JGH - JGH: International Exposure Is Nice And The High Yield Should Allow Outsized Returns

2024-01-26 12:33:14 ET

Summary

• Nuveen Global High Income Fund offers investors a high level of income while diversifying their assets away from the United States.
• The JGH closed-end fund has a 10.27% yield, higher than most domestic fixed-income securities and many domestic junk bond funds.
• The JGH fund's long-term performance has been strong, outperforming both the U.S. Aggregate Bond Index and the JPMorgan EMBI Global Core Index.
• Foreign bonds are likely going to outperform domestic issues over the long term due to foreign countries having the potential for higher yields.
• The fund appears capable of sustaining its distribution and is currently trading at a discount to net asset value.

The Nuveen Global High Income Fund ( JGH ) is a closed-end fund or CEF, that investors can employ to obtain a high level of income from the assets in their portfolios while diversifying their assets away from the United States. This is something that should be appealing to many investors, particularly American ones, due to the simple fact that the majority of Americans have most of their assets invested in this nation. As Americans will also work, run a business, or otherwise derive the majority of their financial support from the American economy, having a substantial percentage of their portfolios invested in this particular nation exposes them to considerable risks in the event of any kind of economic or political problem at home.

This risk can be reduced by ensuring that a certain percentage of their portfolios is invested abroad. In addition, some foreign countries historically have much higher interest rates than the United States, so it is easier to obtain high yields without the risks of leverage....

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