MFS Announces Closed-End Fund Distributions
MWN-AI** Summary
MFS Investment Management recently announced the monthly distributions for several of its closed-end funds, with key dates set for June 2, 2025, for declarations, and June 17, 2025, for ex-dividend and record dates. The distributions, payable on June 30, 2025, vary by fund and include amounts sourced from income and other avenues.
Highlighted distributions include MFS® Charter Income Trust (NYSE: MCR) with a total per share distribution of $0.044230, primarily from other sources. MFS® High Income Municipal Trust (NYSE: CXE) and MFS® High Yield Municipal Trust (NYSE: CMU) will provide distributions of $0.0180 and $0.01650 per share, respectively, exclusively from income. Other funds, such as MFS® Multimarket Income Trust (NYSE: MMT) and MFS® Intermediate Income Trust (NYSE: MIN), also feature similar structures where distributions rely on other sources.
The funds operate under a managed distribution plan to ensure consistent payouts, even if investment income is insufficient. This plan may involve distributing long-term capital gains or return of capital, which could affect the fund's market price and total assets. It’s essential for shareholders to note that distributions labeled as return of capital do not directly reflect investment performance but signify repayments of invested capital, which can decrease the overall value of the funds.
Shareholders can receive more detailed distribution information upon each announcement, including tax implications, via MFS’s website. MFS Investment Management, established in 1924, manages around $600.9 billion and is committed to responsible capital allocation and long-term value creation for its clients. For further inquiries, shareholders can contact their advisors or the funds' transfer agent, Computershare.
MWN-AI** Analysis
MFS Investment Management recently announced its monthly distribution figures for several closed-end funds. Notably, many of these funds are implementing managed distribution plans, which allow them to distribute cash even when sufficient investment income isn't available. Investors should closely analyze these distributions, as they reflect not just investment performance, but potentially a return of capital, which can erode total assets over time.
For instance, funds like MFS Charter Income Trust (MCR) and MFS Government Markets Income Trust (MGF) primarily rely on "other sources" for their distributions, including capital gains and return of capital. Such distributions can signal that a fund is drawing from its own principal, which might indicate underlying performance issues.
The efficacy of these managed distributions hinges on the fund's overall performance and market conditions. Investors should be cautious about assuming that these distributions equate to stable income, as they may not be entirely sustainable. This is particularly important as a portion of these payouts can reduce shareholders' tax basis and may result in taxable gains.
It is worth analyzing the overall market conditions that impact bond and income-producing securities, as these can affect the performance of MFS funds. Interest rates, inflation, and credit spreads are critical considerations for these investments. As MFS manages a significant portfolio of assets, their decisions may also reflect market conditions and economic predictions.
For current and potential investors, it’s essential to monitor how these distributions align with overall investment goals. Consulting with a financial advisor is recommended to assess whether these funds fit within an investment strategy, considering both their distribution policies and potential risks.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
MFS Investment Management ® (MFS ® ) announced today monthly distributions of the following closed-end funds, all with declaration dates of June 2, 2025, ex-dividend dates of June 17, 2025, record dates of June 17, 2025, and payable dates of June 30, 2025:
Fund (ticker) | Income/ | Other Sources/ | Total Amount/ |
MFS® Charter Income Trust | $0.0000 | $0.044230 | $0.044230 |
MFS® Government Markets Income Trust | $0.0000 | $0.019130 | $0.019130 |
MFS® High Income Municipal Trust | $0.0180 | $0.0000 | $0.0180 |
MFS® High Yield Municipal Trust | $0.01650 | $0.0000 | $0.01650 |
MFS® Intermediate High Income Fund | $0.0000 | $0.014320 | $0.014320 |
MFS® Intermediate Income Trust | $0.0000 | $0.019470 | $0.019470 |
MFS® Investment Grade Municipal Trust | $0.0320 | $0.0000 | $0.0320 |
MFS® Multimarket Income Trust | $0.0000 | $0.033020 | $0.033020 |
MFS® Municipal Income Trust | $0.0240 | $0.0000 | $0.0240 |
^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 April 30, 2025, MFS manages US $600.9 billion in assets on behalf of individual and institutional investors worldwide. Please visit mfs.com for more information.
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
15812.175
View source version on businesswire.com: https://www.businesswire.com/news/home/20250602360182/en/
MFS Shareholders or Advisors (investment product information):
Jeffrey Schwarz, 800-343-2829, ext. 55872
Media Only:
Dan Flaherty, 617-954-4256
FAQ**
How does MFS Multimarket Income Trust (MMT) plan to sustain its distribution levels given the reliance on sources like return of capital and long-term capital gains?
What specific factors may cause the market price of MFS Multimarket Income Trust (MMT) shares to trade at a discount to NAV in the coming months?
Can management provide insights on the investment strategies being employed by MFS Multimarket Income Trust (MMT) to maximize returns while balancing risk?
How frequently will shareholders receive updates on the composition of distributions from MFS Multimarket Income Trust (MMT), especially when they include returns of capital?
**MWN-AI FAQ is based on asking OpenAI questions about MFS High Income Municipal Trust (NYSE: CXE).
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