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, 2008
| ITEM 1. | SCHEDULE OF INVESTMENTS. |
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – 96.0% |
||||||
| Aerospace – 0.4% |
||||||
| Bombardier, Inc., 8%, 2014 (n) |
$ | 851,000 | $ | 876,530 | ||
| Hawker Beechcraft Acquisition, 8.5%, 2015 |
400,000 | 403,000 | ||||
| Hawker Beechcraft Acquisition Co. LLC, 9.75%, 2017 |
725,000 | 710,500 | ||||
| $ | 1,990,030 | |||||
| Airlines – 0.1% |
||||||
| Continental Airlines, Inc., 7.339%, 2014 |
$ | 431,000 | $ | 322,172 | ||
| Asset Backed & Securitized – 4.2% |
||||||
| Asset Securitization Corp., FRN, 8.63%, 2029 |
$ | 1,413,204 | $ | 1,549,304 | ||
| Bayview Financial Acquisition Trust, FRN, 5.483%, 2041 |
404,000 | 366,098 | ||||
| Bayview Financial Revolving Mortgage Loan Trust, FRN, 3.27%, 2040 (z) |
1,160,000 | 849,349 | ||||
| Citigroup/Deutsche Bank Commercial Mortgage Trust, FRN, 5.366%, 2049 |
1,605,000 | 1,332,253 | ||||
| Commercial Mortgage Pass-Through Certificates, FRN, 5.986%, 2046 |
230,000 | 203,810 | ||||
| Countrywide Asset-Backed Certificates, FRN, 5.147%, 2035 |
2,000,000 | 1,747,712 | ||||
| Credit Suisse Mortgage Capital Certificate, 5.343%, 2039 |
1,080,744 | 912,301 | ||||
| Crest Ltd., CDO, 7%, 2040 |
2,000,000 | 814,620 | ||||
| DLJ Commercial Mortgage Corp., 6.04%, 2031 (z) |
2,000,000 | 1,891,516 | ||||
| First Union-Lehman Brothers Bank of America, FRN, 0.542%, 2035 (i) |
24,894,875 | 387,088 | ||||
| First Union-Lehman Brothers Commercial Mortgage Trust, 7%, 2029 (n) |
612,520 | 632,744 | ||||
| JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 6.26%, 2051 |
185,000 | 115,187 | ||||
| Merrill Lynch Mortgage Trust, FRN, 6.022%, 2050 |
185,000 | 113,759 | ||||
| Morgan Stanley Capital I, Inc., 5.168%, 2042 |
919,020 | 872,459 | ||||
| Mortgage Capital Funding, Inc., FRN, 2.108%, 2031 (i) |
986,144 | 549 | ||||
| Nationslink Funding Corp., 5%, 2031 (z) |
1,568,000 | 1,515,660 | ||||
| New Century Home Equity Loan Trust, FRN, 4.532%, 2035 |
2,500,000 | 2,456,068 | ||||
| PNC Mortgage Acceptance Corp., FRN, 7.1%, 2032 (z) |
2,510,000 | 2,332,079 | ||||
| Spirit Master Funding LLC, 5.05%, 2023 (z) |
1,717,847 | 1,341,309 | ||||
| Structured Asset Securities Corp., FRN, 4.67%, 2035 |
1,283,653 | 1,227,872 | ||||
| Wachovia Bank Commercial Mortgage Trust, FRN, 5.884%, 2047 |
1,503,155 | 916,194 | ||||
| $ | 21,577,931 | |||||
| Automotive – 0.8% |
||||||
| Accuride Corp., 8.5%, 2015 |
$ | 280,000 | $ | 180,600 | ||
| Allison Transmission, Inc., 11%, 2015 (n) |
1,380,000 | 1,269,600 | ||||
| DaimlerChrysler N.A. Holdings Corp., 8.5%, 2031 |
400,000 | 411,313 | ||||
| FCE Bank PLC, 7.125%, 2012 |
EUR | 500,000 | 608,743 | |||
| Ford Motor Credit Co. LLC, 9.75%, 2010 |
$ | 665,000 | 579,355 | |||
| Ford Motor Credit Co. LLC, 12%, 2015 |
362,000 | 306,213 | ||||
| Ford Motor Credit Co. LLC, 8%, 2016 |
570,000 | 410,704 | ||||
| General Motors Corp., 8.375%, 2033 |
404,000 | 199,980 | ||||
| $ | 3,966,508 | |||||
| Broadcasting – 1.9% |
||||||
| Allbritton Communications Co., 7.75%, 2012 |
$ | 2,085,000 | $ | 1,866,075 | ||
| CBS Corp., 6.625%, 2011 |
1,036,000 | 1,040,379 | ||||
| Clear Channel Communications, Inc., 6.25%, 2011 |
1,240,000 | 982,700 | ||||
| DIRECTV Holdings LLC, 7.625%, 2016 (n) |
1,850,000 | 1,845,375 | ||||
| Grupo Televisa S.A., 6%, 2018 |
262,000 | 256,257 | ||||
| Grupo Televisa S.A., 8.5%, 2032 |
192,000 | 225,279 | ||||
| Lamar Media Corp., 7.25%, 2013 |
675,000 | 641,250 | ||||
| Lamar Media Corp., 6.625%, 2015 |
205,000 | 181,937 | ||||
| Lamar Media Corp., “C”, 6.625%, 2015 |
245,000 | 217,131 | ||||
| LIN TV Corp., 6.5%, 2013 |
550,000 | 451,000 | ||||
| Local TV Finance LLC, 9.25%, 2015 (n)(p) |
400,000 | 296,000 | ||||
| Newport Television LLC, 13%, 2017 (n)(p) |
105,000 | 79,275 | ||||
| News America, Inc., 6.2%, 2034 |
542,000 | 492,548 | ||||
| Nexstar Broadcasting Group, Inc., 7%, 2014 |
680,000 | 557,600 | ||||
1
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Broadcasting – continued |
||||||
| Univision Communications, Inc., 9.75%, 2015 (n)(p) |
$ | 530,000 | $ | 378,950 | ||
| $ | 9,511,756 | |||||
| Brokerage & Asset Managers – 1.0% |
||||||
| INVESCO PLC, 5.625%, 2012 |
$ | 1,440,000 | $ | 1,390,435 | ||
| Lehman Brothers Holdings, Inc., 6.5%, 2017 (a) |
1,260,000 | 1,115,367 | ||||
| Morgan Stanley, 5.75%, 2016 |
662,000 | 593,861 | ||||
| Morgan Stanley Group, Inc., 6.625%, 2018 |
652,000 | 605,788 | ||||
| Nuveen Investments, Inc., 10.5%, 2015 (n) |
1,355,000 | 1,175,463 | ||||
| $ | 4,880,914 | |||||
| Building – 0.5% |
||||||
| Associated Materials, Inc., 9.75%, 2012 |
$ | 275,000 | $ | 274,312 | ||
| Building Materials Corp. of America, 7.75%, 2014 |
295,000 | 243,375 | ||||
| CRH America, Inc., 8.125%, 2018 |
898,000 | 915,878 | ||||
| Nortek Holdings, Inc., 10%, 2013 (n) |
200,000 | 187,000 | ||||
| Ply Gem Industries, Inc., 11.75%, 2013 (n) |
1,290,000 | 1,173,900 | ||||
| $ | 2,794,465 | |||||
| Business Services – 0.5% |
||||||
| First Data Corp., 9.875%, 2015 (n) |
$ | 1,490,000 | $ | 1,285,125 | ||
| SunGard Data Systems, Inc., 10.25%, 2015 |
1,335,000 | 1,345,013 | ||||
| $ | 2,630,138 | |||||
| Cable TV – 1.5% |
||||||
| CCH I Holdings LLC, 11%, 2015 |
$ | 1,940,000 | $ | 1,488,950 | ||
| CCH II Holdings LLC, 10.25%, 2010 |
700,000 | 672,000 | ||||
| CCO Holdings LLC, 8.75%, 2013 |
3,300,000 | 3,110,250 | ||||
| CSC Holdings, Inc., 8.5%, 2015 (n) |
230,000 | 231,150 | ||||
| Mediacom LLC, 9.5%, 2013 |
50,000 | 48,375 | ||||
| NTL Cable PLC, 9.125%, 2016 |
765,000 | 728,662 | ||||
| TCI Communications, Inc., 9.8%, 2012 |
1,169,000 | 1,314,964 | ||||
| $ | 7,594,351 | |||||
| Chemicals – 1.2% |
||||||
| Braskem S.A., 7.25%, 2018 (z) |
$ | 621,000 | $ | 617,895 | ||
| Momentive Performance Materials, Inc., 9.75%, 2014 |
75,000 | 67,687 | ||||
| Momentive Performance Materials, Inc., 11.5%, 2016 |
1,672,000 | 1,304,160 | ||||
| Mosaic Co., 7.875%, 2016 (n) |
1,525,000 | 1,603,737 | ||||
| Nalco Co., 7.75%, 2011 |
415,000 | 420,188 | ||||
| Nalco Co., 8.875%, 2013 |
45,000 | 46,800 | ||||
| Yara International A.S.A., 5.25%, 2014 (n) |
2,000,000 | 1,917,832 | ||||
| $ | 5,978,299 | |||||
| Computer Software – 0.4% |
||||||
| Seagate Technology HDD Holdings, 6.375%, 2011 |
$ | 1,950,000 | $ | 1,923,188 | ||
| Conglomerates – 0.4% |
||||||
| Actuant Corp., 6.875%, 2017 |
$ | 1,005,000 | $ | 984,900 | ||
| Kennametal, Inc., 7.2%, 2012 |
1,140,000 | 1,219,859 | ||||
| $ | 2,204,759 | |||||
| Consumer Goods & Services – 1.0% |
||||||
| Corrections Corp. of America, 6.25%, 2013 |
$ | 215,000 | $ | 210,700 | ||
| Fortune Brands, Inc., 5.125%, 2011 |
1,150,000 | 1,153,403 | ||||
| Jarden Corp., 7.5%, 2017 |
1,020,000 | 907,800 | ||||
| KAR Holdings, Inc., 10%, 2015 |
110,000 | 92,675 | ||||
| Service Corp. International, 7%, 2017 |
2,525,000 | 2,354,563 | ||||
| Ticketmaster, 10.75%, 2016 (z) |
350,000 | 358,750 | ||||
| $ | 5,077,891 | |||||
2
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Containers – 0.6% |
||||||
| Crown Americas LLC, 7.625%, 2013 |
$ | 500,000 | $ | 508,750 | ||
| Crown Americas LLC, 7.75%, 2015 |
565,000 | 579,125 | ||||
| Greif, Inc., 6.75%, 2017 |
855,000 | 829,350 | ||||
| Owens-Brockway Glass Container, Inc., 8.25%, 2013 |
940,000 | 968,200 | ||||
| $ | 2,885,425 | |||||
| Defense Electronics – 0.9% |
||||||
| BAE Systems Holdings, Inc., 4.75%, 2010 (n) |
$ | 790,000 | $ | 803,787 | ||
| BAE Systems Holdings, Inc., 5.2%, 2015 (n) |
750,000 | 715,294 | ||||
| L-3 Communications Corp., 5.875%, 2015 |
1,475,000 | 1,390,187 | ||||
| L-3 Communications Corp., 6.375%, 2015 |
1,500,000 | 1,436,250 | ||||
| $ | 4,345,518 | |||||
| Electronics – 0.1% |
||||||
| Flextronics International Ltd., 6.25%, 2014 |
$ | 370,000 | $ | 341,325 | ||
| Emerging Market Quasi-Sovereign – 2.3% |
||||||
| Banco Nacional de Desenvolvimento Economico e Social, 6.369%, 2018 (n) |
$ | 1,050,000 | $ | 1,057,875 | ||
| Corporacion Nacional del Cobre de Chile, 4.75%, 2014 |
1,066,000 | 1,044,695 | ||||
| Corporacion Nacional del Cobre de Chile, 5.625%, 2035 |
1,900,000 | 1,694,348 | ||||
| Gazprom International S.A., 7.201%, 2020 |
890,340 | 885,087 | ||||
| Majapahit Holding B.V., 7.25%, 2017 (n) |
1,478,000 | 1,359,760 | ||||
| National Power Corp., FRN, 7.06%, 2011 |
780,000 | 816,197 | ||||
| Pemex Project Funding Master Trust, 5.75%, 2018 (n) |
2,006,000 | 1,970,803 | ||||
| Ras Laffan Liquefied Natural Gas Co. Ltd., 8.294%, 2014 (n) |
2,490,000 | 2,753,449 | ||||
| $ | 11,582,214 | |||||
| Emerging Market Sovereign – 2.4% |
||||||
| Federative Republic of Brazil, 6%, 2017 |
$ | 4,176,000 | $ | 4,276,224 | ||
| Gabonese Republic, 8.2%, 2017 (n) |
849,000 | 865,980 | ||||
| Republic of Argentina, FRN, 3.127%, 2012 |
1,947,150 | 1,544,774 | ||||
| Republic of Colombia, 7.375%, 2017 |
1,393,000 | 1,532,300 | ||||
| Republic of Indonesia, 6.875%, 2017 (n) |
171,000 | 171,855 | ||||
| Republic of Indonesia, 6.875%, 2018 (n) |
531,000 | 530,336 | ||||
| Republic of Indonesia, 6.875%, 2018 |
204,000 | 203,745 | ||||
| Republic of Indonesia, 7.75%, 2038 (n) |
693,000 | 686,070 | ||||
| Republic of Panama, 7.25%, 2015 |
65,000 | 70,525 | ||||
| Republic of Panama, 9.375%, 2029 |
553,000 | 731,343 | ||||
| Republic of Peru, 0%, 2009 |
PEN | 1,000,000 | 332,018 | |||
| Republic of Peru, 0%, 2009 |
PEN | 3,100,000 | 999,111 | |||
| Republic of Philippines, 9.375%, 2017 |
$ | 449,000 | 536,555 | |||
| $ | 12,480,836 | |||||
| Energy – Independent – 1.3% |
||||||
| Chaparral Energy, Inc., 8.875%, 2017 |
$ | 295,000 | $ | 255,912 | ||
| Chesapeake Energy Corp., 6.375%, 2015 |
1,030,000 | 957,900 | ||||
| Chesapeake Energy Corp., 6.875%, 2016 |
1,070,000 | 1,027,200 | ||||
| Forest Oil Corp., 7.25%, 2019 |
210,000 | 193,200 | ||||
| Hilcorp Energy I LP, 7.75%, 2015 (n) |
500,000 | 452,500 | ||||
| Mariner Energy, Inc., 8%, 2017 |
510,000 | 466,650 | ||||
| Newfield Exploration Co., 6.625%, 2014 |
435,000 | 409,444 | ||||
| OPTI Canada, Inc., 8.25%, 2014 |
575,000 | 574,281 | ||||
| Plains Exploration & Production Co., 7%, 2017 |
685,000 | 616,500 | ||||
| Quicksilver Resources, Inc., 7.125%, 2016 |
750,000 | 652,500 | ||||
| SandRidge Energy, Inc., 8.625%, 2015 (n)(p) |
165,000 | 159,638 | ||||
| SandRidge Energy, Inc., 8%, 2018 (n) |
790,000 | 740,625 | ||||
| Southwestern Energy Co., 7.5%, 2018 (n) |
330,000 | 337,425 | ||||
| $ | 6,843,775 | |||||
3
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Energy - Integrated – 0.1% |
||||||
| Petroleum Co. of Trinidad & Tobago Ltd., 6%, 2022 (n) |
$ | 430,000 | $ | 414,563 | ||
| Entertainment – 0.5% |
||||||
| AMC Entertainment, Inc., 11%, 2016 |
$ | 700,000 | $ | 710,500 | ||
| Marquee Holdings, Inc., 9.505%, 2014 |
205,000 | 162,975 | ||||
| Turner Broadcasting System, Inc., 8.375%, 2013 |
1,784,000 | 1,927,880 | ||||
| $ | 2,801,355 | |||||
| Financial Institutions – 0.7% |
||||||
| General Motors Acceptance Corp., 6.875%, 2011 |
$ | 2,494,000 | $ | 1,547,627 | ||
| General Motors Acceptance Corp., 8%, 2031 |
389,000 | 209,807 | ||||
| ILFC E-Capital Trust I, 5.9% to 2010, FRN to 2065 (n) |
2,500,000 | 1,828,705 | ||||
| $ | 3,586,139 | |||||
| Food & Beverages – 0.5% |
||||||
| ARAMARK Corp., 8.5%, 2015 |
$ | 464,000 | $ | 467,480 | ||
| B&G Foods, Inc., 8%, 2011 |
170,000 | 166,600 | ||||
| Dean Foods Co., 7%, 2016 |
1,000,000 | 925,000 | ||||
| Del Monte Corp., 6.75%, 2015 |
125,000 | 117,500 | ||||
| General Mills, Inc., 5.65%, 2012 |
260,000 | 266,363 | ||||
| Tyson Foods, Inc., 6.85%, 2016 |
912,000 | 859,887 | ||||
| $ | 2,802,830 | |||||
| Forest & Paper Products – 1.1% |
||||||
| Buckeye Technologies, Inc., 8.5%, 2013 |
$ | 460,000 | $ | 462,300 | ||
| Georgia-Pacific Corp., 7.125%, 2017 (n) |
765,000 | 709,537 | ||||
| Georgia-Pacific Corp., 8%, 2024 |
140,000 | 128,100 | ||||
| Graphic Packaging International Corp., 9.5%, 2013 |
1,090,000 | 1,024,600 | ||||
| International Paper Co., 7.4%, 2014 |
1,500,000 | 1,521,217 | ||||
| Smurfit-Stone Container Corp., 8%, 2017 |
905,000 | 724,000 | ||||
| Stora Enso Oyj, 6.404%, 2016 (n) |
1,560,000 | 1,264,661 | ||||
| $ | 5,834,415 | |||||
| Gaming & Lodging – 1.3% |
||||||
| Firekeepers Development Authority, 13.875%, 2015 (z) |
$ | 270,000 | $ | 249,075 | ||
| Harrah’s Operating Co., Inc., 5.5%, 2010 |
250,000 | 210,000 | ||||
| Harrah’s Operating Co., Inc., 10.75%, 2016 (n) |
735,000 | 494,287 | ||||
| Harrah’s Operating Co., Inc., 10.75%, 2018 (n)(p) |
115,000 | 69,000 | ||||
| Host Hotels & Resorts, Inc., 7.125%, 2013 |
665,000 | 626,762 | ||||
| Host Hotels & Resorts, Inc., 6.75%, 2016 |
330,000 | 283,800 | ||||
| Mandalay Resort Group, 9.375%, 2010 |
450,000 | 441,000 | ||||
| MGM Mirage, 8.375%, 2011 |
1,805,000 | 1,638,037 | ||||
| MGM Mirage, 6.75%, 2013 |
230,000 | 200,100 | ||||
| Pinnacle Entertainment, Inc., 7.5%, 2015 |
570,000 | 441,750 | ||||
| Scientific Games Corp., 6.25%, 2012 |
380,000 | 358,150 | ||||
| Station Casinos, Inc., 6%, 2012 |
565,000 | 394,088 | ||||
| Station Casinos, Inc., 6.5%, 2014 |
25,000 | 11,250 | ||||
| Station Casinos, Inc., 6.875%, 2016 |
980,000 | 426,300 | ||||
| Trump Entertainment Resorts Holdings, Inc., 8.5%, 2015 |
485,000 | 221,888 | ||||
| Wyndham Worldwide Corp., 6%, 2016 |
270,000 | 232,547 | ||||
| Wynn Las Vegas LLC, 6.625%, 2014 |
375,000 | 341,719 | ||||
| $ | 6,639,753 | |||||
| Industrial – 0.2% |
||||||
| JohnsonDiversey, Inc., 9.625%, 2012 |
EUR | 125,000 | $ | 176,022 | ||
| JohnsonDiversey, Inc., “B”, 9.625%, 2012 |
$ | 605,000 | 615,587 | |||
| $ | 791,609 | |||||
| Insurance – 0.0% |
||||||
| American International Group, Inc., 6.25%, 2037 |
$ | 210,000 | $ | 139,336 | ||
4
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Insurance - Property & Casualty – 1.1% |
||||||
| AXIS Capital Holdings Ltd., 5.75%, 2014 |
$ | 1,689,000 | $ | 1,551,144 | ||
| Fund American Cos., Inc., 5.875%, 2013 |
1,351,000 | 1,267,076 | ||||
| USI Holdings Corp., FRN, 6.679%, 2014 (n) |
1,005,000 | 801,488 | ||||
| ZFS Finance USA Trust V, 6.5% to 2017, FRN to 2037 (n) |
2,490,000 | 2,145,068 | ||||
| $ | 5,764,776 | |||||
| International Market Quasi-Sovereign – 0.1% |
||||||
| Canada Housing Trust, 4.6%, 2011 |
CAD | 392,000 | $ | 382,917 | ||
| International Market Sovereign – 17.7% |
||||||
| Federal Republic of Germany, 5.25%, 2010 |
EUR | 6,501,000 | $ | 9,717,747 | ||
| Federal Republic of Germany, 3.75%, 2015 |
EUR | 3,645,000 | 5,245,562 | |||
| Federal Republic of Germany, 6.25%, 2030 |
EUR | 2,593,000 | 4,609,931 | |||
| Government of Australia, 6.25%, 2015 |
AUD | 690,000 | 609,408 | |||
| Government of Canada, 4.5%, 2015 |
CAD | 1,035,000 | 1,046,762 | |||
| Government of Canada, 5.75%, 2033 |
CAD | 238,000 | 283,265 | |||
| Government of Japan, 0.8%, 2010 |
JPY | 187,800,000 | 1,732,547 | |||
| Government of Japan, 1.5%, 2012 |
JPY | 552,000,000 | 5,187,643 | |||
| Government of Japan, 1.3%, 2014 |
JPY | 227,600,000 | 2,124,790 | |||
| Government of Japan, 1.7%, 2017 |
JPY | 525,600,000 | 5,009,135 | |||
| Government of Japan, 2.2%, 2027 |
JPY | 840,000,000 | 7,893,097 | |||
| Kingdom of Denmark, 4%, 2015 |
DKK | 2,220,000 | 425,567 | |||
| Kingdom of Netherlands, 3.75%, 2009 |
EUR | 5,236,000 | 7,636,847 | |||
| Kingdom of Netherlands, 3.75%, 2014 |
EUR | 1,787,000 | 2,561,627 | |||
| Kingdom of Spain, 5.35%, 2011 |
EUR | 2,742,000 | 4,143,932 | |||
| Kingdom of Sweden, 4.5%, 2015 |
SEK | 2,635,000 | 418,128 | |||
| Republic of Austria, 4.65%, 2018 |
EUR | 4,347,000 | 6,505,200 | |||
| Republic of France, 4.75%, 2012 |
EUR | 769,000 | 1,149,632 | |||
| Republic of France, 5%, 2016 |
EUR | 1,290,000 | 1,979,279 | |||
| Republic of France, 6%, 2025 |
EUR | 874,000 | 1,481,023 | |||
| Republic of France, 4.75%, 2035 |
EUR | 3,517,000 | 5,201,730 | |||
| Republic of Ireland, 4.6%, 2016 |
EUR | 2,052,000 | 3,048,714 | |||
| Republic of Italy, 4.75%, 2013 |
EUR | 4,881,000 | 7,227,354 | |||
| United Kingdom Treasury, 8%, 2015 |
GBP | 875,000 | 1,930,647 | |||
| United Kingdom Treasury, 8%, 2021 |
GBP | 588,000 | 1,412,679 | |||
| United Kingdom Treasury, 4.25%, 2036 |
GBP | 808,000 | 1,428,442 | |||
| $ | 90,010,688 | |||||
| Machinery & Tools – 0.1% |
||||||
| Case New Holland, Inc., 7.125%, 2014 |
$ | 380,000 | $ | 369,550 | ||
| Major Banks – 1.2% |
||||||
| BNP Paribas, 5.186% to 2015, FRN to 2049 (n) |
$ | 1,667,000 | $ | 1,442,553 | ||
| MUFG Capital Finance 1 Ltd., 6.346% to 2016, FRN to 2049 |
1,408,000 | 1,167,552 | ||||
| Natixis S.A., 10% to 2018, FRN to 2049 (n) |
2,510,000 | 2,431,551 | ||||
| Royal Bank of Scotland Group PLC, 6.99% to 2017, FRN to 2049 (n) |
170,000 | 141,996 | ||||
| UniCredito Luxembourg Finance S.A., 6%, 2017 (n) |
830,000 | 760,629 | ||||
| $ | 5,944,281 | |||||
| Medical & Health Technology & Services – 2.4% |
||||||
| Biomet, Inc., 10%, 2017 |
$ | 830,000 | $ | 896,400 | ||
| Biomet, Inc., 11.625%, 2017 |
235,000 | 247,044 | ||||
| Community Health Systems, Inc., 8.875%, 2015 |
1,775,000 | 1,792,750 | ||||
| Cooper Cos., Inc., 7.125%, 2015 |
655,000 | 628,800 | ||||
| DaVita, Inc., 7.25%, 2015 |
1,375,000 | 1,352,656 | ||||
| Fisher Scientific International, Inc., 6.125%, 2015 |
2,090,000 | 2,084,094 | ||||
| HCA, Inc., 8.75%, 2010 |
630,000 | 636,300 | ||||
| HCA, Inc., 6.375%, 2015 |
160,000 | 132,000 | ||||
| HCA, Inc., 9.25%, 2016 |
780,000 | 802,425 | ||||
5
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Medical & Health Technology & Services – continued |
||||||
| Hospira, Inc., 6.05%, 2017 |
$ | 1,091,000 | $ | 1,065,339 | ||
| Owens & Minor, Inc., 6.35%, 2016 |
970,000 | 941,782 | ||||
| Psychiatric Solutions, Inc., 7.75%, 2015 |
810,000 | 785,700 | ||||
| VWR Funding, Inc., 10.25%, 2015 (p) |
700,000 | 637,000 | ||||
| $ | 12,002,290 | |||||
| Metals & Mining – 1.4% |
||||||
| Arch Western Finance LLC, 6.75%, 2013 |
$ | 305,000 | $ | 304,237 | ||
| FMG Finance Ltd., 10.625%, 2016 (n) |
650,000 | 728,000 | ||||
| Freeport-McMoRan Copper & Gold, Inc., 8.375%, 2017 |
1,170,000 | 1,240,200 | ||||
| Freeport-McMoRan Copper & Gold, Inc., FRN, 5.882%, 2015 |
435,000 | 436,148 | ||||
| International Steel Group, Inc., 6.5%, 2014 |
1,300,000 | 1,318,054 | ||||
| Ispat Inland ULC, 9.75%, 2014 |
1,200,000 | 1,282,544 | ||||
| Peabody Energy Corp., 5.875%, 2016 |
425,000 | 405,875 | ||||
| Steel Dynamics, Inc., 7.375%, 2012 |
1,620,000 | 1,603,800 | ||||
| $ | 7,318,858 | |||||
| Mortgage Backed – 17.3% |
||||||
| Fannie Mae, 3.81%, 2013 |
$ | 548,077 | $ | 521,891 | ||
| Fannie Mae, 4.1%, 2013 |
890,000 | 858,100 | ||||
| Fannie Mae, 4.19%, 2013 |
714,883 | 690,648 | ||||
| Fannie Mae, 4.845%, 2013 |
242,094 | 240,404 | ||||
| Fannie Mae, 4.589%, 2014 |
566,687 | 553,621 | ||||
| Fannie Mae, 4.6%, 2014 |
733,128 | 716,191 | ||||
| Fannie Mae, 4.609%, 2014 |
837,723 | 819,420 | ||||
| Fannie Mae, 4.77%, 2014 |
571,320 | 561,408 | ||||
| Fannie Mae, 4.56%, 2015 |
307,597 | 297,690 | ||||
| Fannie Mae, 4.665%, 2015 |
249,274 | 242,566 | ||||
| Fannie Mae, 4.7%, 2015 |
237,895 | 231,903 | ||||
| Fannie Mae, 4.74%, 2015 |
588,288 | 574,419 | ||||
| Fannie Mae, 4.78%, 2015 |
687,503 | 671,211 | ||||
| Fannie Mae, 4.815%, 2015 |
600,000 | 587,466 | ||||
| Fannie Mae, 4.87%, 2015 |
502,715 | 493,944 | ||||
| Fannie Mae, 4.89%, 2015 |
167,786 | 165,188 | ||||
| Fannie Mae, 4.926%, 2015 |
1,868,360 | 1,844,643 | ||||
| Fannie Mae, 6%, 2016 - 2037 |
19,311,176 | 19,568,989 | ||||
| Fannie Mae, 5.5%, 2019 - 2035 |
39,171,376 | 38,965,441 | ||||
| Fannie Mae, 4.88%, 2020 |
505,962 | 494,868 | ||||
| Fannie Mae, 6.5%, 2032 - 2033 |
2,173,244 | 2,253,687 | ||||
| Fannie Mae, 5%, 2034 |
4,314,253 | 4,169,669 | ||||
| Freddie Mac, 5%, 2024 |
207,468 | 209,297 | ||||
| Freddie Mac, 5.5%, 2034 |
5,757,769 | 5,709,374 | ||||
| Freddie Mac, 6%, 2034 |
1,581,752 | 1,603,552 | ||||
| Ginnie Mae, 5.5%, 2038 |
5,000,000 | 4,999,574 | ||||
| $ | 88,045,164 | |||||
| Natural Gas - Distribution – 0.3% |
||||||
| AmeriGas Partners LP, 7.25%, 2015 |
$ | 470,000 | $ | 445,325 | ||
| AmeriGas Partners LP, 7.125%, 2016 |
375,000 | 348,750 | ||||
| Inergy LP, 6.875%, 2014 |
585,000 | 526,500 | ||||
| $ | 1,320,575 | |||||
| Natural Gas - Pipeline – 1.6% |
||||||
| Atlas Pipeline Partners LP, 8.125%, 2015 |
$ | 1,000,000 | $ | 955,000 | ||
| Atlas Pipeline Partners LP, 8.75%, 2018 (n) |
250,000 | 243,750 | ||||
| CenterPoint Energy, Inc., 7.875%, 2013 |
1,600,000 | 1,700,525 | ||||
| Deutsche Bank (El Paso Performance-Linked Trust, CLN), 7.75%, 2011 (n) |
685,000 | 692,534 | ||||
| El Paso Corp., 7.25%, 2018 |
250,000 | 245,625 | ||||
6
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Natural Gas - Pipeline – continued |
||||||
| El Paso Corp., 7.75%, 2032 |
$ | 201,000 | $ | 197,400 | ||
| Spectra Energy Capital LLC, 8%, 2019 |
1,350,000 | 1,454,821 | ||||
| TransCapitalInvest Ltd., 5.67%, 2014 |
229,000 | 209,268 | ||||
| Williams Cos., Inc., 8.75%, 2032 |
796,000 | 895,500 | ||||
| Williams Partners LP, 7.25%, 2017 |
1,620,000 | 1,624,050 | ||||
| $ | 8,218,473 | |||||
| Network & Telecom – 2.2% |
||||||
| Cincinnati Bell, Inc., 8.375%, 2014 |
$ | 1,000,000 | $ | 946,250 | ||
| Citizens Communications Co., 9.25%, 2011 |
1,585,000 | 1,640,475 | ||||
| Citizens Communications Co., 9%, 2031 |
405,000 | 351,337 | ||||
| Nordic Telephone Co. Holdings, 8.875%, 2016 (n) |
305,000 | 293,563 | ||||
| Qwest Corp., 7.875%, 2011 |
1,020,000 | 1,012,350 | ||||
| Qwest Corp., 8.875%, 2012 |
450,000 | 453,375 | ||||
| Telefonica Europe B.V., 7.75%, 2010 |
1,000,000 | 1,054,189 | ||||
| TELUS Corp., 8%, 2011 |
1,299,000 | 1,390,596 | ||||
| Verizon New York, Inc., 6.875%, 2012 |
2,542,000 | 2,635,401 | ||||
| Windstream Corp., 8.625%, 2016 |
1,310,000 | 1,296,900 | ||||
| $ | 11,074,436 | |||||
| Oil Services – 0.5% |
||||||
| Basic Energy Services, Inc., 7.125%, 2016 |
$ | 485,000 | $ | 455,900 | ||
| GulfMark Offshore, Inc., 7.75%, 2014 |
435,000 | 428,475 | ||||
| KazMunaiGaz Finance B.V., 8.375%, 2013 (z) |
1,044,000 | 1,059,660 | ||||
| KazMunaiGaz Finance B.V., 9.125%, 2018 (z) |
733,000 | 748,576 | ||||
| $ | 2,692,611 | |||||
| Oils – 0.5% |
||||||
| Premcor Refining Group, Inc., 7.5%, 2015 |
$ | 2,300,000 | $ | 2,377,683 | ||
| Other Banks & Diversified Financials – 1.4% |
||||||
| Alfa Diversified Payment Rights Finance Co. S.A., FRN, 4.676%, 2011 (n) |
$ | 1,008,000 | $ | 952,560 | ||
| Banco Mercantil del Norte S.A., 5.875% to 2009, FRN to 2014 (n) |
808,000 | 808,808 | ||||
| Bosphorus Financial Services Ltd., FRN, 4.475%, 2012 (z) |
1,312,500 | 1,267,964 | ||||
| Citigroup, Inc., 8.4% to 2018, FRN to 2049 |
2,510,000 | 2,131,040 | ||||
| Resona Bank Ltd., 5.85% to 2016, FRN to 2049 (n) |
655,000 | 527,006 | ||||
| RSHB Capital S.A., 7.125%, 2014 (z) |
242,000 | 235,781 | ||||
| Woori Bank, 6.125% to 2011, FRN to 2016 (n) |
1,490,000 | 1,433,833 | ||||
| $ | 7,356,992 | |||||
| Pollution Control – 0.2% |
||||||
| Allied Waste North America, Inc., 6.5%, 2010 |
$ | 1,070,000 | $ | 1,075,350 | ||
| Precious Metals & Minerals – 0.4% |
||||||
| Alrosa Finance S.A., 8.875%, 2014 |
$ | 2,016,000 | $ | 2,053,659 | ||
| Printing & Publishing – 0.7% |
||||||
| American Media Operations, Inc., 10.25%, 2009 (z) |
$ | 6,727 | $ | 5,045 | ||
| American Media Operations, Inc., “B”, 10.25%, 2009 |
185,000 | 138,750 | ||||
| Dex Media West LLC, 9.875%, 2013 |
1,855,000 | 1,428,350 | ||||
| Idearc, Inc., 8%, 2016 |
1,828,000 | 827,170 | ||||
| Nielsen Finance LLC, 10%, 2014 |
405,000 | 410,063 | ||||
| R.H. Donnelley Corp., 8.875%, 2016 |
1,145,000 | 601,125 | ||||
| $ | 3,410,503 | |||||
| Railroad & Shipping – 0.4% |
||||||
| TFM S.A. de C.V., 9.375%, 2012 |
$ | 2,100,000 | $ | 2,194,500 | ||
| Real Estate – 0.5% |
||||||
| HRPT Properties Trust, REIT, 6.25%, 2016 |
$ | 1,422,000 | $ | 1,279,699 | ||
7
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Real Estate – continued |
||||||
| Simon Property Group, Inc., REIT, 5.875%, 2017 |
$ | 1,260,000 | $ | 1,173,437 | ||
| $ | 2,453,136 | |||||
| Retailers – 0.7% |
||||||
| Couche-Tard, Inc., 7.5%, 2013 |
$ | 350,000 | $ | 326,375 | ||
| Gap, Inc., 8.8%, 2008 |
940,000 | 954,100 | ||||
| General Nutrition Centers, Inc., 7.199%, 2014 (p) |
740,000 | 642,875 | ||||
| Home Depot, Inc., 5.25%, 2013 |
975,000 | 924,937 | ||||
| Macy’s Retail Holdings, Inc., 5.35%, 2012 |
200,000 | 187,233 | ||||
| Sally Beauty Holdings, Inc., 10.5%, 2016 |
485,000 | 487,425 | ||||
| $ | 3,522,945 | |||||
| Specialty Stores – 0.1% |
||||||
| GSC Holdings Corp., 8%, 2012 |
$ | 220,000 | $ | 230,450 | ||
| Payless ShoeSource, Inc., 8.25%, 2013 |
170,000 | 154,700 | ||||
| $ | 385,150 | |||||
| Steel – 0.1% |
||||||
| Steel Capital S.A., 9.75%, 2013 (z) |
$ | 644,000 | $ | 641,263 | ||
| Supermarkets – 0.2% |
||||||
| Delhaize America, Inc., 9%, 2031 |
$ | 980,000 | $ | 1,136,398 | ||
| Supranational – 1.2% |
||||||
| Central American Bank, 4.875%, 2012 (n) |
$ | 1,426,000 | $ | 1,434,395 | ||
| European Investment Bank, 5.125%, 2017 |
4,322,000 | 4,558,556 | ||||
| $ | 5,992,951 | |||||
| Telecommunications - Wireless – 1.8% |
||||||
| Alltel Corp., 7%, 2012 |
$ | 361,000 | $ | 370,927 | ||
| AT&T Wireless Services, Inc., 8.75%, 2031 |
1,500,000 | 1,791,711 | ||||
| Cingular Wireless LLC, 6.5%, 2011 |
1,700,000 | 1,780,194 | ||||
| MetroPCS Wireless, Inc., 9.25%, 2014 |
1,295,000 | 1,283,669 | ||||
| Nextel Communications, Inc., 5.95%, 2014 |
1,295,000 | 1,036,000 | ||||
| Rogers Cable, Inc., 5.5%, 2014 |
1,025,000 | 1,002,848 | ||||
| Rogers Wireless, Inc., 7.5%, 2015 |
450,000 | 478,930 | ||||
| Vimpel-Communications, 8.375%, 2013 (z) |
715,000 | 691,043 | ||||
| Vodafone Group PLC, 5.625%, 2017 |
279,000 | 269,535 | ||||
| Wind Acquisition Finance S.A., 10.75%, 2015 (n) |
408,000 | 418,200 | ||||
| $ | 9,123,057 | |||||
| Telephone Services – 0.3% |
||||||
| Embarq Corp., 7.082%, 2016 |
$ | 1,740,000 | $ | 1,614,412 | ||
| Tobacco – 0.6% |
||||||
| Reynolds American, Inc., 6.75%, 2017 |
$ | 2,984,000 | $ | 2,935,250 | ||
| Transportation – 0.0% |
||||||
| Peru Enhanced Pass-Through Trust, 0%, 2018 (n) |
$ | 246,100 | $ | 162,426 | ||
| Transportation - Services – 0.1% |
||||||
| Hertz Corp., 8.875%, 2014 |
$ | 135,000 | $ | 126,394 | ||
| Westinghouse Air Brake Technologies Corp., 6.875%, 2013 |
370,000 | 370,000 | ||||
| $ | 496,394 | |||||
| U.S. Government Agencies – 1.1% |
||||||
| Freddie Mac, 5.5%, 2017 |
$ | 5,100,000 | $ | 5,442,659 | ||
| U.S. Treasury Obligations – 8.8% |
||||||
| U.S. Treasury Bonds, 10.625%, 2015 |
$ | 3,350,000 | $ | 4,835,779 | ||
| U.S. Treasury Bonds, 7.5%, 2016 |
5,750,000 | 7,269,708 | ||||
| U.S. Treasury Bonds, 8.75%, 2017 |
4,100,000 | 5,585,930 | ||||
| U.S. Treasury Bonds, 6.25%, 2023 (f) |
8,000,000 | 9,646,248 | ||||
8
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| U.S. Treasury Obligations – continued |
||||||
| U.S. Treasury Bonds, 5.375%, 2031 |
$ | 477,000 | $ | 538,041 | ||
| U.S. Treasury Bonds, 4.5%, 2036 |
158,000 | 159,580 | ||||
| U.S. Treasury Bonds, 4.75%, 2037 |
4,977,000 | 5,230,518 | ||||
| U.S. Treasury Notes, 4%, 2015 |
568,000 | 593,471 | ||||
| U.S. Treasury Notes, 9.875%, 2015 |
5,025,000 | 7,063,658 | ||||
| U.S. Treasury Notes, 4.875%, 2016 |
880,000 | 957,619 | ||||
| U.S. Treasury Notes, 6.375%, 2027 |
2,350,000 | 2,925,750 | ||||
| $ | 44,806,302 | |||||
| Utilities - Electric Power – 5.1% |
||||||
| Allegheny Energy Supply Co. LLC, 8.25%, 2012 (n) |
$ | 370,000 | $ | 388,500 | ||
| Bruce Mansfield Unit, 6.85%, 2034 |
1,560,000 | 1,601,710 | ||||
| CenterPoint Energy, Inc., 6.5%, 2018 |
400,000 | 391,170 | ||||
| Dynegy Holdings, Inc., 7.5%, 2015 |
215,000 | 202,100 | ||||
| Edison Mission Energy, 7%, 2017 |
1,615,000 | 1,546,362 | ||||
| EDP Finance B.V., 6%, 2018 (n) |
1,330,000 | 1,319,183 | ||||
| EEB International Ltd., 8.75%, 2014 (n) |
569,000 | 605,274 | ||||
| Enersis S.A., 7.375%, 2014 |
1,273,000 | 1,353,814 | ||||
| Exelon Generation Co. LLC, 6.95%, 2011 |
2,486,000 | 2,581,902 | ||||
| FirstEnergy Corp., 6.45%, 2011 |
1,699,000 | 1,745,459 | ||||
| HQI Transelec Chile S.A., 7.875%, 2011 |
1,500,000 | 1,577,238 | ||||
| ISA Capital do Brasil S.A., 7.875%, 2012 (n) |
461,000 | 485,802 | ||||
| Mirant Americas Generation LLC, 8.3%, 2011 |
100,000 | 102,000 | ||||
| Mirant North America LLC, 7.375%, 2013 |
710,000 | 704,675 | ||||
| NiSource Finance Corp., 7.875%, 2010 |
1,145,000 | 1,189,814 | ||||
| NorthWestern Corp., 5.875%, 2014 |
1,435,000 | 1,421,096 | ||||
| NRG Energy, Inc., 7.375%, 2016 |
1,725,000 | 1,703,437 | ||||
| Reliant Energy, Inc., 7.875%, 2017 |
610,000 | 588,650 | ||||
| System Energy Resources, Inc., 5.129%, 2014 (n) |
1,771,229 | 1,745,954 | ||||
| Taqa Abu Dhabi National Energy Co., 6.6%, 2013 (z) |
1,256,000 | 1,274,665 | ||||
| Texas Competitive Electric Holdings LLC, 10.25%, 2015 (n) |
3,685,000 | 3,675,788 | ||||
| $ | 26,204,593 | |||||
| Total Bonds |
$ | 488,471,737 | ||||
| Floating Rate Loans – 0.9% (g)(r) |
||||||
| Aerospace – 0.1% |
||||||
| Hawker Beechcraft Acquisition Co., Letter of Credit, 4.8%, 2014 |
$ | 23,544 | $ | 21,921 | ||
| Hawker Beechcraft Acquisition Co., Term Loan, 4.8%, 2014 |
532,748 | 496,038 | ||||
| $ | 517,959 | |||||
| Automotive – 0.3% |
||||||
| Allison Transmission, Inc., Term Loan B, 5.33%, 2014 |
$ | 248,600 | $ | 222,963 | ||
| Federal-Mogul Corp., Term Loan B, 4.41%, 2015 |
333,591 | 256,865 | ||||
| Ford Motor Co., Term Loan B, 5.47%, 2013 |
553,833 | 429,023 | ||||
| Goodyear Tire & Rubber Co., Second Lien Term Loan, 4.54%, 2014 |
480,501 | 438,457 | ||||
| $ | 1,347,308 | |||||
| Business Services – 0.1% |
||||||
| First Data Corp., Term Loan B-1, 5.25%, 2014 |
$ | 424,849 | $ | 389,327 | ||
| Cable TV – 0.1% |
||||||
| CSC Holdings, Inc., Incremental Term Loan, 4.21%, 2013 |
$ | 332,713 | $ | 316,410 | ||
| Forest & Paper Products – 0.0% |
||||||
| Abitibi-Consolidated, Inc., Term Loan, 11.5%, 2009 |
$ | 119,955 | $ | 119,355 | ||
| Medical & Health Technology & Services – 0.1% |
||||||
| Community Health Systems, Inc., Delayed Draw Term Loan, 2014 (q) |
$ | 3,168 | $ | 2,994 | ||
| Community Health Systems, Inc., Term Loan B, 4.98%, 2014 |
61,935 | 58,536 | ||||
9
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Floating Rate Loans (g)(r) – continued |
||||||
| Medical & Health Technology & Services – continued |
||||||
| HCA, Inc., Term Loan B, 5.05%, 2012 |
$ | 449,299 | $ | 420,750 | ||
| $ | 482,280 | |||||
| Printing & Publishing – 0.0% |
||||||
| Idearc, Inc., Term Loan B, 4.79%, 2014 |
$ | 41,376 | $ | 28,963 | ||
| Retailers – 0.0% |
||||||
| Burlington Coat Factory, Term Loan B, 2013 (o) |
$ | 290,777 | $ | 225,171 | ||
| Specialty Stores – 0.1% |
||||||
| Michaels Stores, Inc., Term Loan B, 4.75%, 2013 |
$ | 469,690 | $ | 362,102 | ||
| Telecommunications - Wireless – 0.0% |
||||||
| ALLTEL Communications, Inc., Term Loan B-2, 5.06%, 2015 |
$ | 224,820 | $ | 222,179 | ||
| Utilities - Electric Power – 0.1% |
||||||
| Calpine Corp., DIP Term Loan, 5.69%, 2009 |
$ | 361,135 | $ | 335,404 | ||
| Texas Competitive Electric Holdings LLC, Term Loan B-3, 6.27%, 2014 |
470,336 | 437,412 | ||||
| $ | 772,816 | |||||
| Total Floating Rate Loans |
$ | 4,783,870 | ||||
| Common Stocks – 0.0% |
||||||
| Printing & Publishing – 0.0% |
||||||
| Golden Books Family Entertainment, Inc. (a) |
3,683 | $ | 0 | |||
| Repurchase Agreements – 1.6% |
||||||
| Merrill Lynch, 2.13%, dated 8/29/08, due 9/02/08, total to be received $8,061,908 (secured by U.S. Treasury and Federal Agency obligations and Mortgage Backed securities in a jointly traded account) |
$ | 8,060,000 | $ |
8,060,000 | ||
| Total Investments |
$ | 501,315,607 | ||||
| Other Assets, Less Liabilities – 1.5% |
7,575,783 | |||||
| Net Assets – 100.0% |
$ | 508,891,390 | ||||
| (a) | Non-income producing security. |
| (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 $53,977,692, representing 10.6% 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. |
| (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 | |||||
| American Media Operations, Inc., 10.25%, 2009 |
1/25/08-2/20/08 | $ | 6,675 | $ | 5,045 | |||
| Bayview Financial Revolving Mortgage Loan Trust, FRN, |
||||||||
| 3.26%, 2040 |
3/01/06 | 1,160,000 | 849,349 | |||||
| Bosphorus Financial Services Ltd., FRN, 4.475%, 2012 |
3/08/05 | 1,312,500 | 1,267,964 | |||||
| Braskem S.A., 7.25%, 2018 |
5/29/08 | 615,579 | 617,895 | |||||
| DLJ Commercial Mortgage Corp., 6.04%, 2031 |
7/23/04 | 1,969,453 | 1,891,516 | |||||
10
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/08 - continued
| Restricted Securities |
Acquisition Date | Cost | Current Market Value |
||||||
| Firekeepers Development Authority, 13.875%, 2015 |
4/22/08 - 5/06/08 | $ | 262,416 | $ | 249,075 | ||||
| KazMunaiGaz Finance B.V., 8.375%, 2013 |
7/02/08 | 1,038,770 | 1,059,660 | ||||||
| KazMunaiGaz Finance B.V., 9.125%, 2018 |
7/02/08 | 727,107 | 748,576 | ||||||
| Nationslink Funding Corp., 5%, 2031 |
5/07/08 | 1,524,880 | 1,515,660 | ||||||
| PNC Mortgage Acceptance Corp., FRN, 7.1%, 2032 |
3/25/08 | 2,510,000 | 2,332,079 | ||||||
| RSHB Capital S.A., 7.125%, 2014 |
5/21/08 - 6/06/08 | 242,710 | 235,781 | ||||||
| Spirit Master Funding LLC, 5.05%, 2023 |
7/15/05 | 1,717,341 | 1,341,309 | ||||||
| Steel Capital S.A., 9.75%, 2013 |
7/29/08 | 644,000 | 641,263 | ||||||
| Taqa Abu Dhabi National Energy Co., 6.6%, 2013 |
7/31/08 | 1,255,259 | 1,274,665 | ||||||
| Ticketmaster, 10.75%, 2016 |
7/28/08 | 354,962 | 358,750 | ||||||
| Vimpel-Communications, 8.375%, 2013 |
4/24/08 | 715,000 | 691,043 | ||||||
| Total Restricted Securities |
$ | 15,079,630 | |||||||
| % of Net Assets |
3.0 | % | |||||||
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. | |
| 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 | |
| CAD |
Canadian Dollar | |
| DKK |
Danish Krone | |
| EUR |
Euro | |
| GBP |
British Pound | |
| JPY |
Japanese Yen | |
| KRW |
Korean Won | |
| PEN |
Peruvian Nuevo Sol | |
| SEK |
Swedish Krona |
See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.
11
MFS Charter Income Trust
Supplemental Information (Unaudited) 8/31/08
(1) Fair Value Disclosure
The fund adopted FASB Statement No. 157, Fair Value Measurements (the “Statement”) in this reporting period. This Statement provides a single definition of fair value, a hierarchy for measuring fair value and expanded disclosures about fair value measurements.
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. Level 1 includes 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, which are valued at the unrealized appreciation/depreciation on the instrument. The following is a summary of the levels used as of August 31, 2008 in valuing the fund’s assets or liabilities carried at market value:
| Level 1 | Level 2 | Level 3 | Total | ||||||||||
| Investments in Securities |
$ | — | $ | 501,315,607 | $ | — | $ | 501,315,607 | |||||
| Other Financial Instruments |
$ | (30,898 | ) | $ | 854,340 | $ | — | $ | 823,442 | ||||
(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 |
$ | 515,466,083 | ||
| Gross unrealized appreciation |
$ | 7,018,951 | ||
| Gross unrealized depreciation |
(21,169,427 | ) | ||
| Net unrealized appreciation (depreciation) |
$ | (14,150,476 | ) | |
The aggregate cost above includes prior fiscal year end tax adjustments.
(3) Derivative Contracts at 8/31/08
Forward Foreign Currency Exchange Contracts at 8/31/08
| Type |
Currency | Contracts to Deliver/Receive |
Settlement Date Range |
In Exchange For | Contracts at Value |
Net Unrealized Appreciation (Depreciation) |
||||||||||
| Appreciation |
||||||||||||||||
| SELL |
AUD | 704,858 | 9/08/08 -11/12/08 | $ | 643,100 | $ | 601,854 | $ | 41,246 | |||||||
| SELL |
CAD | 1,809,831 | 10/22/08 | 1,702,057 | 1,701,532 | 525 | ||||||||||
| SELL |
DKK | 2,379,462 | 11/12/08 | 486,518 | 466,071 | 20,447 | ||||||||||
| SELL |
EUR | 47,113,597 | 10/22/08 | 69,273,430 | 68,911,543 | 361,887 | ||||||||||
| SELL |
GBP | 3,323,923 | 10/23/08 | 6,206,262 | 6,031,122 | 175,140 | ||||||||||
| BUY |
JPY | 376,605,100 | 10/22/08 | 3,443,184 | 3,472,225 | 29,041 | ||||||||||
| SELL |
JPY | 2,772,982,848 | 10/27/08 | 25,719,824 | 25,574,387 | 145,437 | ||||||||||
| SELL |
PEN | 3,816,000 | 9/11/08 | 1,355,354 | 1,292,489 | 62,865 | ||||||||||
| SELL |
SEK | 10,491,084 | 9/30/08 | 1,719,754 | 1,622,989 | 96,765 | ||||||||||
| $ | 933,353 | |||||||||||||||
| Depreciation |
||||||||||||||||
| BUY |
EUR | 4,620,592 | 10/22/08 | $ | 6,774,866 | $ | 6,758,391 | $ | (16,475 | ) | ||||||
| BUY |
GBP | 685,047 | 10/23/08 | 1,269,919 | 1,242,989 | (26,930 | ) | |||||||||
| BUY |
KRW | 1,363,102,171 | 10/02/08 | 1,258,635 | 1,251,430 | (7,205 | ) | |||||||||
| BUY |
SEK | 7,818,944 | 9/30/08 | 1,240,000 | 1,209,605 | (30,395 | ) | |||||||||
| $ | (81,005 | ) | ||||||||||||||
12
MFS Charter Income Trust
Supplemental Information (Unaudited) 8/31/08 - continued
Futures contracts outstanding at 8/31/08
| Description |
Contracts | Value | Expiration Date |
Unrealized Appreciation (Depreciation) |
||||||||
| U.S. Treasury Note 10 yr (Short) |
260 | $ | (30,030,000 | ) | Dec-08 | $ | (19,191 | ) | ||||
| U.S. Treasury Bond (Long) |
97 | 11,379,313 | Dec-08 | (11,707 | ) | |||||||
| $ | (30,898 | ) | ||||||||||
Swap Agreements at 8/31/08
| Expiration |
Notional Amount |
Counterparty |
Cash Flows to Receive |
Cash Flows to Pay |
Value | |||||||||
| Credit Default Swaps |
||||||||||||||
| 6/20/09 |
USD | 200,000 | JPMorgan Chase Bank | 4.10% (fixed rate) | (1) | $ | (32,272 | ) | ||||||
| 9/20/12 |
USD | 1,500,000 | JPMorgan Chase Bank | 0.33% (fixed rate) | (2) | (1,283 | ) | |||||||
| 6/20/13 |
USD | 1,120,000 | Morgan Stanley | |||||||||||
| Capital Services, Inc. | (3) | 1.48% (fixed rate) | 28,562 | |||||||||||
| 9/20/13 |
USD | 200,000 | JPMorgan Chase Bank | 5.30% (fixed rate) | (4) | 6,985 | ||||||||
| $ | 1,992 | |||||||||||||
| (1) | Fund to pay notional amount upon a defined credit event by Abitibi – Consolidated, Inc., 8.375%, 4/01/15. |
| (2) | Fund to pay notional amount upon a defined credit event by FNMA, 5.5%, 6/09/33. |
| (3) | Fund to receive notional amount upon a defined credit event by Weyerhaeuser Co., 7.125%, 7/15/23. |
| (4) | Fund to pay notional amount upon a defined credit event by ARAMARK Corp., 8.5%, 2/01/15. |
At August 31, 2008, the fund had sufficient cash and/or other liquid securities to cover any commitments under these derivative contracts.
(4) Country Weightings
Country weighting percentages of portfolio holdings based on total net assets as of August 31, 2008, are as follows:
| United States |
68.6 | % | |
| Japan |
4.7 | % | |
| Germany |
4.0 | % | |
| France |
2.8 | % | |
| Netherlands |
2.1 | % | |
| United Kingdom |
1.6 | % | |
| Italy |
1.6 | % | |
| Canada |
1.5 | % | |
| Austria |
1.3 | % | |
| Other Countries |
11.8 | % |
The country weighting percentages include both accrued interest amounts and the equivalent exposure from any derivative holdings, if applicable.
13
| 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)* | ROBERT J. MANNING | |
| Robert J. Manning, President |
Date: October 15, 2008
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)* | ROBERT J. MANNING | |
| Robert J. Manning, President (Principal Executive Officer) |
Date: October 15, 2008
| By (Signature and Title)* | MARIA F. DWYER | |
| Maria F. Dwyer, Treasurer (Principal Financial Officer and Accounting Officer) |
Date: October 15, 2008
| * | Print name and title of each signing officer under his or her signature. |