#United States #Philadelphia #Aberdeen Investments #MFM #MFS Municipal Income Fund

MFS Municipal Income Trust Completes Reorganization

The MFS Municipal Income Trust has successfully completed its reorganization, merging three of its funds—MFS High Yield Municipal Trust (CMU), MFS High Income Municipal Trust (CXE), and MFS Investment Grade Municipal Trust (CXH)—into a singular entity known as the Aberdeen Municipal Income Fund (MFM). This pivotal move signifies an important transition in investment management within the municipal finance sector.

Key Details of the Reorganization

The reorganization officially took place prior to the opening of the New York Stock Exchange on June 8, 2026. As part of this initiative, shareholders from the Target Funds received a number of MFM common shares equivalent to the net asset value of their previous holdings as of June 5, 2026. Specifically:

• - CMU shareholders received 0.6205884 shares of MFM for each share they owned.
• - CXE shareholders received 0.68270092 shares of MFM for each share they owned.
• - CXH shareholders received 1.41118085 shares of MFM for each share they owned.

Fund NAV and Shareholder Impact

The new fund's net asset value per share was established at $6.01 as of the same date. For reference, the NAV for each of the acquired funds was:

• - CMU: $3.7297
• - CXE: $4.1030
• - CXH: $8.4812

This restructuring is designed to streamline operations and enhance shareholder value while maintaining the fund’s primary objective of providing high current income that is exempt from U.S. federal income tax, alongside potential capital appreciation.

Change of Management

With this reorganization, abrdn Inc. (known as Aberdeen) has stepped in as the new investment adviser, replacing MFS Investment Management. Aberdeen has a long history of managing municipal bond portfolios, with its US Municipal team being led by prominent figures such as Jonathan Mondillo, the Global Head of Fixed Income, and Miguel Laranjeiro, Investment Director for US Investment Grade.

New Board of Trustees

In conjunction with the management change, the Fund saw a complete shift in its board of trustees. Shareholders elected new trustees on April 8, 2026, which included names like Todd Reit and Nancy Yao. This change ensures fresh leadership aligned with the objectives of the newly structured Aberdeen Municipal Income Fund.

Future Outlook and Investment Strategy

Looking ahead, no significant changes to the fund’s investment policies and strategies are expected. Aberdeen’s team will adopt a collaborative approach in managing the fund, drawing on their extensive experience in municipal investments to optimize returns for shareholders. The team plans to execute investment strategies that align closely with the fund’s goals and market conditions.

Important Considerations for Investors

Investors in closed-end funds should be aware that share prices can fluctuate based on market conditions, potentially trading at premiums or discounts to their net asset values (NAV). As noted, historical performance may not reliably predict future returns. Stakeholders should consider these dynamics when engaging in trading activities for the Fund's shares.

About Aberdeen Investments

Founded in the 1980s, Aberdeen Investments is recognized as a key player in asset management, overseeing numerous closed-end funds worldwide, including a robust footprint in the United States. As of March 31, 2026, Aberdeen manages roughly $506 billion in assets, with a broad range of investment options for close-end fund investors.

For detailed inquiries, investors are encouraged to reach Aberdeen’s investor relations or visit Aberdeen Municipal Income Fund.