Montgomery Street Income Securities, Inc. Sets Special Meeting Date and Eliminates October Dividend
October 22 2015 - 4:58PM
Business Wire
The Board of Directors of Montgomery Street Income Securities,
Inc. (NYSE: MTS) (the “Fund”) has set November 16, 2015 as the date
of the special meeting at which stockholders will be asked to vote
on the liquidation of the Fund. In anticipation of the liquidation,
the Board has also determined to eliminate the dividend that would
ordinarily be declared in October and, instead, to include the net
income that has been earned for that dividend in the liquidating
distribution that is expected in late December. In the event
stockholders do not approve the liquidation, the Board will declare
the dividend that had been eliminated, together with any other
year-end dividend that would be necessary to satisfy the Fund’s
income and excise tax distribution requirements for 2015.
Proxy materials for the special meeting are being distributed to
stockholders this week. Pending the special meeting, the Fund’s
investments will continue to be managed in accordance with the
current investment objectives and policies of the Fund. If
stockholders approve the liquidation, the Fund’s investments will
be sold and the Fund will make one or more cash distributions to
stockholders, after providing for liquidation expenses and any
other liabilities. The Fund will then cease operations.
The Fund is a closed-end diversified management investment
company whose primary investment objective is to seek as high a
level of current income as is consistent with prudent investment
risks, from a diversified portfolio primarily of debt securities.
The Fund’s shares are traded on the New York Stock Exchange under
the symbol MTS.
Closed-end funds, unlike open-end funds, are not continuously
offered. There is generally a one-time public offering and, once
issued, shares of closed-end funds are sold in the open market
through a stock exchange. Shares of closed-end funds frequently
trade at a discount to net asset value.
The price of the Fund’s shares is determined by a number of
factors, several of which are beyond the control of the Fund.
Therefore, the Fund cannot predict whether its shares will trade
at, below or above net asset value.
Investments in funds involve risk. Yields and market values will
fluctuate. Investing in foreign markets presents certain unique
risks not associated with domestic investments, such as currency
fluctuations, political and economic changes and market risks.
Additionally, the Fund invests in lower-quality and non-rated
securities, which present greater risks of loss of principal and
interest than higher-quality securities. All of these factors may
result in greater share price volatility.
This announcement is not an offer to purchase or the
solicitation of an offer to sell shares of the Fund, a prospectus,
a circular or representation intended for use in the purchase or
sale of Fund shares, or a proxy solicitation.
NOT FDIC/NCUA INSURED MAY LOSE VALUE NO BANK
GUARANTEENOT A DEPOSIT NOT INSURED BY ANY FEDERAL
GOVERNMENT AGENCY
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151022006648/en/
Montgomery Street Income Securities, Inc.For
stockholder inquiries:Computershare Shareowner Services,
877-437-3938orFor media inquiries:Atlantic
Fund AdministrationGino Malaspina, 207-347-2075