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Mfs Investment Grade Municipal Trust
MFS Investment Grade Municipal Trust is a close-ended fixed income mutual fund that was launched by Mellon Financial Corporation. It is now managed by MFS Investment Management.
Here are some key details about MFS Investment Grad Municipal Trust:
Ticker symbol: CXH
Type: Closed-ended fund
Inception date: March 27, 2RE
Manager: Christian B. Flynn
AUM: $ 1.18 billion
Yield: 4.05%
Dividend Yield: 4.18%
Net assets: $ 1.27billion
Total Net Assets: $ 1.27 billion
Market Capitalization: 1.27 billion
The fund's primary investment objective is to provide current income exempt from federal income tax. It seeks to achieve this by investing in a diversified portfolio of investment-grade municipal securities. The fund primarily invests in long-term municipal debts with maturities of more than five years.
As of December 31, 2022, the fund's top holdings include bonds issued by the New York City Transitional Finance Authority, the Commonwealth of Massachusetts, and the City of Los Angeles.
The fund's NAV (net asset value) returned -13.82 percent in 2022, underperforming the Lipper Municipal Debt Funds index, which returned -9.13 percent.
In terms of growth, the fund has faced challenges in recent years amid a rapidly rising interest rate environment. However, the fund managers have emphasized the importance of patience in investing in municipal bonds, highlighting their potential to perform better in a recession due to their yield advantage.
In terms of earnings, the fund has a 30-day SEC yield of 4.05%, exceeding the 30-day SEC yield of the Lipper Municipal Debt Funds index of 2.94%. Its 30-day unsubsidized SEC yield is 4.18%.
It is important to note that investing in MFS Investment Grade Municipal Trust involves risks, including interest-rate risk, credit risk, and liquidity risk. Interest rate risk means that the value of the fund's municipal bonds may decline when interest rates rise, as investors may sell their shares at lower prices. Credit risk is the risk that bond issuers may default, reducing the value of the fund's holdings, and liquidity risk, which means that selling shares can be challenging or impossible when needed.
Before investing in MFS Investment Grade Municipal Trust, it is essential to conduct thorough research and consult with financial advisors to determine whether this fund aligns with your investment goals and risk tolerance.