Stockholders of Montgomery Street Income Securities, Inc. Approve Liquidation at Special Meeting
November 16 2015 - 4:46PM
Business Wire
At a special meeting of stockholders held today, the
stockholders of Montgomery Street Income Securities, Inc. (NYSE:
MTS) (the “Fund”) approved the dissolution and liquidation of the
Fund. In accordance with the Plan of Dissolution and Liquidation
approved by stockholders, the Fund’s investments will be sold, and
the Fund’s investments will no longer be managed in accordance with
the investment objectives and policies of the Fund. After providing
for liquidation expenses and any other liabilities, the Fund
expects to make one final liquidating distribution to stockholders,
and the Fund will cease operations.
The Fund’s Board of Directors will meet in December to declare
the final liquidating distribution, which will include the net
income that had been earned during the third quarter but not yet
paid. It is expected that the Fund’s shares will cease trading on
the NYSE the day after the record date for the final distribution,
and that the final distribution will be made on or about December
30, 2015. In order to receive the final distribution, stockholders
will be required to surrender their stock certificates pursuant to
instructions to be provided by the Fund’s transfer agent.
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
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inquiries:Atlantic Fund Administration, 855-422-4512