Montgomery Street Income Securities, Inc. Announces Liquidation

SAN FRANCISCO--()--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 INSURED MAY LOSE VALUE NO BANK GUARANTEE
NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

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

Release Summary

Montgomery Street Income Securities, Inc. Announces Liquidation (MTS)

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