MFS Announces Closed-End Fund Distributions
MFS Investment Management announced monthly distributions for various closed-end funds, effective December 31, 2020. Notably, MFS Charter Income Trust (NYSE: MCR) will distribute a total amount of $0.059020 per share, sourced from other income. Other funds such as MFS Government Markets Income Trust and MFS High Income Municipal Trust reported similar distributions. The funds have adopted a managed distribution plan to maintain investor returns, which may involve capital gains or returns of capital, potentially impacting total assets and expense ratios.
- MFS Charter Income Trust (NYSE: MCR) declares a total distribution of $0.059020 per share.
- The funds adopted a managed distribution plan, ensuring consistent returns to investors.
- MFS Charter Income Trust has a distribution of $0.0000 from income, relying solely on returns from other sources.
- Returns of capital may decrease total assets and increase expense ratios.
BOSTON--(BUSINESS WIRE)--MFS Investment Management® (MFS®) announced today monthly distributions of the following closed-end funds, all with declaration dates of December 1, 2020, ex-dividend dates of December 15, 2020, record dates of December 16, 2020, and payable dates of December 31, 2020:
Fund (ticker) |
Income/
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Other
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Total
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MFS® Charter Income Trust
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MFS® Government Markets Income Trust
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MFS® High Income Municipal Trust
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MFS® High Yield Municipal Trust
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MFS® Intermediate High Income Fund
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MFS® Intermediate Income Trust
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MFS® Investment Grade Municipal Trust
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MFS® Multimarket Income Trust
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MFS® Municipal Income Trust
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MFS® Special Value Trust
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^The fund has adopted a managed distribution plan. 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 the 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 of the fund may amend the terms of the plan or terminate the 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 the fund’s common shares. The plan will be subject to periodic review by the Board. With each distribution that does not consist solely of net investment income, the 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 the fund’s investment experience during its full fiscal year and may be subject to changes based on tax regulations. The 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. The 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 the 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 the fund's total assets and, therefore, could have the effect of increasing the fund's expense ratio. In addition, in order to make the level of distributions called for under its plan, the fund may have to sell portfolio securities at a less than opportune time. For estimated source information for distributions paid in prior periods, please see MFS.com and click on the following links: Products & Strategies, Closed-End Funds, Dividend Source Information.
*Distribution from "Other Sources" may contain sources of income other than ordinary income, such as short term capital gains, long term capital gains, or return of capital, which can not be determined until the close of the fund's fiscal year end. Distributions that are treated for federal income tax purposes as a return of capital will reduce a shareholder's tax basis in his or her shares and, to the extent the distribution exceeds a shareholder's adjusted tax basis, will be treated as a gain to the shareholder from a sale of shares. Please see the fund's most recent dividend source information available from payable date at MFS.com for the breakdown of the distribution.
Investors who want to make changes to their accounts should contact their financial advisor, brokerage firm, or other nominee with whom the shares are registered. If shares are registered with the funds’ transfer agent, Computershare, the transfer agent may be contacted directly at 800-637-2304, or www.computershare.com.
About MFS Investment Management
In 1924, MFS launched the first US open-end mutual fund, opening the door to the markets for millions of everyday investors. Today, as a full-service global investment manager serving financial advisors, intermediaries and institutional clients, MFS still serves a single purpose: to create long-term value for clients by allocating capital responsibly. That takes our powerful investment approach combining collective expertise, thoughtful risk management and long-term discipline. Supported by our culture of shared values and collaboration, our teams of diverse thinkers actively debate ideas and assess material risks to uncover what we believe are the best investment opportunities in the market. As of October 31, 2020, MFS manages US
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.
MFS Investment Management
111 Huntington Ave, Boston, MA 02199
15812.146
