PGP - PGP: Clearing Up Some Misconceptions About This Hybrid CEF

• Hybrid CEFs have generated very strong returns over the past year due to a strong rally in both equities and fixed-income - the two asset class holdings of this sector.
• PGP has generated one of the highest returns in the sector in NAV terms, while seeing its premium trade at its lower historic range - driving interest in the fund.
• We take a look at some of the many misconceptions about the fund, which makes it difficult for investors to make an informed allocation decision.
• Our allocation takeaway is that PGP is less appealing for investors looking to maximize their allocation to income-producing assets or who want to keep portfolio volatility limited.
• However, it can be appealing to those investors looking to maximize broad market exposure, including both equities and credit securities.

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