MFS Releases Closed-End Fund Income Distribution Sources for Certain Funds

Rhea-AI Summary

MFS Investment Management has announced the distribution income sources for its closed-end funds for October 2020, including MFS Charter Income Trust (MCR). The distribution amount per share for MCR is $0.05856, with 54% from net investment income and 46% from return of capital. MCR's annualized current distribution rate is 8.07%. The funds have adopted a managed distribution plan, which may involve distributions of capital gains and returns of capital if sufficient investment income is unavailable. This could influence the fund's market price.

Positive

• MCR's distribution for October 2020 is $0.05856 per share.
• Annualized current distribution rate for MCR is 8.07%.
• MCR has a five-year average annual total return of 7.92%.

Negative

• 46% of MCR's current distribution comes from return of capital, which may indicate insufficient net investment income.
• Managed distribution plan could adversely affect the market price of MCR shares.

BOSTON--(BUSINESS WIRE)--MFS Investment Management^® (MFS^®) released today the distribution income sources for six of its closed-end funds for October 2020: MFS^® Charter Income Trust (NYSE: MCR), MFS^® Government Markets Income Trust (NYSE: MGF), MFS^® Intermediate High Income Fund (NYSE: CIF), MFS^® Intermediate Income Trust (NYSE: MIN), MFS^® Multimarket Income Trust (NYSE: MMT) and MFS^® Special Value Trust (NYSE: MFV). This information also can be obtained by visiting MFS.com by clicking on Products & Strategies > Closed End Funds > Dividend Source Information.

MFS Charter Income Trust
Distribution period: October 2020
Distribution amount per share: $ 0.05856

The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund’s fiscal year begins each December 1st. All amounts are expressed per common share.
						Total cumulative distributions for the fiscal year to date		% Breakdown of the total cumulative distributions for the fiscal year to date
		Current distribution		% Breakdown of current distribution
Net Investment Income		$ 0.03152		54%		$ 0.34070		53%
Net Realized ST Cap Gains		0.00000		0%		0.00000		0%
Net Realized LT Cap Gains		0.00000		0%		0.00000		0%
Return of Capital or Other Capital Source		0.02704		46%		0.29810		47%
Total (per common share)		$ 0.05856		100%		$ 0.63880		100%
Average annual total return (in relation to NAV) for the five years ended 9-30-2020								7.92%
Annualized current distribution rate expressed as a percentage of month end NAV as of 9-30-2020								8.07%
Cumulative total return (in relation to NAV) for the fiscal year through 9-30-2020								5.50%
Cumulative fiscal year distributions as a percentage of NAV as of 9-30-2020								7.33%

MFS Government Markets Income Trust
Distribution period: October 2020
Distribution amount per share: $ 0.02908

The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund’s fiscal year begins each December 1st. All amounts are expressed per common share.
						Total cumulative distributions for the fiscal year to date		% Breakdown of the total cumulative distributions for the fiscal year to date
		Current distribution		% Breakdown of current distribution
Net Investment Income		$ 0.00920		32%		$ 0.09856		31%
Net Realized ST Cap Gains		0.00000		0%		0.00000		0%
Net Realized LT Cap Gains		0.00000		0%		0.00000		0%
Return of Capital or Other Capital Source		0.01988		68%		0.22051		69%
Total (per common share)		$ 0.02908		100%		$ 0.31907		100%
Average annual total return (in relation to NAV) for the five years ended 9-30-2020								4.04%
Annualized current distribution rate expressed as a percentage of month end NAV as of 9-30-2020								7.29%
Cumulative total return (in relation to NAV) for the fiscal year through 9-30-2020								8.82%
Cumulative fiscal year distributions as a percentage of NAV as of 9-30-2020								6.66%

MFS Intermediate High Income Fund
Distribution period: October 2020
Distribution amount per share: $ 0.01909

The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund’s fiscal year begins each December 1st. All amounts are expressed per common share.
						Total cumulative distributions for the fiscal year to date		% Breakdown of the total cumulative distributions for the fiscal year to date
		Current distribution		% Breakdown of current distribution
Net Investment Income		$ 0.01180		62%		$ 0.12749		61%
Net Realized ST Cap Gains		0.00000		0%		0.00000		0%
Net Realized LT Cap Gains		0.00000		0%		0.00000		0%
Return of Capital or Other Capital Source		0.00729		38%		0.08299		39%
Total (per common share)		$ 0.01909		100%		$ 0.21048		100%
Average annual total return (in relation to NAV) for the five years ended 9-30-2020								7.54%
Annualized current distribution rate expressed as a percentage of month end NAV as of 9-30-2020								9.58%
Cumulative total return (in relation to NAV) for the fiscal year through 9-30-2020								1.61%
Cumulative fiscal year distributions as a percentage of NAV as of 9-30-2020								8.81%

MFS Intermediate Income Trust
Distribution period: October 2020
Distribution amount per share: $ 0.02834

The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund’s fiscal year begins each November 1st. All amounts are expressed per common share.
						Total cumulative distributions for the fiscal year to date		% Breakdown of the total cumulative distributions for the fiscal year to date
		Current distribution		% Breakdown of current distribution
Net Investment Income		$ 0.00733		26%		$ 0.09208		27%
Net Realized ST Cap Gains		0.00043		2%		0.01124		3%
Net Realized LT Cap Gains		0.00831		29%		0.03590		11%
Return of Capital or Other Capital Source		0.01227		43%		0.20095		59%
Total (per common share)		$ 0.02834		100%		$ 0.34017		100%
Average annual total return (in relation to NAV) for the five years ended 9-30-2020								4.31%
Annualized current distribution rate expressed as a percentage of month end NAV as of 9-30-2020								8.54%
Cumulative total return (in relation to NAV) for the fiscal year through 9-30-2020								7.61%
Cumulative fiscal year distributions as a percentage of NAV as of 9-30-2020								8.55%

MFS Multimarket Income Trust
Distribution period: October 2020
Distribution amount per share: $ 0.04174

The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund’s fiscal year begins each November 1st. All amounts are expressed per common share.
						Total cumulative distributions for the fiscal year to date		% Breakdown of the total cumulative distributions for the fiscal year to date
		Current distribution		% Breakdown of current distribution
Net Investment Income		$ 0.02449		59%		$ 0.28889		58%
Net Realized ST Cap Gains		0.00000		0%		0.00000		0%
Net Realized LT Cap Gains		0.00000		0%		0.00000		0%
Return of Capital or Other Capital Source		0.01725		41%		0.20503		42%
Total (per common share)		$ 0.04174		100%		$ 0.49392		100%
Average annual total return (in relation to NAV) for the five years ended 9-30-2020								7.69%
Annualized current distribution rate expressed as a percentage of month end NAV as of 9-30-2020								8.08%
Cumulative total return (in relation to NAV) for the fiscal year through 9-30-2020								5.57%
Cumulative fiscal year distributions as a percentage of NAV as of 9-30-2020								7.97%

MFS Special Value Trust
Distribution period: October 2020
Distribution amount per share: $ 0.04364

The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the following sources: net investment income, net realized short-term capital gains, net realized long-term capital gains and return of capital or other capital source. The fund’s fiscal year begins each November 1st. All amounts are expressed per common share.
						Total cumulative distributions for the fiscal year to date	% Breakdown of the total cumulative distributions for the fiscal year to date
		Current distribution		% Breakdown of current distribution
Net Investment Income		$ 0.01264		29%		$ 0.14837	28%
Net Realized ST Cap Gains		0.00000		0%		0.00000	0%
Net Realized LT Cap Gains		0.03100		71%		0.34850	65%
Return of Capital or Other Capital Source		0.00000		0%		0.03581	7%
Total (per common share)		$ 0.04364		100%		$ 0.53268	100%
Average annual total return (in relation to NAV) for the five years ended 9-30-2020							7.98%
Annualized current distribution rate expressed as a percentage of month end NAV as 9-30-2020							10.07%
Cumulative total return (in relation to NAV) for the fiscal year through 9-30-2020							1.70%
Cumulative fiscal year distributions as a percentage of NAV as of 9-30-2020							10.24%

The above funds have 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. Investors 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 estimated composition of the distribution and other related information.

The amounts and sources of distributions reported above 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.

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 September 30, 2020, MFS manages US$548.2 billion in assets on behalf of individual and institutional investors worldwide. Please visit mfs.com for more information.

The Funds are closed-end Funds. Common shares of the Funds are only available for purchase/sale on the NYSE at the current market price (NYSE American for MFS California Municipal Fund). Shares may trade at a discount to NAV.

MFS Investment Management
111 Huntington Ave., Boston, MA 02199

15668.146