Company: CIF
Filing Date: 2025-01-27
Form Type: N-CSR
Source: 0001683863-25-000338
Chunk: 31

Company: MFS INTERMEDIATE HIGH INCOME FUND
Filing Date: 2025-01-27
Form: N-CSR
Chunk 31
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 derivative instruments may be substantially greater than the derivative’s original cost.

45

Notes to Financial Statements - continued

The derivative instruments used by the fund during the period were purchased options and forward foreign currency exchange 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'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 November 30, 2024 as reported in the Statement of Assets and Liabilities:

|                  |                                             |    Fair Value (a) |                       |
| Risk             | Derivative Contracts                        | Asset Derivatives | Liability Derivatives |
| Equity           | Purchased Option Contracts                  |               $50 |                    $— |
| Foreign Exchange | Forward Foreign Currency Exchange Contracts |            29,558 |                  -494 |
| Total            |                                             |           $29,608 |                $(494) |

| (a) | The value of purchased options outstanding is included in investments in unaffiliated issuers, at value, 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 year ended November 30, 2024 as reported in the Statement of Operations:

| Risk             | Forward Foreign 
 Currency        
 Exchange        
 Contracts       |
| Foreign Exchange | $(5,283)        |

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 year ended November 30, 2024 as reported in the Statement of Operations:

| Risk             | Forward Foreign 
        Currency 
        Exchange 
       Contracts | Unaffiliated Issuers 
           (Purchased 
             Options) |
| Foreign Exchange |         $35,721 |                   $— |
| Equity           |               — |              -20,250 |
| Total            |         $35,721 |            $(20,250) |

Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain