MFS CHARTER INCOME TRUST N-Q

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.


LOGO


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.