MFS Investment Management Reports April 2025 Distribution Sources for Five Closed-End Funds
MFS Investment Management® (MFS®), a prominent global investment firm, has published detailed breakdowns of income distributions for April 2025 across five of its closed-end funds. These funds include the 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), and MFS® Multimarket Income Trust (NYSE: MMT). Each distribution provides insight into the composition of income sources—whether derived from net investment income, realized capital gains, or return of capital—enabling shareholders to better understand the nature of the cash flows they are receiving.
These distribution details are available online through the MFS website by navigating to the Closed-End Funds section under “Products & Strategies” and selecting “Dividend Source Information.”
MFS Charter Income Trust (NYSE: MCR)
For April 2025, the MFS Charter Income Trust distributed $0.04479 per share. According to estimates, 87% of this distribution originated from return of capital or other capital sources, while 13% came from net investment income. No portion of the payout stemmed from either short-term or long-term realized capital gains.
Cumulatively for the fiscal year beginning December 1, 2024, shareholders have received $0.22578 per share. Of this amount, a significant 67% was attributed to net investment income, while the remaining 33% came from return of capital. Notably, the fund has not realized capital gains in the fiscal year to date.
Key performance indicators show the fund generated an average annual total return of 4.75% (NAV-based) over the five-year period ending March 31, 2025. The annualized current distribution rate as a percentage of NAV stood at 8.06% as of the same date. However, on a fiscal year-to-date basis, the fund registered a slight NAV-based total return loss of -0.13%. The distributions made so far in this fiscal year equate to 3.39% of the fund’s NAV.
MFS Government Markets Income Trust (NYSE: MGF)
The MFS Government Markets Income Trust paid a distribution of $0.01946 per share in April 2025. This payout consisted of 47% net investment income and 53% return of capital. Similar to the Charter Income Trust, this fund reported no capital gains contributions to the distribution.
From December 1, 2024, through April 2025, cumulative distributions totaled $0.09697 per share. These were evenly split between net investment income (47%) and return of capital (53%).
Despite a five-year average annual return of -0.44% (NAV-based), the fund recorded a positive year-to-date return of 1.25%. The distribution rate based on March 31, 2025, month-end NAV was 7.25%, and the cumulative distributions represent 3.01% of NAV.
MFS Intermediate High-Income Fund (NYSE: CIF)
April 2025 distributions for the MFS Intermediate High-Income Fund amounted to $0.01449 per share. A majority of this amount, 57%, was sourced from net investment income, while 43% represented return of capital. No portion of this distribution came from capital gains.
To date in the fiscal year, the fund has distributed $0.07331 per share, of which 65% was net investment income and 35% return of capital. Over the five-year period ending March 31, 2025, the fund achieved an average annual NAV-based return of 6.40%. The annualized distribution rate as of month-end March was 9.61%.
While year-to-date performance for the current fiscal period remains slightly positive at 0.09%, the cumulative distributions for the fiscal year represent 4.05% of the NAV.
MFS Intermediate Income Trust (NYSE: MIN)
The April 2025 distribution from the MFS Intermediate Income Trust was $0.01967 per share, with 39% derived from net investment income and 61% from return of capital. As with the other funds, the current distribution did not include capital gains.
The cumulative distribution since the fiscal year began on November 1, 2024, amounts to $0.11854 per share. Approximately 38% of this total was funded through net investment income, and 62% from return of capital.
The fund’s five-year average total return was 2.10%, while its annualized current distribution rate reached 8.49%. As of March 31, 2025, the cumulative fiscal-year return stood at 2.60%, and the distributions paid accounted for 4.26% of the fund’s NAV.
MFS Multimarket Income Trust (NYSE: MMT)
Of the five funds, the MFS Multimarket Income Trust reported one of the largest April distributions—$0.03347 per share. Notably, 100% of this payment was classified as return of capital. However, looking at the fiscal year cumulative data, 71% of the $0.20246 paid per share thus far was net investment income, while 29% was return of capital.
This fund delivered a strong five-year average annual return of 6.63%, and its current distribution rate based on NAV at the end of March was 8.05%. The cumulative return for the fiscal year through March 31, 2025, was 1.80%, with distributions representing 4.06% of NAV.
Managed Distribution Plans and Investor Considerations
Each of the funds mentioned above operates under a managed distribution plan, a structure that aims to provide consistent monthly income for investors. These plans allow the funds to maintain stable payout levels, even when current income from portfolio holdings fluctuates. When net investment income is insufficient to meet the targeted distribution amount, the funds may use return of capital or realized gains to fill the gap.
It’s important to emphasize that distributions consisting partly or wholly of return of capital do not necessarily indicate negative performance. Instead, they may result from tax strategies, unrealized losses, or portfolio adjustments. However, continued use of return of capital can reduce a fund’s total assets and may increase its expense ratio over time. If distributions exceed earnings persistently, the fund may need to sell assets, possibly at suboptimal times.
Furthermore, MFS notes that the disclosed estimates of income sources are not intended for tax reporting. The final breakdown for federal income tax purposes will be provided in shareholders’ IRS Form 1099-DIV for the 2025 tax year. Shareholders should refrain from making tax-related decisions based on the current income source data.
The managed distribution plans are subject to review and can be altered or terminated at any time by each fund’s Board of Trustees. If changed, such actions could impact the market price of fund shares. Accompanying each non-income-only distribution, MFS releases a shareholder notice and press statement to ensure transparency regarding income components.
About MFS Investment Management
MFS Investment Management has been a trailblazer in the asset management space since 1924 when it launched the first U.S. open-end mutual fund. Today, MFS is a full-service global investment manager offering solutions to financial advisors, institutional clients, and intermediaries. With an unwavering focus on long-term value creation, MFS blends collective expertise, active risk assessment, and disciplined capital allocation to uncover attractive investment opportunities.
As of March 31, 2025, the firm managed over $603.8 billion in assets across diverse portfolios. The organization continues to lead with a values-based approach, leveraging a global team of professionals to help clients pursue sustainable investment success. For more information, visit www.mfs.com.
