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. )
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MFS GOVERNMENT MARKETS INCOME TRUST
(Name of Registrant as Specified in Its Charter)
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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