PDO - MIN: This Fund's Portfolio Cannot Support The Current Yield
2024-05-20 09:55:50 ET
Summary
- MFS Intermediate Income Fund offers a 9.19% yield, but it is not attractive compared to other options in the market.
- The fund's performance has been poor over the past three years, with a decline of 29.84%.
- The fund's distribution does not seem to be sustainable, as it is not covering its distributions with net investment income.
- The fund engages in very little trading activity, so it is not supplementing coupon income with capital gains to maintain its distributions.
- The fund trades discounted on net asset value, but investors should be aware that this fund looks a lot like a liquidating trust.
The MFS Intermediate Income Fund ( MIN ) is a closed-end fund, or CEF, that income-focused investors can purchase as a method of earning a high level of income from the assets in their portfolios. The fund manages to do fairly well at this task, as it boasts a 9.19% yield right now. While this yield may seem impressive to those investors who are used to the incredibly low yields that persisted over the past decade, it is actually not particularly attractive compared to peers:
| Fund Name |
| Morningstar Classification |
| Current Yield |
| MFS Intermediate Income Trust |
| Fixed Income-Taxable-Global Income |
| 9.19% |
| DoubleLine Income Solutions Fund ( DSL ) |
| Fixed Income-Taxable-Global Income |
| 10.48% |
| First Trust/abrdn Global Opportunity Income Fund ( FAM ) |
| Fixed Income-Taxable-Global Income |
| 11.13% |
| Nuveen Global High Income Fund ( JGH ) |
| Fixed Income-Taxable-Global Income |
| 9.83% |
| PIMCO Dynamic Income Opportunities Fund ( PDO ) |
| Fixed Income-Taxable-Global Income |
| 11.66% |
| Western Asset Global Corporate Defined Opportunity Fund ( GDO ) |
| Fixed Income-Taxable-Global Income |
| 9.94% |