MSC Income Fund Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS

9 Months Ended

Sep. 30, 2023

The following is a schedule of financial highlights of MSC Income Fund for the nine months ended September 30, 2023 and 2022:


	Nine Months Ended September 30,
Per Share Data:	2023		2022
NAV at the beginning of the period	$	7.61	$	7.68
Net investment income (1)	0.53		0.48
Net realized gain (loss) (1)(2)	(0.31)		0.10
Net unrealized appreciation (depreciation) (1)(2)	0.38		(0.14)
Income tax provision (1)(2)	(0.04)		(0.02)
Net increase in net assets resulting from operations (1)	0.56		0.42
Dividends paid from net investment income	(0.53)		(0.40)
Dividends paid from capital gains	—		(0.08)
Dividends paid or accrued (3)	(0.53)		(0.48)


Accretive effect of stock repurchases (repurchasing shares below NAV) (4)	0.02		—
Other (5)	0.01		—
NAV at the end of the period	$	7.67	$	7.62
Shares outstanding at the end of the period	80,013,948		80,059,079

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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 taxes can fluctuate significantly from period to period.

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

(4)Shares repurchased in connection with the Dutch Auction Tender Offers. See Note G — 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.


	Nine Months Ended September 30,
	2023			2022
	(dollars in thousands)
NAV at end of period	$	613,569		$	609,748
Average NAV	$	611,329		$	611,601
Average outstanding debt	$	482,021		$	497,038

Ratios to average NAV:
Ratio of total expenses, including income tax expense, to average NAV(1)(2)(3)(5)	9.35		%	6.03		%
Ratio of operating expenses to average NAV(2)(3)(5)	8.83		%	5.73		%
Ratio of operating expenses, excluding interest expense, to average NAV(2)(3)(5)	4.48		%	3.01		%
Ratio of operating expenses, excluding interest expense and incentive fees, to average NAV(2)(3)(5)	3.03		%	3.01		%
Ratio of net investment income to average NAV(2)(5)	6.97		%	6.34		%
Portfolio turnover ratio(2)	12.32		%	14.13		%
Total return based on change in NAV(2)(4)(5)	7.36		%	5.43		%

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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 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)Not annualized.

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

(4)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.

(5)Net of expense waivers of $6.3 million and $3.4 million for the nine months ended September 30, 2023 and September 30, 2022, respectively. Excluding these expense waivers, the expense and income ratios are as follows:


	Nine Months Ended September 30,
	2023		2022

Ratio of total expenses, including income tax expense, to average NAV(1)(2)(3)	10.39	%	6.58	%
Ratio of operating expenses to average NAV(2)(3)	9.87	%	6.28	%
Ratio of operating expenses, excluding interest expense, to average NAV(2)(3)	5.52	%	3.56	%
Ratio of operating expenses, excluding interest expense and incentive fees, to average NAV(2)(3)	4.06	%	3.56	%
Ratio of net investment income to average NAV(2)	5.95	%	5.77	%
Total return based on change in NAV(2)(4)	6.33	%	4.87	%

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