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MFS Charter Income Trust V.MCR


Primary Symbol: MCR

MFS Charter Income Trust (Fund) is a diversified closed-end management investment company. The Fund’s investment objective is to seek high current income, but also considers capital appreciation. The Fund primarily invests in debt instruments. The Fund also invests in corporate bonds of the United States and/or foreign issuers, United States government securities, foreign government securities, mortgage-backed securities and other securitized instruments of United States and/or foreign issuers, and/or debt instruments of issuers located in emerging market countries. It invests in a range of fixed income sectors, such as high yield corporates, emerging markets bonds, investment grade corporates, Non- United States government bonds, commercial mortgage-backed securities, mortgage-backed securities, collateralized debt obligations, municipal bonds, asset-backed securities and United States treasury securities. The Fund's investment advisor is Massachusetts Financial Services Company.


NYSE:MCR - Post by User

Bullboard Posts
Post by longrun86on May 01, 2019 1:41am
81 Views
Post# 29693044

Annual Information Form

Annual Information FormGood evening,

A few items I wanted to bring to everyones attention:

Annual Information Form Released
I noticed that Macro decided to file an Annual Information Form ("AIF") on Sedar (April 30th). It's a great read for those wanting to learn a bit more about the company. It is worth noting that this AIF was filed voluntarily (read: not required) and to me that indicates that the Company is getting a few more analysts sniffing around.

Research Coverage
At the present time Macro is followed by three equity research institutions: Cormark ($5), Paradigm ($5), and PI Financial ($4.75). With the market capitalization now exceeding $100 million and the Company reaching out to the investment community I anticipate an uptick in interest across the investor spectrum.

Ownership Structure
Macro is tightly held with Insiders holding over 32% of the Company. The public float is just over 66%. Missing from this equation are institutional shareholders (read: investment funds) who comprise a paltry 2%. Many institutions face restrictions in their investment mandate and a common restriction is that the company has to have a market capitalization of $100 million and trade for a price above $5.

When I dug into the ownership information as at June 30, 2014 (a higher share price than today), there were a dozen investment funds that held positions in Macro including: CIBC, Connor Clark and Lunn, Manulife, Blackrock, Penderfund, Sprott... et al.


Conclusion
With continued strong results and a few positive follow on announcements in Q2 and Q3, I believe research coverage should increase. It is conceivable that 2019 marks the year that Macro is considered "investible" to the institutional world. By no means is this risk free; however, I can't help but thinking that my fellow Stockhouse members aren't exactly GIC type folks!

Good luck!

LR 

Bullboard Posts