KIO - KIO: A Credit CEF With A Strong Alpha Track Record

• Low credit yields and an unlikely tailwind of even lower yields suggest that beta returns for credit CEFs over the medium term will be below their historical levels.
• One way to compensate for low beta returns is to tilt to funds with a history of strong alpha generation, particularly if they can be acquired at a reasonable valuation.
• We take a look at KIO which has a strong track record of delivering alpha and looks attractive on a number of other fronts.
• KIO does have a low-quality allocation and is more suitable for investors with a constructive view on the macro and market environments.

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