MFS Multimarket Income Trust (MMT)
Discount to NAV: 11.96%
Distribution Yield: 6.76%
Back in 1924, asset manager MFS debut the first mutual fund in the United States — Massachusetts Investors Trust (MITTX). Since then, MFS has built upon that legacy to include several highly ranked- mutual funds and CEFs.
That includes CEF stalwart the MFS Multimarket Income Trust (MMT).
The Morningstar bronze-rated fund’s portfolio is invested in wide range of different bonds varieties — from high-yield and emerging-market debt to investment-grade corporate debt and treasury bonds.
And MMT’s management has discretion on what to buy and when, making the CEF able to shift around its portfolio as needed. This attribute allowed MMT’s managers to stem losses in the crisis of 2008 by focusing on high-quality bonds.
Currently, the bulk of the portfolio is in corporate bonds (61% junk, 18% investment grade) and emerging market debt (21%).
MMT comes with a hefty 6.76% distribution yield and is currently trading for a nearly 12% discount to its underlying value. That’s well over the normal discount range for the fund. Expenses for MMT run 1.00% — or $100 per $10,000 invested — per year.