N-CSR 1 f23825d1.htm MFS SERIES TRUST VIII NCSR MFS SERIES TRUST VIII NCSR

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05262

MFS SERIES TRUST VIII

(Exact name of registrant as specified in charter)

111 Huntington Avenue, Boston, Massachusetts 02199 (Address of principal executive offices) (Zip code)

Christopher R. Bohane

Massachusetts Financial Services Company

111 Huntington Avenue

Boston, Massachusetts 02199

(Name and address of agents for service)

Registrant's telephone number, including area code: (617) 954-5000

Date of fiscal year end: October 31

Date of reporting period: October 31, 2022

ITEM 1. REPORTS TO STOCKHOLDERS.

Item 1(a):


Annual Report
October 31, 2022
MFS®  Income Fund
MFO-ANN


MFS® Income Fund
CONTENTS
The report is prepared for the general information of shareholders. It is authorized for distribution to prospective investors only when preceded or accompanied by a current prospectus.
NOT FDIC INSURED  •  MAY LOSE VALUE  •  NO BANK GUARANTEE


LETTER FROM THE CHAIR AND CEO
Dear Shareholders:
Global markets have recently been buffeted by a series of crosscurrents, including rising inflation, tighter financial conditions, and evolving geopolitical tensions. Consequently, at a time when global growth faces multiple headwinds, central banks have been presented with the challenge of reining in rising prices without tipping economies into recession. The U.S. Federal Reserve has made it clear that rates must move higher and tighter policy must be sustained to restore price stability and that this will likely bring some pain to households and businesses. Against that backdrop, richly valued, interest rate–sensitive growth equities have been hit particularly hard by rising interest rates. Volatility in fixed income and currency markets has picked up, with fiscal policy missteps in the United Kingdom leading to a crisis of market confidence that ultimately resulted in the ouster of Prime Minister Liz Truss. That episode could forewarn other governments to avoid policy overreach.
There are, however, encouraging signs for the markets. China has modestly relaxed its zero-COVID policy, and cases globally, while numerous, appear to be causing fewer serious illnesses. Meanwhile, unemployment is low and global supply chain bottlenecks are easing, though lingering coronavirus restrictions in China and disruptions stemming from Russia’s invasion of Ukraine could hamper these advances. Additionally, easier Chinese monetary and regulatory policies and the record pace of corporate stock buybacks are supportive elements, albeit in an otherwise turbulent investment environment.
It is important to have a deep understanding of company fundamentals during times of market transition, and we have built our unique global research platform to do just that.
At MFS®, we put our clients’ assets to work responsibly by carefully navigating increasingly complex global capital markets. Our investment team is guided by a commitment to long-term fundamental investing. Our global investment platform — combining collective expertise, long-term discipline, and thoughtful risk management — seeks to uncover what we believe are the best, most durable investment ideas in markets around the world, enabling us to potentially create value for investors.
Respectfully,
Michael W. Roberge
Chair and Chief Executive Officer
MFS Investment Management
December 15, 2022
The opinions expressed in this letter are subject to change and may not be relied upon for investment advice. No forecasts can be guaranteed.
1

Portfolio Composition
Portfolio structure at value (v)
Portfolio structure reflecting equivalent exposure of derivative positions (i)
 
Fixed income sectors (i)
U.S. Treasury Securities 54.5%
Investment Grade Corporates 26.8%
Collateralized Debt Obligations 13.2%
High Yield Corporates 7.8%
Emerging Markets Bonds 4.9%
Commercial Mortgage-Backed Securities 3.7%
Municipal Bonds 1.2%
Asset-Backed Securities 0.3%
Residential Mortgage-Backed Securities 0.1%
Mortgage-Backed Securities (o) 0.0%
Composition including fixed income credit quality (a)(i)
AAA 1.9%
AA 3.9%
A 12.0%
BBB 27.7%
BB 8.3%
B 3.1%
CCC 0.8%
D (o) 0.0%
U.S. Government 38.8%
Federal Agencies (o) 0.0%
Not Rated 16.0%
Non-Fixed Income (o) 0.0%
Cash & Cash Equivalents 3.2%
Other (q) (15.7)%
 
2

Portfolio Composition - continued
Portfolio facts
Average Duration (d) 5.8
Average Effective Maturity (m) 7.7 yrs.
(a) For all securities other than those specifically described below, ratings are assigned to underlying securities utilizing ratings from Moody’s, Fitch, and Standard & Poor’s rating agencies and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). Securities rated BBB or higher are considered investment grade. All ratings are subject to change. U.S. Government includes securities issued by the U.S. Department of the Treasury. Federal Agencies includes rated and unrated U.S. Agency fixed-income securities, U.S. Agency mortgage-backed securities, and collateralized mortgage obligations of U.S. Agency mortgage-backed securities.
Not Rated includes fixed income securities and fixed income derivatives that have not been rated by any rating agency. Non-Fixed Income includes equity securities (including convertible bonds and equity derivatives), ETFs, and/or commodity-linked derivatives. The fund may or may not have held all of these instruments on this date. The fund is not rated by these agencies.
(d) Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value due to the interest rate move. The Average Duration calculation reflects the impact of the equivalent exposure of derivative positions, if any.
(i) For purposes of this presentation, the components include the value of securities, and reflect the impact of the equivalent exposure of derivative positions, if any. These amounts may be negative from time to time. Equivalent exposure is a calculated amount that translates the derivative position into a reasonable approximation of the amount of the underlying asset that the portfolio would have to hold at a given point in time to have the same price sensitivity that results from the portfolio’s ownership of the derivative contract. When dealing with derivatives, equivalent exposure is a more representative measure of the potential impact of a position on portfolio performance than value. The bond component will include any accrued interest amounts.
(m) In determining each instrument’s effective maturity for purposes of calculating the fund’s dollar-weighted average effective maturity, MFS uses the instrument’s stated maturity or, if applicable, an earlier date on which MFS believes it is probable that a maturity-shortening device (such as a put, pre-refunding or prepayment) will cause the instrument to be repaid. Such an earlier date can be substantially shorter than the instrument’s stated maturity.
(o) Less than 0.1%.
(p) For purposes of the presentation of Portfolio structure at value, Other includes equivalent exposure from currency derivatives and may be negative.
(q) For purposes of this presentation, Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions and may be negative.
(v) For purposes of this presentation, market value of fixed income and/or equity derivatives, if any, is included in Cash & Cash Equivalents.
Where the fund holds convertible bonds, they are treated as part of the equity portion of the portfolio.
3

Portfolio Composition - continued
Cash & Cash Equivalents includes any cash, investments in money market funds, short-term securities, and other assets less liabilities. Please see the Statement of Assets and Liabilities for additional information related to the fund’s cash position and other assets and liabilities.
Percentages are based on net assets as of October 31, 2022.
The portfolio is actively managed and current holdings may be different.
4

Management Review
Summary of Results
For the twelve months ended October 31, 2022, Class A shares of the MFS Income Fund (fund) provided a total return of -16.28%, at net asset value. This compares with a return of -15.68% for the fund’s benchmark, the Bloomberg U.S. Aggregate Bond Index.
Market Environment
During the reporting period, markets continued to grapple with the strongest global inflationary pressures in decades along with signs of slowing economic growth. Intermittent coronavirus flareups, particularly in China, where home-grown vaccines have proved less effective than elsewhere, kept supply chains stretched for a considerable period. At the same time, the reopening of the economy in the parts of the world where the virus has been better contained has led to a shift in consumption patterns in favor of services, straining already tight labor markets in most developed economies, while reducing demand for manufactured goods, primarily from Asia. As a result of Russia’s invasion of Ukraine, geopolitical considerations, such as sanctions and trade bans, have resulted in additional supply chain tumult and volatile global energy prices. Taken together, these factors have contributed to market volatility.
The ripple effects from the Russian invasion further complicated the mission central banks must undertake to rein in surging inflation. Energy shocks have historically resulted in global growth slowdowns, if not pullbacks, so policymakers will find themselves in the difficult position of trying to restrain inflation without tipping economies into recession. Despite the challenging macroeconomic and geopolitical environment, policymakers remained focused on corralling inflation, although investors appeared to have expected varying degrees of action from the central banks. The Fed was expected to be the most hawkish developed market central bank and the European Central Bank less so, given the growth-depleting effects on Europe's economy stemming from the invasion, while the Bank of Japan remained on the monetary sidelines, leading to a dramatic weakening of the yen.
Against an environment of still-tight labor markets, tighter global financial conditions and volatile materials prices, investor anxiety appeared to have increased over the potential that corporate profit margins may be past peak for this cycle. That said, tentative signs that supply chain bottlenecks (particularly semiconductors) may be easing, low levels of unemployment across developed markets and somewhat easier prices for non-energy raw materials were supportive factors for the macroeconomic backdrop.
Factors Affecting Performance
Relative to the Bloomberg U.S. Aggregate Bond Index, bond selection within both the industrials sector, particularly in“BBB”-rated(r) bonds, and in the financial institutions sector, detracted from the fund’s relative performance. The fund’s asset allocation decisions, most notably, its exposure to collateralized mortgage obligation (CMO) securities, for which the benchmark has no exposure, also held back relative returns. An overweight allocation to the industrials sector, and underweight allocation to the treasury sector, further weakened the fund’s relative performance.
5

Management Review - continued
Conversely, the fund's shorter duration(d) stance supported relative performance as interest rates rose over the reporting period. Additionally, the fund’s significant underweight allocation to agency fixed-rate mortgage-backed securities (MBS) strengthened relative results. The fund’s allocation to below investment grade corporate industrial bonds, for which the benchmark has no exposure, further supported relative returns.
Respectfully,
Portfolio Manager(s)
Neeraj Arora, Philipp Burgener, David Cole, Alexander Mackey, Joshua Marston, and Michael Skatrud
(d) Duration is a measure of how much a bond’s price is likely to fluctuate with general changes in interest rates, e.g., if rates rise 1.00%, a bond with a 5-year duration is likely to lose about 5.00% of its value.
(r) Securities rated “BBB”, “Baa”, or higher are considered investment grade; securities rated “BB”, “Ba”, or below are considered non-investment grade. Ratings are assigned to underlying securities utilizing ratings from Moody's, Fitch, and Standard & Poor's and applying the following hierarchy: If all three agencies provide a rating, the middle rating (after dropping the highest and lowest ratings) is assigned; if two of the three agencies rate a security, the lower of the two is assigned. If none of the 3 rating agencies above assign a rating, but the security is rated by DBRS Morningstar, then the DBRS Morningstar rating is assigned. If none of the 4 rating agencies listed above rate the security, but the security is rated by the Kroll Bond Rating Agency (KBRA), then the KBRA rating is assigned. Ratings are shown in the S&P and Fitch scale (e.g., AAA). For securities that are not rated by any of the rating agencies, the security is considered Not Rated.
The views expressed in this report are those of the portfolio manager(s) only through the end of the period of the report as stated on the cover and do not necessarily reflect the views of MFS or any other person in the MFS organization. These views are subject to change at any time based on market or other conditions, and MFS disclaims any responsibility to update such views. These views may not be relied upon as investment advice or an indication of trading intent on behalf of any MFS portfolio. References to specific securities are not recommendations of such securities, and may not be representative of any MFS portfolio’s current or future investments.
6

Performance Summary THROUGH 10/31/22
The following chart illustrates a representative class of the fund’s historical performance in comparison to its benchmark(s). Performance results include the deduction of the maximum applicable sales charge and reflect the percentage change in net asset value, including reinvestment of dividends and capital gains distributions. The performance of other share classes will be greater than or less than that of the class depicted below. Benchmarks are unmanaged and may not be invested in directly. Benchmark returns do not reflect sales charges, commissions or expenses. (See Notes to Performance Summary.)
Performance data shown represents past performance and is no guarantee of future results. Investment return and principal value fluctuate so your shares, when sold, may be worth more or less than the original cost; current performance may be lower or higher than quoted. The performance shown does not reflect the deduction of taxes, if any, that a shareholder would pay on fund distributions or the redemption of fund shares.
Growth of a Hypothetical $10,000 Investment
7

Performance Summary  - continued
Total Returns through 10/31/22
Average annual without sales charge
Share Class Class Inception Date 1-yr 5-yr 10-yr Life (t)
A 10/29/87 (16.28)% (0.10)% 1.51% N/A
B 9/07/93 (16.90)% (0.85)% 0.78% N/A
C 9/01/94 (16.81)% (0.83)% 0.79% N/A
I 1/08/97 (15.97)% 0.15% 1.76% N/A
R6 3/02/18 (15.87)% N/A N/A 0.56%
Comparative benchmark(s)
         
Bloomberg U.S. Aggregate Bond Index (f) (15.68)% (0.54)% 0.74% N/A
Average annual with sales charge
         
A
With Initial Sales Charge (4.25%)
(19.83)% (0.96)% 1.07% N/A
B
With CDSC (Declining over six years from 4% to 0%) (v)
(20.13)% (1.20)% 0.78% N/A
C
With CDSC (1% for 12 months) (v)
(17.62)% (0.83)% 0.79% N/A
CDSC – Contingent Deferred Sales Charge.
Class I and R6 shares do not have sales charge.
(f) Source: FactSet Research Systems Inc.
(t) For the period from the class inception date through the stated period end (for those share classes with less than 10 years of performance history). No comparative benchmark performance information is provided for “life” periods. (See Notes to Performance Summary.)
(v) Assuming redemption at the end of the applicable period.
Benchmark Definition(s)
Bloomberg U.S. Aggregate Bond Index(a) – a market capitalization-weighted index that measures the performance of the U.S. investment-grade, fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities with at least one year to final maturity.
It is not possible to invest directly in an index.
(a) Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg's licensors own all proprietary rights in the Bloomberg Indices. Bloomberg neither approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.
Notes to Performance Summary
Performance information prior to December 2, 2019 reflects time periods when the fund had (i) a policy permitting the fund to invest up to 100% of its assets in below investment grade quality debt instruments and (ii) a policy permitting the fund to invest
8

Performance Summary  - continued
in equity securities as a principal investment strategy. The fund’s investment policies and strategies changed effective December 2, 2019.
Average annual total return represents the average annual change in value for each share class for the periods presented. Life returns are presented where the share class has less than 10 years of performance history and represent the average annual total return from the class inception date to the stated period end date. As the fund's share classes may have different inception dates, the life returns may represent different time periods and may not be comparable. As a result, no comparative benchmark performance information is provided for life periods.
Performance results reflect any applicable expense subsidies and waivers in effect during the periods shown. Without such subsidies and waivers the fund's performance results would be less favorable. Please see the prospectus and financial statements for complete details.
Performance results do not include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles and may differ from amounts reported in the financial highlights.
From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower.
9

Expense Table
Fund expenses borne by the shareholders during the period,
May 1, 2022 through October 31, 2022
As a shareholder of the fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on certain purchase or redemption payments, and (2) ongoing costs, including management fees; distribution and service (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period May 1, 2022 through October 31, 2022.
Actual Expenses
The first line for each share class in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the following table provides information about hypothetical account values and hypothetical expenses based on the fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
10

Expense Table - continued
Share
Class
  Annualized
Expense
Ratio
Beginning
Account Value
5/01/22
Ending
Account Value
10/31/22
Expenses
Paid During
Period (p)
5/01/22-10/31/22
A Actual 0.74% $1,000.00 $922.38 $3.59
Hypothetical (h) 0.74% $1,000.00 $1,021.48 $3.77
B Actual 1.49% $1,000.00 $919.76 $7.21
Hypothetical (h) 1.49% $1,000.00 $1,017.69 $7.58
C Actual 1.49% $1,000.00 $919.62 $7.21
Hypothetical (h) 1.49% $1,000.00 $1,017.69 $7.58
I Actual 0.49% $1,000.00 $923.41 $2.38
Hypothetical (h) 0.49% $1,000.00 $1,022.74 $2.50
R6 Actual 0.39% $1,000.00 $925.47 $1.89
Hypothetical (h) 0.39% $1,000.00 $1,023.24 $1.99
(h) 5% class return per year before expenses.
(p) “Expenses Paid During Period” are equal to each class’s annualized expense ratio, as shown above, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).  Expenses paid do not include any applicable sales charges (loads). If these transaction costs had been included, your costs would have been higher.
11

Portfolio of Investments
10/31/22
The Portfolio of Investments is a complete list of all securities owned by your fund. It is categorized by broad-based asset classes.
Issuer     Shares/Par Value ($)
Bonds – 96.0%
Aerospace & Defense – 0.9%
Boeing Co., 2.196%, 2/04/2026    $ 2,018,000 $1,783,296
Boeing Co., 2.95%, 2/01/2030      453,000 362,889
Boeing Co., 5.705%, 5/01/2040      1,359,000 1,178,972
Boeing Co., 5.805%, 5/01/2050      349,000 300,160
Moog, Inc., 4.25%, 12/15/2027 (n)     2,965,000 2,653,260
TransDigm, Inc., 6.375%, 6/15/2026      900,000 868,500
TransDigm, Inc., 4.625%, 1/15/2029      3,000,000 2,554,590
        $9,701,667
Asset-Backed & Securitized – 17.2%
ACREC 2021-FL1 Ltd., “D”, FLR, 6.093% (LIBOR - 1mo. + 2.65%), 10/16/2036 (n)   $ 2,591,000 $2,379,235
ACRES 2021-FL2 Issuer Ltd., “C”, FLR, 6.062% (LIBOR - 1mo. + 2.65%), 1/15/2037 (n)     3,162,000 2,969,502
Allegro CLO Ltd., 2014-1RA, “C”, FLR, 7.278% (LIBOR - 3mo. + 3%), 10/21/2028 (n)     1,250,000 1,100,248
Arbor Realty Trust, Inc., CLO, 2019-FL2, “D”, FLR, 5.94% (SOFR - 30 day + 2.565%), 9/15/2034 (n)     4,000,000 3,709,552
Arbor Realty Trust, Inc., CLO, 2020-FL1, “D”, FLR, 5.94% (LIBOR - 1mo. + 2.45%), 2/15/2035 (n)     1,768,000 1,641,282
Arbor Realty Trust, Inc., CLO, 2021-FL1, “C”, FLR, 5.412% (LIBOR - 1mo. + 2%), 12/15/2035 (n)     4,000,000 3,750,260
Arbor Realty Trust, Inc., CLO, 2021-FL1, “D”, FLR, 6.362% (LIBOR - 1mo. + 2.95%), 12/15/2035 (n)     701,000 646,598
Arbor Realty Trust, Inc., CLO, 2021-FL2, “B”, FLR, 5.012% (LIBOR - 1mo. + 1.6%), 5/15/2036 (n)     2,596,000 2,420,978
Arbor Realty Trust, Inc., CLO, 2021-FL2, “C”, FLR, 5.362% (LIBOR - 1mo. + 1.95%), 5/15/2036 (n)     375,000 344,807
Arbor Realty Trust, Inc., CLO, 2021-FL3, “C”, FLR, 5.262% (LIBOR - 1mo. + 1.85%), 8/15/2034 (n)     3,500,000 3,246,429
Arbor Realty Trust, Inc., CLO, 2021-FL3, “D”, FLR, 5.612% (LIBOR - 1mo. + 2.2%), 8/15/2034 (n)     539,000 499,314
Arbor Realty Trust, Inc., CLO, 2021-FL4, “D”, FLR, 6.312% (LIBOR - 1mo. + 2.9%), 11/15/2036 (n)     5,743,500 5,299,388
Arbor Realty Trust, Inc., CLO, 2022-FL1, “D”, FLR, 5.791% (SOFR - 30 day + 3%), 1/15/2037 (n)     2,800,000 2,638,378
Arbor Realty Trust, Inc., CLO, 2022-FL1, “E”, FLR, 6.541% (SOFR - 30 day + 3.75%), 1/15/2037 (n)     4,500,000 4,275,761
Arbor Realty Trust, Inc., CLO, 2022-FL2, FLR, 7.726% (SOFR - 1mo. + 4.35%), 5/15/2037 (n)     8,038,000 7,725,846
12

Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
Asset-Backed & Securitized – continued
AREIT 2019-CRE3 Trust, “D”, FLR, 6.14% (LIBOR - 1mo. + 2.65%), 9/14/2036 (n)   $ 1,729,000 $1,602,812
AREIT 2022-CRE6 Trust, “E”, FLR, 6.294% (SOFR - 30 day + 3.4%), 1/16/2037 (n)     4,500,000 4,299,183
AREIT 2022-CRE7 LLC, “B”, FLR, 6.659% (SOFR - 1mo. + 3.244%), 6/17/2039 (n)     6,000,000 5,700,846
Babson CLO Ltd., 2013-IIA, “BR”, FLR, 5.493% (LIBOR - 3mo. + 1.25%), 1/20/2028 (n)     1,750,000 1,695,854
Balboa Bay Loan Funding Ltd., 2020-1A, “CR”, FLR, 6.342% (LIBOR - 3mo. + 2.1%), 1/20/2032 (n)     2,083,333 1,875,329
Bayview Financial Revolving Mortgage Loan Trust, FLR, 5.232% (LIBOR - 1mo. + 1.6%), 12/28/2040 (n)     77,842 93,437
BBCMS Mortgage Trust, 2019-C5, “A4”, 3.063%, 11/15/2052      500,000 424,295
BDS 2021-FL9 Ltd., “C”, FLR, 5.343% (LIBOR - 1mo. + 1.9%), 11/16/2038 (n)     4,254,000 3,976,490
BSPDF 2021-FL1 Issuer Ltd., “B”, FLR, 5.212% (LIBOR - 1mo. + 1.8%), 10/15/2036 (n)     1,231,000 1,151,917
BSPRT 2019-FL5 Issuer Ltd., “C”, FLR, 5.412% (LIBOR - 1mo. + 2%), 5/15/2029 (n)     1,505,000 1,465,707
BSPRT 2021-FL6 Issuer Ltd., “C”, FLR, 5.462% (LIBOR - 1mo. + 2.05%), 3/15/2036 (n)     1,300,000 1,197,734
BSPRT 2021-FL7 Issuer Ltd., “D”, FLR, 6.162% (LIBOR - 1mo. + 2.75%), 12/15/2038 (n)     3,418,500 3,143,994
BSPRT 2022-FL8 Issuer Ltd., “D”, FLR, 5.591% (SOFR - 30 day + 2.8%), 2/15/2037 (n)     4,000,000 3,786,340
Business Jet Securities LLC, 2020-1A, “A”, 2.981%, 11/15/2035 (n)     336,882 307,292
Business Jet Securities LLC, 2021-1A, “C”, 5.067%, 4/15/2036 (n)     317,024 275,817
BXMT 2021-FL4 Ltd., “B”, FLR, 4.962% (LIBOR - 1mo. + 1.55%), 5/15/2038 (n)     2,123,000 1,985,233
Capital Automotive, 2020-1A, “B1”, REIT, 4.17%, 2/15/2050 (n)     764,773 698,546
CHCP 2021-FL1 Ltd., “B”, FLR, 5.18% (LIBOR - 1mo. + 1.65%), 2/15/2038 (n)     3,500,000 3,347,810
CHCP 2021-FL1 Ltd., “C”, FLR, 5.63% (LIBOR - 1mo. + 2.1%), 2/15/2038 (n)     549,500 521,786
CLNC 2019-FL1 Ltd., “C”, FLR, 5.982% (LIBOR - 1mo. + 2.4%), 8/20/2035 (n)     1,735,000 1,646,945
Columbia Cent CLO 28 Ltd., “B-R”, 6.682%, 11/07/2030 (n)     2,083,333 1,911,531
Commercial Equipment Finance 2021-A, LLC, “A”, 2.05%, 2/16/2027 (n)     1,478,106 1,420,185
Commercial Mortgage Trust, 2015-PC1, “A5”, 3.902%, 7/10/2050      1,805,893 1,720,402
Crest Ltd., CDO, 7%, (0.001% cash or 7% PIK) 1/28/2040 (a)(p)     722,925 7
13

Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
Asset-Backed & Securitized – continued
Cutwater 2015-1A Ltd., “BR”, FLR, 5.879% (LIBOR - 3mo. + 1.8%), 1/15/2029 (n)   $ 1,500,000 $1,455,597
Dryden Senior Loan Fund, 2017-49A, “CR”, CLO, FLR, 6.244% (LIBOR - 3mo. + 2.05%), 7/18/2030 (n)     2,000,000 1,861,694
DT Auto Owner Trust, 2020-1A, “C”, 2.29%, 11/17/2025 (n)     438,841 436,217
Exeter Automobile Receivables Trust, 2020-1A, 2.49%, 1/15/2025 (n)     39,835 39,793
HGI CRE CLO Ltd., 2021-FL3, “D”, FLR, 6.541% (SOFR - 30 day + 3.75%), 4/20/2037 (n)     4,500,000 4,235,697
Invitation Homes 2018-SFR1 Trust, “C”, FLR, 4.662% (LIBOR - 1mo. + 1.25%), 3/17/2037 (n)     869,875 854,993
KREF 2021-FL2 Ltd., “D”, FLR, 5.612% (LIBOR - 1mo. + 2.2%), 2/15/2039 (n)     1,837,000 1,663,391
LCCM 2021-FL2 Trust, “C”, FLR, 5.562% (LIBOR - 1mo. + 2.15%), 12/13/2038 (n)     3,212,500 3,067,526
LoanCore 2018-CRE1 Ltd., “C”, FLR, 5.962% (LIBOR - 1mo. + 2.55%), 5/15/2028 (n)     1,740,000 1,728,460
LoanCore 2018-CRE1 Ltd., “C”, FLR, 5.362% (LIBOR - 1mo. + 1.95%), 4/15/2034 (n)     1,355,850 1,323,859
LoanCore 2019-CRE2 Ltd., “D”, FLR, 5.862% (LIBOR - 1mo. + 2.45%), 5/15/2036 (n)     1,291,000 1,269,547
LoanCore 2021-CRE5 Ltd., “C”, FLR, 5.762% (LIBOR - 1mo. + 2.35%), 7/15/2036 (n)     3,000,000 2,779,983
Madison Park Funding Ltd., 2017- 23A, “CR”, FLR, 6.358% (LIBOR - 3mo. + 2%), 7/27/2031 (n)     3,000,000 2,801,415
Magnetite CLO Ltd., 2015-16A, “DR”, FLR, 6.344% (LIBOR - 3mo. + 2.15%), 1/18/2028 (n)     500,000 461,898
MF1 2020-FL4 Ltd., “B”, FLR, 6.24% (LIBOR - 1mo. + 2.75%), 11/15/2035 (n)     2,250,000 2,158,291
MF1 2021-FL5 Ltd., “C”, FLR, 5.19% (LIBOR - 1mo. + 1.7%), 7/15/2036 (n)     2,250,000 2,087,260
MF1 2021-FL5 Ltd., “D”, FLR, 5.99% (LIBOR - 1mo. + 2.5%), 7/15/2036 (n)     3,000,000 2,791,023
MF1 2021-FL6 Ltd., “C”, FLR, 5.293% (LIBOR - 1mo. + 1.85%), 7/16/2036 (n)     3,357,603 3,109,023
MF1 2022-FL10 Ltd., “B”, FLR, 7.202% (SOFR - 1mo. + 3.735%), 9/17/2037 (n)     7,500,000 7,404,503
MF1 2022-FL8 Ltd., “E”, FLR, 6.044% (SOFR - 30 day + 3.15%), 2/19/2037 (n)     4,500,000 4,106,777
MF1 2022-FL9 Ltd., “B”, FLR, 6.617% (SOFR - 1mo. + 3.15%), 6/19/2037 (n)     7,000,000 6,883,345
Neuberger Berman CLO Ltd., 2013-15A, “CR2”, FLR, 5.929% (LIBOR - 3mo. + 1.85%), 10/15/2029 (n)     2,286,610 2,115,752
14

Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
Asset-Backed & Securitized – continued
Neuberger Berman CLO Ltd., 2016-21A, “CR2”, 6.293%, 4/20/2034 (n)   $ 1,750,000 $1,601,947
Oaktree CLO 2019-1A Ltd., “CR”, FLR, 6.675% (LIBOR - 3mo. + 2.35%), 4/22/2030 (n)     3,236,356 2,940,958
Palmer Square Loan Funding 2020-1A Ltd., “B”, FLR, 4.884% (LIBOR - 3mo. + 1.9%), 2/20/2028 (n)     879,778 849,427
Palmer Square Loan Funding 2022-5A Ltd., “A1”, FLR, 4.084% (SOFR - 3mo. + 1.56%), 1/15/2031 (n)     7,500,000 7,366,462
Parallel 2015-1A Ltd., “DR”, FLR, 6.793% (LIBOR - 3mo. + 2.55%), 7/20/2027 (n)     1,750,000 1,714,137
PFP III 2021-7 Ltd., “C”, FLR, 5.062% (LIBOR - 1mo. + 1.65%), 4/14/2038 (n)     431,479 398,548
PFP III 2021-8 Ltd., “D”, FLR, 5.562% (LIBOR - 1mo. + 2.15%), 8/09/2037 (n)     4,274,000 3,964,537
Race Point CLO Ltd., 2013-8A, “CR2”, FLR, 5.034% (LIBOR - 3mo. + 2.05%), 2/20/2030 (n)     1,500,000 1,400,204
ReadyCap Commercial Mortgage Trust, 2021-FL7, “D”, FLR, 6.536% (LIBOR - 1mo. + 2.95%), 11/25/2036 (z)     1,770,000 1,660,649
Securitized Term Auto Receivable Trust, 2019-CRTA, “C”, 2.849%, 3/25/2026 (n)     139,608 138,608
Shackleton 2015-8A CLO Ltd., “CR”, FLR, 5.893% (LIBOR - 3mo. + 1.65%), 10/20/2027 (n)     1,000,000 954,688
Starwood Commercial Mortgage, 2021-FL2, “D”, 6.243%, 4/18/2038 (n)     3,000,000 2,769,552
Starwood Commercial Mortgage, 2022-FL3, “D”, FLR, 5.541% (SOFR - 30 day + 2.75%), 11/15/2038 (n)     2,750,000 2,553,390
TPG Real Estate Finance, 2021-FL4, “B”, FLR, 5.262% (LIBOR - 1mo. + 1.85%), 3/15/2038 (n)     2,700,000 2,533,993
UBS Commercial Mortgage Trust, 2017-C7, “A4”, 3.679%, 12/15/2050      1,052,000 956,526
Voya CLO 2012-4A Ltd., “C1R3”, FLR, 7.379% (LIBOR - 3mo. + 3.3%), 10/15/2030 (n)     1,737,638 1,518,254
Wells Fargo Commercial Mortgage Trust, 2016-C34, “A4”, 3.096%, 6/15/2049      1,740,000 1,593,502
Wells Fargo Commercial Mortgage Trust, 2017-C42, “A5”, 3.589%, 12/15/2050      3,490,000 3,136,409
Wells Fargo Commercial Mortgage Trust, 2017-RB1, “A5”, 3.635%, 3/15/2050      1,500,000 1,376,574
Wells Fargo Commercial Mortgage Trust, 2018-C44, 4.212%, 5/15/2051      1,500,000 1,386,018
        $182,347,497
15

Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
Automotive – 0.7%
Hyundai Capital America, 2.1%, 9/15/2028 (n)   $ 2,000,000 $1,541,684
Hyundai Capital America, 6.375%, 4/08/2030 (n)     2,250,000 2,192,563
Stellantis N.V., 2.691%, 9/15/2031 (n)     5,147,000 3,666,256
        $7,400,503
Broadcasting – 0.9%
Discovery, Inc., 4.65%, 5/15/2050    $ 857,000 $562,051
Magallanes, Inc., 5.141%, 3/15/2052 (n)     7,295,000 5,093,503
Prosus N.V., 3.257%, 1/19/2027 (n)     1,975,000 1,626,198
WMG Acquisition Corp., 3.875%, 7/15/2030 (n)     2,700,000 2,307,380
        $9,589,132
Brokerage & Asset Managers – 1.1%
Charles Schwab Corp., 5% to 6/01/2027, FLR (CMT - 5yr. + 3.256%) to 6/01/2170    $ 3,272,000 $2,903,900
Intercontinental Exchange, Inc., 2.1%, 6/15/2030      592,000 473,979
LPL Holdings, Inc., 4.625%, 11/15/2027 (n)     5,000,000 4,604,855
LPL Holdings, Inc., 4%, 3/15/2029 (n)     1,300,000 1,134,627
Morgan Stanley Domestic Holdings, Inc., 4.5%, 6/20/2028      1,958,000 1,827,894
Raymond James Financial, 4.65%, 4/01/2030      1,069,000 994,120
        $11,939,375
Building – 0.5%
ABC Supply Co., Inc., 4%, 1/15/2028 (n)   $ 2,700,000 $2,382,453
Standard Industries, Inc., 4.375%, 7/15/2030 (n)     1,700,000 1,374,535
Standard Industries, Inc., 3.375%, 1/15/2031 (n)     2,600,000 1,945,320
        $5,702,308
Business Services – 0.8%
Global Payments, Inc., 2.9%, 5/15/2030    $ 1,080,000 $859,437
Global Payments, Inc., 2.9%, 11/15/2031      6,000,000 4,578,926
Iron Mountain, Inc., 4.5%, 2/15/2031 (n)     2,700,000 2,186,986
RELX Capital, Inc., 3%, 5/22/2030      674,000 561,970
        $8,187,319
Cable TV – 1.6%
CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 8/15/2030 (n)   $ 3,300,000 $2,678,148
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 3.9%, 6/01/2052      1,824,000 1,129,497
Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 5.25%, 4/01/2053      5,342,000 4,016,642
CSC Holdings LLC, 4.125%, 12/01/2030 (n)     3,600,000 2,832,372
Sirius XM Radio, Inc., 5.5%, 7/01/2029 (n)     4,800,000 4,427,040
16

Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
Cable TV – continued
Time Warner Cable, Inc., 4.5%, 9/15/2042    $ 2,031,000 $1,386,820
        $16,470,519
Chemicals – 0.3%
Axalta Coating Systems Ltd., 3.375%, 2/15/2029 (n)   $ 3,600,000 $2,958,750
Computer Software – 0.4%
Clarivate Science Holdings Corp., 4.875%, 7/01/2029 (n)   $ 3,000,000 $2,501,250
Dell International LLC/EMC Corp., 5.3%, 10/01/2029      1,388,000 1,299,424
        $3,800,674
Computer Software - Systems – 0.2%
SS&C Technologies Holdings, Inc., 5.5%, 9/30/2027 (n)   $ 1,965,000 $1,827,040
Conglomerates – 1.1%
BWX Technologies, Inc., 4.125%, 6/30/2028 (n)   $ 2,500,000 $2,187,500
Gates Global LLC, 6.25%, 1/15/2026 (n)     3,000,000 2,880,000
Westinghouse Air Brake Technologies Corp., 4.95%, 9/15/2028      7,534,000 7,008,006
        $12,075,506
Construction – 0.2%
Mattamy Group Corp., 5.25%, 12/15/2027 (n)   $ 1,900,000 $1,623,455
Taylor Morrison Communities, Inc., 5.75%, 1/15/2028 (n)     333,000 305,219
        $1,928,674
Consumer Products – 0.2%
GSK Consumer Healthcare Capital US LLC, 3.625%, 3/24/2032    $ 2,275,000 $1,916,640
Consumer Services – 0.7%
Expedia Group, Inc., 3.25%, 2/15/2030    $ 3,950,000 $3,183,373
Match Group Holdings II LLC, 5%, 12/15/2027 (n)     1,800,000 1,606,077
Match Group Holdings II LLC, 3.625%, 10/01/2031 (n)     1,700,000 1,295,842
Meituan, 3.05%, 10/28/2030 (n)     1,024,000 598,156
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2026 (n)     307,000 243,659
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2029 (n)     889,000 577,929
Toll Road Investors Partnership II LP, Capital Appreciation, NPFG, 0%, 2/15/2031 (n)     307,000 173,343
        $7,678,379
Containers – 0.1%
Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 2/01/2026    $ 1,500,000 $1,435,665
17

Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
Electronics – 0.7%
Broadcom, Inc., 4.3%, 11/15/2032    $ 5,334,000 $4,485,414
Broadcom, Inc., 3.187%, 11/15/2036 (n)     2,240,000 1,527,823
NXP B.V./NXP Funding LLC/NXP USA, Inc., 3.4%, 5/01/2030      1,305,000 1,083,159
        $7,096,396
Emerging Market Quasi-Sovereign – 0.9%
Greenko Wind Projects (Mauritius) Ltd., 5.5%, 4/06/2025 (n)   $ 1,977,000 $1,683,112
Huarong Finance Co. Ltd. (People’s Republic of China), 3.375%, 2/24/2030      4,145,000 2,507,725
Ipoteka Bank (Republic of Uzbekistan), 5.5%, 11/19/2025      2,618,000 2,244,150
Petroleos Mexicanos, 5.95%, 1/28/2031      1,810,000 1,304,430
PT Bank Negara Indonesia (Persero) Tbk, 3.75%, 3/30/2026      2,499,000 2,055,740
        $9,795,157
Emerging Market Sovereign – 0.9%
Dominican Republic, 4.875%, 9/23/2032 (n)   $ 2,295,000 $1,768,310
Hashemite Kingdom of Jordan, 7.75%, 1/15/2028 (n)     2,153,000 2,079,152
Republic of Angola, 8%, 11/26/2029      1,436,000 1,165,601
Republic of Colombia, 5.2%, 5/15/2049      2,865,000 1,737,031
Republic of Cote d'Ivoire, 4.875%, 1/30/2032 (n)   EUR 1,864,000 1,290,243
Republic of South Africa, 5.875%, 4/20/2032    $ 2,282,000 1,949,558
        $9,989,895
Energy - Independent – 1.0%
Energean PLC, 6.5%, 4/30/2027 (n)   $ 1,781,000 $1,573,478
EQT Corp., 5%, 1/15/2029      5,317,000 4,939,284
Leviathan Bond Ltd., 6.75%, 6/30/2030 (n)     1,834,000 1,634,131
Medco Laurel Tree Pte. Ltd., 6.95%, 11/12/2028 (n)     3,625,000 2,780,471
        $10,927,364
Energy - Integrated – 0.4%
Cenovus Energy, Inc., 3.75%, 2/15/2052    $ 2,700,000 $1,798,915
Eni S.p.A., 4%, 9/12/2023 (n)     1,342,000 1,317,507
Eni S.p.A., 4.25%, 5/09/2029 (n)     1,685,000 1,510,454
        $4,626,876
Financial Institutions – 1.6%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 6.5%, 7/15/2025    $ 1,568,000 $1,543,517
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 3.65%, 7/21/2027      2,698,000 2,346,131
Air Lease Corp., 2.875%, 1/15/2032      5,633,000 4,207,372
Avolon Holdings Funding Ltd., 3.25%, 2/15/2027 (n)     2,342,000 1,913,342
Avolon Holdings Funding Ltd., 2.75%, 2/21/2028 (n)     3,617,000 2,764,894
18

Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
Financial Institutions – continued
Global Aircraft Leasing Co. Ltd., 6.5% (6.5% cash or 7.25% PIK), 9/15/2024 (n)   $ 2,624,681 $2,082,561
Shriram Transport Finance Co. Ltd., 4.4%, 3/13/2024 (n)     1,692,000 1,575,201
Sunac China Holdings Ltd., 7.5%, 2/01/2024 (a)     1,057,000 60,861
        $16,493,879
Food & Beverages – 1.0%
Anheuser-Busch InBev Worldwide, Inc., 4.439%, 10/06/2048    $ 874,509 $708,269
Bacardi Ltd., 5.15%, 5/15/2038 (n)     955,000 800,414
Central America Bottling Co., 5.25%, 4/27/2029 (n)     2,293,000 2,016,997
JBS USA Lux S.A./JBS USA Finance, Inc., 5.5%, 1/15/2030 (n)     1,800,000 1,640,805
JBS USA Lux S.A./JBS USA Food Co./JBS USA Finance, Inc., 5.75%, 4/01/2033 (n)     4,179,000 3,765,864
PT Indofood CBP Sukses Makmur Tbk, 3.541%, 4/27/2032      2,536,000 1,842,443
        $10,774,792
Gaming & Lodging – 0.8%
GLP Capital LP/GLP Financing II, Inc., 4%, 1/15/2030    $ 2,062,000 $1,700,470
GLP Capital LP/GLP Financing II, Inc., 4%, 1/15/2031      400,000 320,743
Marriott International, Inc., 4.625%, 6/15/2030      561,000 503,247
Marriott International, Inc., 2.85%, 4/15/2031      654,000 508,853
Marriott International, Inc., 2.75%, 10/15/2033      4,537,000 3,293,987
Wyndham Hotels & Resorts, Inc., 4.375%, 8/15/2028 (n)     2,700,000 2,376,864
        $8,704,164
Insurance – 0.5%
Corebridge Financial, Inc., 4.35%, 4/05/2042 (n)   $ 473,000 $354,570
Corebridge Financial, Inc., 4.4%, 4/05/2052 (n)     1,412,000 1,031,069
Corebridge Financial, Inc., 6.875% to 12/15/2027, FLR (CMT - 5yr. + 3.846%) to 12/15/2052 (n)     4,850,000 4,371,362
        $5,757,001
Insurance - Property & Casualty – 1.9%
Alliant Holdings Intermediate LLC, 6.75%, 10/15/2027 (n)   $ 2,250,000 $2,053,125
Allied World Assurance Co. Holdings Ltd., 4.35%, 10/29/2025      2,170,000 2,056,618
Aon Corp., 4.5%, 12/15/2028      2,909,000 2,715,879
Aon Corp./Aon Global Holdings PLC, 2.6%, 12/02/2031      2,471,000 1,910,774
Brown & Brown, Inc., 4.95%, 3/17/2052      4,125,000 3,134,591
Fairfax Financial Holdings Ltd., 4.85%, 4/17/2028      2,201,000 2,024,196
Fairfax Financial Holdings Ltd., 3.375%, 3/03/2031      452,000 354,217
Fairfax Financial Holdings Ltd., 5.625%, 8/16/2032 (n)     4,000,000 3,622,120
Hub International Ltd., 5.625%, 12/01/2029 (n)     2,350,000 2,015,102
        $19,886,622
19

Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
Machinery & Tools – 0.6%
Ashtead Capital, Inc., 5.5%, 8/11/2032 (n)   $ 5,000,000 $4,519,552
CNH Industrial Capital LLC, 4.2%, 1/15/2024      1,076,000 1,057,576
CNH Industrial Capital LLC, 3.85%, 11/15/2027      1,025,000 927,929
        $6,505,057
Major Banks – 6.5%
Bank of America Corp., 4.271% to 7/23/2028, FLR (LIBOR - 3mo. + 1.31%) to  7/23/2029    $ 579,000 $525,490
Bank of America Corp., 2.572% to 10/20/2031, FLR (SOFR + 1.21%) to 10/20/2032      8,268,000 6,237,720
Bank of America Corp., 5.015% to 7/22/2032, FLR (SOFR - 1 day + 2.16%) to 7/22/2033      3,000,000 2,751,186
Bank of America Corp., 3.846% to 3/08/2032, FLR (CMT - 1yr. + 2%) to 3/08/2037      4,785,000 3,833,710
Bank of New York Mellon Corp., 4.7% to 9/20/2025, FLR (CMT - 5yr. + 4.358%) to 9/20/2070      1,800,000 1,723,500
Barclays PLC, 4.375%, 1/12/2026      1,325,000 1,230,075
Capital One Financial Corp., 3.273% to 3/01/2029, FLR (SOFR - 1 day + 1.79%) to 3/01/2030      5,000,000 4,103,446
Deutsche Bank AG, 2.311% to 11/16/2026, FLR (SOFR - 1 day + 1.219%) to 11/16/2027      2,217,000 1,769,616
Goldman Sachs Group, Inc., 2.65% to 10/21/2031, FLR (SOFR - 1 day + 1.264%) to 10/21/2032      6,695,000 5,068,617
Goldman Sachs Group, Inc., 3.102% to 2/24/2032, FLR (SOFR - 1 day + 1.41%) to 2/24/2033      4,410,000 3,453,870
HSBC Holdings PLC, 4.7% to 9/09/2031, FLR (CMT - 1yr. + 3.25%) to 9/09/2169      1,150,000 800,044
HSBC Holdings PLC, 4% to 9/09/2026, FLR (CMT - 1yr. + 3.222%) to 9/09/2170      536,000 418,278
JPMorgan Chase & Co., 4.851% to 7/25/2027, FLR (SOFR - 1 day + 1.99%) to 7/25/2028      4,000,000 3,802,679
JPMorgan Chase & Co., 2.956% to 5/13/2030, FLR (SOFR - 1 day + 2.515%) to 5/13/2031      726,000 571,168
JPMorgan Chase & Co., 2.963% to 1/25/2032, FLR (SOFR - 1 day + 1.26%) to 1/25/2033      4,000,000 3,124,956
Morgan Stanley, 4.679% to 7/17/2025, FLR (SOFR - 1 day + 1.669%) to 7/17/2026      6,000,000 5,816,864
Morgan Stanley, 2.511% to 10/20/2031, FLR (SOFR - 1 day + 1.2%) to 10/20/2032      7,539,000 5,676,030
UBS Group AG, 4.703% to 8/05/2026, FLR (CMT - 1yr. + 2.05%) to 8/05/2027 (n)     3,165,000 2,941,378
UBS Group AG, 4.375% to 2/10/2031, FLR (CMT - 1yr. + 3.313%) to 8/10/2069 (n)     2,746,000 1,907,509
20

Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
Major Banks – continued
UBS Group Funding (Switzerland) AG, 4.253%, 3/23/2028 (n)   $ 1,618,000 $1,438,992
Wells Fargo & Co., 2.572% to 2/11/2030, FLR (LIBOR - 3mo. +1%) to 2/11/2031      5,515,000 4,394,927
Wells Fargo & Co., 3.35% to 3/02/2032, FLR (SOFR - 1 day + 1.5%) to 3/02/2033      4,571,000 3,684,897
Wells Fargo & Co., 3.9% to 3/15/2026, FLR (CMT - 1yr. + 3.453%) to 3/15/2071      4,785,000 4,062,465
        $69,337,417
Medical & Health Technology & Services – 1.2%
DaVita, Inc., 4.625%, 6/01/2030 (n)   $ 2,600,000 $2,027,025
HCA Healthcare, Inc., 4.625%, 3/15/2052 (n)     7,619,000 5,611,634
ProMedica Toledo Hospital, “B”, 5.325%, 11/15/2028      1,437,000 949,541
ProMedica Toledo Hospital, “B”, AGM, 5.75%, 11/15/2038      568,000 506,475
Syneos Health, Inc., 3.625%, 1/15/2029 (n)     3,300,000 2,733,014
Tower Health, 4.451%, 2/01/2050      1,730,000 890,950
        $12,718,639
Metals & Mining – 1.0%
Anglo American Capital PLC, 2.25%, 3/17/2028 (n)   $ 992,000 $804,273
Anglo American Capital PLC, 2.875%, 3/17/2031 (n)     1,161,000 892,385
Anglo American Capital PLC, 4.75%, 3/16/2052 (n)     5,361,000 3,989,169
Glencore Funding LLC, 2.85%, 4/27/2031 (n)     2,907,000 2,250,326
Novelis Corp., 3.25%, 11/15/2026 (n)     250,000 218,809
Novelis Corp., 3.875%, 8/15/2031 (n)     2,600,000 2,014,246
        $10,169,208
Midstream – 1.7%
Cheniere Corpus Christi Holdings LLC, 3.7%, 11/15/2029    $ 2,125,000 $1,850,756
Cheniere Corpus Christi Holdings LLC, 2.742%, 12/31/2039      963,000 714,576
Enbridge, Inc., 3.125%, 11/15/2029      1,344,000 1,144,335
Enbridge, Inc., 2.5%, 8/01/2033      1,923,000 1,437,956
MPLX LP, 4.5%, 4/15/2038      2,200,000 1,753,853
MPLX LP, 4.95%, 3/14/2052      3,699,000 2,859,546
Plains All American Pipeline LP, 3.8%, 9/15/2030      4,057,000 3,382,437
Sabine Pass Liquefaction LLC, 4.5%, 5/15/2030      3,285,000 2,996,209
Targa Resources Corp., 4.95%, 4/15/2052      1,864,000 1,398,629
        $17,538,297
Mortgage-Backed – 0.0%  
Fannie Mae, 6.5%, 5/01/2031    $ 8,457 $8,720
Fannie Mae, 3%, 2/25/2033 (i)     231,911 21,678
Fannie Mae, 5.5%, 9/01/2034 - 11/01/2036      26,393 27,033
Fannie Mae, 6%, 11/01/2034      84,202 86,327
21

Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
Mortgage-Backed – continued  
Fannie Mae, UMBS, 2.5%, 3/01/2050    $ 51,562 $42,725
Freddie Mac, 0.901%, 4/25/2024 (i)     65,582 695
Ginnie Mae, 3%, 9/20/2047      93,488 82,431
        $269,609
Municipals – 1.2%
Bridgeview, IL, Stadium and Redevelopment Projects, Taxable, AAC, 5.14%, 12/01/2036    $ 1,205,000 $1,038,348
Escambia County, FL, Health Facilities Authority Rev., Taxable (Baptist Health Care Corp.), “B”, AGM, 3.607%, 8/15/2040      1,730,000 1,256,024
New Jersey Economic Development Authority State Pension Funding Rev., Capital Appreciation, Taxable, “B”, AGM, 0%, 2/15/2023      2,500,000 2,465,740
New Jersey Economic Development Authority State Pension Funding Rev., Taxable, “A”, NPFG, 7.425%, 2/15/2029      1,155,000 1,228,060
Oklahoma Development Finance Authority, Health System Rev., Taxable (OU Medicine Project), “C”, 5.45%, 8/15/2028      3,750,000 3,224,779
Port Beaumont, TX, Industrial Development Authority Facility Rev., Taxable (Jefferson Gulf Coast Energy Project), “B”, 4.1%, 1/01/2028 (n)     2,755,000 2,204,625
Puerto Rico Electric Power Authority Rev., “A”, 5%, 7/01/2042 (a)(d)     30,000 22,500
Puerto Rico Electric Power Authority Rev., “ZZ”, 5%, 7/01/2018 (a)(d)     455,000 340,113
Puerto Rico Sales Tax Financing Corp., Restructured Sales Tax Rev., Capital Appreciation, Taxable, “2019A-1”, 4.55%, 7/01/2040      1,326,000 1,033,226
        $12,813,415
Natural Gas - Distribution – 0.4%
Boston Gas Co., 3.757%, 3/16/2032 (n)   $ 5,000,000 $4,176,689
Other Banks & Diversified Financials – 1.5%
Bank Hapoalim B.M., 3.255% to 1/21/2027, FLR (CMT - 5yr. + 2.155%) to 1/21/2032 (n)   $ 1,431,000 $1,169,843
Macquarie Group Ltd., 4.442% to 6/21/2032, FLR (SOFR - 1 day + 2.405%) to 6/21/2033 (n)     8,358,000 6,945,919
Northern Trust Corp., 6.125%, 11/02/2032      6,550,000 6,555,339
Uzbek Industrial and Construction Bank, 5.75%, 12/02/2024      1,424,000 1,263,800
        $15,934,901
Pharmaceuticals – 0.5%
Jazz Securities DAC, 4.375%, 1/15/2029 (n)   $ 3,000,000 $2,662,500
Organon Finance 1 LLC, 4.125%, 4/30/2028 (n)     3,000,000 2,642,460
        $5,304,960
22

Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
Printing & Publishing – 0.1%
Cimpress N.V., 7%, 6/15/2026 (n)   $ 1,000,000 $597,500
Real Estate - Office – 0.1%
Boston Properties Ltd. LP, REIT, 2.55%, 4/01/2032    $ 1,504,000 $1,081,501
Retailers – 0.2%
Alimentation Couche-Tard, Inc., 2.95%, 1/25/2030 (n)   $ 2,180,000 $1,779,746
Specialty Stores – 0.4%
Genuine Parts Co., 2.75%, 2/01/2032    $ 5,031,000 $3,899,687
Telecommunications - Wireless – 1.3%
American Tower Corp., REIT, 3.55%, 7/15/2027    $ 1,237,000 $1,105,419
Cellnex Finance Co. S.A., 3.875%, 7/07/2041 (n)     1,582,000 968,342
Crown Castle, Inc., REIT, 4.15%, 7/01/2050      2,318,000 1,653,125
CT Trust, 5.125%, 2/03/2032 (n)     765,000 611,104
Rogers Communications, Inc., 4.35%, 5/01/2049      7,277,000 5,342,894
SBA Communications Corp., 3.875%, 2/15/2027      1,480,000 1,332,000
SBA Communications Corp., 3.125%, 2/01/2029      1,400,000 1,131,522
T-Mobile USA, Inc., 4.375%, 4/15/2040      1,899,000 1,546,412
        $13,690,818
Tobacco – 1.5%
B.A.T. Capital Corp., 3.215%, 9/06/2026    $ 1,869,000 $1,661,010
B.A.T. Capital Corp., 4.742%, 3/16/2032      6,749,000 5,658,993
Imperial Brands Finance PLC, 6.125%, 7/27/2027 (n)     8,569,000 8,269,931
        $15,589,934
Transportation – 0.2%
Hidrovias International Finance S.à r.l., 4.95%, 2/08/2031    $ 2,106,000 $1,606,830
Transportation - Services – 0.3%
Delhi International Airport Ltd., 6.45%, 6/04/2029 (n)   $ 2,461,000 $2,018,020
Element Fleet Management Corp., 1.6%, 4/06/2024 (n)     823,000 774,280
JSW Infrastructure Ltd., 4.95%, 1/21/2029 (n)     1,249,000 929,023
        $3,721,323
U.S. Treasury Obligations – 38.6%
U.S. Treasury Bonds, 1.375%, 11/15/2040    $ 35,900,000 $22,178,066
U.S. Treasury Bonds, 1.75%, 8/15/2041      11,300,000 7,375,016
U.S. Treasury Bonds, 2.375%, 2/15/2042      64,200,000 46,876,031
U.S. Treasury Bonds, 2.5%, 2/15/2045 (f)     7,646,000 5,502,432
U.S. Treasury Bonds, 2.375%, 11/15/2049      9,526,900 6,658,038
U.S. Treasury Bonds, 1.625%, 11/15/2050      8,400,000 4,803,750
U.S. Treasury Bonds, 2.25%, 2/15/2052      29,200,000 19,582,250
U.S. Treasury Notes, 0.375%, 10/31/2023      12,350,000 11,833,809
23

Portfolio of Investments – continued
Issuer     Shares/Par Value ($)
Bonds – continued
U.S. Treasury Obligations – continued
U.S. Treasury Notes, 2.25%, 3/31/2024    $ 99,500,000 $96,231,270
U.S. Treasury Notes, 4.25%, 9/30/2024      51,800,000 51,536,953
U.S. Treasury Notes, 0.25%, 9/30/2025      15,700,000 13,937,430
U.S. Treasury Notes, 0.875%, 6/30/2026      88,000,000 77,608,437
U.S. Treasury Notes, 2.5%, 3/31/2027      47,900,000 44,442,219
        $408,565,701
Utilities - Electric Power – 1.9%
Adani Transmission Ltd., 4.25%, 5/21/2036 (n)   $ 2,469,250 $1,801,728
AES Gener S.A., 6.35% to 4/07/2025, FLR (CMT - 5yr. + 4.917%) to 4/07/2030, FLR (CMT - 5yr. + 5.167%) to 4/07/2045, FLR (CMT - 5yr. + 5.917%) to 10/07/2079 (n)     760,000 617,464
AES Panama Generation Holdings SRL, 4.375%, 5/31/2030 (n)     1,200,000 944,419
American Electric Power Co., Inc., 5.95%, 11/01/2032 (w)     3,437,000 3,413,525
Calpine Corp., 3.75%, 3/01/2031 (n)     2,900,000 2,375,896
FirstEnergy Corp., 5.35%, 7/15/2047      838,000 691,417
Jersey Central Power & Light Co., 2.75%, 3/01/2032 (n)     359,000 279,345
Mercury Chile Holdco LLC, 6.5%, 1/24/2027 (n)     1,793,000 1,479,225
Pacific Gas & Electric Co., 5.45%, 6/15/2027      4,527,000 4,268,605
Pacific Gas & Electric Co., 3%, 6/15/2028      614,000 505,209
Pacific Gas & Electric Co., 3.5%, 8/01/2050      2,250,000 1,372,469
ReNew Wind Energy AP2/ReNew Power Private Ltd., 4.5%, 7/14/2028 (n)     2,580,000 1,908,745
        $19,658,047
Utilities - Water – 0.2%
Aegea Finance S.à r.l., 6.75%, 5/20/2029 (n)   $ 2,626,000 $2,417,233
Total Bonds (Identified Cost, $1,157,560,173)   $1,016,388,306
Common Stocks – 0.0%
Construction – 0.0%  
ICA Tenedora S.A. de C.V. (u) (Identified Cost, $0)   36,995 $31,743
Investment Companies (h) – 3.7%
Money Market Funds – 3.7%  
MFS Institutional Money Market Portfolio, 3.02% (v) (Identified Cost, $38,543,194)     38,543,970 $38,543,970
Other Assets, Less Liabilities – 0.3%   3,366,765
Net Assets – 100.0% $1,058,330,784
    
(a) Non-income producing security.
(d) In default.
(f) All or a portion of the security has been segregated as collateral for open futures contracts.
24

Portfolio of Investments – continued
(h) An affiliated issuer, which 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. At period end, the aggregate values of the fund's investments in affiliated issuers and in unaffiliated issuers were $38,543,970 and $1,016,420,049, respectively.
(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 $359,989,835, representing 34.0% of net assets.
(p) Payment-in-kind (PIK) security for which interest income may be received in additional securities and/or cash.
(u) The security was valued using significant unobservable inputs and is considered level 3 under the fair value hierarchy. For further information about the fund’s level 3 holdings, please see Note 2 in the Notes to Financial Statements.
(v) Affiliated issuer that is available only to investment companies managed by MFS. The rate quoted for the MFS Institutional Money Market Portfolio is the annualized seven-day yield of the fund at period end.
(w) When-issued security.
(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 Value
ReadyCap Commercial Mortgage Trust, 2021-FL7, “D”, FLR, 6.536% (LIBOR - 1mo. + 2.95%), 11/25/2036 11/12/21 $1,770,000 $1,660,649
% of Net assets     0.2%
    
The following abbreviations are used in this report and are defined:
AAC Ambac Assurance Corp.
AGM Assured Guaranty Municipal
CDO Collateralized Debt Obligation
CLO Collateralized Loan Obligation
CMT Constant Maturity Treasury
FLR Floating Rate. Interest rate resets periodically based on the parenthetically disclosed reference rate plus a spread (if any). The period-end rate reported may not be the current rate. All reference rates are USD unless otherwise noted.
LIBOR London Interbank Offered Rate
NPFG National Public Finance Guarantee Corp.
REIT Real Estate Investment Trust
SOFR Secured Overnight Financing Rate
UMBS Uniform Mortgage-Backed Security
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:
EUR Euro
25

Portfolio of Investments – continued
Derivative Contracts at 10/31/22
Forward Foreign Currency Exchange Contracts
Currency
Purchased
Currency
Sold
Counterparty Settlement
Date
Unrealized
Appreciation
(Depreciation)
Liability Derivatives
USD 1,489,501 EUR 1,511,723 Barclays Bank PLC 1/20/2023 $(14,656)
    
Futures Contracts
Description Long/
Short
Currency Contracts Notional
Amount
Expiration
Date
Value/Unrealized
Appreciation
(Depreciation)
Liability Derivatives
Interest Rate Futures    
U.S. Treasury Note 2 yr Long USD 314 $64,176,203 December – 2022 $(1,278,836)
U.S. Treasury Note 5 yr Long USD 701 74,722,219 December – 2022 (3,261,130)
U.S. Treasury Ultra Bond Long USD 149 19,020,781 December – 2022 (2,982,951)
U.S. Treasury Ultra Note 10 yr Long USD 69 8,002,922 December – 2022 (654,110)
            $(8,177,027)
At October 31, 2022, the fund had liquid securities with an aggregate value of $2,752,661 to cover any collateral or margin obligations for  certain derivative contracts. 
See Notes to Financial Statements
26

Financial Statements
Statement of Assets and Liabilities
At 10/31/22
This statement represents your fund’s balance sheet, which details the assets and liabilities comprising the total value of the fund.
Assets  
Investments in unaffiliated issuers, at value (identified cost, $1,157,560,173) $1,016,420,049
Investments in affiliated issuers, at value (identified cost, $38,543,194) 38,543,970
Cash 11,990
Receivables for  
Investments sold 6,212,368
Fund shares sold 5,260,219
Interest 7,655,817
Receivable from investment adviser 115,213
Total assets $1,074,219,626
Liabilities  
Payables for  
Distributions $31,404
Forward foreign currency exchange contracts 14,656
Net daily variation margin on open futures contracts 586,004
Investments purchased 8,900,021
Fund shares reacquired 2,511,729
When-issued investments purchased 3,413,525
Payable to affiliates  
Administrative services fee 1,827
Shareholder servicing costs 228,147
Distribution and service fees 10,932
Payable for independent Trustees' compensation 12
Accrued expenses and other liabilities 190,585
Total liabilities $15,888,842
Net assets $1,058,330,784
Net assets consist of  
Paid-in capital $1,236,806,586
Total distributable earnings (loss) (178,475,802)
Net assets $1,058,330,784
Shares of beneficial interest outstanding 185,928,151
27

Statement of Assets and Liabilities – continued
  Net assets Shares
outstanding
Net asset value
per share (a)
Class A $349,678,801 61,371,314 $5.70
Class B 2,004,562 354,220 5.66
Class C 10,200,521 1,806,845 5.65
Class I 439,493,836 77,277,973 5.69
Class R6 256,953,064 45,117,799 5.70
    
(a) Maximum offering price per share was equal to the net asset value per share for all share classes, except for Class A, for which the maximum offering price per share was $5.95 [100 / 95.75 x $5.70]. On sales of $100,000 or more, the maximum offering price of Class A shares is reduced. A contingent deferred sales charge may be imposed on redemptions of Class A, Class B, and Class C shares. Redemption price per share was equal to the net asset value per share for Classes I and R6.
See Notes to Financial Statements
28

Financial Statements
Statement of Operations
Year ended 10/31/22
This statement describes how much your fund earned in investment income and accrued in expenses. It also describes any gains and/or losses generated by fund operations.
Net investment income (loss)  
Income  
Interest $29,155,207
Dividends from affiliated issuers 243,223
Other 150,608
Total investment income $29,549,038
Expenses  
Management fee $4,412,789
Distribution and service fees 1,035,143
Shareholder servicing costs 769,594
Administrative services fee 146,388
Independent Trustees' compensation 15,502
Custodian fee 80,846
Shareholder communications 73,680
Audit and tax fees 78,959
Legal fees 3,942
Miscellaneous 279,857
Total expenses $6,896,700
Fees paid indirectly (763)
Reduction of expenses by investment adviser and distributor (1,781,669)
Net expenses $5,114,268
Net investment income (loss) $24,434,770
29

Statement of Operations – continued
Realized and unrealized gain (loss)
Realized gain (loss) (identified cost basis)  
Unaffiliated issuers $(18,383,678)
Affiliated issuers 1,053
Futures contracts (10,348,577)
Forward foreign currency exchange contracts 1,460,524
Foreign currency (848,256)
Net realized gain (loss) $(28,118,934)
Change in unrealized appreciation or depreciation  
Unaffiliated issuers $(148,490,579)
Affiliated issuers 776
Futures contracts (8,332,020)
Forward foreign currency exchange contracts (2,169)
Translation of assets and liabilities in foreign currencies (2,228)
Net unrealized gain (loss) $(156,826,220)
Net realized and unrealized gain (loss) $(184,945,154)
Change in net assets from operations $(160,510,384)
See Notes to Financial Statements
30

Financial Statements
Statements of Changes in Net Assets
These statements describe the increases and/or decreases in net assets resulting from operations, any distributions, and any shareholder transactions.
  Year ended
  10/31/22 10/31/21
Change in net assets    
From operations    
Net investment income (loss) $24,434,770 $9,874,446
Net realized gain (loss) (28,118,934) 8,429,367
Net unrealized gain (loss) (156,826,220) (7,197,318)
Change in net assets from operations $(160,510,384) $11,106,495
Total distributions to shareholders $(30,562,894) $(11,984,817)
Change in net assets from fund share transactions $655,076,090 $178,788,635
Total change in net assets $464,002,812 $177,910,313
Net assets    
At beginning of period 594,327,972 416,417,659
At end of period $1,058,330,784 $594,327,972
See Notes to Financial Statements
31

Financial Statements
Financial Highlights
The financial highlights table is intended to help you understand the fund's financial performance for the past 5 years (or life of a particular share class, if shorter). Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the fund share class (assuming reinvestment of all distributions) held for the entire period.
Class A  Year ended
  10/31/22 10/31/21 10/31/20 10/31/19 10/31/18
Net asset value, beginning of period $7.05 $7.04 $6.80 $6.27 $6.64
Income (loss) from investment operations
Net investment income (loss) (d) $0.16 $0.14 $0.18 $0.20 $0.20
Net realized and unrealized gain (loss) (1.28) 0.04 0.25 0.53 (0.38)
 Total from investment operations  $(1.12)  $0.18  $0.43  $0.73  $(0.18)
Less distributions declared to shareholders
From net investment income $(0.16) $(0.16) $(0.19) $(0.20) $(0.19)
From net realized gain (0.07) (0.01)
 Total distributions declared to shareholders  $(0.23)  $(0.17)  $(0.19)  $(0.20)  $(0.19)
 Net asset value, end of period (x)  $5.70  $7.05  $7.04  $6.80  $6.27
 Total return (%) (r)(s)(t)(x) (16.28) 2.67 6.46 11.86 (2.77)
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions (f)(h) 0.93 0.95 0.99 1.09 1.09
Expenses after expense reductions (f)(h) 0.73 0.73 0.76 1.02 1.04
Net investment income (loss) 2.55 2.02 2.64 3.05 3.04
Portfolio turnover 55 64 95 103 66
Net assets at end of period (000 omitted)  $349,679  $329,668  $250,293  $210,404  $191,061
See Notes to Financial Statements
32

Financial Highlights – continued
Class B  Year ended
  10/31/22 10/31/21 10/31/20 10/31/19 10/31/18
Net asset value, beginning of period $7.00 $6.99 $6.76 $6.22 $6.60
Income (loss) from investment operations
Net investment income (loss) (d) $0.11 $0.09 $0.13 $0.15 $0.15
Net realized and unrealized gain (loss) (1.27) 0.04 0.24 0.54 (0.39)
 Total from investment operations  $(1.16)  $0.13  $0.37  $0.69  $(0.24)
Less distributions declared to shareholders
From net investment income $(0.11) $(0.11) $(0.14) $(0.15) $(0.14)
From net realized gain (0.07) (0.01)
 Total distributions declared to shareholders  $(0.18)  $(0.12)  $(0.14)  $(0.15)  $(0.14)
 Net asset value, end of period (x)  $5.66  $7.00  $6.99  $6.76  $6.22
 Total return (%) (r)(s)(t)(x) (16.90) 1.91 5.54 11.27 (3.63)
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions (f)(h) 1.68 1.70 1.74 1.84 1.84
Expenses after expense reductions (f)(h) 1.48 1.48 1.51 1.78 1.80
Net investment income (loss) 1.68 1.30 1.92 2.31 2.28
Portfolio turnover 55 64 95 103 66
Net assets at end of period (000 omitted)  $2,005  $4,365  $6,402  $11,016  $13,331
    
Class C  Year ended
  10/31/22 10/31/21 10/31/20 10/31/19 10/31/18
Net asset value, beginning of period $6.98 $6.97 $6.74 $6.21 $6.58
Income (loss) from investment operations
Net investment income (loss) (d) $0.11 $0.09 $0.13 $0.15 $0.15
Net realized and unrealized gain (loss) (1.26) 0.04 0.24 0.53 (0.38)
 Total from investment operations  $(1.15)  $0.13  $0.37  $0.68  $(0.23)
Less distributions declared to shareholders
From net investment income $(0.11) $(0.11) $(0.14) $(0.15) $(0.14)
From net realized gain (0.07) (0.01)
 Total distributions declared to shareholders  $(0.18)  $(0.12)  $(0.14)  $(0.15)  $(0.14)
 Net asset value, end of period (x)  $5.65  $6.98  $6.97  $6.74  $6.21
 Total return (%) (r)(s)(t)(x) (16.81) 1.91 5.55 11.12 (3.55)
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions (f)(h) 1.68 1.70 1.74 1.84 1.84
Expenses after expense reductions (f)(h) 1.48 1.48 1.51 1.78 1.80
Net investment income (loss) 1.74 1.30 1.90 2.31 2.26
Portfolio turnover 55 64 95 103 66
Net assets at end of period (000 omitted)  $10,201  $14,461  $19,035  $17,783  $19,834
See Notes to Financial Statements
33

Financial Highlights – continued
Class I  Year ended
  10/31/22 10/31/21 10/31/20 10/31/19 10/31/18
Net asset value, beginning of period $7.03 $7.03 $6.79 $6.26 $6.63
Income (loss) from investment operations
Net investment income (loss) (d) $0.18 $0.16 $0.20 $0.21 $0.21
Net realized and unrealized gain (loss) (1.28) 0.03 0.25 0.54 (0.38)
 Total from investment operations  $(1.10)  $0.19  $0.45  $0.75  $(0.17)
Less distributions declared to shareholders
From net investment income $(0.17) $(0.18) $(0.21) $(0.22) $(0.20)
From net realized gain (0.07) (0.01)
 Total distributions declared to shareholders  $(0.24)  $(0.19)  $(0.21)  $(0.22)  $(0.20)
 Net asset value, end of period (x)  $5.69  $7.03  $7.03  $6.79  $6.26
 Total return (%) (r)(s)(t)(x) (15.97) 2.78 6.73 12.15 (2.54)
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions (f)(h) 0.68 0.70 0.74 0.84 0.84
Expenses after expense reductions (f)(h) 0.48 0.48 0.51 0.77 0.80
Net investment income (loss) 2.92 2.26 2.86 3.28 3.25
Portfolio turnover 55 64 95 103 66
Net assets at end of period (000 omitted)  $439,494  $159,393  $114,592  $50,067  $46,277
    
Class R6  Year ended
  10/31/22 10/31/21 10/31/20 10/31/19 10/31/18(i)
Net asset value, beginning of period $7.04 $7.04 $6.80 $6.27 $6.48
Income (loss) from investment operations
Net investment income (loss) (d) $0.19 $0.16 $0.20 $0.22 $0.15
Net realized and unrealized gain (loss) (1.28) 0.04 0.25 0.53 (0.22)
 Total from investment operations  $(1.09)  $0.20  $0.45  $0.75  $(0.07)
Less distributions declared to shareholders
From net investment income $(0.18) $(0.19) $(0.21) $(0.22) $(0.14)
From net realized gain (0.07) (0.01)
 Total distributions declared to shareholders  $(0.25)  $(0.20)  $(0.21)  $(0.22)  $(0.14)
 Net asset value, end of period (x)  $5.70  $7.04  $7.04  $6.80  $6.27
 Total return (%) (r)(s)(t)(x) (15.87) 2.87 6.81 12.22 (1.03)(n)
Ratios (%) (to average net assets)
and Supplemental data:
Expenses before expense reductions (f)(h) 0.60 0.61 0.66 0.76 0.72(a)
Expenses after expense reductions (f)(h) 0.40 0.40 0.43 0.70 0.71(a)
Net investment income (loss) 2.99 2.28 2.95 3.37 3.53(a)
Portfolio turnover 55 64 95 103 66
Net assets at end of period (000 omitted)  $256,953  $86,441  $26,095  $14,141  $12,798
    
See Notes to Financial Statements
34

Financial Highlights – continued
(a) Annualized.
(d) Per share data is based on average shares outstanding.
(f) Ratios do not reflect reductions from fees paid indirectly, if applicable. See Note 2 in the Notes to Financial Statements for additional information.
(h) For financial highlights through October 31, 2018, in addition to the fees and expenses which the fund bears directly, the fund indirectly bears a pro rata share of the fees and expenses of the underlying affiliated funds in which the fund invests. Accordingly, the expense ratio for the fund reflects only those fees and expenses borne directly by the fund. Because the underlying affiliated funds have varied expense and fee levels and the fund may own different proportions of the underlying affiliated funds at different times, the amount of fees and expenses incurred indirectly by the fund will vary.
(i) For Class R6, the period is from the class inception, March 2, 2018, through the stated period end.
(n) Not annualized.
(r) Certain expenses have been reduced without which performance would have been lower.
(s) From time to time the fund may receive proceeds from litigation settlements, without which performance would be lower.
(t) Total returns do not include any applicable sales charges.
(x) The net asset values and total returns have been calculated on net assets which include adjustments made in accordance with U.S. generally accepted accounting principles required at period end for financial reporting purposes.
See Notes to Financial Statements
35

Notes to Financial Statements
(1) Business and Organization
MFS Income Fund (the fund) is a diversified series of MFS Series Trust VIII (the trust). The trust is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company.
The fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies.
(2) Significant Accounting Policies
General — The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. In the preparation of these financial statements, management has evaluated subsequent events occurring after the date of the fund’s Statement of Assets and Liabilities through the date that the financial statements were issued. The fund invests in high-yield securities rated below investment grade. Investments in below investment grade quality securities can involve a substantially greater risk of default or can already be in default, and their values can decline significantly. Below investment grade quality securities tend to be more sensitive to adverse news about the issuer, or the market or economy in general, than higher quality debt instruments. The fund invests in foreign securities. Investments in foreign securities are vulnerable to the effects of changes in the relative values of the local currency and the U.S. dollar and to the effects of changes in each country’s market, economic, industrial, political, regulatory, geopolitical, environmental, public health, and other conditions.
In June 2022, the FASB issued Accounting Standards Update 2022-03, Fair Value Measurement (Topic 820) – Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”), which affects all entities that have investments in equity securities measured at fair value that are subject to contractual sale restrictions. ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is a characteristic of the reporting entity holding the equity security rather than a characteristic of the asset and, therefore, is not considered in measuring the fair value of the equity security. The fund decided to early adopt ASU 2022-03 effective as of June 30, 2022 as the guidance in ASU 2022-03 was consistent with the fund’s existing practices for fair value measurement.
Balance Sheet Offsetting — The fund's accounting policy with respect to balance sheet offsetting is that, absent an event of default by the counterparty or a termination of the agreement, the International Swaps and Derivatives Association (ISDA) Master Agreement, or similar agreement, does not result in an offset of reported amounts of financial assets and financial liabilities in the Statement of Assets and Liabilities across transactions between the fund and the applicable counterparty. The fund's right to setoff may be restricted or prohibited by the bankruptcy or insolvency laws of the particular jurisdiction to which a specific master netting agreement counterparty is
36

Notes to Financial Statements  - continued
subject. Balance sheet offsetting disclosures, to the extent applicable to the fund, have been included in the fund’s Significant Accounting Policies note under the captions for each of the fund’s in-scope financial instruments and transactions.
Investment Valuations Subject to its oversight, the fund's Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments to MFS as the fund's adviser, pursuant to the fund’s valuation policy and procedures which have been adopted by the adviser and approved by the Board. Effective September 8, 2022, and in accordance with Rule 2a-5 under the Investment Company Act of 1940, the Board of Trustees designated the adviser as the “valuation designee” of the fund. If the adviser, as valuation designee, determines that reliable market quotations are not readily available for an investment, the investment is valued at fair value as determined in good faith by the adviser in accordance with the adviser’s fair valuation policy and procedures.
Under the fund's valuation policy and procedures, equity securities, including restricted equity securities, are generally valued at the last sale or official closing price on their primary market or exchange as provided by a third-party pricing service. Equity securities, for which there were no sales reported that day, are generally valued at the last quoted daily bid quotation on their primary market or exchange as provided by a third-party pricing service. Debt instruments and floating rate loans, including restricted debt instruments, are generally valued at an evaluated or composite bid as provided by a third-party pricing service. Short-term instruments with a maturity at issuance of 60 days or less may be valued at amortized cost, which approximates market value.
Futures contracts are generally valued at last posted settlement price on their primary exchange as provided by a third-party pricing service. Futures contracts for which there were no trades that day for a particular position are generally valued at the closing bid quotation on their primary exchange as provided by a third-party pricing service.
Forward foreign currency exchange 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. 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.
Under the fund’s valuation policy and procedures, market quotations are not considered to be readily available for debt instruments, floating rate loans, and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services or otherwise determined by the adviser in accordance with the adviser’s fair valuation policy and procedures. 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. In determining values, third-party pricing services can utilize both transaction data and market information such as yield, quality, coupon rate, maturity, type of issue, trading characteristics, spreads and other market data. An investment may also be valued at fair value if the adviser determines that the 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 halt 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. 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;
37

Notes to Financial Statements  - continued
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 significant unobservable inputs, which may include the adviser's own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments, such as futures contracts and forward foreign currency exchange contracts. The following is a summary of the levels used as of October 31, 2022 in valuing the fund's assets and liabilities:
Financial Instruments Level 1 Level 2 Level 3 Total
Equity Securities:        
Mexico $— $— $31,743 $31,743
U.S. Treasury Bonds & U.S. Government Agencies & Equivalents 408,565,701 408,565,701
Non - U.S. Sovereign Debt 19,785,052 19,785,052
Municipal Bonds 12,813,415 12,813,415
U.S. Corporate Bonds 277,606,109 277,606,109
Residential Mortgage-Backed Securities 1,124,602 1,124,602
Commercial Mortgage-Backed Securities 39,263,659 39,263,659
Asset-Backed Securities (including CDOs) 142,228,845 142,228,845
Foreign Bonds 115,000,923 115,000,923
Mutual Funds 38,543,970 38,543,970
Total $38,543,970 $1,016,388,306 $31,743 $1,054,964,019
Other Financial Instruments        
Futures Contracts – Liabilities $(8,177,027) $— $— $(8,177,027)
Forward Foreign Currency Exchange Contracts – Liabilities (14,656) (14,656)
38

Notes to Financial Statements  - continued
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 10/31/21 $30,548
Change in unrealized appreciation or depreciation 1,195
Balance as of 10/31/22 $31,743
The net change in unrealized appreciation or depreciation from investments held as level 3 at October 31, 2022 is $1,195. At October 31, 2022, the fund held one level 3 security.
Foreign Currency Translation — Purchases and sales of foreign investments, income, and expenses are converted into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions or on the reporting date for foreign denominated receivables and payables. Gains and losses attributable to foreign currency exchange rates on sales of securities are recorded for financial statement purposes as net realized gains and losses on investments. Gains and losses attributable to foreign exchange rate movements on receivables, payables, income and expenses are recorded for financial statement purposes as foreign currency transaction gains and losses. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates is not separately disclosed.
Derivatives — The fund uses derivatives primarily to increase or decrease exposure to a particular market or segment of the market, or security, to increase or decrease interest rate or currency exposure, or as alternatives to direct investments. Derivatives are used for hedging or non-hedging purposes. While hedging can reduce or eliminate losses, it can also reduce or eliminate gains. When the fund uses derivatives as an investment to increase market exposure, or for hedging purposes, gains and losses from derivative instruments may be substantially greater than the derivative’s original cost.
The derivative instruments used by the fund during the period were futures contracts and forward foreign currency exchange contracts. Depending on the type of derivative, a fund may exit a derivative position by entering into an offsetting transaction with a counterparty or exchange, negotiating an agreement with the derivative counterparty, or novating the position to a third party. The fund may be unable to promptly close out a futures position in instances where the daily fluctuation in the price for that type of future exceeds the daily limit set by the exchange. The fund's period end derivatives, as presented in the Portfolio of Investments and the associated Derivative Contract tables, generally are indicative of the volume of its derivative activity during the period.
39

Notes to Financial Statements  - continued
The following table presents, by major type of derivative contract, the fair value, on a gross basis, of the asset and liability components of derivatives held by the fund at October 31, 2022 as reported in the Statement of Assets and Liabilities:
    Fair Value (a)  
Risk Derivative Contracts Liability Derivatives  
Interest Rate Futures Contracts $(8,177,027)  
Foreign Exchange Forward Foreign Currency Exchange Contracts (14,656)  
Total   $(8,191,683)  
(a) Values presented in this table for futures contracts correspond to the values reported in the Portfolio of Investments. Only the current day net variation margin for futures contracts is reported separately within the Statement of Assets and Liabilities.
The following table presents, by major type of derivative contract, the realized gain (loss) on derivatives held by the fund for the year ended October 31, 2022 as reported in the Statement of Operations:
Risk Futures
Contracts
Forward Foreign
Currency
Exchange
Contracts
Interest Rate $(10,348,577) $
Foreign Exchange 1,460,524
Total $(10,348,577) $1,460,524
The following table presents, by major type of derivative contract, the change in unrealized appreciation or depreciation on derivatives held by the fund for the year ended October 31, 2022 as reported in the Statement of Operations:
Risk Futures
Contracts
Forward Foreign
Currency
Exchange
Contracts
Interest Rate $(8,332,020)