Company: CIF
Filing Date: 2025-01-27
Form Type: N-CSR
Source: 0001683863-25-000338
Chunk: 36

Company: MFS INTERMEDIATE HIGH INCOME FUND
Filing Date: 2025-01-27
Form: N-CSR
Chunk 36
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 accretion of discount of debt securities.

49

Notes to Financial Statements - continued

The tax character of distributions declared to shareholders for the last two fiscal years is as follows:

|                                                          | Year ended 
   11/30/24 | Year ended 
   11/30/23 |
| Ordinary income (including any short-term capital gains) | $1,870,641 | $1,732,737 |
| Tax return of capital (b)                                |  1,327,359 |  1,565,334 |
| Total distributions                                      | $3,198,000 | $3,298,071 |

| (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 11/30/24                             |              |
| Cost of investments                        |  $48,164,569 |
| Gross appreciation                         |    1,312,148 |
| Gross depreciation                         |   -1,246,496 |
| Net unrealized appreciation (depreciation) |      $65,652 |
| Capital loss carryforwards                 |   -9,916,433 |
| Other temporary differences                |      -16,662 |
| Total distributable earnings (loss)        | $(9,867,443) |

As of November 30, 2024, the fund had capital loss carryforwards available to offset future realized gains. These net capital losses may be carried forward indefinitely and their character is retained as short-term and/or long-term losses. Such losses are characterized as follows:

| Short-Term |   $(499,487) |
| Long-Term  |   -9,416,946 |
| Total      | $(9,916,433) |

(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 0.65% of the fund’s average daily net assets. The fund pays the adviser a monthly fee equal to 20% of the fund’s leverage income after deducting the expenses of leveraging (“net leverage income”); provided, however, if the fund’s net leverage income is less than zero, MFS will reduce its management fee by an amount equivalent to