MFS High Income Municipal Trust (NYSE:CXE) is a diversified, closed-end investment company that seeks to provide high current income exempt from federal income tax. The trust primarily invests in a portfolio of municipal obligations, including general obligation bonds, revenue bonds, and other tax-exempt debt securities issued by state and local governments across the United States. By focusing on municipal securities, CXE aims to offer investors a tax-efficient income stream while maintaining diversification across issuers, sectors, and geographic regions.
The trust employs a disciplined, research-driven approach to portfolio construction under the management of MFS Investment Management. Its investment team analyzes credit quality, yield characteristics, and market conditions to identify opportunities in both investment-grade and below-investment-grade municipal bonds. In addition to long-term bonds, the portfolio may include short- to intermediate-term instruments and derivative overlays for hedging interest rate risk or enhancing yield. To augment income potential, CXE utilizes modest leverage through the issuance of preferred shares and borrowings, in line with its stated leverage policy.
Established in 1987, MFS High Income Municipal Trust has a long track record of navigating various market cycles. The trust’s history reflects an evolving municipal bond landscape, from periods of fiscal stress in local governments to phases of credit recovery and lower rates. Over the decades, the portfolio has been adapted to reflect shifts in interest rates, credit fundamentals, and regulatory environments, demonstrating a commitment to risk management and income generation.
The governance of CXE rests with an independent board of trustees, which oversees the trust’s policies, expenses, and compliance with regulatory requirements. Investment decisions are executed by seasoned municipal bond specialists within MFS Investment Management, an affiliate of Sun Life Financial. With access to global research capabilities and a dedicated municipal credit team, the trust leverages deep sector expertise to navigate tax-exempt markets on behalf of its shareholders.
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