MFS Intermediate Income Trust Fund (ticker:MIN) is a taxable investment grade closed end bond fund with about $790 million in net assets. The portfolio structure is global and widely diversified:
|High Grade Corporates||44%|
|Emerging Markets Debt||8%|
MIN has a low expense ratio and has been a very steady performer over the last decade. It has been up every year since 2000:
|Annual Rates of Return (%):|
|Year||NAV (%)||Mkt Price (%)|
MIN uses a managed annual distribution plan based on paying out 8.5% of monthly net asset value. MIN is not a leveraged fund and relies on return of capital distributions to maintain this policy.
The MIN discount to NAV is slightly below the 52 week average discount of -1.71%. It sold at a premium over NAV for most of the last month, but recently dipped in price to provide a decent buying opportunity. MIN has a low 4 year duration, which means that if benchmark interest rates rise by 100 basis points or 1%, the NAV of the fund would fall by around 4%.
Ticker: MIN MFS Intermediate Income Trust Fund. pays monthly
- Total Assets= 789MM
- Annual Distribution (Market) Rate= 8.53% Income Only Yield= 3.98%
- Average Duration: 4.0 years
- Average Bond Rating: A+
- Fund Expense ratio= 0.78% Discount to NAV= -2.36%
- Portfolio Turnover rate= 50%
- No leverage used
Full Disclosure: Long MIN in an IRA account.