UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-5822
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MFS CHARTER INCOME TRUST
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(Exact name of registrant as specified in charter)
500 Boylston Street, Boston, Massachusetts 02116
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(Address of principal executive offices) (Zip code)
Susan S. Newton
Massachusetts Financial Services Company
500 Boylston Street
Boston, Massachusetts 02116
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(Name and address of agents for service)
Registrant's telephone number, including area code: (617) 954-5000
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Date of fiscal year end: November 30
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Date of reporting period: August 31, 2007
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ITEM 1. SCHEDULE OF INVESTMENTS.
MFS(R) CHARTER INCOME TRUST
8/31/07
Quarterly portfolio holdings
[graphic omitted]
M F S(R)
INVESTMENT MANAGEMENT
MFS Charter Income Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 8/31/07
ISSUER SHARES/PAR VALUE ($)
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BONDS - 95.7%
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AEROSPACE - 0.3%
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Bombardier, Inc., 8%, 2014 (n) $ 987,000 $ 1,019,078
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Hawker Beechcraft Acquisition Co. LLC, 9.75%, 2017 (n) 245,000 242,550
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Hawker Beechcraft Acquisition Corp., 8.5%, 2015 (n) 400,000 398,000
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$ 1,659,628
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AIRLINES - 0.2%
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Continental Airlines, Inc., 7.566%, 2020 $ 904,941 $ 884,562
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ASSET BACKED & SECURITIZED - 6.5%
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Asset Securitization Corp., FRN, 8.288%, 2029 $ 2,000,000 $ 2,076,195
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Banc of America Commercial Mortgage, Inc., FRN, 5.965%, 2045 600,000 606,710
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Bayview Financial Acquisition Trust, FRN, 5.483%, 2041 404,000 395,217
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Bayview Financial Revolving Mortgage Loan Trust, FRN, 6.12%, 2040 (z) 1,160,000 1,159,993
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Bear Stearns Commercial Mortgage Securities, Inc., FRN, 5.116%, 2041 1,120,248 1,090,871
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Citigroup Commercial Mortgage Trust, 5.462%, 2049 1,588,110 1,555,497
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Citigroup/Deutsche Bank Commercial Mortgage Trust, FRN, 5.693%, 2049 860,000 833,546
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Commercial Mortgage Pass-Through Certificates, FRN, 5.987%, 2046 230,000 233,014
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Countrywide Asset-Backed Certificates, FRN, 5.147%, 2035 2,000,000 1,960,178
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Credit Suisse Mortgage Capital Certificate, 5.343%, 2039 1,477,000 1,434,637
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Crest Ltd., 7%, 2040 2,000,000 1,663,660
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DLJ Commercial Mortgage Corp., 6.04%, 2031 (z) 2,000,000 1,975,846
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First Union-Lehman Brothers Bank of America, FRN, 0.4979%, 2035 (i) 59,773,476 768,035
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First Union-Lehman Brothers Commercial Mortgage Trust, 7%, 2029 (n) 850,000 902,685
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JPMorgan Chase Commercial Mortgage Securities Corp., 5.372%, 2047 940,000 912,629
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Merrill Lynch Mortgage Trust, FRN, 5.44%, 2044 1,400,000 1,373,974
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Morgan Stanley Capital I, Inc., 5.16%, 2042 1,532,020 1,492,434
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Mortgage Capital Funding, Inc., FRN, 0.94%, 2031 (i) 12,552,564 37,142
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New Century Home Equity Loan Trust, FRN, 4.532%, 2035 2,500,000 2,450,062
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Spirit Master Funding LLC, 5.05%, 2023 (z) 1,815,093 1,749,151
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Structured Asset Securities Corp., FRN, 4.67%, 2035 1,809,690 1,794,442
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Wachovia Bank Commercial Mortgage Trust, FRN, 5.383%, 2043 2,640,000 2,564,236
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Wachovia Bank Commercial Mortgage Trust, FRN, 5.591%, 2047 1,300,000 1,276,094
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Wachovia Bank Commercial Mortgage Trust, FRN, 5.339%, 2048 1,571,000 1,526,118
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Wachovia Bank Commercial Mortgage Trust, FRN, 5.603%, 2048 2,000,000 1,981,584
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$ 33,813,950
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AUTOMOTIVE - 0.7%
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DaimlerChrysler N.A. Holdings Corp., 8.5%, 2031 $ 400,000 $ 494,854
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Ford Motor Credit Co. LLC, 9.75%, 2010 590,000 584,299
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Ford Motor Credit Co. LLC, 7%, 2013 1,038,000 924,409
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Ford Motor Credit Co. LLC, 8%, 2016 310,000 286,076
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Ford Motor Credit Co., FRN, 8.105%, 2012 190,000 174,004
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General Motors Corp., 8.375%, 2033 712,000 571,380
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Goodyear Tire & Rubber Co., 9%, 2015 321,000 332,235
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TRW Automotive, Inc., 7%, 2014 (n) 465,000 432,450
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TRW Automotive, Inc., 7.25%, 2017 (n) 50,000 45,500
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$ 3,845,207
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BROADCASTING - 1.6%
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Allbritton Communications Co., 7.75%, 2012 $ 855,000 $ 835,763
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CBS Corp., 6.625%, 2011 1,036,000 1,074,039
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Clear Channel Communications, Inc., 6.25%, 2011 1,240,000 1,120,650
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Clear Channel Communications, Inc., 5.5%, 2014 520,000 405,600
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Grupo Televisa S.A., 8.5%, 2032 962,000 1,150,685
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Intelsat Bermuda Ltd., 11.25%, 2016 250,000 261,563
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Intelsat Subsidiary Holding Co. Ltd., 8.625%, 2015 340,000 342,125
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Lamar Media Corp., 7.25%, 2013 675,000 671,625
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News America Holdings, 7.7%, 2025 1,140,000 1,266,006
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News America, Inc., 6.2%, 2034 542,000 503,272
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Univision Communications, Inc., 9.75%, 2015 (n)(p) 455,000 433,388
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$ 8,064,716
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BROKERAGE & ASSET MANAGERS - 1.2%
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Goldman Sachs Group, Inc., 5.625%, 2017 $ 2,387,000 $ 2,281,640
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INVESCO PLC, 5.625%, 2012 1,440,000 1,447,193
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Lehman Brothers Holdings, Inc., 6.5%, 2017 1,260,000 1,240,518
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Merrill Lynch & Co., Inc., 6.4%, 2017 620,000 631,885
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Morgan Stanley, 5.75%, 2016 662,000 650,821
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$ 6,252,057
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BUILDING - 0.1%
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Nortek Holdings, Inc., 8.5%, 2014 $ 340,000 $ 294,100
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BUSINESS SERVICES - 0.5%
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SunGard Data Systems, Inc., 10.25%, 2015 $ 570,000 $ 587,100
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Xerox Corp., 6.4%, 2016 2,000,000 2,021,784
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$ 2,608,884
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CABLE TV - 0.4%
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CCH II Holdings LLC, 10.25%, 2010 $ 255,000 $ 257,550
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CCO Holdings LLC, 8.75%, 2013 480,000 470,400
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TCI Communications, Inc., 9.8%, 2012 1,169,000 1,349,163
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$ 2,077,113
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CHEMICALS - 0.8%
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Equistar Chemicals LP, 10.125%, 2008 $ 214,000 $ 222,025
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Momentive Performance Materials, Inc., 11.5%, 2016 (n) 455,000 434,525
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Mosaic Co., 7.625%, 2016 (n) 1,725,000 1,768,125
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Nalco Co., 8.875%, 2013 45,000 46,013
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Yara International A.S.A., 5.25%, 2014 (n) 2,000,000 1,912,082
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$ 4,382,770
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COMPUTER SOFTWARE - 0.2%
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Seagate Technology HDD Holdings, 6.375%, 2011 $ 1,200,000 $ 1,188,000
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CONGLOMERATES - 0.4%
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Actuant Corp., 6.875%, 2017 (n) $ 1,005,000 $ 967,313
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Kennametal, Inc., 7.2%, 2012 1,140,000 1,219,792
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$ 2,187,105
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CONSUMER GOODS & SERVICES - 0.6%
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Corrections Corp. of America, 6.25%, 2013 $ 305,000 $ 295,850
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Fortune Brands, Inc., 5.125%, 2011 1,150,000 1,130,989
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Jarden Corp., 7.5%, 2017 340,000 317,900
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Service Corp. International, 7%, 2017 775,000 732,375
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Service Corp. International, 7.625%, 2018 120,000 120,600
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Visant Holding Corp., 8.75%, 2013 261,000 261,000
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$ 2,858,714
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CONTAINERS - 0.7%
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Crown Americas LLC, 7.75%, 2015 $ 565,000 $ 570,650
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Greif, Inc., 6.75%, 2017 1,220,000 1,189,500
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Owens-Brockway Glass Container, Inc., 8.875%, 2009 378,000 384,143
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Owens-Brockway Glass Container, Inc., 8.25%, 2013 1,250,000 1,281,250
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$ 3,425,543
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DEFENSE ELECTRONICS - 0.8%
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BAE Systems Holdings, Inc., 4.75%, 2010 (n) $ 790,000 $ 785,785
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BAE Systems Holdings, Inc., 5.2%, 2015 (n) 750,000 733,626
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L-3 Communications Corp., 5.875%, 2015 1,350,000 1,279,125
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L-3 Communications Corp., 6.375%, 2015 1,500,000 1,451,250
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$ 4,249,786
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ELECTRONICS - 0.1%
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Flextronics International Ltd., 6.25%, 2014 $ 140,000 $ 128,800
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NXP B.V./NXP Funding LLC, 7.875%, 2014 300,000 270,750
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$ 399,550
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EMERGING MARKET QUASI-SOVEREIGN - 1.9%
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Banco do Brasil S.A., 7.95%, 2049 (n) $ 161,000 $ 163,818
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Codelco, Inc., 5.625%, 2035 1,900,000 1,732,350
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Gazprom International S.A., 7.201%, 2020 1,002,483 1,018,823
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Gazprom International S.A., 6.51%, 2022 (n) 1,300,000 1,256,450
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Majapahit Holding B.V., 7.25%, 2017 (n) 1,478,000 1,385,625
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OAO Gazprom, 7.288%, 2037 (z) 100,000 102,000
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Pemex Project Funding Master Trust, 8.625%, 2022 1,011,000 1,248,492
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Ras Laffan Liquefied Natural Gas Co. Ltd., 8.294%, 2014 (n) 2,490,000 2,765,750
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$ 9,673,308
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EMERGING MARKET SOVEREIGN - 2.2%
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Federative Republic of Brazil, 6%, 2017 $ 3,170,000 $ 3,150,980
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Republic of Argentina, FRN, 5.475%, 2012 3,588,125 3,158,196
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Republic of Colombia, FRN, 7.175%, 2015 1,520,000 1,573,960
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Republic of Indonesia, 6.875%, 2017 (n) 171,000 171,000
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Republic of Panama, 9.375%, 2029 1,121,000 1,462,905
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Republic of Panama, 6.7%, 2036 580,000 574,200
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Republic of Philippines, 9.375%, 2017 449,000 525,330
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Republic of South Africa, 5.875%, 2022 816,000 786,420
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Republic of Uruguay, 5%, 2018 UYU 5,110,000 243,143
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$ 11,646,134
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ENERGY - INDEPENDENT - 0.6%
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Chaparral Energy, Inc., 8.875%, 2017 (n) $ 380,000 $ 342,000
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Chesapeake Energy Corp., 6.875%, 2016 1,070,000 1,045,925
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Forest Oil Corp., 7.25%, 2019 (n) 210,000 202,125
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Hilcorp Energy I LP, 7.75%, 2015 (n) 135,000 129,263
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Newfield Exploration Co., 6.625%, 2014 295,000 283,569
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Plains Exploration & Production Co., 7%, 2017 555,000 505,050
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Quicksilver Resources, Inc., 7.125%, 2016 400,000 382,000
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$ 2,889,932
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ENERGY - INTEGRATED - 0.3%
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Petroleum Co. of Trinidad & Tobago Ltd., 6%, 2022 (n) $ 430,000 $ 432,931
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TNK-BP Finance S.A., 7.5%, 2016 (n) 1,211,000 1,195,863
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$ 1,628,794
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ENTERTAINMENT - 0.4%
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AMC Entertainment, Inc., 11%, 2016 $ 200,000 $ 208,000
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Turner Broadcasting System, Inc., 8.375%, 2013 1,784,000 2,002,039
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$ 2,210,039
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FINANCIAL INSTITUTIONS - 2.0%
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American Express Co., 6.15%, 2017 $ 410,000 $ 412,433
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Capmark Financial Group, Inc., 5.875%, 2012 (z) 940,000 832,511
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Countrywide Financial Corp., 6.25%, 2016 1,250,000 1,109,346
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General Motors Acceptance Corp., 5.85%, 2009 1,842,000 1,749,804
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General Motors Acceptance Corp., 6.875%, 2011 1,759,000 1,568,782
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General Motors Acceptance Corp., 6.75%, 2014 1,066,000 904,679
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General Motors Acceptance Corp., 8%, 2031 115,000 103,312
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GMAC LLC, 6.125%, 2008 234,000 232,398
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ILFC E-Capital Trust I, FRN, 5.9%, 2065 (n) 2,500,000 2,458,865
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Residential Capital LLC, 7.125%, 2008 95,000 79,325
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Residential Capital LLC, 7.5%, 2012 497,000 377,720
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Residential Capital LLC, 7.875%, 2015 687,000 518,685
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$ 10,347,860
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FOOD & BEVERAGES - 0.6%
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ARAMARK Corp., 8.5%, 2015 $ 610,000 $ 607,713
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B&G Foods Holding Corp., 8%, 2011 170,000 166,600
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Dean Foods Co., 7%, 2016 545,000 501,400
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Del Monte Corp., 6.75%, 2015 125,000 118,750
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General Mills, Inc., 5.65%, 2012 260,000 261,781
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Tyson Foods, Inc., 6.6%, 2016 1,520,000 1,585,544
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$ 3,241,788
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FOREST & PAPER PRODUCTS - 0.5%
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Buckeye Technologies, Inc., 8.5%, 2013 $ 460,000 $ 464,600
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Norske Skog Canada Ltd., 7.375%, 2014 695,000 559,475
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Stora Enso Oyj, 6.404%, 2016 (n) 1,560,000 1,545,762
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$ 2,569,837
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GAMING & LODGING - 1.1%
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Caesars Entertainment, Inc., 8.125%, 2011 $ 730,000 $ 722,700
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Harrah's Entertainment, Inc., 5.75%, 2017 260,000 195,000
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Host Marriott LP, 6.75%, 2016 1,000,000 972,500
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Isle of Capri Casinos, Inc., 7%, 2014 285,000 247,238
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Mandalay Resort Group, 9.375%, 2010 450,000 470,250
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MGM Mirage, Inc., 8.375%, 2011 1,155,000 1,180,988
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MGM Mirage, Inc., 6.75%, 2013 230,000 223,100
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Scientific Games Corp., 6.25%, 2012 380,000 361,950
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Station Casinos, Inc., 6.5%, 2014 430,000 364,425
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Wimar Opco LLC, 9.625%, 2014 (n) 585,000 432,900
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Wyndham Worldwide Corp., 6%, 2016 270,000 263,809
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Wynn Las Vegas LLC, 6.625%, 2014 365,000 353,138
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$ 5,787,998
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INDUSTRIAL - 0.1%
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JohnsonDiversey Holdings, Inc., "B", 9.625%, 2012 $ 570,000 $ 572,850
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INSURANCE - 0.0%
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American International Group, Inc., 6.25%, 2037 $ 210,000 $ 194,392
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INSURANCE - HEALTH - 0.0%
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Centene Corp., 7.25%, 2014 $ 215,000 $ 209,625
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INSURANCE - PROPERTY & CASUALTY - 1.2%
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AXIS Capital Holdings Ltd., 5.75%, 2014 $ 1,689,000 $ 1,674,762
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Fund American Cos., Inc., 5.875%, 2013 1,351,000 1,345,615
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USI Holdings Corp., FRN, 9.23%, 2014 (n) 1,005,000 934,650
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ZFS Finance USA Trust V, FRN, 6.5%, 2037 (z) 2,490,000 2,329,751
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$ 6,284,778
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INTERNATIONAL MARKET QUASI-SOVEREIGN - 6.1%
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Canada Housing Trust, 4.6%, 2011 CAD 654,000 $ 620,922
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Development Bank of Japan, 1.75%, 2010 JPY 307,000,000 2,703,517
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Development Bank of Japan, 1.4%, 2012 JPY 462,000,000 4,029,279
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Development Bank of Japan, 1.05%, 2023 JPY 654,000,000 4,888,406
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Development Bank of Japan, 2.3%, 2026 JPY 190,000,000 1,671,180
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Japan Finance Corp. for Municipal Enterprises, 1.55%, 2012 JPY 463,000,000 4,073,345
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Japan Finance Corp. for Municipal Enterprises, 2%, 2016 JPY 850,000,000 7,598,434
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KfW Bankengruppe, 1.35%, 2014 JPY 723,000,000 6,235,729
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$ 31,820,812
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INTERNATIONAL MARKET SOVEREIGN - 13.7%
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Federal Republic of Germany, 5.25%, 2010 EUR 6,501,000 $ 9,126,352
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Federal Republic of Germany, 3.75%, 2015 EUR 3,043,000 4,030,038
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Federal Republic of Germany, 6.25%, 2030 EUR 2,593,000 4,362,996
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Government of Canada, 5.5%, 2009 CAD 1,305,000 1,260,321
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Government of Canada, 4.5%, 2015 CAD 1,125,000 1,073,261
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Government of Canada, 5.75%, 2033 CAD 396,000 448,737
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Kingdom of Denmark, 4%, 2015 DKK 6,915,000 1,238,514
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Kingdom of Netherlands, 3.75%, 2009 EUR 8,727,000 11,800,609
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Kingdom of Netherlands, 3.75%, 2014 EUR 1,787,000 2,365,566
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Kingdom of Spain, 5.35%, 2011 EUR 4,570,000 6,498,479
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Republic of Austria, 4.65%, 2018 EUR 4,347,000 6,055,576
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Republic of France, 4.75%, 2012 EUR 1,281,000 1,789,834
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Republic of France, 5%, 2016 EUR 2,150,000 3,078,275
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Republic of France, 6%, 2025 EUR 874,000 1,404,888
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Republic of France, 4.75%, 2035 EUR 3,517,000 4,925,127
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Republic of Ireland, 4.6%, 2016 EUR 3,420,000 4,747,353
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United Kingdom Treasury, 8%, 2015 GBP 944,000 2,269,100
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United Kingdom Treasury, 8%, 2021 GBP 980,000 2,572,182
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United Kingdom Treasury, 4.25%, 2036 GBP 1,346,000 2,607,268
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$ 71,654,476
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MACHINERY & TOOLS - 0.2%
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Case Corp., 7.25%, 2016 $ 470,000 $ 474,700
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Case New Holland, Inc., 7.125%, 2014 380,000 383,800
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$ 858,500
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MAJOR BANKS - 0.8%
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BNP Paribas, 5.186% to 2015, FRN to 2049(n) $ 1,667,000 $ 1,544,591
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HBOS Capital Funding LP, 6.071% to 2014, FRN to 2049(n) 1,330,000 1,306,487
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MUFG Capital Finance 1 Ltd., 6.346% to 2016, FRN to 2049 1,408,000 1,343,857
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$ 4,194,935
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MEDICAL & HEALTH TECHNOLOGY & SERVICES - 1.8%
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Advanced Medical Optics, Inc., 7.5%, 2017 $ 405,000 $ 369,563
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Community Health Systems, Inc., 8.875%, 2015 (n) 530,000 529,338
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Cooper Cos., Inc., 7.125%, 2015 655,000 625,525
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DaVita, Inc., 6.625%, 2013 170,000 164,475
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DaVita, Inc., 7.25%, 2015 915,000 896,700
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Fisher Scientific International, Inc., 6.125%, 2015 2,090,000 2,047,623
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HCA, Inc., 8.75%, 2010 630,000 626,850
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HCA, Inc., 6.375%, 2015 160,000 130,400
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HCA, Inc., 9.25%, 2016 (n) 780,000 801,450
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Hospira, Inc., 6.05%, 2017 1,091,000 1,084,690
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Omnicare, Inc., 6.875%, 2015 670,000 624,775
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Owens & Minor, Inc., 6.35%, 2016 970,000 987,275
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Psychiatric Solutions, Inc., 7.75%, 2015 390,000 382,200
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$ 9,270,864
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METALS & MINING - 1.4%
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Arch Western Finance LLC, 6.75%, 2013 $ 630,000 $ 596,138
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Chaparral Steel Co., 10%, 2013 515,000 584,525
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FMG Finance Ltd., 10.625%, 2016 (n) 650,000 744,250
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Foundation PA Coal Co., 7.25%, 2014 240,000 229,800
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Freeport-McMoRan Copper & Gold, Inc., 8.25%, 2015 370,000 392,200
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Freeport-McMoRan Copper & Gold, Inc., 8.375%, 2017 1,040,000 1,107,600
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International Steel Group, Inc., 6.5%, 2014 1,300,000 1,305,429
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Ispat Inland ULC, 9.75%, 2014 1,200,000 1,310,243
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Peabody Energy Corp., 5.875%, 2016 425,000 394,188
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Peabody Energy Corp., "B", 6.875%, 2013 465,000 463,838
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$ 7,128,211
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MORTGAGE BACKED - 14.7%
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Fannie Mae, 3.81%, 2013 $ 564,750 $ 528,957
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Fannie Mae, 4.1%, 2013 913,941 868,392
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Fannie Mae, 4.19%, 2013 779,998 743,132
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Fannie Mae, 4.845%, 2013 246,608 240,843
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Fannie Mae, 4.547%, 2014 731,565 701,161
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Fannie Mae, 4.6%, 2014 745,446 721,599
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Fannie Mae, 4.666%, 2014 1,219,012 1,175,811
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Fannie Mae, 4.77%, 2014 581,387 560,488
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Fannie Mae, 4.56%, 2015 312,589 299,872
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Fannie Mae, 4.665%, 2015 253,240 244,492
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Fannie Mae, 4.7%, 2015 241,653 233,786
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Fannie Mae, 4.74%, 2015 597,146 573,566
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Fannie Mae, 4.78%, 2015 698,478 677,348
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Fannie Mae, 4.815%, 2015 600,000 578,077
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Fannie Mae, 4.87%, 2015 510,461 498,292
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Fannie Mae, 4.89%, 2015 170,342 166,660
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Fannie Mae, 4.925%, 2015 1,899,359 1,846,631
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Fannie Mae, 6%, 2016 - 2037 10,645,784 10,680,340
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Fannie Mae, 5.5%, 2019 - 2035 39,574,435 38,819,889
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Fannie Mae, 4.88%, 2020 536,819 526,142
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Fannie Mae, 6.5%, 2032 - 2033 2,667,146 2,724,744
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Fannie Mae, 5.5%, 2033 4,959,026 4,857,240
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Freddie Mac, 5%, 2024 316,459 316,096
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Freddie Mac, 5.5%, 2034 6,523,347 6,389,979
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Freddie Mac, 6%, 2034 1,796,935 1,802,374
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$ 76,775,911
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NATURAL GAS - DISTRIBUTION - 0.2%
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AmeriGas Partners LP, 7.25%, 2015 $ 470,000 $ 455,900
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AmeriGas Partners LP, 7.125%, 2016 175,000 168,000
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Inergy LP, 6.875%, 2014 270,000 257,850
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$ 881,750
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NATURAL GAS - PIPELINE - 1.5%
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Atlas Pipeline Partners LP, 8.125%, 2015 $ 1,080,000 $ 1,071,900
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CenterPoint Energy Resources Corp., 7.875%, 2013 1,600,000 1,748,610
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El Paso Performance-Linked Trust, CLN, 7.75%, 2011 (n) 910,000 932,332
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Intergas Finance B.V., 6.375%, 2017 (n) 700,000 652,750
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Magellan Midstream Partners LP, 5.65%, 2016 311,000 303,850
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Spectra Energy Capital LLC, 8%, 2019 1,350,000 1,513,050
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Williams Cos., Inc., 8.75%, 2032 1,010,000 1,148,875
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Williams Partners LP, 7.25%, 2017 370,000 366,300
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$ 7,737,667
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NETWORK & TELECOM - 1.7%
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Citizens Communications Co., 9.25%, 2011 $ 815,000 $ 874,088
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Citizens Communications Co., 9%, 2031 405,000 397,913
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Nordic Telephone Co. Holdings, 8.875%, 2016 (n) 305,000 315,675
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Qwest Corp., 7.875%, 2011 700,000 732,375
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Qwest Corp., 8.875%, 2012 450,000 487,125
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Telefonica Europe B.V., 7.75%, 2010 1,000,000 1,065,963
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TELUS Corp., 8%, 2011 1,299,000 1,409,033
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Verizon New York, Inc., 6.875%, 2012 2,542,000 2,678,363
---------------------------------------------------------------------------------------------------------------------------------
Windstream Corp., 8.625%, 2016 495,000 517,275
---------------------------------------------------------------------------------------------------------------------------------
Windstream Corp., 7%, 2019 180,000 169,650
---------------------------------------------------------------------------------------------------------------------------------
$ 8,647,460
---------------------------------------------------------------------------------------------------------------------------------
OIL SERVICES - 0.2%
---------------------------------------------------------------------------------------------------------------------------------
Basic Energy Services, Inc., 7.125%, 2016 $ 485,000 $ 443,775
---------------------------------------------------------------------------------------------------------------------------------
Compagnie Generale de Geophysique - Veritas, 7.75%, 2017 340,000 343,400
---------------------------------------------------------------------------------------------------------------------------------
GulfMark Offshore, Inc., 7.75%, 2014 435,000 428,475
---------------------------------------------------------------------------------------------------------------------------------
$ 1,215,650
---------------------------------------------------------------------------------------------------------------------------------
OILS - 0.5%
---------------------------------------------------------------------------------------------------------------------------------
Premcor Refining Group, Inc., 7.5%, 2015 $ 2,300,000 $ 2,385,831
---------------------------------------------------------------------------------------------------------------------------------
OTHER BANKS & DIVERSIFIED FINANCIALS - 2.6%
---------------------------------------------------------------------------------------------------------------------------------
Alfa Diversified Payment Rights Finance Co., FRN, 7.2549%, 2011 (n) $ 2,241,900 $ 2,241,900
---------------------------------------------------------------------------------------------------------------------------------
Banco BMG S.A., 9.15%, 2016 (n) 639,000 659,001
---------------------------------------------------------------------------------------------------------------------------------
Banco do Estado de Sao Paulo S.A., 8.7%, 2049 (n) 1,400,000 1,461,250
---------------------------------------------------------------------------------------------------------------------------------
Banco Mercantil del Norte S.A., 5.875% to 2009, FRN to 2014(n) 808,000 799,920
---------------------------------------------------------------------------------------------------------------------------------
Bosphorus Financial Services Ltd., FRN, 7.16%, 2012 (z) 1,500,000 1,507,619
---------------------------------------------------------------------------------------------------------------------------------
HSBK Europe B.V., 7.25%, 2017 (n) 1,187,000 1,115,780
---------------------------------------------------------------------------------------------------------------------------------
ICICI Bank Ltd., FRN, 6.375%, 2022 (n) 141,000 132,126
---------------------------------------------------------------------------------------------------------------------------------
Mizuho Capital Investment 1 Ltd., 6.686% to 2016, FRN to 2049(n) 2,500,000 2,410,073
---------------------------------------------------------------------------------------------------------------------------------
Resona Bank Ltd., 5.85% to 2016, FRN to 2049(n) 655,000 621,329
---------------------------------------------------------------------------------------------------------------------------------
Russian Standard Finance S.A., 8.125%, 2008 (n) 682,000 675,044
---------------------------------------------------------------------------------------------------------------------------------
Russian Standard Finance S.A., 7.5%, 2010 (n) 176,000 160,600
---------------------------------------------------------------------------------------------------------------------------------
Russian Standard Finance S.A., 8.625%, 2011 (n) 498,000 463,140
---------------------------------------------------------------------------------------------------------------------------------
Woori Bank, 6.125% to 2011, FRN to 2016(n) 1,490,000 1,491,104
---------------------------------------------------------------------------------------------------------------------------------
$ 13,738,886
---------------------------------------------------------------------------------------------------------------------------------
PRECIOUS METALS & MINERALS - 0.6%
---------------------------------------------------------------------------------------------------------------------------------
Alrosa Finance S.A., 8.875%, 2014 $ 2,880,000 $ 3,138,048
---------------------------------------------------------------------------------------------------------------------------------
PRINTING & PUBLISHING - 1.1%
---------------------------------------------------------------------------------------------------------------------------------
American Media Operations, Inc., 10.25%, 2009 $ 375,000 $ 330,000
---------------------------------------------------------------------------------------------------------------------------------
Dex Media West LLC, 9.875%, 2013 1,527,000 1,610,985
---------------------------------------------------------------------------------------------------------------------------------
Idearc, Inc., 8%, 2016 2,130,000 2,103,375
---------------------------------------------------------------------------------------------------------------------------------
Nielsen Finance LLC, 10%, 2014 70,000 71,750
---------------------------------------------------------------------------------------------------------------------------------
R.H. Donnelley Corp., 8.875%, 2016 1,535,000 1,573,375
---------------------------------------------------------------------------------------------------------------------------------
$ 5,689,485
---------------------------------------------------------------------------------------------------------------------------------
RAILROAD & SHIPPING - 0.4%
---------------------------------------------------------------------------------------------------------------------------------
TFM S.A. de C.V., 9.375%, 2012 $ 2,100,000 $ 2,173,500
---------------------------------------------------------------------------------------------------------------------------------
REAL ESTATE - 0.6%
---------------------------------------------------------------------------------------------------------------------------------
HRPT Properties Trust, REIT, 6.25%, 2016 $ 1,422,000 $ 1,404,172
---------------------------------------------------------------------------------------------------------------------------------
Kimco Realty Corp., REIT, 5.783%, 2016 710,000 696,037
---------------------------------------------------------------------------------------------------------------------------------
Simon Property Group LP, REIT, 5.875%, 2017 1,260,000 1,245,138
---------------------------------------------------------------------------------------------------------------------------------
$ 3,345,347
---------------------------------------------------------------------------------------------------------------------------------
RETAILERS - 0.5%
---------------------------------------------------------------------------------------------------------------------------------
Couche-Tard, Inc., 7.5%, 2013 $ 420,000 $ 411,600
---------------------------------------------------------------------------------------------------------------------------------
Federated Retail Holdings, Inc., 5.35%, 2012 200,000 197,787
---------------------------------------------------------------------------------------------------------------------------------
Gap, Inc., 9.8%, 2008 940,000 985,910
---------------------------------------------------------------------------------------------------------------------------------
Home Depot, Inc., 5.875%, 2036 1,000,000 861,701
---------------------------------------------------------------------------------------------------------------------------------
$ 2,456,998
---------------------------------------------------------------------------------------------------------------------------------
SPECIALTY STORES - 0.1%
---------------------------------------------------------------------------------------------------------------------------------
GSC Holdings Corp., 8%, 2012 $ 220,000 $ 226,600
---------------------------------------------------------------------------------------------------------------------------------
Payless ShoeSource, Inc., 8.25%, 2013 65,000 60,125
---------------------------------------------------------------------------------------------------------------------------------
$ 286,725
---------------------------------------------------------------------------------------------------------------------------------
SUPERMARKETS - 0.3%
---------------------------------------------------------------------------------------------------------------------------------
Delhaize America, Inc., 9%, 2031 $ 980,000 $ 1,146,600
---------------------------------------------------------------------------------------------------------------------------------
Stater Brothers Holdings, Inc., 7.75%, 2015 (n) 220,000 213,400
---------------------------------------------------------------------------------------------------------------------------------
SUPERVALU, Inc., 7.5%, 2014 315,000 318,150
---------------------------------------------------------------------------------------------------------------------------------
$ 1,678,150
---------------------------------------------------------------------------------------------------------------------------------
SUPRANATIONAL - 0.3%
---------------------------------------------------------------------------------------------------------------------------------
Central American Bank, 4.875%, 2012 (n) $ 1,426,000 $ 1,392,372
---------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS - WIRELESS - 1.7%
---------------------------------------------------------------------------------------------------------------------------------
AT&T Wireless Services, Inc., 8.75%, 2031 $ 1,500,000 $ 1,869,857
---------------------------------------------------------------------------------------------------------------------------------
Centennial Communications Corp., 10.125%, 2013 240,000 251,400
---------------------------------------------------------------------------------------------------------------------------------
Cingular Wireless LLC, 6.5%, 2011 1,700,000 1,769,112
---------------------------------------------------------------------------------------------------------------------------------
Globo Comunicacoes e Participacoes S.A., 7.25%, 2022 (n) 100,000 93,500
---------------------------------------------------------------------------------------------------------------------------------
MetroPCS Communications, Inc., 9.25%, 2014 (n) 265,000 261,025
---------------------------------------------------------------------------------------------------------------------------------
Nextel Communications, Inc., 5.95%, 2014 1,295,000 1,235,571
---------------------------------------------------------------------------------------------------------------------------------
OJSC Vimpel-Communications, 8.25%, 2016 2,036,000 2,046,180
---------------------------------------------------------------------------------------------------------------------------------
Rogers Cable, Inc., 5.5%, 2014 1,025,000 991,585
---------------------------------------------------------------------------------------------------------------------------------
Rogers Wireless, Inc., 7.5%, 2015 450,000 484,942
---------------------------------------------------------------------------------------------------------------------------------
$ 9,003,172
---------------------------------------------------------------------------------------------------------------------------------
TELEPHONE SERVICES - 0.3%
---------------------------------------------------------------------------------------------------------------------------------
Embarq Corp., 7.082%, 2016 $ 1,740,000 $ 1,794,415
---------------------------------------------------------------------------------------------------------------------------------
TOBACCO - 0.6%
---------------------------------------------------------------------------------------------------------------------------------
Reynolds American, Inc., 6.75%, 2017 $ 2,984,000 $ 3,039,950
---------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 0.0%
---------------------------------------------------------------------------------------------------------------------------------
Peru Enhanced Pass-Through Trust, 0%, 2018 (n) $ 250,000 $ 162,500
---------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - SERVICES - 0.2%
---------------------------------------------------------------------------------------------------------------------------------
Hertz Corp., 8.875%, 2014 $ 315,000 $ 326,025
---------------------------------------------------------------------------------------------------------------------------------
Stena AB, 7%, 2016 305,000 301,188
---------------------------------------------------------------------------------------------------------------------------------
Westinghouse Air Brake Technologies Corp., 6.875%, 2013 370,000 360,750
---------------------------------------------------------------------------------------------------------------------------------
$ 987,963
---------------------------------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES - 1.0%
---------------------------------------------------------------------------------------------------------------------------------
Fannie Mae, 5.5%, 2017 $ 5,100,000 $ 5,257,488
---------------------------------------------------------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS - 12.6%
---------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, 10.625%, 2015 $ 3,350,000 $ 4,712,509
---------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, 7.5%, 2016 5,750,000 6,991,189
---------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, 6.25%, 2023 (f) 8,000,000 9,220,624
---------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, 5.375%, 2031 477,000 511,247
---------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, 4.5%, 2036 158,000 149,767
---------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bonds, 4.75%, 2037 4,977,000 4,909,343
---------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Notes, 12%, 2013 4,500,000 4,813,947
---------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Notes, 4.25%, 2013 13,765,000 13,718,763
---------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Notes, 9.875%, 2015 5,025,000 6,854,020
---------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Notes, 6.375%, 2027 2,350,000 2,795,398
---------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Notes, TIPS, 2%, 2014 11,453,450 11,181,430
---------------------------------------------------------------------------------------------------------------------------------
$ 65,858,237
---------------------------------------------------------------------------------------------------------------------------------
UTILITIES - ELECTRIC POWER - 4.0%
---------------------------------------------------------------------------------------------------------------------------------
AES Corp., 9.375%, 2010 $ 840,000 $ 877,800
---------------------------------------------------------------------------------------------------------------------------------
Allegheny Energy Supply Co. LLC, 8.25%, 2012 (n) 370,000 382,025
---------------------------------------------------------------------------------------------------------------------------------
Bruce Mansfield Unit 1, 6.85%, 2034 (z) 1,560,000 1,631,760
---------------------------------------------------------------------------------------------------------------------------------
Edison Mission Energy, 7%, 2017 (n) 930,000 878,850
---------------------------------------------------------------------------------------------------------------------------------
Empresa Nacional de Electricidad S.A., 8.35%, 2013 812,000 917,686
---------------------------------------------------------------------------------------------------------------------------------
Enersis S.A., 7.375%, 2014 1,273,000 1,360,594
---------------------------------------------------------------------------------------------------------------------------------
Exelon Generation Co. LLC, 6.95%, 2011 2,486,000 2,593,430
---------------------------------------------------------------------------------------------------------------------------------
FirstEnergy Corp., 6.45%, 2011 1,699,000 1,754,739
---------------------------------------------------------------------------------------------------------------------------------
HQI Transelec Chile S.A., 7.875%, 2011 1,500,000 1,600,949
---------------------------------------------------------------------------------------------------------------------------------
Intergen N.V., 9%, 2017 (n) 605,000 614,075
---------------------------------------------------------------------------------------------------------------------------------
ISA Capital do Brasil S.A., 7.875%, 2012 (n) 461,000 463,305
---------------------------------------------------------------------------------------------------------------------------------
ISA Capital do Brasil S.A., 8.8%, 2017 (n) 754,000 774,735
---------------------------------------------------------------------------------------------------------------------------------
Mirant Americas Generation LLC, 8.3%, 2011 100,000 98,750
---------------------------------------------------------------------------------------------------------------------------------
Mirant North American LLC, 7.375%, 2013 710,000 706,450
---------------------------------------------------------------------------------------------------------------------------------
NorthWestern Corp., 5.875%, 2014 1,435,000 1,392,716
---------------------------------------------------------------------------------------------------------------------------------
NRG Energy, Inc., 7.375%, 2016 1,230,000 1,214,625
---------------------------------------------------------------------------------------------------------------------------------
Reliant Energy, Inc., 7.875%, 2017 455,000 444,763
---------------------------------------------------------------------------------------------------------------------------------
System Energy Resources, Inc., 5.129%, 2014 (n) 2,029,752 2,008,033
---------------------------------------------------------------------------------------------------------------------------------
TXU Energy Co., 7%, 2013 1,220,000 1,253,075
---------------------------------------------------------------------------------------------------------------------------------
$ 20,968,360
---------------------------------------------------------------------------------------------------------------------------------
TOTAL BONDS $498,992,683
---------------------------------------------------------------------------------------------------------------------------------
FLOATING RATE LOANS - 0.8% (g)(r)
---------------------------------------------------------------------------------------------------------------------------------
AUTOMOTIVE - 0.1%
---------------------------------------------------------------------------------------------------------------------------------
Ford Motor Co., Term Loan B, 8.36%, 2013 $ 559,516 $ 524,430
---------------------------------------------------------------------------------------------------------------------------------
Goodyear Tire & Rubber Co., Second Lien Term Loan, 6.85%, 2014 257,547 242,845
---------------------------------------------------------------------------------------------------------------------------------
$ 767,275
---------------------------------------------------------------------------------------------------------------------------------
BROADCASTING - 0.1%
---------------------------------------------------------------------------------------------------------------------------------
Gray Television, Inc., Delayed Draw Term Loan, 6.86%, 2014 $ 189,537 $ 177,573
---------------------------------------------------------------------------------------------------------------------------------
Univision Communications, Term Loan B, 7.61%, 2014 113,473 104,735
---------------------------------------------------------------------------------------------------------------------------------
$ 282,308
---------------------------------------------------------------------------------------------------------------------------------
CABLE TV - 0.1%
---------------------------------------------------------------------------------------------------------------------------------
Charter Communications Operating LLC, Term Loan, 7.36%, 2014 $ 87,744 $ 82,872
---------------------------------------------------------------------------------------------------------------------------------
CSC Holdings, Inc., Incremental Term Loan, 7.07%, 2013 336,116 322,042
---------------------------------------------------------------------------------------------------------------------------------
Mediacom Illinois LLC, Term Loan A, 7.05%, 2012 302,299 280,760
---------------------------------------------------------------------------------------------------------------------------------
$ 685,674
---------------------------------------------------------------------------------------------------------------------------------
CHEMICALS - 0.1%
---------------------------------------------------------------------------------------------------------------------------------
Celanese AG, Term Loan B, 7.11%, 2014 $ 360,635 $ 347,712
---------------------------------------------------------------------------------------------------------------------------------
CONSUMER GOODS & SERVICES - 0.0%
---------------------------------------------------------------------------------------------------------------------------------
Jarden Corp., Term Loan, 2008 (o) $ 109,940 $ 105,323
---------------------------------------------------------------------------------------------------------------------------------
FOOD & BEVERAGES - 0.1%
---------------------------------------------------------------------------------------------------------------------------------
Dean Foods Co., Term Loan B, 6.86%, 2014 $ 283,455 $ 274,287
---------------------------------------------------------------------------------------------------------------------------------
MEDICAL & HEALTH TECHNOLOGY & SERVICES - 0.1%
---------------------------------------------------------------------------------------------------------------------------------
Community Health Systems, Inc., Term Loan B, 7.76%, 2014 $ 203,038 $ 194,808
---------------------------------------------------------------------------------------------------------------------------------
HCA, Inc., Term Loan B, 7.61%, 2012 453,860 436,638
---------------------------------------------------------------------------------------------------------------------------------
$ 631,446
---------------------------------------------------------------------------------------------------------------------------------
NATURAL GAS - PIPELINE - 0.0%
---------------------------------------------------------------------------------------------------------------------------------
Kinder Morgan, Inc., Term Loan, 7.07%, 2014 $ 97,417 $ 92,425
---------------------------------------------------------------------------------------------------------------------------------
POLLUTION CONTROL - 0.1%
---------------------------------------------------------------------------------------------------------------------------------
Allied Waste North America, Inc., A, Credit Linked Deposit, 6.82%, 2012 $ 134,879 $ 130,900
---------------------------------------------------------------------------------------------------------------------------------
Allied Waste North America, Inc., Term Loan, 6.78%, 2012 235,859 228,901
---------------------------------------------------------------------------------------------------------------------------------
$ 359,801
---------------------------------------------------------------------------------------------------------------------------------
PRINTING & PUBLISHING - 0.1%
---------------------------------------------------------------------------------------------------------------------------------
Idearc, Inc., Term Loan B, 7.36%, 2014 $ 448,631 $ 432,929
---------------------------------------------------------------------------------------------------------------------------------
TOTAL FLOATING RATE LOANS $ 3,979,180
---------------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS - 0.0%
---------------------------------------------------------------------------------------------------------------------------------
PRINTING & PUBLISHING - 0.0%
---------------------------------------------------------------------------------------------------------------------------------
Golden Books Family Entertainment, Inc. (a) 3,683 $ 0
---------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM OBLIGATIONS - 2.8%
---------------------------------------------------------------------------------------------------------------------------------
Citigroup Funding, Inc., 5.25%, due 9/04/07 (y) $ 14,631,000 $ 14,631,000
---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS(k) $517,602,863
---------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES - 0.7% 3,712,708
---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - 100.0% $521,315,571
---------------------------------------------------------------------------------------------------------------------------------
(a) Non-income producing security.
(f) All or a portion of the security has been segregated as collateral for an open futures contract.
(g) The rate shown represents a weighted average coupon rate on settled positions at period end.
(i) Interest only security for which the fund receives interest on notional principal (Par amount). Par amount shown is the
notional principal and does not reflect the cost of the security.
(k) As of August 31, 2007, the trust held securities fair valued in accordance with the policies adopted by the Board of
Trustees, aggregating $488,271,000 and 94.33% of market value. An independent pricing service provided an evaluated bid for
93.94% of the market value.
(n) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the
ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period
end, the aggregate value of these securities was $49,794,069, representing 9.6% of net assets.
(o) All or a portion of this position has not settled. Upon settlement date, interest rates will be determined.
(p) Payment-in-kind security.
(r) Remaining maturities of floating rate loans may be less than stated maturities shown as a result of contractual or optional
prepayments by the borrower. Such prepayments cannot be predicted with certainty. These loans may be subject to restrictions
on resale. Floating rate loans generally have rates of interest which are determined periodically by reference to a base
lending rate plus a premium.
(y) The rate shown represents an annualized yield at time of purchase.
(z) Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale.
These securities generally may be resold in transactions exempt from registration or to the public if the securities are
subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an
acceptable price may be difficult. The trust holds the following restricted securities:
ACQUISITION ACQUISITION CURRENT TOTAL % OF
RESTRICTED SECURITIES DATE COST MARKET VALUE NET ASSETS
--------------------------------------------------------------------------------------------------------------------------------
Bayview Financial Revolving Mortgage
Loan Trust, FRN, 6.12%, 2040 3/01/06 $ 1,160,000 $ 1,159,993
Bosphorus Financial Services Ltd., FRN,
7.16%, 2012 3/08/05 1,500,000 1,507,619
Bruce Mansfield Unit 1, 6.85%, 2034 7/10/07 1,560,000 1,631,760
Capmark Financial Group, Inc., 5.875%, 2012 5/03/07 939,596 832,511
DLJ Commercial Mortgage Corp., 6.04%, 2031 7/23/04 1,969,453 1,975,846
OAO Gazprom, 7.288%, 2037 8/08/07 100,000 102,000
Spirit Master Funding LLC, 5.05%, 2023 7/15/05 1,814,558 1,749,151
ZFS Finance USA Trust V, FRN, 6.5%, 2037 5/03/07 2,503,058 2,329,751
--------------------------------------------------------------------------------------------------------------------------------
Total Restricted Securities $11,288,631 2.2%
=================================
The following abbreviations are used in this report and are defined:
CLN Credit-Linked Note
FRN Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end.
REIT Real Estate Investment Trust
TIPS Treasury Inflation Protected Security
Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless
otherwise indicated. A list of abbreviations is shown below:
AUD Australian Dollar
BRL Brazilian Real
CAD Canadian Dollar
CHF Swiss Franc
CNY Chinese Yuan Renminbi
DKK Danish Krone
EUR Euro
GBP British Pound
JPY Japanese Yen
PLN Polish Zloty
SGD Singapore Dollar
UYU Uruguayan Peso
See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent
semiannual or annual report.
MFS CHARTER INCOME TRUST
SUPPLEMENTAL INFORMATION (UNAUDITED) 8/31/07
(1) PORTFOLIO SECURITIES
The cost and unrealized appreciation and depreciation in the value of the investments owned by the trust as computed on
a federal income tax basis, are as follows:
Aggregate Cost $526,855,291
============
Gross unrealized appreciation $ 4,969,010
Gross unrealized depreciation (14,221,438)
------------
Net unrealized appreciation (depreciation) $ (9,252,428)
============
The aggregate cost above includes prior fiscal year end tax adjustments.
(2) UNFUNDED LOAN COMMITMENTS
As of August 31, 2007, the portfolio had unfunded loan commitments of $20,686, which could be extended at the option of
the borrower, pursuant to the following loan agreements:
UNFUNDED UNREALIZED
LOAN APPRECIATION
BORROWER COMMITMENT (DEPRECIATION)
--------------------------------------------------------------------------------------------------------------------------------
Community Health Systems, Inc., Delayed Draw Term Loan, 2014 $13,391 $ (543)
Univision Communications, Delayed Draw Term Loan, 2014 7,295 55
------------------------------------------------------------------------------------------------------------ ------
$20,686 $ (488)
======= ======
At August 31, 2007, the trust had sufficient cash and/or other liquid securities to cover any commitments under these
contracts.
(3) FINANCIAL INSTRUMENTS
DERIVATIVES
-----------
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS AT 8/31/07
Appreciation and Depreciation in the table below are reported by currency.
NET UNREALIZED
CONTRACTS TO SETTLEMENT CONTRACTS APPRECIATION
TYPE CURRENCY DELIVER/RECEIVE DATE RANGE IN EXCHANGE FOR AT VALUE (DEPRECIATION)
--------------------------------------------------------------------------------------------------------------------------------
APPRECIATION
------------
BUY BRL 3,647,822 9/21/07 $ 1,799,361 $ 1,855,274 $ 55,913
SELL BRL 1,173,600 9/21/07 600,000 596,890 3,110
SELL CAD 2,273,051 9/17/07 2,180,385 2,155,373 25,012
SELL DKK 6,950,047 10/10/07 1,290,224 1,273,712 16,512
BUY EUR 3,076,831 9/17/07 4,097,361 4,195,440 98,079
SELL EUR 6,496,894 9/19/07 8,976,698 8,859,708 116,990
BUY GBP 29,968 9/19/07 59,083 60,411 1,328
SELL GBP 1,114,627 9/19/07 2,295,397 2,246,918 48,479
BUY JPY 292,730,766 9/18/07 2,503,937 2,534,009 30,072
BUY PLN 3,656,216 9/28/07 1,301,561 1,304,357 2,796
SELL SGD 3,968,726 9/04/07 2,605,006 2,601,312 3,694
-----------
$ 401,985
===========
DEPRECIATION
BUY AUD 31,337 9/19/07 $ 26,823 $ 25,592 $ (1,231)
SELL BRL 999,722 9/21/07 507,344 508,456 (1,112)
SELL CAD 1,395,147 9/17/07 1,311,832 1,322,918 (11,086)
BUY CHF 1,483,133 10/04/07 1,247,844 1,231,467 (16,377)
SELL CHF 1,506,288 10/04/07 1,250,000 1,250,692 (692)
BUY CNY 42,072,400 9/28/07 5,605,991 5,584,832 (21,159)
SELL EUR 42,674,070 9/17/07 - 9/19/07 56,981,483 58,193,810 (1,212,327)
BUY GBP 142,332 9/19/07 292,048 286,920 (5,128)
SELL GBP 2,792,144 9/19/07 5,511,994 5,628,533 (116,539)
SELL JPY 3,894,330,647 9/18/07 32,086,930 33,711,080 (1,624,150)
BUY SGD 7,937,452 9/04/07 - 10/04/07 5,245,344 5,208,831 (36,513)
-----------
$(3,046,314)
===========
FUTURES CONTRACTS OUTSTANDING AT 8/31/07
UNREALIZED
EXPIRATION APPRECIATION
DESCRIPTION CONTRACTS VALUE DATE (DEPRECIATION)
--------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bond (Long) 97 $10,821,563 Dec-07 $ 7,306
U.S. Treasury Note 10 yr (Short) 260 28,352,188 Dec-07 (137,003)
--------------------------------------------------------------------------------------------------------------------------------
$(129,697)
=========
SWAP AGREEMENTS AT 8/31/07
UNREALIZED
NOTIONAL CASH FLOWS CASH FLOWS APPRECIATION
EXPIRATION AMOUNT COUNTERPARTY TO RECEIVE TO PAY (DEPRECIATION)
-------------------------------------------------------------------------------------------------------------------------------
CREDIT DEFAULT SWAPS
6/20/09 USD 200,000 JPMorgan Chase Bank 4.1 (fixed rate) (1) $(10,695)
4/20/12 USD 1,320,000 Morgan Stanley Capital Services, Inc. (2) 2.08 (fixed rate) 112,136
Services, Inc.
9/20/12 USD 1,500,000 JPMorgan Chase Bank 0.33% (fixed rate) (3) 1,973
3/20/17 USD 1,250,000 Merrill Lynch International (4) 0.81% (fixed rate) (27,215)
3/20/17 USD 1,350,000 JPMorgan Chase Bank (5) 0.38% (fixed rate) 5,538
3/20/17 USD 1,040,000 Goldman Sachs International (6) 0.40% (fixed rate) (1,353)
6/20/17 USD 2,500,000 Merrill Lynch International (7) 0.91% (fixed rate) (25,855)
--------
$ 54,529
========
(1) Trust to pay notional amount upon a defined credit default event by Abitibi Consolidated, 8.375%, 4/01/15.
(2) Trust to receive notional amount upon a defined credit default event by Argentine Republic, 8.28%, 12/31/33.
(3) Trust to pay notional amount upon a defined credit default event by FNMA, 5.5%, 6/09/33.
(4) Trust to receive notional amount upon a defined credit default event by Waste Management, Inc., 7.375%, 8/01/10.
(5) Trust to receive notional amount upon a defined credit default event by PPG Industries, Inc., 7.05%, 8/15/09.
(6) Trust to receive notional amount upon a defined credit default event by Dover Corp., 6.25%, 6/01/08.
(7) Trust to receive notional amount upon a defined credit default event by New York Times Co., 4.61%, 9/26/12.
At August 31, 2007, the trust had sufficient cash and/or other liquid securities to cover any commitments under these
derivative contracts.
(4) COUNTRY WEIGHTINGS
Country weighting percentages of portfolio holdings based on total net assets as of August 31, 2007, are as follows:
------------------------------------
United States 66.8%
------------------------------------
Japan 5.2%
------------------------------------
Germany 4.7%
------------------------------------
Netherlands 2.8%
------------------------------------
France 2.6%
------------------------------------
Russia 2.4%
------------------------------------
United Kingdom 2.0%
------------------------------------
Canada 1.8%
------------------------------------
Spain 1.5%
------------------------------------
Other Countries 10.2%
------------------------------------
The country weighting percentages include both accrued interest amounts and the equivalent exposure from any derivative
holdings, if applicable.
ITEM 2. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the effectiveness of the registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940 (the "Act")) as conducted within 90 days of
the filing date of this Form N-Q, the registrant's principal financial
officer and principal executive officer have concluded that those
disclosure controls and procedures provide reasonable assurance that the
material information required to be disclosed by the registrant on this
report is recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission's rules and
forms.
(b) There were no changes in the registrant's internal controls over financial
reporting (as defined in Rule 30a-3(d) under the Act) that occurred during
the registrant's last fiscal quarter that have materially affected, or are
reasonably likely to materially affect, the registrant's internal control
over financial reporting.
ITEM 3. EXHIBITS.
File as exhibits as part of this Form a separate certification for each
principal executive officer and principal financial officer of the registrant
as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto.
NOTICE
A copy of the Amended and Restated Declaration of Trust of the Registrant is on
file with the Secretary of State of The Commonwealth of Massachusetts and
notice is hereby given that this instrument is executed on behalf of the
Registrant by an officer of the Registrant as an officer and not individually
and the obligations of or arising out of this instrument are not binding upon
any of the Trustees or shareholders individually, but are binding only upon the
assets and property of the respective constituent series of the Registrant.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: MFS CHARTER INCOME TRUST
-------------------------------------------------------------------
By (Signature and Title)* MARIA F. DWYER
-----------------------------------------------------
Maria F. Dwyer, President
Date: October 16, 2007
----------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* MARIA F. DWYER
-----------------------------------------------------
Maria F. Dwyer, President (Principal Executive
Officer)
Date: October 16, 2007
----------------
By (Signature and Title)* TRACY ATKINSON
-----------------------------------------------------
Tracy Atkinson, Treasurer (Principal Financial Officer
and Accounting Officer)
Date: October 16, 2007
----------------
* Print name and title of each signing officer under his or her signature.