MFS Closed-end Funds Announce Special Shareholder Meetings Relating to Proposed Reorganizations and Proposed Appointment of Aberdeen Investments as Investment Adviser

Core Viewpoint - MFS Investment Management announced the reorganization of three municipal trust funds into the MFS Municipal Income Trust, aiming to enhance scale, liquidity, and marketability, potentially benefiting shareholders with higher distribution rates and lower operating expenses [1][3][5]. Reorganization Details - The reorganization involves MFS High Income Municipal Trust, MFS High Yield Municipal Trust, and MFS Investment Grade Municipal Trust merging into the MFS Municipal Income Trust [1][3]. - The new fund will be managed by Aberdeen Investments, with the appointment of five new trustees and the issuance of additional common shares [1][8]. Shareholder Approval - Shareholders of the Target Funds will vote on the reorganization at a special meeting scheduled for March 11, 2026, with a prospectus/proxy statement to be provided [4][5][11]. - The reorganization is contingent upon shareholder approval and is expected to be completed in the second quarter of 2026 [5][11]. Investment Management Changes - A new investment management agreement will be established with Aberdeen Investments, which is recognized as one of the largest asset management firms globally, managing approximately $515 billion in assets as of September 30, 2025 [10][11]. - The election of five new trustees for the Surviving Fund is also subject to shareholder approval [8][11]. Fund Objectives - The Target Funds and the Surviving Fund share similar investment objectives and policies, with the reorganization aimed at benefiting shareholders by creating a larger fund with improved financial metrics [3][12].