MGF Board Approves 7.25% Level Monthly Distribution Plan Starting October 2007
The board of MFS Government Markets Income Trust (NYSE: MGF) approved a level-distribution plan that will pay monthly distributions to common shareholders at an annual minimum fixed rate of 7.25% of average monthly net asset value, starting October 2007. The filing says the rate exceeds the trust's net investment income, so distributions may include return of shareholder capital, which would reduce total assets.
- Monthly distributions begin October 2007 at an annual minimum fixed rate of 7.25% of average monthly net asset value
- The 7.25% rate currently exceeds net investment income, so distributions may include return of capital
- Adviser MFS says the plan may narrow or eliminate the discount to net asset value, but no assurance is given
- Shareholders will vote on a leverage proposal of up to 33 1/3 percent of assets at the November 1, 2007 annual meeting