MFS Investment Management® (MFS®) has announced the distribution income sources for December 2024 for five of its closed-end funds. These funds are 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). The detailed breakdown of distribution information is available at MFS.com under Products & Strategies > Closed-End Funds > Dividend Source Information.
MFS Charter Income Trust (NYSE: MCR)
Distribution Period: December 2024
Amount Per Share: $0.04548
Distribution Breakdown:
- Net Investment Income: $0.04548 (100%)
Cumulative Total for FY 2024: $0.04548 (100%)
Key Performance Metrics:
- Average Annual Total Return (5 years): 3.24%
- Annualized Current Distribution Rate (as of November 30, 2024): 7.94%
- Cumulative Total Return (FY 2024): 11.68%
The MFS Charter Income Trust focuses on generating consistent income for shareholders while aiming to achieve a competitive total return over time. Its distribution for December 2024 reflects strong net investment income, reinforcing its role as a reliable income-generating fund.
MFS Government Markets Income Trust (NYSE: MGF)
Distribution Period: December 2024
Amount Per Share: $0.01954
Distribution Breakdown:
- Net Investment Income: $0.01954 (100%)
Cumulative Total for FY 2024: $0.01954 (100%)
Key Performance Metrics:
- Average Annual Total Return (5 years): 0.06%
- Annualized Current Distribution Rate (as of November 30, 2024): 7.19%
- Cumulative Total Return (FY 2024): 6.55%
The MFS Government Markets Income Trust is designed to provideC losed-End Funds steady income primarily through investments in U.S. government securities. While its average annual total return over five years remains modest, its December 2024 distribution highlights its commitment to delivering consistent returns to investors.
MFS Intermediate High-Income Fund (NYSE: CIF)
Distribution Period: December 2024
Amount Per Share: $0.01478
Distribution Breakdown:
- Net Investment Income: $0.01478 (100%)
Cumulative Total for FY 2024: $0.01478 (100%)
Key Performance Metrics:
- Average Annual Total Return (5 years): 3.41%
- Annualized Current Distribution Rate (as of November 30, 2024): 9.48%
- Cumulative Total Return (FY 2024): 13.70%
The MFS Intermediate High-Income Fund aims to generate a high level of income by investing in a diversified portfolio of fixed-income securities. With Closed-End Funds a robust annualized current distribution rate and strong cumulative total returns for FY 2024, it continues to be a significant option for income-seeking investors.
MFS Intermediate Income Trust (NYSE: MIN)
Distribution Period: December 2024
Amount Per Share: $0.01981
Distribution Breakdown:
- Net Investment Income: $0.00753 (38%)
- Return of Capital: $0.01228 (62%)
Cumulative Total for FY 2024: $0.03989 (100%)
Key Performance Metrics:
- Average Annual Total Return (5 years): 1.87%
- Annualized Current Distribution Rate (as of November 30, 2024): 8.46%
- Cumulative Total Return (FY 2024): 0.74%
The MFS Intermediate Income Trust focuses on providing steady income while maintaining a conservative risk profile. Its December 2024 distribution includes a substantial return of capital component, reflecting a balanced approach to meeting investor needs. Despite a modest cumulative total return for FY 2024, its annualized current distribution rate remains attractive.
MFS Multimarket Income Trust (NYSE: MMT)
Distribution Period: December 2024
Amount Per Share: (Details to be included upon release)
Distribution Breakdown:
- (Details pending)
Cumulative Total for FY 2024: (Details pending)
Key Performance Metrics:
- (Metrics pending)
The MFS Multimarket Income Trust integrates investments across multiple sectors and markets to maximize income and achieve long-term growth. Distribution details for December 2024 are forthcoming, providing further insight into its performance.
Overview of Closed-End Funds
MFS Investment Management® has long been recognized for its comprehensive portfolio of closed-end funds tailored to meet diverse investor needs. Closed-end funds are investment vehicles with a fixed number of shares, typically traded on stock exchanges. They combine the benefits of professional management with the potential for steady income and capital appreciation.
These funds’ December 2024 distributions underscore their ability Closed-End Funds to generate consistent returns, even amid varying market conditions. Each fund’s unique investment strategy contributes to its appeal, whether through government securities, high-yield fixed income, or a mix of diverse asset classes.
Importance of Understanding Distribution Components
Understanding the breakdown of distributions is critical for investors seeking to align their investment goals with fund performance. Key components such as net investment income and return of capital provide insight into a fund’s income generation and capital management strategies.
- Net Investment Income (NII): This represents income earned from interest and dividends after deducting expenses. Funds with 100% NII distributions indicate strong income generation from their underlying investments.
- Return of Capital (ROC): This component represents a return of the investor’s original investment rather than income generated. While it can provide tax advantages, excessive reliance on ROC may indicate challenges in sustaining income from investments.
Strategic Implications for Investors
Investors should consider several factors when evaluating these funds:
- Distribution Sustainability: A higher percentage of NII in distributions often signals a fund’s ability to sustain payouts through income generation.
- Total Return Performance: Metrics like cumulative total return and average annual total return over five years provide a comprehensive view of a fund’s historical performance.
- Risk Profile: Understanding the risk associated with each fund’s asset allocation is essential for aligning investments with individual risk tolerance and income requirements.
MFS Multimarket Income Trust
- Distribution period: December 2024
- Amount per share: $0.03385
- Distribution breakdown:
- Net Investment Income: $0.03385 (100%)
- Cumulative Total for FY 2024: $0.06803 (100%)
- Average Annual Total Return (5 years): 4.24%
- Annualized Current Distribution Rate (as of 11-30-2024): 7.95%
- Cumulative Total Return (FY 2024): 1.32%
These funds utilize a managed distribution plan, which may include Closed-End Funds returns of capital or long-term capital gains if sufficient investment income is not available. Distributions are not indicative of the fund’s investment performance, and shareholders will receive Form 1099-DIV for tax reporting purposes. These estimates are subject to change, and the plan may be amended or terminated at any time.
MFS Investment Management® continues to demonstrate its commitment to delivering value to investors through its closed-end funds. The December 2024 distributions Closed-End Funds highlight the resilience and adaptability of these funds in meeting income and total return objectives. By leveraging Closed-End Funds detailed information on distribution sources and performance metrics, investors can make informed decisions to achieve their financial goals.
For further details on these funds and their performance, visit MFS.com and explore the Closed-End Funds section.
