PMBPF - FEN: A Promising Energy Income CEF If The Distribution Is Sustainable

• Closed-end funds can offer ways to invest in a diversified portfolio of energy stocks and secure a higher yield than could be obtained otherwise.
• FEN invests mostly in midstream names but there also are some electric utilities in the portfolio.
• The long-term fundamentals for midstream are strong as the global demand for fossil fuels is likely to grow over the next two decades.
• The fund may be over distributing, which is not sustainable over any kind of extended period due to the NAV destruction.
• The fund is trading at a huge discount, which may be due to the history of value destruction.

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