A pivotal shareholder meeting to decide on a significant transformation of the MFS Intermediate Income Trust has been postponed. The delay comes as the fund’s management has not yet secured sufficient votes to pass the sweeping proposals concerning its future structure and governance. The key decisions, centered on a merger and a change in fund management, will now be put to investors at a later date.
Strategic Plans Require Further Investor Support
Originally scheduled for March 11, the special meeting of shareholders will now be held on April 2, 2026. MFS Investment Management is using the additional time to solicit more votes from shareholders in favor of the proposed reforms. At the heart of the strategy is a comprehensive reorganization that would see the MFS Intermediate Income Trust combined with the MFS Multimarket Income Trust. The latter fund would serve as the surviving entity following the merger.
Proposed Changes Include New Advisor and Board
Alongside the merger, a notable shift in operational control is proposed. Shareholders are being asked to approve abrdn, Inc. as the new investment advisor for the combined fund. The plan also outlines the election of five new trustees and the authorization to issue additional common shares as part of the restructuring process. These strategic steps received unanimous approval from the fund’s Board of Trustees back in December 2025.
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Dividend Payments Continue Uninterrupted
Despite the ongoing strategic deliberations, the trust’s distribution policy remains unchanged. A dividend of $0.0192 per share has been declared for the current month. The payment will be distributed to investors on March 31, with the record date set for March 17. This maintains the fund’s consistent approach of generating regular income through investments in intermediate-term fixed-income securities.
The rescheduled vote on April 2 will ultimately determine the future governance and advisory framework for the portfolio. The outcome is set to define the leadership and legal structure under which the trust’s investment strategy will proceed.
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