MFS Intermediate Income Trust

The Trust's portfolio management is handled by MFS Investment Management's fixed-income team. Day-to-day decisions are made by a group of institutional portfolio managers and career credit analysts operating from MFS's Boston headquarters, with input from sector specialists in London, Tokyo, and Hong Kong. MFS's fixed-income platform employs over 40 dedicated research analysts globally as of the most recent public disclosures.

Unlike open-end mutual funds, the Trust is not subject to daily redemptions, which gives portfolio managers a permanent capital base to draw upon. This allows the Trust to hold less-liquid credits, participate in off-the-run issuances, and avoid forced selling during market dislocations — all structural advantages that open-end funds do not possess. The trade-off is that the Trust's shares trade on the NYSE at prices that may diverge from their net asset value.

The Trust maintains a managed distribution policy that targets consistent monthly income payments to shareholders. Distributions are sourced from net investment income, realized capital gains, and — when necessary to maintain the targeted distribution level — a return of capital. The specific components of each distribution are disclosed in 19(a) notices filed with the SEC, which investors should review to understand the character of each payment.

Yes. The Trust is permitted to allocate up to 100% of its assets to non-U.S. issuers, though in practice the portfolio remains predominantly weighted toward North American and Western European debt. Emerging-market sovereign and corporate bonds are utilized for incremental yield when credit conditions warrant it. Currency exposure is actively managed, with hedging employed to mitigate foreign-exchange risk.

The Trust primarily holds investment-grade securities — those rated BBB-/Baa3 or higher — but has latitude to invest up to a defined percentage of assets in below-investment-grade debt, commonly known as high-yield or junk bonds. The exact limit on below-investment-grade exposure is set forth in the Trust's prospectus and statement of additional information, which are updated annually and filed with the SEC.

The Trust is advised by Massachusetts Financial Services Company, a subsidiary of Sun Life of Canada, and is one of multiple closed-end funds that MFS manages alongside its much larger open-end mutual fund and institutional separate-account businesses. MFS has operated in Boston since 1924, and the Trust benefits from the same centralized credit-research platform, risk-management infrastructure, and trading desk that supports all MFS fixed-income mandates.

Duration management is a primary tool for balancing income generation with price sensitivity to interest-rate movements. The Trust targets an intermediate effective duration — typically between three and seven years — which places it between short-duration funds that offer lower yields and long-duration vehicles that carry higher volatility. The portfolio management team adjusts duration in response to the macroeconomic outlook, Fed policy expectations, and relative value across the yield curve.