PCF - PCF: This Unique CEF Has Improved A Lot Over The Past 6 Months

2024-05-06 03:35:05 ET

Summary

• The High Income Securities Fund offers a high current yield of 11.64%, which compares reasonably well to most of its peers.
• The fund's share price has been relatively flat over the past few months, but most of its total returns come from the distributions that are paid out.
• The fund's asset allocation includes a significant weighting in other closed-end funds, and it has recently reduced its holdings in business development companies.
• The fund has improved its distribution coverage and actually managed to fully cover it during the first half of the current fiscal year.
• The fund is trading at an enormous discount to net asset value.

The High Income Securities Fund ( PCF ) is a closed-end fund that many income-focused investors employ as a method of achieving their goals of receiving a significant amount of current income from their assets. On the surface, the fund certainly appears to do very well here, as its 11.64% current yield is one of the highest yields available in the market today. The fund's yield compares quite well to that of its peers:

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