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 811-5440
MFS INTERMEDIATE 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: October 31
Date of reporting period: July 31, 2008
| ITEM 1. | SCHEDULE OF INVESTMENTS. |
MFS Intermediate Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – 99.2% |
||||||
| Agency - Other – 0.0% |
||||||
| Small Business Administration, 7.64%, 2010 |
$ | 355,791 | $ | 367,346 | ||
| Asset Backed & Securitized – 4.3% |
||||||
| Commercial Mortgage Acceptance Corp., FRN, 0.999%, 2030 (i) |
$ | 24,328,550 | $ | 894,592 | ||
| Credit Suisse Mortgage Capital Certificate, FRN, 5.695%, 2017 |
2,000,000 | 1,841,206 | ||||
| Daimler Chrysler Auto Trust, “A2B”, 3.391%, 2011 |
3,000,000 | 3,009,608 | ||||
| Falcon Franchise Loan LLC, FRN, 3.01%, 2023 (i)(n) |
11,067,855 | 853,435 | ||||
| Ford Credit Auto Owner Trust, 3.657%, 2010 |
3,000,000 | 3,011,713 | ||||
| Ford Credit Auto Owner Trust, FRN, 2.787%, 2010 |
865,246 | 865,076 | ||||
| Greenwich Capital Commercial Funding Corp., FRN, 5.913%, 2038 |
2,000,000 | 1,936,866 | ||||
| JPMorgan Chase Commercial Mortgage Securities Corp., 5.429%, 2043 |
2,000,000 | 1,859,305 | ||||
| JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.363%, 2043 |
4,380,726 | 3,822,015 | ||||
| JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.475%, 2043 |
3,000,000 | 2,815,459 | ||||
| JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.466%, 2047 |
2,500,000 | 2,169,137 | ||||
| Multi-Family Capital Access One, Inc., 6.65%, 2024 |
1,011,641 | 1,010,051 | ||||
| Nationslink Funding Corp., 7.046%, 2031 (n) |
2,500,000 | 2,483,600 | ||||
| Nationslink Funding Corp., 5%, 2031 (z) |
2,500,000 | 2,452,757 | ||||
| Nationstar Home Equity Loan Trust, 2.591%, 2036 |
1,000,000 | 974,488 | ||||
| PNC Mortgage Acceptance Corp., FRN, 7.1%, 2032 (z) |
2,000,000 | 1,940,027 | ||||
| Wachovia Bank Commercial Mortgage Trust, FRN, 5.418%, 2045 |
2,000,000 | 1,875,094 | ||||
| $ | 33,814,429 | |||||
| Brokerage & Asset Managers – 0.8% |
||||||
| Goldman Sachs Group, Inc., 6.15%, 2018 |
$ | 2,000,000 | $ | 1,926,604 | ||
| Goldman Sachs Group, Inc., FRN, 2.891%, 2008 |
1,250,000 | 1,247,404 | ||||
| Merrill Lynch & Co., Inc., 6.15%, 2013 |
2,190,000 | 2,088,518 | ||||
| Morgan Stanley Group, Inc., 6.625%, 2018 |
1,532,000 | 1,418,082 | ||||
| $ | 6,680,608 | |||||
| Building – 0.6% |
||||||
| CRH America, Inc., 6.95%, 2012 |
$ | 3,275,000 | $ | 3,284,144 | ||
| CRH America, Inc., 8.125%, 2018 |
1,160,000 | 1,171,378 | ||||
| $ | 4,455,522 | |||||
| Business Services – 0.1% |
||||||
| Xerox Corp., 5.65%, 2013 |
$ | 910,000 | $ | 901,560 | ||
| Cable TV – 0.7% |
||||||
| Comcast Corp., 5.45%, 2010 |
$ | 2,500,000 | $ | 2,539,862 | ||
| Time Warner Cable, Inc., 5.4%, 2012 |
2,670,000 | 2,653,828 | ||||
| Time Warner Entertainment Co. LP, 7.25%, 2008 |
500,000 | 501,233 | ||||
| $ | 5,694,923 | |||||
| Chemicals – 0.4% |
||||||
| PPG Industries, Inc., 5.75%, 2013 |
$ | 3,265,000 | $ | 3,294,996 | ||
| Conglomerates – 0.3% |
||||||
| Textron Financial Corp., 5.125%, 2010 |
$ | 2,600,000 | $ | 2,639,819 | ||
| Consumer Goods & Services – 1.1% |
||||||
| Clorox Co., 5%, 2013 |
$ | 2,750,000 | $ | 2,700,398 | ||
| Royal Philips Electronics N.V., 4.625%, 2013 |
3,290,000 | 3,251,260 | ||||
| Western Union Co., 5.4%, 2011 |
3,000,000 | 2,998,743 | ||||
| $ | 8,950,401 | |||||
| Emerging Market Quasi-Sovereign – 1.1% |
||||||
| Corporacion Nacional del Cobre de Chile, 4.75%, 2014 (n) |
$ | 1,543,000 | $ | 1,484,309 | ||
| Corporacion Nacional del Cobre de Chile, 4.75%, 2014 |
1,457,000 | 1,401,580 | ||||
| OAO Gazprom, 7.343%, 2013 (z) |
100,000 | 101,250 | ||||
| Pemex Project Funding Master Trust, 9.375%, 2008 |
1,170,000 | 1,196,325 | ||||
| Pemex Project Funding Master Trust, 5.75%, 2018 (n) |
1,863,000 | 1,813,630 | ||||
1
MFS Intermediate Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Emerging Market Quasi-Sovereign – continued |
||||||
| Pemex Project Funding Master Trust, 6.625%, 2035 |
$ | 1,059,000 | $ | 1,035,385 | ||
| Petronas Capital Ltd., 7.875%, 2022 |
1,158,000 | 1,386,226 | ||||
| $ | 8,418,705 | |||||
| Emerging Market Sovereign – 1.1% |
||||||
| Federative Republic of Brazil, 8%, 2018 |
$ | 183,000 | $ | 204,228 | ||
| Republic of Argentina, FRN, 3.092%, 2012 |
1,380,625 | 1,118,189 | ||||
| Republic of Panama, 7.25%, 2015 |
36,000 | 38,790 | ||||
| Republic of Panama, 9.375%, 2029 |
1,486,000 | 1,944,431 | ||||
| State of Israel, 5.125%, 2014 |
5,000,000 | 5,012,285 | ||||
| United Mexican States, 8.3%, 2031 |
279,000 | 349,448 | ||||
| $ | 8,667,371 | |||||
| Energy - Integrated – 0.1% |
||||||
| Petro-Canada, 6.05%, 2018 |
$ | 904,000 | $ | 886,873 | ||
| Financial Institutions – 1.1% |
||||||
| American Express Centurion Bank, 5.2%, 2010 |
$ | 2,510,000 | $ | 2,506,258 | ||
| General Electric Capital Corp., 4.8%, 2013 |
2,120,000 | 2,088,075 | ||||
| General Electric Co., 5.625%, 2018 |
530,000 | 515,435 | ||||
| NYSE Euronext, Inc., 4.8%, 2013 |
4,000,000 | 3,956,384 | ||||
| $ | 9,066,152 | |||||
| Food & Beverages – 1.8% |
||||||
| Cadbury Schweppes PLC, 3.875%, 2008 (n) |
$ | 4,505,000 | $ | 4,502,806 | ||
| Diageo Capital PLC, 5.125%, 2012 |
3,900,000 | 3,930,315 | ||||
| Diageo PLC, 2.92%, 2009 |
1,570,000 | 1,568,149 | ||||
| Dr. Pepper Snapple Group, Inc., 6.82%, 2018 (n) |
560,000 | 563,081 | ||||
| Kraft Foods, Inc., 4.125%, 2009 |
2,500,000 | 2,491,237 | ||||
| Kraft Foods, Inc., 6.125%, 2018 |
1,310,000 | 1,277,297 | ||||
| $ | 14,332,885 | |||||
| Forest & Paper Products – 0.1% |
||||||
| International Paper Co., 7.95%, 2018 |
$ | 1,070,000 | $ | 1,064,004 | ||
| Industrial – 0.3% |
||||||
| Eaton Corp., 4.9%, 2013 |
$ | 2,310,000 | $ | 2,301,109 | ||
| Insurance – 1.4% |
||||||
| Jackson National Life Global Funding, 5.375%, 2013 (z) |
$ | 5,000,000 | $ | 4,966,710 | ||
| Metropolitan Life Global Funding, 5.125%, 2013 (n) |
230,000 | 226,786 | ||||
| New York Life Global Funding, 4.65%, 2013 (z) |
6,000,000 | 5,946,726 | ||||
| $ | 11,140,222 | |||||
| Insurance - Property & Casualty – 0.0% |
||||||
| Chubb Corp., 5.75%, 2018 |
$ | 290,000 | $ | 278,938 | ||
| International Market Quasi-Sovereign – 4.2% |
||||||
| Canada Housing Trust, 4.6%, 2011 |
CAD | 3,148,000 | $ | 3,173,193 | ||
| Eksportfinans A.S.A., 5.125%, 2011 |
$ | 3,780,000 | 3,921,958 | |||
| Eksportfinans A.S.A., 1.6%, 2014 |
JPY | 350,000,000 | 3,285,238 | |||
| KfW Bankengruppe, 5.25%, 2009 |
$ | 7,470,000 | 7,615,785 | |||
| KfW Bankengruppe, 4.875%, 2009 |
2,800,000 | 2,863,594 | ||||
| KfW International Finance, Inc., 4.625%, 2008 |
3,525,000 | 3,533,855 | ||||
| Landwirtschaftliche Rentenbank, 5.25%, 2012 |
8,360,000 | 8,810,721 | ||||
| $ | 33,204,344 | |||||
| International Market Sovereign – 31.9% |
||||||
| Federal Republic of Germany, 3.75%, 2015 |
EUR | 9,517,000 | $ | 14,394,942 | ||
| Government of Australia, 6.25%, 2015 |
AUD | 1,133,000 | 1,069,356 | |||
| Government of Canada, 4.5%, 2015 |
CAD | 4,214,000 | 4,375,329 | |||
| Government of Canada, 5.75%, 2033 |
CAD | 704,000 | 859,115 | |||
2
MFS Intermediate Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| International Market Sovereign – continued |
||||||
| Government of Japan, 1.5%, 2012 |
JPY | 2,977,000,000 | $ | 28,089,536 | ||
| Government of Japan, 1.3%, 2014 |
JPY | 2,181,000,000 | 20,319,465 | |||
| Government of Japan, 1.7%, 2017 |
JPY | 2,598,000,000 | 24,627,181 | |||
| Kingdom of Denmark, 4%, 2015 |
DKK | 7,677,000 | 1,541,338 | |||
| Kingdom of Netherlands, 3.75%, 2014 |
EUR | 3,250,000 | 4,901,701 | |||
| Kingdom of Spain, 5.35%, 2011 |
EUR | 9,594,000 | 15,346,146 | |||
| Kingdom of Sweden, 4.5%, 2015 |
SEK | 9,300,000 | 1,557,982 | |||
| Province of Ontario, 5%, 2011 |
$ | 5,000,000 | 5,191,290 | |||
| Province of Ontario, 4.75%, 2016 |
6,000,000 | 6,051,984 | ||||
| Republic of Austria, 4.65%, 2018 |
EUR | 11,660,000 | 18,356,300 | |||
| Republic of France, 4.75%, 2012 |
EUR | 5,214,000 | 8,240,740 | |||
| Republic of France, 5%, 2016 |
EUR | 17,548,000 | 28,290,648 | |||
| Republic of Ireland, 4.6%, 2016 |
EUR | 17,379,000 | 27,161,343 | |||
| United Kingdom Treasury, 5%, 2012 |
GBP | 9,457,000 | 18,892,061 | |||
| United Kingdom Treasury, 8%, 2015 |
GBP | 10,364,000 | 24,484,398 | |||
| $ | 253,750,855 | |||||
| Machinery & Tools – 0.1% |
||||||
| Atlas Copco AB, 5.6%, 2017 (n) |
$ | 510,000 | $ | 495,112 | ||
| Major Banks – 1.2% |
||||||
| BAC Capital Trust XIV, 5.63% to 2012, FRN to 2049 |
$ | 2,000,000 | $ | 1,415,760 | ||
| Bank of America Corp., 4.9%, 2013 |
4,300,000 | 4,164,580 | ||||
| Natixis S.A., 10% to 2018, FRN to 2049 (n) |
3,250,000 | 3,109,376 | ||||
| SG Capital Trust I, 7.875% to 2010, FRN to 2049 |
EUR | 375,000 | 584,046 | |||
| $ | 9,273,762 | |||||
| Metals & Mining – 0.5% |
||||||
| Rio Tinto Finance USA Ltd., 5.875%, 2013 |
$ | 3,690,000 | $ | 3,732,679 | ||
| Mortgage Backed – 19.6% |
||||||
| Fannie Mae, 3%, 2010 |
$ | 10,994,000 | $ | 10,958,478 | ||
| Fannie Mae, 4.56%, 2010 |
1,390,457 | 1,388,199 | ||||
| Fannie Mae, 6.022%, 2010 |
6,800,000 | 7,068,223 | ||||
| Fannie Mae, 4.507%, 2011 |
6,715,681 | 6,777,734 | ||||
| Fannie Mae, 4.845%, 2013 |
2,028,347 | 2,017,795 | ||||
| Fannie Mae, 4.621%, 2014 |
2,933,113 | 2,872,353 | ||||
| Fannie Mae, 4.854%, 2014 |
3,486,352 | 3,447,175 | ||||
| Fannie Mae, 5.412%, 2014 |
1,949,966 | 1,978,614 | ||||
| Fannie Mae, 4.62%, 2015 |
949,114 | 922,857 | ||||
| Fannie Mae, 4.925%, 2015 |
2,115,021 | 2,088,698 | ||||
| Fannie Mae, 4%, 2016 |
2,980,606 | 2,974,413 | ||||
| Fannie Mae, 5.395%, 2016 |
1,361,995 | 1,366,005 | ||||
| Fannie Mae, 5.423%, 2016 |
2,426,978 | 2,451,180 | ||||
| Fannie Mae, 6%, 2016 - 2034 |
11,092,050 | 11,215,776 | ||||
| Fannie Mae, 5.32%, 2017 |
1,038,601 | 1,035,529 | ||||
| Fannie Mae, 5.5%, 2017 - 2035 |
20,329,450 | 20,202,163 | ||||
| Fannie Mae, 5%, 2018 - 2025 |
9,377,387 | 9,387,685 | ||||
| Fannie Mae, 4.5%, 2019 |
7,981,464 | 7,755,426 | ||||
| Fannie Mae, 6.5%, 2031 |
5,088,585 | 5,308,679 | ||||
| Freddie Mac, 5.5%, 2017 - 2026 |
14,183,591 | 14,341,119 | ||||
| Freddie Mac, 6%, 2017 - 2034 |
2,102,635 | 2,144,905 | ||||
| Freddie Mac, 5%, 2019 - 2027 |
21,616,731 | 21,675,254 | ||||
| Freddie Mac, 4%, 2024 |
1,127,630 | 1,127,707 | ||||
| Ginnie Mae, 6%, 2033 - 2036 |
5,834,359 | 5,913,406 | ||||
| Ginnie Mae, 5.612%, 2058 |
4,577,448 | 4,566,719 | ||||
| Ginnie Mae, 6.36%, 2058 |
4,469,232 | 4,596,500 | ||||
| $ | 155,582,592 | |||||
3
MFS Intermediate Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| Natural Gas - Pipeline – 0.1% |
||||||
| Enterprise Products Operating LP, 5.65%, 2013 |
$ | 376,000 | $ | 375,210 | ||
| TransCapitalInvest Ltd., 5.67%, 2014 |
104,000 | 96,215 | ||||
| $ | 471,425 | |||||
| Network & Telecom – 1.6% |
||||||
| British Telecommunications PLC, 5.15%, 2013 |
$ | 1,849,000 | $ | 1,808,579 | ||
| Deutsche Telekom International Finance B.V., 8.5%, 2010 |
2,330,000 | 2,460,126 | ||||
| France Telecom S.A., 7.75%, 2011 |
2,330,000 | 2,481,406 | ||||
| Telecom Italia Capital, 4.875%, 2010 |
3,000,000 | 2,977,749 | ||||
| Verizon Communications, Inc, 5.25%, 2013 |
3,260,000 | 3,263,361 | ||||
| $ | 12,991,221 | |||||
| Oil Services – 0.1% |
||||||
| Weatherford International Ltd., 6%, 2018 |
$ | 962,000 | $ | 949,526 | ||
| Other Banks & Diversified Financials – 2.3% |
||||||
| Citigroup, Inc., 5.5%, 2013 |
$ | 8,000,000 | $ | 7,814,520 | ||
| Eurohypo AG, 5.125%, 2016 |
3,140,000 | 3,235,403 | ||||
| RSHB Capital S.A., 7.125%, 2014 (z) |
200,000 | 197,180 | ||||
| Swedbank AB, 9% to 2010, FRN to 2049 (n) |
5,000,000 | 5,071,685 | ||||
| UBS Preferred Funding Trust V, 6.243% to 2016, FRN to 2049 |
2,000,000 | 1,705,050 | ||||
| $ | 18,023,838 | |||||
| Pharmaceuticals – 0.1% |
||||||
| Glaxosmithkline Capital, Inc., 4.85%, 2013 |
$ | 844,000 | $ | 843,937 | ||
| Printing & Publishing – 0.1% |
||||||
| Pearson PLC, 5.5%, 2013 (n) |
$ | 410,000 | $ | 405,699 | ||
| Railroad & Shipping – 0.3% |
||||||
| Canadian Pacific Railway Co., 6.5%, 2018 |
$ | 2,800,000 | $ | 2,740,142 | ||
| Real Estate – 0.3% |
||||||
| Kimco Realty Corp., 6.875%, 2009 |
$ | 2,680,000 | $ | 2,692,985 | ||
| Retailers – 0.6% |
||||||
| Macy’s Retail Holdings, Inc., 7.875%, 2015 |
$ | 2,670,000 | $ | 2,654,319 | ||
| Wesfarmers Ltd., 6.998%, 2013 (z) |
2,330,000 | 2,414,479 | ||||
| $ | 5,068,798 | |||||
| Supermarkets – 0.0% |
||||||
| Kroger Co., 5%, 2013 |
$ | 303,000 | $ | 297,755 | ||
| Supranational – 2.6% |
||||||
| Central American Bank, 4.875%, 2012 (n) |
$ | 3,000,000 | $ | 2,999,160 | ||
| Corporacion Andina de Fomento, 6.875%, 2012 |
6,000,000 | 6,291,792 | ||||
| Corporacion Andina de Fomento, 5.2%, 2013 |
3,000,000 | 2,965,614 | ||||
| Inter-American Development Bank, 8.875%, 2009 |
2,220,000 | 2,324,868 | ||||
| Inter-American Development Bank, 4.75%, 2012 |
5,640,000 | 5,822,341 | ||||
| $ | 20,403,775 | |||||
| Telecommunications - Wireless – 1.1% |
||||||
| Rogers Communications, Inc., 6.8%, 2018 |
$ | 4,950,000 | $ | 4,956,633 | ||
| Vodafone Group PLC, 7.75%, 2010 |
3,680,000 | 3,846,851 | ||||
| $ | 8,803,484 | |||||
| Tobacco – 0.6% |
||||||
| Philip Morris International, Inc., 4.875%, 2013 |
$ | 4,620,000 | $ | 4,524,329 | ||
| U.S. Government Agencies – 9.7% |
||||||
| Aid-Egypt, 4.45%, 2015 |
$ | 3,963,000 | $ | 4,018,323 | ||
| Fannie Mae, 6.375%, 2009 |
4,000,000 | 4,123,988 | ||||
| Farmer Mac, 5.5%, 2011 (n) |
6,070,000 | 6,432,343 | ||||
| Freddie Mac, 6.875%, 2010 |
6,337,000 | 6,801,420 | ||||
4
MFS Intermediate Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued
| Issuer |
Shares/Par | Value ($) | ||||
| Bonds – continued |
||||||
| U.S. Government Agencies – continued |
||||||
| Freddie Mac, 4.625%, 2012 |
19,240,000 | $ | 19,755,305 | |||
| Small Business Administration, 5.34%, 2021 |
4,684,182 | 4,715,904 | ||||
| Small Business Administration, 6.34%, 2021 |
1,799,319 | 1,854,264 | ||||
| Small Business Administration, 6.35%, 2021 |
2,534,657 | 2,612,178 | ||||
| Small Business Administration, 6.44%, 2021 |
1,553,608 | 1,604,226 | ||||
| Small Business Administration, 6.625%, 2021 |
2,072,696 | 2,169,179 | ||||
| Small Business Administration, 4.93%, 2024 |
1,876,379 | 1,836,988 | ||||
| Small Business Administration, 5.36%, 2025 |
2,294,348 | 2,292,200 | ||||
| Small Business Administration, 5.39%, 2025 |
1,657,792 | 1,657,962 | ||||
| U.S. Department of Housing & Urban Development, 5.53%, 2008 |
11,000,000 | 11,000,000 | ||||
| U.S. Department of Housing & Urban Development, 7.198%, 2009 |
6,000,000 | 6,249,954 | ||||
| $ | 77,124,234 | |||||
| U.S. Treasury Obligations – 4.3% |
||||||
| U.S. Treasury Bonds, 11.25%, 2015 |
$ | 7,000,000 | $ | 10,134,684 | ||
| U.S. Treasury Bonds, 10.625%, 2015 |
7,000,000 | 10,032,421 | ||||
| U.S. Treasury Notes, 9.875%, 2015 |
10,000,000 | 13,939,840 | ||||
| $ | 34,106,945 | |||||
| Utilities - Electric Power – 2.2% |
||||||
| Dominion Resources, Inc., 6.4%, 2018 |
$ | 430,000 | $ | 436,834 | ||
| Duke Energy Corp., 5.65%, 2013 |
1,800,000 | 1,813,302 | ||||
| E.On International Finance B.V., 5.8%, 2018 (n) |
7,000,000 | 6,876,429 | ||||
| HQI Transelec Chile S.A., 7.875%, 2011 |
2,926,000 | 3,138,103 | ||||
| Israel Electric Corp. Ltd., 7.25%, 2019 (z) |
1,892,000 | 1,874,049 | ||||
| NiSource Finance Corp., 7.875%, 2010 |
3,500,000 | 3,626,693 | ||||
| $ | 17,765,410 | |||||
| Utilities - Gas – 0.4% |
||||||
| Keyspan Corp., 7.625%, 2010 |
$ | 3,000,000 | $ | 3,171,192 | ||
| Total Bonds |
$ | 789,379,902 | ||||
| Repurchase Agreements – 0.2% |
||||||
| Merrill Lynch & Co., 2.19%, dated 7/31/08, due 8/01/08, total to be received $1,475,090 (secured by various U.S. Treasury and Federal Agency obligations and Mortgage Backed securities in a jointly traded account) |
$ | 1,475,000 | $ | 1,475,000 | ||
| Total Investments (k) |
$ | 790,854,902 | ||||
| Other Assets, Less Liabilities – 0.6% |
4,500,487 | |||||
| Net Assets – 100.0% |
$ | 795,355,389 | ||||
| (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. |
| (k) | As of July 31, 2008, the fund held securities fair valued in accordance with the policies adopted by the Board of Trustees, aggregating $789,379,902 and 99.81% of market value. All of these security values were provided by an independent pricing service using an evaluated bid. |
| (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 $37,317,550, representing 4.7% of net assets. |
| (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 | |||||
| Israel Electric Corp. Ltd., 7.25%, 2019 |
5/01/08 | $ | 1,888,803 | $ | 1,874,049 | |||
| Jackson National Life Global Funding, 5.375%, 2013 |
5/01/08 | 4,996,100 | 4,966,710 | |||||
| Nationslink Funding Corp., 5%, 2031 |
3/07/08 | 2,431,250 | 2,452,757 | |||||
| New York Life Global Funding, 4.65%, 2013 |
5/02/08 | 5,989,440 | 5,946,726 | |||||
| OAO Gazprom, 7.343%, 2013 |
4/02/08 | 100,000 | 101,250 | |||||
5
MFS Intermediate Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 7/31/08 - continued
| Restricted Securities (continued) |
Acquisition Date |
Cost | Current Market Value |
||||||
| PNC Mortgage Acceptance Corp., FRN, 7.1%, 2032 |
3/25/08 | $ | 2,000,000 | $ | 1,940,027 | ||||
| RSHB Capital S.A., 7.125%, 2014 |
5/21/08 | 200,000 | 197,180 | ||||||
| Wesfarmers Ltd., 6.998%, 2013 |
4/03/08 | 2,330,000 | 2,414,479 | ||||||
| Total Restricted Securities |
$ | 19,893,178 | |||||||
| % of Net Assets |
2.5 | % | |||||||
The following abbreviations are used in this report and are defined:
| FRN | Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end. |
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 | |
| 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.
6
MFS Intermediate Income Trust
Supplemental Information (Unaudited) 7/31/08
(1) 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 |
$ | 779,180,234 | ||
| Gross unrealized appreciation |
$ | 21,082,259 | ||
| Gross unrealized depreciation |
(9,407,591 | ) | ||
| Net unrealized appreciation (depreciation) |
$ | 11,674,668 | ||
The aggregate cost above includes prior fiscal year end tax adjustments.
(2) Derivative Contracts at 7/31/08
Forward Foreign Currency Exchange Contracts at 7/31/08
| Type |
Currency | Contracts to Deliver/Receive |
Settlement Date Range |
In Exchange For | Contracts at Value |
Net Unrealized Appreciation (Depreciation) |
||||||||||
| Appreciation |
||||||||||||||||
| SELL |
AUD | 1,147,899 | 8/11/08 | $ | 1,105,944 | $ | 1,079,913 | $ | 26,031 | |||||||
| SELL |
CAD | 8,620,203 | 8/25/08 | 8,460,719 | 8,420,382 | 40,337 | ||||||||||
| BUY |
EUR | 3,008,179 | 8/25/08 | 4,670,800 | 4,684,388 | 13,588 | ||||||||||
| SELL |
GBP | 3,725,684 | 8/26/08 | 7,389,559 | 7,372,846 | 16,713 | ||||||||||
| SELL |
JPY | 8,167,172,156 | 8/26/08 | 76,060,722 | 75,810,567 | 250,155 | ||||||||||
| SELL |
SEK | 9,536,157 | 9/30/08 | 1,581,452 | 1,570,746 | 10,706 | ||||||||||
| $ | 357,530 | |||||||||||||||
| Depreciation |
||||||||||||||||
| BUY |
DKK | 34,294,084 | 8/12/08 | $ | 7,293,277 | $ | 7,162,130 | $ | (131,147 | ) | ||||||
| SELL |
DKK | 42,372,864 | 8/12/08 | 8,763,596 | 8,849,339 | (85,743 | ) | |||||||||
| SELL |
EUR | 80,009,925 | 8/25/08 | 124,271,102 | 124,592,819 | (321,717 | ) | |||||||||
| SELL |
GBP | 18,154,991 | 8/26/08 | 35,568,351 | 35,927,350 | (358,999 | ) | |||||||||
| $ | (897,606 | ) | ||||||||||||||
Futures contracts outstanding at 7/31/08
| Description |
Contracts | Value | Expiration Date |
Unrealized Appreciation (Depreciation) |
||||||
| U.S. Treasury Note 10 yr (Long) |
40 | 4,593,125 | Sep-08 | $ | (2,015 | ) | ||||
7
MFS Intermediate Income Trust
Supplemental Information (Unaudited) 7/31/08 - continued
Swap Agreements at 7/31/08
| Expiration |
Notional Amount |
Counterparty |
Cash Flows to Receive |
Cash Flows to Pay |
Value | |||||||||
| Credit Default Swaps |
| |||||||||||||
| 9/20/12 | USD | 3,210,000 | JPMorgan Chase Bank | 0.36% (fixed rate) | (1) | $ | (5,587 | ) | ||||||
| 9/20/13 | USD | 1,250,000 | Goldman Sachs International | (2) | 0.645% (fixed rate) | (2,883 | ) | |||||||
| 9/20/13 | USD | 750,000 | Goldman Sachs International | (2) | 0.645% (fixed rate) | (1,716 | ) | |||||||
| 9/20/13 | USD | 2,010,000 | Merrill Lynch International | (3) | 0.77% (fixed rate) | 12,853 | ||||||||
| $ | 2,667 | |||||||||||||
| (1) | Fund to pay notional amount upon a defined credit event by Fannie Mae, 5.5%, 6/09/33. |
| (2) | Fund to receive notional amount upon a defined credit event by CIGNA Corp., 7.875%, 5/15/27. |
| (3) | Fund to receive notional amount upon a defined credit event by Autozone, Inc., 5.875%, 10/15/12. |
At July 31, 2008, the fund had sufficient cash and/or other liquid securities to cover any commitments under these derivative contracts.
(3) Country Weightings
Country weighting percentages of portfolio holdings based on total net assets as of July 31, 2008, are as follows:
| United States |
52.5 | % | |
| Japan |
9.2 | % | |
| United Kingdom |
7.5 | % | |
| Germany |
6.4 | % | |
| France |
5.6 | % | |
| Canada |
3.6 | % | |
| Ireland |
3.5 | % | |
| Austria |
2.4 | % | |
| Spain |
2.0 | % | |
| Other Countries |
7.3 | % |
The country weighting percentages include both accrued interest amounts and the equivalent exposure from any derivative holdings, if applicable.
8
| 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 INTERMEDIATE INCOME TRUST
| By (Signature and Title)* | ROBERT J. MANNING | |
| Robert J. Manning, President |
Date: September 12, 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: September 12, 2008
| By (Signature and Title)* | MARIA F. DWYER | |
| Maria F. Dwyer, Treasurer (Principal Financial Officer and Accounting Officer) |
Date: September 12, 2008
| * | Print name and title of each signing officer under his or her signature. |