Company: CXH
Filing Date: 2025-01-27
Form Type: N-CSR
Source: 0001683863-25-000339
Chunk: 8

Company: MFS INVESTMENT GRADE MUNICIPAL TRUST
Filing Date: 2025-01-27
Form: N-CSR
Chunk 8
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 rating is assigned. A debt instrument will be considered unrated if none of the NRSROs have assigned a rating.

MFS may also invest in below
investment grade quality debt instruments.

MFS may invest 25% or more of the
fund’s total assets in municipal instruments that finance similar types of projects, such as those relating to education, healthcare, housing, utilities, water, or sewers.  Although MFS seeks to invest the
fund's assets in municipal instruments whose interest is exempt from federal personal income tax, MFS may also invest the fund's assets in taxable instruments, including derivatives.

MFS may invest a significant
percentage of the fund's assets in issuers in a single state, territory, or possession, or a small number of states, territories, or possessions.

While MFS may use derivatives for
any investment purpose, to the extent MFS uses derivatives, MFS expects to use derivatives primarily to increase or decrease exposure to a particular market, segment of the market, or security, to increase or decrease
interest rate exposure, or as alternatives to direct investments.

MFS uses an active bottom-up
investment approach to buying and selling investments for the fund. Investments are selected primarily based on fundamental analysis of individual instruments and their issuers in light of the issuers’ financial
condition and market, economic, political, and regulatory conditions. Factors considered may include the instrument’s credit quality and terms, any underlying assets and their credit quality,

7

Investment Objective, Principal Investment
Strategies and Principal Risks - continued

and the issuer’s management ability, capital
structure, leverage, and ability to meet its current obligations. MFS may also consider environmental, social, and governance (ESG) factors in its fundamental investment analysis where MFS believes such factors could
materially impact the economic value of an issuer or instrument. ESG factors considered may include, but are not limited to, an issuer's governance structure and practices, social issues such as health and safety
considerations, and environmental issues such as climate change impact, energy sources, and water and waste management.  Quantitative screening tools that systematically evaluate the structure of a debt
instrument and its features may also be considered. In structuring the fund, MFS also considers top-down factors, including sector allocations, yield curve positioning, duration, macroeconomic factors, and risk
management factors.

The fund uses leverage through the
issuance of preferred shares and/or the creation of tender option bonds, and then investing the