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. |
Semiannual Report
April 30, 2022
MANAGED DISTRIBUTION POLICY DISCLOSURE
The MFS Special Value Trust’s (the fund) Board of Trustees adopted a managed distribution policy. The fund seeks to pay monthly distributions based on an annual rate of 10.00% of the fund’s average monthly net asset value. The primary purpose of the managed distribution policy is to provide shareholders with a constant, but not guaranteed, fixed rate of distribution each month. You should not draw any conclusions about the fund’s investment performance from the amount of the current distribution or from the terms of the fund’s managed distribution policy. The Board may amend or terminate the managed distribution policy at any time without prior notice to fund shareholders. The amendment or termination of the managed distribution policy could have an adverse effect on the market price of the fund’s shares.
With each distribution, the fund will issue a notice to shareholders and an accompanying press release which will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to shareholders are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. Please refer to “Tax Matters and Distributions” under Note 2 of the Notes to Financial Statements for information regarding the tax character of the fund’s distributions.
Under a managed distribution policy the fund may at times distribute more than its net investment income and net realized capital gains; therefore, a portion of your distribution may result in a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the fund is paid back to you. Any such returns of capital will decrease the fund’s total assets and, therefore, could have the effect of increasing the fund’s expense ratio. In addition, in order to make the level of distributions called for under its managed distribution policy, the fund may have to sell portfolio securities at a less than opportune time. A return of capital does not necessarily reflect the fund’s investment performance and should not be confused with ‘yield’ or ‘income’. The fund’s total return in relation to changes in net asset value is presented in the Financial Highlights.
New York Stock Exchange Symbol: MFV
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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, the continued spread of the coronavirus (particularly in Asia), and the evolving geopolitical landscape in the wake of Russia’s invasion of Ukraine. 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 US Federal Reserve has hiked rates at consecutive meetings for the first time since 2006 and raised rates by more than 0.25% for the first time since 2000. Additional half-point hikes are expected at the Fed’s next two meetings as it seeks to adopt a neutral monetary policy stance before the end of the year. Richly valued growth equities have been hit particularly hard by higher interest rates, and volatility in credit markets has picked up too.
There are, however, encouraging signs for the markets. The number of coronavirus cases outside of Asia remains well below prior peaks, and fewer are seriously ill. Meanwhile, unemployment is low and there are signs that some global supply chain bottlenecks are beginning to ease, though lockdowns 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 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, guided by a commitment to long-term fundamental investing, seeks to uncover what we believe are the best, most durable investment ideas in markets around the world. The result — combining collective expertise, long-term discipline, and thoughtful risk management — is what we consider to be a unique global investment platform that enables us to create value for investors.
Respectfully,
Michael W. Roberge
Chair and Chief Executive Officer
MFS Investment Management
June 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.
Portfolio structure (i)
Top ten holdings (i)
| 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% |
GICS equity sectors (g)
| 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% |
Fixed income sectors (i)
| 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)% |
Composition including fixed income credit quality (a)(i)
| 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% |
Portfolio Composition - continued
| (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. |
Where the fund holds convertible bonds, they are treated as part of the equity portion of the portfolio.
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.
Other includes equivalent exposure from currency derivatives and/or any offsets to derivative positions and may be negative.
Percentages are based on net assets as of April 30, 2022.
The portfolio is actively managed and current holdings may be different.
Portfolio Managers' Profiles
| 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. |
Other Notes
The fund’s shares may trade at a discount or premium to net asset value. When fund shares trade at a premium, buyers pay more than the net asset value underlying fund shares, and shares purchased at a premium would receive less than the amount paid for them in the event of the fund’s concurrent liquidation.
The fund's target annual distribution rate is calculated based on an annual rate of 10.00% of the fund's average monthly net asset value, not a fixed share price, and the fund's dividend amount will fluctuate with changes in the fund's average monthly net assets.
In accordance with Section 23(c) of the Investment Company Act of 1940, the fund hereby gives notice that it may from time to time repurchase shares of the fund in the open market at the option of the Board of Trustees and on such terms as the Trustees shall determine.
Portfolio of Investments
4/30/22 (unaudited)
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 – 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 |
Portfolio of Investments (unaudited) – continued
| 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 |
Portfolio of Investments (unaudited) – continued
| 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 |
Portfolio of Investments (unaudited) – continued
| 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 |
Portfolio of Investments (unaudited) – continued
| 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 |
Portfolio of Investments (unaudited) – continued
| 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 |
Portfolio of Investments (unaudited) – continued
| 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 |
Portfolio of Investments (unaudited) – continued
| 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 |
Portfolio of Investments (unaudited) – continued
| 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 |
Portfolio of Investments (unaudited) – continued
| 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 |
Portfolio of Investments (unaudited) – continued
| 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 |
Portfolio of Investments (unaudited) – continued
| 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 |
Portfolio of Investments (unaudited) – continued
| 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 |
Portfolio of Investments (unaudited) – continued
| 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 |
Portfolio of Investments (unaudited) – continued
Derivative Contracts at 4/30/22
| 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) |
At April 30, 2022, the fund had liquid securities with an aggregate value of $6,716 to cover any collateral or margin obligations for certain derivative contracts.
See Notes to Financial Statements
Financial Statements
Statement of Assets and Liabilities
At 4/30/22 (unaudited)
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, $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 |
See Notes to Financial Statements
Financial Statements
Statement of Operations
Six months ended 4/30/22 (unaudited)
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 | $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) |
See Notes to Financial Statements
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.
| | 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 |
See Notes to Financial Statements
Financial Statements
Financial Highlights
The financial highlights table is intended to help you understand the fund's financial performance for the semiannual period and the past 5 fiscal years. 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.
| | 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 |
See Notes to Financial Statements
Financial Highlights – continued
| (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. |
See Notes to Financial Statements
Notes to Financial Statements
(unaudited)
(1) Business and Organization
MFS Special Value Trust (the fund) is organized as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as a diversified closed-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.
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 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 — 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
Notes to Financial Statements (unaudited) - continued
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.
Open-end investment companies are generally valued at net asset value per share.
Securities and other assets generally valued on the basis of information from a third-party pricing service may also be valued at a broker/dealer bid quotation. 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, and other market data. The values of foreign securities and other assets and liabilities expressed in foreign currencies are converted to U.S. dollars using the mean of bid and asked prices for rates provided by a third-party pricing service.
The Board of Trustees has delegated primary responsibility for determining or causing to be determined the value of the fund’s investments (including any fair valuation) to the adviser pursuant to valuation policies and procedures approved by the Board. If the adviser determines that reliable market quotations are not readily available, investments are valued at fair value as determined in good faith by the adviser in accordance with such procedures under the oversight of the Board of Trustees. Under the fund’s valuation policies and procedures, market quotations are not considered to be readily available for most types of debt instruments and floating rate loans and many types of derivatives. These investments are generally valued at fair value based on information from third-party pricing services. In addition, investments may be valued at fair value if the adviser determines that an investment’s value has been materially affected by events occurring after the close of the exchange or market on which the investment is principally traded (such as foreign exchange or market) and prior to the determination of the fund’s net asset value, or after the 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. Events that occur after foreign markets close (such as developments in foreign markets and significant movements in the U.S. markets) and prior to the determination of the fund’s net asset value may be deemed to have a material effect on the value of securities traded in foreign markets. Accordingly, the fund’s foreign equity securities may often be valued at fair value. The adviser generally relies on third-party pricing services or other information (such as the correlation with price movements of similar securities in the same or other markets; the type, cost and investment characteristics of the security; the business and financial condition of the issuer; and trading and other market data) to assist in determining whether to fair value and at what value to fair value an investment. The value of an investment for purposes of calculating the fund’s net asset value can differ depending on the source and method used to determine value. When fair valuation is used, the value of an investment used to determine the fund’s net asset value may differ from quoted or published prices for the same investment. There can be no assurance that the fund could obtain the fair value assigned to an investment if it were to sell the investment at the same time at which the fund determines its net asset value per share.
Various inputs are used in determining the value of the fund's assets or liabilities. These inputs are categorized into three broad levels. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fund's assessment of the
Notes to Financial Statements (unaudited) - continued
significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. Level 1 includes unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include the adviser's own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments, such as futures contracts. The following is a summary of the levels used as of April 30, 2022 in valuing the fund's assets and liabilities:
| 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) |
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 | $25,960 |
| Change in unrealized appreciation or depreciation | 77 |
| Balance as of 4/30/22 | $26,037 |
The net change in unrealized appreciation or depreciation from investments held as level 3 at April 30, 2022 is $77. At April 30, 2022, the fund held two level 3 securities.
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 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.
Notes to Financial Statements (unaudited) - continued
The derivative instruments used by the fund during the period were futures 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.
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 April 30, 2022 as reported in the Statement of Assets and Liabilities:
| | | 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. |
The following table presents, by major type of derivative contract, the realized gain (loss) on derivatives held by the fund for the six months ended April 30, 2022 as reported in the Statement of Operations:
| Risk | Futures
Contracts |
| Interest Rate | $8,417 |
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 six months ended April 30, 2022 as reported in the Statement of Operations:
| Risk | Futures
Contracts |
| Interest Rate | $14,889 |
Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain, but not all, uncleared derivatives, the fund attempts to reduce its exposure to counterparty credit risk whenever possible by entering into an ISDA Master Agreement on a bilateral basis. The ISDA Master Agreement gives each party to the agreement the right to terminate all transactions traded under such agreement if there is a specified deterioration in the credit quality of the other party. Upon an event of default or a termination of the ISDA Master Agreement, the non-defaulting party has the right to close out all transactions traded under such agreement and to net amounts owed under each agreement to one net amount payable by one party to the other. This right to close out and net payments across all transactions traded under the ISDA Master Agreement could result in a reduction of the fund's credit risk to such counterparty equal to any amounts payable by the fund under the applicable transactions, if any.
Notes to Financial Statements (unaudited) - continued
Collateral and margin requirements differ by type of derivative. For cleared derivatives (e.g., futures contracts, cleared swaps, and exchange-traded options), margin requirements are set by the clearing broker and the clearing house and collateral, in the form of cash or securities, is posted by the fund directly with the clearing broker. Collateral terms are counterparty agreement specific for uncleared derivatives (e.g., forward foreign currency exchange contracts, uncleared swap agreements, and uncleared options) and collateral, in the form of cash and securities, is held in segregated accounts with the fund's custodian in connection with these agreements. For derivatives traded under an ISDA Master Agreement, which contains a collateral support annex, the collateral requirements are netted across all transactions traded under such counterparty-specific agreement and an amount is posted from one party to the other to collateralize such obligations. Cash that has been segregated or delivered to cover the fund's collateral or margin obligations under derivative contracts, if any, will be reported separately in the Statement of Assets and Liabilities as restricted cash for uncleared derivatives and/or deposits with brokers for cleared derivatives. Securities pledged as collateral or margin for the same purpose, if any, are noted in the Portfolio of Investments. The fund may be required to make payments of interest on uncovered collateral or margin obligations with the broker. Any such payments are included in “Miscellaneous” expense in the Statement of Operations.
Futures Contracts — The fund entered into futures contracts which may be used to hedge against or obtain broad market exposure, interest rate exposure, currency exposure, or to manage duration. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date.
Upon entering into a futures contract, the fund is required to deposit with the broker, either in cash or securities, an initial margin in an amount equal to a specified percentage of the notional amount of the contract. Subsequent payments (variation margin) are made or received by the fund each day, depending on the daily fluctuations in the value of the contract, and are recorded for financial statement purposes as unrealized gain or loss by the fund until the contract is closed or expires at which point the gain or loss on futures contracts is realized.
The fund bears the risk of interest rates, exchange rates or securities prices moving unexpectedly, in which case, the fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. While futures contracts may present less counterparty risk to the fund since the contracts are exchange traded and the exchange’s clearinghouse guarantees payments to the broker, there is still counterparty credit risk due to the insolvency of the broker. The fund’s maximum risk of loss due to counterparty credit risk is equal to the margin posted by the fund to the broker plus any gains or minus any losses on the outstanding futures contracts.
Loans and Other Direct Debt Instruments — The fund invests in loans and loan participations or other receivables. These investments may include standby financing commitments, including revolving credit facilities, which contractually obligate the fund to supply additional cash to the borrower on demand. The fund generally provides this financial support in order to preserve its existing investment or to obtain a more senior secured interest in the assets of the borrower. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary.
Indemnifications — Under the fund's organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the fund. Additionally, in the normal course of business,
Notes to Financial Statements (unaudited) - continued
the fund enters into agreements with service providers that may contain indemnification clauses. The fund's maximum exposure under these agreements is unknown as this would involve future claims that may be made against the fund that have not yet occurred.
Investment Transactions and Income — Investment transactions are recorded on the trade date. Interest income is recorded on the accrual basis. All premium and discount is amortized or accreted for financial statement purposes in accordance with U.S. generally accepted accounting principles. Dividends received in cash are recorded on the ex-dividend date. Certain dividends from foreign securities will be recorded when the fund is informed of the dividend if such information is obtained subsequent to the ex-dividend date. Dividend and interest payments received in additional securities are recorded on the ex-dividend or ex-interest date in an amount equal to the value of the security on such date. In determining the net gain or loss on securities sold, the cost of securities is determined on the identified cost basis. The fund earns certain fees in connection with its floating rate loan purchasing activities. These fees are in addition to interest payments earned and may include amendment fees, commitment fees, facility fees, consent fees, and prepayment fees. Commitment fees are recorded on an accrual basis as income in the accompanying financial statements.
Debt obligations may be placed on non-accrual status or set to accrue at a rate of interest less than the contractual coupon when the collection of all or a portion of interest has become doubtful. Interest income for those debt obligations may be further reduced by the write-off of the related interest receivables when deemed uncollectible.
The fund may receive proceeds from litigation settlements. Any proceeds received from litigation involving portfolio holdings are reflected in the Statement of Operations in realized gain/loss if the security has been disposed of by the fund or in unrealized gain/loss if the security is still held by the fund. Any other proceeds from litigation not related to portfolio holdings are reflected as other income in the Statement of Operations.
Tax Matters and Distributions — The fund intends to qualify as a regulated investment company, as defined under Subchapter M of the Internal Revenue Code, and to distribute all of its taxable income, including realized capital gains. As a result, no provision for federal income tax is required. The fund’s federal tax returns, when filed, will remain subject to examination by the Internal Revenue Service for a three year period. Management has analyzed the fund’s tax positions taken on federal and state tax returns for all open tax years and does not believe that there are any uncertain tax positions that require recognition of a tax liability. Foreign taxes, if any, have been accrued by the fund in the accompanying financial statements in accordance with the applicable foreign tax law. Foreign income taxes may be withheld by certain countries in which the fund invests. Additionally, capital gains realized by the fund on securities issued in or by certain foreign countries may be subject to capital gains tax imposed by those countries.
Distributions to shareholders are recorded on the ex-dividend date. The fund seeks to pay monthly distributions based on an annual rate of 10.00% of the fund’s average monthly net asset value. As a result, distributions may exceed actual earnings which may result in a tax return of capital. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles. Certain capital accounts in the financial
Notes to Financial Statements (unaudited) - continued
statements are periodically adjusted for permanent differences in order to reflect their tax character. These adjustments have no impact on net assets or net asset value per share. Temporary differences which arise from recognizing certain items of income, expense, gain or loss in different periods for financial statement and tax purposes will reverse at some time in the future.
Book/tax differences primarily relate to defaulted bonds and amortization and accretion of debt securities.
For the six months ended April 30, 2022, the amount of distributions estimated to be a tax return of capital was approximately $640,125 which is reported as distributions from other sources in the Statements of Changes in Net Assets. All or a portion of this amount may be redesignated as capital gains at fiscal year end.
The tax character of distributions made during the current period will be determined at fiscal year end. The tax character of distributions declared to shareholders for the last fiscal year is as follows:
| | 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. |
The federal tax cost and the tax basis components of distributable earnings were as follows:
| 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 |
The aggregate cost above includes prior fiscal year end tax adjustments, if applicable.
(3) Transactions with Affiliates
Investment Adviser — The fund has an investment advisory agreement with MFS to provide overall investment management and related administrative services and facilities to the fund. The management fee is computed daily and paid monthly at an annual rate of 0.68% of the fund’s average daily net assets and 3.40% of gross income. Gross income is calculated based on tax elections that generally include the accretion of discount and exclude the amortization of premium, which may differ from investment income reported in the Statement of Operations. MFS has agreed to reduce its management fee to the lesser of the contractual management fee as set forth above or 0.90% of the fund's average daily net assets. This written agreement will continue
Notes to Financial Statements (unaudited) - continued
until modified by the fund's Board of Trustees, but such agreement will continue at least until October 31, 2022. For the six months ended April 30, 2022, the fund’s average daily net assets and gross income fees did not meet the thresholds required to waive the management fee under this agreement. The management fee, from net assets and gross income, incurred for the six months ended April 30, 2022 was equivalent to an annual effective rate of 0.81% of the fund’s average daily net assets.
Transfer Agent — The fund engages Computershare Trust Company, N.A. (“Computershare”) as the sole transfer agent for the fund. MFS Service Center, Inc. (MFSC) monitors and supervises the activities of Computershare for an agreed upon fee approved by the Board of Trustees. For the six months ended April 30, 2022, these fees paid to MFSC amounted to $1,130.
Administrator — MFS provides certain financial, legal, shareholder communications, compliance, and other administrative services to the fund. Under an administrative services agreement, the fund reimburses MFS the costs incurred to provide these services. The fund is charged an annual fixed amount of $17,500 plus a fee based on average daily net assets. The administrative services fee incurred for the six months ended April 30, 2022 was equivalent to an annual effective rate of 0.0458% of the fund's average daily net assets.
Trustees’ and Officers’ Compensation — The fund pays compensation to independent Trustees in the form of a retainer, attendance fees, and additional compensation to Board and Committee chairpersons. The fund does not pay compensation directly to Trustees or officers of the fund who are also officers of the investment adviser, all of whom receive remuneration from MFS for their services to the fund. Certain officers and Trustees of the fund are officers or directors of MFS and MFSC.
Other — The fund invests in the MFS Institutional Money Market Portfolio which is managed by MFS and seeks current income consistent with preservation of capital and liquidity. This money market fund does not pay a management fee to MFS but does incur investment and operating costs.
The fund is permitted to engage in purchase and sale transactions with funds and accounts for which MFS serves as investment adviser or sub-adviser (“cross-trades”) pursuant to a policy adopted by the Board of Trustees. This policy has been designed to ensure that cross-trades conducted by the fund comply with Rule 17a-7 under the Investment Company Act of 1940. During the six months ended April 30, 2022, the fund engaged in purchase transactions pursuant to this policy, which amounted to $2,948.
The adviser has voluntarily undertaken to reimburse the fund from its own resources on a quarterly basis for the cost of investment research embedded in the cost of the fund’s securities trades. This agreement may be rescinded at any time. For the six months ended April 30, 2022, this reimbursement amounted to $64, which is included in “Other” income in the Statement of Operations.
(4) Portfolio Securities
For the six months ended April 30, 2022, purchases and sales of investments, other than short-term obligations, aggregated $4,920,787 and $6,242,654, respectively.
Notes to Financial Statements (unaudited) - continued
(5) Shares of Beneficial Interest
The fund's Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest. The Trustees have authorized the repurchase by the fund of up to 10% annually of its own shares of beneficial interest.
During the six months ended April 30, 2022 and the year ended October 31, 2021, the fund did not repurchase any shares. Transactions in fund shares were as follows:
| | 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 |
(6) Line of Credit
The fund and certain other funds managed by MFS participate in a $1.45 billion unsecured committed line of credit of which $1.2 billion is reserved for use by the fund and certain other MFS U.S. funds. The line of credit is provided by a syndicate of banks under a credit agreement. Borrowings may be made for temporary financing needs. Interest is charged to each fund, based on its borrowings, generally at a rate equal to the highest of Daily Simple SOFR plus 0.10%, the Federal Funds Effective Rate, and the Overnight Bank Funding Rate, plus an agreed upon spread. A commitment fee, based on the average daily, unused portion of the committed line of credit, is allocated among the participating funds. In addition, the fund and other funds managed by MFS have established unsecured uncommitted borrowing arrangements with certain banks for temporary financing needs. Interest is charged to each fund, based on its borrowings, at rates equal to customary reference rates plus an agreed upon spread. For the six months ended April 30, 2022, the fund’s commitment fee and interest expense were $74 and $0, respectively, and are included in “Miscellaneous” expense in the Statement of Operations.
(7) Investments in Affiliated Issuers
An affiliated issuer may be considered one in which the fund owns 5% or more of the outstanding voting securities, or a company which is under common control. For the purposes of this report, the following were affiliated issuers:
| 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 | $— |
Notes to Financial Statements (unaudited) - continued
(8) LIBOR Transition
Certain of the fund's investments, including investments in certain debt instruments and derivatives (if any), as well as borrowings by the fund and certain other contractual arrangements of the fund, may be based on the London Interbank Offered Rate (“LIBOR”). In 2017, the regulatory authority that oversees financial services firms in the United Kingdom announced plans to transition away from LIBOR by the end of 2021. In March 2021, the administrator of LIBOR announced the extension of the publication of the more commonly used U.S. dollar LIBOR settings to the end of June 2023. Although the full impacts of the transition away from LIBOR are not fully known, the transition may result in, among other things, an increase in volatility or illiquidity of the markets for instruments that currently rely on LIBOR to determine interest rates and this could have an adverse impact on the fund's performance. With respect to the fund's accounting for investments, including investments in certain debt instruments and derivatives, as well as borrowings by the fund and any other contractual arrangements of the fund that undergo reference rate-related modifications as a result of the transition, management will rely upon the relief provided by FASB Codification Topic 848 – Reference Rate Reform (Topic 848). The guidance in Topic 848 permits the fund to account for those modified contracts as a continuation of the existing contracts. Management is still evaluating the impact to the fund of the June 30, 2023 planned discontinuation of the more commonly used U.S. dollar LIBOR settings.
(9) Russia and Ukraine Conflict
The market disruptions, which began in late February 2022, associated with geopolitical events related to the conflict between Russia and Ukraine may adversely affect the value of the fund’s assets and thus the fund’s performance. Management continues to monitor these events and to evaluate the related impacts, if any, to the fund.
Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Trustees of MFS Special Value Trust
Results of Review of Interim Financial Statements
We have reviewed the accompanying statement of assets and liabilities of MFS Special Value Trust (the “Fund”), including the portfolio of investments, as of April 30, 2022, and the related statements of operations, changes in net assets and financial highlights for the six-month period then ended and the related notes (collectively referred to as the “interim financial statements”). Based on our review, we are not aware of any material modifications that should be made to the interim financial statements for them to be in conformity with U.S. generally accepted accounting principles.
We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the statement of changes in net assets for the year ended October 31, 2021 and the financial highlights for each of the five years in the period then ended; and in our report dated December 15, 2021, we expressed an unqualified opinion on those financial statements.
Basis for Review Results
These financial statements are the responsibility of the Fund's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
Boston, Massachusetts
June 15, 2022
Proxy Voting Policies and Information
MFS votes proxies on behalf of the fund pursuant to proxy voting policies and procedures that are available without charge, upon request, by calling 1-800-225-2606, by visiting mfs.com/proxyvoting, or by visiting the SEC’s Web site at http://www.sec.gov.
Information regarding how the fund voted proxies relating to portfolio securities during the most recent twelve-month period ended June 30 is available by August 31 of each year without charge by visiting mfs.com/proxyvoting, or by visiting the SEC’s Web site at http://www.sec.gov.
Quarterly Portfolio Disclosure
The fund files a complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The fund’s Form N-PORT reports are available on the SEC’s Web site at http://www.sec.gov. A shareholder can obtain the portfolio holdings report for the first and third quarters of the fund's fiscal year at mfs.com/closedendfunds by choosing the fund's name and then scrolling to the “Resources” section and clicking on the “Prospectus and Reports” tab.
Further Information
From time to time, MFS may post important information about the fund or the MFS Funds on the MFS Web site (mfs.com). This information is available at https://www.mfs.com/announcements or at mfs.com/closedendfunds by choosing the fund's name and then scrolling to the “Resources” section and clicking on the “Announcements” tab, if any.
Additional information about the fund (e.g., performance, dividends and the fund’s price history) is also available at mfs.com/closedendfunds by choosing the fund's name, if any.
INFORMATION ABOUT FUND CONTRACTS AND LEGAL CLAIMS
The fund has entered into contractual arrangements with an investment adviser, administrator, transfer agent, and custodian who each provide services to the fund. Unless expressly stated otherwise, shareholders are not parties to, or intended beneficiaries of these contractual arrangements, and these contractual arrangements are not intended to create any shareholder right to enforce them against the service providers or to seek any remedy under them against the service providers, either directly or on behalf of the fund.
Under the Trust’s By-Laws and Declaration of Trust, any claims asserted against or on behalf of the MFS Funds, including claims against Trustees and Officers, must be brought in state and federal courts located within the Commonwealth of Massachusetts.
CONTACT US
TRANSFER AGENT, REGISTRAR, AND
DIVIDEND DISBURSING AGENT
CALL
1-800-637-2304
9 a.m. to 5 p.m. Eastern time
WRITE
Computershare Trust Company, N.A.
P.O. Box 505005
Louisville, KY 40233-5005
New York Stock Exchange Symbol: MFV
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.
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.
| (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. |
