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 811-5822
MFS CHARTER INCOME TRUST
(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, 2009
| ITEM 1. | SCHEDULE OF INVESTMENTS. |
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/09
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – 99.9% |
||||||
| Aerospace – 0.4% |
||||||
| Bombardier, Inc., 6.3%, 2014 (n) |
$ | 1,200,000 | $ | 1,110,000 | ||
| Hawker Beechcraft Acquisition Co. LLC, 8.5%, 2015 |
804,000 | 526,620 | ||||
| TransDigm Group, Inc., 7.75%, 2014 |
390,000 | 387,075 | ||||
| $ | 2,023,695 | |||||
| Airlines – 0.4% |
||||||
| American Airlines Pass-Through Trust, 6.817%, 2011 |
$ | 240,000 | $ | 206,400 | ||
| American Airlines, Inc., 10.375%, 2019 |
290,000 | 304,500 | ||||
| AMR Corp., 7.858%, 2013 |
1,110,000 | 1,060,050 | ||||
| Continental Airlines, Inc., 7.339%, 2014 |
431,000 | 334,025 | ||||
| Delta Air Lines, Inc., 7.111%, 2013 |
250,000 | 241,250 | ||||
| $ | 2,146,225 | |||||
| Apparel Manufacturers – 0.1% |
||||||
| Levi Strauss & Co., 9.75%, 2015 |
$ | 310,000 | $ | 316,975 | ||
| Asset Backed & Securitized – 6.9% |
||||||
| Asset Securitization Corp., FRN, 8.63%, 2029 |
$ | 729,589 | $ | 805,683 | ||
| Banc of America Commercial Mortgage, Inc., FRN, 6.354%, 2051 |
6,000,000 | 5,072,369 | ||||
| Bayview Financial Acquisition Trust, FRN, 5.483%, 2041 |
404,000 | 333,863 | ||||
| Bayview Financial Revolving Mortgage Loan Trust, FRN, 1.085%, 2040 (z) |
1,160,000 | 483,836 | ||||
| Citigroup/Deutsche Bank Commercial Mortgage Trust, FRN, 5.366%, 2049 |
1,605,000 | 1,013,376 | ||||
| Commercial Mortgage Pass-Through Certificates, FRN, 5.985%, 2046 |
230,000 | 168,221 | ||||
| Countrywide Asset-Backed Certificates, FRN, 5.147%, 2035 |
2,000,000 | 1,444,879 | ||||
| Credit Suisse Mortgage Capital Certificate, 5.343%, 2039 |
1,080,744 | 736,003 | ||||
| Crest Ltd., CDO, 7%, 2040 |
2,000,000 | 150,000 | ||||
| CWCapital LLC, 5.223%, 2048 |
5,839,000 | 4,685,629 | ||||
| DLJ Commercial Mortgage Corp., 6.04%, 2031 (z) |
2,000,000 | 1,955,511 | ||||
| First Union-Lehman Brothers Bank of America, FRN, 0.569%, 2035 (i) |
20,952,762 | 338,483 | ||||
| First Union-Lehman Brothers Commercial Mortgage Trust, 7%, 2029 (n) |
552,421 | 571,573 | ||||
| Greenwich Capital Commercial Funding Corp., FRN, 6.116%, 2038 |
4,839,456 | 4,225,979 | ||||
| GS Mortgage Securities Corp., 5.56%, 2039 |
1,000,000 | 878,157 | ||||
| JPMorgan Chase Commercial Mortgage Securities Corp., 5.429%, 2043 |
6,000,000 | 5,393,184 | ||||
| JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 6.006%, 2049 |
1,000,000 | 912,686 | ||||
| JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 6.26%, 2051 |
185,000 | 39,692 | ||||
| Merrill Lynch Mortgage Trust, FRN, 6.022%, 2050 |
185,000 | 39,120 | ||||
| Mortgage Capital Funding, Inc., FRN, 2.47%, 2031 (i)(t) |
324,151 | 583 | ||||
| New Century Home Equity Loan Trust, FRN, 4.532%, 2035 |
1,052,513 | 1,036,491 | ||||
| PNC Mortgage Acceptance Corp., FRN, 7.1%, 2032 (z) |
2,510,000 | 2,429,050 | ||||
| Spirit Master Funding LLC, 5.05%, 2023 (z) |
1,614,601 | 986,112 | ||||
| Structured Asset Securities Corp., FRN, 4.67%, 2035 |
796,909 | 673,211 | ||||
| Wachovia Bank Commercial Mortgage Trust, FRN, 5.883%, 2047 |
1,503,155 | 247,774 | ||||
| $ | 34,621,465 | |||||
| Automotive – 1.8% |
||||||
| Accuride Corp., 8.5%, 2015 (d) |
$ | 780,000 | $ | 156,000 | ||
| Allison Transmission, Inc., 11%, 2015 (n) |
2,275,000 | 2,047,500 | ||||
| FCE Bank PLC, 7.125%, 2012 |
EUR | 2,400,000 | 3,099,064 | |||
| Ford Motor Credit Co. LLC, 9.75%, 2010 |
$ | 955,000 | 964,239 | |||
| Ford Motor Credit Co. LLC, 12%, 2015 |
1,543,000 | 1,606,345 | ||||
| Ford Motor Credit Co. LLC, 8%, 2016 |
250,000 | 219,036 | ||||
| Goodyear Tire & Rubber Co., 9%, 2015 |
880,000 | 893,200 | ||||
| Goodyear Tire & Rubber Co., 10.5%, 2016 |
200,000 | 213,500 | ||||
| $ | 9,198,884 | |||||
| Broadcasting – 1.8% |
||||||
| Allbritton Communications Co., 7.75%, 2012 |
$ | 2,085,000 | $ | 1,782,675 | ||
| Clear Channel Communications, Inc., 10.75%, 2016 |
280,000 | 121,800 | ||||
| Intelsat Jackson Holdings Ltd., 9.5%, 2016 |
2,185,000 | 2,245,087 | ||||
1
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Broadcasting – continued |
||||||
| Lamar Media Corp., 7.25%, 2013 |
$ | 675,000 | $ | 649,688 | ||
| Lamar Media Corp., 6.625%, 2015 |
740,000 | 662,300 | ||||
| Lamar Media Corp., “C”, 6.625%, 2015 |
245,000 | 214,375 | ||||
| LIN TV Corp., 6.5%, 2013 |
1,415,000 | 1,146,150 | ||||
| Local TV Finance LLC, 9.25%, 2015 (p)(z) |
945,000 | 234,675 | ||||
| Newport Television LLC, 13%, 2017 (n)(p) |
105,000 | 19,512 | ||||
| News America, Inc., 6.2%, 2034 |
325,000 | 315,402 | ||||
| News America, Inc., 6.9%, 2039 (z) |
205,000 | 215,747 | ||||
| Nexstar Broadcasting Group, Inc., 0.5% to 2011, 7% to 2014 (n)(p) |
508,179 | 192,783 | ||||
| Nexstar Broadcasting Group, Inc., 7%, 2014 |
168,000 | 66,360 | ||||
| Univision Communications, Inc., 12%, 2014 (n) |
290,000 | 304,500 | ||||
| Univision Communications, Inc., 9.75%, 2015 (n)(p) |
1,440,000 | 851,040 | ||||
| $ | 9,022,094 | |||||
| Brokerage & Asset Managers – 0.5% |
||||||
| Janus Capital Group, Inc., 6.95%, 2017 |
$ | 1,700,000 | $ | 1,575,536 | ||
| Nuveen Investments, Inc., 10.5%, 2015 (n) |
1,020,000 | 765,000 | ||||
| $ | 2,340,536 | |||||
| Building – 1.3% |
||||||
| Associated Materials, Inc., 9.75%, 2012 |
$ | 1,075,000 | $ | 962,125 | ||
| Building Materials Corp. of America, 7.75%, 2014 |
760,000 | 714,400 | ||||
| CRH PLC, 8.125%, 2018 |
898,000 | 965,627 | ||||
| Nortek, Inc., 10%, 2013 |
1,350,000 | 1,255,500 | ||||
| Nortek, Inc., 8.5%, 2014 |
395,000 | 185,650 | ||||
| Owens Corning, 9%, 2019 |
1,050,000 | 1,089,063 | ||||
| Ply Gem Industries, Inc., 11.75%, 2013 |
1,435,000 | 1,198,225 | ||||
| USG Corp., 9.75%, 2014 (n) |
155,000 | 159,262 | ||||
| $ | 6,529,852 | |||||
| Business Services – 1.2% |
||||||
| First Data Corp., 9.875%, 2015 |
$ | 2,615,000 | $ | 2,235,825 | ||
| Iron Mountain, Inc., 6.625%, 2016 |
775,000 | 732,375 | ||||
| Iron Mountain, Inc., 8.375%, 2021 |
460,000 | 457,125 | ||||
| SunGard Data Systems, Inc., 9.125%, 2013 |
205,000 | 202,950 | ||||
| SunGard Data Systems, Inc., 10.25%, 2015 |
1,760,000 | 1,742,400 | ||||
| Terremark Worldwide, Inc., 12%, 2017 (n) |
625,000 | 657,031 | ||||
| $ | 6,027,706 | |||||
| Cable TV – 2.8% |
||||||
| CCO Holdings LLC, 8.75%, 2013 |
$ | 1,500,000 | $ | 1,515,000 | ||
| Charter Communications, Inc., 10.375%, 2014 (n) |
590,000 | 597,375 | ||||
| Charter Communications, Inc., 10.875%, 2014 (n) |
395,000 | 428,575 | ||||
| CSC Holdings, Inc., 8.5%, 2014 (n) |
770,000 | 781,550 | ||||
| CSC Holdings, Inc., 8.5%, 2015 (n) |
1,980,000 | 1,999,800 | ||||
| DirectTV Holdings LLC, 7.625%, 2016 |
3,390,000 | 3,567,975 | ||||
| Mediacom LLC, 9.5%, 2013 |
850,000 | 850,000 | ||||
| Mediacom LLC, 9.125%, 2019 (z) |
190,000 | 188,100 | ||||
| TCI Communications, Inc., 9.8%, 2012 |
701,000 | 793,769 | ||||
| Videotron LTEE, 6.875%, 2014 |
925,000 | 884,531 | ||||
| Virgin Media Finance PLC, 9.125%, 2016 |
2,185,000 | 2,212,313 | ||||
| Virgin Media Finance PLC, 9.5%, 2016 |
395,000 | 405,862 | ||||
| $ | 14,224,850 | |||||
| Chemicals – 0.9% |
||||||
| Innophos Holdings, Inc., 8.875%, 2014 |
$ | 850,000 | $ | 824,500 | ||
| Momentive Performance Materials, Inc., 12.5%, 2014 (n) |
526,000 | 504,960 | ||||
| Momentive Performance Materials, Inc., 11.5%, 2016 |
533,000 | 250,510 | ||||
| Mosaic Co., 7.625%, 2016 (n) |
1,525,000 | 1,570,750 | ||||
2
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Chemicals – continued |
||||||
| Nalco Co., 7.75%, 2011 |
$ | 97,000 | $ | 97,000 | ||
| Yara International A.S.A., 5.25%, 2014 (n) |
1,200,000 | 1,203,191 | ||||
| $ | 4,450,911 | |||||
| Computer Software – 0.4% |
||||||
| Seagate Technology HDD Holdings, 6.375%, 2011 |
$ | 1,950,000 | $ | 1,920,750 | ||
| Computer Software – Systems – 0.3% |
||||||
| International Business Machines Corp., 8%, 2038 |
$ | 1,000,000 | $ | 1,398,265 | ||
| Conglomerates – 0.3% |
||||||
| Actuant Corp., 6.875%, 2017 |
$ | 1,005,000 | $ | 929,625 | ||
| Kennametal, Inc., 7.2%, 2012 |
684,000 | 720,432 | ||||
| $ | 1,650,057 | |||||
| Construction – 0.1% |
||||||
| Lennar Corp., 12.25%, 2017 (n) |
$ | 345,000 | $ | 398,475 | ||
| Consumer Products – 0.5% |
||||||
| ACCO Brands Corp., 7.625%, 2015 |
$ | 255,000 | $ | 189,975 | ||
| Fortune Brands, Inc., 5.125%, 2011 |
671,000 | 683,030 | ||||
| Jarden Corp., 7.5%, 2017 |
1,405,000 | 1,352,313 | ||||
| Visant Holding Corp., 8.75%, 2013 |
165,000 | 166,650 | ||||
| $ | 2,391,968 | |||||
| Consumer Services – 1.3% |
||||||
| Corrections Corp. of America, 6.25%, 2013 |
$ | 310,000 | $ | 303,025 | ||
| GEO Group, Inc., 8.25%, 2013 |
125,000 | 124,375 | ||||
| KAR Holdings, Inc., 10%, 2015 |
1,315,000 | 1,209,800 | ||||
| KAR Holdings, Inc., FRN, 4.483%, 2014 |
380,000 | 313,500 | ||||
| Service Corp. International, 7.375%, 2014 |
500,000 | 490,000 | ||||
| Service Corp. International, 7%, 2017 |
3,030,000 | 2,833,050 | ||||
| Ticketmaster Entertainment, Inc., 10.75%, 2016 |
1,510,000 | 1,449,600 | ||||
| $ | 6,723,350 | |||||
| Containers – 0.7% |
||||||
| Crown Americas LLC, 7.625%, 2013 |
$ | 500,000 | $ | 497,500 | ||
| Crown Americas LLC, 7.75%, 2015 |
565,000 | 559,350 | ||||
| Graham Packaging Holdings Co., 9.875%, 2014 |
800,000 | 796,000 | ||||
| Greif, Inc., 6.75%, 2017 |
855,000 | 797,288 | ||||
| Owens-Brockway Glass Container, Inc., 8.25%, 2013 |
940,000 | 949,400 | ||||
| $ | 3,599,538 | |||||
| Defense Electronics – 0.7% |
||||||
| BAE Systems Holdings, Inc., 4.75%, 2010 (n) |
$ | 474,000 | $ | 481,988 | ||
| BAE Systems Holdings, Inc., 5.2%, 2015 (n) |
450,000 | 466,378 | ||||
| L-3 Communications Corp., 5.875%, 2015 |
1,180,000 | 1,103,300 | ||||
| L-3 Communications Corp., 6.375%, 2015 |
1,500,000 | 1,413,750 | ||||
| $ | 3,465,416 | |||||
| Electronics – 0.4% |
||||||
| Avago Technologies Ltd., 11.875%, 2015 |
$ | 500,000 | $ | 536,250 | ||
| Flextronics International Ltd., 6.25%, 2014 |
635,000 | 584,200 | ||||
| Freescale Semiconductor, Inc., 8.875%, 2014 |
635,000 | 428,625 | ||||
| Jabil Circuit, Inc., 7.75%, 2016 |
265,000 | 260,694 | ||||
| Spansion, Inc., 11.25%, 2016 (d)(n) |
230,000 | 157,550 | ||||
| $ | 1,967,319 | |||||
| Emerging Market Quasi-Sovereign – 5.8% |
||||||
| Ecopetrol S.A., 7.625%, 2019 (z) |
$ | 594,000 | $ | 633,382 | ||
| Empresa Nacional del Petroleo, 6.25%, 2019 (n) |
541,000 | 562,682 | ||||
| Export-Import Bank of Korea, 5.875%, 2015 |
676,000 | 702,837 | ||||
3
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Emerging Market Quasi-Sovereign – continued |
||||||
| Gaz Capital S.A., 8.125%, 2014 (n) |
$ | 2,091,000 | $ | 2,156,344 | ||
| KazMunaiGaz Finance B.V., 8.375%, 2013 (n) |
251,000 | 244,725 | ||||
| KazMunaiGaz Finance B.V., 11.75%, 2015 (n) |
2,563,000 | 2,771,244 | ||||
| KazMunaiGaz Finance B.V., 9.125%, 2018 (n) |
733,000 | 706,429 | ||||
| Korea National Oil Corp., 5.375%, 2014 (n) |
1,117,000 | 1,137,896 | ||||
| Majapahit Holding B.V., 7.25%, 2017 (n) |
1,478,000 | 1,441,050 | ||||
| Majapahit Holding B.V., 8%, 2019 (z) |
492,000 | 497,510 | ||||
| Mubadala Development Co., 7.625%, 2019 (n) |
2,338,000 | 2,516,272 | ||||
| National Power Corp., 7.25%, 2019 (n) |
752,000 | 774,560 | ||||
| National Power Corp., FRN, 4.911%, 2011 |
390,000 | 395,345 | ||||
| Pemex Project Funding Master Trust, 5.75%, 2018 |
2,006,000 | 1,945,820 | ||||
| Petrobras International Finance Co., 7.875%, 2019 |
1,361,000 | 1,534,527 | ||||
| Petroleos de Venezuela S.A., 5.25%, 2017 |
950,000 | 522,500 | ||||
| Petroleos Mexicanos, 8%, 2019 (n) |
1,101,000 | 1,238,625 | ||||
| Petroleum Co. of Trinidad & Tobago Ltd., 9.75%, 2019 (z) |
266,000 | 288,942 | ||||
| Qtel International Finance Ltd., 7.875%, 2019 (n) |
3,458,000 | 3,823,486 | ||||
| Ras Laffan Liquefied Natural Gas Co. Ltd., 8.294%, 2014 (n) |
2,490,000 | 2,711,070 | ||||
| Ras Laffan Liquefied Natural Gas Co. Ltd., 5.5%, 2014 (n) |
544,000 | 562,930 | ||||
| Ras Laffan Liquefied Natural Gas Co. Ltd., 6.75%, 2019 (n) |
1,442,000 | 1,507,161 | ||||
| TDIC Finance Ltd., 6.5%, 2014 (n) |
236,000 | 247,909 | ||||
| TransCapitalInvest Ltd., 5.67%, 2014 |
115,000 | 110,688 | ||||
| $ | 29,033,934 | |||||
| Emerging Market Sovereign – 3.9% |
||||||
| Emirate of Abu Dhabi, 6.75%, 2019 (n) |
$ | 218,000 | $ | 240,129 | ||
| Federative Republic of Brazil, 6%, 2017 |
1,670,000 | 1,745,150 | ||||
| Federative Republic of Brazil, 7.125%, 2037 |
127,000 | 140,335 | ||||
| Republic of Argentina, 8.28%, 2033 |
1,898,560 | 1,101,165 | ||||
| Republic of Argentina, FRN, 0.943%, 2012 |
1,460,363 | 1,026,926 | ||||
| Republic of Argentina, FRN, 2.5% to 2019, 3.75% to 2029, 5.25% to 2038 |
1,848,000 | 503,580 | ||||
| Republic of Colombia, 7.375%, 2017 |
1,393,000 | 1,530,907 | ||||
| Republic of Colombia, 7.375%, 2019 |
465,000 | 507,780 | ||||
| Republic of Colombia, 8.125%, 2024 |
664,000 | 747,000 | ||||
| Republic of Indonesia, 6.875%, 2017 (n) |
171,000 | 176,558 | ||||
| Republic of Indonesia, 6.875%, 2018 |
204,000 | 210,120 | ||||
| Republic of Indonesia, 6.875%, 2018 (n) |
531,000 | 546,930 | ||||
| Republic of Indonesia, 11.625%, 2019 |
718,000 | 969,300 | ||||
| Republic of Indonesia, 11.625%, 2019 (n) |
1,703,000 | 2,299,050 | ||||
| Republic of Indonesia, 7.75%, 2038 (n) |
593,000 | 610,790 | ||||
| Republic of Panama, 9.375%, 2029 |
1,747,000 | 2,236,160 | ||||
| Republic of Peru, 7.125%, 2019 |
298,000 | 327,800 | ||||
| Republic of Peru, 7.35%, 2025 |
355,000 | 386,950 | ||||
| Republic of Philippines, 6.5%, 2020 |
172,000 | 175,655 | ||||
| Republic of Poland, 6.375%, 2019 |
490,000 | 525,707 | ||||
| Republic of South Africa, 6.875%, 2019 |
268,000 | 287,765 | ||||
| Republic of Turkey, 7.5%, 2017 |
167,000 | 181,195 | ||||
| Republic of Turkey, 7.5%, 2019 |
289,000 | 312,120 | ||||
| Russian Federation, FRN, 7.5%, 2030 |
908,160 | 930,864 | ||||
| State of Qatar, 6.55%, 2019 (n) |
864,000 | 922,320 | ||||
| Ukraine Government International, 6.58%, 2016 |
1,389,000 | 1,138,980 | ||||
| $ | 19,781,236 | |||||
| Energy - Independent – 3.7% |
||||||
| Anadarko Petroleum Corp., 6.45%, 2036 |
$ | 160,000 | $ | 158,380 | ||
| Chaparral Energy, Inc., 8.875%, 2017 |
970,000 | 649,900 | ||||
| Chesapeake Energy Corp., 9.5%, 2015 |
295,000 | 300,900 | ||||
| Chesapeake Energy Corp., 6.375%, 2015 |
2,200,000 | 2,004,750 | ||||
4
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Energy - Independent – continued |
||||||
| Chesapeake Energy Corp., 6.875%, 2016 |
$ | 435,000 | $ | 399,113 | ||
| Forest Oil Corp., 8.5%, 2014 (n) |
70,000 | 70,350 | ||||
| Forest Oil Corp., 7.25%, 2019 |
1,985,000 | 1,865,900 | ||||
| Hilcorp Energy I LP, 9%, 2016 (n) |
1,290,000 | 1,231,950 | ||||
| Mariner Energy, Inc., 8%, 2017 |
1,310,000 | 1,159,350 | ||||
| McMoRan Exploration Co., 11.875%, 2014 |
1,435,000 | 1,388,363 | ||||
| Newfield Exploration Co., 6.625%, 2014 |
650,000 | 627,250 | ||||
| Newfield Exploration Co., 6.625%, 2016 |
225,000 | 214,875 | ||||
| OPTI Canada, Inc., 8.25%, 2014 |
900,000 | 585,000 | ||||
| Penn Virginia Corp., 10.375%, 2016 |
1,130,000 | 1,189,325 | ||||
| Petrohawk Energy Corp., 10.5%, 2014 (n) |
560,000 | 599,200 | ||||
| Plains Exploration & Production Co., 7%, 2017 |
2,020,000 | 1,858,400 | ||||
| Quicksilver Resources, Inc., 8.25%, 2015 |
1,055,000 | 991,700 | ||||
| Quicksilver Resources, Inc., 7.125%, 2016 |
995,000 | 825,850 | ||||
| Range Resources Corp., 8%, 2019 |
800,000 | 816,000 | ||||
| SandRidge Energy, Inc., 9.875%, 2016 (n) |
250,000 | 250,000 | ||||
| SandRidge Energy, Inc., 8%, 2018 (n) |
1,300,000 | 1,176,500 | ||||
| Talisman Energy, Inc., 7.75%, 2019 |
280,000 | 325,826 | ||||
| $ | 18,688,882 | |||||
| Energy - Integrated – 0.5% |
||||||
| CCL Finance Ltd., 9.5%, 2014 (z) |
$ | 1,727,000 | $ | 1,778,810 | ||
| Hess Corp., 8.125%, 2019 |
100,000 | 118,329 | ||||
| Husky Energy, Inc., 5.9%, 2014 |
306,000 | 329,269 | ||||
| Husky Energy, Inc., 7.25%, 2019 |
324,000 | 366,383 | ||||
| $ | 2,592,791 | |||||
| Entertainment – 0.5% |
||||||
| AMC Entertainment, Inc., 11%, 2016 |
$ | 1,200,000 | $ | 1,242,000 | ||
| AMC Entertainment, Inc., 8.75%, 2019 |
660,000 | 655,050 | ||||
| Cinemark USA, Inc., 8.625%, 2019 (n) |
525,000 | 530,250 | ||||
| $ | 2,427,300 | |||||
| Financial Institutions – 1.2% |
||||||
| GMAC LLC, 6.875%, 2011 (n) |
$ | 2,824,000 | $ | 2,605,140 | ||
| GMAC LLC, 7%, 2012 (n) |
455,000 | 408,362 | ||||
| GMAC LLC, 6.75%, 2014 (n) |
1,205,000 | 988,100 | ||||
| GMAC LLC, 8%, 2031 (n) |
799,000 | 617,227 | ||||
| ILFC E-Capital Trust I, 5.9% to 2010, FRN to 2065 (n) |
2,500,000 | 1,050,000 | ||||
| International Lease Finance Corp., 5.625%, 2013 |
275,000 | 211,432 | ||||
| $ | 5,880,261 | |||||
| Food & Beverages – 1.3% |
||||||
| Anheuser-Busch Companies, Inc., 6.875%, 2019 (z) |
$ | 1,300,000 | $ | 1,454,155 | ||
| ARAMARK Corp., 8.5%, 2015 |
1,154,000 | 1,119,380 | ||||
| B&G Foods, Inc., 8%, 2011 |
170,000 | 170,000 | ||||
| Conagra Foods, Inc., 7%, 2019 |
430,000 | 502,155 | ||||
| Dean Foods Co., 7%, 2016 |
1,300,000 | 1,215,500 | ||||
| Del Monte Corp., 6.75%, 2015 |
1,170,000 | 1,134,900 | ||||
| General Mills, Inc., 5.65%, 2012 |
156,000 | 169,767 | ||||
| Tyson Foods, Inc., 7.85%, 2016 |
912,000 | 900,600 | ||||
| $ | 6,666,457 | |||||
| Food & Drug Stores – 0.2% |
||||||
| CVS Caremark Corp., 6.6%, 2019 |
$ | 740,000 | $ | 837,901 | ||
| Forest & Paper Products – 1.5% |
||||||
| Buckeye Technologies, Inc., 8.5%, 2013 |
$ | 425,000 | $ | 435,625 | ||
| Cellu Tissue Holdings, Inc., 11.5%, 2014 (z) |
770,000 | 804,650 | ||||
| Celulosa Arauco y Constitucion S.A., 7.25%, 2019 (n) |
158,000 | 169,997 | ||||
5
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Forest & Paper Products – continued |
||||||
| Georgia-Pacific Corp., 7.125%, 2017 (n) |
$ | 2,085,000 | $ | 2,001,600 | ||
| Georgia-Pacific Corp., 8%, 2024 |
140,000 | 130,200 | ||||
| Graphic Packaging International Corp., 9.5%, 2013 |
1,445,000 | 1,448,613 | ||||
| Jefferson Smurfit Corp., 8.25%, 2012 (d) |
1,425,000 | 894,188 | ||||
| Smurfit-Stone Container Corp., 8%, 2017 (d) |
221,000 | 137,020 | ||||
| Stora Enso Oyj, 6.404%, 2016 (n) |
1,560,000 | 1,293,926 | ||||
| $ | 7,315,819 | |||||
| Gaming & Lodging – 3.2% |
||||||
| American Casino & Entertainment, 11%, 2014 (z) |
$ | 400,000 | $ | 333,000 | ||
| Ameristar Casinos, Inc., 9.25%, 2014 (n) |
735,000 | 751,537 | ||||
| Boyd Gaming Corp., 6.75%, 2014 |
1,255,000 | 1,093,419 | ||||
| Firekeepers Development Authority, 13.875%, 2015 (n) |
270,000 | 274,050 | ||||
| Fontainebleau Las Vegas Holdings LLC, 10.25%, 2015 (d)(n) |
460,000 | 16,100 | ||||
| Harrah’s Operating Co., Inc., 11.25%, 2017 (n) |
445,000 | 452,787 | ||||
| Harrah’s Operating Co., Inc., 10%, 2018 (n) |
2,924,000 | 2,046,800 | ||||
| Harrah’s Operating Co., Inc., 10%, 2018 (n) |
735,000 | 514,500 | ||||
| Host Hotels & Resorts, Inc., 7.125%, 2013 |
470,000 | 454,725 | ||||
| Host Hotels & Resorts, Inc., 6.75%, 2016 |
880,000 | 818,400 | ||||
| Host Hotels & Resorts, Inc., 9%, 2017 (n) |
1,255,000 | 1,280,100 | ||||
| MGM Mirage, 6.75%, 2013 |
900,000 | 684,000 | ||||
| MGM Mirage, 5.875%, 2014 |
480,000 | 345,600 | ||||
| MGM Mirage, 10.375%, 2014 (n) |
145,000 | 152,612 | ||||
| MGM Mirage, 7.5%, 2016 |
640,000 | 457,600 | ||||
| MGM Mirage, 11.125%, 2017 (n) |
365,000 | 395,112 | ||||
| Penn National Gaming, Inc., 8.75%, 2019 (z) |
140,000 | 138,950 | ||||
| Pinnacle Entertainment, Inc., 7.5%, 2015 |
2,440,000 | 2,122,800 | ||||
| Royal Caribbean Cruises Ltd., 7%, 2013 |
545,000 | 483,688 | ||||
| Royal Caribbean Cruises Ltd., 11.875%, 2015 |
1,050,000 | 1,097,250 | ||||
| Scientific Games Corp., 6.25%, 2012 |
380,000 | 364,800 | ||||
| Starwood Hotels & Resorts Worldwide, Inc., 7.875%, 2012 |
325,000 | 326,625 | ||||
| Starwood Hotels & Resorts Worldwide, Inc., 6.75%, 2018 |
235,000 | 212,675 | ||||
| Station Casinos, Inc., 6%, 2012 (d) |
1,730,000 | 547,113 | ||||
| Station Casinos, Inc., 6.5%, 2014 (d) |
25,000 | 875 | ||||
| Station Casinos, Inc., 6.875%, 2016 (d) |
980,000 | 34,300 | ||||
| Wyndham Worldwide Corp., 6%, 2016 |
705,000 | 614,154 | ||||
| $ | 16,013,572 | |||||
| Industrial – 0.2% |
||||||
| Baldor Electric Co., 8.625%, 2017 |
$ | 530,000 | $ | 527,350 | ||
| JohnsonDiversey, Inc., 9.625%, 2012 |
EUR | 125,000 | 170,240 | |||
| JohnsonDiversey, Inc., “B”, 9.625%, 2012 |
$ | 310,000 | 314,650 | |||
| $ | 1,012,240 | |||||
| Insurance – 0.2% |
||||||
| Metropolitan Life Global Funding, 5.125%, 2014 (n) |
$ | 860,000 | $ | 896,193 | ||
| Insurance - Property & Casualty – 0.7% |
||||||
| ACE INA Holdings, Inc., 5.9%, 2019 |
$ | 420,000 | $ | 452,385 | ||
| Allstate Corp., 7.45%, 2019 |
850,000 | 982,044 | ||||
| AXIS Capital Holdings Ltd., 5.75%, 2014 |
1,013,000 | 1,024,764 | ||||
| USI Holdings Corp., FRN, 4.315%, 2014 (n) |
1,005,000 | 776,363 | ||||
| ZFS Finance USA Trust V, 6.5% to 2017, FRN to 2037 (n) |
627,000 | 489,060 | ||||
| $ | 3,724,616 | |||||
| International Market Quasi-Sovereign – 0.8% |
||||||
| Canada Housing Trust, 4.6%, 2011 (n) |
CAD | 392,000 | $ | 380,556 | ||
| ING Bank N.V., 3.9%, 2014 (n) |
$ | 1,390,000 | 1,427,276 | |||
| KFW International Finance, Inc., 4.875%, 2019 |
1,000,000 | 1,079,411 | ||||
6
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| International Market Quasi-Sovereign – continued |
||||||
| Societe Financement de l’ Economie Francaise, 3.375%, 2014 (n) |
$ | 1,000,000 | $ | 1,018,833 | ||
| $ | 3,906,076 | |||||
| International Market Sovereign – 13.8% |
||||||
| Federal Republic of Germany, 5.25%, 2010 |
EUR | 3,901,000 | $ | 5,804,929 | ||
| Federal Republic of Germany, 3.75%, 2015 |
EUR | 130,000 | 197,190 | |||
| Federal Republic of Germany, 6.25%, 2030 |
EUR | 926,000 | 1,723,231 | |||
| Government of Canada, 4.5%, 2015 |
CAD | 1,035,000 | 1,035,057 | |||
| Government of Canada, 5.75%, 2033 |
CAD | 238,000 | 274,976 | |||
| Government of Japan, 1.5%, 2012 |
JPY | 600,000,000 | 6,658,665 | |||
| Government of Japan, 1.3%, 2014 |
JPY | 246,600,000 | 2,732,810 | |||
| Government of Japan, 1.7%, 2017 |
JPY | 569,600,000 | 6,436,553 | |||
| Government of Japan, 2.2%, 2027 |
JPY | 548,000,000 | 6,055,456 | |||
| Kingdom of Belgium, 5.5%, 2017 |
EUR | 1,254,000 | 2,052,113 | |||
| Kingdom of Netherlands, 3.75%, 2014 |
EUR | 1,175,000 | 1,770,185 | |||
| Kingdom of Spain, 5.35%, 2011 |
EUR | 2,742,000 | 4,240,254 | |||
| Kingdom of Spain, 4.6%, 2019 |
EUR | 815,000 | 1,249,722 | |||
| Kingdom of Sweden, 4.5%, 2015 |
SEK | 2,635,000 | 400,796 | |||
| Republic of Austria, 4.65%, 2018 |
EUR | 737,000 | 1,136,872 | |||
| Republic of France, 4.75%, 2012 |
EUR | 769,000 | 1,193,422 | |||
| Republic of France, 4.75%, 2035 |
EUR | 2,110,000 | 3,323,936 | |||
| Republic of Greece, 3.6%, 2016 |
EUR | 2,398,000 | 3,404,872 | |||
| Republic of Ireland, 4.6%, 2016 |
EUR | 1,433,000 | 2,122,758 | |||
| Republic of Italy, 4.75%, 2013 |
EUR | 4,881,000 | 7,503,450 | |||
| Republic of Italy, 5.25%, 2017 |
EUR | 2,865,000 | 4,590,358 | |||
| Republic of Portugal, 4.45%, 2018 |
EUR | 465,000 | 701,015 | |||
| United Kingdom Treasury, 8%, 2015 |
GBP | 825,000 | 1,736,173 | |||
| United Kingdom Treasury, 8%, 2021 |
GBP | 588,000 | 1,355,924 | |||
| United Kingdom Treasury, 4.25%, 2036 |
GBP | 808,000 | 1,341,955 | |||
| $ | 69,042,672 | |||||
| Machinery & Tools – 0.2% |
||||||
| Case New Holland, Inc., 7.125%, 2014 |
$ | 995,000 | $ | 950,225 | ||
| Rental Service Corp., 9.5%, 2014 |
195,000 | 174,525 | ||||
| $ | 1,124,750 | |||||
| Major Banks – 2.0% |
||||||
| Bank of America Corp., 7.375%, 2014 |
$ | 1,000,000 | $ | 1,096,397 | ||
| Bank of America Corp., 7.625%, 2019 |
370,000 | 407,372 | ||||
| Bank of America Corp., 8% to 2018, FRN to 2049 |
600,000 | 525,342 | ||||
| BNP Paribas, 5.186% to 2015, FRN to 2049 (n) |
1,667,000 | 1,172,750 | ||||
| Credit Suisse New York, 5.5%, 2014 |
1,000,000 | 1,074,752 | ||||
| Goldman Sachs Group, Inc., 6%, 2014 |
2,000,000 | 2,156,406 | ||||
| JPMorgan Chase & Co., 6.3%, 2019 |
1,000,000 | 1,096,278 | ||||
| Morgan Stanley, 5.75%, 2016 |
397,000 | 399,953 | ||||
| Morgan Stanley, 6.625%, 2018 |
391,000 | 417,799 | ||||
| Morgan Stanley, 7.3%, 2019 |
830,000 | 924,314 | ||||
| MUFG Capital Finance 1 Ltd., 6.346% to 2016, FRN to 2049 |
289,000 | 265,431 | ||||
| UniCredito Luxembourg Finance S.A., 6%, 2017 (n) |
498,000 | 477,786 | ||||
| $ | 10,014,580 | |||||
| Medical & Health Technology & Services – 4.2% |
||||||
| Biomet, Inc., 10%, 2017 |
$ | 615,000 | $ | 645,750 | ||
| Biomet, Inc., 11.625%, 2017 |
2,260,000 | 2,389,950 | ||||
| Community Health Systems, Inc., 8.875%, 2015 |
2,010,000 | 2,017,538 | ||||
| Cooper Cos., Inc., 7.125%, 2015 |
570,000 | 536,513 | ||||
| DaVita, Inc., 6.625%, 2013 |
794,000 | 770,180 | ||||
| DaVita, Inc., 7.25%, 2015 |
1,595,000 | 1,539,175 | ||||
7
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Medical & Health Technology & Services – continued |
||||||
| Fisher Scientific International, Inc., 6.125%, 2015 |
$ | 1,254,000 | $ | 1,291,620 | ||
| Fresenius Medical Care AG & Co. KGaA, 9%, 2015 (n) |
665,000 | 721,525 | ||||
| HCA, Inc., 8.75%, 2010 |
480,000 | 483,600 | ||||
| HCA, Inc., 9.25%, 2016 |
4,630,000 | 4,687,875 | ||||
| HCA, Inc., 8.5%, 2019 (n) |
605,000 | 612,562 | ||||
| Hospira, Inc., 6.05%, 2017 |
655,000 | 681,180 | ||||
| McKesson Corp., 7.5%, 2019 |
110,000 | 128,966 | ||||
| Owens & Minor, Inc., 6.35%, 2016 |
970,000 | 909,397 | ||||
| Psychiatric Solutions, Inc., 7.75%, 2015 (n) |
260,000 | 237,900 | ||||
| Psychiatric Solutions, Inc., 7.75%, 2015 |
850,000 | 799,000 | ||||
| U.S. Oncology, Inc., 10.75%, 2014 |
990,000 | 1,002,375 | ||||
| Universal Hospital Services, Inc., 8.5%, 2015 (p) |
1,030,000 | 993,950 | ||||
| VWR Funding, Inc., 10.25%, 2015 (p) |
1,000,000 | 845,000 | ||||
| $ | 21,294,056 | |||||
| Metals & Mining – 2.3% |
||||||
| Arch Coal, Inc., 8.75%, 2016 (n) |
$ | 310,000 | $ | 310,000 | ||
| Arch Western Finance LLC, 6.75%, 2013 |
1,655,000 | 1,580,525 | ||||
| FMG Finance Ltd., 10.625%, 2016 (n) |
1,135,000 | 1,220,125 | ||||
| Freeport-McMoRan Copper & Gold, Inc., 8.375%, 2017 |
3,355,000 | 3,497,588 | ||||
| Freeport-McMoRan Copper & Gold, Inc., FRN, 4.995%, 2015 |
265,000 | 256,080 | ||||
| International Steel Group, Inc., 6.5%, 2014 |
1,300,000 | 1,315,855 | ||||
| Ispat Inland ULC, 9.75%, 2014 |
1,200,000 | 1,250,706 | ||||
| Peabody Energy Corp., 5.875%, 2016 |
675,000 | 621,000 | ||||
| Peabody Energy Corp., 7.375%, 2016 |
1,245,000 | 1,245,000 | ||||
| $ | 11,296,879 | |||||
| Mortgage Backed – 6.6% |
||||||
| Fannie Mae, 3.81%, 2013 |
$ | 318,371 | $ | 326,162 | ||
| Fannie Mae, 4.1%, 2013 |
518,790 | 536,319 | ||||
| Fannie Mae, 4.19%, 2013 |
420,512 | 435,890 | ||||
| Fannie Mae, 4.845%, 2013 |
142,398 | 150,582 | ||||
| Fannie Mae, 4.582%, 2014 |
325,939 | 341,704 | ||||
| Fannie Mae, 4.6%, 2014 |
432,012 | 452,353 | ||||
| Fannie Mae, 4.609%, 2014 |
493,607 | 518,018 | ||||
| Fannie Mae, 4.77%, 2014 |
336,426 | 354,904 | ||||
| Fannie Mae, 4.56%, 2015 |
181,377 | 189,032 | ||||
| Fannie Mae, 4.665%, 2015 |
147,034 | 153,979 | ||||
| Fannie Mae, 4.7%, 2015 |
140,337 | 147,174 | ||||
| Fannie Mae, 4.74%, 2015 |
347,381 | 364,885 | ||||
| Fannie Mae, 4.78%, 2015 |
405,512 | 426,372 | ||||
| Fannie Mae, 4.815%, 2015 |
360,000 | 379,222 | ||||
| Fannie Mae, 4.87%, 2015 |
296,679 | 313,119 | ||||
| Fannie Mae, 4.89%, 2015 |
99,036 | 104,684 | ||||
| Fannie Mae, 4.921%, 2015 |
991,623 | 1,050,419 | ||||
| Fannie Mae, 6%, 2016 - 2037 |
4,517,708 | 4,786,798 | ||||
| Fannie Mae, 5.5%, 2019 - 2035 |
12,561,642 | 13,192,356 | ||||
| Fannie Mae, 4.88%, 2020 |
284,059 | 296,427 | ||||
| Fannie Mae, 6.5%, 2032 - 2033 |
1,065,553 | 1,150,026 | ||||
| Fannie Mae, 5%, 2034 |
3,481,774 | 3,592,551 | ||||
| Freddie Mac, 5%, 2024 |
57,648 | 58,847 | ||||
| Freddie Mac, 5.5%, 2034 |
2,975,552 | 3,117,646 | ||||
| Freddie Mac, 6%, 2034 |
743,691 | 789,431 | ||||
| $ | 33,228,900 | |||||
| Natural Gas - Distribution – 0.6% |
||||||
| AmeriGas Partners LP, 7.25%, 2015 |
$ | 670,000 | $ | 646,550 | ||
| AmeriGas Partners LP, 7.125%, 2016 |
925,000 | 885,688 | ||||
8
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Natural Gas - Distribution – continued |
||||||
| EQT Corp., 8.125%, 2019 |
$ | 1,000,000 | $ | 1,123,410 | ||
| Inergy LP, 6.875%, 2014 |
585,000 | 546,975 | ||||
| $ | 3,202,623 | |||||
| Natural Gas - Pipeline – 1.8% |
||||||
| Atlas Pipeline Partners LP, 8.125%, 2015 |
$ | 1,500,000 | $ | 1,230,000 | ||
| Atlas Pipeline Partners LP, 8.75%, 2018 |
250,000 | 203,750 | ||||
| CenterPoint Energy, Inc., 7.875%, 2013 |
960,000 | 1,078,734 | ||||
| Deutsche Bank (El Paso Performance-Linked Trust, CLN), 7.75%, 2011 (n) |
1,890,000 | 1,931,344 | ||||
| El Paso Corp., 8.25%, 2016 |
675,000 | 681,750 | ||||
| El Paso Corp., 7.25%, 2018 |
595,000 | 563,601 | ||||
| El Paso Corp., 7.75%, 2032 |
201,000 | 178,982 | ||||
| MarkWest Energy Partners LP, 6.875%, 2014 (n) |
720,000 | 655,200 | ||||
| MarkWest Energy Partners LP, 8.75%, 2018 |
165,000 | 156,750 | ||||
| Spectra Energy Capital LLC, 8%, 2019 |
810,000 | 934,448 | ||||
| Williams Partners LP, 7.25%, 2017 |
1,355,000 | 1,328,292 | ||||
| $ | 8,942,851 | |||||
| Network & Telecom – 2.7% |
||||||
| AT&T, Inc., 6.55%, 2039 |
$ | 170,000 | $ | 185,494 | ||
| Cincinnati Bell, Inc., 8.375%, 2014 |
1,000,000 | 970,000 | ||||
| Citizens Communications Co., 9.25%, 2011 |
740,000 | 778,850 | ||||
| Citizens Communications Co., 9%, 2031 |
405,000 | 373,106 | ||||
| Nordic Telephone Co. Holdings, 8.875%, 2016 (n) |
1,177,000 | 1,194,655 | ||||
| Qwest Communications International, Inc., 7.25%, 2011 |
2,075,000 | 2,043,875 | ||||
| Qwest Corp., 7.875%, 2011 |
1,020,000 | 1,040,400 | ||||
| Qwest Corp., 8.875%, 2012 |
980,000 | 1,009,400 | ||||
| Qwest Corp., 8.375%, 2016 (n) |
278,000 | 280,780 | ||||
| Telemar Norte Leste S.A., 9.5%, 2019 (n) |
1,578,000 | 1,852,177 | ||||
| TELUS Corp., 8%, 2011 |
779,000 | 847,864 | ||||
| Verizon New York, Inc., 6.875%, 2012 |
1,525,000 | 1,661,535 | ||||
| Windstream Corp., 8.625%, 2016 |
1,135,000 | 1,139,256 | ||||
| $ | 13,377,392 | |||||
| Other Banks & Diversified Financials – 1.5% |
||||||
| Bosphorus Financial Services Ltd., FRN, 2.683%, 2012 (z) |
$ | 937,500 | $ | 822,405 | ||
| Capital One Financial Corp., 8.8%, 2019 |
320,000 | 342,844 | ||||
| Capital One Financial Corp., 10.25%, 2039 |
1,000,000 | 1,016,820 | ||||
| Groupe BPCE S.A., 12.5%, 2049 (z) |
1,974,000 | 2,191,140 | ||||
| Resona Bank Ltd., 5.85% to 2016, FRN to 2049 (n) |
655,000 | 563,300 | ||||
| Svenska Handelsbanken AB, 4.875%, 2014 (n) |
1,000,000 | 1,046,880 | ||||
| Woori America Bank, 7%, 2015 (n) |
292,000 | 308,617 | ||||
| Woori Bank, 6.125% to 2011, FRN to 2016 (n) |
1,490,000 | 1,418,911 | ||||
| $ | 7,710,917 | |||||
| Pharmaceuticals – 0.2% |
||||||
| Roche Holdings, Inc., 6%, 2019 (n) |
$ | 1,000,000 | $ | 1,106,719 | ||
| Watson Pharmaceuticals, Inc., 6.125%, 2019 |
120,000 | 123,374 | ||||
| $ | 1,230,093 | |||||
| Pollution Control – 0.2% |
||||||
| Allied Waste North America, Inc., 7.125%, 2016 |
$ | 75,000 | $ | 78,000 | ||
| Allied Waste North America, Inc., 6.875%, 2017 |
870,000 | 906,975 | ||||
| $ | 984,975 | |||||
| Precious Metals & Minerals – 0.5% |
||||||
| Alrosa Finance S.A., 8.875%, 2014 |
$ | 400,000 | $ | 391,000 | ||
| Teck Resources Ltd., 9.75%, 2014 |
450,000 | 486,000 | ||||
| Teck Resources Ltd., 10.75%, 2019 |
1,480,000 | 1,685,350 | ||||
| $ | 2,562,350 | |||||
9
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Printing & Publishing – 0.5% |
||||||
| American Media Operations, Inc., 9%, 2013 (p)(z) |
$ | 10,399 | $ | 5,558 | ||
| American Media Operations, Inc., 14%, 2013 (p)(z) |
108,581 | 56,197 | ||||
| Dex Media West LLC, 9.875%, 2013 (d) |
1,855,000 | 389,550 | ||||
| Idearc, Inc., 8%, 2016 (d) |
568,000 | 43,310 | ||||
| Nielsen Finance LLC, 10%, 2014 |
1,605,000 | 1,516,725 | ||||
| Nielsen Finance LLC, 11.5%, 2016 |
545,000 | 542,275 | ||||
| $ | 2,553,615 | |||||
| Railroad & Shipping – 0.1% |
||||||
| Kansas City Southern Railway, 8%, 2015 |
$ | 565,000 | $ | 559,350 | ||
| Real Estate – 0.3% |
||||||
| CB Richard Ellis Group, Inc., 11.625%, 2017 (n) |
$ | 220,000 | $ | 228,800 | ||
| HRPT Properties Trust, REIT, 6.25%, 2016 |
853,000 | 738,337 | ||||
| Simon Property Group, Inc., REIT, 5.875%, 2017 |
756,000 | 764,910 | ||||
| $ | 1,732,047 | |||||
| Retailers – 1.5% |
||||||
| Couche-Tard, Inc., 7.5%, 2013 |
$ | 350,000 | $ | 350,000 | ||
| Dollar General Corp., 11.875%, 2017 (p) |
380,000 | 426,550 | ||||
| General Nutrition Centers, Inc., FRN, 6.403%, 2014 (p) |
740,000 | 645,650 | ||||
| Home Depot, Inc., 5.875%, 2036 |
509,000 | 489,893 | ||||
| Limited Brands, Inc., 5.25%, 2014 |
635,000 | 574,100 | ||||
| Macy’s Retail Holdings, Inc., 5.35%, 2012 |
295,000 | 280,250 | ||||
| Macy’s Retail Holdings, Inc., 5.75%, 2014 |
680,000 | 615,246 | ||||
| Neiman Marcus Group, Inc., 10.375%, 2015 |
1,315,000 | 979,675 | ||||
| Rite Aid Corp., 9.75%, 2016 (n) |
535,000 | 565,763 | ||||
| Rite Aid Corp., 7.5%, 2017 |
355,000 | 296,425 | ||||
| Sally Beauty Holdings, Inc., 10.5%, 2016 |
1,270,000 | 1,317,625 | ||||
| Toys “R” Us, Inc., 10.75%, 2017 (n) |
1,040,000 | 1,055,600 | ||||
| $ | 7,596,777 | |||||
| Specialty Chemicals – 0.3% |
||||||
| Ashland, Inc., 9.125%, 2017 (n) |
$ | 1,175,000 | $ | 1,233,750 | ||
| Specialty Stores – 0.1% |
||||||
| GSC Holdings Corp., 8%, 2012 |
$ | 220,000 | $ | 222,750 | ||
| Payless ShoeSource, Inc., 8.25%, 2013 |
170,000 | 165,750 | ||||
| $ | 388,500 | |||||
| Supermarkets – 0.5% |
||||||
| Delhaize America, Inc., 9%, 2031 |
$ | 980,000 | $ | 1,264,966 | ||
| SUPERVALU, Inc., 8%, 2016 |
1,305,000 | 1,283,794 | ||||
| $ | 2,548,760 | |||||
| Supranational – 0.9% |
||||||
| Central American Bank, 4.875%, 2012 (n) |
$ | 1,426,000 | $ | 1,460,321 | ||
| European Investment Bank, 5.125%, 2017 |
2,593,000 | 2,848,589 | ||||
| $ | 4,308,910 | |||||
| Telecommunications - Wireless – 1.9% |
||||||
| AT&T Wireless Services, Inc., 8.75%, 2031 |
$ | 900,000 | $ | 1,196,199 | ||
| Cingular Wireless LLC, 6.5%, 2011 |
1,020,000 | 1,119,987 | ||||
| Cricket Communications, Inc., 7.75%, 2016 (n) |
560,000 | 543,200 | ||||
| Crown Castle International Corp., 9%, 2015 |
975,000 | 1,014,000 | ||||
| Crown Castle International Corp., 7.75%, 2017 (n) |
715,000 | 722,150 | ||||
| MetroPCS Wireless, Inc., 9.25%, 2014 |
590,000 | 578,938 | ||||
| Nextel Communications, Inc., 6.875%, 2013 |
1,340,000 | 1,199,300 | ||||
| NII Holdings, Inc., 10%, 2016 (z) |
250,000 | 247,500 | ||||
| SBA Communications Corp., 8%, 2016 (n) |
260,000 | 259,350 | ||||
| SBA Communications Corp., 8.25%, 2019 (n) |
220,000 | 221,100 | ||||
10
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Telecommunications - Wireless – continued |
||||||
| Sprint Nextel Corp., 8.375%, 2012 |
$ | 1,290,000 | $ | 1,291,613 | ||
| Sprint Nextel Corp., 8.375%, 2017 |
360,000 | 342,900 | ||||
| Sprint Nextel Corp., 8.75%, 2032 |
380,000 | 315,400 | ||||
| Wind Acquisition Finance S.A., 10.75%, 2015 (n) |
408,000 | 438,600 | ||||
| $ | 9,490,237 | |||||
| Telephone Services – 0.1% |
||||||
| Frontier Communications Corp., 8.25%, 2014 |
$ | 685,000 | $ | 679,862 | ||
| Tobacco – 0.5% |
||||||
| Alliance One International, Inc., 10%, 2016 (n) |
$ | 535,000 | $ | 528,313 | ||
| Alliance One International, Inc., 10%, 2016 (z) |
225,000 | 222,187 | ||||
| Reynolds American, Inc., 6.75%, 2017 |
1,790,000 | 1,823,906 | ||||
| $ | 2,574,406 | |||||
| Transportation – 0.0% |
||||||
| Peru Enhanced Pass-Through Trust, 0%, 2018 (n) |
$ | 233,190 | $ | 171,978 | ||
| Transportation - Services – 0.6% |
||||||
| Commercial Barge Line Co., 12.5%, 2017 (n) |
$ | 525,000 | $ | 517,125 | ||
| Erac USA Finance Co., 6.375%, 2017 (n) |
1,000,000 | 979,001 | ||||
| Hertz Corp., 8.875%, 2014 |
920,000 | 880,900 | ||||
| Westinghouse Air Brake Technologies Corp., 6.875%, 2013 |
370,000 | 369,538 | ||||
| $ | 2,746,564 | |||||
| U.S. Government Agencies and Equivalents – 0.7% |
||||||
| Freddie Mac, 5.5%, 2017 |
$ | 3,060,000 | $ | 3,440,658 | ||
| U.S. Treasury Obligations – 3.8% |
||||||
| U.S. Treasury Bonds, 10.625%, 2015 |
$ | 2,010,000 | $ | 2,882,937 | ||
| U.S. Treasury Bonds, 7.5%, 2016 |
3,450,000 | 4,423,276 | ||||
| U.S. Treasury Bonds, 6.25%, 2023 (f) |
1,800,000 | 2,227,500 | ||||
| U.S. Treasury Bonds, 5.375%, 2031 |
286,200 | 334,809 | ||||
| U.S. Treasury Bonds, 4.5%, 2036 |
95,000 | 99,958 | ||||
| U.S. Treasury Bonds, 4.75%, 2037 |
2,986,200 | 3,263,824 | ||||
| U.S. Treasury Notes, 9.875%, 2015 |
3,015,000 | 4,230,657 | ||||
| U.S. Treasury Notes, 6.375%, 2027 |
1,410,000 | 1,811,630 | ||||
| $ | 19,274,591 | |||||
| Utilities - Electric Power – 5.0% |
||||||
| AES Corp., 8%, 2017 |
$ | 1,780,000 | $ | 1,704,350 | ||
| Allegheny Energy Supply Co. LLC, 8.25%, 2012 (n) |
370,000 | 401,141 | ||||
| Bruce Mansfield Unit, 6.85%, 2034 |
1,547,152 | 1,494,602 | ||||
| Calpine Corp., 8%, 2016 (n) |
1,050,000 | 1,044,750 | ||||
| CenterPoint Energy, Inc., 6.5%, 2018 |
400,000 | 393,449 | ||||
| Dynegy Holdings, Inc., 7.5%, 2015 |
1,335,000 | 1,081,350 | ||||
| Dynegy Holdings, Inc., 7.75%, 2019 |
635,000 | 450,850 | ||||
| Edison Mission Energy, 7%, 2017 |
1,225,000 | 935,594 | ||||
| EDP Finance B.V., 6%, 2018 (n) |
798,000 | 860,688 | ||||
| ELETROBRAS S.A., 6.875%, 2019 (z) |
135,000 | 142,425 | ||||
| Enersis S.A., 7.375%, 2014 |
509,000 | 561,093 | ||||
| Exelon Generation Co. LLC, 6.95%, 2011 |
1,492,000 | 1,600,783 | ||||
| FirstEnergy Corp., 6.8%, 2039 (z) |
1,190,000 | 1,215,501 | ||||
| HQI Transelec Chile S.A., 7.875%, 2011 |
563,000 | 592,627 | ||||
| ISA Capital do Brasil S.A., 7.875%, 2012 |
922,000 | 963,490 | ||||
| ISA Capital do Brasil S.A., 7.875%, 2012 (n) |
149,000 | 155,705 | ||||
| Mirant Americas Generation LLC, 8.3%, 2011 |
100,000 | 100,500 | ||||
| Mirant North America LLC, 7.375%, 2013 |
1,940,000 | 1,862,400 | ||||
| NiSource Finance Corp., 7.875%, 2010 |
687,000 | 722,508 | ||||
| NorthWestern Corp., 5.875%, 2014 |
861,000 | 905,215 | ||||
11
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/09 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Utilities - Electric Power – continued |
||||||
| NRG Energy, Inc., 7.375%, 2016 |
$ | 2,580,000 | $ | 2,467,125 | ||
| RRI Energy, Inc., 7.875%, 2017 |
971,000 | 861,762 | ||||
| System Energy Resources, Inc., 5.129%, 2014 (z) |
1,495,872 | 1,474,511 | ||||
| Texas Competitive Electric Holdings LLC, 10.25%, 2015 |
4,285,000 | 2,838,812 | ||||
| $ | 24,831,231 | |||||
| Total Bonds |
$ | 501,339,883 | ||||
| Floating Rate Loans (g)(r) – 2.2% |
||||||
| Aerospace – 0.3% |
||||||
| Hawker Beechcraft Acquisition Co. LLC, Letter of Credit, 2.59%, 2014 |
$ | 106,805 | $ | 79,615 | ||
| Hawker Beechcraft Acquisition Co. LLC, Term Loan, 2.37%, 2014 |
1,938,085 | 1,444,682 | ||||
| $ | 1,524,297 | |||||
| Automotive – 0.3% |
||||||
| Accuride Corp., Term Loan, 3%, 2012 |
$ | 90,346 | $ | 83,232 | ||
| Allison Transmission, Inc., Term Loan B, 3.03%, 2014 |
244,928 | 209,107 | ||||
| Federal-Mogul Corp., Term Loan B, 2.21%, 2014 |
330,238 | 250,155 | ||||
| Ford Motor Co., Term Loan B, 3.49%, 2013 |
547,542 | 474,445 | ||||
| Goodyear Tire & Rubber Co., Second Lien Term Loan, 2.02%, 2014 |
480,501 | 443,262 | ||||
| $ | 1,460,201 | |||||
| Broadcasting – 0.0% |
||||||
| Gray Television, Inc., Term Loan, 3.78%, 2014 |
$ | 90,048 | $ | 64,947 | ||
| Local TV LLC, Term Loan B, 2013 (o) |
48,762 | 33,321 | ||||
| $ | 98,268 | |||||
| Building – 0.0% |
||||||
| Building Materials Holding Corp., Term Loan, 3.06%, 2014 |
$ | 103,998 | $ | 94,898 | ||
| Business Services – 0.2% |
||||||
| First Data Corp., Term Loan B-1, 3.01%, 2014 |
$ | 1,418,030 | $ | 1,181,396 | ||
| Cable TV – 0.2% |
||||||
| Charter Communications Operating LLC, Term Loan, 6.25%, 2014 |
$ | 919,938 | $ | 853,817 | ||
| Electronics – 0.0% |
||||||
| Freescale Semiconductor, Inc., Term Loan B, 2.03%, 2013 |
$ | 285,057 | $ | 212,724 | ||
| Gaming & Lodging – 0.2% |
||||||
| MGM Mirage, Term Loan, 2011 (o) |
$ | 1,071,418 | $ | 907,491 | ||
| Retailers – 0.1% |
||||||
| Toys “R” Us, Inc., Term Loan B, 4.51%, 2012 |
$ | 238,621 | $ | 227,457 | ||
| Specialty Chemicals – 0.2% |
||||||
| LyondellBasell, DIP Term Loan, 9.16%, 2009 (q) |
$ | 249,041 | $ | 257,913 | ||
| LyondellBasell, DIP Term Loan B-3, 5.8%, 2009 |
248,796 | 229,721 | ||||
| LyondellBasell, Dutch Tranche Revolving Credit Loan, 3.76%, 2013 |
15,855 | 7,663 | ||||
| LyondellBasell, Dutch Tranche Term Loan, 3.76%, 2013 |
36,829 | 17,801 | ||||
| LyondellBasell, German Tranche Term Loan B-1, 4.01%, 2014 |
45,517 | 22,000 | ||||
| LyondellBasell, German Tranche Term Loan B-2, 4.01%, 2014 |
45,517 | 22,000 | ||||
| LyondellBasell, German Tranche Term Loan B-3, 4.01%, 2014 |
45,517 | 22,000 | ||||
| LyondellBasell, U.S. Tranche Revolving Credit Loan, 3.76%, 2013 |
59,455 | 28,736 | ||||
| LyondellBasell, U.S. Tranche Term Loan, 3.76%, 2013 |
113,278 | 54,751 | ||||
| LyondellBasell, U.S. Tranche Term Loan B-1, 7%, 2014 |
197,512 | 95,463 | ||||
| LyondellBasell, U.S. Tranche Term Loan B-2, 7%, 2014 |
197,512 | 95,463 | ||||
| LyondellBasell, U.S. Tranche Term Loan B-3, 7%, 2014 |
197,512 | 95,463 | ||||
| $ | 948,974 | |||||
| Specialty Stores – 0.2% |
||||||
| Michaels Stores, Inc., Term Loan B, 2.56%, 2013 |
$ | 822,150 | $ | 725,291 | ||
12
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/09 - continued
| Issuer |
Shares/Par | Value ($) | |||||
| Floating Rate Loans (g)(r) – continued |
|||||||
| Utilities - Electric Power – 0.5% |
|||||||
| Calpine Corp., Term Loan, 3.47%, 2014 |
$ | 1,000,969 | $ | 918,545 | |||
| Texas Competitive Electric Holdings Co. LLC, Term Loan B-3, 3.76%, 2014 |
2,362,153 | 1,787,644 | |||||
| $ | 2,706,189 | ||||||
| Total Floating Rate Loans |
$ | 10,941,003 | |||||
| Common Stocks – 0.0% |
|||||||
| Printing & Publishing – 0.0% |
|||||||
| American Media, Inc. (a) |
1,991 | $ | 2,667 | ||||
| Golden Books Family Entertainment, Inc. (a) |
3,683 | 0 | |||||
| Total Common Stocks |
$ | 2,667 | |||||
| Preferred Stocks – 0.0% |
|||||||
| Financial Institutions – 0.0% |
|||||||
| Preferred Blocker, Inc., 7% (z) |
425 | $ | 197,718 | ||||
| Money Market Funds (v) – 5.6% |
|||||||
| MFS Institutional Money Market Portfolio, 0.2%, at Net Asset Value |
28,082,177 | $ | 28,082,177 | ||||
| Total Investments |
$ | 540,563,448 | |||||
| Other Assets, Less Liabilities – (7.7)% |
(38,878,323 | ) | |||||
| Net Assets – 100.0% |
$ | 501,685,125 | |||||
| (a) | Non-income producing security. |
| (d) | Non-income producing security - in default. |
| (f) | All or a portion of the security has been segregated as collateral for open futures contracts. |
| (g) | The rate shown represents a weighted average coupon rate on settled positions at period end, unless otherwise indicated. |
| (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 $92,830,000, representing 18.5% of net assets. |
| (o) | All or a portion of this position has not settled. Upon settlement date, interest rates for unsettled amounts will be determined. The rate shown represents the weighted average coupon rate for settled amounts. |
| (p) | Payment-in-kind security. |
| (q) | All or a portion of this position represents an unfunded loan commitment. The rate shown represents a weighted average coupon rate on the full position, including the unfunded loan commitment which has no current coupon rate. |
| (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. |
| (t) | Interest received was less than stated coupon rate. |
| (v) | Underlying fund that is available only to investment companies managed by MFS. The rate quoted 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 | Current Market Value | |||||
| Alliance One International, Inc., 10%, 2016 |
8/12/09 | $ | 219,384 | $ | 222,187 | |||
| American Casino & Entertainment, 11%, 2014 |
8/11/09 | 332,481 | 333,000 | |||||
| American Media Operations, Inc., 9%, 2013 |
1/29/09 - 4/15/09 | 6,705 | 5,558 | |||||
| American Media Operations, Inc., 14%, 2013 |
1/29/09 - 4/15/09 | 59,271 | 56,197 | |||||
| Anheuser-Busch Companies, Inc., 6.875%, 2019 |
5/11/09 | 1,295,112 | 1,454,155 | |||||
| Bayview Financial Revolving Mortgage Loan Trust, FRN, 1.085%, 2040 |
3/01/06 | 1,160,000 | 483,836 | |||||
| Bosphorus Financial Services Ltd., FRN, 2.683%, 2012 |
3/08/05 | 937,500 | 822,405 | |||||
| CCL Finance Ltd., 9.5%, 2014 |
8/04/09 | 1,718,538 | 1,778,810 | |||||
| Cellu Tissue Holdings, Inc., 11.5%, 2014 |
5/19/09 | 743,066 | 804,650 | |||||
| DLJ Commercial Mortgage Corp., 6.04%, 2031 |
7/23/04 | 1,969,453 | 1,955,511 | |||||
| ELETROBRAS S.A., 6.875%, 2019 |
7/23/09 | 133,801 | 142,425 | |||||
| Ecopetrol S.A., 7.625%, 2019 |
7/16/09 | 591,873 | 633,382 | |||||
13
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/09 - continued
| Restricted Securities |
Acquisition Date |
Cost | Current Market Value |
||||||
| FirstEnergy Corp., 6.8%, 2039 |
8/04/09 | $ | 1,185,894 | $ | 1,215,501 | ||||
| Groupe BPCE S.A., 12.5%, 2049 |
7/31/09 | 2,164,633 | 2,191,140 | ||||||
| Local TV Finance LLC, 9.25%, 2015 |
11/09/07 - 6/01/09 | 820,969 | 234,675 | ||||||
| Majapahit Holding B.V., 8%, 2019 |
8/03/09 - 8/06/09 | 493,904 | 497,510 | ||||||
| Mediacom LLC, 9.125%, 2019 |
8/11/09 | 185,487 | 188,100 | ||||||
| NII Holdings, Inc., 10%, 2016 |
8/13/09 | 243,943 | 247,500 | ||||||
| News America, Inc., 6.9%, 2039 |
8/20/09 | 204,594 | 215,747 | ||||||
| PNC Mortgage Acceptance Corp., FRN, 7.1%, 2032 |
3/25/08 | 2,510,000 | 2,429,050 | ||||||
| Penn National Gaming, Inc., 8.75%, 2019 |
8/10/09 | 140,000 | 138,950 | ||||||
| Petroleum Co. of Trinidad & Tobago Ltd., 9.75%, 2019 |
8/11/09 | 263,917 | 288,942 | ||||||
| Preferred Blocker, Inc., 7% (Preferred Stock) |
12/26/08 | 327,250 | 197,718 | ||||||
| Spirit Master Funding LLC, 5.05%, 2023 |
7/15/05 | 1,614,125 | 986,112 | ||||||
| System Energy Resources, Inc., 5.129%, 2014 |
4/16/04 | 1,495,872 | 1,474,511 | ||||||
| Total Restricted Securities |
$ | 18,997,572 | |||||||
| % of Net Assets |
3.8 | % | |||||||
The following abbreviations are used in this report and are defined:
| CDO | Collateralized Debt Obligation | |
| CLN | Credit-Linked Note | |
| DIP | Debtor-in-Possession | |
| 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 |
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 |
| EUR | Euro |
| GBP | British Pound |
| IDR | Indonesian Rupiah |
| INR | Indian Rupee |
| JPY | Japanese Yen |
| SEK | Swedish Krona |
| TRY | Turkish Lira |
| ZAR | South African Rand |
See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.
14
MFS Charter Income Trust
Supplemental Information (Unaudited) 8/31/09
(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. For securities for which there were no sales reported that day, equity securities 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. For securities held short for which there were no sales reported for that day, the position is generally valued at the last quoted daily ask 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. Futures contracts are generally valued at last posted settlement price as provided by a third-party pricing service on the market on which they are primarily traded. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation as provided by a third-party pricing service on the market on which such futures contracts are primarily traded. Forward foreign currency 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. Swaps are generally valued at valuations provided by a third-party pricing service. 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. Events that occur on a frequent basis 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 affect 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.
Various inputs are used in determining the value of the fund’s assets or liabilities carried at market value. 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 futures, forwards, swap contracts, and written options. The following is a summary of the levels used as of August 31, 2009 in valuing the fund’s assets or liabilities carried at market value:
15
MFS Charter Income Trust
Supplemental Information (Unaudited) 8/31/09 - continued
(1) Investment Valuations - continued
The following is a summary of the levels used as of August 31, 2009 in valuing the fund’s assets or liabilities carried at market value:
| Investments at Value |
Level 1 | Level 2 | Level 3 | Total | ||||||||||
| Equity Securities |
$ | — | $ | 197,718 | $ | 2,667 | $ | 200,385 | ||||||
| U.S. Treasury Bonds & U.S. Government Agency & Equivalents |
— | 22,715,249 | — | 22,715,249 | ||||||||||
| Non-U.S. Sovereign Debt |
— | 126,072,827 | — | 126,072,827 | ||||||||||
| Corporate Bonds |
— | 243,920,463 | — | 243,920,463 | ||||||||||
| Residential Mortgage-Backed Securities |
— | 36,717,347 | — | 36,717,347 | ||||||||||
| Commercial Mortgage-Backed Securities |
— | 30,499,186 | — | 30,499,186 | ||||||||||
| Asset-Backed Securities (including CDOs) |
— | 633,836 | — | 633,836 | ||||||||||
| Foreign Bonds |
— | 38,849,631 | — | 38,849,631 | ||||||||||
| Floating Rate Loans |
— | 10,941,003 | — | 10,941,003 | ||||||||||
| Other Fixed Income Securities |
— | 1,931,344 | — | 1,931,344 | ||||||||||
| Mutual Funds |
28,082,177 | — | — | 28,082,177 | ||||||||||
| Total Investments |
$ | 28,082,177 | $ | 512,478,604 | $ | 2,667 | $ | 540,563,448 | ||||||
| Other Financial Instruments |
||||||||||||||
| Futures |
$ | 4,058 | $ | — | $ | — | $ | 4,058 | ||||||
| Swaps |
— | 4,323 | — | 4,323 | ||||||||||
| Forward Currency Contracts |
— | (816,477 | ) | — | (816,477 | ) | ||||||||
For further information regarding security characteristics, see the Portfolio of Investments.
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 11/30/08 |
$ | — | ||
| Accrued discounts/premiums |
— | |||
| Realized gain (loss) |
— | |||
| Change in unrealized appreciation |
(1,594 | ) | ||
| Net purchases (sales) |
4,261 | |||
| Transfers in and/or out of Level 3 |
— | |||
| Balance as of 8/31/09 |
$ | 2,667 | ||
(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 |
$ | 536,092,271 | ||
| Gross unrealized appreciation |
$ | 27,797,820 | ||
| Gross unrealized depreciation |
(23,326,643 | ) | ||
| Net unrealized appreciation (depreciation) |
$ | 4,471,177 | ||
The aggregate cost above includes prior fiscal year end tax adjustments.
16
MFS Charter Income Trust
Supplemental Information (Unaudited) 8/31/09 - continued
(3) Derivative Contracts at 8/31/09
Forward Foreign Currency Exchange Contracts at 8/31/09
| Type |
Currency | Counterparty |
Contracts to Deliver/Receive |
Settlement Date Range |
In Exchange For | Contracts at Value |
Net Unrealized Appreciation (Depreciation) |
|||||||||||
| Asset Derivatives |
||||||||||||||||||
| BUY |
AUD | UBS AG | 1,481,284 | 10/27/09 | $ | 1,235,895 | $ | 1,246,536 | $ | 10,641 | ||||||||
| SELL |
CAD | UBS AG | 1,809,831 | 10/13/09 | 1,663,946 | 1,653,333 | 10,613 | |||||||||||
| BUY |
EUR | UBS AG | 378,725 | 9/17/09 | 538,971 | 542,949 | 3,978 | |||||||||||
| BUY |
INR | Deutsche Bank AG | 55,054,935 | 9/22/09 | 1,123,799 | 1,126,182 | 2,383 | |||||||||||
| BUY |
JPY | UBS AG | 404,692,015 | 10/15/09 | 4,303,952 | 4,350,477 | 46,525 | |||||||||||
| SELL |
JPY | JPMorgan Chase Bank | 2,040,989,486 | 10/15/09 | 22,099,393 | 21,940,828 | 158,565 | |||||||||||
| BUY |
SEK | UBS AG | 6,494,135 | 10/28/09 | 910,104 | 912,511 | 2,407 | |||||||||||
| BUY |
TRY | HSBC Bank | 1,811,597 | 9/28/09 | 1,195,458 | 1,200,556 | 5,098 | |||||||||||
| $ | 240,210 | |||||||||||||||||
| Liability Derivatives |
||||||||||||||||||
| BUY |
BRL | HSBC Bank | 2,439,832 | 9/08/09 | $ | 1,327,785 | $ | 1,293,155 | $ | (34,630 | ) | |||||||
| SELL |
CHF | Credit Suisse Group | 1,288,224 | 10/15/09 | 1,205,074 | 1,217,026 | (11,952 | ) | ||||||||||
| SELL |
CHF | HSBC Bank | 1,301,746 | 10/15/09 | 1,216,000 | 1,229,801 | (13,801 | ) | ||||||||||
| SELL |
EUR | Barclays Bank PLC | 1,113,306 | 9/17/09 | 1,574,000 | 1,596,062 | (22,062 | ) | ||||||||||
| SELL |
EUR | Deutsche Bank AG | 178,000 | 9/17/09 | 251,078 | 255,185 | (4,107 | ) | ||||||||||
| SELL |
EUR | JPMorgan Chase Bank | 310,840 | 9/17/09-10/15/09 | 436,960 | 445,628 | (8,668 | ) | ||||||||||
| SELL |
EUR | Merrill Lynch International Bank | 404,294 | 9/17/09 | 572,836 | 579,606 | (6,770 | ) | ||||||||||
| SELL |
EUR | UBS AG | 30,610,061 | 9/17/09 | 43,131,412 | 43,883,326 | (751,914 | ) | ||||||||||
| SELL |
GBP | Barclays Bank PLC | 1,020,056 | 10/15/09 | 1,652,695 | 1,660,471 | (7,776 | ) | ||||||||||
| SELL |
GBP | Deutsche Bank AG | 1,020,056 | 10/15/09 | 1,653,185 | 1,660,471 | (7,286 | ) | ||||||||||
| BUY |
IDR | JPMorgan Chase Bank | 12,066,614,146 | 9/08/09 | 1,215,168 | 1,195,721 | (19,447 | ) | ||||||||||
| SELL |
JPY | HSBC Bank | 390,391,304 | 10/15/09 | 4,091,802 | 4,196,743 | (104,941 | ) | ||||||||||
| SELL |
ZAR | Deutsche Bank AG | 9,910,137 | 9/21/09 | 1,205,906 | 1,269,239 | (63,333 | ) | ||||||||||
| $ | (1,056,687 | ) | ||||||||||||||||
Futures Contracts Outstanding at 8/31/09
| Description |
Currency | Contracts | Value | Expiration Date |
Unrealized Appreciation (Depreciation) | |||||||
| Asset Derivatives |
||||||||||||
| Interest Rate Futures |
||||||||||||
| U.S. Treasury Bond 30 yr (Long) |
USD | 28 | $ | 3,353,000 | Dec-09 | $ | 4,058 | |||||
Swap Agreements at 8/31/09
| Expiration |
Notional Amount |
Counterparty |
Cash Flows to Receive |
Cash Flows to Pay |
Fair Value | ||||||||
| Asset Derivatives |
|||||||||||||
| Credit Default Swaps |
|||||||||||||
| 6/20/13 |
USD | 1,120,000 | Morgan Stanley Capital Services, Inc. | (1) | 1.48% (fixed rate) | $ | 4,323 | ||||||
| (1) | Fund, as protection buyer, to receive notional amount upon a defined credit event by Weyerhauser Co., 7.125%, 7/15/23. |
At August 31, 2009, the fund had sufficient cash and/or other liquid securities to cover any commitments under these derivative contracts.
17
MFS Charter Income Trust
Supplemental Information (Unaudited) 8/31/09 - continued
(4) Transactions in Underlying 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 affiliated issuers:
| Underlying Funds |
Beginning Shares/Par Amount |
Acquisitions Shares/Par Amount |
Dispositions Shares/Par Amount |
Ending Shares/Par Amount | |||||||||
| MFS Institutional Money Market Portfolio |
— | 144,898,633 | (116,816,456 | ) | 28,082,177 | ||||||||
| Underlying Funds |
Realized Gain (Loss) |
Capital Gain Distributions |
Dividend Income |
Ending Value | |||||||||
| MFS Institutional Money Market Portfolio |
$ | — | $ | — | $ | 28,889 | $ | 28,082,177 | |||||
(5) Country Weightings
Country weighting percentages of portfolio holdings based on total net assets as of August 31, 2009, are as follows:
| United States |
67.5 | % | |
| Japan |
4.6 | % | |
| Italy |
2.5 | % | |
| United Kingdom |
2.1 | % | |
| Qatar |
1.9 | % | |
| France |
1.8 | % | |
| Germany |
1.8 | % | |
| Canada |
1.8 | % | |
| Brazil |
1.7 | % | |
| Other Countries |
14.3 | % |
The country weighting percentages include both accrued interest amounts and the equivalent exposure from any derivative holdings, if applicable.
18
| 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.
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)* | MARIA F. DWYER | |
| Maria F. Dwyer, President |
Date: October 16, 2009
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)* | MARIA F. DWYER | |
| Maria F. Dwyer, President (Principal Executive Officer) |
Date: October 16, 2009
| By (Signature and Title)* | JOHN M. CORCORAN | |
| John M. Corcoran, Treasurer (Principal Financial Officer and Accounting Officer) |
Date: October 16, 2009
| * | Print name and title of each signing officer under his or her signature. |