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 811-05912
MFS SPECIAL VALUE TRUST
(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: April 30, 2022
ITEM 1. | REPORTS TO STOCKHOLDERS. |
Item 1(a): |
1 | |
2 | |
4 | |
4 | |
5 | |
20 | |
21 | |
22 | |
23 | |
25 | |
35 | |
36 | |
36 | |
36 | |
36 |
back cover |
Texas Instruments, Inc. | 2.2% |
Southern Co. | 2.1% |
Northrop Grumman Corp. | 2.1% |
Duke Energy Corp. | 2.0% |
Progressive Corp. | 2.0% |
Johnson & Johnson | 2.0% |
Dominion Energy, Inc. | 1.9% |
Nestle S.A., ADR | 1.8% |
Aon PLC | 1.8% |
Morgan Stanley | 1.8% |
Financials | 14.7% |
Industrials | 7.0% |
Utilities | 6.1% |
Health Care | 5.3% |
Information Technology | 3.4% |
Consumer Staples | 1.8% |
Communication Services | 1.8% |
Materials | 1.5% |
Consumer Discretionary | 1.2% |
ETFs | 1.2% |
Energy (o) | 0.0% |
High Yield Corporates | 45.0% |
Emerging Markets Bonds | 7.4% |
Investment Grade Corporates | 1.0% |
Municipal Bonds | 0.1% |
U.S. Treasury Securities | (0.9)% |
BBB | 1.0% |
BB | 27.6% |
B | 18.9% |
CCC | 5.9% |
C | 0.1% |
Not Rated | (0.9)% |
Non-Fixed Income | 44.0% |
Cash & Cash Equivalents | 2.5% |
Other | 0.9% |
(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. 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) 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. |
(g) | The Global Industry Classification Standard (GICS®) was developed by and/or is the exclusive property of MSCI, Inc. and S&P Global Market Intelligence Inc. (“S&P Global Market Intelligence”). GICS is a service mark of MSCI and S&P Global Market Intelligence and has been licensed for use by MFS. MFS has applied its own internal sector/industry classification methodology for equity securities and non-equity securities that are unclassified by GICS. |
(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. |
(o) | Less than 0.1%. |
Portfolio Manager | Primary Role | Since | Title and Five Year History |
Ward Brown | Emerging Markets Debt Instruments Portfolio Manager | 2012 | Investment Officer of MFS; employed in the investment management area of MFS since 2005. |
Katherine Cannan | Equity Securities Portfolio Manager | 2019 | Investment Officer of MFS; employed in the investment management area of MFS since 2013. |
Nevin Chitkara | Equity Securities Portfolio Manager | 2012 | Investment Officer of MFS; employed in the investment management area of MFS since 1997. |
David Cole | Below Investment Grade Debt Instruments Portfolio Manager | 2006 | Investment Officer of MFS; employed in the investment management area of MFS since 2004. |
Matt Ryan | Emerging Markets Debt Instruments Portfolio Manager | 2012 | Investment Officer of MFS; employed in the investment management area of MFS since 1997. |
Michael Skatrud | Below Investment Grade Debt Instruments Portfolio Manager | 2018 | Investment Officer of MFS; employed in the investment management area of MFS since 2013. |
Issuer | Shares/Par | Value ($) | ||
Bonds – 52.7% | ||||
Aerospace & Defense – 0.9% | ||||
Bombardier, Inc., 7.5%, 3/15/2025 (n) | $ | 30,000 | $ 29,100 | |
Bombardier, Inc., 7.125%, 6/15/2026 (n) | 33,000 | 30,360 | ||
Moog, Inc., 4.25%, 12/15/2027 (n) | 76,000 | 70,775 | ||
TransDigm, Inc., 6.25%, 3/15/2026 (n) | 70,000 | 69,650 | ||
TransDigm, Inc., 6.375%, 6/15/2026 | 40,000 | 39,498 | ||
TransDigm, Inc., 5.5%, 11/15/2027 | 55,000 | 50,435 | ||
TransDigm, Inc., 4.625%, 1/15/2029 | 41,000 | 35,677 | ||
$ 325,495 | ||||
Automotive – 1.5% | ||||
Clarios Global LP/Clarios U.S. Finance Cois, 8.5%, 5/15/2027 (n) | $ | 85,000 | $ 84,947 | |
Dana, Inc., 5.375%, 11/15/2027 | 46,000 | 43,470 | ||
Dana, Inc., 5.625%, 6/15/2028 | 15,000 | 14,306 | ||
Dana, Inc., 4.25%, 9/01/2030 | 25,000 | 21,430 | ||
Dornoch Debt Merger Sub, Inc., 6.625%, 10/15/2029 (n) | 40,000 | 32,800 | ||
Ford Motor Co., 4.75%, 1/15/2043 | 45,000 | 36,225 | ||
Ford Motor Credit Co. LLC, 4.134%, 8/04/2025 | 200,000 | 192,000 | ||
IAA Spinco, Inc., 5.5%, 6/15/2027 (n) | 65,000 | 63,538 | ||
Real Hero Merger Sub 2, Inc., 6.25%, 2/01/2029 (n) | 40,000 | 32,442 | ||
Wheel Pros, Inc., 6.5%, 5/15/2029 (n) | 35,000 | 26,600 | ||
$ 547,758 | ||||
Broadcasting – 1.0% | ||||
Advantage Sales & Marketing, Inc., 6.5%, 11/15/2028 (n) | $ | 62,000 | $ 56,343 | |
Gray Escrow II, Inc., 5.375%, 11/15/2031 (n) | 80,000 | 68,957 | ||
iHeartCommunications, Inc., 8.375%, 5/01/2027 | 20,000 | 19,800 | ||
Scripps Escrow II, Inc., 5.875%, 7/15/2027 (n) | 50,000 | 47,750 | ||
Univision Communications, Inc., 4.5%, 5/01/2029 (n) | 69,000 | 61,927 | ||
WMG Acquisition Corp., 3.875%, 7/15/2030 (n) | 110,000 | 98,450 | ||
$ 353,227 | ||||
Brokerage & Asset Managers – 0.8% | ||||
Aretec Escrow Issuer, Inc., 7.5%, 4/01/2029 (n) | $ | 40,000 | $ 37,250 | |
LPL Holdings, Inc., 4.625%, 11/15/2027 (n) | 100,000 | 94,875 | ||
LPL Holdings, Inc., 4%, 3/15/2029 (n) | 51,000 | 46,410 | ||
LPL Holdings, Inc., 4.375%, 5/15/2031 (n) | 35,000 | 31,955 | ||
NFP Corp., 4.875%, 8/15/2028 (n) | 45,000 | 40,950 | ||
NFP Corp., 6.875%, 8/15/2028 (n) | 51,000 | 45,316 | ||
$ 296,756 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Building – 1.8% | ||||
ABC Supply Co., Inc., 4%, 1/15/2028 (n) | $ | 125,000 | $ 116,562 | |
Foundation Building Materials LLC, 6%, 3/01/2029 (n) | 15,000 | 12,206 | ||
GYP Holding III Corp., 4.625%, 5/01/2029 (n) | 75,000 | 66,469 | ||
Interface, Inc., 5.5%, 12/01/2028 (n) | 65,000 | 58,892 | ||
MIWD Holdco II LLC/MIWD Finance Co., 5.5%, 2/01/2030 (n) | 35,000 | 30,275 | ||
New Enterprise Stone & Lime Co., Inc., 9.75%, 7/15/2028 (n) | 43,000 | 42,248 | ||
Park River Holdings, Inc., 5.625%, 2/01/2029 (n) | 30,000 | 23,028 | ||
Patrick Industries, Inc., 7.5%, 10/15/2027 (n) | 65,000 | 65,650 | ||
SRM Escrow Issuer LLC, 6%, 11/01/2028 (n) | 50,000 | 48,000 | ||
SRS Distribution, Inc., 6.125%, 7/01/2029 (n) | 55,000 | 48,536 | ||
Standard Industries, Inc., 4.75%, 1/15/2028 (n) | 28,000 | 25,760 | ||
Standard Industries, Inc., 4.375%, 7/15/2030 (n) | 76,000 | 63,373 | ||
Standard Industries, Inc., 3.375%, 1/15/2031 (n) | 10,000 | 7,987 | ||
White Cap Buyer LLC, 6.875%, 10/15/2028 (n) | 45,000 | 41,231 | ||
$ 650,217 | ||||
Business Services – 1.0% | ||||
HealthEquity, Inc., 4.5%, 10/01/2029 (n) | $ | 65,000 | $ 59,394 | |
Iron Mountain, Inc., 5.25%, 3/15/2028 (n) | 30,000 | 28,576 | ||
Iron Mountain, Inc., REIT, 4.875%, 9/15/2027 (n) | 45,000 | 42,975 | ||
Nielsen Finance LLC, 4.5%, 7/15/2029 (n) | 40,000 | 37,802 | ||
Paysafe Finance PLC, 4%, 6/15/2029 (z) | 55,000 | 44,825 | ||
Switch Ltd., 3.75%, 9/15/2028 (n) | 79,000 | 74,062 | ||
Switch Ltd., 4.125%, 6/15/2029 (n) | 20,000 | 19,100 | ||
Verscend Escrow Corp., 9.75%, 8/15/2026 (n) | 50,000 | 51,500 | ||
$ 358,234 | ||||
Cable TV – 4.1% | ||||
CCO Holdings LLC/CCO Holdings Capital Corp., 5.125%, 5/01/2027 (n) | $ | 35,000 | $ 34,117 | |
CCO Holdings LLC/CCO Holdings Capital Corp., 4.75%, 3/01/2030 (n) | 179,000 | 159,981 | ||
CCO Holdings LLC/CCO Holdings Capital Corp., 4.5%, 8/15/2030 (n) | 70,000 | 61,075 | ||
CCO Holdings LLC/CCO Holdings Capital Corp., 4.25%, 2/01/2031 (n) | 90,000 | 75,852 | ||
CCO Holdings LLC/CCO Holdings Capital Corp., 4.25%, 1/15/2034 (n) | 55,000 | 43,725 | ||
CSC Holdings LLC, 4.125%, 12/01/2030 (n) | 200,000 | 165,000 | ||
DISH DBS Corp., 7.75%, 7/01/2026 | 30,000 | 28,220 | ||
DISH DBS Corp., 5.25%, 12/01/2026 (n) | 50,000 | 45,908 | ||
DISH DBS Corp., 5.125%, 6/01/2029 | 40,000 | 31,244 | ||
Sirius XM Holdings, Inc., 3.875%, 9/01/2031 (n) | 75,000 | 63,338 | ||
Sirius XM Radio, Inc., 4%, 7/15/2028 (n) | 67,000 | 60,551 | ||
Sirius XM Radio, Inc., 5.5%, 7/01/2029 (n) | 125,000 | 120,208 | ||
Telenet Finance Luxembourg S.A., 5.5%, 3/01/2028 (n) | 200,000 | 191,000 | ||
Videotron Ltd., 5.125%, 4/15/2027 (n) | 35,000 | 34,300 | ||
Virgin Media Finance PLC, 5%, 7/15/2030 (n) | 200,000 | 174,000 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Cable TV – continued | ||||
Ziggo Bond Finance B.V., 5.125%, 2/28/2030 (n) | $ | 200,000 | $ 173,500 | |
$ 1,462,019 | ||||
Chemicals – 1.4% | ||||
Axalta Coating Systems Ltd., 4.75%, 6/15/2027 (n) | $ | 150,000 | $ 142,500 | |
Element Solutions, Inc., 3.875%, 9/01/2028 (n) | 65,000 | 58,094 | ||
Ingevity Corp., 3.875%, 11/01/2028 (n) | 74,000 | 66,230 | ||
LSF11 A5 HoldCo LLC, 6.625%, 10/15/2029 (n) | 40,000 | 34,800 | ||
Sasol Financing (USA) LLC, 5.5%, 3/18/2031 | 200,000 | 180,000 | ||
$ 481,624 | ||||
Computer Software – 0.7% | ||||
Camelot Finance S.A., 4.5%, 11/01/2026 (n) | $ | 40,000 | $ 37,600 | |
Clarivate Science Holdings Corp., 3.875%, 7/01/2028 (n) | 10,000 | 8,900 | ||
Clarivate Science Holdings Corp., 4.875%, 7/01/2029 (n) | 65,000 | 57,283 | ||
Dun & Bradstreet Corp., 5%, 12/15/2029 (n) | 50,000 | 46,500 | ||
PTC, Inc., 3.625%, 2/15/2025 (n) | 55,000 | 53,281 | ||
PTC, Inc., 4%, 2/15/2028 (n) | 35,000 | 32,439 | ||
$ 236,003 | ||||
Computer Software - Systems – 0.9% | ||||
Fair Isaac Corp., 5.25%, 5/15/2026 (n) | $ | 130,000 | $ 130,650 | |
Fair Isaac Corp., 4%, 6/15/2028 (n) | 7,000 | 6,395 | ||
SS&C Technologies Holdings, Inc., 5.5%, 9/30/2027 (n) | 85,000 | 83,304 | ||
Viavi Solutions, Inc., 3.75%, 10/01/2029 (n) | 70,000 | 62,981 | ||
Virtusa Corp., 7.125%, 12/15/2028 (n) | 35,000 | 31,500 | ||
$ 314,830 | ||||
Conglomerates – 1.4% | ||||
Amsted Industries Co., 5.625%, 7/01/2027 (n) | $ | 70,000 | $ 69,475 | |
BWX Technologies, Inc., 4.125%, 6/30/2028 (n) | 23,000 | 21,333 | ||
BWX Technologies, Inc., 4.125%, 4/15/2029 (n) | 97,000 | 89,725 | ||
Gates Global LLC, 6.25%, 1/15/2026 (n) | 55,000 | 53,625 | ||
Granite Holdings U.S. Acquisition Co., 11%, 10/01/2027 (n) | 5,000 | 5,163 | ||
Griffon Corp., 5.75%, 3/01/2028 | 73,000 | 65,152 | ||
Madison IAQ LLC, 5.875%, 6/30/2029 (n) | 57,000 | 46,455 | ||
Stevens Holding Co., Inc., 6.125%, 10/01/2026 (n) | 45,000 | 45,112 | ||
TriMas Corp., 4.125%, 4/15/2029 (n) | 119,000 | 106,207 | ||
$ 502,247 | ||||
Construction – 0.6% | ||||
Empire Communities Corp., 7%, 12/15/2025 (n) | $ | 45,000 | $ 42,638 | |
Mattamy Group Corp., 5.25%, 12/15/2027 (n) | 30,000 | 28,050 | ||
Mattamy Group Corp., 4.625%, 3/01/2030 (n) | 55,000 | 46,796 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Construction – continued | ||||
Taylor Morrison Communities, Inc., 5.75%, 1/15/2028 (n) | $ | 50,000 | $ 48,875 | |
Weekley Homes LLC/Weekley Finance Corp., 4.875%, 9/15/2028 (n) | 59,000 | 52,113 | ||
$ 218,472 | ||||
Consumer Products – 0.6% | ||||
Mattel, Inc., 3.375%, 4/01/2026 (n) | $ | 46,000 | $ 44,735 | |
Mattel, Inc., 5.875%, 12/15/2027 (n) | 39,000 | 39,897 | ||
Mattel, Inc., 5.45%, 11/01/2041 | 15,000 | 15,056 | ||
Prestige Consumer Healthcare, Inc., 5.125%, 1/15/2028 (n) | 55,000 | 52,250 | ||
Prestige Consumer Healthcare, Inc., 3.75%, 4/01/2031 (n) | 25,000 | 21,194 | ||
SWF Escrow Issuer Corp., 6.5%, 10/01/2029 (n) | 45,000 | 34,762 | ||
$ 207,894 | ||||
Consumer Services – 1.8% | ||||
Allied Universal Holdco LLC, 6.625%, 7/15/2026 (n) | $ | 20,000 | $ 19,329 | |
Allied Universal Holdco LLC, 9.75%, 7/15/2027 (n) | 55,000 | 53,383 | ||
ANGI Group LLC, 3.875%, 8/15/2028 (n) | 71,000 | 56,223 | ||
Arches Buyer, Inc., 6.125%, 12/01/2028 (n) | 55,000 | 47,850 | ||
GoDaddy, Inc., 3.5%, 3/01/2029 (n) | 113,000 | 100,275 | ||
GW B-CR Security Corp., 9.5%, 11/01/2027 (n) | 39,000 | 38,317 | ||
Match Group Holdings II LLC, 3.625%, 10/01/2031 (n) | 5,000 | 4,160 | ||
Match Group, Inc., 5%, 12/15/2027 (n) | 65,000 | 63,375 | ||
Match Group, Inc., 4.625%, 6/01/2028 (n) | 60,000 | 55,930 | ||
Match Group, Inc., 4.125%, 8/01/2030 (n) | 20,000 | 17,875 | ||
Realogy Group LLC/Realogy Co-Issuer Corp., 5.75%, 1/15/2029 (n) | 40,000 | 33,531 | ||
Realogy Group LLC/Realogy Co-Issuer Corp., 5.25%, 4/15/2030 (n) | 35,000 | 28,357 | ||
TriNet Group, Inc., 3.5%, 3/01/2029 (n) | 86,000 | 77,937 | ||
WASH Multifamily Acquisition, Inc., 5.75%, 4/15/2026 (n) | 42,000 | 40,845 | ||
$ 637,387 | ||||
Containers – 1.4% | ||||
ARD Finance S.A., 6.5%, (6.5% cash or 7.25% PIK) 6/30/2027 (n)(p) | $ | 200,000 | $ 168,000 | |
Can-Pack S.A./Eastern PA Land Investment Holding LLC, 3.875%, 11/15/2029 (n) | 200,000 | 171,756 | ||
Crown Americas LLC, 5.25%, 4/01/2030 (n) | 45,000 | 44,606 | ||
Crown Americas LLC/Crown Americas Capital Corp. V, 4.25%, 9/30/2026 | 80,000 | 77,468 | ||
Crown Americas LLC/Crown Americas Capital Corp. VI, 4.75%, 2/01/2026 | 40,000 | 39,850 | ||
$ 501,680 | ||||
Electrical Equipment – 0.2% | ||||
CommScope Technologies LLC, 5%, 3/15/2027 (n) | $ | 90,000 | $ 70,650 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Electronics – 0.9% | ||||
Diebold Nixdorf, Inc., 8.5%, 4/15/2024 | $ | 20,000 | $ 13,144 | |
Diebold Nixdorf, Inc., 9.375%, 7/15/2025 (n) | 30,000 | 26,550 | ||
Entegris, Inc., 4.375%, 4/15/2028 (n) | 30,000 | 27,825 | ||
Entegris, Inc., 3.625%, 5/01/2029 (n) | 27,000 | 23,752 | ||
Sensata Technologies B.V., 5.625%, 11/01/2024 (n) | 50,000 | 50,563 | ||
Sensata Technologies B.V., 5%, 10/01/2025 (n) | 95,000 | 94,287 | ||
Sensata Technologies, Inc., 4.375%, 2/15/2030 (n) | 30,000 | 27,291 | ||
Synaptics, Inc., 4%, 6/15/2029 (n) | 60,000 | 52,897 | ||
$ 316,309 | ||||
Emerging Market Quasi-Sovereign – 0.8% | ||||
Greenko Dutch B.V. (Republic of India), 3.85%, 3/29/2026 (n) | $ | 194,000 | $ 176,404 | |
Petroleos Mexicanos, 6.49%, 1/23/2027 | 100,000 | 95,970 | ||
$ 272,374 | ||||
Emerging Market Sovereign – 0.4% | ||||
Republic of Ecuador, 0%, 7/31/2030 (n) | $ | 8,116 | $ 4,362 | |
Republic of Ecuador, 5%, 7/31/2030 (n) | 37,800 | 30,630 | ||
Republic of Ecuador, 1%, 7/31/2035 (n) | 99,060 | 61,765 | ||
Republic of Ecuador, 0.5%, 7/31/2040 (n) | 45,400 | 24,642 | ||
Republic of Venezuela, 7%, 3/31/2038 (a)(d) | 203,000 | 16,240 | ||
$ 137,639 | ||||
Energy - Independent – 1.7% | ||||
Antero Resources Corp., 7.625%, 2/01/2029 (n) | $ | 25,000 | $ 26,490 | |
Callon Petroleum Co., 6.125%, 10/01/2024 | 25,000 | 24,682 | ||
Callon Petroleum Co., 8%, 8/01/2028 (n) | 25,000 | 25,858 | ||
CNX Resources Corp., 6%, 1/15/2029 (n) | 49,000 | 48,342 | ||
Comstock Resources, Inc., 6.75%, 3/01/2029 (n) | 65,000 | 65,727 | ||
CrownRock LP/CrownRock Finance, Inc., “F”, 5%, 5/01/2029 (n) | 35,000 | 34,251 | ||
Encino Acquisition Partners Holdings LLC, 8.5%, 5/01/2028 (n) | 35,000 | 35,087 | ||
Moss Creek Resources Holdings, Inc., 7.5%, 1/15/2026 (n) | 30,000 | 27,510 | ||
Occidental Petroleum Corp., 5.875%, 9/01/2025 | 55,000 | 56,489 | ||
Occidental Petroleum Corp., 6.625%, 9/01/2030 | 87,000 | 94,286 | ||
Occidental Petroleum Corp., 6.6%, 3/15/2046 | 35,000 | 38,150 | ||
SM Energy Co., 5.625%, 6/01/2025 | 30,000 | 29,325 | ||
SM Energy Co., 6.5%, 7/15/2028 | 30,000 | 29,576 | ||
Southwestern Energy Co., 5.95%, 1/23/2025 | 5,900 | 5,985 | ||
Southwestern Energy Co., 8.375%, 9/15/2028 | 25,000 | 27,031 | ||
Southwestern Energy Co., 5.375%, 3/15/2030 | 30,000 | 29,620 | ||
$ 598,409 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Entertainment – 1.5% | ||||
AMC Entertainment Holdings, Inc., 10%, (10% cash or 12% PIK) 6/15/2026 (n)(p) | $ | 20,000 | $ 16,751 | |
Carnival Corp. PLC, 7.625%, 3/01/2026 (n) | 120,000 | 117,450 | ||
Carnival Corp. PLC, 5.75%, 3/01/2027 (n) | 50,000 | 45,276 | ||
Carnival Corp. PLC, 6%, 5/01/2029 (n) | 15,000 | 13,463 | ||
Life Time, Inc., 5.75%, 1/15/2026 (n) | 45,000 | 43,663 | ||
Live Nation Entertainment, Inc., 5.625%, 3/15/2026 (n) | 46,000 | 45,425 | ||
NCL Corp. Ltd., 3.625%, 12/15/2024 (n) | 40,000 | 37,200 | ||
NCL Corp. Ltd., 5.875%, 3/15/2026 (n) | 35,000 | 32,333 | ||
Royal Caribbean Cruises Ltd., 5.375%, 7/15/2027 (n) | 25,000 | 22,974 | ||
Royal Caribbean Cruises Ltd., 5.5%, 4/01/2028 (n) | 70,000 | 63,875 | ||
SeaWorld Parks & Entertainment, 5.25%, 8/15/2029 (n) | 65,000 | 59,145 | ||
Viking Cruises Ltd. Co., 5.875%, 9/15/2027 (n) | 25,000 | 21,179 | ||
$ 518,734 | ||||
Financial Institutions – 1.3% | ||||
Credit Acceptance Corp., 5.125%, 12/31/2024 (n) | $ | 60,000 | $ 59,281 | |
Global Aircraft Leasing Co. Ltd., 6.5% (6.5% cash or 7.25% PIK), 9/15/2024 (n)(p) | 144,266 | 124,427 | ||
Howard Hughes Corp., 4.125%, 2/01/2029 (n) | 81,000 | 72,931 | ||
Nationstar Mortgage Holdings, Inc., 6%, 1/15/2027 (n) | 60,000 | 58,200 | ||
OneMain Finance Corp., 6.875%, 3/15/2025 | 40,000 | 40,200 | ||
OneMain Finance Corp., 8.875%, 6/01/2025 | 30,000 | 31,485 | ||
OneMain Finance Corp., 7.125%, 3/15/2026 | 25,000 | 25,312 | ||
Rocket Mortgage Co-Issuer, Inc., 3.625%, 3/01/2029 (n) | 65,000 | 55,575 | ||
$ 467,411 | ||||
Food & Beverages – 2.2% | ||||
Aramark Services, Inc., 6.375%, 5/01/2025 (n) | $ | 90,000 | $ 91,653 | |
BellRing Brands, Inc., 7%, 3/15/2030 (n) | 35,000 | 34,213 | ||
Central America Bottling Co., 5.25%, 4/27/2029 (n) | 200,000 | 190,014 | ||
JBS USA Lux S.A./JBS USA Finance, Inc., 6.75%, 2/15/2028 (n) | 54,000 | 55,756 | ||
Lamb Weston Holdings, Inc., 4.125%, 1/31/2030 (n) | 100,000 | 89,238 | ||
Performance Food Group Co., 5.5%, 10/15/2027 (n) | 70,000 | 67,930 | ||
Post Holdings, Inc., 5.625%, 1/15/2028 (n) | 59,000 | 55,784 | ||
Post Holdings, Inc., 4.625%, 4/15/2030 (n) | 75,000 | 64,125 | ||
Primo Water Holding, Inc., 4.375%, 4/30/2029 (n) | 70,000 | 60,929 | ||
U.S. Foods Holding Corp., 4.75%, 2/15/2029 (n) | 75,000 | 69,277 | ||
$ 778,919 | ||||
Gaming & Lodging – 2.7% | ||||
Boyd Gaming Corp., 4.75%, 12/01/2027 | $ | 35,000 | $ 33,080 | |
Boyd Gaming Corp., 4.75%, 6/15/2031 (n) | 25,000 | 22,608 | ||
Caesars Entertainment, Inc., 4.625%, 10/15/2029 (n) | 40,000 | 34,300 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Gaming & Lodging – continued | ||||
Caesars Resort Collection LLC/CRC Finco, Inc., 5.75%, 7/01/2025 (n) | $ | 45,000 | $ 45,956 | |
Caesars Resort Collection LLC/CRC Finco, Inc., 8.125%, 7/01/2027 (n) | 50,000 | 52,250 | ||
CCM Merger, Inc., 6.375%, 5/01/2026 (n) | 37,000 | 36,907 | ||
Hilton Domestic Operating Co., Inc., 3.75%, 5/01/2029 (n) | 80,000 | 72,482 | ||
Hilton Domestic Operating Co., Inc., 3.625%, 2/15/2032 (n) | 66,000 | 55,893 | ||
Marriott Ownership Resorts, Inc., 4.5%, 6/15/2029 (n) | 55,000 | 48,400 | ||
MGM Growth Properties LLC, 5.75%, 2/01/2027 | 25,000 | 25,750 | ||
MGM Resorts International Co., 4.75%, 10/15/2028 | 48,000 | 44,090 | ||
Scientific Games Corp., 8.625%, 7/01/2025 (n) | 10,000 | 10,475 | ||
Scientific Games Holdings LP/Scientific Games US FinCo, Inc., 6.625%, 3/01/2030 (n) | 33,000 | 31,350 | ||
Scientific Games International, Inc., 7%, 5/15/2028 (n) | 40,000 | 40,951 | ||
VICI Properties LP / VICI Note Co., Inc., 4.625%, 6/15/2025 (n) | 60,000 | 59,700 | ||
VICI Properties LP / VICI Note Co., Inc., 4.25%, 12/01/2026 (n) | 60,000 | 56,858 | ||
VICI Properties LP / VICI Note Co., Inc., 3.875%, 2/15/2029 (n) | 31,000 | 29,450 | ||
VICI Properties LP / VICI Note Co., Inc., 4.125%, 8/15/2030 (n) | 10,000 | 8,984 | ||
VICI Properties LP, REIT, 3.75%, 2/15/2027 (n) | 65,000 | 59,943 | ||
Wyndham Hotels & Resorts, Inc., 4.375%, 8/15/2028 (n) | 88,000 | 82,020 | ||
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 5.25%, 5/15/2027 (n) | 30,000 | 27,590 | ||
Wynn Macau Ltd., 5.5%, 1/15/2026 (n) | 35,000 | 30,012 | ||
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., 5.125%, 10/01/2029 (n) | 35,000 | 30,647 | ||
$ 939,696 | ||||
Industrial – 0.5% | ||||
APi Escrow Corp., 4.75%, 10/15/2029 (n) | $ | 65,000 | $ 58,500 | |
Dycom Industries, Inc., 4.5%, 4/15/2029 (n) | 40,000 | 36,500 | ||
Williams Scotsman International, Inc., 4.625%, 8/15/2028 (n) | 76,000 | 71,930 | ||
$ 166,930 | ||||
Insurance - Health – 0.1% | ||||
Centene Corp., 3%, 10/15/2030 | $ | 45,000 | $ 39,150 | |
Insurance - Property & Casualty – 0.6% | ||||
Alliant Holdings Intermediate LLC, 6.75%, 10/15/2027 (n) | $ | 90,000 | $ 85,107 | |
AssuredPartners, Inc., 5.625%, 1/15/2029 (n) | 35,000 | 30,781 | ||
GTCR (AP) Finance, Inc., 8%, 5/15/2027 (n) | 20,000 | 19,924 | ||
Hub International Ltd., 5.625%, 12/01/2029 (n) | 41,000 | 37,618 | ||
Ryan Specialty Group, 4.375%, 2/01/2030 (n) | 43,000 | 39,217 | ||
$ 212,647 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Machinery & Tools – 0.3% | ||||
Ritchie Bros. Holdings Ltd., 4.75%, 12/15/2031 (n) | $ | 60,000 | $ 60,000 | |
Terex Corp., 5%, 5/15/2029 (n) | 70,000 | 64,326 | ||
$ 124,326 | ||||
Medical & Health Technology & Services – 3.0% | ||||
Avantor Funding, Inc., 4.625%, 7/15/2028 (n) | $ | 80,000 | $ 76,103 | |
Catalent, Inc., 3.125%, 2/15/2029 (n) | 116,000 | 100,658 | ||
Charles River Laboratories International, Inc., 3.75%, 3/15/2029 (n) | 140,000 | 126,700 | ||
CHS/Community Health Systems, Inc., 8%, 12/15/2027 (n) | 30,000 | 31,079 | ||
CHS/Community Health Systems, Inc., 6.125%, 4/01/2030 (n) | 80,000 | 65,800 | ||
CHS/Community Health Systems, Inc., 5.25%, 5/15/2030 (n) | 15,000 | 13,150 | ||
DaVita, Inc., 4.625%, 6/01/2030 (n) | 40,000 | 34,800 | ||
DaVita, Inc., 3.75%, 2/15/2031 (n) | 55,000 | 44,825 | ||
Encompass Health Corp., 5.75%, 9/15/2025 | 10,000 | 10,175 | ||
HCA, Inc., 5.875%, 2/15/2026 | 50,000 | 51,775 | ||
IQVIA Holdings, Inc., 5%, 5/15/2027 (n) | 200,000 | 198,164 | ||
Legacy LifePoint Health LLC, 4.375%, 2/15/2027 (n) | 25,000 | 23,125 | ||
Regional Care/LifePoint Health, Inc., 9.75%, 12/01/2026 (n) | 45,000 | 46,240 | ||
Syneos Health, Inc., 3.625%, 1/15/2029 (n) | 89,000 | 78,734 | ||
Tenet Healthcare Corp., 6.125%, 10/01/2028 (n) | 86,000 | 82,556 | ||
U.S. Acute Care Solutions LLC, 6.375%, 3/01/2026 (n) | 50,000 | 48,562 | ||
U.S. Renal Care, Inc., 10.625%, 7/15/2027 (n) | 40,000 | 34,500 | ||
$ 1,066,946 | ||||
Medical Equipment – 0.2% | ||||
Teleflex, Inc., 4.625%, 11/15/2027 | $ | 80,000 | $ 78,400 | |
Metals & Mining – 1.8% | ||||
Baffinland Iron Mines Corp./Baffinland Iron Mines LP, 8.75%, 7/15/2026 (n) | $ | 75,000 | $ 76,219 | |
Coeur Mining, Inc., 5.125%, 2/15/2029 (n) | 59,000 | 47,348 | ||
Compass Minerals International, Inc., 6.75%, 12/01/2027 (n) | 65,000 | 65,804 | ||
Eldorado Gold Corp., 6.25%, 9/01/2029 (n) | 50,000 | 48,375 | ||
Ero Copper Corp., 6.5%, 2/15/2030 (n) | 25,000 | 22,433 | ||
FMG Resources Ltd., 4.375%, 4/01/2031 (n) | 75,000 | 66,369 | ||
GrafTech Finance, Inc., 4.625%, 12/15/2028 (n) | 52,000 | 47,463 | ||
Kaiser Aluminum Corp., 4.625%, 3/01/2028 (n) | 107,000 | 98,172 | ||
Kaiser Aluminum Corp., 4.5%, 6/01/2031 (n) | 40,000 | 34,500 | ||
Novelis Corp., 3.25%, 11/15/2026 (n) | 29,000 | 26,461 | ||
Novelis Corp., 4.75%, 1/30/2030 (n) | 65,000 | 59,782 | ||
Novelis Corp., 3.875%, 8/15/2031 (n) | 29,000 | 24,868 | ||
Petra Diamonds US$ Treasury PLC, 10.5% PIK to 12/31/2022, 10.5% PIK/9.75% Cash to 6/30/2023, 9.75% Cash to 3/08/2026 (n)(p) | 21,731 | 22,872 | ||
$ 640,666 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Midstream – 2.9% | ||||
Cheniere Energy Partners LP, 4.5%, 10/01/2029 | $ | 37,000 | $ 35,427 | |
Cheniere Energy Partners LP, 4%, 3/01/2031 | 85,000 | 76,934 | ||
DT Midstream, Inc., 4.125%, 6/15/2029 (n) | 44,000 | 40,040 | ||
DT Midstream, Inc., 4.375%, 6/15/2031 (n) | 84,000 | 75,254 | ||
EQM Midstream Partners LP, 6%, 7/01/2025 (n) | 15,000 | 14,866 | ||
EQM Midstream Partners LP, 6.5%, 7/01/2027 (n) | 5,000 | 5,050 | ||
EQM Midstream Partners LP, 5.5%, 7/15/2028 | 133,000 | 127,015 | ||
EQM Midstream Partners LP, 4.5%, 1/15/2029 (n) | 30,000 | 27,007 | ||
Genesis Energy LP/Genesis Energy Finance Corp., 6.25%, 5/15/2026 | 28,900 | 26,949 | ||
Northriver Midstream Finance LP, 5.625%, 2/15/2026 (n) | 30,000 | 29,250 | ||
Peru LNG, 5.375%, 3/22/2030 | 200,000 | 172,000 | ||
Tallgrass Energy Partners LP, 5.5%, 1/15/2028 (n) | 85,000 | 79,234 | ||
Targa Resources Partners LP/Targa Resources Finance Corp., 6.875%, 1/15/2029 | 80,000 | 84,372 | ||
Targa Resources Partners LP/Targa Resources Finance Corp., 4.875%, 2/01/2031 | 66,000 | 63,442 | ||
Targa Resources Partners LP/Targa Resources Finance Corp., 4%, 1/15/2032 | 20,000 | 18,137 | ||
Venture Global Calcasieu Pass LLC, 3.875%, 8/15/2029 (n) | 45,000 | 41,062 | ||
Venture Global Calcasieu Pass LLC, 4.125%, 8/15/2031 (n) | 50,000 | 45,375 | ||
Western Midstream Operating LP, 4.55%, 2/01/2030 | 27,000 | 24,805 | ||
Western Midstream Operation LP, 4.65%, 7/01/2026 | 20,000 | 19,725 | ||
Western Midstream Operation LP, 5.5%, 8/15/2048 | 15,000 | 13,350 | ||
$ 1,019,294 | ||||
Municipals – 0.1% | ||||
Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Control Facilities Financing Authority Rev., Taxable (Cogeneration Facilities - AES Puerto Rico Project), 9.12%, 6/01/2022 | $ | 35,000 | $ 35,875 | |
Oil Services – 0.6% | ||||
MV24 Capital B.V., 6.748%, 6/01/2034 (n) | $ | 180,614 | $ 171,159 | |
Solaris Midstream Holding LLC, 7.625%, 4/01/2026 (n) | 30,000 | 30,750 | ||
$ 201,909 | ||||
Oils – 0.4% | ||||
Parkland Corp., 4.625%, 5/01/2030 (n) | $ | 85,000 | $ 74,375 | |
PBF Holding Co. LLC/PBF Finance Corp., 7.25%, 6/15/2025 | 40,000 | 38,622 | ||
PBF Holding Co. LLC/PBF Finance Corp., 6%, 2/15/2028 | 30,000 | 26,400 | ||
$ 139,397 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Personal Computers & Peripherals – 0.3% | ||||
NCR Corp., 5%, 10/01/2028 (n) | $ | 70,000 | $ 66,850 | |
NCR Corp., 5.125%, 4/15/2029 (n) | 35,000 | 33,337 | ||
$ 100,187 | ||||
Pharmaceuticals – 1.2% | ||||
Bausch Health Companies, Inc., 6.125%, 4/15/2025 (n) | $ | 122,000 | $ 122,359 | |
Bausch Health Companies, Inc., 5%, 1/30/2028 (n) | 105,000 | 77,455 | ||
Bausch Health Companies, Inc., 5%, 2/15/2029 (n) | 30,000 | 21,098 | ||
Organon Finance 1 LLC, 4.125%, 4/30/2028 (n) | 200,000 | 186,060 | ||
$ 406,972 | ||||
Pollution Control – 0.4% | ||||
GFL Environmental, Inc., 4.25%, 6/01/2025 (n) | $ | 20,000 | $ 19,398 | |
GFL Environmental, Inc., 4%, 8/01/2028 (n) | 55,000 | 48,400 | ||
GFL Environmental, Inc., 4.75%, 6/15/2029 (n) | 20,000 | 18,150 | ||
GFL Environmental, Inc., 4.375%, 8/15/2029 (n) | 25,000 | 22,180 | ||
Stericycle, Inc., 3.875%, 1/15/2029 (n) | 46,000 | 40,565 | ||
$ 148,693 | ||||
Precious Metals & Minerals – 0.2% | ||||
IAMGOLD Corp., 5.75%, 10/15/2028 (n) | $ | 50,000 | $ 42,537 | |
Taseko Mines Ltd., 7%, 2/15/2026 (n) | 35,000 | 34,738 | ||
$ 77,275 | ||||
Printing & Publishing – 0.4% | ||||
Cimpress N.V., 7%, 6/15/2026 (n) | $ | 150,000 | $ 139,875 | |
Real Estate - Other – 0.4% | ||||
Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer, REIT, 5.875%, 10/01/2028 (n) | $ | 80,000 | $ 77,600 | |
XHR LP, REIT, 4.875%, 6/01/2029 (n) | 55,000 | 50,647 | ||
$ 128,247 | ||||
Restaurants – 0.1% | ||||
Fertitta Entertainment LLC, 6.75%, 1/15/2030 (n) | $ | 35,000 | $ 30,279 | |
Retailers – 0.6% | ||||
Asbury Automotive Group, Inc., 4.625%, 11/15/2029 (n) | $ | 39,000 | $ 35,105 | |
Bath & Body Works, Inc., 5.25%, 2/01/2028 | 135,000 | 129,600 | ||
Victoria's Secret & Co., 4.625%, 7/15/2029 (n) | 55,000 | 45,120 | ||
$ 209,825 | ||||
Specialty Chemicals – 0.2% | ||||
Univar Solutions USA, Inc., 5.125%, 12/01/2027 (n) | $ | 60,000 | $ 57,515 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Specialty Stores – 0.5% | ||||
Group 1 Automotive, Inc., 4%, 8/15/2028 (n) | $ | 54,000 | $ 48,585 | |
Michael Cos., Inc., 5.25%, 5/01/2028 (n) | 30,000 | 25,783 | ||
Michael Cos., Inc., 7.875%, 5/01/2029 (n) | 40,000 | 31,500 | ||
Penske Automotive Group Co., 3.75%, 6/15/2029 | 79,000 | 67,372 | ||
$ 173,240 | ||||
Supermarkets – 0.3% | ||||
Albertsons Cos. LLC/Safeway, Inc., 4.625%, 1/15/2027 (n) | $ | 85,000 | $ 79,617 | |
Albertsons Cos. LLC/Safeway, Inc., 3.5%, 3/15/2029 (n) | 50,000 | 42,120 | ||
$ 121,737 | ||||
Telecommunications - Wireless – 2.7% | ||||
Altice France S.A., 6%, 2/15/2028 (n) | $ | 200,000 | $ 165,166 | |
Digicel International Finance Ltd., 8.75%, 5/25/2024 (n) | 200,000 | 197,404 | ||
Millicom International Cellular S.A., 4.5%, 4/27/2031 (n) | 200,000 | 173,105 | ||
SBA Communications Corp., 3.875%, 2/15/2027 | 55,000 | 52,206 | ||
SBA Communications Corp., 3.125%, 2/01/2029 | 95,000 | 81,486 | ||
Sprint Capital Corp., 6.875%, 11/15/2028 | 80,000 | 87,807 | ||
Sprint Corp., 7.125%, 6/15/2024 | 25,000 | 26,313 | ||
Sprint Corp., 7.625%, 3/01/2026 | 120,000 | 130,342 | ||
T-Mobile USA, Inc., 2.625%, 4/15/2026 | 45,000 | 41,737 | ||
$ 955,566 | ||||
Tobacco – 0.2% | ||||
Vector Group Ltd., 10.5%, 11/01/2026 (n) | $ | 25,000 | $ 25,517 | |
Vector Group Ltd., 5.75%, 2/01/2029 (n) | 35,000 | 30,713 | ||
$ 56,230 | ||||
Utilities - Electric Power – 3.1% | ||||
Adani Green Energy (UP) Ltd./Prayatna Developers Private Ltd., 6.25%, 12/10/2024 (n) | $ | 200,000 | $ 202,080 | |
Calpine Corp., 4.5%, 2/15/2028 (n) | 73,000 | 67,578 | ||
Calpine Corp., 5.125%, 3/15/2028 (n) | 75,000 | 68,128 | ||
Clearway Energy Operating LLC, 4.75%, 3/15/2028 (n) | 35,000 | 33,075 | ||
Clearway Energy Operating LLC, 3.75%, 2/15/2031 (n) | 115,000 | 98,900 | ||
Investment Energy Resources Ltd., 6.25%, 4/26/2029 (n) | 200,000 | 197,300 | ||
Mercury Chile Holdco LLC, 6.5%, 1/24/2027 (n) | 200,000 | 188,930 | ||
NextEra Energy, Inc., 4.25%, 7/15/2024 (n) | 35,000 | 34,744 | ||
NextEra Energy, Inc., 4.25%, 9/15/2024 (n) | 10,000 | 9,825 | ||
NextEra Energy, Inc., 4.5%, 9/15/2027 (n) | 50,000 | 47,361 | ||
TerraForm Global Operating LLC, 6.125%, 3/01/2026 (n) | 40,000 | 39,300 | ||
TerraForm Power Operating LLC, 5%, 1/31/2028 (n) | 95,000 | 88,721 |
Issuer | Shares/Par | Value ($) | ||
Bonds – continued | ||||
Utilities - Electric Power – continued | ||||
TerraForm Power Operating LLC, 4.75%, 1/15/2030 (n) | $ | 25,000 | $ 22,500 | |
$ 1,098,442 | ||||
Total Bonds (Identified Cost, $20,433,411) | $ 18,623,607 | |||
Common Stocks – 44.0% | ||||
Aerospace & Defense – 3.6% | ||||
Honeywell International, Inc. | 2,736 | $ 529,443 | ||
Northrop Grumman Corp. | 1,695 | 744,783 | ||
$ 1,274,226 | ||||
Brokerage & Asset Managers – 3.3% | ||||
BlackRock, Inc. | 878 | $ 548,469 | ||
NASDAQ, Inc. | 3,890 | 612,169 | ||
$ 1,160,638 | ||||
Business Services – 2.8% | ||||
Accenture PLC, “A” | 1,360 | $ 408,489 | ||
Equifax, Inc. (f) | 2,782 | 566,193 | ||
$ 974,682 | ||||
Cable TV – 1.8% | ||||
Comcast Corp., “A” | 15,576 | $ 619,302 | ||
Intelsat Emergence S.A. (a) | 705 | 21,502 | ||
$ 640,804 | ||||
Construction – 1.5% | ||||
ICA Tenedora, S.A. de C.V. (u) | 10,542 | $ 8,782 | ||
Sherwin-Williams Co. | 1,960 | 538,922 | ||
$ 547,704 | ||||
Electronics – 2.2% | ||||
Texas Instruments, Inc. | 4,562 | $ 776,680 | ||
Food & Beverages – 1.8% | ||||
Nestle S.A., ADR | 5,034 | $ 647,574 | ||
Gaming & Lodging – 1.2% | ||||
Marriott International, Inc., “A” | 2,334 | $ 414,332 | ||
Health Maintenance Organizations – 1.7% | ||||
Cigna Corp. | 2,490 | $ 614,482 |
Issuer | Shares/Par | Value ($) | ||
Common Stocks – continued | ||||
Insurance – 5.5% | ||||
Aon PLC | 2,190 | $ 630,698 | ||
Marsh & McLennan Cos., Inc. | 3,672 | 593,763 | ||
Progressive Corp. | 6,567 | 705,033 | ||
$ 1,929,494 | ||||
Machinery & Tools – 1.7% | ||||
Illinois Tool Works, Inc. | 3,087 | $ 608,479 | ||
Major Banks – 3.4% | ||||
JPMorgan Chase & Co. | 4,741 | $ 565,886 | ||
Morgan Stanley | 7,750 | 624,572 | ||
$ 1,190,458 | ||||
Medical Equipment – 1.6% | ||||
Thermo Fisher Scientific, Inc. | 1,001 | $ 553,473 | ||
Oil Services – 0.0% | ||||
LTRI Holdings LP (a)(u) | 60 | $ 17,255 | ||
Other Banks & Diversified Financials – 2.6% | ||||
American Express Co. | 3,439 | $ 600,828 | ||
Citigroup, Inc. | 6,793 | 327,490 | ||
$ 928,318 | ||||
Pharmaceuticals – 2.0% | ||||
Johnson & Johnson | 3,847 | $ 694,230 | ||
Special Products & Services – 1.2% | ||||
iShares iBoxx $ High Yield Corporate Bond ETF | 5,200 | $ 408,356 | ||
Utilities - Electric Power – 6.1% | ||||
Dominion Energy, Inc. | 8,297 | $ 677,367 | ||
Duke Energy Corp. | 6,555 | 722,099 | ||
Southern Co. | 10,317 | 757,165 | ||
$ 2,156,631 | ||||
Total Common Stocks (Identified Cost, $9,719,948) | $ 15,537,816 |
Contingent Value Rights – 0.0% | ||||
Cable TV – 0.0% | ||||
Intelsat Jackson Holdings S.A. - Series A, 12/05/2025 (a) | 73 | $ 383 | ||
Intelsat Jackson Holdings S.A. - Series B, 12/05/2025 (a) | 73 | 347 | ||
Total Contingent Value Rights (Identified Cost, $0) | $ 730 |
Issuer | Shares/Par | Value ($) | ||
Investment Companies (h) – 2.5% | ||||
Money Market Funds – 2.5% | ||||
MFS Institutional Money Market Portfolio, 0.28% (v) (Identified Cost, $879,967) | 880,004 | $ 880,004 | ||
Other Assets, Less Liabilities – 0.8% | 278,208 | |||
Net Assets – 100.0% | $35,320,365 |
(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. |
(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 $880,004 and $34,162,153, respectively. |
(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 $15,469,120, representing 43.8% 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. |
(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 |
Paysafe Finance PLC, 4%, 6/15/2029 | 6/10/21-9/09/21 | $54,846 | $44,825 |
% of Net assets | 0.1% |
The following abbreviations are used in this report and are defined: | |
ADR | American Depositary Receipt |
ETF | Exchange-Traded Fund |
REIT | Real Estate Investment Trust |
Futures Contracts | ||||||
Description | Long/ Short | Currency | Contracts | Notional Amount | Expiration Date | Value/Unrealized Appreciation (Depreciation) |
Asset Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Note 10 yr | Short | USD | 4 | $476,625 | June – 2022 | $28,235 |
Liability Derivatives | ||||||
Interest Rate Futures | ||||||
U.S. Treasury Bond | Long | USD | 1 | $140,687 | June – 2022 | $(13,346) |
Assets | |
Investments in unaffiliated issuers, at value (identified cost, $30,153,359) | $34,162,153 |
Investments in affiliated issuers, at value (identified cost, $879,967) | 880,004 |
Cash | 28 |
Receivables for | |
Net daily variation margin on open futures contracts | 285 |
Investments sold | 80,111 |
Interest and dividends | 317,701 |
Other assets | 16,266 |
Total assets | $35,456,548 |
Liabilities | |
Payables for | |
Investments purchased | $72,562 |
Payable to affiliates | |
Investment adviser | 2,655 |
Administrative services fee | 144 |
Transfer agent and dividend disbursing costs | 378 |
Payable for independent Trustees' compensation | 406 |
Accrued expenses and other liabilities | 60,038 |
Total liabilities | $136,183 |
Net assets | $35,320,365 |
Net assets consist of | |
Paid-in capital | $32,112,667 |
Total distributable earnings (loss) | 3,207,698 |
Net assets | $35,320,365 |
Shares of beneficial interest outstanding | 7,290,542 |
Net asset value per share (net assets of $35,320,365 / 7,290,542 shares of beneficial interest outstanding) | $4.84 |
Net investment income (loss) | |
Income | |
Interest | $523,067 |
Dividends | 177,757 |
Other | 732 |
Dividends from affiliated issuers | 574 |
Foreign taxes withheld | (2,298) |
Total investment income | $699,832 |
Expenses | |
Management fee | $153,988 |
Transfer agent and dividend disbursing costs | 7,364 |
Administrative services fee | 8,679 |
Independent Trustees' compensation | 1,935 |
Stock exchange fee | 11,853 |
Custodian fee | 2,054 |
Shareholder communications | 19,828 |
Audit and tax fees | 39,839 |
Legal fees | 495 |
Miscellaneous | 21,312 |
Total expenses | $267,347 |
Net investment income (loss) | $432,485 |
Realized and unrealized gain (loss) | |
Realized gain (loss) (identified cost basis) | |
Unaffiliated issuers | $854,866 |
Futures contracts | 8,417 |
Net realized gain (loss) | $863,283 |
Change in unrealized appreciation or depreciation | |
Unaffiliated issuers | $(4,237,809) |
Futures contracts | 14,889 |
Net unrealized gain (loss) | $(4,222,920) |
Net realized and unrealized gain (loss) | $(3,359,637) |
Change in net assets from operations | $(2,927,152) |
Six months ended | Year ended | |
4/30/22 (unaudited) | 10/31/21 | |
Change in net assets | ||
From operations | ||
Net investment income (loss) | $432,485 | $904,011 |
Net realized gain (loss) | 863,283 | 1,770,734 |
Net unrealized gain (loss) | (4,222,920) | 3,901,052 |
Change in net assets from operations | $(2,927,152) | $6,575,797 |
Distributions to shareholders | $(1,299,524) | $(2,685,418) |
Tax return of capital distributions to shareholders | $— | $(1,287,948) |
Distributions from other sources | $(640,125) | $— |
Change in net assets from fund share transactions | $125,292 | $257,913 |
Total change in net assets | $(4,741,509) | $2,860,344 |
Net assets | ||
At beginning of period | 40,061,874 | 37,201,530 |
At end of period | $35,320,365 | $40,061,874 |
Six months ended | Year ended | |||||
4/30/22 (unaudited) | 10/31/21 | 10/31/20 | 10/31/19 | 10/31/18 | 10/31/17 | |
Net asset value, beginning of period | $5.51 | $5.15 | $5.60 | $5.43 | $6.03 | $5.91 |
Income (loss) from investment operations | ||||||
Net investment income (loss) (d) | $0.06 | $0.12 | $0.15 | $0.16 | $0.16 | $0.20(c) |
Net realized and unrealized gain (loss) | (0.46) | 0.79 | (0.07) | 0.56 | (0.18) | 0.52 |
Total from investment operations | $(0.40) | $0.91 | $0.08 | $0.72 | $(0.02) | $0.72 |
Less distributions declared to shareholders | ||||||
From net investment income | $(0.18) | $(0.16) | $(0.16) | $(0.17) | $(0.18) | $(0.21) |
From net realized gain | — | (0.21) | (0.36) | (0.03) | (0.11) | — |
From tax return of capital | — | (0.18) | (0.01) | (0.35) | (0.29) | (0.39) |
From other sources | (0.09) | — | — | — | — | — |
Total distributions declared to shareholders | $(0.27) | $(0.55) | $(0.53) | $(0.55) | $(0.58) | $(0.60) |
Net increase from repurchase of capital shares | $— | $— | $0.00(w) | $— | $— | $0.00(w) |
Net asset value, end of period (x) | $4.84 | $5.51 | $5.15 | $5.60 | $5.43 | $6.03 |
Market value, end of period | $5.95 | $6.77 | $5.25 | $6.48 | $5.49 | $6.66 |
Total return at market value (%) (j)(r)(s)(x) | (8.17)(n) | 41.18 | (10.63) | 30.24 | (8.87) | 33.86 |
Total return at net asset value (%) | (8.22)(n) | 17.13 | 1.44 | 13.80 | (0.44) | 12.79(c) |
Ratios (%) (to average net assets) and Supplemental data: | ||||||
Expenses | 1.41(a) | 1.38 | 1.44 | 1.41 | 1.39 | 1.23(c) |
Net investment income (loss) | 2.28(a) | 2.27 | 2.76 | 2.89 | 2.76 | 3.35(c) |
Portfolio turnover | 13(n) | 38 | 48 | 34 | 33 | 35 |
Net assets at end of period (000 omitted) | $35,320 | $40,062 | $37,202 | $40,258 | $38,834 | $42,842 |
(a) | Annualized. |
(c) | Amount reflects a one-time reimbursement of expenses by the custodian (or former custodian) without which net investment income and performance would be lower and expenses would be higher. |
(d) | Per share data is based on average shares outstanding. |
(j) | Total return at net asset value is calculated using the net asset value of the fund, not the publicly traded price and therefore may be different than the total return at market value. |
(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. |
(w) | Per share amount was less than $0.01. |
(x) | The net asset values and total returns at net asset value 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. |
Financial Instruments | Level 1 | Level 2 | Level 3 | Total |
Equity Securities: | ||||
United States | $14,842,703 | $— | $17,255 | $14,859,958 |
Switzerland | 647,574 | — | — | 647,574 |
Luxembourg | — | 21,502 | — | 21,502 |
Mexico | — | — | 8,782 | 8,782 |
Non - U.S. Sovereign Debt | — | 410,013 | — | 410,013 |
Municipal Bonds | — | 35,875 | — | 35,875 |
U.S. Corporate Bonds | — | 14,232,905 | — | 14,232,905 |
Foreign Bonds | — | 3,945,544 | — | 3,945,544 |
Mutual Funds | 880,004 | — | — | 880,004 |
Total | $16,370,281 | $18,645,839 | $26,037 | $35,042,157 |
Other Financial Instruments | ||||
Futures Contracts – Assets | $28,235 | $— | $— | $28,235 |
Futures Contracts – Liabilities | (13,346) | — | — | (13,346) |
Equity Securities | |
Balance as of 10/31/21 | $25,960 |
Change in unrealized appreciation or depreciation | 77 |
Balance as of 4/30/22 | $26,037 |
Fair Value (a) | |||
Risk | Derivative Contracts | Asset Derivatives | Liability Derivatives |
Interest Rate | Futures Contracts | $28,235 | $(13,346) |
(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 separately reported within the Statement of Assets and Liabilities. |
Risk | Futures Contracts |
Interest Rate | $8,417 |
Risk | Futures Contracts |
Interest Rate | $14,889 |
Year ended 10/31/21 | |
Ordinary income (including any short-term capital gains) | $1,196,180 |
Long-term capital gains | 1,489,238 |
Tax return of capital (b) | 1,287,948 |
Total distributions | $3,973,366 |
(b) | Distributions in excess of tax basis earnings and profits are reported in the financial statements as a tax return of capital. |
As of 4/30/22 | |
Cost of investments | $31,198,074 |
Gross appreciation | 5,932,630 |
Gross depreciation | (2,088,547) |
Net unrealized appreciation (depreciation) | $ 3,844,083 |
As of 10/31/21 | |
Other temporary differences | (22,262) |
Net unrealized appreciation (depreciation) | 8,096,761 |
Six months ended 4/30/22 | Year ended 10/31/21 | ||||
Shares | Amount | Shares | Amount | ||
Shares issued to shareholders in reinvestment of distributions | 20,709 | $125,292 | 42,753 | $257,913 |
Affiliated Issuers | Beginning Value | Purchases | Sales Proceeds | Realized Gain (Loss) | Change in Unrealized Appreciation or Depreciation | Ending Value |
MFS Institutional Money Market Portfolio | $1,152,155 | $3,262,783 | $3,534,934 | $— | $— | $880,004 |
Affiliated Issuers | Dividend Income | Capital Gain Distributions |
MFS Institutional Money Market Portfolio | $574 | $— |
June 15, 2022
DIVIDEND DISBURSING AGENT
Item 1(b): |
A copy of the notice transmitted to the Registrant’s shareholders in reliance on Rule 30e-3 of the Investment Company Act of 1940, as amended that contains disclosure specified by paragraph (c)(3) of Rule 30e-3 is attached hereto as EX-99.30e-3Notice.
ITEM 2. | CODE OF ETHICS. |
During the period covered by this report, the Registrant has not amended any provision in its Code of Ethics (the “Code”) that relates to an element of the Code’s definitions enumerated in paragraph (b) of Item 2 of this Form N-CSR. During the period covered by this report, the Registrant did not grant a waiver, including an implicit waiver, from any provision of the Code.
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. |
Not applicable for semi-annual reports.
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
Not applicable for semi-annual reports.
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. |
Not applicable for semi-annual reports.
ITEM 6. | SCHEDULE OF INVESTMENTS |
A schedule of investments for MFS Special Value Trust is included as part of the report to shareholders under Item 1(a) of this Form N-CSR.
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable for semi-annual reports.
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
There were no changes during the period.
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. |
MFS Special Value Trust
Period | (a) Total number of Shares Purchased | (b) Average Price Paid per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased under the Plans or Programs | ||||||||||||
11/01/21-11/30/21 | 0 | N/A | 0 | 726,642 | ||||||||||||
12/01/21-12/31/21 | 0 | N/A | 0 | 726,642 | ||||||||||||
1/01/22-1/31/22 | 0 | N/A | 0 | 726,642 | ||||||||||||
2/01/22-2/28/22 | 0 | N/A | 0 | 726,642 | ||||||||||||
3/01/22-3/31/22 | 0 | N/A | 0 | 726,642 | ||||||||||||
4/01/22-4/30/22 | 0 | N/A | 0 | 726,642 | ||||||||||||
|
|
|
|
|
| |||||||||||
Total | 0 | N/A | 0 | |||||||||||||
|
|
|
|
|
|
Note: The Board approved procedures to repurchase shares and reviews the results periodically. The notification to shareholders of the program is part of the semi-annual and annual reports sent to shareholders. These annual programs begin on October 1st of each year. The programs conform to the conditions of Rule 10b-18 of the Securities Exchange Act of 1934 and limit the aggregate number of shares that may be purchased in each annual period (October 1 through the following September 30) to 10% of the Registrant’s outstanding shares as of the first day of the plan year (October 1). The aggregate number of shares available for purchase for the October 1, 2021 plan year is 726,642.
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There were no material changes to the procedures by which shareholders may send recommendations to the Board for nominees to the Registrant’s Board since the Registrant last provided disclosure as to such procedures in response to the requirements of Item 407 (c)(2)(iv) of Regulation S-K or this Item.
ITEM 11. | CONTROLS AND PROCEDURES. |
(a) | Based upon their evaluation 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-CSR, 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 period covered by the report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
ITEM 12. | DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable for semi-annual reports.
ITEM 13. | EXHIBITS. |
(a) | File the exhibits listed below as part of this form. Letter or number the exhibits in the sequence indicated. |
(1) | Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit. Not applicable. |
(2) | 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 as EX-99.302CERT. |
(3) | Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable. |
(4) | Change in the registrant’s independent public accountant. Not applicable. |
(b) | If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for the purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference: Attached hereto as EX-99.906CERT. |
(c) | Registrant’s Rule 30e-3 Notice pursuant to Item 1(b) of Form N-CSR. Attached hereto as EX-99.30e-3Notice. |
(d) | Notices to Trust’s common shareholders in accordance with Investment Company Act Section 19(a) and Rule 19a-1. Attached hereto as EX-99.19a-1. |
Notice
A copy of the Amended and Restated Declaration of Trust 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 SPECIAL VALUE TRUST
By (Signature and Title)* | /S/ DAVID L. DILORENZO | |
David L. DiLorenzo, President |
Date: June 15, 2022
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)* | /S/ DAVID L. DILORENZO | |
David L. DiLorenzo, President (Principal Executive Officer) |
Date: June 15, 2022
By (Signature and Title)* | /S/ JAMES O. YOST | |
James O. Yost, Treasurer (Principal Financial Officer and Accounting Officer) |
Date: June 15, 2022
* | Print name and title of each signing officer under his or her signature. |