mfs needle post, page-9

the problem is that MFS can't continue to raise capital through its funds whilst its selling assets at half their value to pay off debt which wasn't current but will now become current due to drop in share price and the event of default that it creates.

Hi mate,

MFS are selling their own assets (BBC/MFT shares) to raise cash NOT assets of the MFS Premium Fund.

Remember...MFS's funds management business is the fees and revenue geenrated from managing the Premium Fund. They wouldn't be seling the assets of the Fund itself.

What would be in danger for MFS...is the prospect of funds withdrawlas, thus reducing the prospective fee income that MFS would earn on FUMs. MFS do not raise capital through the fund...they raise investment monies which they look to invest and earn a return on, and then pay a distribution.

Hope that clarifies.

Coop