Trustees Approve Managed Distribution Plans for Certain MFS Closed-End Funds
The Board of Trustees (the “Board”) of the following MFS closed-end funds (the “funds”) has approved the adoption of managed distribution plans whereby the funds will, beginning in May 2015, make monthly distributions to common shareholders at an annual minimum fixed rate based on average monthly net asset value (NAV) of each fund’s common shares. The funds and rates, respectively, are as follows:
|MFS(R) Charter Income Trust||NYSE: MCR||8.00%|
|MFS(R) InterMarket Income Trust I||NYSE: CMK||7.00%|
|MFS(R) Intermediate High Income Fund||NYSE: CIH||9.50%|
|MFS(R) Multimarket Income Trust||NYSE: MMT||8.00%|
The primary purpose of each plan is to provide shareholders with a constant, but not guaranteed, fixed minimum rate of distribution each month. The funds’ advisor, MFS Investment Management(R) (MFS(R)), recommended each plan to the Board. Each plan is intended to narrow the discount between the market price and the NAV of each fund’s common shares, but there is no assurance that the plan will be successful in doing so.
Under a managed distribution plan, to the extent that sufficient investment income is not available on a monthly basis, the fund will distribute long-term capital gains and/or return of capital in order to maintain its managed distribution level. You should not draw any conclusions about a fund’s investment performance from the amount of the fund’s distributions or from the terms of the fund’s managed distribution plan. The Board may amend the terms of a plan or terminate a plan at any time without prior notice to the fund’s shareholders. The amendment or termination of a plan could have an adverse effect on the market price of a fund’s common shares. Each plan will be subject to periodic review by the Board.
With each distribution that does not consist solely of net investment income, each fund will issue a notice to shareholders and an accompanying press release which will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions reported in the notice to shareholders are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon each fund’s investment experience during its full fiscal year and may be subject to changes based on tax regulations. Each fund will send shareholders a Form 1099-DIV for the calendar year that will tell them how to report these distributions for federal income tax purposes. A fund may at times distribute more than its net investment income and net realized capital gains; therefore, a portion of the distribution may result in a return of capital. A return of capital may occur, for example, when some or all of the money that shareholders invested in a fund is paid back to them. A return of capital does not necessarily reflect a fund’s investment performance and should not be confused with ‘yield’ or ‘income’. Any such returns of capital will decrease each fund’s total assets and, therefore, could have the effect of increasing each fund’s expense ratio. In addition, in order to make the level of distributions called for under its plan, a fund may have to sell portfolio securities at a less than opportune time.
About MFS Investment Management
Established in 1924, MFS is an active, global asset manager with investment offices in Boston, Hong Kong, London, Mexico City, S~ao Paulo, Singapore, Sydney, Tokyo and Toronto. We employ a uniquely collaborative approach to build better insights for our clients. Our investment approach has three core elements: integrated research, global collaboration and active risk management. As of January 30, 2015, MFS manages US$426.5 billion in assets on behalf of individual and institutional investors worldwide. Please visit mfs.com for more information.
Statements made in this release that look forward in time involve risks and uncertainties and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in a Fund’s performance, a general downturn in the economy, competition from other closed-end investment companies, changes in government policy or regulation, inability of a Fund’s investment adviser to attract or retain key employees, inability of a Fund to implement its investment strategy, inability of a Fund to manage rapid expansion and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.
The funds are closed-end investment products. Common shares of the funds are only available for purchase/sale on the NYSE at the current market price. Shares may trade at a discount to NAV, including during periods in which a fund’s managed distribution is in effect.
MFS Investment Management
111 Huntington Ave, Boston, MA 02199
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