HIE - HIE: Moving To Hold On This Term Fund (Rating Downgrade)
2024-02-10 00:02:15 ET
Summary
- The Miller/howard High Income Equity fund has seen substantial gains since its Buy rating in 2023, driven by a narrowing of its discount to NAV and underlying equities delta.
- The fund is set to terminate in 2024, with the potential for a 1-year extension if approved by the Board.
- The current discount to NAV reflects a neutral point, and we expect little further gains from this risk factor until termination date.
- The wider equities markets are euphoric, with a healthy pull-back due in our base case.
Thesis
We started covering Miller/howard High Income Equity (HIE) CEF in 2023 with a Buy rating as outline here . The fund is up substantially since our rating, with the main drivers being the risk factors outlined in the original article:
Original Rating (Seeking Alpha)