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 811-5912
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MFS SPECIAL VALUE TRUST
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(Exact name of registrant as specified in charter)
500 Boylston Street, Boston, Massachusetts 02116
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(Address of principal executive offices) (Zip code)
Susan S. Newton
Massachusetts Financial Services Company
500 Boylston Street
Boston, Massachusetts 02116
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(Name and address of agents for service)
Registrant's telephone number, including area code: (617) 954-5000
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Date of fiscal year end: October 31
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Date of reporting period: July 31, 2006
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ITEM 1. SCHEDULE OF INVESTMENTS.
MFS(R) Special Value Trust
7/31/06
Quarterly portfolio holdings
[graphic omitted]
M F S(R)
INVESTMENT MANAGEMENT
MFS Special Value Trust
PORTFOLIO OF INVESTMENTS (Unaudited) 07/31/2006
ISSUER SHARES/PAR VALUE ($)
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BONDS - 68.1%
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AIRLINES 0.9%
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Continental Airlines, Inc., 8.307%, 2018 $ 210,553 $ 203,537
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Continental Airlines, Inc., 6.795%, 2018 313,449 297,873
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Continental Airlines, Inc., 7.566%, 2020 55,017 53,970
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$ 555,380
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APPAREL MANUFACTURERS 1.1%
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Levi Strauss & Co., 9.75%, 2015 $ 345,000 $ 353,625
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Propex Fabrics, Inc., 10%, 2012 395,000 351,550
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$ 705,175
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ASSET BACKED & SECURITIZED 2.9%
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Anthracite CDO Ltd., 6%, 2037 (z) $ 450,000 $ 410,027
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Asset Securitization Corp., FRN, 8.4991%, 2029 (z) 700,000 666,859
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Falcon Franchise Loan LLC, FRN, 3.9126%, 2025 (i)(z) 589,495 94,811
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Morgan Stanley Capital I, Inc., FRN, 1.4476%, 2039 (a)(i) 697,506 46,849
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Preferred Term Securities XII Ltd., 9.8%, 2033 (e)(z) 225,000 202,219
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Preferred Term Securities XVI Ltd., 14%, 2035 (e)(z) 300,000 270,915
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Preferred Term Securities XVII Ltd., 9.3%, 2035 (e)(z) 187,000 169,469
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$ 1,861,149
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AUTOMOTIVE 7.1%
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American Axle & Manufacturing, Inc., 5.25%, 2014 $ 100,000 $ 82,500
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Cooper Standard Automotive, Inc., 8.375%, 2014 365,000 273,750
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Ford Motor Credit Co., 6.625%, 2008 414,000 398,810
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Ford Motor Credit Co., 5.625%, 2008 120,000 112,697
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Ford Motor Credit Co., 5.8%, 2009 475,000 441,605
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Ford Motor Credit Co., 9.75%, 2010 (a) 100,000 98,975
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Ford Motor Credit Co., 8.625%, 2010 125,000 120,165
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Ford Motor Credit Co., 7%, 2013 492,000 432,136
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General Motors Acceptance Corp., 6.875%, 2011 224,000 216,898
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General Motors Acceptance Corp., 6.75%, 2014 937,000 882,015
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General Motors Acceptance Corp., 8%, 2031 444,000 435,432
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General Motors Corp., 8.375%, 2033 231,000 189,420
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Goodyear Tire & Rubber Co., 9%, 2015 575,000 553,437
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Lear Corp., 8.11%, 2009 259,000 251,878
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Lear Corp., 5.75%, 2014 70,000 56,700
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$ 4,546,418
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BANKS & CREDIT COMPANIES 0.7%
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ATF Bank, 9%, 2016 (a) $ 142,000 $ 140,608
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ATF Bank JSC, 9.25%, 2012 (a) 219,000 223,106
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Russian Standard Finance S.A., 8.625%, 2011 (a) 101,000 99,106
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$ 462,820
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BROADCASTING 4.7%
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Allbritton Communications Co., 7.75%, 2012 $ 350,000 $ 346,500
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EchoStar DBS Corp., 6.375%, 2011 150,000 146,625
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Granite Broadcasting Corp., 9.75%, 2010 340,000 315,350
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Hughes Network Systems LLC, 9.5%, 2014 (a) 145,000 144,275
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Inmarsat Finance II PLC, 0% to 2008, 10.375% to 2012 360,000 307,800
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Intelsat Ltd., 7.625%, 2012 230,000 191,762
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Intelsat Ltd., 9.25%, 2016 (a) 125,000 127,812
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Intelsat Ltd., 11.25%, 2016 (a) 45,000 45,450
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Intelsat Ltd., 0% to 2010, 9.25% to 2015 (a) 180,000 121,950
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Intelsat Subsidiary Holding Co. Ltd., 8.625%, 2015 135,000 133,650
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LBI Media Holdings, Inc., 0% to 2008, 11% to 2013 875,000 721,875
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XM Satellite Radio, Inc., 9.75%, 2014 (a) 295,000 272,138
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Young Broadcasting, Inc., 10%, 2011 110,000 100,925
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$ 2,976,112
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BUILDING 2.0%
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Goodman Global Holdings, Inc., 7.875%, 2012 $ 335,000 $ 310,712
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Interface, Inc., 10.375%, 2010 180,000 196,650
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Interface, Inc., 9.5%, 2014 170,000 174,250
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Nortek Holdings, Inc., 8.5%, 2014 65,000 60,775
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Nortek Holdings, Inc., 0% to 2009, 10.75% to 2014 807,000 564,900
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$ 1,307,287
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BUSINESS SERVICES 0.8%
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Nortel Networks Ltd., 10.75%, 2016 (a) $ 150,000 $ 153,188
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Northern Telecom Corp., 6.875%, 2023 75,000 59,625
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SunGard Data Systems, 10.25%, 2015 280,000 283,850
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$ 496,663
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CABLE TV 3.9%
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Cablevision Systems Corp., 8%, 2012 $ 180,000 $ 178,200
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CCH I Holdings LLC, 9.92%, 2014 358,000 229,120
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CCH I Holdings LLC, 11%, 2015 808,000 725,180
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Corsair B.V., FRN, 11.35%, 2016 95,094 95,094
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CSC Holdings, Inc., 7.25%, 2012 (a) 110,000 106,287
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Kabel Deutschland, 10.625%, 2014 (a) 230,000 243,800
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Mediacom LLC, 9.5%, 2013 440,000 445,500
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Telenet Group Holdings N.V., 0% to 2008, 11.5% to 2014 (a) 510,000 433,500
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$ 2,456,681
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CHEMICALS 3.8%
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Basell AF SCA, 8.375%, 2015 (a) $ 395,000 $ 383,644
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Crystal U.S. Holdings LLC, "A", 0% to 2009, 10% to 2014 36,000 28,440
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Crystal U.S. Holdings LLC, "B", 0% to 2009, 10.5% to 2014 455,000 354,900
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Equistar Chemicals, 10.625%, 2011 40,000 43,000
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Huntsman International LLC, 10.125%, 2009 1,000 1,015
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Huntsman International LLC, 7.375%, 2015 (a) 175,000 162,531
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KI Holdings, Inc., 0% to 2009, 9.875% to 2014 547,000 400,677
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Lyondell Chemical Co., 11.125%, 2012 340,000 370,175
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Nalco Co., 8.875%, 2013 505,000 510,050
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Polypore, Inc., 8.75%, 2012 195,000 186,469
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Rockwood Specialties Group, Inc., 10.625%, 2011 4,000 4,300
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$ 2,445,201
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CONSTRUCTION 0.0%
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Technical Olympic USA, Inc., 7.5%, 2015 $ 35,000 $ 27,125
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CONSUMER GOODS & SERVICES 1.8%
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AAC Group Holding Corp., 12.75%, 2012 (a)(p) $ 236,000 $ 239,540
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Affinion Group, Inc., 11.5%, 2015 (a) 195,000 195,487
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GEO Group, Inc., 8.25%, 2013 210,000 208,950
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Jarden Corp., 9.75%, 2012 105,000 109,200
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Playtex Products, Inc., 9.375%, 2011 65,000 67,844
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Revlon Consumer Products Corp., 9.5%, 2011 375,000 316,875
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Simmons Co., 7.875%, 2014 40,000 37,700
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$ 1,175,596
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CONTAINERS 1.3%
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Crown Americas, 7.75%, 2015 (a) $ 140,000 $ 138,075
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Graham Packaging Co. LP, 9.875%, 2014 515,000 500,837
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Owens-Brockway Glass Container, Inc., 8.25%, 2013 160,000 162,000
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$ 800,912
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DEFENSE ELECTRONICS 0.2%
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L-3 Communications Holdings, Inc., 6.125%, 2014 $ 130,000 $ 124,475
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ELECTRONICS 0.3%
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Magnachip Semiconductor S.A., 8%, 2014 $ 20,000 $ 13,250
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Sensata Technologies B.V., 8%, 2014 (a) 220,000 211,200
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$ 224,450
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EMERGING MARKET QUASI-SOVEREIGN 0.6%
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Gazprom OAO, 9.625%, 2013 (a) $ 150,000 $ 175,500
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Gazprom OAO, 9.625%, 2013 60,000 70,200
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Pemex Project Funding Master Trust, 8.625%, 2022 143,000 166,417
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$ 412,117
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EMERGING MARKET SOVEREIGN 0.8%
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Federative Republic of Brazil, 8.875%, 2019 $ 242,000 $ 280,720
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Republic of Argentina, FRN, 0%, 2035 1,066,000 99,138
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Republic of Panama, 9.375%, 2029 93,000 114,390
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Republic of Panama, 6.7%, 2036 28,000 26,600
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$ 520,848
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ENERGY INDEPENDENT 1.4%
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Chesapeake Energy Corp., 6.375%, 2015 $ 425,000 $ 399,500
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Chesapeake Energy Corp., 6.875%, 2016 285,000 275,025
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Hilcorp Energy I, 9%, 2016 (a) 75,000 77,625
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Whiting Petroleum Corp., 7%, 2014 135,000 132,300
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$ 884,450
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ENTERTAINMENT 1.9%
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AMC Entertainment, Inc., 11%, 2016 $ 180,000 $ 194,400
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HRP Myrtle Beach Operations, FRN, 9.8181%, 2012 (z) 155,000 153,837
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Marquee Holdings, Inc., 0% to 2009, 12% to 2014 415,000 306,063
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Six Flags, Inc., 8.875%, 2010 180,000 173,475
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Six Flags, Inc., 9.75%, 2013 390,000 358,313
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$ 1,186,088
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FOOD & BEVERAGES 0.5%
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Chaoda Modern Agriculture Holdings, 7.75%, 2010 (a) $ 359,000 $ 341,050
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FOREST & PAPER PRODUCTS 3.2%
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Graphic Packaging International Corp., 9.5%, 2013 $ 545,000 $ 545,000
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Jefferson Smurfit Corp., 8.25%, 2012 625,000 590,625
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JSG Funding LLC, 11.5%, 2015 (a)(p) EUR 295,712 384,293
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JSG Funding PLC, 7.75%, 2015 $ 30,000 27,375
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Millar Western Forest Products Ltd., 7.75%, 2013 235,000 178,013
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Sino-Forest Corp., 9.125%, 2011 (a) 12,000 12,390
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Stone Container Corp., 7.375%, 2014 90,000 80,100
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Verso Paper Holdings LLC, 9.125%, 2014 (a) 100,000 100,000
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Verso Paper Holdings LLC, 11.375%, 2016 (a) 95,000 94,525
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$ 2,012,321
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GAMING & LODGING 3.6%
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Greektown Holdings, 10.75%, 2013 (a) $ 345,000 $ 364,837
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Majestic Star Casino LLC, 9.75%, 2011 (a) 125,000 123,125
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MTR Gaming Group, Inc., 9%, 2012 (a) 80,000 81,200
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NCL Corp. Ltd., 11.625%, 2014 360,000 351,000
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Pinnacle Entertainment, Inc., 8.25%, 2012 $ 195,000 $ 194,513
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Pokagon Gaming Authority, 10.375%, 2014 (a) 215,000 224,675
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Resorts International Hotel & Casino, Inc., 11.5%, 2009 400,000 428,000
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Trump Entertainment Resorts Holdings, Inc., 8.5%, 2015 320,000 307,200
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Wynn Las Vegas LLC, 6.625%, 2014 230,000 216,775
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$ 2,291,325
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INDUSTRIAL 2.8%
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Amsted Industries, Inc., 10.25%, 2011 (z) $ 195,000 $ 209,625
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Da-Lite Screen Co., Inc., 9.5%, 2011 120,000 126,300
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Education Management LLC, 10.25%, 2016 (a) 205,000 207,050
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Interline Brands, Inc., 8.125%, 2014 (a) 60,000 60,450
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JohnsonDiversey Holdings, Inc., "B", 9.625%, 2012 380,000 376,200
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JohnsonDiversey Holdings, Inc., 0% to 2007, 10.67% to 2013 335,000 284,750
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Knowledge Learning Corp., 7.75%, 2015 (z) 85,000 78,200
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Milacron Escrow Corp., 11.5%, 2011 390,000 360,750
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RBS Global & Rexnord Corp., 11.75%, 2016 (a) 80,000 81,800
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$ 1,785,125
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MACHINERY & TOOLS 0.9%
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Case Corp., 7.25%, 2016 $ 220,000 $ 213,400
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Case New Holland, Inc., 9.25%, 2011 120,000 126,450
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Case New Holland, Inc., 7.125%, 2014 215,000 209,087
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$ 548,937
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MEDICAL & HEALTH TECHNOLOGY & SERVICES 3.4%
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Accellent, Inc., 10.5%, 2013 $ 135,000 $ 139,050
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CDRV Investors, Inc., 0% to 2010, 9.625% to 2015 370,000 261,775
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DaVita, Inc., 6.625%, 2013 80,000 76,200
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DaVita, Inc., 7.25%, 2015 150,000 143,437
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Hanger Orthopedic Group, 10.25%, 2014 (a) 155,000 153,837
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HCA, Inc., 8.75%, 2010 70,000 70,525
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HCA, Inc., 6.375%, 2015 365,000 292,912
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HealthSouth Corp., 10.75%, 2016 (a) 415,000 396,325
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Select Medical Corp., 7.625%, 2015 175,000 148,750
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Triad Hospitals, Inc., 7%, 2013 125,000 119,375
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US Oncology, Inc., 10.75%, 2014 275,000 298,375
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Vanguard Health Holding II, 9%, 2014 50,000 48,375
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$ 2,148,936
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NATURAL GAS PIPELINE 1.3%
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ANR Pipeline Co., 9.625%, 2021 $ 105,000 $ 124,723
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Atlas Pipeline Partners LP, 8.125%, 2015 (a) 80,000 80,600
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Colorado Interstate Gas Co., 5.95%, 2015 95,000 87,642
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El Paso Energy Corp., 7%, 2011 250,000 247,812
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El Paso Energy Corp., 7.75%, 2013 165,000 167,681
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El Paso Performance-Linked, 7.75%, 2011 (a) 140,000 140,875
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$ 849,333
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NETWORK & TELECOM 3.0%
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Cincinnati Bell, Inc., 8.375%, 2014 $ 195,000 $ 191,100
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Citizens Communications Co., 9.25%, 2011 170,000 184,450
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Citizens Communications Co., 9%, 2031 240,000 246,000
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Global Crossing UK Finance, 10.75%, 2014 180,000 190,800
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Hawaiian Telecom Communications, Inc., 9.75%, 2013 130,000 132,600
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Hawaiian Telecom Communications, Inc., 12.5%, 2015 190,000 200,450
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Nordic Telephone Co. Holdings, 8.875%, 2016 (a) 105,000 108,150
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Qwest Corp., 7.875%, 2011 145,000 150,075
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Qwest Corp., 8.875%, 2012 175,000 188,563
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Time Warner Telecom Holdings, Inc., 9.25%, 2014 70,000 71,925
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Verizon New York, Inc., 7.375%, 2032 144,000 145,558
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Windstream Corp., 8.625%, 2016 (a) 95,000 98,800
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$ 1,908,471
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OIL SERVICES 0.4%
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Basic Energy Services, Inc., 7.125%, 2016 (a) $ 110,000 $ 102,575
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Hanover Compressor Co., 9%, 2014 125,000 133,125
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$ 235,700
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PHARMACEUTICALS 0.6%
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Warner Chilcott Corp., 8.75%, 2015 $ 375,000 $ 372,188
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PRINTING & PUBLISHING 3.3%
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American Media Operations, Inc., 8.875%, 2011 $ 260,000 $ 228,800
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Dex Media, Inc., 0% to 2008, 9% to 2013 545,000 449,625
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Dex Media, Inc., 0% to 2008, 9% to 2013 210,000 173,250
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Houghton Mifflin Co., 0% to 2008, 11.5% to 2013 385,000 318,587
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PRIMEDIA, Inc., 8.875%, 2011 295,000 280,988
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PRIMEDIA, Inc., 8%, 2013 25,000 21,938
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R.H. Donnelley Corp., 8.875%, 2016 240,000 239,100
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WDAC Subsidiary Corp., 8.375%, 2014 (a) 365,000 363,175
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$ 2,075,463
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RAILROAD & SHIPPING 0.2%
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TFM S.A. de C.V., 9.375%, 2012 $ 121,000 $ 128,563
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RESTAURANTS 0.6%
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Denny's Corp. Holdings, Inc., 10%, 2012 $ 100,000 $ 100,500
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El Pollo Loco, Inc., 11.75%, 2013 (a) 135,000 153,900
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Uno Restaurant Corp., 10%, 2011 (z) 195,000 150,638
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$ 405,038
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RETAILERS - 2.8%
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Buhrmann U.S., Inc., 7.875%, 2015 $ 180,000 $ 174,600
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Burlington Coat Factory Warehouse Corp., 11.125%, 2014 (a) 235,000 224,719
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Burlington Coat Factory Warehouse Corp., 0% to 2008, 14.5% to 2014 (a) 385,000 305,112
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Couche-Tard, Inc., 7.5%, 2013 170,000 169,575
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Eye Care Centers of America, 10.75%, 2015 145,000 155,512
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Jean Coutu Group (PJC), Inc., 7.625%, 2012 115,000 111,837
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Jean Coutu Group (PJC), Inc., 8.5%, 2014 125,000 116,719
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Mothers Work, Inc., 11.25%, 2010 145,000 152,975
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Neiman Marcus Group, Inc., 9%, 2015 165,000 173,869
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Neiman Marcus Group, Inc., 10.375%, 2015 140,000 148,575
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Rite Aid Corp., 7.7%, 2027 95,000 79,088
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$ 1,812,581
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SPECIALTY STORES 0.7%
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GSC Holdings Corp., 8%, 2012 $ 300,000 $ 304,500
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Payless ShoeSource, Inc., 8.25%, 2013 125,000 127,969
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$ 432,469
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STEEL 0.3%
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Chaparral Steel Co., 10%, 2013 $ 155,000 $ 170,887
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SUPERMARKETS 0.1%
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Pathmark Stores, Inc., 8.75%, 2012 $ 60,000 $ 56,100
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TELECOMMUNICATIONS WIRELESS 1.1%
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Centennial Communications Corp., 10%, 2013 $ 30,000 $ 29,925
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Centennial Communications Corp., 10.125%, 2013 140,000 147,700
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Rogers Wireless, Inc., 7.5%, 2015 65,000 66,625
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Rural Cellular Corp., 9.75%, 2010 213,000 213,533
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Wind Acquisition Finance S.A., 10.75%, 2015 (a) 225,000 242,438
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$ 700,221
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TOBACCO 0.5%
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Reynolds American, Inc., 7.3%, 2015 (a) $ 340,000 $ 340,223
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TRANSPORTATION 0.4%
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PT Arpeni Pratama Ocean Line Tbk, 8.75%, 2013 (a) $ 275,000 $ 272,831
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UTILITIES ELECTRIC POWER 2.2%
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Edison Mission Energy, 7.75%, 2016 (a) $ 160,000 $ 158,000
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Midwest Generation LLC, 8.75%, 2034 145,000 154,244
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Mission Energy Holding Co., 13.5%, 2008 130,000 145,275
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NGC Corp. Capital Trust, 8.316%, 2027 275,000 236,500
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NRG Energy, Inc., 7.375%, 2016 430,000 420,325
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Reliant Energy, Inc., 6.75%, 2014 60,000 56,100
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Reliant Resources, Inc., 9.25%, 2010 200,000 205,000
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$ 1,375,444
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TOTAL BONDS $ 43,432,153
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COMMON STOCKS - 24.8%
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AUTOMOTIVE - 0.9%
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Magna International, Inc., "A" (l) 7,600 $ 558,524
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BROADCASTING 0.4%
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Sinclair Broadcast Group, Inc., "A" (l) 30,000 $ 252,600
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BUSINESS SERVICES 0.0%
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Anacomp, Inc., "B" (l)(n) 30 $ 247
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CHEMICALS 0.4%
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Huntsman Corp. (n) 10,800 $ 172,260
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Nalco Holding Co. (l)(n) 6,600 111,210
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$ 283,470
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COMPUTER SOFTWARE 1.7%
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Symantec Corp. (l)(n) 61,100 $ 1,061,307
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CONSTRUCTION 1.4%
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Masco Corp. (l) 33,700 $ 900,801
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CONSUMER GOODS & SERVICES 0.2%
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Brink's Co. (l) 2,200 $ 121,198
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CONTAINERS 2.5%
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Crown Holdings, Inc. (n) 8,400 $ 139,944
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Owens-Illinois, Inc. (l)(n) 97,000 1,467,610
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$ 1,607,554
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ELECTRICAL EQUIPMENT 1.7%
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Tyco International Ltd. 41,200 $ 1,074,908
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ENERGY INDEPENDENT 1.9%
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Apache Corp. (l) 15,200 $ 1,071,144
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Foundation Coal Holdings, Inc. (l) 3,000 114,420
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$ 1,185,564
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MEDICAL & HEALTH TECHNOLOGY & SERVICES 1.6%
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HCA, Inc. (l) 1,200 $ 58,992
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Tenet Healthcare Corp. (l)(n) 164,600 974,432
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$ 1,033,424
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MEDICAL EQUIPMENT 1.4%
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Pall Corp. (l) 35,400 $ 923,232
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METALS & MINING 0.0%
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International Utility Structures, Inc. (n) 254,700 $ 0
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NATURAL GAS DISTRIBUTION 0.2%
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Ferrell Gas Partners LP 6,088 $ 136,919
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NETWORK & TELECOM 1.3%
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Nortel Networks Corp. (l)(n) 439,300 $ 861,028
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OIL SERVICES 3.2%
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GlobalSantaFe Corp. (l) 36,830 $ 2,023,072
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PHARMACEUTICALS 1.9%
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Wyeth 24,600 $ 1,192,362
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PRINTING & PUBLISHING 0.0%
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Golden Books Family Entertainment, Inc. (n) 53,266 $ 0
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REAL ESTATE 0.2%
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Mills Corp., REIT (l) 5,500 $ 127,490
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SPECIALTY CHEMICALS 0.3%
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Lyondell Chemical Co. (l) 8,500 $ 189,295
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Sterling Chemicals, Inc. (n) 8 111
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$ 189,406
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TELECOMMUNICATIONS WIRELESS 0.1%
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Vodafone Group PLC, ADR 3,878 $ 84,075
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TELEPHONE SERVICES 3.0%
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Adelphia Business Solutions, Inc. (n) 40,000 $ 0
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Embarq Corp. (l) 3,115 140,954
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NTL, Inc. (l) 17,030 389,135
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Sprint Nextel Corp. 62,300 1,233,540
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Windstream Corp. 10,000 125,300
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$ 1,888,929
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UTILITIES ELECTRIC POWER 0.5%
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NRG Energy, Inc. (l)(n) 6,227 $ 306,680
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TOTAL COMMON STOCKS $ 15,812,790
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FLOATING RATE LOANS 0.9% (G)(R)
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CONTAINERS 0.4%
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Bluegrass Container Co. LLC, Second Lien Term Loan, 10.4%, 2013 $ 284,090 $ 286,458
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GAMING & LODGING 0.5%
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Gulfside Casino, Inc., Term Loan B, 10.44%, 2012 $ 291,199 $ 291,199
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TOTAL FLOATING RATE LOANS $ 577,657
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CONVERTIBLE PREFERRED STOCKS 0.6%
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AUTOMOTIVE 0.4%
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General Motors Corp., "B", 5.25% (l) 11,705 $ 230,003
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REAL ESTATE 0.2%
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Mills Corp., 6.75% (z) 100 $ 79,750
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Mills Corp., "F", 6.75% 100 $ 79,750
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$ 159,500
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TOTAL CONVERTIBLE PREFERRED STOCKS $ 389,503
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PREFERRED STOCKS - 3.5%
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BROADCASTING - 3.5%
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Ion Media Networks, Inc., 14.25% (p) 158 $ 1,350,900
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Spanish Broadcasting Systems, Inc., "B", 10.75% (p) 775 835,063
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$ 2,185,963
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CONSUMER GOODS & SERVICES 0.0%
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Renaissance Cosmetics, Inc., 14% (n) 1,266 $ 0
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REAL ESTATE 0.0%
---------------------------------------------------------------------------------------------------------------------------------
HRPT Properties Trust, REIT, "B", 8.75% (l) 200 $ 5,166
---------------------------------------------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS $ 2,191,129
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ISSUER STRIKE PRICE FIRST EXERCISE SHARES/PAR VALUE ($)
----------------------------------------------------------------------------------------------------------------------------------
WARRANTS - 0.5%
----------------------------------------------------------------------------------------------------------------------------------
BUSINESS SERVICES - 0.0%
----------------------------------------------------------------------------------------------------------------------------------
Anacomp, Inc., "B" (n) $ 61.54 12/10/2001 5,841 $ 117
----------------------------------------------------------------------------------------------------------------------------------
EMERGING MARKET SOVEREIGN - 0.5%
----------------------------------------------------------------------------------------------------------------------------------
Republic of Venezuela, Oil-Indexed Payment N/A N/A 9,315 $ 326,025
Obligation, expires 2020
----------------------------------------------------------------------------------------------------------------------------------
NETWORK & TELECOM - 0.0%
----------------------------------------------------------------------------------------------------------------------------------
Metricom, Inc. (n) $ 87.00 8/15/2000 775 $ 0
----------------------------------------------------------------------------------------------------------------------------------
SPECIALTY CHEMICALS - 0.0%
----------------------------------------------------------------------------------------------------------------------------------
Sterling Chemicals, Inc. (n) $ 52.00 12/31/2002 14 $ 1
----------------------------------------------------------------------------------------------------------------------------------
TOTAL WARRANTS $ 326,143
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SHORT-TERM OBLIGATIONS - 0.2%
----------------------------------------------------------------------------------------------------------------------------------
New Center Asset Trust, 5.29%, due 8/01/06 (y) $ 155,000 $ 155,000
----------------------------------------------------------------------------------------------------------------------------------
COLLATERAL FOR SECURITIES LOANED - 15.9%
----------------------------------------------------------------------------------------------------------------------------------
Navigator Securities Lending Prime Portfolio, at Net Asset Value $10,130,366 $ 10,130,366
----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS(K) $ 73,014,741
----------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS, LESS LIABILITIES - (14.5)% (9,246,439)
----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS - 100.0% $ 63,768,302
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(a) 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 $9,057,601, representing 14.2% of net assets.
(e) The rate shown represents a current effective yield.
(g) The rate shown represents a weighted average coupon rate on settled positions at period end.
(i) Interest only security for which the trust receives interest on notional principal (Par amount). Par amount shown is the
notional principal and does not reflect the cost of the security.
(k) As of July 31, 2006, the trust held securities fair valued in accordance with the policies adopted by the Board of Trustees,
aggregating $43,661,873 and 59.80% of market value. An independent pricing service provided an evaluated bid for 58.05% of
the market value.
(l) All or a portion of this security is on loan.
(n) Non-income producing security.
(p) Payment-in-kind security.
(r) Remaining maturities of floating rate loans may be less than stated maturities shown as a result of contractual or optional
prepayments by the borrower. Such prepayments cannot be predicted with certainty. These loans may be subject to restrictions
on resale. Floating rate loans generally have rates of interest which are determined periodically by reference to a base
lending rate plus a premium.
(y) The rate shown represents an annualized yield at time of purchase.
(z) Restricted securities are not registered under the Securities Act of 1933 and are subject to legal restrictions on resale.
These securities generally may be resold in transactions exempt from registration or to the public if the securities are
subsequently registered. Disposal of these securities may involve time-consuming negotiations and prompt sale at an
acceptable price may be difficult. The trust holds the following restricted securities:
ACQUISITION ACQUISITION CURRENT TOTAL % OF
RESTRICTED SECURITIES DATE COST MARKET VALUE NET ASSETS
------------------------------------------------------------------------------------------------------------------------------
Amsted Industries, Inc., 10.25%, 2011 7/19/2004 $ 213,663 $ 209,625
Anthracite CDO Ltd., 6%, 2037 5/14/2002 290,438 410,027
Asset Securitization Corp., FRN, 8.4991%, 2029 1/25/2005 604,160 666,859
Falcon Franchise Loan LLC, FRN, 3.9126%, 2025 1/29/2003 105,888 94,811
HRP Myrtle Beach Operations, FRN, 9.8181%, 2012 3/23/2006 155,000 153,837
Knowledge Learning Corp., 7.75%, 2015 1/28/2005 85,000 78,200
Mills Corp., 6.75% 3/30/2006 78,750 79,750
Preferred Term Securities XII Ltd., 9.8%, 2033 1/7/2005 236,250 202,219
Preferred Term Securities XVI Ltd., 14%, 2035 12/8/2004 300,000 270,915
Preferred Term Securities XVII Ltd., 9.3%, 2035 3/9/2005 187,000 169,469
Uno Restaurant Corp., 10%, 2011 1/31/2005 192,812 150,638
------------------------------------------------------------------------------------------------------------------------------
TOTAL RESTRICTED SECURITIES $2,486,350 3.9%
==============================
The following abbreviations are used in this report and are defined:
ADR American Depository Receipt
FRN Floating Rate Note. The interest rate is the rate in effect as of period
end.
REIT Real Estate Investment Trust
Abbreviations indicate amounts shown in currencies other than the U.S. dollar. All amounts are stated in U.S. dollars unless
otherwise indicated. A list of abbreviations is shown below:
EUR Euro
See attached schedules. For more information see notes to financial statements as disclosed in the most recent semiannual or
annual report.
MFS SPECIAL VALUE TRUST
SUPPLEMENTAL SCHEDULES (UNAUDITED) 07/31/2006
(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 $ 77,728,125
============
Gross unrealized appreciation $ 3,314,769
Gross unrealized depreciation (8,028,153)
------------
Net unrealized appreciation (depreciation) $ (4,713,384)
============
(2) UNFUNDED LOAN COMMITMENTS
As of July 31, 2006, the portfolio had unfunded loan commitments of $90,909,
which could be extended at the option of the borrower, pursuant to the
following loan agreements:
UNFUNDED UNREALIZED
LOAN APPRECIATION
BORROWER COMMITMENT (DEPRECIATION)
-------------------------------------------------------------------------------
Bluegrass Container Co. LLC, Second Lien Term Loan $ 90,909 $ 758
At July 31, 2006, the trust had sufficient cash and/or securities to cover any
commitments under these contracts.
(3) FINANCIAL INSTRUMENTS
DERIVATIVES
-----------
CREDIT DEFAULT SWAPS
UNREALIZED
NOTIONAL PRINCIPAL APPRECIATION
EXPIRATION AMOUNT OF CONTRACT DESCRIPTION (DEPRECIATION)
-------------------------------------------------------------------------------
3/20/11 $ 500,000 Agreement between the trust and $ (9,746)
Merrill Lynch International to
exchange the credit risk of
Sherwin-Williams Co. As a buyer
of protection, the trust agrees
to pay Merrill Lynch quarterly
at a fixed annual rate of 0.98%
of the notional amount of
$500,000 until maturity on March
20, 2011. If Sherwin-Williams
Co. experiences one of the
following credit events:
bankruptcy, failure to pay, or a
restructuring, the trust would
then purchase $500,000 par of
Sherwin-Williams bonds at the
post credit event market price,
and then deliver those bonds to
Merrill Lynch, who in turn would
deliver $500,000 in cash to the
trust.
At July 31, 2006, the trust had sufficient cash and/or securities to cover any
commitments under these contracts.
ITEM 2. CONTROLS AND PROCEDURES.
(a) Based upon their evaluation of the effectiveness of the registrant's
disclosure controls and procedures (as defined in Rule 30a-3(c) under the
Investment Company Act of 1940 (the "Act")) as conducted within 90 days of
the filing date of this Form N-Q, the registrant's principal financial
officer and principal executive officer have concluded that those
disclosure controls and procedures provide reasonable assurance that the
material information required to be disclosed by the registrant on this
report is recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission's rules and
forms.
(b) There were no changes in the registrant's internal controls over financial
reporting (as defined in Rule 30a-3(d) under the Act) that occurred during
the registrant's last fiscal quarter that have materially affected, or are
reasonably likely to materially affect, the registrant's internal control
over financial reporting.
ITEM 3. EXHIBITS.
File as exhibits as part of this Form a separate certification for each
principal executive officer and principal financial officer of the registrant
as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2): Attached hereto.
NOTICE
A copy of the Amended and Restated Declaration of Trust of the Registrant is on
file with the Secretary of State of the Commonwealth of Massachusetts and
notice is hereby given that this instrument is executed on behalf of the
Registrant by an officer of the Registrant as an officer and not individually
and the obligations of or arising out of this instrument are not binding upon
any of the Trustees or shareholders individually, but are binding only upon the
assets and property of the respective constituent series of the Registrant.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant: MFS SPECIAL VALUE TRUST
-------------------------------------------------------------------
By (Signature and Title)* MARIA F. DWYER
-----------------------------------------------------
Maria F. Dwyer, President
Date: September 25, 2006
------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* MARIA F. DWYER
-----------------------------------------------------
Maria F. Dwyer, President (Principal Executive
Officer)
Date: September 25, 2006
------------------
By (Signature and Title)* TRACY ATKINSON
-----------------------------------------------------
Tracy Atkinson, Treasurer (Principal Financial Officer
and Accounting Officer)
Date: September 25, 2006
------------------
* Print name and title of each signing officer under his or her signature.