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Sit entities oppose MFS Government Markets Income Trust (MGF) reorganization plan

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

Rhea-AI Filing Summary

Sit Investment Associates and Sit Fixed Income Advisors II filed a Schedule 13D reporting beneficial ownership of 9,101,782 common shares of MFS Government Markets Income Trust, representing 27.9% of the fund’s outstanding shares as of November 30, 2025. The firms hold shared voting and dispositive power over these shares through client accounts they advise, with no single client account owning more than 5% of the fund. They state the position is for investment purposes but outline that they may buy, sell, vote, or otherwise act on the shares as they deem advisable and may engage with management and the Board, submit shareholder proposals, or nominate trustees. The Sit entities sent a February 24, 2026 letter to the Board formally opposing a proposed reorganization in which MFS Government Markets Income Trust and three related funds would merge into MFS Multimarket Income Trust.

Positive

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Negative

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Insights

Large 27.9% stake and open opposition to a fund merger signal potential governance contest but no assured outcome.

The Sit entities report beneficial ownership of 9,101,782 shares, or 27.9% of MFS Government Markets Income Trust, held in client accounts they advise. They have shared power to vote and dispose of these shares, which gives them significant influence in shareholder decisions.

The filing states the holdings are for investment purposes and acquired in the ordinary course, yet it also details possible actions such as engaging the Board, submitting shareholder proposals, or nominating trustees. This combination of size and stated flexibility introduces the potential for more active governance involvement.

A key disclosed step is their February 24, 2026 letter to the Board opposing a planned reorganization of the fund and three related “Target Funds” into MFS Multimarket Income Trust. The impact on the reorganization depends on how other shareholders vote and whether the Sit entities pursue further actions described in the filing. Subsequent shareholder meetings and related disclosures will show how this large stake affects the deal’s prospects.






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

How big is Sit’s stake in MFS Government Markets Income Trust (MGF)?

Sit entities report beneficial ownership of 9,101,782 common shares, representing 27.9% of MFS Government Markets Income Trust based on 32,590,193 shares outstanding as of November 30, 2025. This sizable position gives them meaningful influence on shareholder votes and governance outcomes.

Who are the reporting persons in this MGF Schedule 13D filing?

The Schedule 13D is filed by Sit Investment Associates, Inc. and Sit Fixed Income Advisors II, LLC, both registered investment advisers. Sit Fixed Income Advisors II is a subsidiary of Sit Investment Associates. They collectively act as investment advisers with discretionary authority over client accounts holding the fund’s shares.

How do the Sit entities hold their MGF shares and who has voting power?

The MGF shares are held in client custody accounts managed by the Sit entities, not owned directly by them. They report shared voting and shared dispositive power over 9,101,782 shares, while no single client account owns more than 5% of the fund’s outstanding shares.

What is the purpose of the Sit entities’ investment in MGF?

The Sit entities state they acquired MGF shares for investment purposes in the ordinary course of business, using client funds in open-market transactions. They may buy, hold, vote, trade, or sell shares as they deem advisable, based on price, fund performance, strategy, and portfolio considerations.

How do the Sit entities view the proposed MGF reorganization?

They explicitly oppose the proposed reorganization in which MGF and three related Target Funds would reorganize into MFS Multimarket Income Trust. On February 24, 2026, they sent a letter to the Board of Trustees outlining their opposition, which is attached as an exhibit and incorporated by reference.

What future actions might the Sit entities take regarding MGF?

The filing states the Sit entities may engage management and the Board, discuss performance and strategy, and make shareholder proposals or trustee nominations. They also may adjust their holdings through additional purchases, sales, or voting decisions, depending on market prices and fund-level developments.
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