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: February 28, 2010


ITEM 1. SCHEDULE OF INVESTMENTS.


LOGO


MFS Charter Income Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/10

 

Issuer

   Shares/Par    Value ($)

Bonds – 111.4%

     

Aerospace – 0.6%

     

BE Aerospace, Inc., 8.5%, 2018

   $ 815,000    $ 853,713

Bombardier, Inc., 7.45%, 2034 (n)

     125,000      114,375

Hawker Beechcraft Acquisition Co. LLC, 8.5%, 2015

     1,534,000      1,158,170

Spirit AeroSystems Holdings, Inc., 7.5%, 2017 (n)

     1,065,000      1,054,350
         
      $ 3,180,608
         

Airlines – 0.9%

     

American Airlines Pass-Through Trust, 7.377%, 2019

   $ 382,838    $ 306,271

Continental Airlines, Inc., 7.339%, 2014

     431,000      407,295

Continental Airlines, Inc., 7.25%, 2019

     440,000      457,600

Delta Air Lines, Inc., 7.111%, 2011

     585,000      590,850

Delta Air Lines, Inc., 7.711%, 2011

     995,000      985,050

Delta Air Lines, Inc., 7.75%, 2019

     2,205,000      2,260,125
         
      $ 5,007,191
         

Apparel Manufacturers – 0.2%

     

Hanesbrands, Inc., 8%, 2016

   $ 625,000    $ 637,500

Levi Strauss & Co., 9.75%, 2015

     405,000      422,212
         
      $ 1,059,712
         

Asset Backed & Securitized – 7.3%

     

Anthracite Ltd., “A” CDO, FRN, 0.588%, 2019 (z)

   $ 1,565,733    $ 1,080,356

Banc of America Commercial Mortgage, Inc., FRN, 5.744%, 2051

     1,500,000      1,433,240

Banc of America Commercial Mortgage, Inc., FRN, 6.166%, 2051

     6,000,000      5,891,810

Bayview Financial Acquisition Trust, FRN, 5.483%, 2041

     404,000      357,104

Bayview Financial Revolving Mortgage Loan Trust, FRN, 1.83%, 2040 (z)

     922,592      334,440

Citigroup/Deutsche Bank Commercial Mortgage Trust, FRN, 5.366%, 2049

     1,605,000      1,191,445

Commercial Mortgage Pass-Through Certificates, FRN, 5.793%, 2046

     230,000      204,045

Countrywide Asset-Backed Certificates, FRN, 5.147%, 2035

     1,931,644      1,894,461

Credit Suisse Mortgage Capital Certificate, 5.343%, 2039

     1,080,744      829,585

Credit Suisse Mortgage Capital Certificate, FRN, 5.722%, 2039

     1,400,000      1,411,944

Crest Ltd., CDO, 7%, 2040

     2,000,000      100,000

CWCapital LLC, 5.223%, 2048

     5,839,000      5,402,005

DLJ Commercial Mortgage Corp., 6.04%, 2031 (z)

     2,000,000      2,062,860

First Union-Lehman Brothers Bank of America, FRN, 0.451%, 2035 (i)

     19,907,309      380,990

First Union-Lehman Brothers Commercial Mortgage Trust, 7%, 2029 (n)

     520,624      548,455

Greenwich Capital Commercial Funding Corp., FRN, 5.883%, 2038

     4,839,456      4,797,767

JPMorgan Chase Commercial Mortgage Securities Corp., 5.42%, 2049

     1,255,000      1,145,430

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.746%, 2049

     1,500,000      1,424,050

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 5.818%, 2049

     1,000,000      1,007,762

JPMorgan Chase Commercial Mortgage Securities Corp., FRN, 6.061%, 2051

     185,000      59,318

Merrill Lynch Mortgage Trust, FRN, 5.826%, 2050

     185,000      52,282

Merrill Lynch Mortgage Trust, FRN, 5.826%, 2050

     1,350,000      1,246,893

Mortgage Capital Funding, Inc., FRN, 1.839%, 2031 (i)

     245,944      94

New Century Home Equity Loan Trust, FRN, 4.532%, 2035

     279,961      277,553

PNC Mortgage Acceptance Corp., FRN, 7.1%, 2032 (z)

     2,510,000      2,492,747

Spirit Master Funding LLC, 5.05%, 2023 (z)

     1,560,612      1,318,389

Structured Asset Securities Corp., FRN, 4.67%, 2035

     567,331      509,212

Wachovia Bank Commercial Mortgage Trust, FRN, 5.692%, 2047

     1,503,155      284,988

Wachovia Bank Commercial Mortgage Trust, FRN, 5.902%, 2051

     1,250,000      1,101,170
         
      $ 38,840,395
         

Automotive – 1.5%

     

Allison Transmission, Inc., 11%, 2015 (n)

   $ 1,645,000    $ 1,706,688

Ford Motor Credit Co. LLC, 12%, 2015

     4,028,000      4,601,281

Goodyear Tire & Rubber Co., 9%, 2015

     880,000      907,500

Goodyear Tire & Rubber Co., 10.5%, 2016

     700,000      754,250
         
      $ 7,969,719
         

 

1


MFS Charter Income Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/10 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Basic Industry – 0.1%

     

TriMas Corp., 9.75%, 2017 (n)

   $ 380,000    $ 381,900
         

Broadcasting – 2.5%

     

Allbritton Communications Co., 7.75%, 2012

   $ 1,015,000    $ 1,006,119

Inmarsat Finance PLC, 7.375%, 2017 (n)

     495,000      507,375

Intelsat Jackson Holdings Ltd., 9.5%, 2016

     3,370,000      3,538,500

Lamar Media Corp., 7.25%, 2013

     675,000      675,000

Lamar Media Corp., 6.625%, 2015

     740,000      706,700

Lamar Media Corp., “C”, 6.625%, 2015

     245,000      229,075

LIN TV Corp., 6.5%, 2013

     755,000      715,362

Local TV Finance LLC, 10%, 2015 (p)(z)

     992,250      544,084

Newport Television LLC, 13%, 2017 (n)(p)

     112,218      57,886

News America, Inc., 6.2%, 2034

     325,000      327,429

News America, Inc., 6.9%, 2039 (n)

     205,000      226,230

Nexstar Broadcasting Group, Inc., 0.5% to 2011, 7% to 2014 (n)(p)

     509,449      399,578

Nexstar Broadcasting Group, Inc., 7%, 2014

     168,000      131,880

Salem Communications Corp., 9.625%, 2016 (n)

     290,000      299,425

Sinclair Broadcast Group, Inc., 9.25%, 2017 (n)

     1,425,000      1,478,438

Univision Communications, Inc., 12%, 2014 (n)

     790,000      855,175

Univision Communications, Inc., 9.75%, 2015 (n)(p)

     1,515,600      1,267,042
         
      $ 12,965,298
         

Brokerage & Asset Managers – 0.4%

     

Janus Capital Group, Inc., 6.95%, 2017

   $ 1,700,000    $ 1,676,972

Nuveen Investments, Inc., 10.5%, 2015

     680,000      615,400
         
      $ 2,292,372
         

Building – 1.8%

     

Associated Materials, Inc., 11.25%, 2014

   $ 1,000,000    $ 990,000

Building Materials Holding Corp., 7%, 2020 (z)

     635,000      635,000

CEMEX Finance Europe B.V., 9.625%, 2017 (n)

   EUR   490,000      668,877

CEMEX Finance LLC, 9.5%, 2016 (n)

   $ 2,814,000      2,870,280

Nortek, Inc., 11%, 2013

     1,516,711      1,592,547

Owens Corning, 9%, 2019

     1,550,000      1,790,889

Ply Gem Industries, Inc., 11.75%, 2013

     350,000      355,250

Ply Gem Industries, Inc., 13.125%, 2014 (z)

     670,000      673,350
         
      $ 9,576,193
         

Business Services – 1.3%

     

First Data Corp., 9.875%, 2015

   $ 3,065,000    $ 2,651,225

First Data Corp., 11.25%, 2016

     785,000      643,700

Iron Mountain, Inc., 6.625%, 2016

     775,000      763,375

Iron Mountain, Inc., 8.375%, 2021

     460,000      472,075

SunGard Data Systems, Inc., 9.125%, 2013

     205,000      209,869

SunGard Data Systems, Inc., 10.25%, 2015

     1,570,000      1,628,875

Terremark Worldwide, Inc., 12%, 2017 (n)

     625,000      685,938
         
      $ 7,055,057
         

Cable TV – 2.8%

     

Cablevision Systems Corp., 8.625%, 2017 (z)

   $ 275,000    $ 283,250

CCO Holdings LLC, 8.75%, 2013

     1,860,000      1,887,900

Charter Communications, Inc., 10.875%, 2014 (n)

     395,000      439,931

CSC Holdings, Inc., 8.5%, 2014 (n)

     770,000      809,463

CSC Holdings, Inc., 8.5%, 2015 (n)

     1,980,000      2,079,000

Mediacom LLC, 9.125%, 2019 (n)

     1,395,000      1,401,975

TCI Communications, Inc., 9.8%, 2012

     701,000      798,703

Time Warner Cable, Inc., 5%, 2020

     2,150,000      2,129,547

Videotron LTEE, 6.875%, 2014

     2,110,000      2,117,912

Virgin Media Finance PLC, 9.125%, 2016

     2,185,000      2,256,012

 

2


MFS Charter Income Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/10 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Cable TV – continued

     

Virgin Media Finance PLC, 9.5%, 2016

   $ 395,000    $ 418,700
         
      $ 14,622,393
         

Chemicals – 2.2%

     

Ashland, Inc., 9.125%, 2017 (n)

   $ 1,755,000    $ 1,921,725

Hexion Finance Escrow LLC, 8.875%, 2018 (n)

     895,000      836,825

Hexion Specialty Chemicals, Inc., 9.75%, 2014

     1,315,000      1,242,675

Huntsman International LLC, 5.5%, 2016 (n)

     1,495,000      1,315,600

Innophos Holdings, Inc., 8.875%, 2014

     760,000      780,900

Lumena Resources Corp., 12%, 2014 (n)

     2,540,000      2,159,841

Momentive Performance Materials, Inc., 12.5%, 2014 (n)

     1,476,000      1,623,600

Momentive Performance Materials, Inc., 11.5%, 2016

     343,000      279,116

Mosaic Co., 7.625%, 2016 (n)

     1,525,000      1,665,009
         
      $ 11,825,291
         

Computer Software – 0.4%

     

Seagate Technology HDD Holdings, 6.375%, 2011

   $ 1,950,000    $ 2,008,500
         

Computer Software - Systems – 0.5%

     

DuPont Fabros Technology, Inc., 8.5%, 2017 (n)

   $ 1,015,000    $ 1,030,225

International Business Machines Corp., 8%, 2038

     1,000,000      1,345,600
         
      $ 2,375,825
         

Conglomerates – 0.3%

     

Actuant Corp., 6.875%, 2017

   $ 1,005,000    $ 969,825

Kennametal, Inc., 7.2%, 2012

     684,000      727,684
         
      $ 1,697,509
         

Construction – 0.2%

     

Corporacion GEO S.A.B. de C.V., 8.875%, 2014 (n)

   $ 1,227,000    $ 1,273,013
         

Consumer Products 0.7%

     

ACCO Brands Corp., 10.625%, 2015 (n)

   $ 105,000    $ 114,135

ACCO Brands Corp., 7.625%, 2015

     255,000      233,962

Central Garden & Pet Co., 8.25%, 2018

     455,000      458,981

Fortune Brands, Inc., 5.125%, 2011

     671,000      692,428

Jarden Corp., 7.5%, 2017

     1,405,000      1,412,025

Libbey Glass, Inc., 10%, 2015 (z)

     360,000      372,600

Visant Holding Corp., 8.75%, 2013

     500,000      507,500
         
      $ 3,791,631
         

Consumer Services – 1.6%

     

Corrections Corp. of America, 6.25%, 2013

   $ 310,000    $ 311,937

Corrections Corp. of America, 7.75%, 2017

     1,000,000      1,025,000

Grupo Posadas S.A. de C.V., 9.25%, 2015 (n)

     113,000      116,390

KAR Holdings, Inc., 10%, 2015

     1,135,000      1,183,238

KAR Holdings, Inc., FRN, 4.248%, 2014

     380,000      351,500

Service Corp. International, 7.375%, 2014

     500,000      508,750

Service Corp. International, 7%, 2017

     4,030,000      3,949,400

Ticketmaster Entertainment, Inc., 10.75%, 2016

     780,000      858,000
         
      $ 8,304,215
         

Containers – 1.3%

     

Crown Americas LLC, 7.625%, 2013

   $ 200,000    $ 206,000

Crown Americas LLC, 7.75%, 2015

     565,000      583,362

Graham Packaging Holdings Co., 9.875%, 2014

     1,800,000      1,836,000

Greif, Inc., 6.75%, 2017

     855,000      842,175

Greif, Inc., 7.75%, 2019

     1,000,000      1,030,000

Owens-Brockway Glass Container, Inc., 8.25%, 2013

     505,000      512,575

Owens-Illinois, Inc., 7.375%, 2016

     1,000,000      1,032,500

 

3


MFS Charter Income Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/10 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Containers – continued

     

Reynolds Group, 7.75%, 2016 (n)

   $ 1,050,000    $ 1,063,125
         
      $ 7,105,737
         

Defense Electronics – 0.7%

     

BAE Systems Holdings, Inc., 4.75%, 2010 (n)

   $ 474,000    $ 479,750

BAE Systems Holdings, Inc., 5.2%, 2015 (n)

     450,000      474,697

L-3 Communications Corp., 5.875%, 2015

     1,180,000      1,184,425

L-3 Communications Corp., 6.375%, 2015

     1,500,000      1,524,375
         
      $ 3,663,247
         

Electronics – 0.7%

     

Flextronics International Ltd., 6.25%, 2014

   $ 635,000    $ 633,412

Freescale Semiconductor, Inc., 8.875%, 2014

     1,635,000      1,451,062

Freescale Semiconductor, Inc., 10.125%, 2018 (z)

     385,000      388,850

Jabil Circuit, Inc., 7.75%, 2016

     1,140,000      1,179,900
         
      $ 3,653,224
         

Emerging Market Quasi-Sovereign – 4.0%

     

BNDES Participacoes S.A., 5.5%, 2020 (n)

   $ 138,000    $ 135,585

Ecopetrol S.A., 7.625%, 2019

     594,000      653,400

Gaz Capital S.A., 8.125%, 2014 (n)

     1,464,000      1,611,864

KazMunaiGaz Finance B.V., 11.75%, 2015 (n)

     2,563,000      3,152,490

KazMunaiGaz Finance B.V., 9.125%, 2018 (n)

     733,000      831,955

Korea Development Bank, 4.375%, 2015

     665,000      674,041

Majapahit Holding B.V., 7.25%, 2017 (n)

     1,478,000      1,522,340

Majapahit Holding B.V., 8%, 2019 (n)

     492,000      521,520

Majapahit Holding B.V., 7.75%, 2020 (n)

     1,324,000      1,373,650

Pemex Project Funding Master Trust, 5.75%, 2018

     642,000      650,074

Petrobras International Finance Co., 7.875%, 2019

     1,361,000      1,567,397

Petroleos de Venezuela S.A., 5.25%, 2017

     950,000      577,125

Petroleos Mexicanos, 8%, 2019

     1,101,000      1,277,160

Petroleos Mexicanos, 6%, 2020 (n)

     1,195,000      1,215,315

Qtel International Finance Ltd., 7.875%, 2019 (n)

     2,206,000      2,511,171

Ras Laffan Liquefied Natural Gas Co. Ltd., 8.294%, 2014 (n)

     1,344,600      1,465,107

Ras Laffan Liquefied Natural Gas Co. Ltd., 6.75%, 2019 (n)

     1,442,000      1,573,583
         
      $ 21,313,777
         

Emerging Market Sovereign – 2.9%

     

Republic of Argentina, 8.28%, 2033

   $ 866,660    $ 565,496

Republic of Argentina, 2.5%, to 2019, 3.75% to 2029, 5.25% to 2038

     1,848,000      593,208

Republic of Argentina, FRN, 0.389%, 2012

     1,460,363      1,265,215

Republic of Colombia, 7.375%, 2019

     465,000      532,425

Republic of Colombia, 8.125%, 2024

     664,000      791,820

Republic of Colombia, 6.125%, 2041

     1,580,000      1,477,300

Republic of Indonesia, 6.875%, 2018

     204,000      226,440

Republic of Indonesia, 11.625%, 2019 (n)

     1,423,000      2,042,005

Republic of Indonesia, 5.875%, 2020 (n)

     1,023,000      1,057,526

Republic of Indonesia, 7.75%, 2038 (n)

     593,000      659,712

Republic of Panama, 9.375%, 2029

     1,062,000      1,423,080

Republic of Peru, 7.125%, 2019

     298,000      345,680

Republic of Peru, 7.35%, 2025

     355,000      413,575

Republic of Philippines, 6.5%, 2020

     358,000      382,613

Republic of Philippines, 6.375%, 2034

     1,377,000      1,306,429

State of Qatar, 5.25%, 2020 (n)

     780,000      791,700

Ukraine Government International, 6.58%, 2016

     1,389,000      1,194,679

United Mexican States, 5.95%, 2019

     266,000      284,620
         
      $ 15,353,523
         

 

4


MFS Charter Income Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/10 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Energy - Independent – 3.9%

     

Anadarko Petroleum Corp., 6.45%, 2036

   $ 160,000    $ 167,745

Chaparral Energy, Inc., 8.875%, 2017

     970,000      792,975

Chesapeake Energy Corp., 9.5%, 2015

     1,065,000      1,158,188

Chesapeake Energy Corp., 6.375%, 2015

     5,000      4,837

Chesapeake Energy Corp., 6.875%, 2016

     435,000      427,931

Forest Oil Corp., 8.5%, 2014

     70,000      72,275

Forest Oil Corp., 7.25%, 2019

     1,215,000      1,190,700

Hilcorp Energy I LP, 9%, 2016 (n)

     1,080,000      1,093,500

Mariner Energy, Inc., 8%, 2017

     1,310,000      1,251,050

McMoRan Exploration Co., 11.875%, 2014

     1,255,000      1,342,850

Newfield Exploration Co., 6.625%, 2014

     650,000      659,750

Newfield Exploration Co., 6.625%, 2016

     225,000      223,312

OPTI Canada, Inc., 8.25%, 2014

     1,235,000      1,099,150

Penn Virginia Corp., 10.375%, 2016

     1,630,000      1,760,400

Petrohawk Energy Corp., 10.5%, 2014

     560,000      607,600

Pioneer Natural Resources Co., 6.875%, 2018

     1,175,000      1,155,622

Pioneer Natural Resources Co., 7.5%, 2020

     765,000      767,908

Plains Exploration & Production Co., 7%, 2017

     1,370,000      1,339,175

Quicksilver Resources, Inc., 8.25%, 2015

     1,055,000      1,065,550

Range Resources Corp., 8%, 2019

     1,535,000      1,607,913

SandRidge Energy, Inc., 9.875%, 2016 (n)

     250,000      258,125

SandRidge Energy, Inc., 8%, 2018 (n)

     1,300,000      1,244,750

Southwestern Energy Co., 7.5%, 2018

     1,175,000      1,239,625

Talisman Energy, Inc., 7.75%, 2019

     280,000      333,595
         
      $ 20,864,526
         

Energy - Integrated – 0.8%

     

CCL Finance Ltd., 9.5%, 2014 (n)

   $ 1,244,000    $ 1,387,060

CCL Finance Ltd., 9.5%, 2014

     457,000      509,555

Hess Corp., 8.125%, 2019

     100,000      122,243

Husky Energy, Inc., 5.9%, 2014

     306,000      335,558

Husky Energy, Inc., 7.25%, 2019

     324,000      377,834

Listrindo Capital B.V., 9.25%, 2015 (n)

     137,000      141,085

Pacific Rubiales Energy Corp., 8.75%, 2016 (n)

     1,005,000      1,070,325

TNK-BP Finance S.A., 6.25%, 2015 (n)

     223,000      226,345

TNK-BP Finance S.A., 7.25%, 2020 (n)

     273,000      270,953
         
      $ 4,440,958
         

Entertainment – 0.7%

     

AMC Entertainment, Inc., 11%, 2016

   $ 1,200,000    $ 1,287,000

AMC Entertainment, Inc., 8.75%, 2019

     1,160,000      1,197,700

Cinemark USA, Inc., 8.625%, 2019

     1,260,000      1,310,400
         
      $ 3,795,100
         

Financial Institutions – 1.9%

     

CIT Group, Inc., 7%, 2014

   $ 380,000    $ 347,700

CIT Group, Inc., 7%, 2017

     2,085,000      1,842,619

Credit Acceptance Corp., 9.125%, 2017 (z)

     500,000      497,500

GMAC, Inc., 6.875%, 2011

     293,000      293,000

GMAC, Inc., 7%, 2012

     455,000      452,725

GMAC, Inc., 6.75%, 2014

     2,365,000      2,258,575

GMAC, Inc., 8%, 2031

     2,109,000      1,945,553

International Lease Finance Corp., 5.625%, 2013

     2,615,000      2,230,619
         
      $ 9,868,291
         

Food & Beverages – 1.7%

     

Anheuser-Busch Cos., Inc., 6.875%, 2019 (n)

   $ 1,300,000    $ 1,497,306

ARAMARK Corp., 8.5%, 2015

     1,154,000      1,165,540

 

5


MFS Charter Income Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/10 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Food & Beverages – continued

     

CEDC Finance Corp. International, Inc., 9.125%, 2016 (n)

   $ 453,000    $ 473,385

Dean Foods Co., 7%, 2016

     1,300,000      1,235,000

Del Monte Foods Co., 6.75%, 2015

     1,170,000      1,193,400

Del Monte Foods Co., 7.5%, 2019 (n)

     1,000,000      1,015,000

Pinnacle Foods Finance LLC, 9.25%, 2015

     990,000      1,004,850

TreeHouse Foods, Inc., 7.75%, 2018

     520,000      533,650

Tyson Foods, Inc., 7.85%, 2016

     912,000      964,440
         
      $ 9,082,571
         

Forest & Paper Products – 1.5%

     

Buckeye Technologies, Inc., 8.5%, 2013

   $ 177,000    $ 180,098

Cascades, Inc., 7.75%, 2017 (n)

     445,000      449,450

Cellu Tissue Holdings, Inc., 11.5%, 2014

     770,000      852,775

Georgia-Pacific Corp., 7.125%, 2017 (n)

     3,585,000      3,620,850

Georgia-Pacific Corp., 8%, 2024

     535,000      557,737

Georgia-Pacific Corp., 7.25%, 2028

     205,000      197,312

Graphic Packaging International Corp., 9.5%, 2013

     635,000      647,700

Jefferson Smurfit Corp., 8.25%, 2012 (d)

     480,000      396,000

JSG Funding PLC, 7.75%, 2015

     40,000      38,800

Smurfit Kappa Group PLC, 7.75%, 2019 (n)

   EUR   560,000      758,712
         
      $ 7,699,434
         

Gaming & Lodging – 3.2%

     

Ameristar Casinos, Inc., 9.25%, 2014

   $ 735,000    $ 751,538

Boyd Gaming Corp., 6.75%, 2014

     415,000      353,269

Firekeepers Development Authority, 13.875%, 2015 (n)

     330,000      379,500

Fontainebleau Las Vegas Holdings LLC, 10.25%, 2015 (d)(n)

     460,000      4,887

Gaylord Entertainment Co., 6.75%, 2014

     665,000      625,100

Harrah’s Operating Co., Inc., 11.25%, 2017

     445,000      461,688

Harrah’s Operating Co., Inc., 10%, 2018

     735,000      554,925

Harrah’s Operating Co., Inc., 10%, 2018

     1,439,000      1,086,445

Host Hotels & Resorts, Inc., 6.75%, 2016

     1,150,000      1,132,750

Host Hotels & Resorts, Inc., 9%, 2017 (n)

     1,255,000      1,342,850

MGM Mirage, 10.375%, 2014 (n)

     145,000      153,700

MGM Mirage, 7.5%, 2016

     440,000      348,700

MGM Mirage, 11.125%, 2017 (n)

     365,000      394,200

MGM Mirage, 11.375%, 2018 (n)

     1,865,000      1,725,125

Penn National Gaming, Inc., 8.75%, 2019 (n)

     1,065,000      1,054,350

Pinnacle Entertainment, Inc., 7.5%, 2015

     550,000      455,125

Royal Caribbean Cruises Ltd., 7%, 2013

     545,000      540,912

Royal Caribbean Cruises Ltd., 11.875%, 2015

     2,050,000      2,321,625

Scientific Games Corp., 6.25%, 2012

     380,000      376,200

Starwood Hotels & Resorts Worldwide, Inc., 6.75%, 2018

     1,235,000      1,228,825

Station Casinos, Inc., 6%, 2012 (d)

     1,730,000      250,850

Station Casinos, Inc., 6.5%, 2014 (d)

     25,000      130

Station Casinos, Inc., 6.875%, 2016 (d)

     980,000      5,096

Wyndham Worldwide Corp., 6%, 2016

     1,460,000      1,417,580
         
      $ 16,965,370
         

Industrial – 0.8%

     

Altra Holdings, Inc., 8.125%, 2016 (n)

   $ 350,000    $ 358,750

Aquilex Corp., 11.125%, 2016 (n)

     870,000      909,150

Baldor Electric Co., 8.625%, 2017

     1,260,000      1,291,500

Great Lakes Dredge & Dock Corp., 7.75%, 2013

     550,000      544,500

Johnsondiversey Holdings, Inc., 8.25%, 2019 (n)

     680,000      700,400

Oshkosh Corp., 8.25%, 2017 (z)

     125,000      125,000

Oshkosh Corp., 8.5%, 2020 (z)

     140,000      140,000
         
      $ 4,069,300
         

 

6


MFS Charter Income Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/10 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Insurance – 1.1%

     

ING Groep N.V., 5.775% to 2015, FRN to 2049

   $ 2,100,000    $ 1,637,376

MetLife, Inc., 9.25% to 2038, FRN to 2068 (n)

     800,000      888,000

Metropolitan Life Global Funding, 2.875%, 2012 (n)

     1,350,000      1,375,268

Metropolitan Life Global Funding, 5.125%, 2014 (n)

     860,000      922,948

Unum Group, 7.125%, 2016

     1,171,000      1,249,876
         
      $ 6,073,468
         

Insurance - Property & Casualty – 1.3%

     

Allstate Corp., 7.45%, 2019

   $ 850,000    $ 998,281

AXIS Capital Holdings Ltd., 5.75%, 2014

     1,013,000      1,067,671

Liberty Mutual Group, Inc., 10.75% to 2038, FRN to 2058 (n)

     1,170,000      1,263,600

USI Holdings Corp., FRN, 4.125%, 2014 (n)

     2,005,000      1,659,137

ZFS Finance USA Trust II, 6.45% to 2016, FRN to 2065 (z)

     1,190,000      1,071,000

ZFS Finance USA Trust V, 6.5% to 2017, FRN to 2037 (n)

     627,000      564,300
         
      $ 6,623,989
         

International Market Quasi-Sovereign – 1.7%

     

Bank of Ireland, 2.75%, 2012 (n)

   $ 1,480,000    $ 1,478,339

Canada Housing Trust, 4.6%, 2011 (n)

   CAD 392,000      392,700

Commonwealth Bank of Australia, 2.9%, 2014 (n)

   $ 1,780,000      1,801,720

ING Bank N.V., 3.9%, 2014 (n)

     1,390,000      1,450,775

Irish Life & Permanent PLC, 3.6%, 2013 (n)

     1,500,000      1,505,186

KFW International Finance, Inc., 4.875%, 2019

     1,000,000      1,079,924

Societe Financement de l’ Economie Francaise, 3.375%, 2014 (n)

     1,000,000      1,041,580
         
      $ 8,750,224
         

International Market Sovereign – 12.7%

     

Federal Republic of Germany, 5.25%, 2010

   EUR 2,329,000    $ 3,223,134

Federal Republic of Germany, 3.75%, 2015

   EUR 2,288,000      3,347,526

Federal Republic of Germany, 4.25%, 2018

   EUR 619,000      924,273

Federal Republic of Germany, 6.25%, 2030

   EUR 847,000      1,530,464

Government of Canada, 4.5%, 2015

   CAD 747,000      775,895

Government of Canada, 5.75%, 2033

   CAD 136,000      161,860

Government of Japan, 1.5%, 2012

   JPY 549,000,000      6,365,520

Government of Japan, 1.3%, 2014

   JPY 225,600,000      2,631,614

Government of Japan, 1.7%, 2017

   JPY 644,600,000      7,689,651

Government of Japan, 2.2%, 2027

   JPY 619,000,000      7,152,685

Kingdom of Belgium, 5.5%, 2017

   EUR 378,000      596,181

Kingdom of Spain, 5.35%, 2011

   EUR 2,269,000      3,295,165

Kingdom of Spain, 4.6%, 2019

   EUR 517,000      749,698

Kingdom of Sweden, 4.5%, 2015

   SEK 2,635,000      406,404

Kingdom of the Netherlands, 3.75%, 2014

   EUR 1,333,000      1,944,495

Kingdom of the Netherlands, 5.5%, 2028

   EUR 454,000      746,983

Republic of Austria, 4.65%, 2018

   EUR 1,345,000      2,018,774

Republic of Finland, 3.875%, 2017

   EUR 921,000      1,331,519

Republic of France, 4.75%, 2012

   EUR 703,000      1,042,817

Republic of France, 4.75%, 2035

   EUR 1,370,000      2,078,049

Republic of Ireland, 4.6%, 2016

   EUR 1,629,000      2,327,992

Republic of Italy, 4.75%, 2013

   EUR 5,607,000      8,236,775

Republic of Italy, 5.25%, 2017

   EUR 2,779,000      4,259,148

United Kingdom Treasury, 8%, 2015

   GBP 755,000      1,459,544

United Kingdom Treasury, 8%, 2021

   GBP 953,000      1,965,523

United Kingdom Treasury, 4.25%, 2036

   GBP 739,000      1,067,894
         
      $ 67,329,583
         

Machinery & Tools – 0.6%

     

Case New Holland, Inc., 7.125%, 2014

   $ 1,995,000    $ 1,995,000

 

7


MFS Charter Income Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/10 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Machinery & Tools – continued

     

Rental Service Corp., 9.5%, 2014

   $ 1,010,000    $ 977,175
         
      $ 2,972,175
         

Major Banks – 2.8%

     

Bank of America Corp., 7.375%, 2014

   $ 1,000,000    $ 1,124,460

Bank of America Corp., 7.625%, 2019

     370,000      418,416

Bank of America Corp., 8% to 2018, FRN to 2049

     3,275,000      3,121,468

BNP Paribas, 5.186% to 2015, FRN to 2049 (n)

     1,667,000      1,436,554

Credit Suisse New York, 5.5%, 2014

     1,000,000      1,092,431

Goldman Sachs Group, Inc., 6%, 2014

     2,000,000      2,195,010

JPMorgan Chase & Co., 6.3%, 2019

     1,000,000      1,108,948

Morgan Stanley, 5.75%, 2016

     397,000      412,663

Morgan Stanley, 6.625%, 2018

     391,000      416,017

Morgan Stanley, 7.3%, 2019

     830,000      917,743

Morgan Stanley, 5.625%, 2019

     1,500,000      1,487,232

MUFG Capital Finance 1 Ltd., 6.346% to 2016, FRN to 2049

     289,000      282,367

Royal Bank of Scotland Group PLC, FRN, 7.648%, 2049

     330,000      266,475

UniCredito Luxembourg Finance S.A., 6%, 2017 (n)

     498,000      501,200
         
      $ 14,780,984
         

Medical & Health Technology & Services – 5.3%

     

Biomet, Inc., 10%, 2017

   $ 615,000    $ 671,888

Biomet, Inc., 11.625%, 2017

     2,260,000      2,497,300

Community Health Systems, Inc., 8.875%, 2015

     3,510,000      3,632,850

Cooper Cos., Inc., 7.125%, 2015

     570,000      561,450

DaVita, Inc., 6.625%, 2013

     794,000      795,985

DaVita, Inc., 7.25%, 2015

     1,595,000      1,600,981

Fisher Scientific International, Inc., 6.125%, 2015

     1,254,000      1,304,160

Fresenius Medical Care AG & Co. KGaA, 9%, 2015 (n)

     665,000      734,825

HCA, Inc., 8.75%, 2010

     480,000      490,800

HCA, Inc., 9.25%, 2016

     6,130,000      6,505,462

HCA, Inc., 8.5%, 2019 (n)

     605,000      648,863

HealthSouth Corp., 8.125%, 2020

     1,005,000      979,875

Hospira, Inc., 6.05%, 2017

     655,000      711,908

McKesson Corp., 7.5%, 2019

     110,000      131,932

Owens & Minor, Inc., 6.35%, 2016

     970,000      906,433

Psychiatric Solutions, Inc., 7.75%, 2015

     445,000      427,200

Psychiatric Solutions, Inc., 7.75%, 2015 (n)

     260,000      243,100

Tenet Healthcare Corp., 9.25%, 2015

     1,445,000      1,466,675

U.S. Oncology, Inc., 10.75%, 2014

     655,000      681,200

United Surgical Partners International, Inc., 8.875%, 2017

     225,000      230,062

United Surgical Partners International, Inc., 9.25%, 2017 (p)

     245,000      252,350

Universal Hospital Services, Inc., 8.5%, 2015 (p)

     1,530,000      1,484,100

VWR Funding, Inc., 10.25%, 2015 (p)

     1,204,125      1,276,373
         
      $ 28,235,772
         

Metals & Mining – 3.1%

     

Arch Western Finance LLC, 6.75%, 2013

   $ 1,655,000    $ 1,659,137

Bumi Capital Pte Ltd., 12%, 2016 (n)

     1,427,000      1,469,810

Cloud Peak Energy, Inc., 8.25%, 2017 (n)

     545,000      543,638

Cloud Peak Energy, Inc., 8.5%, 2019 (n)

     545,000      550,450

FMG Finance Ltd., 10.625%, 2016 (n)

     730,000      813,950

Freeport-McMoRan Copper & Gold, Inc., 8.375%, 2017

     4,355,000      4,725,175

Gerdau Holdings, Inc., 7%, 2020 (n)

     924,000      933,240

International Steel Group, Inc., 6.5%, 2014

     1,300,000      1,414,958

Ispat Inland ULC, 9.75%, 2014

     1,200,000      1,245,600

Peabody Energy Corp., 5.875%, 2016

     675,000      666,562

Peabody Energy Corp., 7.375%, 2016

     1,245,000      1,316,587

 

8


MFS Charter Income Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/10 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Metals & Mining – continued

     

Peabody Energy Corp., “B”, 6.875%, 2013

   $ 1,000,000    $ 1,012,500
         
      $ 16,351,607
         

Mortgage Backed – 5.7%

     

Fannie Mae, 3.81%, 2013

   $ 313,021    $ 327,234

Fannie Mae, 4.1%, 2013

     510,994      538,172

Fannie Mae, 4.19%, 2013

     416,228      439,913

Fannie Mae, 4.845%, 2013

     140,911      151,315

Fannie Mae, 4.6%, 2014

     725,244      775,039

Fannie Mae, 4.609%, 2014

     489,019      522,942

Fannie Mae, 4.77%, 2014

     333,115      358,296

Fannie Mae, 4.56%, 2015

     179,762      191,213

Fannie Mae, 4.665%, 2015

     145,750      155,764

Fannie Mae, 4.7%, 2015

     139,119      148,868

Fannie Mae, 4.74%, 2015

     344,477      369,056

Fannie Mae, 4.78%, 2015

     401,966      431,064

Fannie Mae, 4.815%, 2015

     360,000      386,501

Fannie Mae, 4.87%, 2015

     294,168      316,323

Fannie Mae, 4.89%, 2015

     98,207      105,979

Fannie Mae, 4.921%, 2015

     982,930      1,061,429

Fannie Mae, 6%, 2016 - 2037

     3,981,141      4,253,073

Fannie Mae, 5.5%, 2019 - 2035

     11,165,653      11,840,332

Fannie Mae, 4.88%, 2020

     273,907      292,214

Fannie Mae, 6.5%, 2032 - 2033

     951,427      1,032,935

Fannie Mae, 5%, 2034

     3,059,376      3,188,170

Freddie Mac, 5%, 2024

     26,548      26,794

Freddie Mac, 5.5%, 2034

     2,584,214      2,742,527

Freddie Mac, 6%, 2034

     692,663      750,163
         
      $ 30,405,316
         

Natural Gas - Distribution – 0.8%

     

AmeriGas Partners LP, 7.25%, 2015

   $ 670,000    $ 673,350

AmeriGas Partners LP, 7.125%, 2016

     1,925,000      1,929,812

Inergy LP, 6.875%, 2014

     1,585,000      1,545,375
         
      $ 4,148,537
         

Natural Gas - Pipeline – 1.7%

     

Atlas Pipeline Partners LP, 8.125%, 2015

   $ 1,500,000    $ 1,406,250

Atlas Pipeline Partners LP, 8.75%, 2018

     250,000      233,750

CenterPoint Energy, Inc., 7.875%, 2013

     960,000      1,106,640

Crosstex Energy, Inc., 8.875%, 2018 (z)

     415,000      421,225

Deutsche Bank (El Paso Performance-Linked Trust, CLN), 7.75%, 2011 (n)

     1,550,000      1,616,216

El Paso Corp., 8.25%, 2016

     675,000      715,500

El Paso Corp., 7%, 2017

     345,000      346,059

El Paso Corp., 7.75%, 2032

     546,000      527,564

MarkWest Energy Partners LP, 6.875%, 2014

     1,720,000      1,659,800

MarkWest Energy Partners LP, 8.75%, 2018

     165,000      167,063

Spectra Energy Capital LLC, 8%, 2019

     810,000      965,454
         
      $ 9,165,521
         

Network & Telecom – 2.5%

     

AT&T, Inc., 6.55%, 2039

   $ 170,000    $ 179,612

Axtel S.A.B. de C.V., 9%, 2019 (n)

     174,000      177,045

Cincinnati Bell, Inc., 8.375%, 2014

     910,000      916,825

Cincinnati Bell, Inc., 8.25%, 2017

     815,000      815,000

Citizens Communications Co., 9%, 2031

     680,000      659,600

Nordic Telephone Co. Holdings, 8.875%, 2016 (n)

     2,177,000      2,329,390

Qwest Communications International, Inc., 8%, 2015 (n)

     365,000      377,775

 

9


MFS Charter Income Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/10 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Network & Telecom – continued

     

Qwest Communications International, Inc., 7.125%, 2018 (n)

   $ 825,000    $ 825,000

Qwest Corp., 7.875%, 2011

     700,000      740,250

Qwest Corp., 8.375%, 2016

     278,000      304,410

Telemar Norte Leste S.A., 9.5%, 2019 (n)

     1,023,000      1,205,861

TELUS Corp., 8%, 2011

     545,000      588,451

Verizon New York, Inc., 6.875%, 2012

     1,525,000      1,671,736

Windstream Corp., 8.625%, 2016

     2,290,000      2,330,075
         
      $ 13,121,030
         

Oil Services – 0.6%

     

Allis-Chalmers Energy, Inc., 8.5%, 2017

   $ 490,000    $ 417,725

Basic Energy Services, Inc., 7.125%, 2016

     195,000      165,750

Expro Finance Luxembourg, 8.5%, 2016 (n)

     755,000      751,225

McJunkin Red Man Holding Corp., 9.5%, 2016 (z)

     635,000      636,588

Trico Shipping A.S., 11.875%, 2014 (n)

     1,245,000      1,206,094
         
      $ 3,177,382
         

Oils – 0.0%

     

Petroplus Holdings AG, 9.375%, 2019 (n)

   $ 295,000    $ 259,600
         

Other Banks & Diversified Financials – 2.6%

     

Banco BMG S.A., 9.95%, 2019

   $ 1,467,000    $ 1,549,505

Banco BMG S.A., 9.95%, 2019 (n)

     100,000      105,624

Banco Votorantim S.A., 7.375%, 2020 (n)

     1,292,000      1,325,915

Bosphorus Financial Services Ltd., FRN, 2.05%, 2012 (z)

     750,000      718,196

Capital One Financial Corp., 8.8%, 2019

     320,000      384,538

Capital One Financial Corp., 10.25%, 2039

     1,000,000      1,134,243

Groupe BPCE S.A., 12.5% to 2019, FRN to 2049 (n)

     1,974,000      2,328,333

LBG Capital No.1 PLC, 7.875%, 2020 (z)

     890,000      738,700

Resona Bank Ltd., 5.85% to 2016, FRN to 2049 (n)

     655,000      599,362

Santander UK PLC, 8.963% to 2030, FRN to 2049

     295,000      308,275

Svenska Handelsbanken AB, 2.875%, 2012 (n)

     900,000      915,627

Svenska Handelsbanken AB, 4.875%, 2014 (n)

     1,000,000      1,056,356

VTB Capital S.A., 6.465%, 2015 (z)

     1,169,000      1,164,324

Woori Bank, 6.125% to 2011, FRN to 2016 (n)

     1,490,000      1,512,597
         
      $ 13,841,595
         

Pharmaceuticals – 0.2%

     

Roche Holdings, Inc., 6%, 2019 (n)

   $ 1,000,000    $ 1,106,053
         

Pollution Control – 0.2%

     

Allied Waste North America, Inc., 7.125%, 2016

   $ 75,000    $ 81,000

Allied Waste North America, Inc., 6.875%, 2017

     870,000      939,600
         
      $ 1,020,600
         

Precious Metals & Minerals – 0.7%

     

Alrosa Finance S.A., 8.875%, 2014

   $ 400,000    $ 429,200

Teck Resources Ltd., 9.75%, 2014

     450,000      531,000

Teck Resources Ltd., 10.25%, 2016

     680,000      810,900

Teck Resources Ltd., 10.75%, 2019

     1,480,000      1,820,400
         
      $ 3,591,500
         

Printing & Publishing – 0.6%

     

American Media Operations, Inc., 9%, 2013 (p)(z)

   $ 10,866    $ 6,636

American Media Operations, Inc., 14%, 2013 (p)(z)

     116,181      68,989

McClatchy Co., 11.5%, 2017 (z)

     640,000      624,000

Nielsen Finance LLC, 10%, 2014

     1,790,000      1,857,125

Nielsen Finance LLC, 11.5%, 2016

     545,000      606,994
         
      $ 3,163,744
         

 

10


MFS Charter Income Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/10 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Railroad & Shipping – 0.4%

     

Kansas City Southern Railway, 8%, 2015

   $ 1,895,000    $ 1,942,375
         

Real Estate – 0.4%

     

CB Richard Ellis Group, Inc., 11.625%, 2017

   $ 220,000    $ 242,550

HRPT Properties Trust, REIT, 6.25%, 2016

     853,000      852,097

Simon Property Group, Inc., REIT, 5.875%, 2017

     756,000      790,775
         
      $ 1,885,422
         

Retailers – 2.1%

     

Couche-Tard, Inc., 7.5%, 2013

   $ 350,000    $ 351,750

Dollar General Corp., 11.875%, 2017 (p)

     261,000      302,108

General Nutrition Centers, Inc., FRN, 5.177%, 2014 (p)

     740,000      680,800

Home Depot, Inc., 5.875%, 2036

     509,000      498,526

Limited Brands, Inc., 5.25%, 2014

     635,000      615,950

Limited Brands, Inc., 6.95%, 2033

     275,000      235,125

Macy’s, Inc., 5.75%, 2014

     1,680,000      1,684,200

Macy’s, Inc., 5.9%, 2016

     820,000      795,400

Macy’s, Inc., 6.375%, 2037

     355,000      312,400

Neiman Marcus Group, Inc., 10.375%, 2015

     1,315,000      1,308,425

Sally Beauty Holdings, Inc., 10.5%, 2016

     1,270,000      1,368,425

Toys “R” Us, Inc., 7.625%, 2011

     220,000      224,400

Toys “R” Us, Inc., 10.75%, 2017 (n)

     1,040,000      1,141,400

Toys “R” Us, Inc., 8.5%, 2017 (n)

     1,575,000      1,590,750
         
      $ 11,109,659
         

Specialty Stores – 0.1%

     

GSC Holdings Corp., 8%, 2012

   $ 220,000    $ 226,600

Payless ShoeSource, Inc., 8.25%, 2013

     151,000      153,643
         
      $ 380,243
         

Supermarkets – 0.2%

     

Delhaize America, Inc., 9%, 2031

   $ 588,000    $ 749,067

SUPERVALU, Inc., 8%, 2016

     440,000      443,300
         
      $ 1,192,367
         

Supranational – 0.9%

     

Central American Bank, 4.875%, 2012 (n)

   $ 1,426,000    $ 1,473,979

Eurasian Development Bank, 7.375%, 2014 (n)

     211,000      222,605

European Investment Bank, 5.125%, 2017

     2,593,000      2,891,236
         
      $ 4,587,820
         

Telecommunications - Wireless – 2.5%

     

AT&T Wireless Services, Inc., 8.75%, 2031

   $ 900,000    $ 1,159,841

Cingular Wireless LLC, 6.5%, 2011

     1,020,000      1,110,974

Cricket Communications, Inc., 7.75%, 2016

     560,000      569,100

Crown Castle International Corp., 9%, 2015

     1,475,000      1,593,000

Crown Castle International Corp., 7.75%, 2017 (n)

     715,000      773,988

Crown Castle International Corp., 7.125%, 2019

     330,000      330,000

Digicel Group Ltd., 12%, 2014 (n)

     100,000      111,500

Digicel Group Ltd., 8.25%, 2017 (n)

     710,000      674,500

Net Servicos de Comunicacao S.A., 7.5%, 2020 (n)

     758,000      775,055

Nextel Communications, Inc., 6.875%, 2013

     660,000      633,600

NII Holdings, Inc., 10%, 2016 (n)

     1,615,000      1,752,275

SBA Communications Corp., 8%, 2016 (n)

     260,000      270,400

SBA Communications Corp., 8.25%, 2019 (n)

     220,000      231,000

Sprint Nextel Corp., 8.375%, 2017

     1,810,000      1,751,175

Sprint Nextel Corp., 8.75%, 2032

     380,000      335,350

Wind Acquisition Finance S.A., 12%, 2015 (n)

     908,000      971,560
         
      $ 13,043,318
         

 

11


MFS Charter Income Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/10 - continued

 

Issuer

   Shares/Par    Value ($)

Bonds – continued

     

Telephone Services – 0.3%

     

Frontier Communications Corp., 8.125%, 2018

   $ 1,625,000    $ 1,616,875
         

Tobacco – 0.6%

     

Alliance One International, Inc., 10%, 2016 (n)

   $ 1,035,000    $ 1,076,400

Alliance One International, Inc., 10%, 2016 (n)

     225,000      234,000

Reynolds American, Inc., 6.75%, 2017

     1,790,000      1,931,670
         
      $ 3,242,070
         

Transportation – 0.0%

     

Peru Enhanced Pass-Through Trust, 0%, 2018 (n)

   $ 224,180    $ 175,421
         

Transportation - Services – 0.9%

     

Commercial Barge Line Co., 12.5%, 2017

   $ 1,085,000    $ 1,133,825

Erac USA Finance Co., 6.375%, 2017 (n)

     1,000,000      1,094,758

Hertz Corp., 8.875%, 2014

     2,140,000      2,172,100

Westinghouse Air Brake Technologies Corp., 6.875%, 2013

     370,000      373,700
         
      $ 4,774,383
         

U.S. Government Agencies and Equivalents – 0.7%

     

Freddie Mac, 5.5%, 2017

   $ 3,060,000    $ 3,482,920
         

U.S. Treasury Obligations – 3.6%

     

U.S. Treasury Bonds, 7.5%, 2016

   $ 3,450,000    $ 4,411,418

U.S. Treasury Bonds, 8%, 2021

     5,000,000      6,935,155

U.S. Treasury Bonds, 6.25%, 2023 (f)

     1,800,000      2,198,250

U.S. Treasury Bonds, 5.375%, 2031

     286,200      323,719

U.S. Treasury Bonds, 4.5%, 2036

     95,000      95,520

U.S. Treasury Bonds, 4.75%, 2037

     2,986,200      3,116,846

U.S. Treasury Notes, 6.375%, 2027

     1,410,000      1,764,702
         
      $ 18,845,610
         

Utilities - Electric Power – 5.1%

     

AES Corp., 8%, 2017

   $ 2,840,000    $ 2,822,250

Allegheny Energy Supply Co. LLC, 8.25%, 2012 (n)

     370,000      411,824

Bruce Mansfield Unit, 6.85%, 2034

     1,547,152      1,593,816

Calpine Corp., 8%, 2016 (n)

     1,800,000      1,822,500

CenterPoint Energy, Inc., 6.5%, 2018

     400,000      426,170

Colbun S.A., 6%, 2020 (n)

     748,000      753,317

Dynegy Holdings, Inc., 7.5%, 2015

     1,200,000      1,044,000

Dynegy Holdings, Inc., 7.75%, 2019

     1,335,000      1,047,975

Edison Mission Energy, 7%, 2017

     2,010,000      1,472,325

EDP Finance B.V., 6%, 2018 (n)

     798,000      836,677

Energy Future Holdings, 10%, 2020 (n)

     535,000      545,700

Exelon Generation Co. LLC, 6.25%, 2039

     850,000      869,672

ISA Capital do Brasil S.A., 7.875%, 2012

     922,000      962,752

Mirant North America LLC, 7.375%, 2013

     1,940,000      1,932,725

NiSource Finance Corp., 7.875%, 2010

     687,000      717,198

NorthWestern Corp., 5.875%, 2014

     861,000      883,873

NRG Energy, Inc., 7.375%, 2016

     3,580,000      3,530,775

RRI Energy, Inc., 7.875%, 2017

     971,000      907,885

System Energy Resources, Inc., 5.129%, 2014 (z)

     1,091,992      1,107,869

Texas Competitive Electric Holdings LLC, 10.25%, 2015

     4,665,000      3,486,621
         
      $ 27,175,924
         

Total Bonds

      $ 589,674,967
         

Convertible Bonds – 0.1%

     

Automotive – 0.1%

     

Accuride Corp., 7.5%, 2020

   $ 198,545    $ 345,681

 

12


MFS Charter Income Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/10 - continued

 

Issuer

   Shares/Par    Value ($)

Floating Rate Loans (g)(r) – 1.3%

     

Aerospace – 0.0%

     

Hawker Beechcraft Acquisition Co. LLC, Term Loan, 10.5%, 2014

   $ 209,115    $ 190,948
         

Automotive – 0.7%

     

Accuride Corp., Term Loan, 9.25%, 2012

   $ 90,346    $ 90,158

Allison Transmission, Inc., Term Loan B, 2.99%, 2014

     243,633      223,115

Federal-Mogul Corp., Term Loan B, 2.16%, 2014

     328,562      287,389

Ford Motor Co., Term Loan B, 3.25%, 2013

     2,674,089      2,498,046

Goodyear Tire & Rubber Co., Second Lien Term Loan, 2.34%, 2014

     480,501      445,865
         
      $ 3,544,573
         

Broadcasting – 0.0%

     

Gray Television, Inc., Term Loan B, 3.75%, 2014

   $ 89,591    $ 80,542

Local TV Finance LLC, Term Loan B, 2.26%, 2013

     48,513      41,964
         
      $ 122,506
         

Building – 0.0%

     

Building Materials Holding Corp., Term Loan, 3%, 2014

   $ 103,479    $ 100,762
         

Chemicals – 0.3%

     

LyondellBasell, DIP Term Loan, 9.16%, 2010 (q)

   $ 249,041    $ 259,190

LyondellBasell, DIP Term Loan B-3, 5.79%, 2010

     503,731      525,895

LyondellBasell, Dutch Tranche Revolving Credit Loan, 3.72%, 2014

     15,855      11,094

LyondellBasell, Dutch Tranche Term Loan, 3.72%, 2013

     35,888      25,111

LyondellBasell, German Tranche Term Loan B-1, 3.97%, 2014

     45,517      31,849

LyondellBasell, German Tranche Term Loan B-2, 3.97%, 2014

     45,517      31,849

LyondellBasell, German Tranche Term Loan B-3, 3.97%, 2014

     45,517      31,849

LyondellBasell, U.S. Tranche Revolving Credit Loan, 3.72%, 2014

     59,455      41,602

LyondellBasell, U.S. Tranche Term Loan, 3.72%, 2014

     113,278      79,263

LyondellBasell, U.S. Tranche Term Loan B-1, 7%, 2014

     197,512      138,203

LyondellBasell, U.S. Tranche Term Loan B-2, 7%, 2014

     197,512      138,203

LyondellBasell, U.S. Tranche Term Loan B-3, 7%, 2014

     197,512      138,203
         
      $ 1,452,311
         

Specialty Stores – 0.1%

     

Michaels Stores, Inc., Term Loan B1, 2.51%, 2013

   $ 273,610    $ 246,420

Michaels Stores, Inc., Term Loan B2, 4.76%, 2016

     360,775      343,688
         
      $ 590,108
         

Utilities - Electric Power – 0.2%

     

Texas Competitive Electric Holdings Co. LLC, Term Loan B-3, 3.72%, 2014

   $ 1,009,853    $ 807,882
         

Total Floating Rate Loans

      $ 6,809,090
         

Common Stocks – 0.2%

     

Automotive – 0.0%

     

Accuride Corp. (a)

     138,981    $ 180,675
         

Broadcasting – 0.1%

     

Dex One Corp. (a)

     16,641    $ 495,902

Supermedia, Inc. (a)

     448      18,816
         
      $ 514,718
         

Construction – 0.1%

     

Nortek, Inc. (a)

     10,190    $ 377,030
         

Printing & Publishing – 0.0%

     

American Media, Inc. (a)

     1,991    $ 5,713

Golden Books Family Entertainment, Inc. (a)

     3,683      0
         
      $ 5,713
         

Total Common Stocks

      $ 1,078,136
         

 

13


MFS Charter Income Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/10 - continued

 

Issuer

   Shares/Par    Value ($)  

Preferred Stocks – 0.1%

     

Financial Institutions – 0.1%

     

GMAC, Inc., 7% (z)

   425    $ 300,807   
           

Money Market Funds (v) – 4.1%

     

MFS Institutional Money Market Portfolio, 0.14%, at Net Asset Value

   21,943,638    $ 21,943,638   
           

Total Investments

      $ 620,152,319   
           

Other Assets, Less Liabilities – (17.2)%

        (91,138,815
           

Net Assets 100.0%

      $ 529,013,504   
           

 

(a) Non-income producing security.
(d) Non-income producing security - in default.
(f) All or a portion of the security has been segregated as collateral for open futures contracts.
(g) The rate shown represents a weighted average coupon rate on settled positions at period end, unless otherwise indicated.
(i) Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the notional principal and does not reflect the cost of the security.
(n) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $129,778,462, representing 24.5% of net assets.
(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.
(v) Underlying fund that is available only to investment companies managed by MFS. The rate quoted is the annualized seven-day yield of the fund at period end.
(z) Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities:

 

Restricted Securities

 

Acquisition

Date

  Cost   Current
Market Value
 

American Media Operations, Inc., 9%, 2013

  1/29/09 - 10/15/09   $ 7,521   $ 6,636   

American Media Operations, Inc., 14%, 2013

  1/29/09 - 10/15/09     69,931     68,989   

Anthracite Ltd., “A” CDO, FRN, 0.588%, 2019

  1/15/10     1,084,869     1,080,356   

Bayview Financial Revolving Mortgage Loan Trust, FRN, 1.83%, 2040

  3/01/06     922,592     334,440   

Bosphorus Financial Services Ltd., FRN, 2.05%, 2012

  3/08/05     750,000     718,196   

Building Materials Holding Corp., 7%, 2020

  2/02/10     635,000     635,000   

Cablevision Systems Corp., 8.625%, 2017

  2/26/10     286,000     283,250   

Credit Acceptance Corp., 9.125%, 2017

  1/25/10     487,575     497,500   

Crosstex Energy, Inc., 8.875%, 2018

  2/03/10     406,354     421,225   

DLJ Commercial Mortgage Corp., 6.04%, 2031

  7/23/04     1,969,453     2,062,860   

Freescale Semiconductor, Inc., 10.125%, 2018

  2/09/10     385,000     388,850   

GMAC, Inc., 7% (Preferred Stock)

  12/26/08     327,250     300,807   

LBG Capital No.1 PLC, 7.875%, 2020

  1/08/10 - 1/12/10     801,626     738,700   

Libbey Glass, Inc., 10%, 2015

  1/28/10 - 2/24/10     366,583     372,600   

Local TV Finance LLC, 10%, 2015

  11/09/07 - 11/30/09     875,356     544,084   

McClatchy Co., 11.5%, 2017

  2/04/10 - 2/08/10     632,117     624,000   

McJunkin Red Man Holding Corp., 9.5%, 2016

  1/21/10 - 2/24/10     642,738     636,588   

Oshkosh Corp., 8.25%, 2017

  2/26/10     125,000     125,000   

Oshkosh Corp., 8.5%, 2020

  2/26/10     140,000     140,000   

PNC Mortgage Acceptance Corp., FRN, 7.1%, 2032

  3/25/08     2,510,000     2,492,747   

Ply Gem Industries, Inc., 13.125%, 2014

  1/06/10     651,263     673,350   

Spirit Master Funding LLC, 5.05%, 2023

  7/15/05     1,560,152     1,318,389   

System Energy Resources, Inc., 5.129%, 2014

  4/16/04     1,091,992     1,107,869   

VTB Capital S.A., 6.465%, 2015

  2/25/10     1,169,000     1,164,324   

ZFS Finance USA Trust II, 6.45% to 2016, FRN to 2065

  2/04/10     1,100,750     1,071,000   
           

Total Restricted Securities

      $ 17,806,760   

% of Net Assets

        3.4

 

14


MFS Charter Income Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/28/10 - continued

 

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

 

CDO

   Collateralized Debt Obligation

CLN

   Credit-Linked Note

DIP

   Debtor-in-Possession

FRN

   Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end.

PLC

   Public Limited Company

REIT

   Real Estate Investment Trust

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

 

AUD

   Australian Dollar

BRL

   Brazilian Real

CAD

   Canadian Dollar

CLP

   Chilean Peso

CNY

   Chinese Yuan Renminbi

EUR

   Euro

GBP

   British Pound

INR

   Indian Rupee

JPY

   Japanese Yen

KRW

   Korean Won

MXN

   Mexican Peso

PHP

   Philippine Peso

PLN

   Polish Zloty

SEK

   Swedish Krona

TRY

   Turkish Lira

TWD

   Taiwan Dollar

ZAR

   South African Rand

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

 

15


MFS Charter Income Trust

Supplemental Information (Unaudited) 2/28/10

(1) Investment Valuations

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

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

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

 

16


MFS Charter Income Trust

Supplemental Information (Unaudited) 2/28/10 - continued

 

The following is a summary of the levels used as of February 28, 2010 in valuing the fund’s assets or liabilities:

 

Investments at Value

  Level 1     Level 2   Level 3   Total  

Equity Securities

  $ 514,718      $ 858,512   $ 5,713   $ 1,378,943   

U.S. Treasury Bonds & U.S. Government Agency & Equivalents

    —          22,328,530     —       22,328,530   

Non-U.S. Sovereign Debt

    —          117,334,927     —       117,334,927   

Corporate Bonds

    —          313,126,282     —       313,126,282   

Residential Mortgage-Backed Securities

    —          33,443,648     —       33,443,648   

Commercial Mortgage-Backed Securities

    —          34,287,270     —       34,287,270   

Asset-Backed Securities (including CDOs)

    —          1,514,796     —       1,514,796   

Foreign Bonds

    —          66,368,979     —       66,368,979   

Floating Rate Loans

    —          6,809,090     —       6,809,090   

Other Fixed Income Securities

    —          1,616,216     —       1,616,216   

Mutual Funds

    21,943,638        —       —       21,943,638   
                           

Total Investments

  $ 22,458,356      $ 597,688,250   $ 5,713   $ 620,152,319   
                           

Other Financial Instruments

                   

Futures

  $ (293,379   $ —     $ —     $ (293,379

Forward Currency Contracts

    —          2,191,375     —       2,191,375   

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

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value. The table presents the activity of Level 3 securities held at the beginning and the end of the period.

 

     Equity
Securities

Balance as of 11/30/09

   $ 2,667

Accrued discounts/premiums

     —  

Realized gain (loss)

     —  

Change in unrealized appreciation (depreciation)

     3,046

Net purchases (sales)

     —  

Transfers in and/or out of Level 3

     —  
      

Balance as of 2/28/10

   $ 5,713
      

The net change in unrealized appreciation (depreciation) from investments still held as Level 3 at February 28, 2010 is $3,046.

In January 2010, Accounting Standards Update (ASU) No. 2010-06, Improving Disclosures about Fair Value Measurements (the “Update”) was issued, and is effective for interim and annual reporting periods beginning after December 15, 2009. This Update provides for expanded disclosures about fair value measurements. Management has evaluated the application of the Update to the fund, and believes the impact is limited to expanded disclosures resulting from the adoption of this Update in the fund’s financial statements.

(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

   $ 600,284,012   
        

Gross unrealized appreciation

   $ 34,462,800   

Gross unrealized depreciation

     (14,594,493
        

Net unrealized appreciation (depreciation)

   $ 19,868,307   
        

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

 

17


MFS Charter Income Trust

Supplemental Information (Unaudited) 2/28/10 - continued

 

(3) Derivative Contracts at 2/28/10

Forward Foreign Currency Exchange Contracts at 2/28/10

 

Type

  

Currency

 

Counterparty

  Contracts to
Deliver/Receive
 

Settlement
Date Range

  In Exchange For   Contracts at
Value
  Net Unrealized
Appreciation
(Depreciation)
 

Asset Derivatives

         
BUY    BRL   Deutsche Bank AG   4,879,663   3/02/10 - 4/05/10   $ 2,633,494   $ 2,691,329   $ 57,835   
BUY    BRL   JPMorgan Chase Bank   4,956,000   3/02/10 - 4/05/10     2,663,920     2,733,432     69,512   
BUY    CLP   HSBC Bank   334,040,000   4/01/10     631,456     636,880     5,424   
BUY    EUR   HSBC Bank   1,882,000   3/15/10     2,538,385     2,562,577     24,192   
SELL    EUR   Barclays Bank PLC   662   3/15/10     922     901     21   
SELL    EUR   Deutsche Bank AG   867,367   3/04/10     1,304,000     1,181,047     122,953   
SELL    EUR   Goldman Sachs International   1,672,190   3/15/10     2,366,199     2,276,894     89,305   
SELL    EUR   HSBC Bank   722,713   3/15/10     1,029,433     984,063     45,370   
SELL    EUR   JPMorgan Chase Bank   239,558   3/15/10     349,972     326,188     23,784   
SELL    EUR   JPMorgan Chase Bank   346,257   3/15/10     487,992     471,471     16,521   
SELL    EUR   UBS AG   29,818,837   3/15/10     43,565,321     40,602,051     2,963,270   
SELL    GBP   Barclays Bank PLC   1,529,988   4/12/10     2,442,550     2,332,264     110,286   
SELL    GBP   Deutsche Bank AG   1,529,988   4/12/10     2,443,468     2,332,264     111,204   
BUY    INR   Deutsche Bank AG   55,054,935   3/09/10     1,175,132     1,193,508     18,376   
BUY    MXN   Merrill Lynch International Bank   16,606,000   3/05/10     1,280,616     1,299,111     18,495   
BUY    PHP   JPMorgan Chase Bank   121,414,000   3/03/10 - 3/16/10     2,611,222     2,630,995     19,773   
BUY    SEK   Barclays Bank PLC   9,451,000   3/15/10     1,300,547     1,325,593     25,046   
                    
               $ 3,721,367   
                    

Liability Derivatives

         
BUY    AUD   UBS AG   2,935,000   4/12/10   $ 2,631,785   $ 2,619,181   $ (12,604
SELL    BRL   Deutsche Bank AG   2,439,832   3/02/10     1,333,241     1,350,099     (16,858
SELL    BRL   JPMorgan Chase Bank   2,478,000   3/02/10     1,349,673     1,371,220     (21,547
SELL    CAD   UBS AG   47,422   3/10/10     44,931     45,069     (138
BUY    CLP   HSBC Bank   700,165,000   3/02/10     1,342,598     1,334,283     (8,315
SELL    CLP   HSBC Bank   700,165,000   3/02/10     1,309,616     1,334,283     (24,667
BUY    CNY   Deutsche Bank AG   5,910,000   5/17/10     879,203     865,178     (14,025
BUY    CNY   HSBC Bank   11,785,000   5/17/10     1,752,938     1,725,232     (27,706
BUY    EUR   Barclays Bank PLC   1,793,222   3/15/10     2,488,650     2,441,695     (46,955
BUY    EUR   Goldman Sachs International   398,758   3/15/10     554,385     542,958     (11,427
BUY    EUR   UBS AG   1,462,300   3/15/10     2,069,403     1,991,103     (78,300
SELL    EUR   UBS AG   955,655   3/15/10     1,301,000     1,301,243     (243
BUY    GBP   Barclays Bank PLC   1,020,000   4/12/10     1,574,669     1,554,855     (19,814
SELL    GBP   HSBC Bank   938,000   4/12/10     1,425,338     1,429,857     (4,519
SELL    JPY   Barclays Bank PLC   253,072,561   3/15/10     2,792,140     2,848,626     (56,486
SELL    JPY   Goldman Sachs International   117,298,160   4/12/10     1,301,000     1,320,496     (19,496
SELL    JPY   JPMorgan Chase Bank   1,973,842,296   4/12/10     21,273,520     22,220,730     (947,210
SELL    JPY   Merrill Lynch International Bank   18,450,185   4/12/10     198,701     207,705     (9,004
BUY    KRW   Deutsche Bank AG   1,520,505,000   3/05/10     1,321,030     1,310,825     (10,205
BUY    KRW   Merrill Lynch International Bank   1,514,364,000   3/05/10     1,313,412     1,305,531     (7,881
BUY    PLN   Deutsche Bank AG   3,577,263   3/04/10     1,304,000     1,234,939     (69,061
SELL    PLN   HSBC Bank   3,578,500   3/22/10     1,193,303     1,233,790     (40,487
SELL    SEK   UBS AG   2,984,458   4/12/10     412,486     418,620     (6,134
BUY    TRY   HSBC Bank   1,951,000   3/12/10     1,331,105     1,259,175     (71,930
BUY    TWD   JPMorgan Chase Bank   41,892,000   3/11/10     1,311,995     1,307,056     (4,939
BUY    ZAR   Barclays Bank PLC   10,863   3/23/10     1,442     1,401     (41
                    
               $ (1,529,992
                    

 

18


MFS Charter Income Trust

Supplemental Information (Unaudited) 2/28/10 - continued

 

Futures Contracts Outstanding at 2/28/10

 

Description

   Currency    Contracts    Value    Expiration
Date
   Unrealized
Appreciation
(Depreciation)
 

Asset Derivatives

              

Interest Rate Futures

              

U.S. Treasury Bond 30 yr (Long)

   USD    28    $ 3,295,250    Jun-10    $ 40,371   
                    

Liability Derivatives

              

Interest Rate Futures

              

U.S. Treasury Note 10 yr (Short)

   USD    404    $ 47,463,688    Jun-10    $ (333,750
                    

At February 28, 2010, the fund had sufficient cash and/or other liquid securities to cover any commitments under these derivative contracts.

(4) Transactions in Underlying Funds-Affiliated Issuers

An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the fund assumes the following to be affiliated issuers:

 

Underlying Funds

   Beginning
Shares/Par
Amount
   Acquisitions
Shares/Par
Amount
   Dispositions
Shares/Par
Amount
    Ending
Shares/Par
Amount

MFS Institutional Money Market Portfolio

     25,715,187      45,739,765      (49,511,314     21,943,638

Underlying Funds

   Realized
Gain
(Loss)
   Capital Gain
Distributions
   Dividend
Income
    Ending
Value

MFS Institutional Money Market Portfolio

   $ —      $ —      $ 7,273      $ 21,943,638

(5) Issuer Country Weightings

Issuer country weighting percentages of portfolio holdings based on net assets, as of February 28, 2010, are as follows:

 

United States

   65.5

Japan

   4.7

Italy

   2.4

Canada

   2.2

United Kingdom

   2.1

Brazil

   2.0

Germany

   1.9

Indonesia

   1.7

Mexico

   1.6

Other Countries

   15.9

The issuer country weighting percentages include both accrued interest amounts and the equivalent exposure from any derivative holdings, if applicable.

 

19


ITEM 2. CONTROLS AND PROCEDURES.

 

(a) Based upon their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as conducted within 90 days of the filing date of this Form N-Q, the registrant’s principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

 

(b) There were no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 3. EXHIBITS.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto.


Notice

A copy of the Amended and Restated Declaration of Trust, as amended, of the Registrant is on file with the Secretary of State of The Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and the obligations of or arising out of this instrument are not binding upon any of the Trustees or shareholders individually, but are binding only upon the assets and property of the respective constituent series of the Registrant.


SIGNATURES

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

Registrant: MFS CHARTER INCOME TRUST

 

By (Signature and Title)*    MARIA F. DWYER
  Maria F. Dwyer, President

Date: April 16, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*    MARIA F. DWYER
  Maria F. Dwyer, President (Principal Executive Officer)

Date: April 16, 2010

 

By (Signature and Title)*    JOHN M. CORCORAN
 

John M. Corcoran, Treasurer

(Principal Financial Officer

and Accounting Officer)

Date: April 16, 2010

 

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