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 811-4975
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MFS MULTIMARKET 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) MULTIMARKET
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) MULTIMARKET INCOME TRUST
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ISSUER PAR AMOUNT
(000 OMITTED) $ VALUE
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BONDS - 95.3%
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U.S. BONDS - 61.0%
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Advertising & Broadcasting - 2.2%
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Allbritton Communications Co., 7.75%, 2012 $1,000 $987,500
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Clear Channel Communications, Inc., 6.5%, 2005 EUR 275 341,631
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DIRECTV Holdings LLC, 8.375%, 2013 600 672,000
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Lamar Media Corp., 7.25%, 2013 $1,370 1,414,525
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Muzak LLC, 10%, 2009 435 382,800
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Paxson Communications Corp., 0% to 2006, 12.25% to 2009 2,275 1,984,938
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Radio One, Inc., 8.875%, 2011 1,425 1,574,625
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Spanish Broadcasting System, Inc., 9.625%, 2009 1,400 1,473,500
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XM Satellite Radio Holdings, Inc., 0% to 2005, 14% to 2009 358 341,018
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XM Satellite Radio, Inc., 12%, 2010 901 1,031,645
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Young Broadcasting, Inc., 8.5%, 2008 2,750 2,880,625
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$13,084,807
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Aerospace - 1.1%
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BAE Systems Holdings, Inc., 6.4%, 2011## $1,922 $2,066,896
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Hexcel Corp., 9.875%, 2008 1,215 1,351,688
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Hexcel Corp., 9.75%, 2009 800 840,000
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K&F Industries, Inc., 9.25%, 2007 157 160,925
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K&F Industries, Inc., 9.625%, 2010 1,500 1,638,750
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$6,058,259
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Airlines - 0.6%
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Continental Airlines, Inc., 7.568%, 2006 $580 $441,210
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Continental Airlines, Inc., 6.545%, 2019 2,322 2,186,240
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Continental Airlines, Inc., 7.566%, 2020 1,077 847,515
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$3,474,965
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Apparel Manufacturers - 0%
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WestPoint Stevens, Inc., 7.875%, 2005 - 2008 $3,375 $21,094
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Asset Backed & Securitized - 9.3%
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Airplane Pass-Through Trust, 10.875%, 2019** $247 $1,235
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Amresco Commercial Mortgage Funding I, 7%, 2029 3,570 3,801,353
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Asset Securitization Corp., 8.0041%, 2026 1,878 1,883,903
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CPS Auto Receivables Trust, 2.89%, 2009## 910 905,290
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Commercial Mortgage Acceptance Corp., 5.44%, 2013## 3,500 3,251,082
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Credit Suisse First Boston Mortgage, 6.38%, 2035 2,385 2,589,734
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DLJ Commercial Mortgage Corp., 6.04%, 2031 2,000 1,973,313
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Deutsche Mortgage & Asset Receiving Corp., 7.5%, 2031 1,847 1,450,296
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Falcon Auto Dealership LLC, 3.8486%, 2023^^ 9,214 1,680,647
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First Union National Bank Commercial Mortgage Trust, 0.9739%, 2043##^^ 31,168 1,573,577
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First Union-Lehman Brothers Bank of America, 0.549%, 2028^^ 79,276 1,825,967
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First Union-Lehman Brothers Commercial Mortgage Trust, 7%, 2029## 1,847 1,998,212
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First Union-Lehman Brothers Commercial Mortgage Trust, 7.5%, 2029 1,847 1,888,241
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GE Capital Commercial Mortgage Corp., 6.496%, 2033 2,385 2,598,903
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GMAC Commercial Mortgage Securities, Inc., 6.02%, 2033 2,542 2,348,130
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GMAC Commercial Mortgage Securities, Inc., 7.644%, 2034## 1,853 1,943,597
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Lehman Brothers Commercial Conduit Mortgage Trust, 0.9668%, 2028^^ 22,578 845,364
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Morgan Stanley Capital I, Inc., 6.86%, 2010 2,215 2,335,565
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Morgan Stanley Capital I, Inc., 1.5921%, 2014^^## 14,915 1,148,342
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Mortgage Capital Funding, Inc., 7.214%, 2007 2,250 2,254,358
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Mortgage Capital Funding, Inc., 0.8984%, 2031^^ 23,437 627,796
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Mortgage Capital Funding, Inc., 6.337%, 2031 2,385 2,561,126
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Multi-Family Capital Access One, Inc., 6.65%, 2024 151 165,808
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Nationslink Funding Corp., 5%, 2009 4,560 4,137,724
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Residential Accredit Loans, Inc., 7.75%, 2027 1,337 1,335,248
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TIAA Retail Estate CDO, Ltd., 7.17%, 2032## 4,142 4,409,616
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$51,534,427
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Automotive - 3.0%
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DaimlerChrysler N.A.Holdings Corp., 8.5%, 2031 $1,251 $1,468,767
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Dana Corp., 9%, 2011 1,210 1,427,800
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Ford Motor Credit Co., 7.875%, 2010 2,058 2,246,805
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Ford Motor Credit Co., 7%, 2013 1,000 1,017,856
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General Motors Acceptance Corp., 6%, 2006 EUR 375 472,474
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General Motors Acceptance Corp., 8%, 2031 $1,367 1,388,104
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Lear Corp., 8.11%, 2009 4,725 5,409,355
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Metaldyne Corp., 11%, 2012 600 534,000
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TRW Automotive, Inc., 9.375%, 2013 567 646,380
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TRW Automotive, Inc., 11%, 2013 130 156,000
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Tenneco Automotive, Inc., 10.25%, 2013 1,705 1,943,700
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$16,711,241
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Banks & Credit Companies - 2.2%
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Abbey National Capital Trust I, 8.963%, 2049 $2,109 $2,696,595
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Credit Suisse First Boston (USA), Inc., 6.5%, 2012 3,033 3,291,469
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Popular North America, Inc., 4.25%, 2008 1,525 1,534,583
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RBS Capital Trust II, 6.425%, 2049 833 804,285
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Wachovia Corp., 4.875%, 2014 3,796 3,662,662
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$11,989,594
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Basic Industry - 0.2%
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Trimas Corp., 9.875%, 2012 $1,085 $1,133,825
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Broadcast & Cable TV - 4.6%
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CSC Holdings, Inc., 8.125%, 2009 $3,469 $3,607,760
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Charter Communications, Inc., 8.625%, 2009 3,300 2,491,500
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Continental Cablevision, Inc., 9.5%, 2013 7,341 8,121,943
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Lenfest Communications, Inc., 10.5%, 2006 500 561,304
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Mediacom Broadband LLC, 11%, 2013 2,600 2,665,000
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TCI Communications Financing III, 9.65%, 2027 5,000 5,866,210
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TCI Communications, Inc., 9.8%, 2012 1,135 1,435,903
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$24,749,620
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Brokerage & Asset Managers - 1.0%
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Goldman Sachs Group, Inc., 5.7%, 2012 $2,665 $2,731,457
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Morgan Stanley Dean Witter, Inc., 6.6%, 2012 2,538 2,756,430
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$5,487,887
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Building - 1.0%
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American Standard Cos., Inc., 7.375%, 2008 $1,015 $1,106,350
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Building Materials Corp.of America, 7.75%, 2014## 800 792,000
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D.R.Horton, Inc., 8%, 2009 1,565 1,744,975
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Jacuzzi Brands, Inc., 9.625%, 2010 500 540,000
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Williams Scotsman, Inc., 9.875%, 2007 1,455 1,440,450
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Williams Scotsman, Inc., 10%, 2008 205 222,425
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$5,846,200
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Business Services - 1.6%
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Iron Mountain, Inc., 8.625%, 2013 $985 $1,057,644
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Iron Mountain, Inc., 7.75%, 2015 1,630 1,666,675
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Lucent Technologies, Inc., 5.5%, 2008 2,050 1,937,250
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Unisys Corp., 7.875%, 2008 2,655 2,708,100
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Xerox Corp., 7.625%, 2013 1,415 1,450,375
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$8,820,044
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Chemicals - 1.2%
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Equistar Chemicals LP, 10.625%, 2011 $1,225 $1,359,750
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Huntsman International LLC, 10.125%, 2009 1,900 1,933,250
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JohnsonDiversey Holding, Inc., 0% to 2007, 10.67% to 2013 1,465 1,135,375
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Lyondell Chemical Co., 11.125%, 2012 1,500 1,674,375
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Nalco Co., 7.75%, 2011## 695 722,800
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$6,825,550
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Consumer Goods & Services - 0.3%
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KinderCare Learning Centers, Inc., 9.5%, 2009 $1,113 $1,132,478
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Remington Arms Co., Inc., 10.5%, 2011 500 490,000
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$1,622,478
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Containers - 0.7%
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Owens-Brockway Glass Container, Inc., 8.875%, 2009 $515 $560,063
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Owens-Brockway Glass Container, Inc., 8.25%, 2013 2,090 2,189,275
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Pliant Corp., 13%, 2010 1,190 1,088,375
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$3,837,713
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Defense Electronics - 0.3%
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L-3 Communications Holdings, Inc., 7.625%, 2012 $1,455 $1,553,213
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Energy - Independent - 0.6%
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Chesapeake Energy Corp., 7.5%, 2014## $2,195 $2,304,750
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Ocean Energy, Inc., 4.375%, 2007 908 920,800
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$3,225,550
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Entertainment - 1.2%
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AMC Entertainment, Inc., 9.5%, 2011 $1,224 $1,248,480
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Loews Cineplex Entertainment Corp., 9%, 2014 205 205,000
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News America Holdings, 7.7%, 2025 517 591,733
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News America, Inc., 6.55%, 2033 529 540,710
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Six Flags, Inc., 9.75%, 2013 1,500 1,387,500
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Turner Broadcasting System, Inc., 8.375%, 2013 419 494,613
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Walt Disney Co., 6.75%, 2006 2,140 2,265,040
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$6,733,076
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Financial Institutions - 1.0%
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Capital One Bank, 4.25%, 2008 $1,296 $1,283,941
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Refco Finance Holdings LLC, 9%, 2012## 260 260,000
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SLM Corp., 1.88%, 2007 4,120 4,126,555
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$5,670,496
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Food & Non-Alcoholic Beverages - 0.1%
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Seminis Vegetable Seeds, Inc., 10.25%, 2013 $360 $394,200
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Forest & Paper Products - 1.2%
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Buckeye Technologies, Inc., 9.25%, 2008 $2,150 $2,144,625
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Buckeye Technologies, Inc., 8.5%, 2013 1,675 1,721,063
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Georgia Pacific Corp., 9.375%, 2013 1,220 1,415,200
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International Paper Co., 5.375%, 2006 EUR 140 175,205
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MeadWestvaco Corp., 6.8%, 2032 $1,345 1,342,637
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$6,798,730
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Gaming & Lodging - 1.9%
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GEO Group, Inc., 8.25%, 2013 $1,110 $1,126,650
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Hilton Hotels Corp., 7.625%, 2012 1,100 1,214,125
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MGM Mirage, Inc., 8.375%, 2011 1,550 1,658,500
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Pinnacle Entertainment, Inc., 8.75%, 2013 650 646,750
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Royal Caribbean Cruises Ltd., 8%, 2010 1,210 1,312,850
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Starwood Hotels & Resorts Worldwide, Inc., 7.875%, 2012 2,600 2,801,500
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Venetian Casino Resort LLC, 11%, 2010 1,525 1,738,500
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$10,498,875
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Industrial - 0.3%
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MSW Energy Holdings LLC, 7.375%, 2010 $1,045 $1,065,900
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Valmont Industries, Inc., 6.875%, 2014## 500 495,000
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$1,560,900
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Insurance - 0.6%
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MetLife, Inc., 6.375%, 2034 $2,140 $2,162,250
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Prudential Funding Corp., 6.6%, 2008## 1,230 1,350,833
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$3,513,083
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Insurance - Property & Casualty - 0.6%
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Allstate Corp., 7.2%, 2009 $1,668 $1,914,168
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Fund American Cos., Inc., 5.875%, 2013 1,364 1,358,626
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$3,272,794
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Machinery & Tools - 1.9%
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AGCO Corp., 9.5%, 2008 $2,000 $2,170,000
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Amsted Industries, Inc., 10.25%, 2011## 1,845 1,992,600
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Manitowoc Co., Inc., 10.5%, 2012 1,180 1,348,150
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Terex Corp., 10.375%, 2011 1,140 1,273,950
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Terex Corp., 9.25%, 2011 1,380 1,535,250
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United Rentals, Inc., 6.5%, 2012 2,450 2,364,250
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$10,684,200
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Medical & Health Technology & Services - 0.6%
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Alliance Imaging, Inc., 10.375%, 2011 $1,600 $1,660,000
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Fisher Scientific International, Inc., 8.125%, 2012 1,133 1,239,219
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Mariner Health Care, Inc., 8.25%, 2013## 255 270,300
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$3,169,519
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Metals & Mining - 0.5%
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Foundation PA Coal Co., 7.25%, 2014## $250 $251,875
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Peabody Energy Corp., 6.875%, 2013 340 350,200
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Peabody Energy Corp., 5.875%, 2016 1,000 922,500
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Phelps Dodge Corp., 8.75%, 2011 501 599,253
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U.S. Steel Corp., 9.75%, 2010 850 945,625
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$3,069,453
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Mortgage Backed - 1.1%
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Fannie Mae, 6%, 2016 - 2017 $2,024 $2,114,448
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Fannie Mae, 6.5%, 2031 - 2032 3,720 3,886,861
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$6,001,309
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Natural Gas - Distribution - 0.8%
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AmeriGas Partners LP, 8.875%, 2011 $1,635 $1,778,063
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CenterPoint Energy Resources Corp., 7.875%, 2013 2,433 2,810,940
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$4,589,003
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Natural Gas - Pipeline - 1.3%
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ANR Pipeline Co., 8.875%, 2010 $440 $485,100
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Kinder Morgan Energy Partners LP, 7.3%, 2033 2,578 2,753,951
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Southern Natural Gas Co., Inc., 8.875%, 2010 1,540 1,697,850
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Williams Cos., Inc., 7.125%, 2011 2,100 2,184,000
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$7,120,901
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Oils - 0.3%
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Valero Energy Corp., 6.875%, 2012 $1,331 $1,462,406
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Pharmaceuticals - 0.2%
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Schering-Plough Corp., 6.5%, 2033 $1,002 $1,026,050
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Pollution Control - 0.4%
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Allied Waste North America, Inc., 7.875%, 2013 $2,375 $2,484,844
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Printing & Publishing - 1.3%
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Dex Media East LLC, 9.875%, 2009 $1,500 $1,695,000
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Dex Media West LLC, 9.875%, 2013 1,490 1,679,975
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Hollinger International, Inc., 9%, 2010 800 928,000
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Mail-Well Corp., 9.625%, 2012 1,050 1,128,750
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MediaNews Group, Inc., 6.875%, 2013 1,710 1,658,700
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Reed Elsevier Capital, Inc., 5.75%, 2008 EUR 125 161,681
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$7,252,106
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Real Estate - 0.3%
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Kimco Realty Corp., 6%, 2012 $1,399 $1,468,557
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Retailers - 1.3%
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Gap, Inc., 10.3%, 2008 $1,080 $1,312,200
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J. Crew Operating Corp., 10.375%, 2007 1,100 1,122,000
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Levi Strauss & Co., 7%, 2006 2,325 2,255,250
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Rite Aid Corp., 9.5%, 2011 1,760 1,931,600
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Rite Aid Corp., 9.25%, 2013 815 853,713
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$7,474,763
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Supermarkets - 0.3%
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Roundy's, Inc., 8.875%, 2012 $1,650 $1,728,375
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Supranational - 0.2%
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European Investment Bank, 5.375%, 2012 EUR 750 $980,763
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Telecommunications - Wireless - 1.5%
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Alamosa Holdings, Inc., 11%, 2010 $1,251 $1,372,973
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Centennial Communications Corp., 10.125%, 2013 2,220 2,286,600
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Crown Castle International Corp., 7.5%, 2013 1,755 1,750,613
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Dobson Communications Corp., 8.875%, 2013 1,695 1,279,725
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Rural Cellular Corp., 9.75%, 2010 79 72,680
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Western Wireless Corp., 9.25%, 2013 1,715 1,753,588
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$8,516,179
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Telecommunications - Wireline - 1.3%
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Citizens Communications Co., 9%, 2031 $851 $834,491
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Qwest Services Corp., 14%, 2010## 1,600 1,874,000
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Sprint Capital Corp., 6.875%, 2028 1,501 1,493,768
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Verizon New York, Inc., 6.875%, 2012 2,566 2,784,521
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$6,986,780
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Tobacco - 0.1%
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R.J.Reynolds Tobacco Holdings, Inc., 7.25%, 2012 $828 $803,160
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U.S. Government Agencies - 0.3%
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Small Business Administration, 5.34%, 2021 $1,683 $1,726,267
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U.S. Treasury Obligations - 5.5%
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U.S. Treasury Notes, 3.375%, 2007 ### $22,003 $23,584,627
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U.S. Treasury Notes, 3.625%, 2008 6,300 6,895,356
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$30,479,983
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Utilities - Electric Power - 5.0%
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BVPS II Funding Corp., 8.68%, 2017 $846 $956,496
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Beaver Valley Funding Corp., 9%, 2017 4,562 5,215,009
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CMS Energy Corp., 8.5%, 2011 1,300 1,365,000
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Calpine Corp., 8.5%, 2011 750 468,750
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Calpine Corp., 8.75%, 2013## 1,255 1,004,000
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DPL, Inc., 6.875%, 2011 1,692 1,721,610
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Dynegy Holdings, Inc., 9.875%, 2010## 1,600 1,748,000
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MidAmerican Energy Holdings Co., 3.5%, 2008 2,437 2,354,586
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PG&E Corp., 6.875%, 2008## 400 424,500
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PSEG Energy Holdings LLC, 7.75%, 2007 2,350 2,479,250
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Reliant Resources, Inc., 9.25%, 2010 490 521,850
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Reliant Resources, Inc., 9.5%, 2013 575 618,125
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System Energy Resources, Inc., 5.129%, 2014## 2,898 2,850,560
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TXU Corp., 6.375%, 2006 3,943 4,154,972
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W3A Funding Corp., 8.09%, 2017 1,945 2,159,950
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$28,042,658
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Total U.S.Bonds $339,485,897
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FOREIGN BONDS - 34.3%
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Argentina - 0%
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Central Bank of Argentina, 2%, 2018 (Emerging Market Sovereign) ARS 274 $53,100
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Republic of Argentina, 1.234%, 2012 (Emerging Market Sovereign) $179 121,469
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$174,569
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Australia - 0.8%
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Burns, Philp & Co.Ltd., 9.75%, 2012 (Food & Non-Alcoholic Beverages) $3,480 $3,627,900
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Government of Australia, 6.25%, 2015 (International Market Sovereign) AUD 1,353 972,717
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$4,600,617
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Austria - 0.9%
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Republic of Austria, 5.5%, 2007 (International Market Sovereign) EUR 2,904 $3,742,698
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Republic of Austria, 5%, 2012 (International Market Sovereign) 953 1,216,465
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Republic of Austria, 4.65%, 2018 (International Market Sovereign) 218 266,128
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$5,225,291
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Belgium - 0.5%
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Kingdom of Belgium, 3.75%, 2009 (International Market Sovereign) EUR 1,209 $1,469,166
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Kingdom of Belgium, 5%, 2012 (International Market Sovereign) 1,078 1,375,938
-----------------------------------------------------------------------------------------------------------------------------------
$2,845,104
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Brazil - 1.6%
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Federal Republic of Brazil, 2.125%, 2012 (Emerging Market Sovereign) $1,402 $1,202,522
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Federal Republic of Brazil, 8%, 2014 (Emerging Market Sovereign) 6,478 6,122,071
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Federal Republic of Brazil, 2.0625%, 2024 (Emerging Market Sovereign) 314 254,340
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Federal Republic of Brazil, 11%, 2040 (Emerging Market Sovereign) 1,345 1,318,100
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Telemig Celular Participacoes S.A., 8.75%, 2009 (Special Products & Services)## 28 26,320
-----------------------------------------------------------------------------------------------------------------------------------
$8,923,353
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Bulgaria - 0.2%
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Republic of Bulgaria, 8.25%, 2015 (Emerging Market Sovereign)## $898 $1,066,375
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Canada - 2.2%
-----------------------------------------------------------------------------------------------------------------------------------
Abitibi-Consolidated, Inc., 8.3%, 2005 (Forest & Paper Products) $2,608 $2,712,320
-----------------------------------------------------------------------------------------------------------------------------------
Abitibi-Consolidated, Inc., 6.95%, 2006 (Forest & Paper Products) 2,500 2,584,375
-----------------------------------------------------------------------------------------------------------------------------------
EnCana Holdings Finance Corp., 5.8%, 2014 (Energy - Independent) 1,362 1,404,985
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Government of Canada, 5.5%, 2009 (International Market Sovereign) CAD 2,649 2,103,203
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Government of Canada, 5.25%, 2012 (International Market Sovereign) 585 455,872
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Government of Canada, 8%, 2023 (International Market Sovereign) 136 136,095
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Nova Chemicals Corp., 7.4%, 2009 (Chemicals) $1,358 1,429,295
-----------------------------------------------------------------------------------------------------------------------------------
Nova Chemicals Corp., 6.5%, 2012 (Chemicals) 1,350 1,343,250
-----------------------------------------------------------------------------------------------------------------------------------
$12,169,395
-----------------------------------------------------------------------------------------------------------------------------------
Cayman Islands - 0.7%
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Mizuho Financial Group, Inc., 4.75%, 2014 (Banks & Credit Companies)## EUR 127 $154,335
-----------------------------------------------------------------------------------------------------------------------------------
Triton Energy Ltd., 9.25%, 2005 (Energy - Integrated) $3,500 3,630,641
-----------------------------------------------------------------------------------------------------------------------------------
$3,784,976
-----------------------------------------------------------------------------------------------------------------------------------
Chile - 0.7%
-----------------------------------------------------------------------------------------------------------------------------------
Empresa Nacional de Electricidad S.A., 8.35%, 2013 (Utilities - Electric Power) $1,915 $2,088,556
-----------------------------------------------------------------------------------------------------------------------------------
Enersis S.A., 7.375%, 2014 (Utilities - Electric Power) 15 15,099
-----------------------------------------------------------------------------------------------------------------------------------
Enersis S.A., 7.375%, 2014 (Utilities - Electric Power)## 1,257 1,265,321
-----------------------------------------------------------------------------------------------------------------------------------
HQI Transelec Chile S.A., 7.875%, 2011 (Utilities - Electric Power) 700 797,214
-----------------------------------------------------------------------------------------------------------------------------------
$4,166,190
-----------------------------------------------------------------------------------------------------------------------------------
Colombia - 0.2%
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Colombia, 10.75%, 2013 (Emerging Market Sovereign) $513 $573,278
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Colombia, 11.75%, 2020 (Emerging Market Sovereign) 593 681,950
-----------------------------------------------------------------------------------------------------------------------------------
$1,255,228
-----------------------------------------------------------------------------------------------------------------------------------
Denmark - 0.6%
-----------------------------------------------------------------------------------------------------------------------------------
Allianz AG, 5.5%, 2049 (Insurance - Property & Casualty) EUR 140 $172,095
-----------------------------------------------------------------------------------------------------------------------------------
Kingdom of Denmark, 7%, 2007 (International Market Sovereign) DKK 6,600 1,190,274
-----------------------------------------------------------------------------------------------------------------------------------
Kingdom of Denmark, 6%, 2009 (International Market Sovereign) 8,242 1,474,193
-----------------------------------------------------------------------------------------------------------------------------------
Kingdom of Denmark, 5%, 2013 (International Market Sovereign) 3,993 676,018
-----------------------------------------------------------------------------------------------------------------------------------
$3,512,580
-----------------------------------------------------------------------------------------------------------------------------------
El Salvador - 0%
-----------------------------------------------------------------------------------------------------------------------------------
Republic of El Salvador, 8.25%, 2032 (Emerging Market Sovereign) $41 $38,745
-----------------------------------------------------------------------------------------------------------------------------------
Finland - 1.1%
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Finland, 2.75%, 2006 (International Market Sovereign) EUR 2,492 $3,003,014
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Finland, 3%, 2008 (International Market Sovereign) 2,718 3,233,381
-----------------------------------------------------------------------------------------------------------------------------------
$6,236,395
-----------------------------------------------------------------------------------------------------------------------------------
France - 2.1%
-----------------------------------------------------------------------------------------------------------------------------------
Crown European Holdings S.A., 9.5%, 2011 (Containers) $1,580 $1,730,100
-----------------------------------------------------------------------------------------------------------------------------------
France Telecom S.A., 8.2%, 2006 (Telecommunications - Wireline) 105 112,321
-----------------------------------------------------------------------------------------------------------------------------------
Republic of France, 4.75%, 2007 (International Market Sovereign) EUR 2,640 3,330,211
-----------------------------------------------------------------------------------------------------------------------------------
Republic of France, 4%, 2009 (International Market Sovereign) 1,715 2,101,242
-----------------------------------------------------------------------------------------------------------------------------------
Republic of France, 5%, 2012 - 2016 (International Market Sovereign) 607 775,167
-----------------------------------------------------------------------------------------------------------------------------------
Rhodia S.A., 8.875%, 2011 (Chemicals)## $2,090 1,797,400
-----------------------------------------------------------------------------------------------------------------------------------
SG Capital Trust I, 7.875%, 2049 (Banks & Credit Companies) EUR 300 423,486
-----------------------------------------------------------------------------------------------------------------------------------
Societe Nationale des Chemins de Fer Francais, 7.5%, 2008 (Railroad & Shipping) 750 1,027,988
-----------------------------------------------------------------------------------------------------------------------------------
Veolia Environnement, 5.875%, 2008 (Pollution Control) 250 323,983
-----------------------------------------------------------------------------------------------------------------------------------
$11,621,898
-----------------------------------------------------------------------------------------------------------------------------------
Germany - 7.6%
-----------------------------------------------------------------------------------------------------------------------------------
Aries Vermogensverwaltungs, 9.6%, 2014 (Emerging Market Sovereign)## $1,750 $1,850,625
-----------------------------------------------------------------------------------------------------------------------------------
Coca-Cola Erfrischungsgetranke, 5.875%, 2005 (Food & Non-Alcoholic Beverages) EUR 600 738,187
-----------------------------------------------------------------------------------------------------------------------------------
Continental AG, 6.875%, 2008 (Automotive) 100 133,644
-----------------------------------------------------------------------------------------------------------------------------------
DEPFA Bank, 5.5%, 2010 (Asset Backed & Securitized) 960 1,253,655
-----------------------------------------------------------------------------------------------------------------------------------
Deutsche Telekom International Finance B.V., 8.125%, 2012 (Telecommunications - Wireline) 130 191,010
-----------------------------------------------------------------------------------------------------------------------------------
Deutsche Telekom International Finance B.V., 8.75%, 2030 (Telecommunications - Wireline) $3,313 4,115,462
-----------------------------------------------------------------------------------------------------------------------------------
Federal Republic of Germany, 4%, 2007 - 2009 (International Market Sovereign) EUR 2,312 2,850,781
-----------------------------------------------------------------------------------------------------------------------------------
Federal Republic of Germany, 3.5%, 2008 (International Market Sovereign) 4,786 5,789,900
-----------------------------------------------------------------------------------------------------------------------------------
Federal Republic of Germany, 4.5%, 2009 (International Market Sovereign) 15,660 19,659,920
-----------------------------------------------------------------------------------------------------------------------------------
Federal Republic of Germany, 5.25%, 2010 (International Market Sovereign) 1,976 2,564,509
-----------------------------------------------------------------------------------------------------------------------------------
Kreditanstalt fur Wiederaufbau, 4.75%, 2006 (International Market Agencies) 750 937,193
-----------------------------------------------------------------------------------------------------------------------------------
Kreditanstalt fur Wiederaufbau, 3.25%, 2008 (International Market Agencies) 1,705 2,050,551
-----------------------------------------------------------------------------------------------------------------------------------
Kronos International, Inc., 8.875%, 2009 (Chemicals) 95 121,352
-----------------------------------------------------------------------------------------------------------------------------------
$42,256,789
-----------------------------------------------------------------------------------------------------------------------------------
Ireland - 1.4%
-----------------------------------------------------------------------------------------------------------------------------------
Chalet Finance 1 PLC, 2.32%, 2013 (Asset Backed & Securitized) EUR 300 $360,730
-----------------------------------------------------------------------------------------------------------------------------------
MDP Acquisitions PLC, 9.625%, 2012 (Forest & Paper Products) $940 1,052,800
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Ireland, 4.25%, 2007 (International Market Sovereign) EUR 5,031 6,260,196
-----------------------------------------------------------------------------------------------------------------------------------
$7,673,726
-----------------------------------------------------------------------------------------------------------------------------------
Italy - 1.1%
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Italy, 4.5%, 2005 (International Market Sovereign) EUR 4,745 $5,804,113
-----------------------------------------------------------------------------------------------------------------------------------
Telecom Italia S.p.A, 5.625%, 2007 (Telecommunications - Wireline) 300 380,028
-----------------------------------------------------------------------------------------------------------------------------------
$6,184,141
-----------------------------------------------------------------------------------------------------------------------------------
Japan - 0.8%
-----------------------------------------------------------------------------------------------------------------------------------
Mizuho Financial Group, Inc., 5.79%, 2014 (Banks & Credit Companies)## $1,633 $1,629,136
-----------------------------------------------------------------------------------------------------------------------------------
UFJ Finance Aruba AEC, 6.75%, 2013 (Banks & Credit Companies) 2,817 3,026,035
-----------------------------------------------------------------------------------------------------------------------------------
$4,655,171
-----------------------------------------------------------------------------------------------------------------------------------
Kazakhstan - 0.7%
-----------------------------------------------------------------------------------------------------------------------------------
Hurricane Finance B.V., 9.625%, 2010 (Oils) $46 $48,875
-----------------------------------------------------------------------------------------------------------------------------------
Kazkommerts International B.V., 10.125%, 2007 (Banks & Credit Companies)## 122 134,810
-----------------------------------------------------------------------------------------------------------------------------------
Kazkommerts International B.V., 10.125%, 2007 (Banks & Credit Companies)+ 128 141,440
-----------------------------------------------------------------------------------------------------------------------------------
Kazkommerts International B.V., 8.5%, 2013 (Banks & Credit Companies) 200 200,265
-----------------------------------------------------------------------------------------------------------------------------------
Kazkommerts International B.V., 8.5%, 2013 (Banks & Credit Companies)## 1,171 1,172,553
-----------------------------------------------------------------------------------------------------------------------------------
Turanalem Finance B.V., 7.875%, 2010 (Banks & Credit Companies) 10 9,853
-----------------------------------------------------------------------------------------------------------------------------------
Turanalem Finance B.V., 7.875%, 2010 (Banks & Credit Companies)## 39 38,428
-----------------------------------------------------------------------------------------------------------------------------------
Turanalem Finance B.V., 8%, 2014 (Banks & Credit Companies)## 2,031 1,892,362
-----------------------------------------------------------------------------------------------------------------------------------
$3,638,586
-----------------------------------------------------------------------------------------------------------------------------------
Luxembourg - 0.3%
-----------------------------------------------------------------------------------------------------------------------------------
Telecom Italia S.p.A., 5.25%, 2013 (Telecommunications - Wireline)## $1,425 $1,399,656
-----------------------------------------------------------------------------------------------------------------------------------
Malaysia - 0.7%
-----------------------------------------------------------------------------------------------------------------------------------
Petroliam Nasional Berhad, 7.75%, 2015 (Emerging Market Agencies) $2,433 $2,779,435
-----------------------------------------------------------------------------------------------------------------------------------
Petronas Capital Ltd., 7.875%, 2022 (Emerging Market Agencies)## 987 1,112,425
-----------------------------------------------------------------------------------------------------------------------------------
$3,891,860
-----------------------------------------------------------------------------------------------------------------------------------
Mexico - 2.2%
-----------------------------------------------------------------------------------------------------------------------------------
Axtel S.A.de C.V., 11%, 2013 (Telecommunications - Wireline)## $45 $43,875
-----------------------------------------------------------------------------------------------------------------------------------
Azteca Holdings S.A.de C.V., 12.25%, 2008 (Broadcast & Cable TV) 5 15,338
-----------------------------------------------------------------------------------------------------------------------------------
BBVA Bancomer Capital Trust I, 10.5%, 2011 (Banks & Credit Companies)## 1,240 1,354,700
-----------------------------------------------------------------------------------------------------------------------------------
Banco Mercantil del Norte S.A., 5.875%, 2014 (Banks & Credit Companies)## 2,837 2,787,353
-----------------------------------------------------------------------------------------------------------------------------------
Innova S.de R.L., 9.375%, 2013 (Telecommunications - Wireless) 484 510,620
-----------------------------------------------------------------------------------------------------------------------------------
Pemex Finance Ltd., 9.69%, 2009 (Emerging Market Agencies) 905 1,029,438
-----------------------------------------------------------------------------------------------------------------------------------
Pemex Project Funding Master Trust, 8.625%, 2022 (Emerging Market Agencies) 2,578 2,784,240
-----------------------------------------------------------------------------------------------------------------------------------
Petroleos Mexicanos, 9.5%, 2027 (Emerging Market Agencies) 147 169,785
-----------------------------------------------------------------------------------------------------------------------------------
TFM S.A.de C.V., 10.25%, 2007 (Transportation - Services) 15 15,075
-----------------------------------------------------------------------------------------------------------------------------------
TFM S.A.de C.V., 11.75%, 2009 (Transportation - Services) 16 15,920
-----------------------------------------------------------------------------------------------------------------------------------
TFM S.A.de C.V., 12.5%, 2012 (Transportation - Services) 344 368,940
-----------------------------------------------------------------------------------------------------------------------------------
TV Azteca S.A.de C.V., 10.5%, 2007 (Broadcast & Cable TV) 17 17,510
-----------------------------------------------------------------------------------------------------------------------------------
United Mexican States, 8%, 2022 (Emerging Market Sovereign) 810 866,700
-----------------------------------------------------------------------------------------------------------------------------------
United Mexican States, 7.5%, 2033 (Emerging Market Sovereign) 2,015 2,011,978
-----------------------------------------------------------------------------------------------------------------------------------
$11,991,472
-----------------------------------------------------------------------------------------------------------------------------------
Netherlands - 1.4%
-----------------------------------------------------------------------------------------------------------------------------------
Kingdom of Netherlands, 5.75%, 2007 (International Market Sovereign) EUR 3,079 $3,957,683
-----------------------------------------------------------------------------------------------------------------------------------
Kingdom of Netherlands, 3.75%, 2009 (International Market Sovereign) 2,965 3,601,180
-----------------------------------------------------------------------------------------------------------------------------------
RWE Finance B.V., 5.375%, 2008 (Utilities - Electric Power) 6 7,672
-----------------------------------------------------------------------------------------------------------------------------------
$7,566,535
-----------------------------------------------------------------------------------------------------------------------------------
New Zealand - 0.8%
-----------------------------------------------------------------------------------------------------------------------------------
Government of New Zealand, 7%, 2009 (International Market Sovereign) NZD 1,341 $879,624
-----------------------------------------------------------------------------------------------------------------------------------
Government of New Zealand, 6.5%, 2013 (International Market Sovereign) 5,266 3,381,450
-----------------------------------------------------------------------------------------------------------------------------------
$4,261,074
-----------------------------------------------------------------------------------------------------------------------------------
Norway - 0.2%
-----------------------------------------------------------------------------------------------------------------------------------
NCL Corp., 10.625%, 2014 (Gaming & Lodging)## $1,000 $1,016,250
-----------------------------------------------------------------------------------------------------------------------------------
Panama - 0.4%
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Panama, 2.75%, 2016 (Emerging Market Sovereign) $52 $44,844
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Panama, 9.375%, 2023 - 2029 (Emerging Market Sovereign) 1,942 2,079,415
-----------------------------------------------------------------------------------------------------------------------------------
$2,124,259
-----------------------------------------------------------------------------------------------------------------------------------
Peru - 0%
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Peru, 8.375%, 2016 (Emerging Market Sovereign) $36 $34,200
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Peru, 4.5%, 2017 (Emerging Market Sovereign) 34 27,965
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Peru, 5%, 2017 (Emerging Market Sovereign) 116 100,257
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Peru, 8.75%, 2033 (Emerging Market Sovereign) 17 15,364
-----------------------------------------------------------------------------------------------------------------------------------
$177,786
-----------------------------------------------------------------------------------------------------------------------------------
Philippines - 0%
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Philippines, 9.375%, 2017 (Emerging Market Sovereign) $64 $66,560
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Philippines, 10.625%, 2025 (Emerging Market Sovereign) 63 68,513
-----------------------------------------------------------------------------------------------------------------------------------
$135,073
-----------------------------------------------------------------------------------------------------------------------------------
Poland - 0.3%
-----------------------------------------------------------------------------------------------------------------------------------
PTC International Finance II S.A., 11.25%, 2009 (Telecommunications - Wireless) $1,326 $1,405,560
-----------------------------------------------------------------------------------------------------------------------------------
Portugal - 0.3%
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Portugal, 5.45%, 2013 (International Market Sovereign) EUR 1,067 $1,400,434
-----------------------------------------------------------------------------------------------------------------------------------
Qatar - 0.2%
-----------------------------------------------------------------------------------------------------------------------------------
State of Qatar, 9.75%, 2030 (Emerging Market Sovereign) $700 $971,250
-----------------------------------------------------------------------------------------------------------------------------------
Russia - 1.6%
-----------------------------------------------------------------------------------------------------------------------------------
Gaz Capital S.A., 8.625%, 2034 (Oils)## $1,425 $1,403,625
-----------------------------------------------------------------------------------------------------------------------------------
Gazprom OAO, 9.625%, 2013 (Oils) 40 41,825
-----------------------------------------------------------------------------------------------------------------------------------
Gazprom OAO, 9.625%, 2013 (Oils)## 100 104,563
-----------------------------------------------------------------------------------------------------------------------------------
Mobile TeleSystems OJSC, 9.75%, 2008 (Telecommunications - Wireless)## 19 19,760
-----------------------------------------------------------------------------------------------------------------------------------
Mobile TeleSystems OJSC, 8.375%, 2010 (Telecommunications - Wireless)## 1,344 1,276,800
-----------------------------------------------------------------------------------------------------------------------------------
Russian Federation, 3%, 2008 - 2011 (Emerging Market Sovereign) 754 587,423
-----------------------------------------------------------------------------------------------------------------------------------
Russian Federation, 11%, 2018 (Emerging Market Sovereign) 1,302 1,642,473
-----------------------------------------------------------------------------------------------------------------------------------
Russian Ministry of Finance, 12.75%, 2028 (Emerging Market Sovereign) 32 46,582
-----------------------------------------------------------------------------------------------------------------------------------
Siberian Oil Co., 10.75%, 2009 (Energy - Integrated) 632 644,640
-----------------------------------------------------------------------------------------------------------------------------------
Tyumen Oil Co., 11%, 2007 (Energy - Integrated) 1,560 1,708,200
-----------------------------------------------------------------------------------------------------------------------------------
Vimpel-Communications, 10.45%, 2005 (Telecommunications - Wireless)## 1,551 1,613,040
-----------------------------------------------------------------------------------------------------------------------------------
$9,088,931
-----------------------------------------------------------------------------------------------------------------------------------
Singapore - 0.2%
-----------------------------------------------------------------------------------------------------------------------------------
Flextronics International Ltd., 6.5%, 2013 (Electronics) $1,130 $1,110,225
-----------------------------------------------------------------------------------------------------------------------------------
South Africa - 0%
-----------------------------------------------------------------------------------------------------------------------------------
Republic of South Africa, 8.5%, 2017 (Emerging Market Sovereign) $66 $76,395
-----------------------------------------------------------------------------------------------------------------------------------
South Korea - 0.3%
-----------------------------------------------------------------------------------------------------------------------------------
Sun Sage B.V., 8.25%, 2009 (Machinery & Tools)## $100 $98,000
-----------------------------------------------------------------------------------------------------------------------------------
Woori Bank, 5.75%, 2014 (Banks & Credit Companies)## 1,677 1,670,711
-----------------------------------------------------------------------------------------------------------------------------------
$1,768,711
-----------------------------------------------------------------------------------------------------------------------------------
Spain - 0.7%
-----------------------------------------------------------------------------------------------------------------------------------
Kingdom of Spain, 6%, 2008 (International Market Sovereign) EUR 522 $686,876
-----------------------------------------------------------------------------------------------------------------------------------
Kingdom of Spain, 5.35%, 2011 (International Market Sovereign) 2,425 3,163,779
-----------------------------------------------------------------------------------------------------------------------------------
$3,850,655
-----------------------------------------------------------------------------------------------------------------------------------
Sweden - 0%
-----------------------------------------------------------------------------------------------------------------------------------
ASSA ABLOY AB, 5.125%, 2006 (Consumer Goods & Services) EUR 130 $162,939
-----------------------------------------------------------------------------------------------------------------------------------
Switzerland - 0.1%
-----------------------------------------------------------------------------------------------------------------------------------
Credit Suisse Group, 7.974%, 2010 (Banks & Credit Companies) EUR 265 $374,701
-----------------------------------------------------------------------------------------------------------------------------------
Turkey - 0%
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Turkey, 9%, 2011 (Emerging Market Sovereign) $20 $20,950
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Turkey, 11%, 2013 (Emerging Market Sovereign) 94 108,335
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Turkey, 11.875%, 2030 (Emerging Market Sovereign) 88 112,200
-----------------------------------------------------------------------------------------------------------------------------------
$241,485
-----------------------------------------------------------------------------------------------------------------------------------
Ukraine - 0.2%
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Ukraine, 7.65%, 2013 (Emerging Market Sovereign) $100 $96,000
-----------------------------------------------------------------------------------------------------------------------------------
Ukraine Cabinet of Ministers, 6.875%, 2011 (Emerging Market Sovereign)## 998 948,100
-----------------------------------------------------------------------------------------------------------------------------------
$1,044,100
-----------------------------------------------------------------------------------------------------------------------------------
United Kingdom - 1.2%
-----------------------------------------------------------------------------------------------------------------------------------
Bank of Ireland, 7.4%, 2049 (Banks & Credit Companies) EUR 500 $698,687
-----------------------------------------------------------------------------------------------------------------------------------
Europa Ltd., 2.432%, 2027 (Asset Backed & Securitized) 254 305,017
-----------------------------------------------------------------------------------------------------------------------------------
Granites Mortgages PLC, 5.15%, 2042 (Asset Backed & Securitized) 350 441,248
-----------------------------------------------------------------------------------------------------------------------------------
HBOS Capital Funding LP, 6.071%, 2049 (Banks & Credit Companies)## $1,543 1,574,537
-----------------------------------------------------------------------------------------------------------------------------------
MBNA Europe Funding PLC, 6.5%, 2007 (Financial Institutions) EUR 150 194,151
-----------------------------------------------------------------------------------------------------------------------------------
National Grid Group Finance PLC, 5.25%, 2006 (Utilities - Electric Power) 200 250,601
-----------------------------------------------------------------------------------------------------------------------------------
National Westminster Bank PLC, 6.625%, 2049 (Banks & Credit Companies) 330 440,296
-----------------------------------------------------------------------------------------------------------------------------------
OTE Telecommunications PLC, 6.125%, 2007 (Telecommunications - Wireline) 195 249,472
-----------------------------------------------------------------------------------------------------------------------------------
Pearson PLC, 6.125%, 2007 (Printing & Publishing) 135 173,096
-----------------------------------------------------------------------------------------------------------------------------------
RMAC PLC, 1.6688%, 2036 (Asset Backed & Securitized)## 230 276,517
-----------------------------------------------------------------------------------------------------------------------------------
Rolls-Royce PLC, 6.375%, 2007 (Aerospace) 300 389,954
-----------------------------------------------------------------------------------------------------------------------------------
United Kingdom Treasury, 7.25%, 2007 (International Market Sovereign) GBP 499 967,384
-----------------------------------------------------------------------------------------------------------------------------------
United Kingdom Treasury, 5%, 2012 (International Market Sovereign) 359 648,361
-----------------------------------------------------------------------------------------------------------------------------------
Vodafone Group PLC, 5.75%, 2006 (Telecommunications - Wireless) EUR 140 177,854
-----------------------------------------------------------------------------------------------------------------------------------
$6,787,175
-----------------------------------------------------------------------------------------------------------------------------------
Uruguay - 0%
-----------------------------------------------------------------------------------------------------------------------------------
Banco de La Republica Oriental del Uruguay, 10.5%, 2006 (Emerging Market Sovereign) UYU 3,112 $107,794
-----------------------------------------------------------------------------------------------------------------------------------
Venezuela - 0%
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Venezuela, 2.75%, 2007 (Emerging Market Sovereign) $167 $160,827
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Venezuela, 9.25%, 2027 (Emerging Market Sovereign) 86 76,282
-----------------------------------------------------------------------------------------------------------------------------------
$237,109
-----------------------------------------------------------------------------------------------------------------------------------
Vietnam - 0%
-----------------------------------------------------------------------------------------------------------------------------------
Republic of Vietnam, 3.75%, 2028 (Emerging Market Sovereign) $59 $39,530
-----------------------------------------------------------------------------------------------------------------------------------
Total Foreign Bonds $191,260,088
-----------------------------------------------------------------------------------------------------------------------------------
Total Bonds (Identified Cost, $511,202,832) $530,745,985
-----------------------------------------------------------------------------------------------------------------------------------
ISSUER SHARES $ VALUE
-----------------------------------------------------------------------------------------------------------------------------------
STOCKS - 0.1%
-----------------------------------------------------------------------------------------------------------------------------------
U.S. STOCKS - 0.1%
-----------------------------------------------------------------------------------------------------------------------------------
Apparel Manufacturers - 0.1%
-----------------------------------------------------------------------------------------------------------------------------------
Sind Holdings, Inc.* 5,720 $446,160
-----------------------------------------------------------------------------------------------------------------------------------
Machinery & Tools - 0%
-----------------------------------------------------------------------------------------------------------------------------------
Thermadyne Holdings Corp.* 121 $1,815
-----------------------------------------------------------------------------------------------------------------------------------
Tobacco - 0%
-----------------------------------------------------------------------------------------------------------------------------------
R.J.Reynolds Tobacco Holdings, Inc.* 2,302 $165,629
-----------------------------------------------------------------------------------------------------------------------------------
Total U.S.Stocks $613,604
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
FOREIGN STOCKS - 0%
-----------------------------------------------------------------------------------------------------------------------------------
United Kingdom - 0%
-----------------------------------------------------------------------------------------------------------------------------------
Telewest Global, Inc.(Broadcast & Cable TV)* 14,507 $163,929
-----------------------------------------------------------------------------------------------------------------------------------
Total Foreign Stocks $163,929
-----------------------------------------------------------------------------------------------------------------------------------
Total Stocks (Identified Cost, $2,526,949) $777,533
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCKS - 0.1%
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
U.S. STOCKS - 0.1%
-----------------------------------------------------------------------------------------------------------------------------------
Automotive - 0.1%
-----------------------------------------------------------------------------------------------------------------------------------
Ford Motor Co.Capital Trust II 15,656 $836,813
-----------------------------------------------------------------------------------------------------------------------------------
Total Convertible Preferred Stocks (Identified Cost, $836,884) $836,813
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
WARRANTS - 0%
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
FOREIGN WARRANTS - 0%
-----------------------------------------------------------------------------------------------------------------------------------
South Korea - 0%
-----------------------------------------------------------------------------------------------------------------------------------
DWC Construction Co., Inc.(Utilities - Other)* 112,911 $0
-----------------------------------------------------------------------------------------------------------------------------------
DWC Trading (Utilities - Other)* 44,711 4,287
-----------------------------------------------------------------------------------------------------------------------------------
$4,287
-----------------------------------------------------------------------------------------------------------------------------------
Uruguay - 0%
-----------------------------------------------------------------------------------------------------------------------------------
Banco Central del Uruguay (Emerging Market Sovereign)* 1,250,000 $0
-----------------------------------------------------------------------------------------------------------------------------------
Total Foreign Warrants $4,287
-----------------------------------------------------------------------------------------------------------------------------------
U.S. WARRANTS - 0%
-----------------------------------------------------------------------------------------------------------------------------------
Basic Industry - 0%
-----------------------------------------------------------------------------------------------------------------------------------
Thermadyne Holdings Corp.* 777 $389
-----------------------------------------------------------------------------------------------------------------------------------
Business Services - 0%
-----------------------------------------------------------------------------------------------------------------------------------
Loral Space & Communications Ltd.* 1,625 $0
-----------------------------------------------------------------------------------------------------------------------------------
Loral Space & Communications Ltd.* 700 0
-----------------------------------------------------------------------------------------------------------------------------------
$0
-----------------------------------------------------------------------------------------------------------------------------------
Total U.S.Warrants $389
-----------------------------------------------------------------------------------------------------------------------------------
Total Warrants (Identified Cost, $38,522) $4,676
-----------------------------------------------------------------------------------------------------------------------------------
ISSUER PAR AMOUNT
(000 OMITTED) $ VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CONVERTIBLE BONDS - 0.3%
-----------------------------------------------------------------------------------------------------------------------------------
U.S. BONDS - 0.2%
-----------------------------------------------------------------------------------------------------------------------------------
Telecommunications - Wireless - 0.2%
-----------------------------------------------------------------------------------------------------------------------------------
Nextel Communications, Inc., 5.25%, 2010 $1,300 $1,293,500
-----------------------------------------------------------------------------------------------------------------------------------
Total U.S.Bonds $1,293,500
-----------------------------------------------------------------------------------------------------------------------------------
FOREIGN BONDS - 0.1%
-----------------------------------------------------------------------------------------------------------------------------------
United Kingdom - 0.1%
-----------------------------------------------------------------------------------------------------------------------------------
Fortis Capital Co., 6.25%, 2049 (Banks & Credit Companies) EUR 155 $201,257
-----------------------------------------------------------------------------------------------------------------------------------
Total Foreign Bonds $201,257
-----------------------------------------------------------------------------------------------------------------------------------
Total Convertible Bonds (Identified Cost, $1,374,447) $1,494,757
-----------------------------------------------------------------------------------------------------------------------------------
REPURCHASE AGREEMENT - 3.0%
-----------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs & Co., dated 7/30/04, due 8/2/04, total to be received $16,456,865
(secured by various U.S.Treasury and Federal Agency obligations in a jointly traded account),
at Cost $16,455 $16,455,000
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments ~ (Identified Cost, $532,434,634) $550,314,764
-----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES - 1.2% 6,749,768
-----------------------------------------------------------------------------------------------------------------------------------
Net Assets - 100.0% $557,064,532
-----------------------------------------------------------------------------------------------------------------------------------
* Non-income producing security.
** Non-income producing security -- in default.
## SEC Rule 144A restriction.
### Security segregated as collateral for open futures contracts.
^^ Interest only security.
+ Restricted security.
~ As of July 31, 2004, one security representing $446, 160 and 0.1% of net assets was fair valued in accordance with the policies
adopted by the Board of Trustees.
Abbreviations have been used throughout this report to indicate amounts shown in currencies A list of abbreviations is other than
the U.S.dollar. shown below
ARS = Argentine Peso
AUD = Australian Dollar
BRL = Brazilian Real
CAD = Canadian Dollar
CLP = Chilean Peso
CNY = Chinese Yuan Renminbi
COP = Colombian Peso
CZK = Czech Koruna
DKK = Danish Krone
EUR = Euro
GBP = British Pound
HUF = Hungarian Forint
IDR = Indonesian Rupiah
ILS = Israeli Sheqel
INR = Indian Rupee
JPY = Japanese Yen
KRW = Korean Won
MXN = Mexican Peso
NZD = New Zealand Dollar
PLN = Polish Zloty
RUB = Russian Ruble
SEK = Swedish Krona
SGD = Singapore Dollar
SKK = Slovakian Koruna
THB = Thailand Baht
TRL = Turkish Lira
TWD = Taiwan Dollar
UYU = Uruguayan Peso
ZAR = South African Rand
SEE ATTACHED SCHEDULES.SEE NOTES TO FINANCIAL STATEMENTS AS DISCLOSED IN THE MOST RECENT SEMI-ANNUAL OR ANNUAL REPORT WHICH ARE
INCORPORATED BY REFERENCE.
-----------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULES (UNAUDITED)
-----------------------------------------------------------------------------------------------------------------------------------
(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 $534,158,575
------------
Gross unrealized appreciation $24,687,092
------------
Gross unrealized depreciation (8,530,903)
------------
Net unrealized appreciation $16,156,189
------------
(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 and futures 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
NET UNREALIZED
CONTRACTS TO CONTRACTS APPRECIATION
SETTLEMENT DATE DELIVER/RECEIVE IN EXCHANGE FOR AT VALUE (DEPRECIATION)
-----------------------------------------------------------------------------------------------------------------------------------
SALES
-----
8/16/04 AUD 1,187,907 $830,978 $831,243 $(265)
8/16/04 DKK 20,792,857 3,377,602 3,360,980 16,622
8/4/04-10/6/04 EUR 105,212,439 127,215,288 126,439,710 775,578
8/16/04-8/17/04 GBP 1,096,933 2,020,051 1,992,469 27,582
8/2/04-8/6/04 MXN 1,151,259 100,754 100,798 (44)
8/9/04 NZD 6,897,183 4,334,632 4,380,130 (45,498)
8/16/04 PLN 723,586 200,000 198,227 1,773
8/16/04 SEK 4,465,102 586,370 581,279 5,091
8/2/04 TRL 605,068,000,000 409,660 411,621 (1,961)
8/16/04 ZAR 2,147,891 345,499 344,558 941
--------------------------------------------------------------
$139,420,834 $138,641,015 $779,819
==============================================================
PURCHASES
---------
8/6/04 ARS 368,000 $124,031 $123,471 $(560)
8/16/04 BRL 459,800 150,000 151,488 1,488
8/9/04 CLP 104,250,000 165,160 162,098 (3,062)
6/1/05 CNY 1,830,988 227,198 223,689 (3,509)
8/12/04 COP 270,050,000 100,803 103,153 2,350
8/27/04 CZK 9,798,022 375,893 370,885 (5,008)
8/4/04-10/6/04 EUR 34,721,224 42,069,299 41,738,792 (330,507)
8/17/04 GBP 740,000 1,370,055 1,344,116 (25,939)
8/30/04 HUF 67,921,760 327,026 325,889 (1,137)
8/30/04 IDR 978,400,000 106,547 106,423 (124)
8/31/04 ILS 1,276,152 280,925 281,936 1,011
8/26/04 INR 4,650,000 100,000 100,044 44
8/11/04 JPY 798,456,822 7,301,625 7,181,713 (119,912)
8/12/04-8/26/04 KRW 245,475,000 211,986 209,458 (2,528)
8/2/04-8/6/04 MXN 8,257,381 712,219 722,770 10,551
8/16/04-8/30/04 PLN 2,279,253 616,674 624,312 7,638
8/19/04 RUB 2,915,000 100,000 99,963 (37)
8/16/04 SEK 14,478,552 1,929,086 1,884,858 (44,228)
8/16/04 SGD 896,225 528,778 521,250 (7,528)
8/9/04-8/16/04 SKK 8,158,369 253,485 244,412 (9,073)
8/19/04 THB 4,069,000 99,804 98,477 (1,327)
8/2/04-9/2/04 TRL 1,265,367,000,000 864,911 856,982 (7,929)
8/19/04 TWD 3,385,000 100,000 99,628 (372)
8/16/04-9/3/04 ZAR 2,955,932 480,521 473,778 (6,743)
--------------------------------------------------------------
$58,596,026 $58,049,585 $(546,441)
==============================================================
At July 31, 2004, forward foreign currency purchases and sales under master netting agreements excluded above amounted to a net
payable of $63, 336 with Merrill Lynch International.
At July 31, 2004, the trust had sufficient cash and/or securities to cover any commitments under these contracts.
FUTURES CONTRACTS
Unrealized
Description Expiration Contracts Position Depreciation
-----------------------------------------------------------------------------------------------------------------------------------
U.S. Treasury Notes 10 Year September 2004 136 Short $(431,501)
U.S. Treasury Notes 2 Year September 2004 243 Short (430,383)
---------
$(861,884)
=========
At July 31, 2004, the trust had sufficient cash and/or securities to cover any margin requirements under these contracts.
(3) RESTRICTED SECURITIES
The trust may invest not more than 10% of its total assets in securities which are subject to legal or contractual restrictions on
resale.At July 31, 2004, the trust owned the following restricted security, excluding securities issued under Rule 144A,
constituting 0.03% of net assets which may not be publicly sold without registration under the Securities Act of 1933.The trust
does not have the right to demand that such securities be registered.The value of these securities is determined by valuations
furnished by dealers or by a pricing service, or if not available, in good faith at the direction of the Trustees.
Date of Share/Principal
Description Acquisition Amount Cost Value
-----------------------------------------------------------------------------------------------------------------------------------
Kazkommerts International B.V. 4/13/03 128,000 $139,853 $141,440
(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 MULTIMARKET INCOME TRUST
By (Signature and Title)* ROBERT J. MANNING
----------------------------------------------------
Robert J. Manning, President
Date: September 22, 2004
------------------
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
------------------
By (Signature and Title)* RICHARD M. HISEY
----------------------------------------------------
Richard M. Hisey, Treasurer (Principal
Financial Officer and Accounting Officer)
Date: September 22, 2004
------------------
* Print name and title of each signing officer under his or her signature.