ECF - NCV: Continued NAV Destruction Plagues This Fund In The New Fiscal Year

2024-05-15 10:56:34 ET

Summary

• Virtus Convertible & Income Fund offers a high yield of 12.83%, which is attractive compared to other funds in the market.
• However, the fund has a history of underperforming its peers and has experienced a decline in its share price.
• The fund's distribution has steadily declined over the years, and it has failed to cover its distribution for the past two years.
• The fund's net asset value has declined since January, suggesting that it is still over-distributing and will almost certainly be forced to cut.
• The fund is trading at a huge discount to net asset value, but there is no reason to buy it today.

The Virtus Convertible & Income Fund ( NCV ) is a closed-end fund, or CEF, that income-focused investors can purchase as a way of achieving their goals of generating a high level of current income from the assets in their portfolios. The fund does manage to do fairly well at this task, as it has a 12.83% yield at the current price. This is obviously fairly attractive compared to most other things in the market, and it also compares pretty well with peer closed-end funds:

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