Company: CXH
Filing Date: 2025-01-27
Form Type: N-CSR
Source: 0001683863-25-000339
Chunk: 28

Company: MFS INVESTMENT GRADE MUNICIPAL TRUST
Filing Date: 2025-01-27
Form: N-CSR
Chunk 28
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416 |       — |  115,234,416 |
| U.S. Corporate Bonds  |          — |       64,027 |       — |       64,027 |
| Mutual Funds          |  1,413,928 |            — |       — |    1,413,928 |
| Total                 | $1,413,928 | $115,298,443 | $11,461 | $116,723,832 |

For further information regarding security characteristics, see the Portfolio of Investments.

53

Notes to Financial Statements - continued

The following is a reconciliation of level 3 assets for which significant unobservable inputs were used to determine fair value. The table presents the activity of level 3 securities held at the beginning and the end of the period.

|                                        |     Equity 
 Securities |
| Balance as of 11/30/23                 |         $— |
| Received as part of a corporate action |     11,461 |
| Balance as of 11/30/24                 |    $11,461 |

At November 30, 2024, the fund held one level 3 security. Inverse Floaters — The fund invests in municipal inverse floating rate securities in the form of self-deposited secondary market inverse floaters which have variable rates of interest that typically move in the opposite direction of short-term rates. A self-deposited secondary market inverse floater is created when the fund transfers a municipal bond from its portfolio to a special purpose trust (“the trust”) and causes the trust to issue (a) inverse floaters to be held by the fund and (b) floating rate certificates to be held by third parties. The floating rate certificates usually pay tax-exempt interest at short-term rates that reset weekly and the holders of those certificates typically have the option to tender at par plus accrued interest. Self-deposited secondary market inverse floaters are accounted for as secured borrowings, with the municipal bonds transferred to the trust being reflected as fund investments and the amounts owed to floating rate certificate holders being reflected as fund liabilities in the Statement of Assets and Liabilities as “Payable to the holders of the floating rate certificates”. The carrying value of that liability as reported in the fund’s Statement of Assets and Liabilities approximates its fair value which would be considered level 2 under the fair value hierarchy. At November 30, 2024, the fund’s payable to the holders of the floating rate certificates was $6,769,503 and the