MFS Investment Grade Municipal Trust

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 811-5785

 

 

MFS INVESTMENT GRADE MUNICIPAL TRUST

(Exact name of registrant as specified in charter)

 

500 Boylston Street, Boston, Massachusetts 02116

(Address of principal executive offices) (Zip code)

 

Susan S. Newton

Massachusetts Financial Services Company

500 Boylston Street

Boston, Massachusetts 02116

(Name and address of agents for service)

 

Registrant’s telephone number, including area code: (617) 954-5000

 

Date of fiscal year end: November 30

 

Date of reporting period: February 29, 2008


ITEM 1. SCHEDULE OF INVESTMENTS.


LOGO


MFS Investment Grade Municipal Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/29/08

 

Issuer

   Shares/Par    Value ($)

Municipal Bonds – 151.7%

     

Airport & Port Revenue – 3.1%

     

Massachusetts Port Authority Rev., FGIC, 5.75%, 2010 (c)(u)

   $ 2,000,000    $ 2,123,760

New York, NY, City Industrial Development Authority Rev. (Terminal One Group Assn.), 5.5%, 2021

     250,000      247,713

Port Authority of NY & NJ, Special Obligation Rev. (JFK International Airport Terminal- 6), MBIA, 6.25%, 2008

     1,000,000      1,018,350
         
      $ 3,389,823
         

General Obligations - General Purpose – 8.5%

     

Chicago, IL (Emergency Telecommunications Systems), FGIC, 5.5%, 2023

   $ 1,000,000    $ 1,031,700

Chicago, IL, “A”, AMBAC, 6.25%, 2014

     1,480,000      1,663,594

Commonwealth of Puerto Rico, Public Improvement, FSA, 5.5%, 2017

     1,000,000      1,080,930

Commonwealth of Puerto Rico, Public Improvement, “A”, 5%, 2030 (a)

     415,000      424,188

Commonwealth of Massachusetts, “C”, 5.25%, 2017

     1,000,000      1,079,240

Highlands Ranch, CO, Metropolitan District, FSA, 6.5%, 2011

     650,000      716,846

Highlands Ranch, CO, Metropolitan District, ETM, FSA, 6.5%, 2011 (c)

     725,000      800,748

New York, NY, Prerefunded, “J”, 5.5%, 2013 (c)

     145,000      159,858

New York, NY, Unrefunded Balance, “J”, 5.5%, 2018

     355,000      371,884

Puerto Rico Infrastructure Financing Authority, “B”, 5%, 2026

     750,000      684,173

St. Clair County, IL, Capital Appreciation, FGIC, 0%, 2016 (f)

     2,000,000      1,346,380

State of California, 5.75%, 2019

     70,000      70,465
         
      $ 9,430,006
         

General Obligations - Improvement – 2.1%

     

Massachusetts Bay Transportation Authority Sales Tax Rev., 5%, 2031

   $ 750,000    $ 729,810

St. Clair County, IL, Public Building Capital Appreciation, “B”, FGIC, 0%, 2013

     2,000,000      1,581,780
         
      $ 2,311,590
         

General Obligations - Schools – 4.7%

     

Garden City, MI, School District, 5.5%, 2011 (c)

   $ 325,000    $ 348,465

Modesto, CA, High School District (Stanilaus County), “A”, FGIC, 0%, 2019

     1,350,000      742,581

Pomona, CA, Unified School District, “A”, MBIA, 6.45%, 2022

     1,000,000      1,065,760

St. Johns, MI, Public Schools, FGIC, 5.1%, 2025

     1,000,000      1,010,530

West Contra Costa, CA, Unified School District, “B”, MBIA, 6%, 2024

     250,000      267,310

Will County, IL, School District (Channahon), AMBAC, 8.5%, 2015

     1,400,000      1,797,306
         
      $ 5,231,952
         

Healthcare Revenue - Hospitals – 25.9%

     

Allegheny County, PA, Hospital Development Authority Rev. (West Penn Allegheny Health), “A”, 5.375%, 2040

   $ 405,000    $ 332,780

Augusta County, VA, Industrial Development Authority (Augusta Health Care, Inc.), 5.25%, 2019

     1,000,000      1,025,160

California Health Facilities Financing Authority Rev. (Catholic Healthcare West), “I”, 4.95%, 2026 (a)

     200,000      205,668

Cass County, MO, Hospital Rev., 5.625%, 2038

     135,000      122,248

Colorado Health Facilities Authority Rev. (Parkview Medical Center), 5%, 2025

     250,000      225,723

Delaware Health Facilities Authority Rev. (Beebe Medical Center Project), “A”, 5%, 2016

     500,000      501,555

Glendale, AZ, Industrial Development Authority (John C. Lincoln Health), 5%, 2042

     155,000      127,827

Gwinnett County, GA, Hospital Authority Rev. (Gwinnett Hospital Systems), FSA, 8%, 2042

     1,300,000      1,300,000

Health Care Authority for Baptist Health, AL, “D”, 5%, 2021

     850,000      803,327

Henderson, NV, Health Care Facilities Rev. (Catholic West), “A”, 6.75%, 2010 (c)

     440,000      480,691

Henderson, NV, Health Care Facilities Rev. (Catholic West), “A”, 6.75%, 2010 (c)

     60,000      65,036

Hillsborough County, FL, Industrial Development Rev. (Tampa General Hospital Project), 5%, 2021

     400,000      378,156

Illinois Development Finance Authority Hospital Rev. (Adventist Health Systems Sunbelt Obligatory), 5.5%, 2009 (c)

     900,000      950,490

 

1


MFS Investment Grade Municipal Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/29/08 - continued

 

Issuer

   Shares/Par    Value ($)

Municipal Bonds – continued

     

Healthcare Revenue - Hospitals – continued

     

Illinois Health Facilities Authority Rev. (Swedish American Hospital), 6.875%, 2010 (c)

   $ 500,000    $ 540,640

Indiana Health & Educational Facilities Authority, Hospital Rev. (Community Foundation of Northwest Indiana), 5.5%, 2037

     845,000      729,472

Indiana Health & Educational Facilities Financing Authority Rev. (Jackson County Schneck Memorial Hospital), “A”, 5.25%, 2036

     350,000      311,647

Indiana Health Facilities Financing Authority Rev. (Community Foundation of Northwest Indiana ), “A”, 6%, 2034

     150,000      139,940

Knox County, TN, Health, Educational & Housing Facilities Board, Hospital Rev. (Covenant Health), “B-2”, FRN, 6.75%, 2046

     575,000      575,000

Louisiana Public Facilities Authority Hospital Rev. (Lake Charles Memorial Hospital), 6.375%, 2034

     380,000      356,451

Lufkin, TX, Health Facilities Development Corp. Rev. (Memorial Health System), 5.5%, 2032

     45,000      40,784

Lufkin, TX, Health Facilities Development Corp. Rev. (Memorial Health System), 5.5%, 2037

     45,000      40,288

Maryland Health & Higher Educational Facilites Authority Rev. (Washington County Hospital), 6%, 2043

     95,000      88,347

Maryland Health & Higher Educational Facilities Authority Rev. ( Washington County Hospital), 5.75%, 2038

     195,000      178,926

Maryland Health & Higher Educational Facilities Authority Rev. (Adventist Healthcare), “A”, 5%, 2016

     250,000      250,358

Maryland Health & Higher Educational Facilities Authority Rev. (Adventist Healthcare), “A”, 5.75%, 2025

     250,000      247,850

Maryland Health & Higher Educational Facilities Authority Rev. (Lifebridge Health), ASSD GTY, 5%, 2034

     250,000      231,243

Maryland Health & Higher Educational Facilities Authority Rev. (Mercy Medical Center), “A”, 5.5%, 2042

     300,000      271,440

Maryland Health & Higher Educational Facilities Authority Rev. (University of Maryland Medical System), 6.75%, 2010 (c)

     250,000      273,908

Massachusetts Health & Educational Facilities Authority Rev. (Civic Investments, Inc.), “A”, 9%, 2011 (c)

     250,000      300,710

Massachusetts Health & Educational Facilities Authority Rev. (Milford-Whitinsville Regional), “C”, 5.75%, 2013

     500,000      508,665

Massachusetts Health & Educational Facilities Authority Rev. (South Shore Hospital), “F”, 5.75%, 2029

     1,000,000      972,390

Michigan Hospital Finance Authority Rev. (Oakwood Obligated Group), 5.5%, 2018

     400,000      414,900

New Hampshire Health & Educational Facilities Authority Rev. (Catholic Medical Center), “A”, 6.125%, 2012 (c)

     440,000      490,468

New Hampshire Health & Educational Facilities Authority Rev. (Catholic Medical Center), “A”, 6.125%, 2032

     60,000      60,321

New Hampshire Health & Educational Facilities Authority Rev. (Memorial Hospital at Conway), 5.25%, 2036

     300,000      253,449

New Jersey Health Care Facilities, Financing Authority Rev. (St. Peter’s University Hospital), 5.75%, 2037

     415,000      384,551

New York Dormitory Authority Rev. (North Shore Long Island Jewish Group), 5.5%, 2013 (c)

     100,000      109,355

New York Dormitory Authority Rev., Non State Supported Debt (Mt. Sinai NYU Health), 5.5%, 2026

     200,000      200,716

New York Dormitory Authority Rev., Non State Supported Debt (Mt. Sinai NYU Health), “C”, 5.5%, 2026

     300,000      301,074

Orange County, FL, Health Facilities Authority Rev. (Orlando Regional Healthcare), 5.75%, 2012 (c)

     150,000      163,859

Orange County, FL, Health Facilities Authority Rev. (Orlando Regional Healthcare), “C”, MBIA, 6.25%, 2013

     720,000      806,278

 

2


MFS Investment Grade Municipal Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/29/08 - continued

 

Issuer

   Shares/Par    Value ($)

Municipal Bonds – continued

     

Healthcare Revenue - Hospitals – continued

     

Orange County, FL, Health Facilities Authority Rev. (Orlando Regional Healthcare), “C”, ETM, 6.25%, 2013 (c)

   $ 1,740,000    $ 1,969,001

Orange County, FL, Health Facilities Authority Rev. (Orlando Regional Healthcare), “E”, 6%, 2009 (c)

     5,000      5,291

Orange County, FL, Health Facilities Authority Rev. (Orlando Regional Healthcare), “E”, 6%, 2026

     170,000      174,106

Philadelphia, PA, Hospitals & Higher Education Facilities Authority Rev. (Temple University Hospital), “A”, 5.5%, 2030

     395,000      358,680

Rhode Island Health & Educational Building Corp., Hospital Financing (Lifespan Obligated Group), 6.375%, 2012 (c)

     435,000      487,766

Rhode Island Health & Educational Building Corp., Hospital Financing (Lifespan Obligated Group), 6.375%, 2021

     65,000      68,600

Saline County, MO, Industrial Development Authority Rev. (John Fitzgibbon Memorial Hospital, Inc.), 5.625%, 2035

     500,000      439,250

Skagit County, WA, Public Hospital District No. 001, 5.75%, 2032

     65,000      60,083

South Broward, FL, Hospital District Rev., 5.625%, 2012 (c)

     1,000,000      1,093,380

South Carolina Jobs Economic Development Authority (Bon Secours - Venice Healthcare Corp.), 5.5%, 2012 (c)

     110,000      119,889

South Carolina Jobs Economic Development Authority (Bon Secours - Venice Healthcare Corp.), 5.5%, 2023

     390,000      392,851

South Dakota Health & Educational Facilities Authority Rev. (Sioux Valley Hospitals & Health Systems), “A”, 5.25%, 2034

     250,000      226,543

Southwestern, IL, Development Authority Rev. (Anderson Hospital), 5.375%, 2015

     380,000      382,060

Southwestern, IL, Development Authority Rev. (Anderson Hospital), 5.125%, 2036

     1,000,000      841,940

St. Paul, MN, Housing & Redevelopment Authority Healthcare Facilities Rev. (Healthpartners Obligations Group), 5.25%, 2023

     325,000      312,471

St. Paul, MN, Housing & Redevelopment Authority Hospital Rev. (Healtheast), 5.15%, 2020

     250,000      232,965

St. Paul, MN, Housing & Redevelopment Authority Hospital Rev. (Healtheast), “A”, 5.7%, 2015

     250,000      251,663

St. Paul, MN, Port Authority Lease Rev. (Regions Hospital), “1”, 5%, 2036

     675,000      527,911

Sullivan County, TN, Health Educational & Housing Facilities Board Hospital Rev. (Wellmont Health Systems Project), “C”, 5.25%, 2026

     1,000,000      934,890

Sumner County, TN, Health, Educational & Housing Facilities Board Rev. (Sumner Regional Health), “A”, 5.5%, 2046

     1,000,000      879,280

Turlock, CA, Health Facilities Rev. (Emanuel Medical Center), 5.375%, 2034

     500,000      438,965

Tyler, TX, Health Facilities Development Corp. (East Texas Medical Center), “A”, 5.25%, 2032

     265,000      225,981

Tyler, TX, Health Facilities Development Corp. (East Texas Medical Center), “A”, 5.375%, 2037

     220,000      188,124

University of Kansas Hospital Authority Health Facilities Rev. (KU Health Systems), 5.625%, 2012 (c)

     500,000      545,735

Washington Health Care Facilities Authority Rev. (Mason Medical), “A”, 6.25%, 2042

     570,000      539,288

Wisconsin Health & Educational Facilities Authority Rev. (Aurora Health Care, Inc.), 6.4%, 2033

     175,000      175,135

Wisconsin Health & Educational Facilities Authority Rev. (Fort Healthcare, Inc. Project), 5.375%, 2018

     385,000      386,070

Wisconsin Health & Educational Facilities Authority Rev. (Wheaton Franciscan Services), 5.25%, 2034

     695,000      571,346
         
      $ 28,590,955
         

Healthcare Revenue - Long Term Care – 12.2%

     

Abilene, TX, Health Facilities Development Corp., Retirement Facilities Rev. (Sears Methodist Retirement), “A”, 7%, 2033

   $ 500,000    $ 502,840

Bexar County, TX, Health Facilities Development Corp. (Army Retirement Residence), 5%, 2033

     760,000      637,389

 

3


MFS Investment Grade Municipal Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/29/08 - continued

 

Issuer

   Shares/Par    Value ($)

Municipal Bonds – continued

     

Healthcare Revenue - Long Term Care – continued

     

Bucks County, PA, Industrial Development Authority, Retirement Community Rev. (Ann’s Choice, Inc.), 6.125%, 2025

   $ 500,000    $ 468,325

Capital Projects Finance Authority, FL (Glenridge on Palmer Ranch), “A”, 8%, 2012 (c)

     500,000      589,865

Chartiers Valley, PA, Industrial & Commercial Development Authority Rev. (Friendship Village South), “A”, 5.25%, 2013

     500,000      487,525

Chester County, PA, Industrial Development Authority Rev. (RHA Nursing Home), 8.5%, 2032

     730,000      735,672

Cole County, MO, Industrial Development Authority, Senior Living Facilities Rev. (Lutheran Senior Services), 5.5%, 2035

     500,000      455,650

Colorado Health Facilities Authority Rev. (Covenant Retirement Communities, Inc.), 5%, 2016

     860,000      842,654

Connecticut Development Authority First Mortgage Gross Rev., Health Care Project (The Elim Park Baptist, Inc. Project), 5.75%, 2023

     250,000      246,668

Delaware County, PA, Industrial Development Authority Rev. (Care Institute-Main Line LLC), 9%, 2031 (d)

     535,000      386,431

Delaware Economic Development Authority Healthcare Facilities Rev. (Churchman Village Project), “A”, 10%, 2021

     780,000      766,147

Fulton County, GA, Residential Care Facilities (Canterbury Court), “A”, 6.125%, 2034

     250,000      228,138

Fulton County, GA, Residential Care Facilities, First Mortgage (Lenbrook Square Foundation, Inc.), “A”, 5%, 2029

     270,000      212,371

Illinois Finance Authority Rev. (Hoosier Care, Inc.), “A”, 7.125%, 2034

     445,000      421,526

Illinois Finance Authority Rev. (Smith Village), “A”, 6.25%, 2035

     500,000      448,745

Illinois Health Facilities Authority Rev. (Lutheran Senior Ministries, Inc.), 7.375%, 2011 (c)

     250,000      284,965

Illinois Health Facilities Authority Rev. (Smith Crossing), “A”, 7%, 2032

     250,000      250,778

Johnson City, TN, Health & Educational Facilities Board (Appalachian Christian Village), “A”, 6.25%, 2032

     250,000      229,440

Juneau, AK, City & Boro Non-recourse Rev. (St. Ann’s Care Project), 6.875%, 2025

     455,000      426,858

Kentwood, MI, Economic Development Ltd. (Holland Home), “A”, 5.375%, 2036

     500,000      425,505

La Verne, CA, COP (Brethren Hillcrest Homes), “B”, 6.625%, 2025

     350,000      356,892

Lee County, FL, Industrial Development Authority Health Care Facilities Rev. (Shell Point Village), “A”, 5.5%, 2009 (c)

     175,000      184,667

Massachusetts Development Finance Agency Rev. (Loomis Communities, Inc.), “A”, 5.625%, 2015

     200,000      200,218

Montgomery County, PA, Industrial Development Authority Rev. (Whitemarsh Continuing Care), 6.125%, 2028

     200,000      184,762

Montgomery County, PA, Industrial Development Authority Rev. (Whitemarsh Continuing Care), 6.25%, 2035

     300,000      273,891

New Jersey Economic Development Authority Rev. (Lions Gate), “A”, 5.75%, 2025

     310,000      280,516

New Jersey Economic Development Authority Rev. (Lions Gate), “A”, 5.875%, 2037

     100,000      86,902

New Jersey Economic Development Authority Rev., First Mortgage (Winchester), “A”, 5.75%, 2024

     350,000      332,014

Savannah, GA, Economic Development Authority, First Mortgage (Marshes of Skidway), “A”, 7.4%, 2024

     250,000      253,808

Shelby County, TN, Health, Educational & Housing Facilities Board Rev. (Germantown Village), “A”, 7.25%, 2034

     150,000      140,606

South Carolina Jobs & Economic Development Authority, Health Facilities Rev. (Wesley Commons), 5.3%, 2036

     250,000      196,755

Suffolk County, NY, Industrial Development Agency, Civic Facilities Rev. (Gurwin Jewish Phase II), 6.7%, 2039

     500,000      489,705

Suffolk, VA, Industrial Development Authority, Retirement Facilities Rev. (Lake Prince Center, Inc.), 5.3%, 2031

     250,000      211,208

Tarrant County, TX, Cultural Education Facilities Finance Corp. (Edgemere Project), “A”, 6%, 2036

     250,000      225,978

 

4


MFS Investment Grade Municipal Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/29/08 - continued

 

Issuer

   Shares/Par    Value ($)

Municipal Bonds – continued

     

Healthcare Revenue - Long Term Care – continued

     

Westminster, MD, Economic Development Rev. (Carroll Lutheran Village), “A”, 5.875%, 2021

   $ 500,000    $ 481,570

Winchester, VA, Industrial Development Authority Rev., Residential Care Facilities (Westminster-Canterbury), “A”, 5.3%, 2035

     250,000      211,288

Wisconsin Health & Educational Facilities Authority Rev. (Three Pillars Senior Communities), 5.6%, 2023

     300,000      293,322
         
      $ 13,451,594
         

Human Services – 0.2%

     

Massachusetts Development Finance Agency Rev. (Evergreen Center, Inc.), 5%, 2024

   $ 250,000    $ 217,045
         

Industrial Revenue - Airlines – 0.9%

     

Charlotte, NC, Douglas International Airport Special Facilities Rev. (U.S. Airways, Inc.), 7.75%, 2028

   $ 500,000    $ 509,655

New Jersey Economic Development Authority, Special Facilities Rev. (Continental Airlines, Inc.), 6.25%, 2019

     500,000      461,730
         
      $ 971,385
         

Industrial Revenue - Chemicals – 0.4%

     

Brazos River, TX, Harbor Navigation District (Dow Chemical Co.), “B-2”, 4.95%, 2033

   $ 500,000    $ 431,605
         

Industrial Revenue - Environmental Services – 0.4%

     

Ohio Solid Waste Rev. (Republic Services, Inc.), 4.25%, 2033 (a)

   $ 500,000    $ 482,075
         

Industrial Revenue - Other – 3.5%

     

Gulf Coast, TX, Industrial Development Authority Rev. (CITGO Petroleum Corp.), 8%, 2028

   $ 250,000    $ 262,938

Houston, TX, Industrial Development Corp. (United Parcel Service, Inc.), 6%, 2023

     345,000      330,858

Indianapolis, IN, Airport Authority Rev., Special Facilities (FedEx Corp.), 5.1%, 2017

     250,000      245,273

Michigan Strategic Funding Ltd. Obligatory Rev. (Michigan Sugar Comp. Carrollton), 6.55%, 2025

     250,000      240,625

Missouri Development Finance Board Solid Waste Disposal Rev. (Procter & Gamble Paper Products), 5.2%, 2029

     250,000      239,215

New Jersey Economic Development Authority Rev. (GMT Realty LLC), “B”, 6.875%, 2037

     500,000      485,015

Toledo Lucas County, OH, Authority Port Rev., Facilities (CSX, Inc. Project), 6.45%, 2021

     1,000,000      1,037,860

Washington County, NE, Wastewater Facilities Rev. (Cargill, Inc. Project), 5.9%, 2027

     1,000,000      1,013,320
         
      $ 3,855,104
         

Industrial Revenue - Paper – 1.4%

     

Camden, AL, Industrial Development Board Exempt Facilities Rev., “B” (Weyerhaeuser Co.), 6.375%, 2024

   $ 275,000    $ 282,865

Camden, AR, Environmental Improvement Rev. (International Paper Co.), “A”, 5%, 2018

     500,000      453,055

Escambia County, FL, Environmental Import Rev. (International Paper Co.), 5.75%, 2027

     250,000      222,073

Lowndes County, MS, Solid Waste Disposal & Pollution Control Rev. (Weyerhaeuser Co.), “B”, 6.7%, 2022

     325,000      340,090

Rockdale County, GA, Development Authority Project Rev. (Visy Paper Project), “A”, 6.125%, 2034

     320,000      284,646
         
      $ 1,582,729
         

Miscellaneous Revenue - Entertainment & Tourism – 0.9%

     

Cabazon Band Mission Indians, CA, 8.375%, 2015 (z)

   $ 100,000    $ 103,082

Cabazon Band Mission Indians, CA, 8.75%, 2019 (z)

     360,000      371,970

Cow Creek Band Umpqua Tribe of Indians, OR, “C”, 5.625%, 2026 (n)

     350,000      311,357

 

5


MFS Investment Grade Municipal Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/29/08 - continued

 

Issuer

   Shares/Par    Value ($)

Municipal Bonds – continued

     

Miscellaneous Revenue - Entertainment & Tourism – continued

     

New York Liberty Development Corp. Rev. (National Sports Museum), “A”, 6.125%, 2019

   $ 250,000    $ 245,253
         
      $ 1,031,662
         

Miscellaneous Revenue - Other – 3.1%

     

Boston, MA, Industrial Development Financing Authority Rev. (Crosstown Center Project), 6.5%, 2035

   $ 275,000    $ 256,737

District of Columbia Rev. (Smithsonian Institution), 5%, 2028

     1,000,000      1,011,830

Louisiana Public Facilities Authority Rev. (Pennington Medical Foundation Project), 5%, 2021

     1,000,000      972,450

New York Convention Center Operating Corp. (Yale Building), ETM, 0%, 2008 (c)

     700,000      695,681

Summit County, OH, Port Authority Building Rev. (Seville Project), “A”, 5.1%, 2025

     465,000      402,904

V Lakes Utility District Ranking Water Systems Rev., 7%, 2037

     85,000      75,948
         
      $ 3,415,550
         

Multi-Family Housing Revenue – 8.5%

     

Broward County, FL, Housing Finance Authority Rev. (Chaves Lakes Apartments Ltd.), “A”, 7.5%, 2040

   $ 500,000    $ 506,150

Capital Trust Agency, FL, Housing Authority Rev. (Atlantic Housing Foundation), “C”, 5.875%, 2028

     375,000      340,905

Charter Mac Equity Issuer Trust, 6.3%, 2019 (n)

     500,000      542,970

Charter Mac Equity Issuer Trust, “B”, 7.6%, 2010 (a)(n)

     500,000      545,490

Clay County, FL, Housing Finance Authority Rev. (Madison Commons Apartments), “A”, 7.45%, 2040

     245,000      246,394

District of Columbia Housing Finance Agency (Henson Ridge), 5.1%, 2037

     500,000      445,580

Durham, NC, Durham Housing Authority Rev. (Magnolia Pointe Apartments), 5.65%, 2038 (a)

     400,000      360,648

GMAC Municipal Mortgage Trust, “B-1”, 5.6%, 2039 (a)(n)

     500,000      467,135

Massachusetts Housing Finance Agency Rev., “B”, 5%, 2030

     455,000      415,192

Massachusetts Housing Finance Agency Rev., “E”, 5%, 2028

     250,000      226,358

MuniMae TE Bond Subsidiary LLC, 5.5%, 2049 (a)(n)

     1,000,000      1,004,870

New Mexico Mortgage Finance Authority, Multi-Family Housing Rev. (Sun Pointe Apartments), “E”, FHA, 4.8%, 2040

     500,000      422,465

New York, NY, City Housing Development Corp., “F-1”, 4.65%, 2025

     500,000      448,760

North Carolina Medical Care Commission, Health Care Facilities Rev., “A”, (ARC Projects), 5.8%, 2034

     655,000      648,922

Pass-Through Certificates, “1993”, 8.5%, 2016 (z)

     227,741      224,397

Seattle, WA, Housing Authority Rev., Capped Fund Program (High Rise Rehab), “I”, FSA, 5%, 2025

     500,000      456,375

Tacoma, WA, Housing Authority Multifamily Rev. (HSG-GNMA Collateral Mortgage Loans Redwood), 5.05%, 2037

     1,040,000      918,528

White Bear Lake, MN, Multi-Family Housing Rev. (Birch Lake), “A”, 10.25%, 2019

     775,000      767,250

White Bear Lake, MN, Multi-Family Housing Rev. (Birch Lake), “B”, 0%, 2019

     660,000      343,200
         
      $ 9,331,589
         

Sales & Excise Tax Revenue – 4.0%

     

Bolingbrook, IL, Sales Tax Rev., 0% to 2008, 6.25% to 2024

   $ 250,000    $ 248,485

New York Local Government Assistance Corp., “E”, 5%, 2021

     3,000,000      3,092,340

Tampa, FL, Sports Authority Rev. (Sales Tax-Tampa Bay Arena), MBIA, 5.75%, 2025

     1,000,000      1,091,150
         
      $ 4,431,975
         

Single Family Housing - Local – 0.8%

     

Chicago, IL, Single Family Mortgage Rev., “A”, GNMA, 7.15%, 2031

   $ 15,000    $ 15,095

Minneapolis & St. Paul Housing Authority Rev. (City Living), “A-2”, GNMA, 5%, 2038

     492,796      432,596

Pittsburgh, PA, Urban Redevelopment Authority Rev., “C”, GNMA, 4.8%, 2028

     500,000      449,195
         
      $ 896,886
         

 

6


MFS Investment Grade Municipal Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/29/08 - continued

 

Issuer

   Shares/Par    Value ($)

Municipal Bonds – continued

     

Single Family Housing - State – 2.4%

     

Colorado Housing & Finance Authority Rev. (Single Family Project), “B-2”, 7.25%, 2031

   $ 55,000    $ 58,170

Maine Housing Authority Mortgage, “A-2”, 4.95%, 2027

     500,000      444,720

Montana Board Housing (Single Family Mortgage), “A”, 5%, 2036

     895,000      784,101

North Dakota Housing Finance Agency Rev., “A”, 4.85%, 2021

     500,000      460,410

Tennessee Housing Development Agency (Homeownership Program 2007), 4.65%, 2027

     1,000,000      865,480
         
      $ 2,612,881
         

Solid Waste Revenue – 2.0%

     

Delaware County, PA, Industrial Development Authority Rev. (American Ref-Fuel), “A”, 6.1%, 2013

   $ 1,000,000    $ 1,003,480

Massachusetts Industrial Finance Agency, Resource Recovery Rev. (Ogden Haverhill Associates), “A”, 5.45%, 2012

     1,250,000      1,261,575
         
      $ 2,265,055
         

State & Agency - Other – 0.2%

     

Commonwealth of Puerto Rico (Mepsi Campus), “A”, 6.25%, 2024

   $ 100,000    $ 95,339

Commonwealth of Puerto Rico (Mepsi Campus), “A”, 6.5%, 2037

     100,000      93,431
         
      $ 188,770
         

State & Local Agencies – 17.9%

     

Andover, MN, Economic Development Authority Public Facilities Lease Rev. (Andover Community Center), 5%, 2014 (j)

   $ 355,000    $ 379,410

Andover, MN, Economic Development Authority Public Facilities Lease Rev. (Andover Community Center), 5%, 2019 (c)

     245,000      249,246

Arizona Game & Fish Department (AGF Administration Building Project), 5%, 2026

     900,000      811,350

Berkeley County, SC, School District Installment Lease (Securing Assets for Education), 5%, 2028

     500,000      440,810

Dorchester County, SC, School District No. 2, Growth Remedy Opportunity Tax Hike, 5.25%, 2029

     250,000      228,075

Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Enhanced, “B”, 5.5%, 2013 (c)

     500,000      543,715

Hibbing, MN, Economic Development Authority Rev. (Public Project Hibbing Lease Obligations), 6.4%, 2012

     335,000      335,590

Indiana Office Building Commission Correction Facilities Program Rev. (Women’s Prison), “B”, AMBAC, 6.25%, 2016

     2,820,000      3,130,877

Kentucky Property & Buildings Commission Rev. (Project 73), 5.5%, 2014

     455,000      483,538

Lancaster Educational Assistance Program, Inc., School District Lancaster County Project, 5%, 2026

     550,000      476,911

Laurens County, SC, School District No. 55, Installment Purchase Rev., 5.25%, 2030

     350,000      301,777

Los Angeles County, CA, Schools Regionalized Business Service Corp., Capital Appreciation Pooled Financing, “A”, AMBAC, 0%, 2021

     2,135,000      1,005,051

Missouri Development Finance Board Infrastructure Facilities Rev. (Eastland Center Project), “A”, 5%, 2021

     570,000      534,637

Montana Facilities Finance Authority Healthcare Facilities Rev. (Master Loan Program Children’s Home), “B”, 4.75%, 2024

     250,000      226,103

New York Dormitory Authority Rev. (City University) “A”, 5.75%, 2018

     5,000,000      5,532,600

New York Dormitory Authority Rev., State University Facilities, “C”, FSA, 5.75%, 2017

     1,000,000      1,126,080

New York Urban Development Corp. Rev. (St. Facilities), 5.6%, 2015

     1,000,000      1,089,140

Newberry, SC, Investing in Children’s Education (Newberry County School District Program), 5%, 2030

     350,000      290,294

St. Louis, MO, Industrial Development Authority Leasehold Rev. (Convention Center Hotel), AMBAC, 0%, 2018

     300,000      173,598

Utah Building Ownership Authority Lease Rev. (St. Facilities Master Lease Program), “C”, FSA, 5.5%, 2019

     1,750,000      1,908,480

 

7


MFS Investment Grade Municipal Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/29/08 - continued

 

Issuer

   Shares/Par    Value ($)

Municipal Bonds – continued

     

State & Local Agencies – continued

     

West Virginia Building Commission Lease Rev. (WV Regional Jail), “A”, AMBAC, 5.375%, 2018

   $ 500,000    $ 531,525
         
      $ 19,798,807
         

Student Loan Revenue – 2.6%

     

Connecticut Higher Education Supplemental Loan Authority Rev. (Senior Family Education Loan Program), “A”, MBIA, 4.25%, 2019

   $ 1,415,000    $ 1,306,413

Nebhelp, Inc. Nebraska Rev. Jr., “A-6”, MBIA, 6.45%, 2018

     1,500,000      1,543,605
         
      $ 2,850,018
         

Tax - Other – 4.1%

     

Dallas County, TX, Flood Control District, 7.25%, 2032

   $ 500,000    $ 486,125

Dona Ana County, NM, Gross Receipts Tax Rev., AMBAC, 5.5%, 2015

     1,000,000      1,093,410

Hoffman Estates, IL, Park District Debt Certificate, 5%, 2016

     500,000      514,945

New Jersey Economic Development Authority Rev. (Cigarette Tax), 5.75%, 2029

     500,000      466,775

New York, NY, Transitional Finance Authority Rev., “A”, 5%, 2026

     1,960,000      1,924,838
         
      $ 4,486,093
         

Tax Assessment – 6.6%

     

Atlanta, GA, Tax Allocation (Eastside Project), “A”, 5.625%, 2016

   $ 400,000    $ 392,956

Celebration Community Development District, FL, “A”, 6.4%, 2034

     235,000      239,876

Chicago, IL, Tax Increment Allocation (Pilsen Redevelopment), “B”, 6.75%, 2022

     610,000      622,328

Coralville, IA, Urban Renewal Rev., Tax Increment, “C”, 5.125%, 2039

     500,000      413,480

Double Branch Community Development District, FL, “A”, 6.7%, 2034

     320,000      326,250

Du Page County, IL, Special Service Area (Monarch Landing Project), 5.4%, 2016

     250,000      241,360

Grand Bay at Doral Community Development, FL, “B”, 6%, 2017

     405,000      368,728

Heritage Harbour North Community Development District, FL, Capital Improvement Rev., 6.375%, 2038

     140,000      122,910

Huntington Beach, CA, Community Facilities District, Special Tax (Grand Coast Resort), “2000-1”, 6.45%, 2031

     300,000      301,644

Lincoln, CA, Special Tax (Community Facilities District ), “2003-1”, 5.55%, 2013 (c)

     445,000      492,361

Lincolnshire, IL, Special Service Area No. 1 (Sedgebrook Project), 6.25%, 2034

     225,000      205,828

Magnolia Park Community Development District, FL, Special Assessment Rev., “A”, 6.15%, 2039

     200,000      170,554

Oakdale, CA, Public Financing Authority Tax Allocation Rev. (Central City Redevelopment Project), 5.375%, 2033

     500,000      434,115

Plano, IL, Special Service Area No. 4 (Lakewood Springs Project Unit 5-B), 6%, 2035

     750,000      674,573

Portage, IN, Economic Development Rev. (Ameriplex Project), 5%, 2027

     105,000      94,545

Riverside, MO, Tax Increment Rev. (L-385 Levee Project), 5.25%, 2020

     500,000      488,555

Seven Oaks, FL, Community Development District II Special Assessment Rev., “A”, 5.875%, 2035

     475,000      394,008

Seven Oaks, FL, Community Development District II Special Assessment Rev., “B”, 5%, 2009

     150,000      146,366

Tolomato Community Development District, FL, Special Assessment Rev., 6.65%, 2040

     100,000      91,856

Volo Village, IL, Special Service Area No. 3, Special Tax (Symphony Meadows Project), “1”, 6%, 2036

     250,000      214,615

West Villages Improvement District, FL, Special Assessment Rev. (Unit of Development No. 3), 5.5%, 2037

     500,000      388,950

Westridge, FL, Community Development District, Capital Improvement Rev., 5.8%, 2037

     500,000      405,335
         
      $ 7,231,193
         

Tobacco – 4.5%

     

Badger, WI, Tobacco Asset Securitization Corp., 6.375%, 2032

   $ 250,000    $ 253,963

Buckeye, OH, Tobacco Settlement Rev., Asset Backed, “A-2”, 5.875%, 2030

     480,000      450,211

Buckeye, OH, Tobacco Settlement Rev., Asset Backed, “A-2”, 6.5%, 2047

     635,000      634,124

 

8


MFS Investment Grade Municipal Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/29/08 - continued

 

Issuer

   Shares/Par    Value ($)

Municipal Bonds – continued

     

Tobacco – continued

     

Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 6.25%, 2033 (c)

   $ 750,000    $ 819,525

Golden State, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., “A-1”, 5.75%, 2047

     750,000      673,208

Inland Empire, CA, Tobacco Securitization Corp., Tobacco Settlement Rev., Asset Backed, “C-1”, 0%, 2036

     250,000      33,280

Michigan Tobacco Settlement Finance Authority, Tobacco Settlement Rev., Asset Backed, “A”, 6%, 2048

     1,380,000      1,281,896

South Carolina Tobacco Settlement Authority Rev., “B”, 6.375%, 2028

     400,000      399,524

Tobacco Securitization Authority of Southern California Rev., Asset Backed (San Diego Country Tobacco Asset Securitization Corp.), 0%, 2046

     6,000,000      389,640

Virginia Tobacco Settlement Financing Corp., “B-1”, 5%, 2047

     105,000      82,964
         
      $ 5,018,335
         

Toll Roads – 2.6%

     

Foothill/Eastern Corridor Agency, CA, Toll Road Rev., “A”, 5%, 2035

   $ 1,000,000    $ 856,740

Northwest Parkway, CO, Public Highway Authority (First Tier), “D”, 7.125%, 2011 (c)

     500,000      564,225

San Joaquin Hills, CA, Transportation Corridor Agency Toll Road Rev., “A”, MBIA, 0%, 2015

     2,000,000      1,446,360
         
      $ 2,867,325
         

Transportation - Special Tax – 1.1%

     

Regional Transportation Authority IL, “C”,, FGIC, 7.75%, 2020

   $ 1,000,000    $ 1,264,770
         

Universities - Colleges – 8.9%

     

Broward County, FL, Educational Facilities Authority Educational Facilities (Nova Southeastern), “B”, 5.5%, 2024

   $ 155,000    $ 152,238

Chicago, IL, St. University Rev. Auxiliary Facilities Systems, MBIA, 5.5%, 2023

     1,085,000      1,145,098

Lubbock, TX, Educational Facilities Authority Rev. (Lubbock Christian University), 5.125%, 2027

     285,000      236,068

Lubbock, TX, Educational Facilities Authority Rev. (Lubbock Christian University), 5.25%, 2037

     135,000      110,587

Maryland Health & Higher Educational Facilities Authority Rev. (Loyola College), “A”, 5.125%, 2045

     200,000      182,544

Massachusetts Development Finance Agency Rev. (Western New England College), 6.125%, 2012 (c)

     315,000      354,060

Metropolitan Government of Nashville & Davidson County, TN, Health & Educational Facilities Board Rev. (Meharry Medical College), AMBAC, 6%, 2016

     1,575,000      1,763,811

Missouri Health & Educational Facilities Authority Rev. (Central Institute for the Deaf), RADIAN, 5.85%, 2010 (c)

     600,000      631,932

Pennsylvania Higher Educational Facilities Authority Rev. (University of Philadelphia), “A”, 5.125%, 2025

     500,000      442,850

Texas Tech University Rev. (Improvement Financing Systems), AMBAC, 5%, 2009 (c)

     2,000,000      2,046,360

University of Minnesota, “A”, ETM, 5.75%, 2014 (c)

     500,000      560,875

University of Minnesota, “A”, ETM, 5.5%, 2021 (c)

     2,000,000      2,166,040
         
      $ 9,792,463
         

Universities - Dormitories – 0.9%

     

California Statewide Communities Development Authority Rev. (Lancer Educational Student Housing Project), 5.625%, 2033

   $ 500,000    $ 438,650

Middlesex County, NJ, Improvement Authority (Street Student Housing Project), “A”, 5%, 2018

     300,000      293,313

Minneapolis, MN, Student Housing Rev. (Riverton Community Housing Project), “A”, 5.7%, 2040

     250,000      216,785
         
      $ 948,748
         

 

9


MFS Investment Grade Municipal Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/29/08 - continued

 

Issuer

   Shares/Par    Value ($)

Municipal Bonds – continued

     

Universities - Secondary Schools – 0.3%

     

New Hampshire Business Finance Authority Rev. (Proctor Academy Project), “A”, 5.4%, 2017

   $ 315,000    $ 309,806
         

Utilities - Cogeneration – 1.5%

     

Pennsylvania Economic Development Financing Authority Rev., Resources Recovery Rev. (Colver), “G”, 5.125%, 2015

   $ 425,000    $ 405,493

Puerto Rico Industrial, Tourist, Educational, Medical & Environmental Central Facilities (Cogeneration Facilities - AES Puerto Rico Project), 6.625%, 2026

     320,000      332,614

Suffolk County, NY, Industrial Development Agency Rev. (Nissequoque Cogeneration Partners Facilities), 5.5%, 2023

     550,000      492,811

Western Generation Agency, OR, Cogeneration Project Rev. (Wauna Cogeneration Project), “B”, 5%, 2016

     500,000      474,510
         
      $ 1,705,428
         

Utilities - Investor Owned – 10.0%

     

Brazos River Authority, TX, Pollution Control Rev. (Texas Utility Co.), 7.7%, 2033

   $ 250,000    $ 250,935

Brazos River Authority, TX, Pollution Control Rev. (TXU Electric Co. LLC), “C”, 5.75%, 2036 (a)

     100,000      94,726

Brazos River Authority, TX, Pollution Control Rev. (TXU Electric Co. LLC), “C”, 6.75%, 2038

     270,000      241,704

Campbell County, WY, Pollution Control Rev. (Black Hills Power, Inc. Project), 5.35%, 2024

     500,000      469,655

Clark County, NV, Industrial Development Rev. (Nevada Power Co. Project), “A”, 5.9%, 2032

     250,000      216,580

Clark County, NV, Industrial Development Rev. (Nevada Power Co. Project), “B”, 5.9%, 2030

     250,000      218,248

Clark County, NV, Industrial Development Rev. (Southwest Gas Corp. Project), “E”, 5.8%, 2038 (a)

     250,000      254,213

Converse County, WY, Pollution Control Rev. (PacifiCorp), 3.9%, 2014 (a)

     500,000      487,005

Matagorda County, TX, Nav District 1 (Houston Ltg.), AMBAC, 5.125%, 2028

     2,000,000      1,683,660

Michigan Strategic Fund, Ltd. Obligation Rev. (Detroit Edison), “A”, MBIA, 5.55%, 2029

     3,000,000      3,032,130

Mississippi Business Finance Corp., Pollution Control Rev. (Systems Energy Resources Project), 5.875%, 2022

     1,000,000      1,003,380

New Hampshire Business Finance Authority, Pollution Control Rev. (Public Service of New Hampshire), “B”, MBIA, 4.75%, 2021

     250,000      238,228

Pennsylvania Economic Development Financing Authority Rev. (Reliant Energy Seward), “A”, 6.75%, 2036

     200,000      198,966

Petersburg, IN, Pollution Control Rev. (Indianapolis Power & Light), MBIA, 5.4%, 2017

     2,500,000      2,661,025
         
      $ 11,050,455
         

Utilities - Municipal Owned – 2.5%

     

North Carolina Eastern Municipal Power Agency System Rev., “F”, 5.5%, 2016

   $ 285,000    $ 294,468

North Carolina Municipal Power Agency No. 1 Catawba Electric Rev., “A”, MBIA, 5.5%, 2015

     640,000      699,585

North Carolina Municipal Power Agency No. 1 Catawba Electric Rev., ETM, 5%, 2020 (c)

     1,670,000      1,750,394
         
      $ 2,744,447
         

Utilities - Other – 0.7%

     

Main Street Natural Gas, Inc., GA, “A”, 5.5%, 2028

   $ 250,000    $ 209,293

Salt Verde Financial Corp., AZ, Senior Gas Rev., 5%, 2037

     640,000      516,770
         
      $ 726,063
         

Water & Sewer Utility Revenue – 2.3%

     

Massachusetts Water Resources Authority (Charlestown Navy Yard), FSA, 5.25%, 2029

   $ 600,000    $ 607,698

Puerto Rico Aqueduct & Sewer Authority Rev., MBIA, 6.25%, 2012

     1,000,000      1,092,990

 

10


MFS Investment Grade Municipal Trust

PORTFOLIO OF INVESTMENTS (Unaudited) 2/29/08 - continued

 

Issuer

   Shares/Par    Value ($)  

Municipal Bonds – continued

     

Water & Sewer Utility Revenue – continued

     

Puerto Rico Aqueduct & Sewer Authority Rev., MBIA, 6.25%, 2013

   $ 750,000    $ 827,483  
           
      $ 2,528,171  
           

Total Municipal Bonds

      $ 167,442,353  
           

Floating Rate Demand Notes – 1.1%

     

East Baton Rouge, LA, Pollution Control Rev. (Exxon Mobil Corp.), 3.09%, due 3/03/08

   $ 1,200,000    $ 1,200,000  
           

Total Investments

      $ 168,642,353  
           

Other Assets, Less Liabilities 1.6%

        1,704,395  
           

Preferred shares (issued by the fund) (54.4)%

        (60,000,000 )
           

Net assets applicable to common shares – 100.0%

      $ 110,346,748  
           

 

(a) Mandatory tender date is earlier than stated maturity date.

 

(c) Refunded bond.

 

(d) Non-income producing security - in default.

 

(f) All or a portion of the security has been segregated as collateral for an open futures contract.

 

(j) Crossover refunded bond.

 

(n) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in the ordinary course of business in transactions exempt from registration, normally to qualified institutional buyers. At period end, the aggregate value of these securities was $2,871,822, representing 2.6% of net assets applicable to common shares.

 

(u) Underlying security deposited into special purpose trust (“the trust”) by investment banker upon creation of self-deposited inverse floaters.

 

(z) Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an acceptable price may be difficult. The fund holds the following restricted securities:

 

Restricted Securities

   Acquisition
Date
   Acquisition
Cost
   Current
Market Value
 

Cabazon Band Mission Indians, CA, 8.375%, 2015

   10/04/04    $ 100,000    $ 103,082  

Cabazon Band Mission Indians, CA, 8.75%, 2019

   10/04/04      360,000      371,970  

Pass-Through Certificates, “1993”, 8.5%, 2016

   8/27/93      232,276      224,397  
              

Total Restricted Securities

         $ 699,449  

% of Net Assets applicable to common shares

           0.6 %

 

The following abbreviations are used in this report and are defined:
COP    Certificate of Participation
ETM    Escrowed to Maturity
FRN    Floating Rate Note. Interest rate resets periodically and may not be the rate reported at period end.

Insurers

AMBAC    AMBAC Indemnity Corp.
ASSD GTY    Assured Guaranty Insurance Co.
FGIC    Financial Guaranty Insurance Co.
FHA    Federal Housing Administration
FSA    Financial Security Assurance Inc.
GNMA    Government National Mortgage Assn.
MBIA    MBIA Insurance Corp.
RADIAN    Radian Asset Assurance, Inc.

See attached supplemental information. For more information see notes to financial statements as disclosed in the most recent semiannual or annual report.

 

11


MFS Investment Grade Muncipal Trust

Supplemental Information (Unaudited) 2/29/08

(1) Fair Value Disclosure

The fund adopted FASB Statement No. 157, Fair Value Measurements (the “Statement”) in this reporting period. This Statement provides a single definition of fair value, a hierarchy for measuring fair value and expanded disclosures about fair value measurements.

Various inputs are used in determining the value of the fund’s investments. These inputs are categorized into three broad levels. Level 1 include quoted prices in active markets for identical assets or liabilities. Level 2 include other significant observable market-based inputs (including quoted prices for similar securities, interest rates, prepayment speed, credit risk, etc.). Level 3 include unobservable inputs, which may include the adviser’s own assumptions in determining the fair value of investments. Other financial instruments are derivative instruments not reflected in Total Investments, such as futures, forwards, swap contracts and written options, which are valued at the unrealized appreciation/depreciation on the instrument. The following is a summary of the levels used as of February 29, 2008 in valuing the fund’s assets carried at market value:

 

     Level 1     Level 2    Level 3    Total  

Investments in Securities

     $ 168,642,353       $ 168,642,353  

Other Financial Instruments

   (1,414,872 )           (1,414,872 )

(2) Portfolio Securities

The cost and unrealized appreciation and depreciation in the value of the investments owned by the fund, as computed on a federal income tax basis, are as follows:

 

Aggregate Cost

   $ 171,562,501  
        

Gross unrealized appreciation

   $ 6,677,287  

Gross unrealized depreciation

     (10,603,185 )
        

Net unrealized appreciation (depreciation)

   $ (3,925,898 )
        

The aggregate cost above includes prior fiscal year end tax adjustments.

(3) Derivative Contracts at 2/29/08

Futures contracts outstanding at 2/29/08

 

Description

   Contracts    Value    Expiration
Date
   Unrealized
Appreciation
(Depreciation)
 

U.S. Treasury Bond (Short)

   117    $ 13,879,125    Jun-08    $ (440,074 )

U.S. Treasury Note 10 yr (Short)

   324      37,999,125    Jun-08      (974,798 )
                 
            $ (1,414,872 )
                 

At February 29, 2008, the fund had sufficient cash and/or other liquid securities to cover any commitments under these derivative contracts.

 

12


ITEM 2. CONTROLS AND PROCEDURES.

 

(a) Based upon their evaluation of the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) as conducted within 90 days of the filing date of this Form N-Q, the registrant’s principal financial officer and principal executive officer have concluded that those disclosure controls and procedures provide reasonable assurance that the material information required to be disclosed by the registrant on this report is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

 

(b) There were no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 3. EXHIBITS.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto.


Notice

A copy of the Agreement and Declaration of Trust, as amended, of the Registrant is on file with the Secretary of State of The Commonwealth of Massachusetts and notice is hereby given that this instrument is executed on behalf of the Registrant by an officer of the Registrant as an officer and not individually and the obligations of or arising out of this instrument are not binding upon any of the Trustees or shareholders individually, but are binding only upon the assets and property of the respective constituent series of the Registrant.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: MFS INVESTMENT GRADE MUNICIPAL TRUST

 

By (Signature and Title)*    ROBERT J. MANNING
  Robert J. Manning, President

Date: April 14, 2008

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: April 14, 2008

By (Signature and Title)*    MARIA F. DWYER
 

Maria F. Dwyer, Treasurer

(Principal Financial Officer and Accounting Officer)

Date: April 14, 2008

 

* Print name and title of each signing officer under his or her signature.