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 811-5440
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MFS INTERMEDIATE 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)
James R. Bordewick, Jr.
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: October 31
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Date of reporting period: July 31, 2004
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ITEM 1. SCHEDULE OF INVESTMENTS.
MFS(R) Mutual Funds
QUARTERLY PORTFOLIO 7/31/04
MFS(R) INTERMEDIATE INCOME TRUST
[graphic omitted]
[logo] M F S(R)
INVESTMENT MANAGEMENT
The Trust is a closed-end investment product. Shares of the Trust are only
available for purchase/sale on the NYSE at the current market price. Shares may
trade at a discount to NAV.
Visit MFS.COM for the latest information about your investment.
o Annual and semiannual reports contain information regarding the specific
securities held in the fund and how the fund has performed over the
period.
o Week in Review provides a look at key events influencing U.S. and global
financial markets for the week.
o MFS Global Perspective is a commentary and analysis of markets around the
globe.
o Chief Investment Strategist Corner is a commentary by James Swanson, MFS'
Chief Investment Strategist.
A fact sheet, annual, and semiannual report for the fund can be accessed by
clicking "Closed End Funds" on the home page. Week in Review, MFS Global
Perspective, and Chief Investment Strategist Corner are located under "Updates
and Announcements."
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PORTFOLIO OF INVESTMENTS (UNAUDITED) 07/31/2004 MFS(R) INTERMEDIATE INCOME TRUST
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ISSUER PAR AMOUNT
(000 OMITTED) $ VALUE
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BONDS - 94.7%
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U.S. BONDS - 66.4%
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Asset Backed & Securitized - 2.4%
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Commercial Mortgage Acceptance Corp., 1.0245%, 2008^^ $96,206 $3,817,175
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Commercial Mortgage Acceptance Corp., 6.04%, 2030 6,000 6,401,243
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DLJ Commercial Mortgage Corp., 0.9064%, 2005^^ 95,100 547,890
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Falcon Franchise Loan LLC, 3.0699%, 2023^^## 16,162 2,249,420
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First Union-Lehman Brothers Bank of America, 6.56%, 2035 5,000 5,415,553
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Multi-Family Capital Access One, Inc., 6.65%, 2024 3,174 3,494,412
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$21,925,693
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Mortgage Backed - 20.6%
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Fannie Mae, 5.669%, 2006 $6,745 $6,986,084
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Fannie Mae, 6.942%, 2007 4,887 5,246,369
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Fannie Mae, 4.652%, 2014 4,989 4,876,818
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Fannie Mae, 6%, 2016 - 2033 29,746 30,638,072
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Fannie Mae, 5.5%, 2017 - 2018 9,761 10,050,284
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Fannie Mae, 5%, 2018 - 2034 25,735 25,475,669
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Fannie Mae, 4.5%, 2019 14,709 14,486,174
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Fannie Mae, 6.5%, 2031 13,681 14,294,137
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Freddie Mac, 6%, 2017 3,696 3,864,674
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Freddie Mac, 5.5%, 2017 4,521 4,650,549
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Freddie Mac, 5%, 2019 - 2023 22,695 23,096,153
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Freddie Mac, 3%, 2021 4,700 4,644,401
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Ginnie Mae, 8.5%, 2005 - 2009 2,308 2,503,321
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Ginnie Mae, 7.5%, 2022 - 2032 3,130 3,367,827
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Ginnie Mae, 8%, 2026 - 2026 842 922,767
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Ginnie Mae, 6.5%, 2028 - 2032 10,598 11,109,633
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Ginnie Mae, 7%, 2031 - 2031 12,784 13,571,631
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Ginnie Mae, 6%, 2033 5,608 5,775,576
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$185,560,139
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U.S. Government Agencies - 17.0%
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Fannie Mae, 5.5%, 2006 $5,500 $5,736,297
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Fannie Mae, 4.75%, 2007 4,000 4,137,996
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Fannie Mae, 6.625%, 2007 5,000 5,472,730
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Fannie Mae, 6%, 2008 10,000 10,793,010
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Federal Home Loan Bank, 2.25%, 2006 10,415 10,317,151
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Federal Home Loan Bank, 3.625%, 2008 17,000 16,787,619
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Freddie Mac, 6.875%, 2010 22,900 25,912,930
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Freddie Mac, 5.125%, 2012 18,600 19,040,429
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Small Business Administration, 7.64%, 2010 5,884 6,468,174
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Small Business Administration, 6.35%, 2021 5,212 5,556,719
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Small Business Administration, 6.34%, 2021 3,513 3,742,981
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Small Business Administration, 6.44%, 2021 3,141 3,358,511
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Small Business Administration, 6.625%, 2021 3,555 3,828,049
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Small Business Administration, 5.34%, 2021 8,414 8,631,336
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Small Business Administration, 4.93%, 2024 2,934 2,899,428
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U.S. Department of Housing & Urban Development, 5.53%, 2008 11,000 11,673,629
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U.S. Department of Housing & Urban Development, 7.198%, 2009 6,000 6,800,034
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U.S. Department of Veteran Affairs, 6%, 2021 2,283 2,328,325
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$153,485,348
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U.S. Treasury Obligations - 26.4%
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U.S. Treasury Bonds, 10.375%, 2009 - 2012 $81,650 $94,515,296
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U.S. Treasury Bonds, 13.875%, 2011 25,500 30,512,331
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U.S. Treasury Bonds, 12%, 2013 42,500 56,066,808
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U.S. Treasury Notes, 4.625%, 2006 10,000 10,355,470
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U.S. Treasury Notes, 4.375%, 2007 5,000 5,178,905
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U.S. Treasury Notes, 6.125%, 2007 15,000 16,289,655
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U.S. Treasury Notes, 2.625%, 2008 7,490 7,293,095
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U.S. Treasury Notes, 4.75%, 2008 1,750 1,835,040
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U.S. Treasury Notes, 6.5%, 2010 4,500 5,093,613
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U.S. Treasury Notes, 4.875%, 2012 5,000 5,209,375
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U.S. Treasury Notes, 4.25%, 2013 6,520 6,432,899
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$238,782,487
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Total U.S.Bonds $599,753,667
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FOREIGN BONDS - 28.3%
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Australia - 0.3%
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Government of Australia, 6.25%, 2015 (International Market Sovereign) AUD 4,013 $2,885,080
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Austria - 1.6%
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Republic of Austria, 5.5%, 2007 (International Market Sovereign) EUR 8,548 $11,016,731
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Republic of Austria, 5%, 2012 (International Market Sovereign) 1,994 2,545,258
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Republic of Austria, 4.65%, 2018 (International Market Sovereign) 596 727,581
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$14,289,570
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Belgium - 0.9%
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Kingdom of Belgium, 3.75%, 2009 (International Market Sovereign) EUR 3,736 $4,539,952
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Kingdom of Belgium, 5%, 2012 (International Market Sovereign) 2,817 3,595,563
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$8,135,515
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Brazil - 0.4%
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Federal Republic of Brazil, 8%, 2014 (Emerging Market Sovereign) $3,474 $3,282,689
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Bulgaria - 0.2%
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Republic of Bulgaria, 8.25%, 2015 (Emerging Market Sovereign) $198 $235,125
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Republic of Bulgaria, 8.25%, 2015 (Emerging Market Sovereign)## 1,634 1,940,375
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$2,175,500
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Canada - 1.8%
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Government of Canada, 5.5%, 2009 (International Market Sovereign) CAD 8,353 $6,631,956
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Government of Canada, 5.25%, 2012 (International Market Sovereign) 604 470,679
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Government of Canada, 8%, 2023 (International Market Sovereign) 372 372,260
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Province of Ontario, 7%, 2005 (International Market Agencies) $8,020 8,399,354
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$15,874,249
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Chile - 0.1%
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HQI Transelec Chile S.A., 7.875%, 2011 (Utilities - Electric Power) $686 $781,270
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Denmark - 1.1%
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Kingdom of Denmark, 7%, 2007 (International Market Sovereign) DKK 13,392 $2,415,174
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Kingdom of Denmark, 6%, 2009 - 2011 (International Market Sovereign) 33,665 6,045,478
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Kingdom of Denmark, 5%, 2013 (International Market Sovereign) 10,198 1,726,530
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$10,187,182
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Finland - 1.9%
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Republic of Finland, 2.75%, 2006 (International Market Sovereign) EUR 6,769 $8,157,063
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Republic of Finland, 3%, 2008 (International Market Sovereign) 7,385 8,785,326
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$16,942,389
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France - 1.6%
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Republic of France, 4.75%, 2007 (International Market Sovereign) EUR 5,003 $6,311,002
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Republic of France, 4%, 2009 (International Market Sovereign) 5,997 7,347,607
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SG Capital Trust I, 7.875%, 2049 (Banks & Credit Companies) 375 529,358
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$14,187,967
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Germany - 7.1%
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Aries Vermogensverwaltungs, 9.6%, 2014 (Emerging Market Sovereign)## $2,000 $2,115,000
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Federal Republic of Germany, 4%, 2007 (International Market Sovereign) EUR 5,583 6,896,227
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Federal Republic of Germany, 3.5%, 2008 (International Market Sovereign) 17,297 20,925,179
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Federal Republic of Germany, 5.25%, 2010 (International Market Sovereign) 3,154 4,093,351
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KFW International Finance, Inc., 4.25%, 2005 (International Market Agencies) $10,000 10,145,660
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KFW International Finance, Inc., 2.375%, 2006 (International Market Agencies) 4,120 4,088,779
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KFW International Finance, Inc., 3.25%, 2007 (International Market Agencies) 4,200 4,189,240
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Kreditanstalt fur Wiederaufbau, 3.25%, 2008 (International Market Agencies) EUR 3,268 3,930,323
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Landesbank Baden-Wurttemberg, 5.125%, 2007 (International Market Agencies) $7,700 8,008,724
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$64,392,483
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Ireland - 1.9%
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Republic of Ireland, 4.25%, 2007 (International Market Sovereign) EUR 13,778 $17,144,323
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Israel - 0.5%
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State of Israel, 5.125%, 2014 (International Market Sovereign) $5,000 $4,820,930
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Malaysia - 0.2%
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Petroliam Nasional Berhad, 7.75%, 2015 (Emerging Market Agencies) $1,681 $1,920,358
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Mexico - 1.3%
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BBVA Bancomer Capital Trust I, 10.5%, 2011 (Banks & Credit Companies)## $3,544 $3,871,820
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Pemex Project Funding Master Trust, 8.625%, 2022 (Emerging Market Agencies) 2,204 2,380,320
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Petroleos Mexicanos, 9.375%, 2008 (Emerging Market Agencies) 2,318 2,688,880
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United Mexican States, 8.125%, 2019 (Emerging Market Sovereign) 2,205 2,431,013
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United Mexican States, 8%, 2022 (Emerging Market Sovereign) 198 211,860
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$11,583,893
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Netherlands - 2.2%
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Kingdom of Netherlands, 5.75%, 2007 (International Market Sovereign) EUR 7,310 $9,396,122
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Kingdom of Netherlands, 3.75%, 2009 (International Market Sovereign) 8,633 10,485,323
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$19,881,445
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New Zealand - 1.3%
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Government of New Zealand, 7%, 2009 (International Market Sovereign) NZD 3,533 $2,317,458
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Government of New Zealand, 6.5%, 2013 (International Market Sovereign) 14,447 9,276,834
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$11,594,292
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Panama - 0.2%
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Republic of Panama, 9.375%, 2023 - 2029 (Emerging Market Sovereign) $1,801 $1,975,606
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Portugal - 0.4%
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Republic of Portugal, 5.45%, 2013 (International Market Sovereign) EUR 2,985 $3,917,804
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Qatar - 0.3%
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State of Qatar, 9.75%, 2030 (Emerging Market Sovereign) $2,165 $3,003,938
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Russia - 0.2%
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Russian Ministry of Finance, 12.75%, 2028 (Emerging Market Sovereign) $1,006 $1,464,434
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South Africa - 0.2%
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Republic of South Africa, 9.125%, 2009 (Emerging Market Sovereign) $1,935 $2,254,275
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South Korea - 0.2%
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Korea Development Bank, 4.75%, 2009 (Banks & Credit Companies) $1,700 $1,698,405
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Spain - 2.0%
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Kingdom of Spain, 7%, 2005 (International Market Sovereign) $7,800 $8,152,100
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Kingdom of Spain, 6%, 2008 (International Market Sovereign) EUR 2,819 3,709,392
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Kingdom of Spain, 5.35%, 2011 (International Market Sovereign) 4,655 6,073,152
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$17,934,644
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United Kingdom - 0.4%
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United Kingdom Treasury, 7.25%, 2007 (International Market Sovereign) GBP 1,377 $2,669,515
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United Kingdom Treasury, 5%, 2012 (International Market Sovereign) 496 895,784
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$3,565,299
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Total Foreign Bonds $255,893,540
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Total Bonds (Identified Cost,$850,106,608) $855,647,207
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ISSUER SHARES $ VALUE
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Collateral for Securities Loaned - 8.1%
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Navigator Securities Lending Prime Portfolio, at Cost and Net Asset Value 73,198,354 $73,198,354
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ISSUER PAR AMOUNT
(000 OMITTED) $ VALUE
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REPURCHASE AGREEMENT - 3.9%
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Goldman Sachs, 1.36%, dated 07/30/2004, due 08/02/2004,
total to be received $35,232,993 (secured by various U.S.
Treasury and Federal Agency obligations in a jointly traded account), at Cost $35,229 $35,229,000
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Total Investments (Identified Cost, $958,533,962) $964,074,561
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OTHER ASSETS, LESS LIABILITIES - (6.7)% (60,511,861)
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Net Assets - 100.0% $903,562,700
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## SEC Rule 144A restriction
^^ Interest only security.
Abbreviations have been used throughout this report to indicate amounts shown in currencies other than the U.S.dollar.A list of
abbreviations is shown below
AUD = Australian Dollar
CAD = Canadian Dollar
DKK = Danish Krone
EUR = Euro
GBP = British Pound
JPY = Japanese Yen
NZD = New Zealand Dollar
SEK = Swedish Kroner
SEE ATTACHED SCHEDULES.SEE NOTES TO FINANCIAL STATEMENTS AS DISCLOSED IN THE MOST RECENT SEMI-ANNUAL OR ANNUAL REPORT WHICH ARE
INCORPORATED BY REFERENCE.
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SUPPLEMENTAL SCHEDULES (UNAUDITED)
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(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 $981,559,924
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Gross unrealized appreciation $13,971,883
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Gross unrealized depreciation (31,457,246)
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Net unrealized appreciation $(17,485,363)
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(2) FINANCIAL INSTRUMENTS
The trust trades financial instruments with off-balance-sheet risk in the normal course of its investing activities in order to
manage exposure to market risks such as interest rates and foreign currency exchange rates.These financial instruments include
forward foreign currency exchange contracts.The notional or contractual amounts of these instruments represent the investment the
trust has in particular classes of financial instruments and does not necessarily represent the amounts potentially subject to
risk.The measurement of the risks associated with these instruments is meaningful only when all related and offsetting
transactions are considered.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
CONTRACTS TO CONTRACTS APPRECIATION
SETTLEMENT DATE DELIVER/RECEIVE IN EXCHANGE FOR AT VALUE (DEPRECIATION)
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SALES
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8/16/04 AUD 3,613,449 $2,525,375 $2,528,529 $(3,154)
8/16/04 DKK 63,451,541 10,305,083 10,256,375 48,708
8/4/2004-10/6/2004 EUR 135,985,022 164,398,132 163,429,207 968,925
8/17/04 GBP 2,334,326 4,264,551 4,240,006 24,545
8/9/04 NZD 18,480,562 11,570,572 11,736,278 (165,706)
8/16/04 SEK 15,560,969 2,043,511 2,025,769 17,742
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$195,107,224 $194,216,164 $891,060
=========================================================================
PURCHASES
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8/4/04 EUR 29,472,092 $35,705,203 $35,428,090 $(277,113)
8/17/04 GBP 1,250,000 2,314,281 2,270,466 (43,815)
8/11/04 JPY 1,314,263,789 12,018,830 11,821,134 (197,696)
8/16/04 SEK 33,224,994 4,414,150 4,325,320 (88,830))
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$54,452,464 $53,845,010 $(607,454)
=========================================================================
At July 31, 2004, forward foreign currency purchases and sales under master netting agreements excluded above amounted to a net
payable of $213, 281 with Merrill Lynch International.
At July 31, 2004 the trust had sufficient cash and/or securities to cover any commitments under these contracts.
(C) 2004 MFS Investment Management
ITEM 2. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the registrant's disclosure controls and
procedures 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 Investment Company Act of
1940 (the "Act")) that occurred during the registrant's last fiscal quarter
that has materially affected, or is 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.
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 INTERMEDIATE INCOME TRUST
By (Signature and Title)* ROBERT J. MANNING
----------------------------------------------------
Robert J. Manning, President
Date: September 22, 2004
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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)* ROBERT J. MANNING
----------------------------------------------------
Robert J. Manning, President
(Principal Executive Officer)
Date: September 22, 2004
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By (Signature and Title)* RICHARD M. HISEY
----------------------------------------------------
Richard M. Hisey, Treasurer
(Principal Financial Officer and Accounting Officer)
Date: September 22, 2004
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* Print name and title of each signing officer under his or her signature.