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Sit group challenges MFS Charter (NYSE: MCR) fund merger plan

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
SCHEDULE 13D

Rhea-AI Filing Summary

Sit Investment Associates and Sit Fixed Income Advisors report beneficial ownership of 4,097,943 shares of MFS Charter Income Trust, representing 9.8% of the common stock, based on 41,688,435 shares outstanding as of November 30, 2025. The shares are held in client accounts, acquired in open-market transactions, with the Sit entities having shared voting and dispositive power.

The Sit entities state they hold the position for investment purposes but may buy or sell more shares, vote, or make proposals as they deem advisable. They sent a February 24, 2026 letter to the Board opposing a proposed reorganization in which MFS Charter Income Trust and related funds would merge into MFS Multimarket Income Trust, and they may engage further with the Board, management, and shareholders, including potential board nominations or shareholder proposals.

Positive

  • None.

Negative

  • None.

Insights

Large holder discloses 9.8% stake and formally opposes a proposed fund reorganization.

The Sit entities, as registered investment advisers, now disclose control over 4,097,943 MFS Charter Income Trust shares, or 9.8% of the common stock. The position is held across client accounts, with shared voting and dispositive power but no single client exceeding 5% ownership.

They describe the stake as an investment and reserve flexibility to trade, vote, or engage with the fund. The notable development is their February 24, 2026 letter to the Board opposing a previously approved reorganization that would move assets of several target funds into MFS Multimarket Income Trust, followed by liquidation of the targets.

The filing indicates they may discuss issues such as performance, discounts to asset value, distribution rate, capitalization, investment strategy, and portfolio holdings with the Board and shareholders, and could bring shareholder proposals or trustee nominations. The actual impact will depend on future board and shareholder responses and any additional actions disclosed in subsequent communications.






If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box.

The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).






SCHEDULE 13D






SCHEDULE 13D






SCHEDULE 13D


SIT INVESTMENT ASSOCIATES INC
Signature:/s/ Roger J. Sit
Name/Title:Roger J. Sit, Chairman & CEO
Date:02/24/2026
SIT FIXED INCOME ADVISORS II LLC /ADV
Signature:/s/ Roger J. Sit
Name/Title:Roger J. Sit, Chairman & CEO
Date:02/24/2026

FAQ

What stake in MFS Charter Income Trust (MCR) do the Sit entities report?

The Sit entities report beneficial ownership of 4,097,943 MFS Charter Income Trust shares, representing 9.8% of the common stock. This percentage is calculated using 41,688,435 shares outstanding as of November 30, 2025, as disclosed in the issuer’s Form N-CSR.

Who are the Sit entities filing this Schedule 13D on MFS Charter Income Trust (MCR)?

The filing is made by Sit Investment Associates, Inc., a Minnesota corporation, and Sit Fixed Income Advisors II, LLC, a Delaware limited liability company. Both are registered investment advisers, with Sit Fixed Income Advisors II, LLC operating as a subsidiary of Sit Investment Associates, Inc.

How did the Sit entities acquire their MFS Charter Income Trust (MCR) shares?

The Sit entities acquired the issuer’s shares in open market transactions using client funds held in custody accounts they manage. These purchases were made in the ordinary course of business under investment management agreements granting them discretionary authority and responsibility to vote client-held shares.

What is the purpose of the Sit entities’ investment in MFS Charter Income Trust (MCR)?

The Sit entities state they acquired the shares for investment purposes in the ordinary course of business. They may purchase, hold, vote, trade, or sell shares as they deem advisable, considering market prices, the fund’s strategy, portfolio composition, and share price relative to asset value.

How do the Sit entities view the proposed reorganization involving MFS Charter Income Trust (MCR)?

They oppose the proposed reorganization under which MFS Charter Income Trust and related target funds would transfer assets to MFS Multimarket Income Trust. On February 24, 2026, they sent the Board a letter stating this opposition, which is attached as an exhibit and incorporated by reference.

What actions might the Sit entities take regarding MFS Charter Income Trust (MCR) governance?

The Sit entities may engage in discussions with management, the Board of Trustees, and shareholders on issues such as performance, distribution rate, capitalization, strategy, and portfolio holdings. They may also make binding or non-binding shareholder proposals or nominate individuals for election to the Board of Trustees.
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