Company: CIF
Filing Date: 2025-01-27
Form Type: N-CSR
Source: 0001683863-25-000338
Chunk: 4

Company: MFS INTERMEDIATE HIGH INCOME FUND
Filing Date: 2025-01-27
Form: N-CSR
Chunk 4
---
 shorter than the instrument’s stated maturity.                                                                                                                                        |

Where the fund holds convertible bonds, they are treated as part of the equity portion of the portfolio. 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 November 30, 2024. The portfolio is actively managed and current holdings may be different.

2

### Management Review

### Summary of Results
For the twelve months ended November
30, 2024, shares of the MFS Intermediate High Income Fund (fund) provided a total return of 13.70%, at net asset value, and a total return of 19.09%, at market value. This compares with a return of 12.71% for the
fund’s benchmark, the Bloomberg U.S. Corporate High-Yield 2% Issuer Capped Index.

The performance commentary below is
based on the net asset value performance of the fund, which reflects the performance of the underlying pool of assets held by the fund. The total return at market value represents the return earned by owners of the
shares of the fund, which are traded publicly on the exchange.

#### Market Environment
With inflation subsiding, global
central banks in recent months have changed gears, focusing more on supporting economic growth. In the United States, the U.S. Federal Reserve has eased interest rates 0.75% since September after several months of
softer labor market data. In the eurozone, the European Central Bank lowered rates a total of 1% beginning in June as inflation fell back to target and growth nearly stalled. China recently loosened monetary policy
and ramped up fiscal stimulus after a period of subpar growth amid ongoing weakness in the country’s property market and flagging business and consumer sentiment.

Global equity markets have performed
strongly, with several themes playing out at once. The most prominent has been continued investment in artificial intelligence, helping boost the share prices of a handful of megacap technology stocks. Enormous demand
for GLP-1 weight-loss medications is another trend. A renewed focus on corporate governance, and greater attention paid to shareholder returns, helped boost share prices in Japan. Corporate earnings have been strong,
but tighter labor markets, the potential for higher input costs due to deglobalization, and the likelihood that interest rates and inflation will remain more elevated than in the prepandemic period could weigh on
margins in the future.

Heightened geopolitical uncertainty
lingers as Russia and