HNW - HNW: Changing Managers Still A Solid Hold
2024-07-25 23:39:54 ET
Summary
- Pioneer Diversified High Income Fund, Inc. has delivered a 15.4% total return since our last article, matching the S&P 500.
- Amundi is proposing a management change for HNW, trying to sell its CEF business to Victory Capital, a Texas-based manager.
- The corporate action is subject to shareholders approval, and we would expect a 'sweetener' before agreeing to the proposed amendment.
- HNW's portfolio includes U.S. high yield and catastrophe bonds, with the fund still trading at a discount to NAV.
Thesis
Pioneer Diversified High Income Fund, Inc ( HNW ) is a fixed income closed end fund we have covered in the past. In our previous article, we highlighted the fund's composition, and our preference for the name given its catastrophe bond exposure. We downgraded the name to a pure 'Hold' seven months ago, and the CEF has delivered:
Prior Rating Performance (Seeking Alpha)