Corporate GovernanceMay 12, 2026, 05:32 PM
MFS Intermediate Income Trust seeks approval for new adviser, board
AI Summary
MFS Intermediate Income Trust will hold a Special Meeting of Shareholders on June 18, 2026, to approve a new investment advisory agreement with abrdn Inc. and to elect five new Trustees. These proposals are contingent on each other and are part of a broader transaction where abrdn acquires MFS's investment management business for the Trust. The Board recommends approval, citing expected lower total annual expenses and continuity of the managed distribution plan.
Key Highlights
- Special Meeting of Shareholders scheduled for June 18, 2026, at 11:00 a.m. Eastern Time.
- Shareholders to vote on new investment advisory agreement with abrdn Inc. to replace MFS.
- Shareholders to elect five new Trustees (Christian Pittard, Nancy Yao, C. William Maher, Gordon Baird, Todd Reit).
- New investment advisory fee is tiered, starting at 0.65% of Managed Assets up to $150 million.
- Aberdeen Expense Limitation ensures total operating expenses do not exceed 0.72% of Managed Assets for at least two years.
- Total annual expenses are expected to be lower at 0.72% (including limitation) compared to MFS's 0.73%.
- The Trust's name will change to Aberdeen Intermediate Income Fund.
- Managed distribution rate to remain at an annual rate of 8.50% of average monthly net asset value.