Aberdeen Government Markets Income Fund · NYSE:MGF
Aberdeen Government Markets Income Fund — MFS Government Markets Income Trust — Proxy Contest (October 2007)
17 slides from Aberdeen Government Markets Income Fund's proxy contest presentation, Oct 2, 2007
Slide 1: Schedule 14A
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A (RULE 14a-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant x Filed by a
Slide 2: Presentation to Institutional Shareholder Services
MFS Government Markets Income Trust Presentation to Institutional Shareholder Services October 2, 2007
Slide 3: Contents
Contents 1. Overview 2. MFS Government Markets Income Trust 3. Superior Slate of Trustees 4. Proposal to Amend Fundamental Policy Concerning Borrowing 5. Shareholder Proposal to Open-End
Slide 4: Overview – Directors with Better Qualifications (Proposal 1)
1. Overview – Directors with Better Qualifications (Proposal 1) To elect four Trustees, each to serve for a term of three years and until their successors are elected and qualify Electing lesser-qualified trustees is not in the best interests of all shareholders Management’s nominees are better qual
Slide 5: Overview – Amendment to Approve Borrowing (Proposal 2)
1. Overview – Amendment to Approve Borrowing (Proposal 2) Passage of this proposal will allow the Fund to use leverage The Trustees believe that the tactical use of leverage will enable the Fund to realize an increased investment return
Slide 6: Overview – Short-term vs. Long-term Interests (Proposal 3)
1. Overview – Short-term vs. Long-term Interests (Proposal 3) Proposal requests that the Trustees “promptly take the steps necessary to open end the Trust or otherwise enable shareholders to realize net asset value (‘NAV’) for their shares” If the fund were to be converted to an open-end structure,
Slide 7: MFS Government Markets Income Trust - Highlights
2. MFS Government Markets Income Trust - Highlights NYSE traded: MGF – Market Cap: approx. $353 million (as of September 25, 2007) Fund invests primarily in Mortgage-Backed Securities, US Government Agency Bonds and US Treasury Securities 91.48% is rated AAA; the average duration is 4.52 years (as o
Slide 8: About MFS
2. MFS Government Markets Income Trust – About MFS MFS is a global asset management firm that serves investors around the world. 15 offices around globe MFS’ global research team covers the world through their offices in five international cities – Boston, London, Mexico City, Singapore, and Tokyo.
Slide 9: About MFS
2. MFS Government Markets Income Trust – About MFS MFS has followed a disciplined, bottom-up security-selection process, known as MFS Original Research® since 1932, when we established one of the first in-house research groups in the industry. We believe this fundamental bottom-up Original Research
Slide 10: MGF Proposes Superior Slate: Current Director Candidates
3. MGF Proposes Superior Slate: Current Director Candidates The four management nominees are better qualified than the dissident nominees Robert J. Manning – CEO, President, and CIO of Massachusetts Financial Services Company since 2004; led MFS’ fixed income division from 2001 to 2004; held several
Slide 11: Dissident Director Candidates Less Qualified
3. MGF Proposes Superior Slate: Dissident Director Candidates Less Qualified The slate of directors proposed by Bulldog is beholden to Mr. Goldstein. They have in common their having been repeatedly nominated by Mr. Goldstein in closed-end fund proxy contests Gerald Hellerman – Has served as a Golds
Slide 12: Bulldog Investors' Self-Serving Interests
3. MGF Proposes Superior Slate: Bulldog Investors’ Self-Serving Interests Bulldog is a private investment partnership controlled by Phillip Goldstein Mr. Goldstein, his affiliates and nominees have a history of engaging in proxy contests with closed-end funds
Slide 13: Proposal to Amend Fundamental Policy Concerning Borrowing
4. Proposal to Amend Fundamental Policy Concerning Borrowing Passage of this proposal will allow the Fund to use leverage The Trustees believe that the tactical use of leverage will enable the Fund to realize an increased investment return The Fund would incur indebtedness of up to 33.3% of its asse
Slide 14: Shareholder Proposal to Open-End
5. Shareholder Proposal to Open-End The dissidents are requesting that shareholders vote for an open-ending of the Fund as a means to narrow the Fund’s discount. However, the Board has recently taken actions responsive to those shareholders’ concerns: 1. In April 2007, the Board approved a change in
Slide 15: Shareholder Proposal to Open-End
5. Shareholder Proposal to Open-End The Board believes that these actions are meaningful and responsive to the dissidents’ expressed concern about the Fund’s discount. The Board believes these actions should be afforded an opportunity to serve their intended purpose prior to taking any further actio
Slide 16: Shareholder Proposal to Open-End
5. Shareholder Proposal to Open-End Open-ending the Fund represents a change to a core characteristic of the Fund as in investment. Open-end funds must grapple with the constant inflow and outflow of funds, requiring that a certain portion of the Fund’s assets not be invested. As a closed-end fund,
Slide 17: Forward-Looking Statements
Forward-Looking Statements Statements made in this presentation that look forward in time involve risks and uncertainties and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adver
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