DSL - JGH: There Is Nothing Remarkable About This Global Fund

2024-06-25 07:41:32 ET

Summary

• The Nuveen Global High Income Fund offers a 9.76% yield, potentially appealing to income-seeking investors.
• The fund's portfolio performance has not justified its recent share price gains, potentially at risk of a correction.
• With a focus on U.S. assets and lower yield compared to peers, the fund may be less desirable for international diversification.
• The fund is fully covering its distribution and has a lower level of leverage than its peers.
• The fund looks rather expensive compared to historical valuations, although it still trades at a discount.

The Nuveen Global High Income Fund ( JGH ) is a closed-end fund that should appeal to those investors who are looking to earn a high level of income from the assets in their portfolio while adding some diversification to it. I have discussed why achieving some international diversification could be important right now in a few recent articles (see here and here ). The fund currently boasts a 9.76% yield, so it does not disappoint in the income department. After all, this yield is substantially higher than the 1.34% yield of the S&P 500 Index ( SP500 ) or the 3.41% trailing twelve-month yield of the Bloomberg U.S. Aggregate Bond Index ( AGG ). Unfortunately, the yield of the Nuveen Global High Income Fund is lower than that possessed by many of its peers:

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