MFS Announces Income Distribution Sources for Select Closed-End Funds
MFS Investment Management® (MFS®) has released the distribution income sources for five of its closed-end funds for February 2025. The funds include 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). Investors and interested parties can access this information on the MFS website by navigating to Products & Strategies > Closed-End Funds > Dividend Source Information.
MFS Charter Income Trust (NYSE: MCR)
Distribution Period: February 2025
Distribution Amount per Share: $0.04490
The fund’s fiscal year begins on December 1st, and all amounts provided are per common share.
| Source | Current Distribution | % of Current Distribution | Cumulative Distributions | % of Cumulative Distributions |
|---|---|---|---|---|
| Net Investment Income | $0.04490 | 100% | $0.13581 | 100% |
| Net Realized Short-Term Capital Gains | $0.00000 | 0% | $0.00000 | 0% |
| Net Realized Long-Term Capital Gains | $0.00000 | 0% | $0.00000 | 0% |
| Return of Capital or Other Capital Source | $0.00000 | 0% | $0.00000 | 0% |
| Total (per common share) | $0.04490 | 100% | $0.13581 | 100% |
Performance Metrics:
- Average annual total return (NAV) for five years ended 1-31-2025: 2.78%
- Annualized current distribution rate (NAV as of 1-31-2025): 7.96%
- Cumulative total return (NAV) for fiscal year through 1-31-2025: -0.05%
- Cumulative fiscal year distributions (NAV as of 1-31-2025): 2.01%
MFS Government Markets Income Trust (NYSE: MGF)
Distribution Period: February 2025
Distribution Amount per Share: $0.01918
| Source | Current Distribution | % of Current Distribution | Cumulative Distributions | % of Cumulative Distributions |
|---|---|---|---|---|
| Net Investment Income | $0.00901 | 47% | $0.02560 | 44% |
| Net Realized Short-Term Capital Gains | $0.00000 | 0% | $0.00000 | 0% |
| Net Realized Long-Term Capital Gains | $0.00000 | 0% | $0.00000 | 0% |
| Return of Capital or Other Capital Source | $0.01017 | 53% | $0.03258 | 56% |
| Total (per common share) | $0.01918 | 100% | $0.05818 | 100% |
Performance Metrics:
- Average annual total return (NAV) for five years ended 1-31-2025: -0.45%
- Annualized current distribution rate (NAV as of 1-31-2025): 7.22%
- Cumulative total return (NAV) for fiscal year through 1-31-2025: -0.91%
- Cumulative fiscal year distributions (NAV as of 1-31-2025): 1.82%
MFS Intermediate High-Income Fund (NYSE: CIF)
Distribution Period: February 2025
Distribution Amount per Share: $0.01462
| Source | Current Distribution | % of Current Distribution | Cumulative Distributions | % of Cumulative Distributions |
|---|---|---|---|---|
| Net Investment Income | $0.01301 | 89% | $0.02913 | 66% |
| Net Realized Short-Term Capital Gains | $0.00000 | 0% | $0.00000 | 0% |
| Net Realized Long-Term Capital Gains | $0.00000 | 0% | $0.00000 | 0% |
| Return of Capital or Other Capital Source | $0.00161 | 11% | $0.01501 | 34% |
| Total (per common share) | $0.01462 | 100% | $0.04414 | 100% |
Performance Metrics:
- Average annual total return (NAV) for five years ended 1-31-2025: 3.34%
- Annualized current distribution rate (NAV as of 1-31-2025): 9.43%
- Cumulative total return (NAV) for fiscal year through 1-31-2025: 1.15%
- Cumulative fiscal year distributions (NAV as of 1-31-2025): 2.37%
Additional Information on Managed Distribution Plans
The above funds have adopted managed distribution plans, ensuring a stable income stream for investors. Under these plans, if there is insufficient investment income in any given month, funds may distribute long-term capital gains or return capital to maintain the target distribution level.
It is important to note that investors should not assume the fund’s performance based solely on the amount of distributions. The Board of each fund retains the right to amend or terminate the managed distribution plan without prior notice. Any changes to the plan could impact the market value of the fund’s shares.
With each distribution that contains sources other than net investment income, the fund issues a notice and press release detailing the estimated composition of the payout. However, these estimates are not intended for tax reporting purposes. Shareholders will receive a Form 1099-DIV at year-end, specifying how to report distributions for federal tax purposes.
Additionally, funds may distribute amounts exceeding net investment income and realized capital gains. In such cases, part of the distribution may be classified as a return of capital. A return of capital can occur when shareholders receive a portion of their original investment back. While this is not necessarily an indicator of poor performance, it does reduce the fund’s total assets and may increase its expense ratio. Furthermore, maintaining distribution levels may require the sale of portfolio securities, potentially at unfavorable market conditions.
Investors are encouraged to review fund documents and consult financial advisors to better understand the impact of these distributions on their investments. For more information, visit MFS.com.
