MFS CHARTER INCOME TRUST Business Summary

MFS Charter Income Trust (MCR) is a closed-end management investment trust that generates revenue primarily through asset-based management fees and the collection of interest income and capital gains from a globally diversified portfolio of debt instruments. The fund's primary business segments are concentrated in fixed-income markets, specifically targeting U.S. and foreign corporate bonds, government securities, mortgage-backed and asset-backed securities, and emerging market debt. As of February 2026, the trust is navigating a significant strategic transition following a Board-approved proposal to reorganize and merge MCR into the MFS Multimarket Income Trust (MMT), with abrdn Inc. slated to assume investment advisory duties. MCR competes directly with other multi-sector closed-end funds such as BlackRock Limited Duration Income Trust (BLW), Putnam Master Intermediate Income Trust (PIM), and Western Asset Premier Bond Closed Fund (WEA), maintaining a market position as a veteran income-focused vehicle currently undergoing consolidation to optimize scale and management expertise. While the trust was established in 1989 by its sponsor, Massachusetts Financial Services (MFS)—the firm that pioneered the first U.S. open-end mutual fund in 1924—its current leadership is spearheaded by David L. DiLorenzo, who serves as President and Principal Executive Officer, and Kasey L. Phillips, the Treasurer and Principal Financial Officer. The fund's day-to-day investment operations are managed by a high-pedigree portfolio team including David P. Cole, Ward Brown (formerly an economist at the International Monetary Fund), and Erik S. Weisman. This management group is supported by a Board of Trustees chaired by David H. Gunning. The trust maintains a strong institutional investor base, with significant positions held by major financial entities such as Morgan Stanley, Sit Investment Associates, and Allspring Global Investments, reflecting its long-standing reputation within the fixed-income community.