NZF - Growing CEF Portfolio Income In A Sustainable Way

• The recent CEF market drawdown has made it clear that it is those investors who maintain dry powder reserves that can fully take advantage of current attractive CEF yields.
• Credit markets have a number of features such as varying valuation levels, episodic volatility and mean-reversion which patient income investors can take advantage of.
• By rotating between open-end and closed-end funds, investors can put more resilient capital to work in CEFs at attractive yields.
• We discuss our counter-cyclical strategy of building up drier-powder reserves in open-end funds during periods of expensive valuations.
• And spending them during periods of market volatility such as the one we are going through now - a strategy that allows investors to increase portfolio income without taking on more risk.

For further details see: