| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 70.04 | 3974 |
| Intrinsic value (DCF) | 0.82 | -52 |
| Graham-Dodd Method | 0.37 | -78 |
| Graham Formula | 103.06 | 5895 |
MFS Intermediate High Income Fund (NYSE: CIF) is a closed-end fixed income mutual fund managed by Massachusetts Financial Services Company, specializing in high-yield debt instruments within the U.S. market. Launched in 1988, the fund primarily targets income-seeking investors by investing in high-income debt securities, benchmarked against the Barclays U.S. High-Yield Corporate 2% Issuer Capped Index. As part of the Financial Services sector, CIF operates in the Asset Management - Income industry, offering exposure to corporate bonds with higher yields but elevated credit risk. The fund’s strategy focuses on intermediate-term maturities, balancing yield potential with interest rate sensitivity. With a market cap of approximately $30.3 million, CIF provides a niche investment vehicle for those seeking diversified high-yield fixed income exposure. Its dividend yield and historical performance make it relevant for income portfolios, though its closed-end structure may lead to trading at premiums or discounts to NAV.
MFS Intermediate High Income Fund (CIF) presents a compelling option for income-focused investors, given its high-yield debt focus and consistent dividend payouts (currently $0.176 per share). The fund’s low beta (0.758) suggests relative stability compared to broader equity markets, though it remains exposed to credit and interest rate risks inherent in high-yield bonds. With no leverage (total debt: $0) and positive net income ($4.18M in FY 2024), CIF demonstrates prudent management. However, its small market cap and closed-end structure may limit liquidity, and the absence of cash reserves could pose challenges in volatile markets. Investors should weigh the attractive yield against potential credit risk and the fund’s sensitivity to macroeconomic shifts in the high-yield sector.
CIF’s competitive edge lies in its specialized focus on intermediate-term high-yield debt, offering a balance between yield and duration risk. Managed by Massachusetts Financial Services, the fund benefits from institutional-grade credit analysis and a long track record (since 1988). Its benchmark alignment with the Barclays U.S. High-Yield Corporate Index ensures transparency. However, the fund faces stiff competition from larger, more diversified high-yield ETFs and mutual funds (e.g., HYG, JNK), which offer greater liquidity and lower fees. CIF’s closed-end structure is a double-edged sword: it allows for active management but can trade at NAV discounts, potentially eroding returns. The fund’s zero-cash position limits flexibility during market stress, unlike open-end peers with cash buffers. Its niche appeal rests on active management’s potential to outperform passive high-yield ETFs, but fee efficiency and scale remain challenges.