SAN FRANCISCO -- (Business Wire)
Montgomery Street Income Securities, Inc. (NYSE: MTS) (the “Fund”)
announced today that its Board of Directors has approved the liquidation
of the Fund, subject to the further approval of the Fund’s stockholders
at a special meeting to be held before the end of the year. Proxy
materials describing the plan of liquidation will be mailed to
stockholders in advance of the special meeting. A vote of two-thirds of
the outstanding shares is required.
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 INSUREDMAY LOSE VALUENO BANK GUARANTEE
NOT
A DEPOSITNOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
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Contacts:
Montgomery Street Income Securities, Inc.
For stockholder inquiries:
Computershare
Shareowner Services, 877-437-3938
or
For media inquiries:
Atlantic
Fund Administration
Gino Malaspina, 855-422-4512
Source: Montgomery Street Income Securities, Inc.
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