-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JVGDN+vWI61RYQ6U3iK8/SsRj0bGdYdjk7yFtdY32buBuQFelsWPrph6lDWFVSoD Ek4xbmzXHIt3hwD1kMhtcw== 0000912938-07-000302.txt : 20070430 0000912938-07-000302.hdr.sgml : 20070430 20070430163231 ACCESSION NUMBER: 0000912938-07-000302 CONFORMED SUBMISSION TYPE: DEFA14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20070430 DATE AS OF CHANGE: 20070430 EFFECTIVENESS DATE: 20070430 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MFS GOVERNMENT MARKETS INCOME TRUST CENTRAL INDEX KEY: 0000811922 IRS NUMBER: 046565627 STATE OF INCORPORATION: MA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: DEFA14A SEC ACT: 1934 Act SEC FILE NUMBER: 811-05078 FILM NUMBER: 07800935 BUSINESS ADDRESS: STREET 1: 500 BOYLSTON ST STREET 2: 15TH FLOOR CITY: BOSTON STATE: MA ZIP: 02116 BUSINESS PHONE: 18006372929 MAIL ADDRESS: STREET 1: 500 BOYLSTON STREET STREET 2: 15TH FLOOR CITY: BOSTON STATE: MA ZIP: 02116 DEFA14A 1 mgf.txt MFS GOVERNMENT MARKETS INCOME TRUST UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant [ X ] Filed by a Party other than the Registrant [ ] Check the appropriate box: [ ] Preliminary Proxy Statement [ ] Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) [ ] Definitive Proxy Statement [ ] Definitive Additional Materials [ X ] Soliciting Material Pursuant to ss.240.14a-12 - -------------------------------------------------------------------------------- MFS GOVERNMENT MARKETS INCOME TRUST (Name of Registrant as Specified in Its Charter) - -------------------------------------------------------------------------------- (Name of Person(s) Filing Proxy Statement, if other than the Registrant) Payment of Filing Fee (Check the appropriate box): [ X ] No fee required. [ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. 1) Title of each class of securities to which transaction applies: - -------------------------------------------------------------------------------- 2) Aggregate number of securities to which transaction applies: - -------------------------------------------------------------------------------- 3) Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): - -------------------------------------------------------------------------------- 4) Proposed maximum aggregate value of transaction: - -------------------------------------------------------------------------------- 5) Total fee paid: - -------------------------------------------------------------------------------- [ ]Fee paid previously with preliminary materials. [ ]Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. 1) Amount Previously Paid: - -------------------------------------------------------------------------------- 2) Form, Schedule or Registration Statement No.: - -------------------------------------------------------------------------------- 3) Filing Party: - -------------------------------------------------------------------------------- 4) Date Filed: - -------------------------------------------------------------------------------- Trustees of MGF seek Shareholder Approval to Use Leverage Contact: John Reilly 617-954-5305 For Release: Immediate BOSTON (April 30, 2007) - The Board of Trustees of MFS Government Markets Income Trust (NYSE: MGF) has approved a change in investment strategy for the trust and a proposal to seek shareholder approval to allow the trust to use leverage. Both measures are designed to try to provide a more competitive yield and to potentially narrow the discount of the trust's share market price to net asset value (although there can be no assurance of any particular rate of return or whether the discount will be narrowed). MGF's investment objective is a high level of current income. The trust is required to invest at least 80 percent of its total assets in securities issued or guaranteed by the U.S. government or its agencies and securities issued by non-U.S. governments. The trust may invest up to 35 percent in foreign government securities, up to 20 percent in emerging market debt securities, and up to 10 percent in non-investment grade fixed income securities. By charter the trust is permitted to borrow money only as a temporary measure for extraordinary or emergency purposes or for share repurchases. The proposal to shareholders will ask them to allow the trust to add leverage of up to 33.3 percent of total assets. Over time short term interest rates are generally lower than long term rates and the provision would allow the trust to earn the difference between long term rates earned on investments and short term rates paid on the borrowing (although there can be no assurance that long term rates will be sufficiently higher than short term rates to make this investment strategy profitable for the trust). In addition, the trust plans to seek a higher yield from the portion of the portfolio not required to be invested in U.S. government or agency securities, by investing in such asset classes as corporate bonds and emerging market debt. MFS believes that while these investments may entail greater risk and increase portfolio volatility, they are consistent with the trust's investment objective and policies. Subject to final approval of the proposal by the Board of Trustees at their meeting in July, a shareholder proxy would be sent out in August. The trust's shareholder meeting is scheduled for October 4. MFS Government Markets Income Trust is advised by MFS Investment Management. MFS manages $187 billion in assets on behalf of more than 5 million individual and institutional investors worldwide as of December 31, 2006. The company traces its origins to 1924 and the creation of America's first mutual fund. -end- This information is provided by MFS Government Markets Income Trust. For more complete information about the trust, including risks, charges and expenses, please see the trust's annual and semi-annual shareholder report or contact an investment professional. Shareholders should read the proxy statement when it is available because it contains important information. Shareholders may obtain a copy of the proxy statement when it is available, and any other relevant documents, for free at the Securities and Exchange Commission website (sec.gov) or by contacting the trust at 1-800-637-2304. The trust's annual and semi-annual shareholder reports are also available without charge at mfs.com or by calling 1-800-637-2304 07-22077 -----END PRIVACY-ENHANCED MESSAGE-----