MSC Income Fund Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS

12 Months Ended

Dec. 31, 2023

The following is a schedule of financial highlights of MSC Income Fund for the years ended December 31, 2023, 2022, 2021, 2020 and 2019:


	Year Ended December 31,
Per Share Data:	2023		2022		2021		2020		2019
NAV at the beginning of the period	$	7.61	$	7.68	$	7.28	$	7.77	$	7.96
Net investment income (1)(6)	0.72		0.66		0.67		0.59		0.71
Net realized loss (1)(2)	(0.42)		(0.05)		(0.04)		(0.66)		(0.23)
Net unrealized appreciation (depreciation) (1)(2)	0.58		(0.02)		0.31		(0.03)		0.04
Income tax provision (1)(2)	(0.05)		(0.02)		(0.02)		(0.02)		(0.01)
Net increase (decrease) in net assets resulting from operations (1)	0.83		0.57		0.92		(0.12)		0.51
Dividends paid from net investment income	(0.70)		(0.65)		(0.53)		(0.35)		(0.68)
Dividends paid from capital gains	—		—		—		—		(0.02)
Dividends paid or accrued (3)	(0.70)		(0.65)		(0.53)		(0.35)		(0.70)

Accretive effect of stock repurchases (repurchasing shares below NAV) (4)	0.03		—		—		—		—
Other (5)(6)	—		0.01		0.01		(0.02)		—
NAV at the end of the period	$	7.77	$	7.61	$	7.68	$	7.28	$	7.77
Shares outstanding at the end of the period	80,108,865		80,105,999		79,826,605		79,608,304		78,463,377

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(1)Based on weighted-average number of common shares outstanding for the period.

(2)Net realized gains or losses, net unrealized appreciation or depreciation and income tax provision or benefit can fluctuate significantly from period to period.

(3)Represents stockholder dividends paid or accrued for the period.

(4)Shares repurchased in connection with the modified Dutch auction tender offers. See Note H — Share Repurchases for additional information.

(5)Includes the impact of the different share amounts as a result of calculating certain per share data based on the weighted-average basic shares outstanding during the period and certain per share data based on the shares outstanding as of a period end or transaction date.

(6)Reclassifications have been made to certain prior year per share data. The 2020 “Other” and 2019 “Net investment income” per share amounts have been adjusted to reflect the income tax provision effect separately rather than as a component of these values.


	Year Ended December 31,
	2023			2022			2021			2020			2019
	(dollars in thousands)
NAV at end of period	$	622,307		$	609,665		$	613,170		$	579,624		$	609,305
Average NAV	$	613,525		$	611,214		$	593,440		$	557,382		$	622,708
Average outstanding debt	$	487,271		$	494,957		$	321,973		$	386,084		$	474,000

Ratio of total expenses, including income tax expense, to average NAV(1)(2)(4)	12.63		%	8.60		%	6.51		%	7.38		%	9.11		%
Ratio of operating expenses to average NAV(2)(4)	12.02		%	8.33		%	6.20		%	7.16		%	9.11		%
Ratio of operating expenses, excluding interest expense, to average NAV(2)(4)	6.07		%	4.33		%	3.76		%	4.07		%	4.86		%
Ratio of operating expenses, excluding interest expense and incentive fees, to average NAV(2)(4)	4.02		%	3.98		%	3.66		%	4.07		%	4.22		%
Ratio of net investment income to average NAV(4)	9.40		%	8.65		%	8.99		%	8.40		%	8.84		%
Portfolio turnover ratio	21.82		%	18.92		%	35.39		%	8.93		%	33.30		%
Total return based on change in NAV(3)(4)	10.86		%	7.43		%	12.71		%	(1.80)		%	6.41		%

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(1)Total expenses are the sum of operating expenses and net income tax provision or benefit. Net income tax provision or benefit includes the accrual of net deferred tax provision or benefit relating to the net unrealized appreciation or depreciation on portfolio investments held in the Taxable Subsidiaries and due to the change in the loss carryforwards, which are non-cash in nature and may vary significantly from period to period. MSC Income Fund is required to include net deferred tax provision or benefit in calculating its total expenses even though these net deferred taxes are not currently payable or receivable.

(2)Unless otherwise noted, operating expenses include interest, management fees, incentive fees and general and administrative expenses.

(3)Total return is calculated based on the change in NAV per share and stockholder distributions declared per share during the reporting period, divided by the NAV per share at the beginning of the period. The total return does not reflect the sales load from the sale of MSC Income Fund’s common stock.

(4)Net of expense waivers of $8.3 million, $4.5 million, $4.3 million, $3.6 million and $3.1 million in 2023, 2022, 2021, 2020 and 2019, respectively. Excluding these expense waivers, the expense and income ratios are as follows:


	Year Ended December 31,
	2023		2022		2021		2020		2019
Ratio of total expenses, including income tax expense, to average NAV(1)(2)	13.98	%	9.33	%	7.24	%	8.11	%	9.84	%
Ratio of operating expenses to average NAV(2)	13.37	%	9.06	%	6.92	%	7.89	%	9.84	%
Ratio of operating expenses, excluding interest expense, to average NAV(2)	7.43	%	5.07	%	4.49	%	4.80	%	5.58	%
Ratio of operating expenses, excluding interest expense and incentive fees, to average NAV(2)	5.38	%	4.72	%	4.39	%	4.80	%	4.95	%
Ratio of net investment income to average NAV	8.05	%	7.90	%	8.26	%	7.67	%	8.11	%
Total return based on change in NAV(3)	9.50	%	6.69	%	11.98	%	(2.20)	%	5.85	%

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See footnotes (1), (2), (3) and (4) immediately prior to this table.