EMB - EDF: This Fund Has Fixed Some Of Its Problems But The Price Remains An Issue
2024-06-10 10:02:02 ET
Summary
- The Virtus Stone Harbor Emerging Markets Income Fund offers a high level of income with a 12.88% yield, higher than its peers.
- The fund's share price performance over the past few years has been very disappointing, but the distribution has mostly made up for it.
- The fund's allocation to Argentinean debt has decreased, making it somewhat safer. It is uncertain whether recent reforms have improved the country's risk profile over the long term, though.
- The fund appears to be fully covering the distribution and its net asset value per share has risen during the current fiscal year.
- The valuation remains extremely expensive and the fund's performance does not really justify this.
The Virtus Stone Harbor Emerging Markets Income Fund ( EDF ) is a closed-end fund that provides an intriguing opportunity for investors who are looking to achieve a high level of income from the assets in their portfolios. The fund manages to do pretty well at this task, as its 12.88% yield is much higher than that of any other emerging market debt closed-end fund that is currently available:
| Fund Name |
| Morningstar Classification |
| Current Yield |
| Virtus Stone Harbor Emerging Markets Income Fund |
| Fixed Income-Taxable-Emerging Market Income |
| 12.88% |
| Morgan Stanley Emerging Markets Debt Fund ( MSD ) |
| Fixed Income-Taxable-Emerging Market Income |
| 11.52% |
| Templeton Emerging Markets Income Fund ( TEI ) |
| Fixed Income-Taxable-Emerging Market Income |
| 10.58% |
| Western Asset Emerging Markets Debt Fund ( EMD ) |
| Fixed Income-Taxable-Emerging Market Income |
| 10.76% |
| Morgan Stanley Emerging Markets Domestic Debt Fund ( EDD ) |
| Fixed Income-Taxable-Emerging Market Income |
| 7.59% |