Business & Finance
Business and Finance
Business and Finance
Wed, June 23, 2010 MFS Announces Name, Investment Policy Changes for MFS California Insured Municipal Fund
BOSTON--([ BUSINESS WIRE ])--MFS Investment Management® (MFS®) announced today that the Board of Trustees for the firm's closed end funds has approved MFS' recommendation to rename MFS® California Insured Municipal Fund (AMEX: CCA) ("the Fund") and change the Fund's investment policy related to investments in insured obligations. Subject to fulfilling certain regulatory and rating agency requirements, on or about October 1, 2010, the Fund will be called MFS® California Municipal Fund and will no longer be required to have at least 80% of its net assets invested in municipal instruments covered by insurance.
MFS believes that changing the Fund's name and investment policy is appropriate in response to downgrades in credit ratings of municipal bond insurers and other significant market changes regarding insurance for municipal obligations. As a result of these market changes, there have been limited new issuances of insured bonds and the overall pool of municipal obligations in which the Fund may invest, in accordance with its current investment policies, has been significantly reduced. This has therefore limited available investment opportunities for the Fund. The Fund continues to seek high current income exempt from federal income tax and California state personal income tax, while also considering capital appreciation.
Shareholders in the Fund will receive notification following rating agency approval at least 60 days prior to the effective date of the changes.
About MFS Investment Management
MFS is a premier global money management firm with investment offices in Boston, London, Mexico City, Singapore, Sydney and Tokyo. The firma™s history dates back to March 21, 1924, and the establishment of the first U.S. aopen-enda mutual fund. MFS manages $184.3 billion in assets on behalf of individual and institutional investors worldwide, as of May 31, 2010.
The Fund is a closed-end investment product. Common shares of the Fund are only available for purchase/sale on the AMEX at the current market price. Shares of the Funds are not FDIC-insured and are not deposits or other obligations of, or guaranteed by, any bank. Shares of the Fund involve investment risk, including possible loss of principal. For more complete information about the Fund, including risks, charges, and expenses, please see the Fund's annual and semi annual shareholder report or contact your financial adviser.
20274.1
