CIF MFS Intermediate High Income Fund

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-5567

MFS INTERMEDIATE HIGH INCOME FUND

(Exact name of registrant as specified in charter)

500 Boylston Street, Boston, Massachusetts 02116

(Address of principal executive offices) (Zip code)

Susan S. Newton

Massachusetts Financial Services Company

500 Boylston Street

Boston, Massachusetts 02116

(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: August 31, 2012

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ITEM 1.

SCHEDULE OF INVESTMENTS.

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QUARTERLY REPORT

August 31, 2012

 

 

MFS® INTERMEDIATE HIGH INCOME FUND

 

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PORTFOLIO OF INVESTMENTS

8/31/12 (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 - 125.7%
Aerospace - 2.5%
Bombardier, Inc., 7.5%, 2018 (n)		$	405,000			$	450,563
Bombardier, Inc., 7.75%, 2020 (n)			95,000				106,875
CPI International, Inc., 8%, 2018			250,000				235,000
Heckler & Koch GmbH, 9.5%, 2018 (z)		EUR	115,000				114,994
Huntington Ingalls Industries, Inc., 7.125%, 2021		$	295,000				319,338
Kratos Defense & Security Solutions, Inc., 10%, 2017			390,000				415,350
						$	1,642,120
Apparel Manufacturers - 1.4%
Hanesbrands, Inc., 8%, 2016		$	165,000			$	183,975
Hanesbrands, Inc., 6.375%, 2020			100,000				108,500
Hanesbrands, Inc., FRN, 4.112%, 2014			65,000				65,082
Jones Group, Inc., 6.875%, 2019			115,000				113,850
Levi Strauss & Co., 6.875%, 2022			40,000				41,500
Phillips-Van Heusen Corp., 7.375%, 2020			335,000				375,200
						$	888,107
Asset-Backed & Securitized - 0.4%
Banc of America Commercial Mortgage, Inc., FRN, 6.438%, 2051 (z)		$	450,000			$	59,445
Citigroup Commercial Mortgage Trust, FRN, 5.888%, 2049			275,000				68,805
G-Force LLC, CDO, “A2”, 4.83%, 2036 (z)			104,441				102,352
JPMorgan Chase Commercial Mortgage Securities Corp., “C”, FRN, 6.246%, 2051			155,000				32,768
						$	263,370
Automotive - 5.5%
Accuride Corp., 9.5%, 2018		$	445,000			$	450,563
Allison Transmission, Inc., 7.125%, 2019 (n)			245,000				259,088
Chrysler Group LLC/CG Co-Issuer, Inc., 8.25%, 2021			200,000				211,000
Ford Motor Co., 7.45%, 2031			165,000				203,775
Ford Motor Credit Co. LLC, 8%, 2014			125,000				138,516
Ford Motor Credit Co. LLC, 12%, 2015			960,000				1,195,200
Ford Motor Credit Co. LLC, 8.125%, 2020			100,000				123,816
General Motors Financial Co., Inc., 4.75%, 2017 (z)			75,000				75,509
General Motors Financial Co., Inc., 6.75%, 2018			215,000				238,380
Goodyear Tire & Rubber Co., 8.25%, 2020			45,000				49,275
Goodyear Tire & Rubber Co., 7%, 2022			85,000				88,400
Jaguar Land Rover PLC, 8.125%, 2021 (n)			345,000				366,563
Lear Corp., 8.125%, 2020			171,000				192,375
						$	3,592,460
Basic Industry - 0.3%
Trimas Corp., 9.75%, 2017		$	172,000			$	191,780
Broadcasting - 6.9%
Allbritton Communications Co., 8%, 2018		$	175,000			$	188,563
AMC Networks, Inc., 7.75%, 2021			136,000				154,020
Clear Channel Communications, Inc., 9%, 2021			223,000				191,223
Clear Channel Worldwide Holdings, Inc., 7.625%, 2020			225,000				218,250
Clear Channel Worldwide Holdings, Inc., “A”, 7.625%, 2020			10,000				9,550
Hughes Network Systems LLC, 7.625%, 2021			215,000				237,575
Inmarsat Finance PLC, 7.375%, 2017 (n)			165,000				179,436
Intelsat Bermuda Ltd., 11.25%, 2017			400,000				420,000

 

1

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Bonds - continued
Broadcasting - continued
Intelsat Bermuda Ltd., 11.5%, 2017 (p)		$	365,000			$	383,250
Intelsat Jackson Holdings Ltd., 11.25%, 2016			163,000				171,555
LBI Media, Inc., 8.5%, 2017 (z)			150,000				34,500
Liberty Media Corp., 8.5%, 2029			215,000				227,900
Liberty Media Corp., 8.25%, 2030			45,000				47,531
Local TV Finance LLC, 9.25%, 2015 (p)(z)			243,809				248,685
Newport Television LLC, 13%, 2017 (n)(p)			173,412				187,718
Nexstar Broadcasting Group, Inc., 8.875%, 2017			80,000				86,000
Sinclair Broadcast Group, Inc., 9.25%, 2017 (n)			125,000				139,063
Sinclair Broadcast Group, Inc., 8.375%, 2018			40,000				43,750
SIRIUS XM Radio, Inc., 13%, 2013 (n)			110,000				122,238
SIRIUS XM Radio, Inc., 8.75%, 2015 (n)			220,000				250,800
SIRIUS XM Radio, Inc., 7.625%, 2018 (n)			235,000				259,675
SIRIUS XM Radio, Inc., 5.25%, 2022 (z)			35,000				35,000
Townsquare Radio LLC, 9%, 2019 (z)			100,000				105,750
Univision Communications, Inc., 6.875%, 2019 (n)			240,000				247,800
Univision Communications, Inc., 7.875%, 2020 (n)			150,000				160,875
Univision Communications, Inc., 8.5%, 2021 (n)			135,000				136,688
						$	4,487,395
Brokerage & Asset Managers - 1.2%
E*TRADE Financial Corp., 7.875%, 2015		$	260,000			$	264,550
E*TRADE Financial Corp., 12.5%, 2017			425,000				485,031
						$	749,581
Building - 2.4%
Building Materials Holding Corp., 6.875%, 2018 (n)		$	240,000			$	257,400
Building Materials Holding Corp., 7%, 2020 (n)			115,000				124,488
Building Materials Holding Corp., 6.75%, 2021 (n)			100,000				109,250
CEMEX S.A., 9.25%, 2020			225,000				219,375
HD Supply, Inc., 8.125%, 2019 (n)			115,000				124,775
Masonite International Corp., 8.25%, 2021 (n)			230,000				240,925
Nortek, Inc., 8.5%, 2021			245,000				260,313
Roofing Supply Group LLC/Roofing Supply Finance, Inc., 10%, 2020 (n)			80,000				85,600
USG Corp., 7.875%, 2020 (n)			110,000				117,013
						$	1,539,139
Business Services - 1.9%
Ceridian Corp., 12.25%, 2015 (p)		$	120,000			$	118,800
Ceridian Corp., 8.875%, 2019 (z)			65,000				69,713
Fidelity National Information Services, Inc., 7.625%, 2017			80,000				88,000
Fidelity National Information Services, Inc., 5%, 2022			105,000				109,200
iGate Corp., 9%, 2016			319,000				345,318
Iron Mountain, Inc., 8.375%, 2021			220,000				243,100
Legend Acquisition Sub, Inc., 10.75%, 2020 (z)			135,000				133,313
SunGard Data Systems, Inc., 10.25%, 2015			47,000				48,116
SunGard Data Systems, Inc., 7.375%, 2018			100,000				106,250
						$	1,261,810
Cable TV - 5.5%
Bresnan Broadband Holdings LLC, 8%, 2018 (n)		$	60,000			$	63,600
CCH II LLC, 13.5%, 2016			285,000				312,075
CCO Holdings LLC, 7.875%, 2018			355,000				385,175
CCO Holdings LLC, 8.125%, 2020			455,000				511,875
CCO Holdings LLC, 7.375%, 2020			75,000				83,250

 

2

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Bonds - continued
Cable TV - continued
Cequel Communications Holdings, 8.625%, 2017 (n)		$	185,000			$	198,644
CSC Holdings LLC, 8.5%, 2014			255,000				280,181
DISH DBS Corp., 6.75%, 2021			175,000				186,375
EchoStar Corp., 7.125%, 2016			160,000				176,000
ONO Finance ll PLC, 10.875%, 2019 (n)			150,000				120,000
Telenet Finance Luxembourg, 6.375%, 2020 (n)		EUR	100,000				130,811
UPC Holding B.V., 9.875%, 2018 (n)		$	100,000				112,250
UPCB Finance III Ltd., 6.625%, 2020 (n)			354,000				374,355
Videotron Ltee, 5%, 2022			115,000				121,900
Virgin Media Finance PLC, 9.5%, 2016			83,000				92,753
Virgin Media Finance PLC, 5.25%, 2022			200,000				209,500
Ziggo Bond Co. B.V., 8%, 2018 (n)		EUR	135,000				186,359
						$	3,545,103
Chemicals - 3.8%
Celanese U.S. Holdings LLC, 6.625%, 2018		$	335,000			$	369,338
Hexion U.S. Finance Corp./Hexion Nova Scotia Finance, 8.875%, 2018			325,000				327,438
Hexion U.S. Finance Corp./Hexion Nova Scotia Finance, 9%, 2020			60,000				51,300
Huntsman International LLC, 8.625%, 2021			235,000				269,075
INEOS Finance PLC, 8.375%, 2019 (n)			200,000				210,500
INEOS Group Holdings PLC, 8.5%, 2016 (n)			160,000				150,800
LyondellBasell Industries N.V., 6%, 2021			275,000				313,500
Momentive Performance Materials, Inc., 12.5%, 2014			330,000				340,313
Momentive Performance Materials, Inc., 11.5%, 2016			260,000				158,600
Polypore International, Inc., 7.5%, 2017			255,000				274,125
						$	2,464,989
Computer Software - 1.8%
Lawson Software, Inc., 11.5%, 2018 (n)		$	355,000			$	404,700
Lawson Software, Inc., 9.375%, 2019 (n)			60,000				64,950
Nuance Communications, Inc., 5.375%, 2020 (z)			95,000				97,138
Syniverse Holdings, Inc., 9.125%, 2019			295,000				318,600
TransUnion Holding Co., Inc., 9.625%, 2018 (n)(p)			100,000				108,500
TransUnion LLC/TransUnion Financing Corp., 11.375%, 2018			150,000				177,000
						$	1,170,888
Computer Software - Systems - 1.7%
Audatex North America, Inc., 6.75%, 2018 (n)		$	140,000			$	150,150
CDW LLC/CDW Finance Corp., 12.535%, 2017			145,000				155,513
CDW LLC/CDW Finance Corp., 8.5%, 2019			370,000				405,150
DuPont Fabros Technology, Inc., REIT, 8.5%, 2017			350,000				386,750
						$	1,097,563
Conglomerates - 1.5%
Amsted Industries, Inc., 8.125%, 2018 (n)		$	375,000			$	405,000
Dynacast International LLC, 9.25%, 2019			200,000				210,000
Griffon Corp., 7.125%, 2018			365,000				382,794
						$	997,794
Consumer Products - 1.4%
Easton-Bell Sports, Inc., 9.75%, 2016		$	145,000			$	158,231
Elizabeth Arden, Inc., 7.375%, 2021			280,000				310,800
FGI Operating Co./FGI Finance, Inc., 7.875%, 2020 (z)			20,000				21,100
Jarden Corp., 7.5%, 2020			295,000				325,975

 

3

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Bonds - continued
Consumer Products - continued
Libbey Glass, Inc., 6.875%, 2020 (n)		$	80,000			$	85,300
Prestige Brands, Inc., 8.125%, 2020			20,000				22,150
						$	923,556
Consumer Services - 1.4%
Service Corp. International, 6.75%, 2015		$	25,000			$	27,310
Service Corp. International, 7%, 2017			785,000				894,900
						$	922,210
Containers - 3.1%
Ardagh Packaging Finance PLC, 7.375%, 2017 (z)		$	200,000			$	214,250
Ardagh Packaging Finance PLC, 9.125%, 2020 (n)			400,000				416,000
Ball Corp., 5%, 2022			134,000				140,700
Consolidated Container Co. LLC/Consolidated Container Finance, Inc., 10.125%, 2020 (z)			90,000				94,050
Greif, Inc., 6.75%, 2017			350,000				380,625
Reynolds Group, 7.75%, 2016			100,000				104,500
Reynolds Group, 7.125%, 2019			225,000				242,438
Reynolds Group, 9.875%, 2019			100,000				105,750
Reynolds Group, 8.25%, 2021			285,000				280,013
						$	1,978,326
Defense Electronics - 0.8%
Ducommun, Inc., 9.75%, 2018		$	186,000			$	194,603
ManTech International Corp., 7.25%, 2018			145,000				152,250
MOOG, Inc., 7.25%, 2018			135,000				143,435
						$	490,288
Electrical Equipment - 0.3%
Avaya, Inc., 9.75%, 2015		$	205,000			$	177,838
Avaya, Inc., 7%, 2019 (n)			45,000				41,175
						$	219,013
Electronics - 1.4%
Freescale Semiconductor, Inc., 9.25%, 2018 (n)		$	465,000			$	503,363
Nokia Corp., 5.375%, 2019			65,000				54,994
Sensata Technologies B.V., 6.5%, 2019 (n)			305,000				321,775
						$	880,132
Energy - Independent - 9.6%
ATP Oil & Gas Corp., 11.875%, 2015 (a)		$	165,000			$	42,900
BreitBurn Energy Partners LP, 8.625%, 2020			85,000				91,375
BreitBurn Energy Partners LP, 7.875%, 2022 (n)			135,000				137,700
Carrizo Oil & Gas, Inc., 8.625%, 2018			160,000				170,800
Chaparral Energy, Inc., 7.625%, 2022 (n)			125,000				132,188
Chesapeake Energy Corp., 6.875%, 2020			155,000				160,813
Concho Resources, Inc., 8.625%, 2017			110,000				121,275
Concho Resources, Inc., 6.5%, 2022			225,000				243,000
Continental Resources, Inc., 8.25%, 2019			180,000				203,400
Denbury Resources, Inc., 8.25%, 2020			270,000				306,450
Energy XXI Gulf Coast, Inc., 9.25%, 2017			295,000				328,925
Everest Acquisition LLC/Everest Acquisition Finance, Inc., 9.375%, 2020 (n)			435,000				473,063
EXCO Resources, Inc., 7.5%, 2018			290,000				263,900
Harvest Operations Corp., 6.875%, 2017			345,000				369,150
Hilcorp Energy I/Hilcorp Finance Co., 8%, 2020 (n)			70,000				77,525
Laredo Petroleum, Inc., 9.5%, 2019			170,000				192,950

 

4

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Bonds - continued
Energy - Independent - continued
LINN Energy LLC, 6.5%, 2019 (n)		$	100,000			$	99,500
LINN Energy LLC, 8.625%, 2020			55,000				59,400
LINN Energy LLC, 7.75%, 2021			209,000				217,883
Newfield Exploration Co., 6.875%, 2020			335,000				365,986
OGX Petroleo e Gas Participacoes S.A., 8.5%, 2018 (n)			357,000				316,838
Plains Exploration & Production Co., 8.625%, 2019			175,000				198,188
QEP Resources, Inc., 6.875%, 2021			410,000				463,300
Range Resources Corp., 8%, 2019			185,000				204,425
Range Resources Corp., 5%, 2022			60,000				62,475
Samson Investment Co., 9.75%, 2020 (z)			60,000				61,800
SandRidge Energy, Inc., 8%, 2018 (n)			425,000				443,060
SM Energy Co., 6.5%, 2021			170,000				177,650
Whiting Petroleum Corp., 6.5%, 2018			215,000				231,394
						$	6,217,313
Energy - Integrated - 0.2%
Pacific Rubiales Energy Corp., 7.25%, 2021 (n)		$	100,000			$	116,000
Engineering - Construction - 0.3%
B-Corp. Merger Sub, Inc., 8.25%, 2019 (n)		$	185,000			$	184,075
Entertainment - 1.7%
AMC Entertainment, Inc., 8.75%, 2019		$	210,000			$	229,950
AMC Entertainment, Inc., 9.75%, 2020			210,000				232,050
Cedar Fair LP, 9.125%, 2018			115,000				130,525
Cinemark USA, Inc., 8.625%, 2019			380,000				425,600
NAI Entertainment Holdings LLC, 8.25%, 2017 (n)			81,000				90,315
						$	1,108,440
Financial Institutions - 7.6%
Ally Financial, Inc., 5.5%, 2017		$	595,000			$	618,864
CIT Group, Inc., 5.25%, 2014 (n)			510,000				529,763
CIT Group, Inc., 7%, 2017 (n)			147,806				147,954
CIT Group, Inc., 5.25%, 2018			225,000				234,563
CIT Group, Inc., 6.625%, 2018 (n)			319,000				346,514
CIT Group, Inc., 5.5%, 2019 (n)			280,000				291,900
Credit Acceptance Corp., 9.125%, 2017			225,000				247,500
GMAC, Inc., 8%, 2031			35,000				41,388
Icahn Enterprises LP, 8%, 2018 (z)			40,000				42,600
Icahn Enterprises LP, 8%, 2018			323,000				343,995
International Lease Finance Corp., 4.875%, 2015			105,000				107,756
International Lease Finance Corp., 8.625%, 2015			80,000				89,700
International Lease Finance Corp., 7.125%, 2018 (n)			246,000				282,900
Nationstar Mortgage LLC/Capital Corp., 10.875%, 2015			465,000				508,013
PHH Corp., 9.25%, 2016			265,000				292,163
PHH Corp., 7.375%, 2019			70,000				72,275
SLM Corp., 8.45%, 2018			125,000				144,375
SLM Corp., 8%, 2020			460,000				520,950
SLM Corp., 7.25%, 2022			55,000				59,400
						$	4,922,573
Food & Beverages - 2.5%
ARAMARK Corp., 8.5%, 2015		$	430,000			$	440,754
B&G Foods, Inc., 7.625%, 2018			295,000				319,891
Constellation Brands, Inc., 7.25%, 2016			180,000				205,200

 

5

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Bonds - continued
Food & Beverages - continued
JBS USA LLC/JBS USA Finance, 8.25%, 2020 (n)		$	110,000			$	105,050
Pinnacle Foods Finance LLC, 9.25%, 2015			250,000				256,560
Pinnacle Foods Finance LLC, 8.25%, 2017			50,000				53,000
TreeHouse Foods, Inc., 7.75%, 2018			215,000				234,350
						$	1,614,805
Forest & Paper Products - 1.4%
Boise, Inc., 8%, 2020		$	225,000			$	248,625
Georgia-Pacific Corp., 8%, 2024			19,000				25,961
Graphic Packaging Holding Co., 7.875%, 2018			125,000				139,375
Millar Western Forest Products Ltd., 8.5%, 2021			40,000				29,200
Smurfit Kappa Group PLC, 7.75%, 2019 (n)		EUR	120,000				165,275
Tembec Industries, Inc., 11.25%, 2018		$	80,000				83,200
Tembec Industries, Inc., 11.25%, 2018 (n)			15,000				15,600
Xerium Technologies, Inc., 8.875%, 2018			215,000				186,510
						$	893,746
Gaming & Lodging - 4.8%
Caesars Operating Escrow LLC, 8.5%, 2020 (n)		$	60,000			$	59,175
Choice Hotels International, Inc., 5.75%, 2022			40,000				42,900
Fontainebleau Las Vegas Holdings LLC, 10.25%, 2015 (a)(d)(n)			695,000				434
GWR Operating Partnership LLP, 10.875%, 2017			135,000				152,213
Harrah’s Operating Co., Inc., 11.25%, 2017			470,000				506,425
Host Hotels & Resorts, Inc., 5.25%, 2022 (n)			100,000				106,875
Isle of Capri Casinos, Inc., 8.875%, 2020 (z)			205,000				210,638
MGM Mirage, 10.375%, 2014			40,000				45,400
MGM Mirage, 6.625%, 2015			70,000				72,975
MGM Mirage, 7.5%, 2016			35,000				36,531
MGM Resorts International, 11.375%, 2018			405,000				466,763
MGM Resorts International, 9%, 2020			170,000				189,763
Penn National Gaming, Inc., 8.75%, 2019			357,000				398,501
Pinnacle Entertainment, Inc., 8.75%, 2020			85,000				93,288
Rivers Pittsburgh Borrower LP/Rivers Pittsburgh Finance Corp., 9.5%, 2019 (n)			40,000				42,400
Seven Seas Cruises S. DE R.L., 9.125%, 2019			265,000				275,600
Wyndham Worldwide Corp., 6%, 2016			1,000				1,116
Wyndham Worldwide Corp., 7.375%, 2020			105,000				126,060
Wynn Las Vegas LLC, 7.75%, 2020			245,000				273,788
						$	3,100,845
Industrial - 1.5%
Altra Holdings, Inc., 8.125%, 2016		$	103,000			$	110,468
Dematic S.A., 8.75%, 2016 (z)			200,000				213,000
Hyva Global B.V., 8.625%, 2016 (n)			200,000				172,000
Mueller Water Products, Inc., 8.75%, 2020			142,000				158,330
Rexel S.A., 6.125%, 2019 (n)			200,000				205,000
SPL Logistics Escrow, LLC, 8.875%, 2020 (z)			115,000				118,450
						$	977,248
Insurance - 2.8%
American International Group, Inc., 8.25%, 2018		$	170,000			$	214,475
American International Group, Inc., 8.175% to 2038, FRN to 2068			715,000				853,531
MetLife, Inc., 9.25% to 2038, FRN to 2068 (n)			600,000				765,000
						$	1,833,006

 

6

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Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Bonds - continued
Insurance - Health - 0.2%
AMERIGROUP Corp., 7.5%, 2019		$	110,000			$	128,150
Insurance - Property & Casualty - 1.4%
Liberty Mutual Group, Inc., 10.75% to 2038, FRN to 2088 (n)		$	330,000			$	461,175
XL Group PLC, 6.5% to 2017, FRN to 2049			490,000				446,510
						$	907,685
Machinery & Tools - 2.4%
Case Corp., 7.25%, 2016		$	90,000			$	101,250
Case New Holland, Inc., 7.875%, 2017			525,000				616,875
CNH Capital LLC, 6.25%, 2016 (n)			65,000				70,525
H&E Equipment Services LLC, 7%, 2022 (z)			85,000				88,188
NESCO LLC/NESCO Holdings Corp., 11.75%, 2017 (z)			180,000				189,000
RSC Equipment Rental, Inc., 8.25%, 2021			240,000				262,800
UR Financing Escrow Corp., 5.75%, 2018 (n)			115,000				121,613
UR Financing Escrow Corp., 7.625%, 2022 (n)			117,000				126,360
						$	1,576,611
Major Banks - 1.0%
Bank of America Corp., 5.65%, 2018		$	175,000			$	195,506
Royal Bank of Scotland Group PLC, 6.99% to 2017, FRN to 2049 (a)(d)(n)			100,000				84,000
Royal Bank of Scotland Group PLC, 7.648% to 2031, FRN to 2049			365,000				343,100
						$	622,606
Medical & Health Technology & Services - 7.0%
Biomet, Inc., 11.625%, 2017		$	435,000			$	464,906
Biomet, Inc., 6.5%, 2020 (z)			60,000				62,250
Davita, Inc., 6.375%, 2018			505,000				539,088
Davita, Inc., 6.625%, 2020			145,000				154,788
Fresenius Medical Care AG & Co. KGaA, 9%, 2015 (n)			165,000				189,956
Fresenius Medical Care Capital Trust III, 5.625%, 2019 (n)			170,000				181,688
HCA, Inc., 8.5%, 2019			710,000				800,525
HCA, Inc., 7.5%, 2022			185,000				205,813
HCA, Inc., 5.875%, 2022			85,000				90,419
HealthSouth Corp., 8.125%, 2020			425,000				466,969
Hologic, Inc., 6.25%, 2020 (z)			40,000				42,350
IASIS Healthcare LLC/IASIS Capital Corp., 8.375%, 2019			190,000				181,213
Physio-Control International, Inc., 9.875%, 2019 (z)			135,000				145,800
Select Medical Corp., 7.625%, 2015			26,000				26,341
Teleflex, Inc., 6.875%, 2019			275,000				294,250
Tenet Healthcare Corp., 9.25%, 2015			140,000				156,450
Truven Health Analytics, Inc., 10.625%, 2020 (z)			80,000				85,400
Universal Health Services, Inc., 7%, 2018			130,000				140,400
Universal Hospital Services, Inc., 7.625%, 2020 (z)			185,000				194,713
Vanguard Health Systems, Inc., 0%, 2016			2,000				1,415
Vanguard Health Systems, Inc., 8%, 2018			105,000				110,250
						$	4,534,984
Metals & Mining - 2.8%
Arch Coal, Inc., 7.25%, 2020		$	160,000			$	144,800
Cloud Peak Energy, Inc., 8.25%, 2017			445,000				482,825
Cloud Peak Energy, Inc., 8.5%, 2019			160,000				177,600
Consol Energy, Inc., 8%, 2017			170,000				183,175
Consol Energy, Inc., 8.25%, 2020			110,000				118,525
Fortescue Metals Group Ltd., 8.25%, 2019 (n)			75,000				74,625

 

7

---

Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Bonds - continued
Metals & Mining - continued
Peabody Energy Corp., 7.375%, 2016		$	350,000			$	391,125
Peabody Energy Corp., 6%, 2018 (n)			110,000				112,475
Peabody Energy Corp., 6.25%, 2021 (n)			110,000				111,925
						$	1,797,075
Natural Gas - Distribution - 0.7%
AmeriGas Finance LLC, 6.75%, 2020		$	220,000			$	234,300
Ferrellgas LP/Ferrellgas Finance Corp., 6.5%, 2021			230,000				225,400
						$	459,700
Natural Gas - Pipeline - 3.6%
Atlas Pipeline Partners LP, 8.75%, 2018		$	280,000			$	300,300
Colorado Interstate Gas Co., 6.8%, 2015			91,000				105,685
Crosstex Energy, Inc., 8.875%, 2018			270,000				288,225
El Paso Corp., 7%, 2017			185,000				211,605
El Paso Corp., 7.75%, 2032			395,000				465,058
Energy Transfer Equity LP, 7.5%, 2020			290,000				333,500
Enterprise Products Partners LP, 8.375% to 2016, FRN to 2066			249,000				278,880
Enterprise Products Partners LP, 7.034% to 2018, FRN to 2068			67,000				75,040
MarkWest Energy Partners LP, 5.5%, 2023			170,000				173,825
Rockies Express Pipeline LLC, 5.625%, 2020 (n)			88,000				84,040
						$	2,316,158
Network & Telecom - 2.3%
Centurylink, Inc., 7.65%, 2042		$	80,000			$	83,401
Citizens Communications Co., 9%, 2031			110,000				115,500
Eileme 2 AB, 11.625%, 2020 (n)			200,000				219,000
Frontier Communications Corp., 8.125%, 2018			225,000				250,313
Qwest Communications International, Inc., 7.125%, 2018 (n)			315,000				335,003
Qwest Corp., 7.5%, 2014			145,000				162,318
Windstream Corp., 8.125%, 2018			45,000				47,925
Windstream Corp., 7.75%, 2020			235,000				246,750
						$	1,460,210
Oil Services - 1.3%
Chesapeake Energy Corp., 6.625%, 2019 (n)		$	85,000			$	81,600
Dresser-Rand Group, Inc., 6.5%, 2021			80,000				84,000
Edgen Murray Corp., 12.25%, 2015			220,000				233,750
Pioneer Energy Services Corp., 9.875%, 2018			200,000				216,500
Unit Corp., 6.625%, 2021			135,000				137,025
Unit Corp., 6.625%, 2021 (z)			85,000				86,275
						$	839,150
Other Banks & Diversified Financials - 2.2%
Capital One Financial Corp., 10.25%, 2039		$	560,000			$	576,800
Groupe BPCE S.A., 12.5% to 2019, FRN to 2049 (n)			125,000				134,533
LBG Capital No. 1 PLC, 7.875%, 2020 (n)			210,000				203,162
Santander UK PLC, 8.963% to 2030, FRN to 2049			478,000				489,950
						$	1,404,445
Pharmaceuticals - 1.2%
Capsugel FinanceCo. SCA, 9.875%, 2019 (n)		EUR	200,000			$	281,118
Endo Health Solutions, Inc., 7%, 2019		$	205,000				221,400
Valeant Pharmaceuticals International, Inc., 6.5%, 2016 (n)			65,000				68,575
Valeant Pharmaceuticals International, Inc., 7%, 2020 (n)			180,000				186,300
						$	757,393

 

8

---

Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Bonds - continued
Pollution Control - 0.2%
Heckmann Corp., 9.875%, 2018		$	110,000			$	103,950
Printing & Publishing - 0.5%
American Media, Inc., 13.5%, 2018 (z)		$	28,207			$	26,726
Nielsen Finance LLC, 11.5%, 2016			97,000				108,640
Nielsen Finance LLC, 7.75%, 2018			165,000				185,625
						$	320,991
Railroad & Shipping - 0.1%
Kansas City Southern de Mexico S.A. de C.V., 6.125%, 2021		$	90,000			$	100,800
Real Estate - 1.4%
CB Richard Ellis Group, Inc., 11.625%, 2017		$	180,000			$	202,500
CNL Lifestyle Properties, Inc., REIT, 7.25%, 2019			80,000				74,500
Entertainment Properties Trust, REIT, 7.75%, 2020			200,000				222,819
Entertainment Properties Trust, REIT, 5.75%, 2022			50,000				50,473
Kennedy Wilson, Inc., 8.75%, 2019			75,000				79,686
MPT Operating Partnership LP, REIT, 6.875%, 2021			150,000				163,125
MPT Operating Partnership LP, REIT, 6.375%, 2022			85,000				89,675
						$	882,778
Retailers - 3.7%
Academy Ltd., 9.25%, 2019 (n)		$	95,000			$	104,025
Burlington Coat Factory Warehouse Corp., 10%, 2019			210,000				226,275
J. Crew Group, Inc., 8.125%, 2019			145,000				151,706
Limited Brands, Inc., 6.9%, 2017			125,000				142,186
Limited Brands, Inc., 6.95%, 2033			175,000				174,125
Neiman Marcus Group, Inc., 10.375%, 2015			255,000				261,696
Pantry, Inc., 8.375%, 2020 (z)			100,000				103,375
QVC, Inc., 7.375%, 2020 (n)			125,000				139,284
Rite Aid Corp., 9.25%, 2020			185,000				190,086
Sally Beauty Holdings, Inc., 6.875%, 2019			110,000				122,925
Toys “R” Us Property Co. II LLC, 8.5%, 2017			330,000				357,225
Toys “R” Us, Inc., 10.75%, 2017			280,000				308,700
Yankee Acquisition Corp., 8.5%, 2015			2,000				2,031
YCC Holdings LLC/Yankee Finance, Inc., 10.25%, 2016 (p)			90,000				93,713
						$	2,377,352
Specialty Chemicals - 0.1%
Koppers, Inc., 7.875%, 2019		$	70,000			$	76,475
Specialty Stores - 0.4%
Gymboree Corp., 9.125%, 2018		$	30,000			$	28,500
Michaels Stores, Inc., 11.375%, 2016			125,000				131,406
Michaels Stores, Inc., 7.75%, 2018			105,000				111,825
						$	271,731
Supermarkets - 0.1%
SUPERVALU, Inc., 7.5%, 2014		$	70,000			$	67,200
Telecommunications - Wireless - 4.7%
Clearwire Corp., 12%, 2015 (n)		$	175,000			$	173,250
Cricket Communications, Inc., 7.75%, 2016			135,000				142,425
Cricket Communications, Inc., 7.75%, 2020			220,000				213,400
Crown Castle International Corp., 9%, 2015			215,000				232,469

 

9

---

Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Bonds - continued
Telecommunications - Wireless - continued
Crown Castle International Corp., 7.125%, 2019		$	345,000			$	375,188
Digicel Group Ltd., 8.25%, 2017 (n)			235,000				249,100
Digicel Group Ltd., 10.5%, 2018 (n)			100,000				108,000
MetroPCS Wireless, Inc., 7.875%, 2018			90,000				96,750
Sprint Capital Corp., 6.875%, 2028			140,000				126,700
Sprint Nextel Corp., 6%, 2016			260,000				265,200
Sprint Nextel Corp., 8.375%, 2017			310,000				341,000
Sprint Nextel Corp., 9%, 2018 (n)			100,000				118,000
Wind Acquisition Finance S.A., 11.75%, 2017 (n)			250,000				228,750
Wind Acquisition Finance S.A., 7.25%, 2018 (n)			410,000				377,200
						$	3,047,432
Telephone Services - 0.6%
Cogent Communications Group, Inc., 8.375%, 2018 (n)		$	100,000			$	108,750
Level 3 Financing, Inc., 9.375%, 2019			155,000				169,725
Level 3 Financing, Inc., 8.625%, 2020			80,000				85,600
						$	364,075
Transportation - 0.2%
Navios South American Logistics, Inc., 9.25%, 2019		$	146,000			$	135,050
Transportation - Services - 3.8%
ACL I Corp., 10.625%, 2016 (p)		$	199,604			$	189,796
Aguila American Resources Ltd., 7.875%, 2018 (n)			300,000				316,125
Atlas Airlines, Inc. Pass-Through Certificates, “B”, 7.68%, 2014			77,344				73,864
Avis Budget Car Rental LLC, 8.25%, 2019			80,000				86,400
Avis Budget Car Rental LLC, 8.25%, 2019 (n)			50,000				54,000
Avis Budget Car Rental LLC, 9.75%, 2020			95,000				106,994
CEVA Group PLC, 8.375%, 2017 (n)			290,000				282,025
Commercial Barge Line Co., 12.5%, 2017			355,000				397,600
Navios Maritime Acquisition Corp., 8.625%, 2017			260,000				243,750
Navios Maritime Holdings, Inc., 8.875%, 2017			125,000				127,344
Navios Maritime Holdings, Inc., 8.875%, 2017 (z)			60,000				60,525
Swift Services Holdings, Inc., 10%, 2018			470,000				515,825
						$	2,454,248
Utilities - Electric Power - 6.2%
AES Corp., 8%, 2017		$	390,000			$	455,325
Atlantic Power Corp., 9%, 2018			130,000				135,850
Calpine Corp., 8%, 2016 (n)			415,000				448,719
Calpine Corp., 7.875%, 2020 (n)			215,000				241,875
Covanta Holding Corp., 7.25%, 2020			220,000				245,541
Covanta Holding Corp., 6.375%, 2022			70,000				76,536
Dolphin Subsidiary ll, Inc., 7.25%, 2021 (n)			135,000				153,900
Edison Mission Energy, 7%, 2017			155,000				81,375
EDP Finance B.V., 6%, 2018 (n)			315,000				299,124
Energy Future Holdings Corp., 10%, 2020			270,000				297,675
Energy Future Holdings Corp., 10%, 2020			515,000				578,088
Energy Future Holdings Corp., 11.75%, 2022 (n)			160,000				170,400
GenOn Energy, Inc., 9.875%, 2020			375,000				411,094
NRG Energy, Inc., 7.375%, 2017			105,000				109,200
NRG Energy, Inc., 8.25%, 2020			200,000				215,500
Texas Competitive Electric Holdings Co. LLC, 11.5%, 2020 (n)			125,000				100,625
						$	4,020,827
Total Bonds						$	81,300,751

 

10

---

Portfolio of Investments (unaudited) – continued

 

Issuer		Shares/Par				Value ($)
Preferred Stocks - 0.4%
Other Banks & Diversified Financials - 0.4%
Ally Financial, Inc., 7% (z)			100			$	91,059
GMAC Capital Trust I, 8.125%			5,675				140,854
Total Preferred Stocks						$	231,913
Convertible Bonds - 0.4%
Network & Telecom - 0.4%
Nortel Networks Corp., 2.125%, 2014 (a)(d)		$	260,000			$	255,450
Common Stocks - 0.2%
Automotive - 0.0%
Accuride Corp. (a)			4,099			$	20,577
Broadcasting - 0.1%
New Young Broadcasting Holding Co., Inc. (a)			30			$	87,000
Printing & Publishing - 0.1%
American Media Operations, Inc. (a)			7,229			$	38,241
Total Common Stocks						$	145,818
Floating Rate Loans (g)(r) - 0.2%
Financial Institutions - 0.1%
Springleaf Finance Corp., Term Loan, 5.5%, 2017		$	80,705			$	77,751
Utilities - Electric Power - 0.1%
Dynegy Midwest Generation LLC, Term Loan, 9.25%, 2016		$	22,956			$	23,752
Dynegy Power LLC, Term Loan, 9.25%, 2016			34,435				35,984
						$	59,736
Total Floating Rate Loans						$	137,487
Convertible Preferred Stocks - 0.2%
Automotive - 0.2%
General Motors Co., 4.75%			2,910			$	103,887

		Strike Price				First Exercise
Warrants - 0.1%
Broadcasting - 0.1%
New Young Broadcasting Holding Co., Inc. (1 share for 1 warrant) (a)		$	0.01				7/24/10				27			$	78,300
Money Market Funds - 4.4%
MFS Institutional Money Market Portfolio, 0.16%, at Net Asset Value (v)											2,845,059			$	2,845,059
Total Investments														$	85,098,665
Other Assets, Less Liabilities - (31.6)%															(20,416,765	)
Net Assets - 100.0%														$	64,681,900

 

(a)	Non-income producing security.

(d)	In default. Interest and/or scheduled principal payment(s) have been missed.

(g)	The rate shown represents a weighted average coupon rate on settled positions at period end, unless otherwise indicated.

(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 $20,081,994 representing 31.0% of net assets.

(p)	Payment-in-kind security.

 

11

---

Portfolio of Investments (unaudited) – continued

 

(r)

Remaining maturities of floating rate loans may be less than stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty. These loans may be subject to restrictions on resale. Floating rate loans generally have rates of interest which are determined periodically by reference to a base lending rate plus a premium.

(v)	Underlying affiliated fund 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.

(z)

Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities:

 

Restricted Securities		Acquisition Date		Cost				Value
Ally Financial, Inc., 7% (Preferred Stock)		4/13/11-4/14/11			$93,750				$91,059
American Media, Inc., 13.5%, 2018		12/22/10			28,590				26,726
Ardagh Packaging Finance PLC, 7.375%, 2017		7/23/12			211,062				214,250
Banc of America Commercial Mortgage, Inc., FRN, 6.438%, 2051		6/19/08			329,651				59,445
Biomet, Inc., 6.5%, 2020		7/25/12			60,000				62,250
Ceridian Corp., 8.875%, 2019		6/28/12			65,000				69,713
Consolidated Container Co. LLC/Consolidated Container Finance, Inc., 10.125%, 2020		6/28/12-7/17/12			90,983				94,050
Dematic S.A., 8.75%, 2016		4/19/11			202,311				213,000
FGI Operating Co./FGI Finance, Inc., 7.875%, 2020		4/12/12			20,000				21,100
G-Force LLC, CDO, “A2”, 4.83%, 2036		1/20/11			101,455				102,352
General Motors Financial Co., Inc., 4.75%, 2017		8/13/12			75,000				75,509
H&E Equipment Services LLC, 7%, 2022		8/10/12			$85,561				$88,188
Heckler & Koch GmbH, 9.5%, 2018		5/10/11			162,889				114,994
Hologic, Inc., 6.25%, 2020		7/19/12			40,000				42,350
Icahn Enterprises LP, 8%, 2018		7/09/12			42,153				42,600
Isle of Capri Casinos, Inc., 8.875%, 2020		7/26/12-8/30/12			209,639				210,638
LBI Media, Inc., 8.5%, 2017		7/18/07			148,525				34,500
Legend Acquisition Sub, Inc., 10.75%, 2020		8/14/12			133,243				133,313
Local TV Finance LLC, 9.25%, 2015		5/02/07-2/16/11			245,288				248,685
NESCO LLC/NESCO Holdings Corp., 11.75%, 2017		4/05/12-8/30/12			180,258				189,000
Navios Maritime Holdings, Inc., 8.875%, 2017		6/27/12			60,000				60,525
Nuance Communications, Inc., 5.375%, 2020		8/09/12			95,000				97,138
Pantry, Inc., 8.375%, 2020		7/25/12			100,000				103,375
Physio-Control International, Inc., 9.875%, 2019		1/13/12-1/30/12			136,762				145,800
SIRIUS XM Radio, Inc., 5.25%, 2022		8/08/12			35,000				35,000
SPL Logistics Escrow, LLC, 8.875%, 2020		7/24/12			115,000				118,450
Samson Investment Co., 9.75%, 2020		8/20/12			61,945				61,800
Townsquare Radio LLC, 9%, 2019		3/30/12			99,043				105,750
Truven Health Analytics, Inc., 10.625%, 2020		5/24/12-6/15/12			81,085				85,400
Unit Corp., 6.625%, 2021		7/12/12			83,947				86,275
Universal Hospital Services, Inc., 7.625%, 2020		7/24/12			185,000				194,713
Total Restricted Securities									$3,227,948
% of Net assets									5%

The following abbreviations are used in this report and are defined:

 

CDO		Collateralized Debt Obligation
FRN		Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end.
PLC		Public Limited Company
REIT		Real Estate Investment Trust

 

12

---

Portfolio of Investments (unaudited) – continued

 

Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless otherwise indicated. A list of abbreviations is shown below:

 

EUR		Euro

Derivative Contracts at 8/31/12

Forward Foreign Currency Exchange Contracts at 8/31/12

 

		Type				Currency		Counterparty		Contracts to Deliver/Receive		Settlement Date Range				In Exchange For				Contracts at Value				Net Unrealized Appreciation (Depreciation)
Liability Derivatives
			SELL			EUR		Goldman Sachs International		338,270			10/12/12			$	413,812			$	425,642			$	(11,830	)
			SELL			EUR		UBS AG		338,270			10/12/12				414,006				425,642				(11,636	)
																								$	(23,466	)

See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.

 

13

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Supplemental Information

8/31/12 (unaudited)

(1) Investment Valuations

Debt instruments and floating rate loans (other than short-term instruments), including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Equity securities, including restricted equity securities, are generally valued at the last sale or official closing price as provided by a third-party pricing service on the market or exchange on which they are primarily traded. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation as provided by a third-party pricing service on the market or exchange on which such securities are primarily traded. Short-term instruments with a maturity at issuance of 60 days or less generally are valued at amortized cost, which approximates market value. Forward foreign currency exchange contracts are generally valued at the mean of bid and asked prices for the time period interpolated from rates provided by a third-party pricing service for proximate time periods. Open-end investment companies are generally valued at net asset value per share. Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. Values obtained from third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data. The values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and asked prices for rates provided by a third-party pricing service.

The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under the fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the halting of trading of a specific security where trading does not resume prior to the close of the exchange or market on which the security is principally traded. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.

Various inputs are used in determining the value of the fund’s assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments not reflected in total investments, such as forward foreign currency exchange contracts. The following is a summary of the levels used as of August 31, 2012 in valuing the fund’s assets or liabilities:

 

Investments at Value		Level 1				Level 2				Level 3				Total
Equity Securities			$265,318				$256,359				$38,241				$559,918
Corporate Bonds			—				69,896,038				—				69,896,038
Commercial Mortgage-Backed Securities			—				161,018				—				161,018
Asset-Backed Securities (including CDOs)			—				102,352				—				102,352
Foreign Bonds			—				11,396,793				—				11,396,793
Floating Rate Loans			—				137,487				—				137,487
Mutual Funds			2,845,059				—				—				2,845,059
Total Investments			$3,110,377				$81,950,047				$38,241				$85,098,665
Other Financial Instruments
Forward Foreign Currency Exchange Contracts			$—				$(23,466	)			$—				$(23,466	)

For further information regarding security characteristics, see the Portfolio of Investments.

 

14

---

Supplemental Information (unaudited) – continued

 

The following is a reconciliation of level 3 assets for which significant unobservable inputs were used to determine fair value. The fund’s policy is to recognize transfers between the levels as of the end of the period. The table presents the activity of level 3 securities held at the beginning and the end of the period.

 

		Equity Securities
Balance as of 11/30/11			$85,953
Change in unrealized appreciation (depreciation)			(47,712	)
Balance as of 8/31/12			$38,241

The net change in unrealized appreciation (depreciation) from investments still held as level 3 at August 31, 2012 is $(47,712).

(2) Portfolio Securities

The cost and unrealized appreciation and depreciation in the value of the investments owned by the fund, as computed on a federal income tax basis, are as follows:

 

Aggregate cost			$82,720,432
Gross unrealized appreciation			4,699,204
Gross unrealized depreciation			(2,320,971	)
Net unrealized appreciation (depreciation)			$2,378,233

The aggregate cost above includes prior fiscal year end tax adjustments, if applicable.

(3) Transactions in Underlying Affiliated Funds – 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 fund assumes the following to be an affiliated issuer:

 

Underlying Affiliated Fund		Beginning Shares/Par Amount				Acquisitions Shares/Par Amount				Dispositions Shares/Par Amount				Ending Shares/Par Amount
MFS Institutional Money Market Portfolio			961,314				16,713,429				(14,829,684	)			2,845,059
Underlying Affiliated Fund		Realized Gain (Loss)				Capital Gain Distributions				Dividend Income				Ending Value
MFS Institutional Money Market Portfolio			$—				$—				$2,498				$2,845,059

 

15

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ITEM 2.

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 Form N-Q, 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 registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 3.

EXHIBITS.

File as exhibits as part of this Form 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.

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Notice

A copy of the Agreement and 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.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: MFS INTERMEDIATE HIGH INCOME FUND

 

By (Signature and Title)*		JOHN M. CORCORAN
		John M. Corcoran, President

Date: October 17, 2012

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)*		JOHN M. CORCORAN
		John M. Corcoran, President (Principal Executive Officer)

Date: October 17, 2012

 

By (Signature and Title)*		DAVID L. DILORENZO
		David L. DiLorenzo, Treasurer (Principal Financial Officer and Accounting Officer)

Date: October 17, 2012

 

*	Print name and title of each signing officer under his or her signature.