MFS HI YLD (NYSE:CMU) is a closed-end management investment company that seeks to provide high current income exempt from federal income tax, with a secondary objective of preserving capital. It primarily invests in high-yield municipal securities, including revenue bonds, general obligation bonds and other municipally issued debt obligations. The trust pursues an active management strategy, leveraging in-depth credit research and market analysis to construct a diversified portfolio of tax-exempt instruments.
The fund’s portfolio spans a broad range of municipal sectors such as utilities, transportation, healthcare and essential service revenue bonds, with allocations across multiple states. Portfolio managers may also employ interest rate and credit derivatives, repurchase agreements and other hedging techniques to manage duration and credit exposure. Through this approach, CMU aims to enhance yield while mitigating risks associated with fluctuations in interest rates and credit spreads.
Launched in the mid-1990s and managed by MFS Investment Management, CMU has established a track record of regular monthly distributions and rigorous risk oversight. The fund is subject to regulation under the Investment Company Act of 1940 and adheres to a disciplined investment process driven by both quantitative models and qualitative credit assessments. Headquartered in Boston, MFS leverages its long-standing presence in the municipal market to access proprietary research and underwrite opportunities in both primary and secondary bond offerings.
Investment decisions for MFS HI YLD are overseen by a team of seasoned municipal bond specialists with decades of collective experience. The trust’s board of trustees, including a majority of independent directors, provides governance and monitors the advisory relationship with MFS. Together, the leadership team strives to balance yield generation with capital preservation, serving investors seeking tax-advantaged income within a diversified municipal portfolio.
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