolio Manager 2023 Investment Officer of MFS; employed in the investment management area of MFS since 2011.
Ward Brown Emerging Markets Debt Instruments Portfolio Manager 2012 Investment Officer of MFS; employed in the investment management area of MFS since 2005.
Philipp Burgener Structured Securities Portfolio Manager 2019 Investment Officer of MFS; employed in the investment management area of MFS since 2003.
David Cole Below Investment Grade Debt Instruments Portfolio Manager 2006 Investment Officer of MFS; employed in the investment management area of MFS since 2004.
Pilar Gomez-Bravo Debt Instruments Portfolio Manager 2013 Co-Chief Investment Officer-Global Fixed Income of MFS; employed in the investment management area of MFS since 2013.
Andy Li Investment Grade Debt Instruments Portfolio Manager 2019 Investment Officer of MFS; employed in the investment management area of MFS since 2018.
John Mitchell Investment Grade Debt Instruments Portfolio Manager 2023 Investment Officer of MFS; employed in the investment management area of MFS since 2003.
Michael Skatrud Below Investment Grade Debt Instruments Portfolio Manager 2018 Investment Officer of MFS; employed in the investment management area of MFS since 2013.
Erik Weisman Sovereign Debt Instruments Portfolio Manager 2012 Investment Officer of MFS; employed in the investment management area of MFS since 2002.
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.
4
Table of Contents
Other Notes - continued
The fund's target annual distribution rate is calculated based on an annual rate of 8.00% 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.
5
Table of Contents
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 - 130.2%
Aerospace & Defense - 3.0%
Axon Enterprise, Inc., 6.125%, 3/15/2030 (n) $ 711,000 $725,149
Boeing Co., 6.388%, 5/01/2031  26,000 27,741
Boeing Co., 5.805%, 5/01/2050  699,000 654,565
Bombardier, Inc., 7.5%, 2/01/2029 (n) 430,000 445,077
Bombardier, Inc., 8.75%, 11/15/2030 (n) 287,000 308,039
Bombardier, Inc., 7.25%, 7/01/2031 (n) 311,000 320,719
Bombardier, Inc., 7%, 6/01/2032 (n) 229,000 234,202
Bombardier, Inc., 6.75%, 6/15/2033 (n) 294,000 298,119
F-Brasile S.p.A./F-Brasile U.S. LLC, 7.375%, 8/15/2026 (n) 525,000 523,031
Huntington Ingalls Industries, Inc., 5.749%, 1/15/2035  67,000 67,825
Moog, Inc., 4.25%, 12/15/2027 (n) 544,000 526,934
TransDigm, Inc., 5.5%, 11/15/2027  861,000 860,327
TransDigm, Inc., 4.625%, 1/15/2029  566,000 548,157
TransDigm, Inc., 6.375%, 3/01/2029 (n) 650,000 660,593
TransDigm, Inc., 6.875%, 12/15/2030 (n) 1,124,000 1,159,201
TransDigm, Inc., 6.375%, 5/31/2033 (n) 1,048,000 1,035,425
$8,395,104
Asset-Backed & Securitized - 3.5%
3650R Commercial Mortgage Trust, 2021-PF1, "XA", 1%, 11/15/2054 (i) $ 3,713,288 $145,969
ACREC 2021-FL1 Ltd., "C", FLR, 6.593% ((SOFR - 1mo. + 0.11448%) + 2.15%), 10/16/2036 (n) 229,500 228,542
Angel Oak Mortgage Trust, 2024-12, "A1", 5.653%, 10/25/2069 (n) 196,964 196,976
Angel Oak Mortgage Trust, 2024-9, "A1", 5.138%, 9/25/2069 (n) 221,655 219,959
Angel Oak Mortgage Trust, 2025-1, "A2", 5.844%, 1/25/2070 (n) 93,504 93,684
Arbor Realty Trust, Inc., CLO, 2022-FL1, "D", FLR, 7.332% (SOFR - 30 day + 3%), 1/15/2037 (n) 208,000 207,793
AREIT 2022-CRE6 Trust, "C", FLR, 6.478% (SOFR - 30 day + 2.15%), 1/20/2037 (n) 100,000 99,104
AREIT 2022-CRE6 Trust, "D", FLR, 7.178% (SOFR - 30 day + 2.85%), 1/20/2037 (n) 100,000 99,559
ARI Fleet Lease Trust, 2023-B, "A2", 6.05%, 7/15/2032 (n) 56,999 57,427
Bayview Financial Revolving Mortgage Loan Trust, FLR, 6.042% ((SOFR - 1mo. + 0.11448%) + 1.6%), 12/28/2040 (n) 62,359 123,505
BBCMS Mortgage Trust, 2020-C7, "XA", 1.592%, 4/15/2053 (i) 1,910,334 93,943
BBCMS Mortgage Trust, 2021-C10, "XA", 1.207%, 7/15/2054 (i) 917,727 49,230
6
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Asset-Backed & Securitized - continued
BBCMS Mortgage Trust, 2021-C9, "XA", 1.578%, 2/15/2054 (i) $ 2,219,959 $151,697
Benchmark 2020-B18 Mortgage Trust, "XA", 1.796%, 7/15/2053 (i) 3,096,723 155,268
Benchmark 2021-B23 Mortgage Trust, "XA", 1.255%, 2/15/2054 (i) 3,576,018 181,284
Benchmark 2021-B24 Mortgage Trust, "XA", 1.135%, 3/15/2054 (i) 1,979,950 85,036
Benchmark 2021-B26 Mortgage Trust, "XA", 0.881%, 6/15/2054 (i) 5,513,042 193,731
Benchmark 2021-B27 Mortgage Trust, "XA", 1.234%, 7/15/2054 (i) 6,759,644 359,591
Benchmark 2021-B28 Mortgage Trust, "XA", 1.256%, 8/15/2054 (i) 2,300,786 124,707
Benchmark 2022-B36 Mortgage Trust, "XA", 0.638%, 7/15/2055 (i) 8,922,891 369,795
BMP Commercial Mortgage Trust, 2024-MF23, "C", FLR, 6.17% (SOFR - 1mo. + 1.8413%), 6/15/2041 (n) 100,000 100,063
BMP Commercial Mortgage Trust, 2024-MF23, "D", FLR, 6.719% (SOFR - 1mo. + 2.3905%), 6/15/2041 (n) 100,000 100,063
BSPRT 2021-FL7 Issuer Ltd., "B", FLR, 6.493% ((SOFR - 1mo. + 0.11448%) + 2.05%), 12/15/2038 (n) 100,000 99,369
BSPRT 2021-FL7 Issuer Ltd., "C", FLR, 6.743% ((SOFR - 1mo. + 0.11448%) + 2.3%), 12/15/2038 (n) 100,000 99,024
Business Jet Securities LLC, 2024-1A, "A", 6.197%, 5/15/2039 (n) 82,269 83,579
Business Jet Securities LLC, 2024-1A, "B", 6.924%, 5/15/2039 (n) 82,269 83,990
Business Jet Securities LLC, 2024-2A, "A", 5.364%, 9/15/2039 (n) 184,878 184,373
BX Trust, 2024-PURE, "A", FLR, 4.652% (CORRA + 1.9%), 11/15/2041 (n) CAD 154,000 112,777
CF Hippolyta Issuer LLC, 2020-1, "A1", 1.69%, 7/15/2060 (n) $ 89,945 89,278
CF Hippolyta Issuer LLC, 2020-1, "B1", 2.28%, 7/15/2060 (n) 89,945 89,106
Chesapeake Funding II LLC, 2023-1A, "A1", 5.65%, 5/15/2035 (n) 58,101 58,355
Colt Funding LLC, 2024-1, "A1", 5.835%, 2/25/2069 (n) 102,218 102,386
Commercial Mortgage Pass-Through Certificates, 2021-BN32, "XA", 0.763%, 4/15/2054 (i) 1,564,515 49,562
Commercial Mortgage Pass-Through Certificates, 2021-BN34, "XA", 0.97%, 6/15/2063 (i) 987,905 40,405
Commercial Mortgage Pass-Through Certificates, 2021-BN35, "XA", 1.03%, 6/15/2064 (i) 1,286,673 57,966
7
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Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Asset-Backed & Securitized - continued
Commercial Mortgage Pass-Through Certificates, 2022-BNK41, "AS", 3.789%, 4/15/2065  $ 257,000 $232,306
Crest Ltd., CDO, 7% (0.001% Cash or 7% PIK), 1/28/2040 (a)(p) 4,586,320 46
ELM Trust, 2024-ELM, "B10", 5.995%, 6/10/2039 (n) 100,000 100,729
ELM Trust, 2024-ELM, "C10", 6.189%, 6/10/2039 (n) 100,000 100,314
ELM Trust, 2024-ELM, "D10", 6.847%, 6/10/2039 (n) 100,000 100,272
Empire District Bondco LLC, 4.943%, 1/01/2033  150,429 150,927
Enterprise Fleet Financing 2024-3 LLC, "A2", 5.31%, 4/20/2027 (n) 47,592 47,744
Enterprise Fleet Financing 2025-1 LLC, "A2", 4.65%, 10/20/2027 (n) 50,000 50,034
EQT Trust, 2024-EXTR, "B", 5.655%, 7/05/2041 (n) 100,000 100,871
EQT Trust, 2024-EXTR, "C", 6.046%, 7/05/2041 (n) 100,000 101,045
Fortress CBO Investments Ltd., 2022-FL3, "AS", FLR, 6.573% (SOFR - 30 day + 2.25%), 2/23/2039 (n) 114,000 113,028
GreatAmerica Leasing Receivables Funding LLC, 2023-1, "A2", 5.35%, 2/16/2026 (n) 9,557 9,563
LoanCore 2021-CRE5 Ltd., "B", FLR, 6.443% ((SOFR - 1mo. + 0.11448%) + 2.0%), 7/15/2036 (n) 100,000 99,546
M&T Bank Auto Receivables Trust, 2025-1, "A-2A", 4.63%, 5/15/2028 (n) 188,000 187,878
MF1 2021-FL5 Ltd., "C", FLR, 6.143% ((SOFR - 1mo. + 0.11448%) + 1.7%), 7/15/2036 (n) 213,000 212,353
MF1 2021-FL5 Ltd., "D", FLR, 6.943% ((SOFR - 1mo. + 0.11448%) + 2.5%), 7/15/2036 (n) 755,000 752,401
MF1 2022-FL8 Ltd., "C", FLR, 6.524% (SOFR - 30 day + 2.2%), 2/19/2037 (n) 110,841 109,189
MF1 2024-FL14 LLC, "B", FLR, 7.015% (SOFR - 1mo. + 2.689%), 3/19/2039 (n) 349,917 350,679
Morgan Stanley Capital I Trust, 2021-L5, "XA", 1.277%, 5/15/2054 (i) 1,022,121 51,139
Morgan Stanley Capital I Trust, 2021-L6, "XA", 1.172%, 6/15/2054 (i) 2,982,062 131,233
Navistar Financial Dealer Note Master Owner Trust, 2023-1, "A", 6.18%, 8/25/2028 (n) 244,000 244,779
Navistar Financial Dealer Note Master Owner Trust, 2023-1, "B", 6.48%, 8/25/2028 (n) 57,000 57,193
OBX Trust, 2024-NQM1, "A1", 5.928%, 11/25/2063 (n) 92,488 92,844
OBX Trust, 2024-NQM1, "A2", 6.253%, 11/25/2063 (n) 73,097 73,554
OBX Trust, 2024-NQM2, "A1", 5.878%, 12/25/2063 (n) 216,157 216,642
Shelter Growth CRE 2021-FL3 Ltd., "C", FLR, 6.593% ((SOFR - 1mo. + 0.11448%) + 2.15%), 9/15/2036 (n) 157,500 157,380
8
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Asset-Backed & Securitized - continued
Starwood Commercial Mortgage, 2021-FL2, "B", FLR, 6.243% ((SOFR - 1mo. + 0.11448%) + 1.8%), 4/18/2038 (n) $ 190,000 $188,937
Starwood Commercial Mortgage, 2021-FL2, "C", FLR, 6.543% ((SOFR - 1mo. + 0.11448)% + 2.1%), 4/18/2038 (n) 100,000 98,404
TCW Gem Ltd., 2020-1A, "BR3", FLR, 5.869% (SOFR - 3mo. + 1.6%), 4/20/2034 (n) 235,000 233,717
TPG Real Estate Finance, 2021-FL4, "AS", FLR, 5.843% ((SOFR - 1mo. + 0.11448%) + 1.4%), 3/15/2038 (n) 150,000 149,508
TPG Real Estate Finance, 2021-FL4, "B", FLR, 6.293% ((SOFR - 1mo. + 0.11448%) + 1.85%), 3/15/2038 (n) 310,000 308,684
Verus Securitization Trust, 2014-1, "A1", 5.712%, 1/25/2069 (n) 112,507 112,627
Volvo Financial Equipment LLC, 2024-1A, "A2", 4.56%, 5/17/2027 (n) 79,000 78,965
Wells Fargo Commercial Mortgage Trust, 2021-C60, "XA", 1.493%, 8/15/2054 (i) 1,925,224 127,194
$9,728,821
Automotive - 1.2%
Adient Global Holdings Ltd., 7.5%, 2/15/2033 (n) $ 291,000 $288,709
Allison Transmission, Inc., 3.75%, 1/30/2031 (n) 1,077,000 977,644
Dealer Tire LLC/DT Issuer LLC, 8%, 2/01/2028 (n) 490,000 478,858
Dornoch Debt Merger Sub, Inc., 6.625%, 10/15/2029 (n) 755,000 580,275
Ford Motor Co., 6.1%, 8/19/2032  29,000 28,326
Hyundai Capital America, 5.25%, 1/08/2027 (n) 19,000 19,092
Hyundai Capital America, 6.375%, 4/08/2030 (n) 53,000 55,646
Real Hero Merger Sub 2, Inc., 6.25%, 2/01/2029 (n) 488,000 379,056
Volkswagen International Finance N.V., 5.994%, 5/15/2174  EUR 100,000 114,138
Wabash National Corp., 4.5%, 10/15/2028 (n) $ 651,000 555,563
$3,477,307
Broadcasting - 1.3%
Banijay Group S.A.S., 8.125%, 5/01/2029 (n) $ 800,000 $830,181
Gray Media, Inc., 10.5%, 7/15/2029 (n) 231,000 245,673
Midas OpCo Holdings LLC, 5.625%, 8/15/2029 (n) 635,000 597,051
Prosus N.V., 3.061%, 7/13/2031 (n) 329,000 285,130
Sinclair Television Group, Inc., 8.125%, 2/15/2033 (n) 557,000 557,295
Univision Communications, Inc., 8%, 8/15/2028 (n) 347,000 347,222
Univision Communications, Inc., 8.5%, 7/31/2031 (n) 799,000 767,170
WMG Acquisition Corp., 3.875%, 7/15/2030 (n) 85,000 78,588
$3,708,310
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Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Brokerage & Asset Managers - 1.5%
AG TTMT Escrow Issuer LLC, 8.625%, 9/30/2027 (n) $ 732,000 $759,904
Aretec Escrow Issuer 2, Inc., 10%, 8/15/2030 (n) 575,000 626,559
Aretec Escrow Issuer, Inc., 7.5%, 4/01/2029 (n) 296,000 295,729
Charles Schwab Corp., 5.643% to 5/19/2028, FLR (SOFR - 1 day + 2.210%) to 5/19/2029  43,000 44,519
Charles Schwab Corp., 6.136% to 8/24/2033, FLR (SOFR - 1 day + 2.01%) to 8/24/2034  91,000 96,646
Hightower Holding LLC, 6.75%, 4/15/2029 (n) 445,000 438,825
Hightower Holding LLC, 9.125%, 1/31/2030 (n) 261,000 271,676
Jane Street Group/JSG Finance, Inc., 6.125%, 11/01/2032 (n) 1,384,000 1,386,290
LPL Holdings, Inc., 4%, 3/15/2029 (n) 102,000 98,114
Nomura Holdings, Inc., 3.459%, 5/28/2030  EUR 100,000 113,953
$4,132,215
Building - 3.7%
ABC Supply Co., Inc., 3.875%, 11/15/2029 (n) $ 501,000 $466,627
AmeriTex Holdco Intermediate LLC, 10.25%, 10/15/2028 (n) 715,000 758,639
BCPE Ulysses Intermediate, Inc., 7.75% (7.75% Cash or 8.5% PIK), 4/01/2027 (n)(p) 230,000 218,523
Cornerstone Building Brands, Inc., 6.125%, 1/15/2029 (n) 519,000 376,741
Cornerstone Building Brands, Inc., 9.5%, 8/15/2029 (n) 239,000 212,360
CRH Finance (U.K.) PLC, 4.125%, 12/02/2029  GBP 100,000 130,566
Ferguson Enterprises, Inc., 5%, 10/03/2034  $ 85,000 81,826
Foundation Building Materials LLC, 6%, 3/01/2029 (n) 886,000 754,662
GYP Holding III Corp., 4.625%, 5/01/2029 (n) 927,000 890,446
Holcim Finance US LLC, 4.95%, 4/07/2030 (n) 26,000 26,167
Holcim Finance US LLC, 5.4%, 4/07/2035 (n) 18,000 17,935
Knife River Corp., 7.75%, 5/01/2031 (n) 719,000 752,585
LBM Acquisition LLC, 6.25%, 1/15/2029 (n) 550,000 441,721
Miter Brands Acquisition Holdco, Inc., 6.75%, 4/01/2032 (n) 191,000 192,438
MIWD Holdco II LLC/MIWD Finance Co., 5.5%, 2/01/2030 (n) 710,000 654,577
New Enterprise Stone & Lime Co., Inc., 5.25%, 7/15/2028 (n) 429,000 421,001
New Enterprise Stone & Lime Co., Inc., 9.75%, 7/15/2028 (n) 223,000 224,340
Patrick Industries, Inc., 6.375%, 11/01/2032 (n) 873,000 860,475
Quikrete Holdings Inc., 6.375%, 3/01/2032 (n) 592,000 601,565
Standard Building Solutions, Inc., 6.5%, 8/15/2032 (n) 362,000 367,639
Standard Industries, Inc., 4.75%, 1/15/2028 (n) 306,000 300,474
Standard Industries, Inc., 4.375%, 7/15/2030 (n) 598,000 561,232
Vulcan Materials Co., 3.5%, 6/01/2030  38,000 36,073
Vulcan Materials Co., 5.7%, 12/01/2054  32,000 30,761
White Cap Buyer LLC, 6.875%, 10/15/2028 (n) 794,000 778,364
$10,157,737
10
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Business Services - 1.7%
Accenture Capital, Inc., 4.25%, 10/04/2031  $ 39,000 $38,294
Accenture Capital, Inc., 4.5%, 10/04/2034  26,000 24,980
athenahealth, Inc., 6.5%, 2/15/2030 (n) 652,000 628,217
CACI International, Inc., 6.375%, 6/15/2033 (n) 588,000 599,431
Experian Finance PLC, 3.51%, 12/15/2033  EUR 100,000 113,825
Fiserv Funding ULC, 3.5%, 6/15/2032  100,000 112,713
Fiserv, Inc., 4.4%, 7/01/2049  $ 84,000 65,936
Iron Mountain, Inc., 4.875%, 9/15/2027 (n) 373,000 368,580
Iron Mountain, Inc., 5.25%, 3/15/2028 (n) 677,000 669,575
Iron Mountain, Inc., 5.625%, 7/15/2032 (n) 694,000 677,153
Iron Mountain, Inc., 6.25%, 1/15/2033 (n) 406,000 409,813
Mastercard, Inc., 4.55%, 1/15/2035  58,000 56,258
Mastercard, Inc., 3.85%, 3/26/2050  22,000 16,884
Nexi S.p.A., 3.875%, 5/21/2031  EUR 100,000 115,438
Paychex, Inc., 5.1%, 4/15/2030  $ 24,000 24,311
Paychex, Inc., 5.35%, 4/15/2032  38,000 38,564
Shift4 Payments LLC/Shift4 Payments Finance Sub, Inc., 6.75%, 8/15/2032 (n) 681,000 694,822
Visa, Inc., 3.65%, 9/15/2047  46,000 35,044
$4,689,838
Cable TV - 3.7%
Cable One, Inc., 4%, 11/15/2030 (n) $ 774,000 $599,435
CCO Holdings LLC/CCO Holdings Capital Corp., 4.75%, 3/01/2030 (n) 2,009,000 1,917,769
CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 8/15/2030 (n) 1,323,000 1,240,512
CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 5/01/2032  382,000 347,675
CCO Holdings LLC/CCO Holdings Capital Corp., 4.25%, 1/15/2034 (n) 329,000 284,004
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 6.1%, 6/01/2029  63,000 65,583
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 4.8%, 3/01/2050  27,000 20,878
CSC Holdings LLC, 5.375%, 2/01/2028 (n) 800,000 729,614
CSC Holdings LLC, 5.75%, 1/15/2030 (n) 425,000 214,531
CSC Holdings LLC, 4.125%, 12/01/2030 (n) 250,000 171,564
DIRECTV Financing LLC, 8.875%, 2/01/2030 (n) 253,000 249,221
DIRECTV Holdings LLC / DIRECTV Financing Co., Inc., 10%, 2/15/2031 (n) 173,000 168,390
DISH DBS Corp., 7.75%, 7/01/2026  430,000 369,701
DISH DBS Corp., 5.125%, 6/01/2029  370,000 243,255
11
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Cable TV - continued
DISH Network Corp., 11.75%, 11/15/2027 (n) $ 372,000 $383,796
EchoStar Corp., 10.75%, 11/30/2029  599,224 602,160
Summer BidCo B.V., 10% (10% Cash or 10.75% PIK), 2/15/2029 (n)(p) EUR 137,228 158,214
Videotron Ltd., 3.625%, 6/15/2029 (n) $ 71,000 67,072
Virgin Media Finance PLC, 3.75%, 7/15/2030  EUR 100,000 107,300
Virgin Media Finance PLC, 5%, 7/15/2030 (n) $ 800,000 725,246
Virgin Media Vendor Financing Notes IV DAC, 5%, 7/15/2028 (n) 891,000 868,222
Ziggo Bond Finance B.V., 5.125%, 2/28/2030 (n) 990,000 839,148
$10,373,290
Chemicals - 1.4%
Arkema S.A., 4.25%, 5/27/2173  EUR 100,000 $114,061
Cerdia Finanz GmbH, 9.375%, 10/03/2031 (n) $ 674,000 692,551
Chemours Co., 4.625%, 11/15/2029 (n) 989,000 809,016
Chemours Co., 8%, 1/15/2033 (n) 230,000 200,524
Consolidated Energy Finance S.A., 6.5%, 5/15/2026 (n) 150,000 144,851
Consolidated Energy Finance S.A., 5.625%, 10/15/2028 (n) 635,000 512,663
SCIH Salt Holdings, Inc., 6.625%, 5/01/2029 (n) 796,000 780,960
SNF Group SACA, 3.375%, 3/15/2030 (n) 805,000 735,215
$3,989,841
Computer Software - 1.0%
Amentum Escrow Corp., 7.25%, 8/01/2032 (n) $ 652,000 $665,095
Cloud Software Group, Inc., 8.25%, 6/30/2032 (n) 710,000 746,545
Fair Isaac Corp., 6%, 5/15/2033 (n) 731,000 729,620
Microsoft Corp., 2.525%, 6/01/2050  71,000 43,086
Neptune Bidco U.S., Inc., 9.29%, 4/15/2029 (n) 535,000 506,915
Oracle Corp., 4%, 7/15/2046  62,000 46,420
$2,737,681
Computer Software - Systems - 1.0%
Sabre GLBL, Inc., 8.625%, 6/01/2027 (n) $ 337,000 $346,528
Sabre GLBL, Inc., 10.75%, 11/15/2029 (n) 215,000 219,300
Sabre GLBL, Inc., 11.125%, 7/15/2030 (n) 181,000 185,706
SS&C Technologies Holdings, Inc., 5.5%, 9/30/2027 (n) 1,017,000 1,015,866
Virtusa Corp., 7.125%, 12/15/2028 (n) 373,000 360,588
Zebra Technologies Corp., "A", 6.5%, 6/01/2032 (n) 564,000 574,054
$2,702,042
Conglomerates - 1.5%
Amsted Industries, Inc., 6.375%, 3/15/2033 (n) $ 447,000 $453,702
BWX Technologies, Inc., 4.125%, 6/30/2028 (n) 212,000 206,313
BWX Technologies, Inc., 4.125%, 4/15/2029 (n) 1,060,000 1,015,498
12
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Conglomerates - continued
Emerald Debt Merger, 6.625%, 12/15/2030 (n) $ 646,000 $652,533
Gates Corp., 6.875%, 7/01/2029 (n) 472,000 483,686
Husky Injection Molding Systems Ltd., 9%, 2/15/2029 (n) 478,000 488,520
nVent Finance S.à r.l., 5.65%, 5/15/2033  23,000 22,958
Regal Rexnord Corp., 6.05%, 4/15/2028  75,000 77,001
Siemens Financieringsmaatschappij N.V., 4%, 5/27/2045  EUR 100,000 114,113
SPX Flow, Inc., 8.75%, 4/01/2030 (n) $ 592,000 609,382
Westinghouse Air Brake Technologies Corp., 5.611%, 3/11/2034  39,000 39,755
$4,163,461
Construction - 0.8%
Beazer Homes USA, Inc., 7.5%, 3/15/2031 (n) $ 476,000 $467,036
Empire Communities Corp., 9.75%, 5/01/2029 (n) 732,000 734,745
Mattamy Group Corp., 5.25%, 12/15/2027 (n) 194,000 192,945
Mattamy Group Corp., 4.625%, 3/01/2030 (n) 421,000 396,321
Weekley Homes LLC/Weekley Finance Corp., 4.875%, 9/15/2028 (n) 506,000 486,326
$2,277,373
Consumer Products - 2.5%
Acushnet Co., 7.375%, 10/15/2028 (n) $ 725,000 $751,250
Amer Sports Co., 6.75%, 2/16/2031 (n) 677,000 703,887
CD&R Smokey Buyer, Inc./Radio Systems Corp., 9.5%, 10/15/2029 (n) 463,000 384,290
Champ Acquisition Corp., 8.375%, 12/01/2031 (n) 416,000 436,792
Kenvue, Inc., 5.05%, 3/22/2053  57,000 52,041
L'Oréal S.A., 5%, 5/20/2035 (n) 200,000 201,373
MajorDrive Holdings IV LLC, 6.375%, 6/01/2029 (n) 234,000 176,273
Newell Brands, Inc., 8.5%, 6/01/2028 (n) 293,000 303,123
Newell Brands, Inc., 6.375%, 5/15/2030  753,000 707,402
Newell Brands, Inc., 6.625%, 5/15/2032  370,000 341,395
Opal Bidco S.A.S., 5.5%, 3/31/2032 (n) EUR 382,000 441,020
Opal Bidco S.A.S., 6.5%, 3/31/2032 (n) $ 298,000 297,735
Perrigo Finance Unlimited Co., 6.125%, 9/30/2032  857,000 855,484
Prestige Consumer Healthcare, Inc., 5.125%, 1/15/2028 (n) 630,000 626,950
Prestige Consumer Healthcare, Inc., 3.75%, 4/01/2031 (n) 602,000 546,418
$6,825,433
Consumer Services - 2.5%
Allied Universal Holdco LLC, 9.75%, 7/15/2027 (n) $ 410,000 $413,369
Allied Universal Holdco LLC, 6%, 6/01/2029 (n) 400,000 378,642
Allied Universal Holdco LLC, 7.875%, 2/15/2031 (n) 276,000 286,038
Amber Finco PLC, 6.625%, 7/15/2029 (n) EUR 100,000 118,792
Arches Buyer, Inc., 6.125%, 12/01/2028 (n) $ 687,000 627,955
13
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Consumer Services - continued
Booking Holdings, Inc., 4.125%, 5/09/2038  EUR 100,000 $115,272
Garda World Security Corp., 8.375%, 11/15/2032 (n) $ 643,000 645,155
GoDaddy, Inc., 3.5%, 3/01/2029 (n) 857,000 799,965
New Flyer Holdings, Inc., 9.25%, 7/01/2030 (n)(w) 176,000 180,620
Raven Acquisition Holdings LLC, 6.875%, 11/15/2031 (n) 597,000 594,291
Realogy Group LLC/Realogy Co-Issuer Corp., 5.75%, 1/15/2029 (n) 443,000 363,264
Realogy Group LLC/Realogy Co-Issuer Corp., 5.25%, 4/15/2030 (n) 436,000 338,626
Service Corp. International, 5.75%, 10/15/2032  815,000 809,897
TriNet Group, Inc., 3.5%, 3/01/2029 (n) 650,000 600,731
TriNet Group, Inc., 7.125%, 8/15/2031 (n) 114,000 117,534
Verisure Midholding AB, 5.25%, 2/15/2029  EUR 100,000 114,397
WASH Multi-Family Acquisition, Inc., 5.75%, 4/15/2026 (n) $ 544,000 542,706
$7,047,254
Containers - 0.9%
Ball Corp., 6%, 6/15/2029  $ 288,000 $293,704
Ball Corp., 2.875%, 8/15/2030  949,000 841,103
Clydesdale Acquisition Holdings, Inc., 8.75%, 4/15/2030 (n) 425,000 434,618
Clydesdale Acquisition Holdings, Inc., 6.75%, 4/15/2032 (n) 174,000 175,841
Owens-Brockway Glass Container, Inc., 7.25%, 5/15/2031 (n) 650,000 651,110
$2,396,376
Electrical Equipment - 0.2%
Arrow Electronics, Inc., 2.95%, 2/15/2032  $ 48,000 $41,140
Arrow Electronics, Inc., 5.875%, 4/10/2034  19,000 19,216
CommScope Technologies LLC, 5%, 3/15/2027 (n) 288,000 278,318
CommScope, Inc., 4.75%, 9/01/2029 (n) 176,000 168,526
$507,200
Electronics - 0.6%
Broadcom, Inc., 4.55%, 2/15/2032  $ 77,000 $75,395
Diebold Nixdorf, Inc., 7.75%, 3/31/2030 (n) 528,000 554,985
Entegris, Inc., 4.375%, 4/15/2028 (n) 292,000 281,916
Entegris, Inc., 3.625%, 5/01/2029 (n) 228,000 212,617
Entegris, Inc., 5.95%, 6/15/2030 (n) 330,000 330,181
Intel Corp., 5.7%, 2/10/2053  45,000 40,382
NXP B.V./NXP Funding LLC/NXP USA, Inc., 3.4%, 5/01/2030  36,000 33,626
NXP B.V./NXP Funding LLC/NXP USA, Inc., 5%, 1/15/2033  17,000 16,581
$1,545,683
14
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Emerging Market Quasi-Sovereign - 4.4%
Abu Dhabi Developmental Holding Co. PJSC, 5.5%, 5/08/2034 (n) $ 855,000 $879,268
Bank Gospodarstwa Krajowego (Republic of Poland), 5.75%, 7/09/2034 (n) 909,000 919,022
CEZ A.S. (Czech Republic), 4.125%, 4/30/2033  EUR 100,000 114,832
Chile Electricity Lux MPC II S.à r.l., 5.58%, 10/20/2035 (n) $ 195,501 194,209
Corporacion Financiera de Desarrollo S.A. (Republic of Peru), 5.5%, 5/06/2030 (n) 400,000 400,800
Development Bank of Kazakhstan JSC, 5.25%, 10/23/2029 (n) 400,000 396,117
Empresa Nacional del Petroleo (Republic of Chile), 5.25%, 11/06/2029  400,000 401,428
Empresa Nacional del Petroleo (Republic of Chile), 5.95%, 7/30/2034 (n) 635,000 636,595
Eskom Holdings SOC Ltd. (Republic of South Africa), 6.35%, 8/10/2028  624,000 624,350
Indian Railway Finance Corp., 2.8%, 2/10/2031  800,000 713,588
Ipoteka Bank (Republic of Uzbekistan), 5.5%, 11/19/2025  500,000 497,500
Magyar Export-Import Bank PLC (Republic of Hungary), 6.125%, 12/04/2027 (n) 200,000 203,344
Navoi Mining & Metallurgical Co. (Republic of Uzbekistan), 6.7%, 10/17/2028  272,000 274,770
OCP S.A. (Kingdom of Morocco), 6.75%, 5/02/2034 (n) 493,000 497,383
OCP S.A. (Kingdom of Morocco), 5.125%, 6/23/2051 (n) 650,000 474,604
Oryx Funding Ltd. (Sultanate of Oman), 5.8%, 2/03/2031 (n) 200,000 200,752
Petroleos Mexicanos, 6.49%, 1/23/2027  904,000 886,998
Petroleos Mexicanos, 5.95%, 1/28/2031  100,000 86,677
Petroleos Mexicanos, 6.75%, 9/21/2047  866,000 585,456
PETRONAS Capital Ltd. (Federation of Malaysia), 5.34%, 4/03/2035 (n) 669,000 678,002
QNB Finance Ltd. (State of Qatar), 2.75%, 2/12/2027  352,000 340,970
Southern Gas Corridor CJSC (Republic of Azerbaijan), 6.875%, 3/24/2026  1,065,000 1,075,650
State Oil Company of the Azerbaijan Republic, 6.95%, 3/18/2030  500,000 520,414
Uzbek Industrial and Construction Bank ATB (Republic of Uzbekistan), 8.95%, 7/24/2029 (n) 597,000 612,522
$12,215,251
Emerging Market Sovereign - 10.0%
Dominican Republic, 5.5%, 2/22/2029 (n) $ 761,000 $750,879
Dominican Republic, 7.05%, 2/03/2031 (n) 150,000 155,512
Dominican Republic, 5.875%, 1/30/2060 (n) 948,000 777,502
Federal Republic of Nigeria, 7.875%, 2/16/2032  326,000 294,988
15
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Emerging Market Sovereign - continued
Federative Republic of Brazil, 10%, 1/01/2035  BRL 4,665,000 $654,982
Hellenic Republic (Republic of Greece), 3.375%, 6/15/2034  EUR 1,239,000 1,434,309
Hellenic Republic (Republic of Greece), 3.625%, 6/15/2035 (n) 812,000 951,558
Hellenic Republic (Republic of Greece), 4.125%, 6/15/2054  75,000 85,733
Kingdom of Morocco, 1.375%, 3/30/2026  428,000 479,646
Kingdom of Morocco, 3%, 12/15/2032 (n) $ 459,000 379,272
Oriental Republic of Uruguay, 8.25%, 5/21/2031  UYU 13,577,000 309,645
Oriental Republic of Uruguay, 9.75%, 7/20/2033  7,214,000 176,769
People's Republic of China, 3.13%, 11/21/2029  CNY 5,400,000 803,894
People's Republic of China, 1.43%, 1/25/2030  8,800,000 1,216,583
People's Republic of China, 2.88%, 2/25/2033  9,820,000 1,482,735
People's Republic of China, 2.27%, 5/25/2034  3,400,000 493,510
Republic of Albania, 4.75%, 2/14/2035 (n) EUR 273,000 301,802
Republic of Angola, 9.375%, 5/08/2048  $ 870,000 636,881
Republic of Argentina, 4.125%, 7/09/2035  768,494 516,044
Republic of Bulgaria, 5%, 3/05/2037  720,000 695,375
Republic of Costa Rica, 7.3%, 11/13/2054  600,000 612,750
Republic of Cote d'Ivoire, 5.25%, 3/22/2030  EUR 929,000 997,397
Republic of Guatemala, 6.05%, 8/06/2031 (n) $ 630,000 630,895
Republic of Guatemala, 6.125%, 6/01/2050 (n) 382,000 337,115
Republic of Hungary, 5.5%, 6/16/2034 (n) 650,000 629,073
Republic of India, 7.18%, 8/14/2033  INR 69,000,000 851,838
Republic of Korea, 1.875%, 6/10/2029  KRW 3,022,250,000 2,136,532
Republic of Korea, 1.375%, 6/10/2030  1,954,670,000 1,334,631
Republic of Korea, 1.5%, 12/10/2030  1,250,000,000 853,060
Republic of Paraguay, 6%, 2/09/2036 (n) $ 200,000 199,710
Republic of Paraguay, 5.4%, 3/30/2050 (n) 1,150,000 964,850
Republic of Peru, 5.375%, 2/08/2035  433,000 425,639
Republic of Philippines, 3.556%, 9/29/2032  334,000 306,698
Republic of Serbia, 1.65%, 3/03/2033  EUR 428,000 391,279
Republic of Serbia, 6%, 6/12/2034 (n) $ 329,000 326,135
Republic of Serbia, 2.05%, 9/23/2036 (n) EUR 452,000 381,826
Republic of South Africa, 7.1%, 11/19/2036 (n) $ 483,000 468,166
Republic of South Africa, 7.3%, 4/20/2052  611,000 528,515
Republic of Turkey, 7.625%, 5/15/2034  535,000 535,000
Republic of Turkey, 6.5%, 1/03/2035  314,000 287,760
Sultanate of Oman, 7%, 1/25/2051  800,000 823,000
United Mexican States, 4.75%, 4/27/2032  727,000 676,822
United Mexican States, 7.5%, 5/26/2033  MXN 5,600,000 260,812
United Mexican States, 3.771%, 5/24/2061  $ 440,000 245,322
$27,802,444
16
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Energy - Independent - 3.4%
Chord Energy Corp., 6.75%, 3/15/2033 (n) $ 292,000 $289,979
Civitas Resources, Inc., 8.375%, 7/01/2028 (n) 387,000 389,904
Civitas Resources, Inc., 8.625%, 11/01/2030 (n) 201,000 198,220
Civitas Resources, Inc., 8.75%, 7/01/2031 (n) 344,000 336,331
CNX Resources Corp., 7.25%, 3/01/2032 (n) 475,000 484,062
Comstock Resources, Inc., 6.75%, 3/01/2029 (n) 1,051,000 1,035,893
Encino Acquisition Partners Holdings LLC, 8.75%, 5/01/2031 (n) 532,000 581,038
Gulfport Energy Corp., 6.75%, 9/01/2029 (n) 711,000 721,278
Magnolia Oil & Gas Operating LLC/Magnolia Oil & Gas Finance Corp., 6.875%, 12/01/2032 (n) 593,000 587,152
Matador Resources Co., 6.875%, 4/15/2028 (n) 664,000 673,126
Matador Resources Co., 6.5%, 4/15/2032 (n) 212,000 207,577
Occidental Petroleum Corp., 6.45%, 9/15/2036  39,000 38,326
Permian Resources Operating LLC, 5.875%, 7/01/2029 (n) 525,000 518,548
Permian Resources Operating LLC, 7%, 1/15/2032 (n) 476,000 488,278
Permian Resources Operating LLC, 6.25%, 2/01/2033 (n) 313,000 308,821
Pioneer Natural Resources Co., 2.15%, 1/15/2031  44,000 38,525
Sitio Royalties Operating Partnership LP, 7.875%, 11/01/2028 (n) 725,000 747,717
Tengizchevroil Finance Co. International Ltd., 4%, 8/15/2026  987,000 968,696
Vital Energy, Inc., 7.875%, 4/15/2032 (n) 547,000 443,687
Wildfire Intermediate Holdings LLC, 7.5%, 10/15/2029 (n) 467,000 451,683
$9,508,841
Energy - Integrated - 0.3%
Eni S.p.A., 3.875%, 1/15/2034  EUR 100,000 $115,613
Exxon Mobil Corp., 1.408%, 6/26/2039  100,000 83,418
Orlen S.A., 6%, 1/30/2035  $ 549,000 555,269
$754,300
Entertainment - 2.5%
Carnival Corp., 5.75%, 3/15/2030 (n) $ 581,000 $582,349
Carnival Corp., 6.125%, 2/15/2033 (n) 305,000 305,753
Life Time, Inc., 6%, 11/15/2031 (n) 680,000 681,519
Lindblad Expeditions Holdings, Inc., 9%, 5/15/2028 (n) 592,000 609,874
Motion Bondco DAC, 6.625%, 11/15/2027 (n) 464,000 438,502
NCL Corp. Ltd., 5.875%, 3/15/2026 (n) 56,000 56,035
NCL Corp. Ltd., 6.25%, 3/01/2030 (n) 590,000 583,679
NCL Corp. Ltd., 6.75%, 2/01/2032 (n) 386,000 386,072
Royal Caribbean Cruises Ltd., 5.625%, 9/30/2031 (n) 327,000 323,202
Royal Caribbean Cruises Ltd., 6%, 2/01/2033 (n) 729,000 731,617
Six Flags Entertainment Corp., 6.625%, 5/01/2032 (n) 974,000 993,000
Viking Cruises Ltd. Co., 5.875%, 9/15/2027 (n) 221,000 220,890
17
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Entertainment - continued
Viking Ocean Cruises Ship VII Ltd., 5.625%, 2/15/2029 (n) $ 940,000 $928,904
$6,841,396
Financial Institutions - 4.2%
Aroundtown S.A., 3.5%, 5/13/2030  EUR 100,000 $111,082
Avation Capital S.A., 8.25% (8.25% Cash or 9% PIK), 10/31/2026 (n)(p) $ 874,138 847,863
Azorra Finance Ltd., 7.75%, 4/15/2030 (n) 1,025,000 1,027,938
Credit Acceptance Corp., 9.25%, 12/15/2028 (n) 280,000 296,281
Credit Acceptance Corp., 6.625%, 3/15/2030 (n) 632,000 629,532
Freedom Mortgage Corp., 7.625%, 5/01/2026 (n) 446,000 445,211
Freedom Mortgage Holdings LLC, 9.25%, 2/01/2029 (n) 552,000 569,123
FTAI Aviation Ltd., 5.5%, 5/01/2028 (n) 661,000 655,476
FTAI Aviation Ltd., 7.875%, 12/01/2030 (n) 435,000 457,130
Icahn Enterprises LP/Icahn Enterprises Finance Corp., 9.75%, 1/15/2029  454,000 439,917
Icahn Enterprises LP/Ichan Enterprises Finance Corp., 10%, 11/15/2029 (n) 237,000 231,026
Jefferson Capital Holdings LLC, 8.25%, 5/15/2030 (n) 585,000 598,789
Macquarie AirFinance Holdings Ltd., 5.15%, 3/17/2030 (n) 29,000 28,565
Muthoot Finance Ltd., 7.125%, 2/14/2028 (n) 231,000 233,209
Nationstar Mortgage Holdings, Inc., 6%, 1/15/2027 (n) 561,000 561,084
Nationstar Mortgage Holdings, Inc., 6.5%, 8/01/2029 (n) 462,000 470,558
Navient Corp., 7.875%, 6/15/2032  206,000 207,757
OneMain Finance Corp., 6.625%, 5/15/2029  600,000 606,688
OneMain Finance Corp., 5.375%, 11/15/2029  384,000 372,048
OneMain Finance Corp., 7.5%, 5/15/2031  220,000 226,127
PennyMac Financial Services, Inc., 6.875%, 2/15/2033 (n) 1,103,000 1,108,923
Shriram Finance Ltd., 6.15%, 4/03/2028 (n) 738,000 728,775
Shurgard Luxembourg S.à r.l., 4%, 5/27/2035  EUR 100,000 114,100
Walker & Dunlop, Inc., 6.625%, 4/01/2033 (n) $ 611,000 618,691
$11,585,893
Food & Beverages - 3.1%
Anheuser-Busch InBev S.A., 4.125%, 5/19/2045  EUR 100,000 $114,865
Anheuser-Busch InBev Worldwide, Inc., 4.375%, 4/15/2038  $ 40,000 36,336
Anheuser-Busch InBev Worldwide, Inc., 5.55%, 1/23/2049  42,000 41,217
Bacardi-Martini B.V., 5.4%, 6/15/2033 (n) 129,000 125,714
Central American Bottling Corp., 5.25%, 4/27/2029 (n) 755,000 730,285
Chobani LLC/Chobani Finance Corp., 7.625%, 7/01/2029 (n) 509,000 533,720
Constellation Brands, Inc., 2.25%, 8/01/2031  53,000 45,427
Fiesta Purchaser, Inc., 7.875%, 3/01/2031 (n) 329,000 345,274
Fiesta Purchaser, Inc., 9.625%, 9/15/2032 (n) 368,000 384,973
Flowers Foods, Inc., 5.75%, 3/15/2035  57,000 57,472
18
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Food & Beverages - continued
Flowers Foods, Inc., 6.2%, 3/15/2055  $ 19,000 $18,489
Gruma S.A.B. de C.V., 5.39%, 12/09/2034 (n) 400,000 394,560
JBS USA Lux S.A./JBS USA Food Co./JBS USA Finance, Inc., 3.625%, 1/15/2032  581,000 522,305
JBS USA Lux S.A./JBS USA Food Co./JBS USA Finance, Inc., 6.5%, 12/01/2052  50,000 50,671
Kraft Heinz Foods Co., 4.375%, 6/01/2046  94,000 74,208
Mars, Inc., 4.8%, 3/01/2030 (n) 38,000 38,235
Mars, Inc., 5.2%, 3/01/2035 (n) 89,000 88,666
Mars, Inc., 5.7%, 5/01/2055 (n) 61,000 59,176
Nestle Finance International Ltd., 3.5%, 1/14/2045  EUR 40,000 43,656
Performance Food Group Co., 5.5%, 10/15/2027 (n) $ 660,000 657,263
Performance Food Group Co., 6.125%, 9/15/2032 (n) 400,000 403,218
Pernod Ricard S.A., 3.25%, 3/03/2032  EUR 100,000 112,623
Post Holdings, Inc., 4.625%, 4/15/2030 (n) $ 932,000 882,028
Post Holdings, Inc., 6.25%, 10/15/2034 (n) 262,000 258,798
Primo Water Holdings Inc./Triton Water Holdings, 4.375%, 4/30/2029 (n) 1,158,000 1,111,390
U.S. Foods Holding Corp., 4.75%, 2/15/2029 (n) 991,000 969,103
U.S. Foods Holding Corp., 5.75%, 4/15/2033 (n) 151,000 148,343
Viking Baked Goods Acquisition Corp., 8.625%, 11/01/2031 (n) 498,000 469,514
$8,717,529
Forest & Paper Products - 0.5%
Graphic Packaging International LLC, 1.512%, 4/15/2026 (n) $ 79,000 $76,468
Graphic Packaging International LLC, 6.375%, 7/15/2032 (n) 776,000 777,146
Smurfit Kappa Treasury Co., 7.5%, 11/20/2025  55,000 55,675
Veritiv Operating Co., 10.5%, 11/30/2030 (n) 536,000 570,092
$1,479,381
Gaming & Lodging - 3.0%
Allwyn Entertainment Finance, 7.25%, 4/30/2030  EUR 114,000 $137,539
CCM Merger, Inc., 6.375%, 5/01/2026 (n) $ 617,000 617,229
CDI Escrow Issuer, Inc., 5.75%, 4/01/2030 (n) 1,224,000 1,206,764
Flutter Treasury DAC, 6.125%, 6/04/2031  GBP 100,000 135,263
Hilton Domestic Operating Co., Inc., 4.875%, 1/15/2030  $ 1,229,000 1,204,603
Hilton Domestic Operating Co., Inc., 3.625%, 2/15/2032 (n) 646,000 574,972
Las Vegas Sands Corp., 3.9%, 8/08/2029  89,000 83,480
Lottomatica Group S.p.A., 4.875%, 1/31/2031 (n) EUR 100,000 116,305
Marriott International, Inc., 2.85%, 4/15/2031  $ 90,000 80,550
Melco Resorts Finance Limited, 5.375%, 12/04/2029  955,000 875,150
Voyager Parent LLC, 9.25%, 7/01/2032 (n) 176,000 181,828
Whitbread Group PLC, 5.5%, 5/31/2032  GBP 100,000 131,966
Wyndham Hotels & Resorts, Inc., 4.375%, 8/15/2028 (n) $ 934,000 903,777
19
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Gaming & Lodging - continued
Wynn Macau Ltd., 5.625%, 8/26/2028 (n) $ 1,083,000 $1,044,009
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., 5.125%, 10/01/2029 (n) 831,000 810,338
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., 7.125%, 2/15/2031 (n) 162,000 169,915
$8,273,688
Industrial - 0.6%
APi Escrow Corp., 4.75%, 10/15/2029 (n) $ 1,087,000 $1,058,449
Booz Allen Hamilton, Inc., 5.95%, 4/15/2035  61,000 60,361
Brundage-Bone Concrete Pumping Holdings, Inc., 7.5%, 2/01/2032 (n) 352,000 351,384
Pachelbel Bidco Spa, 7.125%, 5/17/2031 (n) EUR 100,000 121,243
Prysmian S.p.A., 3.625%, 11/28/2028  100,000 116,020
Trustees of the University of Pennsylvania, 2.396%, 10/01/2050  $ 35,000 19,613
$1,727,070
Insurance - 0.2%
Aviva PLC, 4.625%, 8/28/2056  EUR 100,000 $114,315
Corebridge Financial, Inc., 4.35%, 4/05/2042  $ 76,000 62,307
MetLife, Inc., 5.3%, 12/15/2034  63,000 63,786
Nippon Life Insurance Co., 4.114% to 1/23/2035, FLR (EUR ICE Swap Rate - 5yr. + 2.6%) to 1/23/2055  EUR 100,000 111,666
Northwestern Mutual Life Insurance Co., 6.17%, 5/29/2055 (n) $ 104,000 106,971
Sammons Financial Group, Inc., 6.875%, 4/15/2034 (n) 62,000 64,784
$523,829
Insurance - Health - 0.1%
Elevance Health, Inc., 5.375%, 6/15/2034  $ 39,000 $39,151
Humana, Inc., 5.375%, 4/15/2031  31,000 31,199
Humana, Inc., 5.55%, 5/01/2035  83,000 81,520
UnitedHealth Group, Inc., 5.15%, 7/15/2034  77,000 75,991
$227,861
Insurance - Property & Casualty - 2.8%
Acrisure LLC/Acrisure Finance, Inc., 8.25%, 2/01/2029 (n) $ 480,000 $496,378
Acrisure LLC/Acrisure Finance, Inc., 6%, 8/01/2029 (n) 523,000 506,277
Acrisure LLC/Acrisure Finance, Inc., 7.5%, 11/06/2030 (n) 175,000 180,565
Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer, 5.875%, 11/01/2029 (n) 447,000 438,944
Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer, 7%, 1/15/2031 (n) 485,000 496,079
Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer, 6.5%, 10/01/2031 (n) 1,075,000 1,083,605
20
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Insurance - Property & Casualty - continued
American International Group, Inc., 5.125%, 3/27/2033  $ 55,000 $55,028
AmWINS Group Benefits, Inc., 6.375%, 2/15/2029 (n) 304,000 308,259
AmWINS Group Benefits, Inc., 4.875%, 6/30/2029 (n) 412,000 394,713
Arthur J. Gallagher & Co., 5%, 2/15/2032  12,000 12,028
Arthur J. Gallagher & Co., 6.5%, 2/15/2034  26,000 28,086
Arthur J. Gallagher & Co., 5.75%, 3/02/2053  45,000 43,064
Baldwin Insurance Group Holdings LLC, 7.125%, 5/15/2031 (n) 1,098,000 1,131,957
Fairfax Financial Holdings Ltd., 4.25%, 12/06/2027  CAD 106,000 78,665
Fairfax Financial Holdings Ltd., 5.75%, 5/20/2035 (n) $ 69,000 68,891
Fairfax Financial Holdings Ltd., 6.35%, 3/22/2054  77,000 75,358
Hub International Ltd., 5.625%, 12/01/2029 (n) 316,000 313,402
Hub International Ltd., 7.25%, 6/15/2030 (n) 840,000 874,795
Hub International Ltd., 7.375%, 1/31/2032 (n) 254,000 265,074
Marsh & McLennan Cos., Inc., 4.85%, 11/15/2031  46,000 46,192
Marsh & McLennan Cos., Inc., 5.4%, 3/15/2055  65,000 60,727
Panther Escrow Issuer, 7.125%, 6/01/2031 (n) 909,000 940,364
$7,898,451
Interactive Media Services - 0.2%
Snap, Inc., 6.875%, 3/01/2033 (n) $ 498,000 $504,447
International Market Quasi-Sovereign - 0.3%
Belfius Bank S.A. (Kingdom of Belgium), 3.375%, 5/28/2030  EUR 100,000 $113,955
Electricite de France S.A., 4.625%, 5/07/2045  100,000 112,276
EnBW International Finance B.V. (Federal Republic of Germany), 3.75%, 11/20/2035  40,000 45,515
Landsbankinn hf. (Republic of Iceland), 3.75%, 10/08/2029  100,000 115,084
NBN Co. Ltd. (Commonwealth of Australia), 5.75%, 10/06/2028 (n) $ 200,000 208,011
NBN Co. Ltd. (Commonwealth of Australia), 3.375%, 11/29/2032  EUR 100,000 114,591
P3 Group S.à r.l. (Grand Duchy of Luxembourg), 4%, 4/19/2032  100,000 114,080
RTE Reseau de Transport d'Electricite (Republic of France), 3.5%, 10/02/2036  100,000 112,859
$936,371
International Market Sovereign - 9.0%
Commonwealth of Australia, 3.5%, 12/21/2034  AUD 1,197,000 $728,786
Commonwealth of Australia, 3.25%, 6/21/2039  15,620,000 8,767,176
Commonwealth of Australia, 2.75%, 5/21/2041  1,099,000 559,606
Federal Republic of Germany, 2.5%, 8/15/2054  EUR 590,000 606,053
Government of Bermuda, 5%, 7/15/2032 (n) $ 560,000 544,880
Government of Canada, 3.25%, 12/01/2034  CAD 1,245,000 910,823
Government of Canada, 3.5%, 12/01/2045  350,000 258,253
21
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
International Market Sovereign - continued
Government of Japan, 1.2%, 12/20/2034  JPY 94,350,000 $639,989
Government of Japan, 1.4%, 3/20/2035  138,000,000 950,248
Government of Japan, 0.3%, 12/20/2039  201,250,000 1,094,242
Government of Japan, 1.1%, 6/20/2043  73,450,000 419,052
Government of Japan, 1.5%, 3/20/2045  35,200,000 209,502
Government of Japan, 0.4%, 3/20/2050  119,600,000 490,601
Government of Japan, 0.7%, 12/20/2051  295,000,000 1,250,995
Government of Japan, 2.4%, 3/20/2055  21,000,000 132,846
Kingdom of Spain, 3.15%, 4/30/2035 (n) EUR 454,000 517,556
Kingdom of Spain, 3.9%, 7/30/2039 (n) 1,003,000 1,188,283
Republic of Italy, 3.85%, 2/01/2035  413,000 486,391
Republic of Italy, 1.45%, 3/01/2036  370,000 343,447
Republic of Italy, 4.15%, 10/01/2039 (n) 659,000 773,493
Republic of Italy, 4.3%, 10/01/2054 (n) 80,000 90,717
United Kingdom Treasury, 4%, 10/22/2031  GBP 635,000 840,906
United Kingdom Treasury, 1.25%, 10/22/2041  2,739,000 2,126,772
United Kingdom Treasury, 1.5%, 7/22/2047  494,000 339,451
United Kingdom Treasury, 3.75%, 7/22/2052  606,000 628,664
$24,898,732
Internet - 0.0%
Alphabet, Inc., 4%, 5/06/2054  EUR 100,000 $112,896
Local Authorities - 0.1%
Alliander N.V., 3.5%, 5/06/2037  EUR 100,000 $113,802
Province of Alberta, 1.65%, 6/01/2031  CAD 95,000 63,311
Province of British Columbia, 2.95%, 6/18/2050  115,000 65,100
$242,213
Machinery & Tools - 0.7%
CNH Industrial Capital LLC, 5.5%, 1/12/2029  $ 35,000 $35,903
Manitowoc Co., Inc., 9.25%, 10/01/2031 (n) 405,000 422,003
Ritchie Bros Holdings, Inc., 7.75%, 3/15/2031 (n) 1,351,000 1,414,230
$1,872,136
Major Banks - 1.2%
Bank of America Corp., 5.202% to 4/25/2028, FLR (SOFR - 1 day + 1.63%) to 4/25/2029  $ 59,000 $59,954
Bank of America Corp., 2.687% to 4/22/2031, FLR (SOFR - 1 day + 1.32%) to 4/22/2032  69,000 60,939
Bank of America Corp., 5.425% to 8/15/2034, FLR (SOFR - 1 day + 1.913%) to 8/15/2035  71,000 69,569
Bank of America Corp., 5.464% to 5/09/2035, FLR (SOFR - 1 day + 1.64%) to 5/09/2036  50,000 50,332
22
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Major Banks - continued
Bank of Ireland Group PLC, 3.625%, 5/19/2032  EUR 100,000 $114,535
Barclays PLC, 4.973%, 5/31/2036  100,000 118,694
Commonwealth Bank of Australia, 2.688%, 3/11/2031 (n) $ 221,000 193,697
Credit Agricole S.A., 3.75%, 5/27/2035  EUR 100,000 113,598
Danske Bank A.S., 3.5%, 5/26/2033  110,000 125,059
Deutsche Bank AG, 5.373% to 1/10/2028, FLR (SOFR - 1 day + 1.21%) to 1/10/2029  $ 150,000 151,697
Erste Group Bank AG, 6.375%, 11/20/2173  EUR 200,000 227,159
Goldman Sachs Group, Inc., 4.692% to 10/23/2029, FLR (SOFR - 1 day + 1.135%) to 10/23/2030  $ 96,000 95,656
Goldman Sachs Group, Inc., 5.016% to 10/23/2034, FLR (SOFR - 1 day + 1.42%) to 10/23/2035  98,000 94,841
HSBC Holdings PLC, 4.191%, 5/19/2036  EUR 100,000 114,729
JPMorgan Chase & Co., 5.581% to 4/22/2029, FLR (SOFR - 1 day + 1.16%) to 4/22/2030  $ 115,000 118,709
JPMorgan Chase & Co., 1.953% to 2/04/2031, FLR (SOFR - 1 day + 1.065%) to 2/04/2032  108,000 92,463
JPMorgan Chase & Co., 3.761% to 3/21/2033, FLR (EURIBOR - 3mo. + 0.98%) to 3/21/2034  EUR 100,000 115,802
JPMorgan Chase & Co., 3.588%, 1/23/2036  100,000 112,815
JPMorgan Chase & Co., 5.502% to 1/24/2035, FLR (SOFR - 1 day + 1.315%) to 1/24/2036  $ 75,000 75,890
JPMorgan Chase & Co., 3.328% to 4/22/2051, FLR (SOFR - 1 day + 1.58%) to 4/22/2052  28,000 19,012
Morgan Stanley, 3.622% to 4/01/2030, FLR (SOFR - 1 day + 3.12%) to 4/01/2031  154,000 146,018
Morgan Stanley, 5.424% to 7/21/2033, FLR (SOFR - 1 day + 1.88%) to 7/21/2034  134,000 135,208
Nationwide Building Society, 5.532% to 1/13/2032, FLR (BPISDS01 + 1.474%) to 1/13/2033  GBP 100,000 135,068
Nationwide Building Society, 4%, 7/30/2035  EUR 100,000 114,522
NatWest Group PLC, 3.24%, 5/13/2030  100,000 113,948
PNC Financial Services Group, Inc., 5.676% to 1/22/2034, FLR (SOFR - 1 day + 1.902%) to 1/22/2035  $ 75,000 76,510
PNC Financial Services Group, Inc., 5.575% to 1/29/2035, FLR (SOFR - 1 day + 1.394%) to 1/29/2036  27,000 27,180
UBS Group AG, 2.746% to 2/11/2032, FLR (CMT - 1yr. + 1.1%) to 2/11/2033 (n) 200,000 171,635
UniCredit S.p.A., 3.8% to 1/16/2032, FLR (EURIBOR - 3mo. +1.4%) to 1/16/2033  EUR 150,000 172,113
Wells Fargo & Co., 3.526% to 3/24/2027, FLR (SOFR - 1 day + 1.51%) to 3/24/2028  $ 45,000 44,136
23
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Major Banks - continued
Wells Fargo & Co., 3.35% to 3/02/2032, FLR (SOFR - 1 day + 1.5%) to 3/02/2033  $ 86,000 $77,135
$3,338,623
Medical & Health Technology & Services - 4.1%
180 Medical, Inc., 3.875%, 10/15/2029 (n) $ 965,000 $916,582
Acadia Healthcare Co., Inc., 7.375%, 3/15/2033 (n) 476,000 485,018
Bausch & Lomb Escrow Corp., 8.375%, 10/01/2028 (n) 491,000 507,625
CAB SELAS, 3.375%, 2/01/2028  EUR 100,000 109,003
Charles River Laboratories International, Inc., 3.75%, 3/15/2029 (n) $ 617,000 571,528
CHS/Community Health Systems, Inc., 6.125%, 4/01/2030 (n) 338,000 261,108
CHS/Community Health Systems, Inc., 5.25%, 5/15/2030 (n) 1,511,000 1,360,725
Concentra, Inc., 6.875%, 7/15/2032 (n) 816,000 839,523
Encompass Health Corp., 5.75%, 9/15/2025  70,000 70,004
Encompass Health Corp., 4.75%, 2/01/2030  845,000 823,782
Encompass Health Corp., 4.625%, 4/01/2031  246,000 234,561
HCA, Inc., 5.125%, 6/15/2039  54,000 49,523
IQVIA, Inc., 5%, 5/15/2027 (n) 427,000 424,254
IQVIA, Inc., 6.5%, 5/15/2030 (n) 600,000 612,808
Lifepoint Health, Inc., 9.875%, 8/15/2030 (n) 516,000 552,836
Lifepoint Health, Inc., 11%, 10/15/2030 (n) 367,000 403,458
Lifepoint Health, Inc., 10%, 6/01/2032 (n) 255,000 266,750
New York Society for the Relief of the Ruptured & Crippled, 2.667%, 10/01/2050  88,000 51,478
ProMedica Toledo Hospital, "B", AGM, 6.015%, 11/15/2048  142,000 136,640
Surgery Center Holdings, Inc., 7.25%, 4/15/2032 (n) 569,000 567,902
Tenet Healthcare Corp., 6.125%, 10/01/2028  409,000 409,594
Tenet Healthcare Corp., 6.125%, 6/15/2030  1,048,000 1,058,269
U.S. Acute Care Solutions LLC, 9.75%, 5/15/2029 (n) 581,000 590,522
$11,303,493
Medical Equipment - 0.8%
Insulet Corp., 6.5%, 4/01/2033 (n) $ 528,000 $542,919
Medline Borrower LP, 3.875%, 4/01/2029 (n) 290,000 273,315
Medline Borrower LP, 5.25%, 10/01/2029 (n) 833,000 814,053
Medline Borrower LP/Medline Co-Issuer, Inc., 6.25%, 4/01/2029 (n) 629,000 640,048
$2,270,335
24
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Metals & Mining - 2.3%
Baffinland Iron Mines Corp./Baffinland Iron Mines LP, 8.75%, 7/15/2026 (n) $ 715,000 $650,232
Cleveland-Cliffs, Inc., 7%, 3/15/2032 (n) 529,000 456,287
FMG Resources Ltd., 5.875%, 4/15/2030 (n) 178,000 177,878
FMG Resources Ltd., 4.375%, 4/01/2031 (n) 1,916,000 1,758,954
Glencore Capital Finance DAC, 3.75%, 2/04/2032 (w) EUR 100,000 113,950
Mineral Resources Ltd., 9.25%, 10/01/2028 (n) $ 235,000 239,768
Novelis, Inc., 4.75%, 1/30/2030 (n) 761,000 723,433
Novelis, Inc., 6.875%, 1/30/2030 (n) 505,000 520,773
Novelis, Inc., 3.875%, 8/15/2031 (n) 296,000 263,154
Petra Diamonds US$ Treasury PLC, 9.75%, 3/08/2026 (n) 305,655 162,765
Rio Tinto Finance (USA) PLC, 5%, 3/14/2032  102,000 102,406
Samarco Mineracao S.A., 9% PIK to 12/30/2025, (4% Cash + 5% PIK) to 12/30/2026, (5.5% Cash + 3.5% PIK) to 12/30/2027, 9.25% Cash to 12/30/2029, 9.5% Cash to 6/30/2031 (p) 552,150 536,268
Taseko Mines Ltd., 8.25%, 5/01/2030 (n) 587,000 603,101
$6,308,969
Midstream - 4.9%
Buckeye Partners LP, 6.75%, 2/01/2030 (n) $ 359,000 $370,565
Buckeye Partners LP, 5.85%, 11/15/2043  175,000 147,730
Columbia Pipelines Operating Co. LLC, 6.036%, 11/15/2033 (n) 18,000 18,528
Columbia Pipelines Operating Co. LLC, 6.544%, 11/15/2053 (n) 59,000 59,295
Delek Logistics Partners LP/Delek Logistics Corp., 8.625%, 3/15/2029 (n) 734,000 760,180
DT Midstream, Inc., 4.375%, 6/15/2031 (n) 710,000 663,057
Eastern Energy Gas Holdings LLC, 5.65%, 10/15/2054  78,000 71,902
Energy Transfer LP, 5.95%, 5/15/2054  60,000 54,794
Genesis Energy LP/Genesis Energy Finance Corp., 8.25%, 1/15/2029  826,000 854,681
Kinetik Holdings, Inc., 5.875%, 6/15/2030 (n) 733,000 728,644
NFE Financing LLC, 12%, 11/15/2029 (n) 406,856 174,553
NuStar Logistics LP, 6.375%, 10/01/2030  692,000 705,010
Pembina Pipeline Corp., 4.81%, 3/25/2044  CAD 97,000 66,418
Peru LNG, 5.375%, 3/22/2030  $ 431,701 399,879
Plains All American Pipeline LP, 5.7%, 9/15/2034  70,000 69,469
Prairie Acquiror LP, 9%, 8/01/2029 (n) 530,000 538,791
Rockies Express Pipeline LLC, 6.75%, 3/15/2033 (n) 304,000 313,104
Rockies Express Pipeline LLC, 6.875%, 4/15/2040 (n) 605,000 579,322
Sunoco LP, 7.25%, 5/01/2032 (n) 919,000 955,535
Tallgrass Energy Partners LP, 5.5%, 1/15/2028 (n) 990,000 983,844
Tallgrass Energy Partners LP, 7.375%, 2/15/2029 (n) 594,000 604,159
Targa Resources Corp., 4.95%, 4/15/2052  53,000 42,341
25
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Midstream - continued
TransMontaigne Partners LLC, 8.5%, 6/15/2030 (n) $ 348,000 $355,254
Venture Global Calcasieu Pass LLC, 3.875%, 8/15/2029 (n) 284,000 263,934
Venture Global Calcasieu Pass LLC, 4.125%, 8/15/2031 (n) 379,000 342,875
Venture Global LNG, Inc., 8.125%, 6/01/2028 (n) 601,000 615,063
Venture Global LNG, Inc., 9.5%, 2/01/2029 (n) 656,000 701,360
Venture Global LNG, Inc., 7%, 1/15/2030 (n) 289,000 287,721
Venture Global LNG, Inc., 8.375%, 6/01/2031 (n) 1,030,000 1,045,596
Venture Global LNG, Inc., 9% to 9/30/2029, FLR (CMT - 5yr. + 5.44%) to 3/30/2173 (n) 718,000 677,197
Venture Global Plaquemines LNG LLC, 7.5%, 5/01/2033 (n) 205,000 214,112
$13,664,913
Mortgage-Backed - 2.4%
Fannie Mae, 6.5%, 4/01/2032 - 1/01/2033  $ 9,560 $9,878
Fannie Mae, 5.5%, 7/01/2033 - 4/01/2054  401,281 398,164
Fannie Mae, 6%, 8/01/2034 - 8/01/2054  68,522 69,788
Fannie Mae, 3.5%, 12/01/2047  32,521 29,541
Fannie Mae, 4%, 9/25/2050 (i) 110,780 21,963
Fannie Mae, 5.121%, 10/25/2052  189,702 183,552
Fannie Mae, 5.772%, 1/25/2055  165,997 165,826
Fannie Mae, UMBS, 2%, 4/01/2042 - 11/01/2051  204,375 168,842
Fannie Mae, UMBS, 6.5%, 2/01/2043  23,937 24,618
Fannie Mae, UMBS, 3.5%, 5/01/2049 - 7/01/2050  106,277 95,721
Fannie Mae, UMBS, 2.5%, 1/01/2050 - 2/01/2052  534,616 437,308
Fannie Mae, UMBS, 3%, 5/01/2051 - 12/01/2051  371,679 318,405
Fannie Mae, UMBS, 5%, 8/01/2052  149,527 145,301
Fannie Mae, UMBS, 4%, 10/01/2052  442,419 406,270
Fannie Mae, UMBS, 5.5%, 11/01/2052  97,847 97,235
Freddie Mac, 1.373%, 3/25/2027 (i) 448,000 9,911
Freddie Mac, 0.125%, 2/25/2028 (i) 36,576,000 144,069
Freddie Mac, 0.293%, 2/25/2028 (i) 15,572,000 126,599
Freddie Mac, 0.107%, 4/25/2028 (i) 15,983,000 66,162
Freddie Mac, 1.085%, 7/25/2029 (i) 1,842,705 69,571
Freddie Mac, 0.571%, 1/25/2030 (i) 355,214 8,641
Freddie Mac, 1.797%, 4/25/2030 (i) 845,640 63,969
Freddie Mac, 1.838%, 4/25/2030 (i) 731,897 56,615
Freddie Mac, 1.665%, 5/25/2030 (i) 896,340 65,036
Freddie Mac, 1.798%, 5/25/2030 (i) 2,034,877 158,252
Freddie Mac, 1.341%, 6/25/2030 (i) 821,458 48,538
Freddie Mac, 1.597%, 8/25/2030 (i) 719,995 51,798
Freddie Mac, 1.168%, 9/25/2030 (i) 455,646 24,459
Freddie Mac, 1.08%, 11/25/2030 (i) 901,677 46,100
Freddie Mac, 0.322%, 1/25/2031 (i) 3,164,770 44,611
26
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Mortgage-Backed - continued
Freddie Mac, 0.511%, 3/25/2031 (i) $ 3,715,814 $88,612
Freddie Mac, 0.938%, 7/25/2031 (i) 670,491 33,587
Freddie Mac, 0.536%, 9/25/2031 (i) 2,699,427 79,531
Freddie Mac, 0.567%, 12/25/2031 (i) 659,754 20,155
Freddie Mac, 6%, 8/01/2034  16,774 17,329
Freddie Mac, 5%, 11/01/2054  72,898 70,594
Freddie Mac, UMBS, 4.5%, 7/01/2038 - 11/01/2053  188,301 180,799
Freddie Mac, UMBS, 2%, 8/01/2051 - 9/01/2051  63,700 49,809
Freddie Mac, UMBS, 3%, 4/01/2052 - 5/01/2052  626,979 534,331
Freddie Mac, UMBS, 5%, 11/01/2052  195,666 189,985
Freddie Mac, UMBS, 6%, 8/01/2053  47,446 48,266
Freddie Mac, UMBS, 5.5%, 11/01/2054  424,650 420,526
Ginnie Mae, 4.739%, 10/20/2045  70,183 67,913
Ginnie Mae, 2.5%, 8/20/2051 - 10/20/2052  544,473 456,421
Ginnie Mae, 2%, 2/20/2052 - 4/20/2052  98,454 79,110
Ginnie Mae, 3%, 4/20/2052 - 11/20/2052  106,912 93,392
Ginnie Mae, 3.5%, 7/20/2052  69,395 61,887
Ginnie Mae, 4%, 7/20/2052 - 11/20/2052  93,276 85,763
Ginnie Mae, 5.5%, 2/20/2053 - 1/20/2055  150,050 149,315
Ginnie Mae, 5%, 3/20/2053 - 11/20/2054  291,880 283,938
Ginnie Mae, 6.5%, 7/20/2054  80,103 81,913
Ginnie Mae, 5.378%, 10/20/2054  82,360 81,596
$6,731,515
Municipals - 0.3%
Iowa Student Loan Liquidity Corp. Rev., Taxable, "A", 5.08%, 12/01/2039  $ 60,000 $56,174
Massachusetts Educational Financing Authority, Education Loan Rev., Taxable, "A", 2.641%, 7/01/2037  115,000 106,516
Massachusetts Educational Financing Authority, Education Loan Rev., Taxable, "A", 4.949%, 7/01/2038  145,000 139,970
Massachusetts Housing Finance Agency, Single Family Housing Rev., Taxable, "226", 5.562%, 12/01/2052  145,000 147,705
Michigan Finance Authority Hospital Rev., Taxable (Trinity Health Credit Group), 3.384%, 12/01/2040  70,000 56,162
Oklahoma Development Finance Authority, Health System Rev., Taxable (OU Medicine Project), "C", 5.45%, 8/15/2028  246,000 238,495
$745,022
Natural Gas - Distribution - 0.1%
Boston Gas Co., 5.843%, 1/10/2035 (n) $ 89,000 $91,055
Vier Gas Transport GmbH, 3.375%, 11/11/2031  EUR 100,000 113,465
$204,520
27
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Natural Gas - Pipeline - 0.1%
APA Infrastructure Ltd., 5.125%, 9/16/2034 (n) $ 61,000 $58,883
APA Infrastructure Ltd., 2.5%, 3/15/2036  GBP 100,000 97,708
APA Infrastructure Ltd., 5.75%, 9/16/2044 (n) $ 23,000 21,820
$178,411
Network & Telecom - 0.9%
Altice Financing S.A., 5.75%, 8/15/2029 (n) $ 275,000 $210,194
Frontier Communications Holdings LLC, 6.75%, 5/01/2029 (n) 593,000 601,113
Iliad Holding S.A.S., 7%, 10/15/2028 (n) 781,000 793,430
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) 366,000 442,218
Orange S.A., 3.5%, 5/19/2035  100,000 114,237
TDC Net A/S, 5%, 8/09/2032  100,000 114,765
Windstream Services, LLC / Windstream Escrow, 8.25%, 10/01/2031 (n) $ 232,000 241,453
$2,633,368
Oil Services - 0.5%
Nabors Industries, Inc., 8.875%, 8/15/2031 (n) $ 684,000 $468,093
U.S.A. Compression Partners LP/Finance Co., 7.125%, 3/15/2029 (n) 685,000 695,765
Valaris Ltd., 8.375%, 4/30/2030 (n) 322,000 323,252
$1,487,110
Oils - 0.0%
Marathon Petroleum Corp., 5.7%, 3/01/2035  $ 76,000 $75,167
Other Banks & Diversified Financials - 0.3%
AIB Group PLC, 6.608% to 9/13/2028, FLR (SOFR - 1 day + 2.33%) to 9/13/2029 (n) $ 200,000 $210,372
AIB Group PLC, 3.75% to 3/20/2032, FLR (EUR ICE Swap Rate - 1yr. + 1.25%) to 3/20/2033  EUR 120,000 137,685
American Express Co., 3.433%, 5/20/2032  100,000 114,739
Islandsbanki hf. (Republic of Iceland), 3.875%, 9/20/2030  100,000 115,184
M&T Bank Corp., 4.553% to 8/16/2027, FLR (SOFR - 1 day + 1.78%) to 8/16/2028  $ 41,000 40,861
M&T Bank Corp., 6.082% to 3/13/2031, FLR (SOFR - 1 day + 2.26%) to 3/13/2032  66,000 68,728
Truist Financial Corp., 5.435% to 1/24/2029, FLR (SOFR - 1 day + 1.62%) to 1/24/2030  36,000 36,809
Truist Financial Corp., 5.711% to 1/24/2034, FLR (SOFR - 1 day + 1.922%) to 1/24/2035  27,000 27,435
$751,813
28
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Pharmaceuticals - 0.9%
1261229 B.C. Ltd., 10%, 4/15/2032 (n) $ 451,000 $446,498
AbbVie, Inc., 5.35%, 3/15/2044  41,000 39,230
AbbVie, Inc., 5.4%, 3/15/2054  51,000 48,272
Bausch Health Co., Inc., 4.875%, 6/01/2028 (n) 444,000 362,415
Bausch Health Co., Inc., 5.25%, 1/30/2030 (n) 244,000 138,495
Biogen, Inc., 5.05%, 1/15/2031  56,000 56,281
Bristol-Myers Squibb Co., 5.5%, 2/22/2044  34,000 33,012
Eli Lilly & Co., 5.5%, 2/12/2055  37,000 36,193
Grifols S.A., 7.125%, 5/01/2030  EUR 380,000 448,625
Johnson & Johnson, 3.55%, 6/01/2044  100,000 109,746
Organon Finance 1 LLC, 4.125%, 4/30/2028 (n) $ 654,000 614,319
Sandoz Finance B.V., 4%, 3/26/2035  EUR 100,000 114,425
$2,447,511
Pollution Control - 0.4%
GFL Environmental, Inc., 4%, 8/01/2028 (n) $ 651,000 $625,815
GFL Environmental, Inc., 6.75%, 1/15/2031 (n) 195,000 202,273
Wrangler Holdco Corp., 6.625%, 4/01/2032 (n) 259,000 267,128
$1,095,216
Precious Metals & Minerals - 0.8%
Coeur Mining, Inc., 5.125%, 2/15/2029 (n) $ 229,000 $220,393
Eldorado Gold Corp., 6.25%, 9/01/2029 (n) 706,000 701,553
IAMGOLD Corp., 5.75%, 10/15/2028 (n) 645,000 636,224
New Gold, Inc., 6.875%, 4/01/2032 (n) 498,000 508,715
Northern Star Resources Ltd. Co., 6.125%, 4/11/2033 (n) 53,000 54,416
$2,121,301
Railroad & Shipping - 0.1%
Burlington Northern Sante Fe LLC, 5.5%, 3/15/2055  $ 83,000 $80,320
Union Pacific Corp., 3.25%, 2/05/2050  101,000 67,929
$148,249
Real Estate - Healthcare - 0.2%
MPT Operating Partnership LP/MPT Finance Corp., REIT, 5%, 10/15/2027  $ 235,000 $205,381
MPT Operating Partnership LP/MPT Finance Corp., REIT, 8.5%, 2/15/2032 (n) 417,000 427,443
$632,824
Real Estate - Office - 0.1%
Boston Properties LP, REIT, 3.65%, 2/01/2026  $ 71,000 $70,454
Boston Properties LP, REIT, 2.75%, 10/01/2026  23,000 22,380
Corporate Office Property LP, REIT, 2.25%, 3/15/2026  49,000 47,973
29
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Real Estate - Office - continued
Corporate Office Property LP, REIT, 2%, 1/15/2029  $ 21,000 $18,813
Cousins Properties, Inc., REIT, 5.875%, 10/01/2034  42,000 42,388
$202,008
Real Estate - Other - 0.9%
EPR Properties, REIT, 3.6%, 11/15/2031  $ 76,000 $67,823
Lexington Realty Trust Co., 2.7%, 9/15/2030  47,000 41,355
Park Intermediate Holdings LLC, 4.875%, 5/15/2029 (n) 583,000 551,430
RHP Hotel Properties LP/RHP Finance Corp., 7.25%, 7/15/2028 (n) 1,134,000 1,169,164
XHR LP, REIT, 4.875%, 6/01/2029 (n) 732,000 695,149
$2,524,921
Real Estate - Retail - 0.1%
Hammerson PLC, 5.875%, 10/08/2036  GBP 100,000 $129,054
STORE Capital Corp., REIT, 2.75%, 11/18/2030  $ 113,000 98,344
STORE Capital Corp., REIT, 2.7%, 12/01/2031  6,000 5,020
WEA Finance LLC, REIT, 2.875%, 1/15/2027 (n) 79,000 76,481
$308,899
Restaurants - 0.7%
1011778 B.C. ULC/New Red Finance, Inc., 6.125%, 6/15/2029 (n) $ 461,000 $470,141
1011778 B.C. ULC/New Red Finance, Inc., 4%, 10/15/2030 (n) 420,000 386,260
Fertitta Entertainment LLC, 6.75%, 1/15/2030 (n) 634,000 575,786
New Red Finance, Inc., 5.625%, 9/15/2029 (n) 416,000 418,401
$1,850,588
Retailers - 1.4%
Hanesbrands, Inc., 9%, 2/15/2031 (n) $ 322,000 $340,202
Home Depot, Inc., 3.625%, 4/15/2052  112,000 79,352
L Brands, Inc., 6.625%, 10/01/2030 (n) 765,000 781,370
Macy's Retail Holdings LLC, 5.875%, 4/01/2029 (n) 576,000 564,532
Mavis Tire Express Services Corp., 6.5%, 5/15/2029 (n) 428,000 406,847
Maxeda DIY Holding B.V., 5.875%, 10/01/2026  EUR 345,000 346,681
Parkland Corp., 4.625%, 5/01/2030 (n) $ 712,000 668,983
Parkland Corp., 6.625%, 8/15/2032 (n) 116,000 116,257
Penske Automotive Group Co., 3.75%, 6/15/2029  769,000 720,842
$4,025,066
30
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Specialty Chemicals - 0.1%
International Flavors & Fragrances, Inc., 1.832%, 10/15/2027 (n) $ 8,000 $7,465
International Flavors & Fragrances, Inc., 5%, 9/26/2048  39,000 32,000
Linde PLC, 3.25%, 2/18/2037  EUR 100,000 110,563
$150,028
Specialty Stores - 1.0%
Carvana Co., 9% (9% Cash or 12% PIK) to 8/15/2025, 9% Cash to 12/01/2028 (n)(p) $ 199,385 $204,864
Carvana Co., 14% (9% Cash or 14% PIK) to 8/15/2025, 9% Cash to 6/01/2031 (n)(p) 973,085 1,128,697
DICK'S Sporting Goods, 4.1%, 1/15/2052  53,000 36,334
Michael Cos., Inc., 5.25%, 5/01/2028 (n) 381,000 259,725
Michael Cos., Inc., 7.875%, 5/01/2029 (n) 368,000 177,560
PetSmart, Inc./PetSmart Finance Corp., 7.75%, 2/15/2029 (n) 870,000 846,925
Richemont International S.A., 1.625%, 5/26/2040  EUR 100,000 85,701
$2,739,806
Supermarkets - 0.9%
Albertsons Cos., LLC / Safeway, Inc., 6.25%, 3/15/2033 (n) $ 1,178,000 $1,195,879
KeHE Distributors LLC/KeHE Finance Corp., 9%, 2/15/2029 (n) 922,000 961,183
Kroger Co., 5.5%, 9/15/2054  56,000 51,782
Tesco Corporate Treasury Services PLC, 3.375%, 5/06/2032  EUR 100,000 112,750
Tesco Corporate Treasury Services PLC, 5.125%, 5/22/2034  GBP 100,000 127,882
$2,449,476
Telecommunications - Wireless - 1.3%
Altice France S.A., 5.5%, 1/15/2028 (n) $ 784,000 $674,877
Altice France S.A., 5.125%, 7/15/2029 (n) 200,000 168,763
American Tower Corp., 3.625%, 5/30/2032  EUR 100,000 114,688
Cellnex Finance Co. S.A., 3.5%, 5/22/2032  100,000 113,745
Millicom International Cellular S.A., 5.125%, 1/15/2028  $ 635,400 624,169
SBA Communications Corp., 3.125%, 2/01/2029  933,000 867,966
T-Mobile USA, Inc., 3.875%, 4/15/2030  54,000 52,070
T-Mobile USA, Inc., 5.05%, 7/15/2033  60,000 59,489
T-Mobile USA, Inc., 5.75%, 1/15/2034  26,000 26,961
WP/AP Telecom Holdings III B.V., 5.5%, 1/15/2030  EUR 100,000 112,989
Zegona Finance PLC, 6.75%, 7/15/2029 (n) 100,000 120,642
Zegona Finance PLC, 8.625%, 7/15/2029 (n) $ 598,000 636,870
$3,573,229
Telephone Services - 0.5%
Deutsche Telekom AG, 3.625%, 2/03/2045  EUR 30,000 $31,954
Level 3 Financing, Inc., 11%, 11/15/2029 (n) $ 358,188 406,334
Level 3 Financing, Inc., 3.875%, 10/15/2030 (n) 445,687 375,491
31
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Telephone Services - continued
TELUS Corp., 2.85%, 11/13/2031  CAD 151,000 $102,630
Uniti Group/CSL Capital Co., 6.5%, 2/15/2029 (n) $ 587,000 553,447
$1,469,856
Tobacco - 0.2%
Philip Morris International, Inc., 4.75%, 11/01/2031  $ 76,000 $75,810
Turning Point Brands, Inc., 7.625%, 3/15/2032 (n) 476,000 500,522
$576,332
Transportation - Services - 0.4%
Aeroporti Di Roma S.p.A, 3.625%, 6/15/2032  EUR 100,000 $112,824
Avis Budget Finance PLC, 7.25%, 7/31/2030 (n) 517,000 594,316
Element Fleet Management Corp., 6.271%, 6/26/2026 (n) $ 60,000 60,882
Element Fleet Management Corp., 6.319%, 12/04/2028 (n) 38,000 39,867
Heathrow Funding Ltd., 3.875%, 1/16/2038  EUR 100,000 112,145
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2043 (n) $ 494,697 160,776
$1,080,810
U.S. Treasury Obligations - 21.4%
U.S. Treasury Bonds, 1.125%, 8/15/2040 (f) $ 15,219,000 $9,146,857
U.S. Treasury Bonds, 3.875%, 5/15/2043  5,655,000 4,955,194
U.S. Treasury Bonds, 4.625%, 11/15/2044  31,000 29,774
U.S. Treasury Bonds, 4.75%, 11/15/2053  5,782,000 5,610,798
U.S. Treasury Notes, 4%, 6/30/2028  4,900,000 4,919,141
U.S. Treasury Notes, 4.125%, 8/31/2030  7,000,000 7,039,922
U.S. Treasury Notes, 4.875%, 10/31/2030  4,700,000 4,892,957
U.S. Treasury Notes, 2.75%, 8/15/2032 (f) 16,124,000 14,688,586
U.S. Treasury Notes, 4%, 2/15/2034  6,349,000 6,203,419
U.S. Treasury Notes, 4.625%, 2/15/2035  1,852,000 1,886,725
$59,373,373
Utilities - Electric Power - 3.2%
AEP Transmission Co. LLC, 5.375%, 6/15/2035  $ 56,000 $56,261
Algonquin Power & Utilities Corp., 5.365%, 6/15/2026  28,000 28,133
American Transmission Systems, Inc., 2.65%, 1/15/2032 (n) 86,000 74,562
Amprion GmbH, 3.875%, 6/05/2036 (w) EUR 100,000 113,893
Berkshire Hathaway Energy Co., 5.15%, 11/15/2043  $ 20,000 18,387
Berkshire Hathaway Energy Co., 4.6%, 5/01/2053  17,000 13,753
Bruce Power LP, 2.68%, 12/21/2028  CAD 82,000 58,203
Bruce Power LP, 4.27%, 12/21/2034  93,000 67,090
Calpine Corp., 4.5%, 2/15/2028 (n) $ 663,000 650,274
Centrais Eletricas Brasileiras S.A., 6.5%, 1/11/2035 (n) 234,000 228,829
Clearway Energy Operating LLC, 3.75%, 2/15/2031 (n) 1,332,000 1,202,126
32
Table of Contents
Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Utilities - Electric Power - continued
Clearway Energy Operating LLC, 3.75%, 1/15/2032 (n) $ 33,000 $28,986
ContourGlobal Power Holdings S.A., 5%, 2/28/2030 (n) EUR 100,000 114,366
Duke Energy Carolinas LLC, 4.95%, 1/15/2033  $ 20,000 20,013
Duke Energy Florida LLC, 6.2%, 11/15/2053  72,000 74,231
E.ON International Finance B.V., 5.875%, 10/30/2037  GBP 50,000 66,617
Edison International, 4.7%, 8/15/2025  $ 65,000 64,915
Enel Finance International N.V., 2.5%, 7/12/2031 (n) 200,000 173,149
Enel S.p.A., 4.5% to 1/14/2033, FLR (EUR ICE Swap Rate - 5yr. + 2.196%) to 1/14/2038, FLR (EUR ICE Swap Rate - 5yr. + 2.446%) to 1/14/2053, FLR (EUR ICE Swap Rate - 5yr. + 3.446%) to 1/14/2174  EUR 120,000 134,055
ENGIE Energia Chile S.A., 6.375%, 4/17/2034 (n) $ 200,000 203,425
Entergy Corp., 0.9%, 9/15/2025  87,000 86,053
Eversource Energy, 5.5%, 1/01/2034  55,000 54,860
Florida Power & Light Co., 2.875%, 12/04/2051  46,000 28,188
Georgia Power Co., 4.95%, 5/17/2033  55,000 54,577
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n) 28,000 24,222
National Grid North America, Inc., 3.917%, 6/03/2035 (w) EUR 100,000 113,886
NextEra Energy Capital Holdings, Inc., 5.749%, 9/01/2025  $ 58,000 58,150
Northern States Power Co. of Minnesota, 5.05%, 5/15/2035  56,000 55,852
Oncor Electric Delivery Co. LLC, 5.35%, 4/01/2035 (n) 85,000 85,148
Pacific Gas & Electric Co., 6.1%, 1/15/2029  26,000 26,862
Pacific Gas & Electric Co., 6.4%, 6/15/2033  25,000 25,723
Pacific Gas & Electric Co., 5.9%, 10/01/2054  39,000 34,929
PG&E Corp., 5.25%, 7/01/2030  1,189,000 1,153,641
PG&E Corp., 7.375% to 3/15/2030, FLR (CMT - 5yr. + 3.883%) to 3/15/2055  291,000 284,952
PPL Electric Utilities Corp. 1st Mortgage, 5.25%, 5/15/2053  76,000 70,671
PSEG Power LLC, 5.2%, 5/15/2030 (n) 79,000 79,758
Southern California Edison Co., 5.45%, 3/01/2035  43,000 41,599
SSE PLC, 3.5%, 3/18/2032  EUR 100,000 115,039
Star Energy Geothermal (Wayang Windu) Ltd., 6.75%, 4/24/2033 (n) $ 618,788 617,758
TerraForm Global Operating LLC, 6.125%, 3/01/2026 (n) 220,000 217,209
TerraForm Power Operating LLC, 5%, 1/31/2028 (n) 703,000 683,499
TerraForm Power Operating LLC, 4.75%, 1/15/2030 (n) 278,000 262,047
Xcel Energy, Inc., 4.6%, 6/01/2032  43,000 41,266
Xcel Energy, Inc., 5.6%, 4/15/2035  10,000 9,999
XPLR Infrastructure Operating Partners LP, 4.5%, 9/15/2027 (n) 361,000 349,214
XPLR Infrastructure Operating Partners LP, 7.25%, 1/15/2029 (n) 536,000 538,630
XPLR Infrastructure Operating Partners LP, 8.375%, 1/15/2031 (n) 290,000 302,846
33
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Portfolio of Investments (unaudited) - continued
Issuer Shares/Par Value ($)
Bonds - continued
Utilities - Electric Power - continued
XPLR Infrastructure Operating Partners LP, 8.625%, 3/15/2033 (n) $ 186,000 $195,113
$9,002,959
Utilities - Gas - 0.3%
EP Infrastructure A.S., 2.045%, 10/09/2028  EUR 709,000 $761,750
Utilities - Water - 0.0%
Severn Trent Water Ltd., 3.875%, 8/04/2035  EUR 100,000 $113,957
Total Bonds (Identified Cost, $367,911,907) $361,319,113
Common Stocks - 0.2%
Oil Services - 0.1%
LTRI Holdings LP (a)(u) 615 $168,061
Telecom Services - 0.1%
Intelsat Emergence S.A. (a) 6,129 $248,225
Total Common Stocks (Identified Cost, $730,966) $416,286
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 6,125 $2,682
Mutual Funds (h) - 2.4%
Money Market Funds - 2.4%
MFS Institutional Money Market Portfolio, 4.35% (v) (Identified Cost, $6,612,099) 6,612,100 $6,612,099
34
Table of Contents
Portfolio of Investments (unaudited) - continued
Underlying/Expiration Date/Exercise Price Put/Call Counterparty Notional
Amount 		Par Amount/
Number of
Contracts 		Value ($)
Purchased Options - 0.0%
Market Index Securities - 0.0%
iTraxx Europe Crossover Series 43 Index Credit Default Swap - Fund pays 5%, Fund receives notional amount upon a defined credit event of an index constituent - July 2025 @ 3.5% (Premiums Paid, $17,119) Put Citibank $ 3,859,622  EUR 3,100,000 $12,424
Other Assets, Less Liabilities - (32.8)% (90,899,037)
Net Assets - 100.0% $277,463,567
(a) Non-income producing security.
(f) All or a portion of the security has been segregated as collateral for open futures contracts and cleared swap agreements.
(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 $6,612,099 and $361,750,505, respectively.
(i) Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security.
(n) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $203,341,802, representing 73.3% 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:
AGM Assured Guaranty Municipal
BPISDS01 1-year SONIA linked ICE Swap Rate
CDO Collateralized Debt Obligation
CFRR China Fixing Repo Rate
CLO Collateralized Loan Obligation
CMT Constant Maturity Treasury
CPI-U Consumer Price Index - Urban Consumers
EURIBOR Euro Interbank Offered Rate
35
Table of Contents
Portfolio of Investments (unaudited) - continued
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.
ICE Intercontinental Exchange
NPFG National Public Finance Guarantee Corp.
REIT Real Estate Investment Trust
SOFR Secured Overnight Financing Rate
UMBS Uniform Mortgage-Backed Security
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:
AUD Australian Dollar
BRL Brazilian Real
CAD Canadian Dollar
CHF Swiss Franc
CLP Chilean Peso
CNH Chinese Yuan Renminbi (Offshore)
CNY China Yuan Renminbi
CZK Czech Koruna
EUR Euro
GBP British Pound
HUF Hungarian Forint
IDR Indonesian Rupiah
INR Indian Rupee
JPY Japanese Yen
KRW South Korean Won
MXN Mexican Peso
NOK Norwegian Krone
NZD New Zealand Dollar
SEK Swedish Krona
SGD Singapore Dollar
UYU Uruguayan Peso
Derivative Contracts at 5/31/25
Forward Foreign Currency Exchange Contracts
Currency
Purchased 		Currency
Sold 		Counterparty Settlement
Date 		Unrealized
Appreciation
(Depreciation)
Asset Derivatives
AUD 515,940 USD 328,776 Deutsche Bank AG 7/18/2025 $4,025
AUD 115,334 USD 73,453 JPMorgan Chase Bank N.A. 7/18/2025 942
AUD 141,929 USD 90,402 Merrill Lynch International 7/18/2025 1,147
AUD 723,918 USD 452,340 State Street Corp. 7/18/2025 14,615
BRL 4,814,750 USD 816,302 Goldman Sachs International 6/02/2025 25,511
BRL 2,621,633 USD 455,540 JPMorgan Chase Bank N.A. 6/02/2025 2,827
CAD 2,883,586 USD 2,082,372 Citibank N.A. 7/18/2025 23,685
CAD 1,268,461 USD 914,090 Goldman Sachs International 7/18/2025 12,342
CAD 100,808 USD 72,864 Merrill Lynch International 7/18/2025 762
CAD 2,354,303 USD 1,688,273 State Street Corp. 7/18/2025 31,217
CAD 1,430,443 USD 1,035,481 UBS AG 7/18/2025 9,258
CHF 18,889 USD 22,771 Barclays Bank PLC 7/18/2025 309
36
Table of Contents
Portfolio of Investments (unaudited) - continued
Forward Foreign Currency Exchange Contracts - continued
Currency
Purchased 		Currency
Sold 		Counterparty Settlement
Date 		Unrealized
Appreciation
(Depreciation)
Asset Derivatives - continued
CLP 236,503,550 USD 247,567 Goldman Sachs International 7/11/2025 $2,395
CNH 5,754,475 USD 795,504 JPMorgan Chase Bank N.A. 7/18/2025 5,789
CZK 12,727,104 USD 567,794 Citibank N.A. 7/18/2025 12,852
EUR 300,432 USD 341,545 Citibank N.A. 7/18/2025 581
EUR 98,847 USD 111,225 Deutsche Bank AG 7/18/2025 1,340
EUR 954,700 USD 1,063,227 HSBC Bank 7/18/2025 23,966
EUR 1,131,215 USD 1,261,371 JPMorgan Chase Bank N.A. 7/18/2025 26,835
EUR 5,517,434 USD 6,275,427 Merrill Lynch International 7/18/2025 7,719
EUR 1,515,668 USD 1,692,595 State Street Corp. 7/18/2025 33,417
GBP 54,198 USD 72,780 Barclays Bank PLC 7/18/2025 259
GBP 288,126 USD 379,338 BNP Paribas S.A. 7/18/2025 8,945
GBP 355,506 USD 464,119 Deutsche Bank AG 7/18/2025 14,968
GBP 137,914 USD 185,616 HSBC Bank 7/18/2025 238
GBP 105,538 USD 140,210 JPMorgan Chase Bank N.A. 7/18/2025 2,015
GBP 2,127,887 USD 2,770,295 State Street Corp. 7/18/2025 97,282
HUF 2,123,277 USD 5,854 Goldman Sachs International 7/18/2025 101
IDR 6,080,410,368 USD 368,287 JPMorgan Chase Bank N.A. 8/21/2025 3,770
INR 30,746,135 USD 358,013 Citibank N.A. 8/07/2025 84
JPY 27,176,700 USD 187,220 Goldman Sachs International 7/18/2025 2,608
JPY 142,043,472 USD 971,123 State Street Corp. 7/18/2025 21,040
KRW 1,017,630,672 USD 720,573 Citibank N.A. 7/24/2025 19,532
KRW 1,066,203,844 USD 754,034 JPMorgan Chase Bank N.A. 7/24/2025 21,398
MXN 8,094,202 USD 392,959 JPMorgan Chase Bank N.A. 7/18/2025 22,042
MXN 10,047,227 USD 479,678 State Street Corp. 7/18/2025 35,459
NOK 44,393,921 USD 4,171,858 Deutsche Bank AG 7/18/2025 177,099
NZD 135,047 USD 78,559 Citibank N.A. 7/18/2025 2,258
SEK 3,706,724 USD 386,346 Merrill Lynch International 7/18/2025 1,367
SEK 717,357 USD 73,631 State Street Corp. 7/18/2025 1,402
SGD 950,719 USD 717,124 State Street Corp. 7/18/2025 22,096
USD 426,556 BRL 2,410,614 Citibank N.A. 6/02/2025 5,083
USD 149,469 BRL 863,241 Citibank N.A. 9/02/2025 1,804
USD 851,279 BRL 4,814,750 Goldman Sachs International 6/02/2025 9,467
USD 463,522 BRL 2,621,633 JPMorgan Chase Bank N.A. 6/02/2025 5,154
USD 201,845 CHF 164,948 Barclays Bank PLC 7/18/2025 295
USD 122,720 CHF 98,893 Deutsche Bank AG 7/18/2025 1,882
USD 129,272 CHF 104,216 State Street Corp. 7/18/2025 1,931
USD 420,211 CHF 343,621 UBS AG 7/18/2025 341
USD 796,178 EUR 695,643 HSBC Bank 7/18/2025 3,993
USD 341,342 EUR 298,165 JPMorgan Chase Bank N.A. 7/18/2025 1,797
USD 29,811 EUR 26,127 Merrill Lynch International 7/18/2025 58
USD 447,044 EUR 391,141 State Street Corp. 7/18/2025 1,621
USD 135,137 GBP 100,000 HSBC Bank 7/18/2025 375
USD 2,585,313 JPY 368,595,783 HSBC Bank 7/18/2025 10,698
USD 1,370,226 JPY 193,755,898 JPMorgan Chase Bank N.A. 7/18/2025 16,855
37
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Portfolio of Investments (unaudited) - continued
Forward Foreign Currency Exchange Contracts - continued
Currency
Purchased 		Currency
Sold 		Counterparty Settlement
Date 		Unrealized
Appreciation
(Depreciation)
Asset Derivatives - continued
USD 997,275 JPY 140,965,372 State Street Corp. 7/18/2025 $12,643
$769,494
Liability Derivatives
AUD 286,801 USD 185,080 Deutsche Bank AG 7/18/2025 $(83)
AUD 1,803,323 USD 1,168,275 Merrill Lynch International 7/18/2025 (5,067)
AUD 463,019 USD 299,649 State Street Corp. 7/18/2025 (985)
BRL 2,079,251 USD 367,625 Barclays Bank PLC 6/02/2025 (4,088)
BRL 3,448,998 USD 609,965 Citibank N.A. 6/02/2025 (6,941)
BRL 1,547,373 USD 267,990 Citibank N.A. 9/02/2025 (3,298)
BRL 3,634,616 USD 642,624 JPMorgan Chase Bank N.A. 6/02/2025 (7,146)
CHF 178,937 USD 222,420 UBS AG 7/18/2025 (3,777)
CLP 258,011,967 USD 274,487 Goldman Sachs International 7/11/2025 (1,793)
CLP 173,683,755 USD 184,505 JPMorgan Chase Bank N.A. 7/11/2025 (938)
CNH 5,006,300 USD 698,859 Merrill Lynch International 7/18/2025 (1,748)
CNY 5,187,073 USD 723,882 State Street Corp. 7/18/2025 (656)
EUR 100,281 USD 114,277 Barclays Bank PLC 7/18/2025 (79)
EUR 553,704 USD 631,261 HSBC Bank 7/18/2025 (714)
EUR 1,113,502 USD 1,272,310 JPMorgan Chase Bank N.A. 7/18/2025 (4,276)
EUR 698,089 USD 797,799 Merrill Lynch International 7/18/2025 (2,829)
EUR 672,430 USD 767,315 State Street Corp. 7/18/2025 (1,564)
GBP 205,790 USD 277,370 State Street Corp. 7/18/2025 (44)
IDR 9,024,714,573 USD 553,226 Barclays Bank PLC 8/05/2025 (684)
JPY 65,018,651 USD 464,560 Deutsche Bank AG 7/18/2025 (10,410)
JPY 372,180,530 USD 2,617,437 State Street Corp. 7/18/2025 (17,781)
KRW 183,989,000 USD 134,870 Barclays Bank PLC 7/24/2025 (1,057)
KRW 51,262,254 USD 37,546 Citibank N.A. 7/24/2025 (264)
USD 9,989,836 AUD 16,060,657 State Street Corp. 7/18/2025 (369,865)
USD 351,566 BRL 2,079,251 Barclays Bank PLC 6/02/2025 (11,972)
USD 180,629 BRL 1,038,384 Citibank N.A. 6/02/2025 (923)
USD 626,476 BRL 3,634,616 JPMorgan Chase Bank N.A. 6/02/2025 (9,002)
USD 24,885 CAD 35,327 Citibank N.A. 7/18/2025 (917)
USD 6,581,317 CAD 9,173,764 Goldman Sachs International 7/18/2025 (118,836)
USD 59,760 CAD 83,760 JPMorgan Chase Bank N.A. 7/18/2025 (1,416)
USD 882,152 CAD 1,236,236 State Street Corp. 7/18/2025 (20,746)
USD 256,198 CHF 215,091 HSBC Bank 7/18/2025 (6,621)
USD 845,047 CHF 705,360 JPMorgan Chase Bank N.A. 7/18/2025 (16,833)
USD 298,615 CHF 249,320 State Street Corp. 7/18/2025 (6,029)
USD 3,404,356 CNH 24,755,303 Goldman Sachs International 7/18/2025 (42,741)
USD 3,015,592 CNH 21,943,561 HSBC Bank 7/18/2025 (39,979)
USD 585,907 CNH 4,239,000 Merrill Lynch International 7/18/2025 (4,360)
USD 267,134 CZK 6,018,255 Deutsche Bank AG 7/18/2025 (7,436)
USD 302,710 CZK 6,681,376 JPMorgan Chase Bank N.A. 7/18/2025 (2,113)
USD 6,640,018 EUR 5,851,831 Barclays Bank PLC 7/18/2025 (23,932)
USD 336,783 EUR 298,181 Citibank N.A. 7/18/2025 (2,779)
USD 221,979 EUR 197,768 Deutsche Bank AG 7/18/2025 (3,236)
38
Table of Contents
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 307,609 EUR 275,759 Goldman Sachs International 7/18/2025 $(6,421)
USD 1,712,503 EUR 1,519,146 HSBC Bank 7/18/2025 (17,471)
USD 9,695,650 EUR 8,550,547 JPMorgan Chase Bank N.A. 7/18/2025 (41,545)
USD 274,356 EUR 243,341 Merrill Lynch International 7/18/2025 (2,756)
USD 12,930,318 EUR 11,396,868 State Street Corp. 7/18/2025 (48,212)
USD 124,286 EUR 109,697 UBS AG 7/18/2025 (634)
USD 29,619 GBP 22,209 Barclays Bank PLC 7/18/2025 (310)
USD 744,997 GBP 558,277 HSBC Bank 7/18/2025 (7,347)
USD 7,713,301 GBP 5,902,705 JPMorgan Chase Bank N.A. 7/18/2025 (241,285)
USD 232,168 GBP 174,855 Merrill Lynch International 7/18/2025 (3,470)
USD 168,951 GBP 126,932 State Street Corp. 7/18/2025 (2,105)
USD 13,440 HUF 4,873,053 Goldman Sachs International 7/18/2025 (227)
USD 140,645 INR 12,106,703 Citibank N.A. 8/07/2025 (361)
USD 1,073,355 INR 92,714,603 JPMorgan Chase Bank N.A. 8/07/2025 (6,483)
USD 281,644 JPY 41,277,114 Citibank N.A. 7/18/2025 (6,674)
USD 1,271,689 JPY 185,740,604 Deutsche Bank AG 7/18/2025 (25,695)
USD 443,338 JPY 63,600,838 HSBC Bank 7/18/2025 (909)
USD 512,829 JPY 74,302,166 JPMorgan Chase Bank N.A. 7/18/2025 (6,166)
USD 198,545 JPY 28,549,555 Merrill Lynch International 7/18/2025 (871)
USD 223,963 JPY 32,714,713 State Street Corp. 7/18/2025 (4,547)
USD 3,265,742 KRW 4,621,841,236 Barclays Bank PLC 7/24/2025 (95,645)
USD 30,143 KRW 42,789,937 Citibank N.A. 7/24/2025 (977)
USD 2,182,997 KRW 3,093,306,261 Goldman Sachs International 7/24/2025 (66,713)
USD 371,871 KRW 526,308,452 JPMorgan Chase Bank N.A. 7/24/2025 (10,905)
USD 1,140,468 MXN 23,461,843 State Street Corp. 7/18/2025 (62,457)
USD 895,455 NOK 9,350,703 Deutsche Bank AG 7/18/2025 (20,568)
USD 1,237,269 NOK 13,102,909 Goldman Sachs International 7/18/2025 (46,330)
USD 693,974 NOK 7,212,189 State Street Corp. 7/18/2025 (12,552)
USD 75,360 NZD 129,528 State Street Corp. 7/18/2025 (2,155)
USD 433,999 SEK 4,227,148 Deutsche Bank AG 7/18/2025 (8,150)
USD 708,985 SEK 6,809,608 Goldman Sachs International 7/18/2025 (3,282)
USD 357,455 SGD 469,256 Citibank N.A. 7/18/2025 (7,409)
USD 367,318 SGD 494,464 State Street Corp. 7/18/2025 (17,146)
$(1,543,736)
Futures Contracts
Description Long/
Short 		Currency Contracts Notional
Amount 		Expiration
Date 		Value/Unrealized
Appreciation
(Depreciation)
Asset Derivatives
Interest Rate Futures
Canadian Treasury Bond 10 yr Long CAD 9 $802,120 September - 2025 $6,925
Canadian Treasury Bond 5 yr Long CAD 39 3,245,098 September - 2025 22,904
Euro-Bobl 5 yr Long EUR 93 12,580,810 June - 2025 95,206
39
Table of Contents
Portfolio of Investments (unaudited) - continued
Futures Contracts - continued
Description Long/
Short 		Currency Contracts Notional
Amount 		Expiration
Date 		Value/Unrealized
Appreciation
(Depreciation)
Asset Derivatives - continued
Interest Rate Futures - continued
Euro-BTP 10 yr Long EUR 7 $962,919 June - 2025 $13,337
U.S. Treasury Bond 30 yr Long USD 3 338,344 September - 2025 4,954
$143,326
Liability Derivatives
Interest Rate Futures
Australian Bond 10 yr Short AUD 120 $8,828,677 June - 2025 $(63,788)
Euro-Bund 10 yr Long EUR 17 2,532,701 June - 2025 (1,777)
Euro-Buxl 30 yr Short EUR 3 414,144 June - 2025 (16,198)
Euro-Schatz 2 yr Short EUR 123 14,991,842 June - 2025 (79,172)
Long Gilt 10 yr Long GBP 1 123,256 September - 2025 (98)
U.S. Treasury Note 10 yr Short USD 108 11,961,000 September - 2025 (33,315)
U.S. Treasury Note 2 yr Short USD 47 9,749,563 September - 2025 (14,195)
U.S. Treasury Note 5 yr Short USD 227 24,558,563 September - 2025 (54,007)
U.S. Treasury Ultra Note 10 yr Short USD 61 6,865,359 September - 2025 (19,287)
$(281,837)
40
Table of Contents
Portfolio of Investments (unaudited) - continued
Cleared Swap Agreements
Maturity
Date 		Notional
Amount 		Counterparty Cash Flows
to Receive/
Frequency 		Cash Flows
to Pay/
Frequency 		Unrealized
Appreciation
(Depreciation) 		Net Unamortized
Upfront Payments
(Receipts) 		Value
Asset Derivatives
Interest Rate Swaps
11/18/29 CNY 15,300,000 centrally cleared 1.6445% / Quarterly CFRR / Quarterly $15,054 $- $15,054
Inflation Swaps
1/10/30 USD 3,400,000 centrally cleared CPI-U / At Maturity 2.523% / At Maturity $12,869 $- $12,869
3/13/30 USD 800,000 centrally cleared CPI-U / At Maturity 2.463% / At Maturity 5,455 - 5,455
$18,324 $- $18,324
$33,378 $- $33,378
Liability Derivatives
Interest Rate Swaps
12/13/29 CNY 4,800,000 centrally cleared 1.49% / Quarterly CFRR / Quarterly $(187) $9 $(178)
At May 31, 2025, the fund had cash collateral of $600,000 and other liquid securities with an aggregate value of $1,436,702 to cover any collateral or margin obligations for certain derivative contracts. Restricted cash and/or deposits with brokers in the Statement of Assets and Liabilities are comprised of cash collateral.
See Notes to Financial Statements
41
Table of Contents
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, $368,659,992) $361,750,505
Investments in affiliated issuers, at value (identified cost, $6,612,099) 6,612,099
Foreign currency, at value (identified cost, $17,395) 17,321
Restricted cash for
Forward foreign currency exchange contracts 600,000
Receivables for
Net daily variation margin on open cleared swap agreements 8,021
Forward foreign currency exchange contracts 769,494
Investments sold 2,265,276
Interest 4,797,505
Other assets 24,796
Total assets $376,845,017
Liabilities
Payable to custodian $2,278
Notes payable 95,000,000
Payables for
Distributions 164,386
Forward foreign currency exchange contracts 1,543,736
Net daily variation margin on open futures contracts 109,551
Investments purchased 1,723,442
When-issued investments purchased 516,184
Payable to affiliates
Investment adviser 13,991
Administrative services fee 380
Transfer agent and dividend disbursing costs 3,559
Accrued interest expense 56,245
Deferred foreign capital gains tax expense payable 112,116
Accrued expenses and other liabilities 135,582
Total liabilities $99,381,450
Net assets $277,463,567
42
Table of Contents
Statement of Assets and Liabilities (unaudited) - continued
Net assets consist of
Paid-in capital $338,605,594
Total distributable earnings (loss) (61,142,027)
Net assets $277,463,567
Shares of beneficial interest outstanding (unlimited number of shares authorized) 41,688,435
Net asset value per share (net assets of $277,463,567 / 41,688,435 shares of beneficial interest outstanding) $6.66
See Notes to Financial Statements
43
Table of Contents
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 $10,862,652
Dividends from affiliated issuers 160,235
Dividends from unaffiliated issuers 53,707
Other 146
Total investment income $11,076,740
Expenses
Management fee $843,197
Transfer agent and dividend disbursing costs 22,910
Administrative services fee 24,100
Independent Trustees' compensation 5,475
Stock exchange fee 20,251
Custodian fee 36,299
Shareholder communications 61,003
Audit and tax fees 53,260
Legal fees 2,062
Interest expense and fees 2,587,927
Miscellaneous 30,071
Total expenses $3,686,555
Net investment income (loss) $7,390,185
44
Table of Contents
Statement of Operations (unaudited) - continued
Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)
Unaffiliated issuers $(1,187,010)
Affiliated issuers (786)
Futures contracts (248,289)
Swap agreements 23,819
Forward foreign currency exchange contracts 712,264
Foreign currency (47,174)
Net realized gain (loss) $(747,176)
Change in unrealized appreciation or depreciation
Unaffiliated issuers $(1,577,246)
Affiliated issuers (390)
Futures contracts (51,652)
Swap agreements 19,483
Forward foreign currency exchange contracts (2,608,538)
Translation of assets and liabilities in foreign currencies 30,213
Net unrealized gain (loss) $(4,188,130)
Net realized and unrealized gain (loss) $(4,935,306)
Change in net assets from operations $2,454,879
See Notes to Financial Statements
45
Table of Contents
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) $7,390,185 $14,323,899
Net realized gain (loss) (747,176) (8,786,198)
Net unrealized gain (loss) (4,188,130) 24,403,251
Change in net assets from operations $2,454,879 $29,940,952
Distributions to shareholders $(5,799,490) $(16,251,655)
Tax return of capital distributions to shareholders $- $(6,761,763)
Distributions from other sources $(5,451,106)(a) $-
Change in net assets from fund share transactions $(293,044) $(3,849,950)
Total change in net assets $(9,088,761) $3,077,584
Net assets
At beginning of period 286,552,328 283,474,744
At end of period $277,463,567 $286,552,328
(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
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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 $2,454,879
Adjustments to reconcile change in net assets from operations to net cash provided by operating activities:
Purchase of investment securities (100,234,913)
Proceeds from disposition of investment securities 104,336,897
Proceeds from disposition of short-term investments, net 1,042,282
Realized gain/loss on investments 1,187,010
Unrealized appreciation/depreciation on investments 1,577,636
Unrealized appreciation/depreciation on foreign currency contracts 2,608,538
Unrealized appreciation/depreciation on swaps (19,483)
Net amortization/accretion of income (925,882)
Decrease in interest receivable 85,433
Decrease in accrued expenses and other liabilities (60,544)
Increase in payable for net daily variation margin on open futures contracts 75,842
Increase in other assets (21,349)
Increase in interest payable 26,834
Net cash provided by operating activities $12,133,180
Cash flows from financing activities:
Distributions paid in cash $(11,262,142)
Repurchase of shares of beneficial interest (293,044)
Increase in payable to custodian 2,278
Net cash used by financing activities $(11,552,908)
Net increase in cash and restricted cash $580,272
Cash and restricted cash:
Beginning of period (including foreign currency of $18,937) $37,049
End of period (including foreign currency of $17,321) $617,321
Supplemental disclosure of cash flow information:
Cash paid during the six months ended May 31, 2025 for interest was $2,561,093.
See Notes to Financial Statements
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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 $6.87 $6.69 $6.83 $8.29 $8.90 $8.94
Income (loss) from investment operations
Net investment income (loss) (d) $0.18 $0.34 $0.33 $0.33 $0.35 $0.37
Net realized and unrealized gain (loss) (0.12) 0.38 0.05 (1.20) (0.26) 0.27
 Total from investment operations  $0.06  $0.72  $0.38  $(0.87)  $0.09  $0.64
Less distributions declared to shareholders
From net investment income $(0.14) $(0.39) $(0.27) $(0.42) $(0.42) $(0.40)
From tax return of capital - (0.16) (0.27) (0.18) (0.28) (0.30)
From other sources (0.13)(b) - - - - -
 Total distributions declared to shareholders  $(0.27)  $(0.55)  $(0.54)  $(0.60)  $(0.70)  $(0.70)
 Net increase from repurchase of capital shares  $0.00(w)  $0.01  $0.02  $0.01  $-  $0.02
 Net asset value, end of period (x)  $6.66  $6.87  $6.69  $6.83  $8.29  $8.90
 Market value, end of period  $6.29  $6.32  $6.09  $6.87  $8.44  $8.53
 Total return at market value (%) 3.92(n) 12.94 (3.34) (11.33) 7.27 11.58
 Total return at net asset value (%) (j)(s)(x) 1.15(n) 11.85 6.80 (10.26) 0.99 8.35
Ratios (%) (to average net assets)
and Supplemental data:
Expenses 2.64(a) 2.87 2.70 1.37 0.91 1.02
Net investment income (loss) 5.29(a) 4.97 4.82 4.56 4.06 4.20
Portfolio turnover rate 29(n) 76 73 81 112 129
Net assets at end of period (000 omitted) $277,464 $286,552 $283,475 $300,578 $368,967 $394,538
Supplemental Ratios (%):
Ratios of expenses to average net assets excluding interest expense and fees 0.79(a) 0.76 0.76 0.74 0.71 0.72
Senior Securities:
Total notes payable outstanding (000 omitted) $95,000 $95,000 $95,000 $100,000 $100,000 $100,000
Asset coverage per $1,000 of indebtedness (k) $3,921 $4,016 $3,984 $4,006 $4,690 $4,945
See Notes to Financial Statements
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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.
(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
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Notes to Financial Statements
(unaudited)
(1) Business and Organization
MFS Charter Income Trust (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, including securities of emerging market issuers. 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. Investments in emerging markets can involve additional and greater risks than the risks associated with investments in developed foreign markets. Emerging markets can have less developed markets, greater custody and operational risk, less developed legal, regulatory, accounting, and auditing systems, greater government involvement in the economy, greater risk of new or inconsistent government treatment of or restrictions on issuers and instruments, and greater political, social, and economic instability than developed markets.
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
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Notes to Financial Statements (unaudited) - continued
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 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. Futures contracts are generally valued at last posted settlement price on their primary exchange as provided by a third-party pricing service. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation on their primary exchange as provided by a third-party pricing service.
Forward foreign currency exchange contracts are generally valued at the mean of bid and asked prices for the time period interpolated from rates provided by a third-party pricing service for proximate time periods. Swap agreements are generally valued using valuations provided by a third-party pricing service, which for cleared swaps includes an
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evaluation of any trading activity at the clearinghouses. 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 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. Events that occur after foreign markets close (such as developments in foreign markets and significant movements in the U.S. markets) and prior to the determination of the fund's net asset value may be deemed to have a material effect on the value of securities traded in foreign markets. Accordingly, the fund's foreign equity securities may often be valued at fair value. 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.
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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 futures contracts, forward foreign currency exchange contracts, and swap agreements. The following is a summary of the levels used as of May 31, 2025 in valuing the fund's assets and liabilities:
Financial Instruments Level 1 Level 2 Level 3 Total
Equity Securities:
Luxembourg $- $248,225 $- $248,225
United States - - 168,061 168,061
United Kingdom - 2,682 - 2,682
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents - 59,373,373 - 59,373,373
Non - U.S. Sovereign Debt - 65,852,798 - 65,852,798
Municipal Bonds - 745,022 - 745,022
U.S. Corporate Bonds - 173,207,258 - 173,207,258
Residential Mortgage-Backed Securities - 7,963,692 - 7,963,692
Commercial Mortgage-Backed Securities - 4,736,987 - 4,736,987
Asset-Backed Securities (including CDOs) - 3,759,657 - 3,759,657
Foreign Bonds - 45,692,750 - 45,692,750
Investment Companies 6,612,099 - - 6,612,099
Total $6,612,099 $361,582,444 $168,061 $368,362,604
Other Financial Instruments
Futures Contracts - Assets $143,326 $- $- $143,326
Futures Contracts - Liabilities (281,837) - - (281,837)
Forward Foreign Currency Exchange Contracts - Assets - 769,494 - 769,494
Forward Foreign Currency Exchange Contracts - Liabilities - (1,543,736) - (1,543,736)
Swap Agreements - Assets - 33,378 - 33,378
Swap Agreements - Liabilities - (178) - (178)
For further information regarding security characteristics, see the Portfolio of Investments.
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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 $139,956
Change in unrealized appreciation or depreciation 28,105
Balance as of 5/31/25 $168,061
At May 31, 2025, the fund held one level 3 security.
Inflation-Adjusted Debt Securities - The fund invests in inflation-adjusted debt securities issued by the U.S. Treasury. The principal value of these debt securities is adjusted through income according to changes in the Consumer Price Index. These debt securities typically pay a fixed rate of interest, but this fixed rate is applied to the inflation-adjusted principal amount. The principal paid at maturity of the debt security is typically equal to the inflation-adjusted principal amount, or the security's original par value, whichever is greater. Other types of inflation-adjusted securities may use other methods to adjust for other measures of inflation.
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 or currency 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, futures contracts, forward foreign currency exchange contracts, and swap agreements. 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 counterparty, or novating the position to a third party. The fund may be unable to promptly close out a futures position in instances where the daily fluctuation in the price for that type of future exceeds the daily limit set by the exchange. 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.
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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 (a)
Risk Derivative Contracts Asset Derivatives Liability Derivatives
Credit Purchased Option Contracts $12,424 $-
Interest Rate Futures Contracts 143,326 (281,837)
Foreign Exchange Forward Foreign Currency Exchange Contracts 769,494 (1,543,736)
Interest Rate Cleared Swap Agreements 33,378 (178)
Total $958,622 $(1,825,751)
(a) The value of purchased options outstanding is included in investments in unaffiliated issuers, at value, within the Statement of Assets and Liabilities. Values presented in this table for futures contracts and cleared swap agreements correspond to the values reported in the Portfolio of Investments. Only the current day net variation margin for futures contracts and cleared swap agreements is reported separately within the Statement of Assets and Liabilities.
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 Futures
Contracts 		Swap
Agreements 		Forward Foreign
Currency
Exchange
Contracts 		Unaffiliated Issuers
(Purchased
Options)
Interest Rate $(248,289) $11,894 $- $-
Foreign Exchange - - 712,264 -
Credit - 11,925 - 12,434
Total $(248,289) $23,819 $712,264 $12,434
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 Futures
Contracts 		Swap
Agreements 		Forward Foreign
Currency
Exchange
Contracts 		Unaffiliated Issuers
(Purchased
Options)
Interest Rate $(51,652) $27,822 $- $-
Foreign Exchange - - (2,608,538) -
Credit - (8,339) - 31,257
Total $(51,652) $19,483 $(2,608,538) $31,257
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
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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.
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.
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Futures Contracts - The fund entered into futures contracts which may be used to hedge against or obtain broad market exposure, interest rate exposure, currency exposure, or to manage duration. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.
Upon entering into a futures contract, the fund is required to deposit with the broker, either in cash or securities, an initial margin in an amount equal to a specified percentage of the notional amount of the contract. Subsequent payments (variation margin) are made or received by the fund each day, depending on the daily fluctuations in the value of the contract, and are recorded for financial statement purposes as unrealized gain or loss by the fund until the contract is closed or expires at which point the gain or loss on futures contracts is realized.
The fund bears the risk of interest rates, exchange rates or securities prices moving unexpectedly, in which case, the fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. While futures contracts may present less counterparty risk to the fund since the contracts are exchange traded and the exchange's clearinghouse guarantees payments to the broker, there is still counterparty credit risk due to the insolvency of the broker. The fund's maximum risk of loss due to counterparty credit risk is equal to the margin posted by the fund to the broker plus any gains or minus any losses on the outstanding futures contracts.
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 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.
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Swap Agreements - The fund entered into swap agreements which generally involve a periodic exchange of cash payments on a net basis, at specified intervals or upon the occurrence of specified events, between the fund and a counterparty. Certain swap agreements may be entered into as a bilateral contract ("uncleared swaps") while others are required to be centrally cleared ("cleared swaps").
Both cleared and uncleared swap agreements are marked to market daily. The value of uncleared swap agreements is reported in the Statement of Assets and Liabilities as "Uncleared swaps, at value" which includes any related interest accruals to be paid or received by the fund. For cleared swaps, payments (variation margin) are made or received by the fund each day, depending on the daily fluctuations in the value of the cleared swap, such that only the current day net receivable or payable for variation margin is reported in the Statement of Assets and Liabilities.
For both cleared and uncleared swaps, premiums paid or received at the inception of the agreements are amortized over the term of the agreement as realized gain or loss on swap agreements in the Statement of Operations. The periodic exchange of net cash payments, as well as any liquidation payment received or made upon early termination, are recorded as a realized gain or loss on swap agreements in the Statement of Operations. The change in unrealized appreciation or depreciation on swap agreements in the Statement of Operations reflects the aggregate change over the reporting period in the value of swaps net of any unamortized premiums paid or received.
Risks related to swap agreements include the possible lack of a liquid market, unfavorable market and interest rate movements of the underlying instrument and the failure of the counterparty to perform under the terms of the agreements. The fund's maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from/paid to the counterparty over the contract's remaining life, to the extent that the amount is positive. To address counterparty risk, uncleared swap agreements are limited to only highly-rated counterparties. Risk is further reduced by having an ISDA Master Agreement ("ISDA") between the fund and the counterparty 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. The fund's counterparty risk due to cleared swaps is mitigated by the fact that the clearinghouse is the counterparty to the transaction and the regulatory requirement safeguards in the event of a clearing broker bankruptcy.
The fund entered into interest rate swap agreements in order to manage its exposure to interest rate fluctuations. Interest rate swap agreements involve the periodic exchange of cash flows, between the fund and a counterparty, based on the difference between two interest rates applied to a notional principal amount. The two interest rates exchanged may either be a fixed rate and a floating rate or two floating rates based on different indices.
The fund entered into credit default swap agreements in order to manage its exposure to the market or certain sectors of the market, to reduce its credit risk exposure to defaults of corporate and sovereign issuers or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. A credit default swap's reference obligation may be either a single security or a basket of securities issued by corporate or sovereign issuers. At the inception of the agreement, the protection buyer may make an upfront payment to or receive an upfront payment from the protection seller. Over the term of the agreement, the protection buyer will make a series of periodic
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Notes to Financial Statements (unaudited) - continued
payments to the protection seller based on a fixed percentage applied to the agreement's notional amount in exchange for a promise from the protection seller to make a specific payment should a defined credit event occur with respect to the reference obligation. Although agreement-specific, credit events generally consist of a combination of the following: bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default, or repudiation/moratorium. If a defined credit event occurs, the protection buyer will either (i) receive from the protection seller an amount equal to the agreement's notional amount and deliver the reference obligation (i.e., physical settlement) or (ii) receive from the protection seller a net settlement of cash equal to the agreement's notional amount less the recovery value of the reference obligation. Upon determination of the final price for the reference obligation (or upon delivery of the reference obligation in the case of physical settlement), the difference between the recovery value of the reference obligation and the agreement's notional amount is recorded as realized gain or loss on swap agreements in the Statement of Operations.
The fund entered into inflation swap agreements in order to manage its exposure to inflation risk. Inflation swap agreements involve the periodic exchange of cash flows, between the fund and a counterparty, based on the difference between two rates applied to a notional principal amount. The two rates exchanged are generally a fixed rate and a floating rate based on an inflation index.
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.
The following table provides a reconciliation of cash and restricted cash reported within the Statement of Assets and Liabilities with that shown in the Statement of Cash Flows:
5/31/25
Cash $17,321
Restricted cash 600,000
Restricted cash included in deposits with brokers -
Total cash and restricted cash in the Statement of Cash Flows $617,321
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
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Notes to Financial Statements (unaudited) - continued
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. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted upward or downward based on the rate of inflation. Interest is accrued based on the principal amount, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond is generally recorded as an increase or decrease in interest income, respectively, even though the adjusted principal is not received until maturity.
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.
To mitigate the counterparty credit risk on To Be Announced ("TBA") transactions, mortgage dollar rolls, and other types of forward settling mortgage-backed and asset-backed security transactions, the fund whenever possible enters into a Master Securities Forward Transaction Agreement ("MSFTA") on a bilateral basis with each of the counterparties with whom it undertakes a significant volume of transactions. The MSFTA 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 MSFTA, the non-defaulting party has the right to close out all transactions traded under such agreement and to net amounts owed under each transaction 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 MSFTA 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.
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Notes to Financial Statements (unaudited) - continued
For mortgage-backed and asset-backed securities traded under a MSFTA, the collateral and margining requirements are contract specific. Collateral amounts across all transactions traded under such agreement are netted and an amount is posted from one party to the other to collateralize such obligations. Cash that has been pledged to cover the fund's collateral or margin obligations under a MSFTA, if any, will be reported separately on the Statement of Assets and Liabilities as restricted cash. Securities pledged as collateral or margin for the same purpose, if any, are noted in the Portfolio of Investments.
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 8.00% 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 $5,451,106 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 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 defaulted bonds, amortization of premium and accretion of discount of debt securities, wash sale loss deferrals, and derivative transactions.
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Notes to Financial Statements (unaudited) - continued
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) $16,251,655
Tax return of capital (b) 6,761,763
Total distributions $23,013,418
(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 $380,825,696
Gross appreciation 5,069,121
Gross depreciation (17,532,213)
Net unrealized appreciation (depreciation) $(12,463,092)
As of 11/30/24
Capital loss carryforwards (41,749,999)
Other temporary differences (314,270)
Net unrealized appreciation (depreciation) (10,282,041)
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 $(7,762,731)
Long-Term (33,987,268)
Total $(41,749,999)
(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 annual rate of 0.32% of the fund's average daily net assets and 4.57% of gross income less interest expense from leveraging. Gross income is calculated based on tax elections that generally include the accretion of discount and exclude the amortization of premium, which may differ from investment income reported in the Statement of Operations. The management fee, from net assets and gross income, incurred for the six months ended May 31, 2025 was equivalent to an annual effective rate of 0.60% of the fund's average daily net assets.
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Notes to Financial Statements (unaudited) - continued
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 $7,647.
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 0.0173% 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 purchased options with an expiration date of less than one year from the time of purchase and short-term obligations, were as follows:
Purchases Sales
U.S. Government securities $14,952,853 $13,679,074
Non-U.S. Government securities 89,459,642 94,822,036
(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 49,198 shares of beneficial interest during the six months ended May 31, 2025 at an average price per share of $5.96 and a weighted average discount of 9.49% per share. The fund repurchased 614,788 shares of beneficial interest during
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Notes to Financial Statements (unaudited) - continued
the year ended November 30, 2024 at an average price per share of $6.26 and a weighted average discount of 8.08% 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 (49,198) $(293,044) (614,788) $(3,849,950)
(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 $100,000,000. At May 31, 2025, the fund had outstanding borrowings under this agreement in the amount of $95,000,000, 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 $2,577,038 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 $3,160 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 $95,000,000 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.
(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  $7,654,771  $61,931,934  $62,973,430  $(786)  $(390)  $6,612,099
Affiliated Issuers Dividend
Income 		Capital Gain
Distributions
MFS Institutional Money Market Portfolio  $160,235  $-
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Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Trustees of MFS Charter Income Trust
Results of Review of Interim Financial Statements
We have reviewed the accompanying statement of assets and liabilities of MFS Charter Income Trust (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
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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 and Declaration of Trust, 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.
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CONTACT US
COMPUTERSHARE TRUST COMPANY, N.A.
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: MCR

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 Charter Income Trust

(c) Total

(d) Maximum

Number of

Number (or

(a) Total number

(b)

Shares

Approximate

Period

of Shares

Average

Purchased as

Dollar Value) of

Purchased

Price

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

6,618

6.20

6,618

4,021,148

01/01/25-01/31/25

0

N/A

0

4,021,148

02/01/25-02/28/25

0

N/A

0

4,021,148

03/01/25-03/31/25

0

N/A

0

4,021,148

04/01/25-04/30/25

42,580

5.92

42,580

3,978,568

05/01/25-05/31/25

0

N/A

0

3,978,568

Total

49,198

5.96

49,198

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 4,189,985.

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 CHARTER INCOME TRUST

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.


MFS Charter Income Trust published this content on July 28, 2025, and is solely responsible for the information contained herein. Distributed via Edgar on July 28, 2025 at 12:59 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]