Company: CXH
Filing Date: 2025-01-27
Form Type: N-CSR
Source: 0001683863-25-000339
Chunk: 4

Company: MFS INVESTMENT GRADE MUNICIPAL TRUST
Filing Date: 2025-01-27
Form: N-CSR
Chunk 4
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 was favorable for returns. With the economy showing sustained evidence of moderating and the Fed initiating a rate-cutting cycle, municipal yields declined (with the exception of 5 to 10-year
maturities, which rose modestly), providing a tailwind to returns. The investment grade and high yield municipal markets delivered returns of 4.9% and 11.4%, respectively, over the period, with lower quality and
longer maturity bonds generally outperforming higher quality and shorter maturity securities. The yields (yield-to-worst) on the investment grade and high yield municipal indices ended the period at 3.45% and 5.26%,
respectively, well above their five-year averages of 2.52% and 4.80%; a positive for income-oriented investors.

3

Management Review - continued

Factors Affecting Performance The fund’s exposure to “Not-Rated”, “D”, and “BB” rated(r) bonds, for which the benchmark has no exposure, and its overweight allocation to the “BBB” rated securities, contributed to performance relative to the Bloomberg Municipal Bond Index. From a sector perspective, the fund’s overweight allocation to both the industrial revenue and health care sectors also supported relative results. Favorable security selection within the health care and education sectors, particularly among “A” rated credit issues, further aided relative returns. The fund’s positioning along the yield curve(y) was another contributor to relative performance. There were no material factors that detracted from relative performance over the reporting period. The fund employs leverage, which has been created through the issuance of remarketable variable rate munifund term preferred shares and the use of tender option bonds. To the extent that investments are purchased through leverage, the fund’s net asset value will increase or decrease at a greater rate than a comparable unleveraged fund. During the reporting period, the fund’s use of leverage helped relative performance. Respectfully, Portfolio Manager(s) Michael Dawson, Jason Kosty, and Geoffrey Schechter Note to Shareholders: Geoffrey Schechter has announced his intention to retire effective September 30, 2025, and he will no longer be a portfolio manager of the fund as of that date.

| (r) | Securities rated “BBB”, “Baa”, or higher are considered investment grade; securities rated “BB”, “Ba”, or below are considered                                                                                         
 non-investment grade. Ratings are assigned to underlying securities utilizing ratings from Moody's, Fitch, and Standard & Poor's and