NDMO - Weekly Closed-End Fund Roundup: February 19 2023

Summary

• 0 out of 22 closed-end fund sectors positive on price and 3 out of 22 sectors positive on NAV last week.
• KIO rights offering results.
• MLPs are the most discounted CEF sector.

Author’s note: This article was released to CEF/ETF Income Laboratory members on February 21, 2023. Please check latest data before investing.

The Weekly Closed-End Fund Roundup will be put out at the start of each week to summarize recent price movements in closed-end fund [CEF] sectors in the last week, as well as to highlight recently concluded or upcoming corporate actions on CEFs, such as tender offers. Data is taken from the close of Friday, February 17th, 2023 .

Weekly performance roundup

0 out of 22 sectors were positive on price (down from 1 last week) and the average price return was -1.48% (down from -1.12% last week). The lead gainer was U.S. Equity (-0.09%) while California Munis lagged (-3.16%).

3 out of 22 sectors were positive on NAV (up from 0 last week), while the average NAV return was -1.17% (up from -1.66% last week). The top sector by NAV was Global Equity (+0.31%) while the weakest sector by NAV was California Munis (-2.84%).

The sector with the highest premium was Limited Duration (+2.72%), while the sector with the widest discount is MLPs (-13.96%). The average sector discount is -5.40% (down from -5.10% last week).

The sector with the highest premium/discount increase was Sector Equity (+0.52%), while Emerging Market Income (-2.52%) showed the lowest premium/discount decline. The average change in premium/discount was -0.28% (down from +0.20% last week).

The sector with the highest average 1-year z-score is Investment Grade (+1.14), while the sector with the lowest average 1-year z-score is Single-state Munis (-0.78). The average z-score is +0.24 (down from +0.34 last week).

The sectors with the highest yields are Senior Loans (+11.23%), Multisector Income (+10.74%), and Emerging Market Income (+10.69%). Discounts are included for comparison. The average sector yield is +7.84% (up from +7.76% last week).

Individual CEFs that have undergone a significant decrease in premium/discount value over the past week, coupled optionally with an increasing NAV trend, a negative z-score, and/or are trading at a discount, are potential buy candidates.

Conversely, individual CEFs that have undergone a significant increase in premium/discount value in the past week, coupled optionally with a decreasing NAV trend, a positive z-score, and/or are trading at a premium, are potential sell candidates.

Recent corporate actions

These are from the past month. Any new news in the past week has a bolded date:

February 17, 2023 | KKR Income Opportunities Fund Announces the Results of Its Rights Offering. KKR Income Opportunities Fund ( KIO ) (the “Fund”) today announced the preliminary results of its transferable rights offering (the “Offer”). The Offer commenced on January 23, 2023 and expired on February 16, 2023 (the “Expiration Date”). The Offer entitled the rights holders to subscribe for up to an aggregate of 6,780,105 common shares of beneficial interest of the Fund (“Common Shares”). The subscription price for the Common Shares to be issued was $10.75 per Common Share, which was determined based on a formula equal to 82% of the Fund’s net asset value (“NAV”) per Common Share at the close of trading on the New York Stock Exchange (“NYSE”) on the Expiration Date which was greater than the formula of 92.5% of the average of the last reported sales price of a Common Share on the NYSE on the Expiration Date and each of the four (4) immediately preceding trading days. The Offer was over-subscribed. The Common Shares subscribed for will be issued promptly after completion and receipt of all shareholder payments and the pro-rata allocation of Common Shares in respect of the over-subscription privilege. [ Rights offering announcement ]

February 16, 2023 | Delaware Enhanced Global Dividend and Income Fund Announces Final Results of Tender Offer. Today, Delaware Enhanced Global Dividend and Income Fund (the “Fund”), a New York Stock Exchange–listed closed-end fund trading under the symbol “DEX,” announced the final results of its tender offer for up to 3,186,291 of its common shares (“Common Shares”), representing up to thirty percent of its issued and outstanding Common Shares, without par value. The offer expired at 5:00 p.m., New York City time, on Friday, February 10, 2023 . Based on a count by Computershare Trust Company, N.A., the depositary for the tender offer, approximately 4,212,892 Common Shares, or approximately 39.67% of the Fund’s Common Shares outstanding, were tendered. The Fund has accepted 3,186,291 shares (subject to adjustment for fractional shares) for cash payment at a price equal to $8.89 per share. This purchase price is 98% of the Fund’s net asset value per share of $9.07 as of the close of regular trading on the New York Stock Exchange on February 13, 2023, the pricing date stated in the Offer to Purchase. Because the total number of Common Shares tendered exceeds the number of Common Shares offered to purchase, all tendered Common Shares are subject to pro-ration in accordance with the terms of the Offer to Purchase. Under final pro-ration, 75.64% of the Common Shares tendered will be accepted for payment, subject to adjustment for fractional shares. Following the purchase of the tendered shares, the Fund will have approximately 7,434,680 Common Shares outstanding. [ Preliminary results announcement ] [ Tender announcement ]

January 31, 2023 | RiverNorth Capital and Income Fund, Inc.* Announces Final Results of Rights Offering. RiverNorth Capital and Income Fund, Inc. ( RSF ) (the “Fund”) today announced the final results of its transferable rights offering (the “Offering”). The Fund will issue a total of 1,047,000 new shares of common stock as a result of the Offering, which closed on January 27, 2023 (the “Expiration Date”). The subscription price of $15.84 per share in the Offering was established on the Expiration Date based on a formula equal to 90% of the reported net asset value per share of common stock. Gross proceeds received by the Fund, before any expenses of the Offering, are expected to total approximately $16.6 million. The Offering was oversubscribed and the over-subscription requests exceeded the over-subscription shares available. Accordingly, the shares issued as part of the over-subscription privilege of the Offering will be allocated pro-rata among record date stockholders who submitted over-subscription requests based on the number of rights originally issued to them by the Fund. This press release shall not constitute an offer to sell or constitute a solicitation of an offer to buy.

Upcoming corporate actions

These are from the past month. Any new news in the past week has a bolded date:

December 22, 2022 | Delaware Investments® Dividend and Income Fund, Inc., Delaware Enhanced Global Dividend and Income Fund, and Delaware Ivy High Income Opportunities Fund Announce Date of Reorganizations. Today, the Board of Directors/Trustees of Delaware Investments Dividend and Income Fund (NYSE: “ DDF ”), Delaware Enhanced Global Dividend and Income Fund(NYSE: “ DEX ”), and Delaware Ivy High Income Opportunities Fund (NYSE: “ IVH ”) announced that the anticipated closing date of the reorganization of DDF and DEX into abrdn Global Dynamic Dividend Fund (NYSE: “ AGD ”) and the reorganization of IVH into abrdn Income Credit Strategies Fund (NYSE: “ ACP ”) (together, the “Reorganizations”), will each be completed by the open of business on the New York Stock Exchange on Monday, March 13, 2023, subject to the satisfaction of customary closing conditions. To facilitate the Reorganizations, all shares of DDF, DEX, and IVH will cease trading on the New York Stock Exchange as of market close on Friday, March 10, 2023.

December 22, 2022 | Macquarie Global Infrastructure Total Return Fund Inc. Announces Date of Reorganization Into abrdn Global Infrastructure Income Fund. Today, Macquarie Global Infrastructure Total Return Fund Inc. (the “Fund”), a New York Stock Exchange (NYSE)-listed closed-end fund trading under the symbol ( MGU ), announced that the anticipated closing date of the reorganization of the Fund into abrdn Global Infrastructure Income Fund, a NYSE-listed closed-end fund trading under the symbol ( ASGI ) (the “Reorganization”), will be completed by the open of business on the NYSE on Monday, March 13, 2023, subject to the satisfaction of customary closing conditions. To facilitate the Reorganization, all shares of the Fund will cease trading on the NYSE as of market close on Friday, March 10, 2023.

November 9, 2022 | Eaton Vance Closed-End Funds Announce Proposed Merger. The Boards of Trustees of Eaton Vance Tax-Managed Buy-Write Strategy Fund ( EXD ) (the Acquired Fund) and Eaton Vance Tax-Managed Buy-Write Opportunities Fund ( ETV ) (the Acquiring Fund) have approved a proposal for the Acquired Fund to merge with and into the Acquiring Fund. The proposed merger is subject to approval by Acquired Fund shareholders at a Special Meeting of Shareholders scheduled for Thursday, February 2, 2023 . A proxy statement/prospectus containing information about the meeting and the proposed merger will be mailed to the Acquired Fund’s shareholders of record as of November 21, 2022. No action is needed by shareholders of the Acquiring Fund. Each Fund is a diversified closed-end management investment company sponsored and managed by Eaton Vance Management. Each Fund is listed on the New York Stock Exchange. The Acquired Fund has the same investment objectives and substantially the same investment policies and restrictions as the Acquiring Fund. Additional information regarding the proposed merger will be contained in the proxy statement/prospectus. The merger is currently expected to be completed in the first or second quarter of 2023, subject to required shareholder approvals and the satisfaction of applicable regulatory requirements and customary closing conditions. If the merger is approved, each Acquired Fund shareholder will be issued common shares of the Acquiring Fund at an exchange ratio based on the Funds’ respective net asset values per share. Following the merger, the Acquiring Fund will continue to be managed in accordance with its existing investment objectives and strategies.

Recent activist or other CEF news

These are from the past month. Any new news in the past week has a bolded date:

January 9, 2023 | BlackRock Closed-End Fund Share Repurchase Program Update. BlackRock Advisors, LLC (“BlackRock”) released today share repurchase activity for certain BlackRock-advised closed-end funds (the “Funds”) during the quarter ended December 31, 2022. The Funds have authorized open market share repurchase programs (the “Repurchase Programs”) pursuant to which each Fund may repurchase, through November 30, 2023, up to 5% of its outstanding common shares in open market transactions. The Repurchase Programs seek to enhance shareholder value by purchasing Fund shares trading at a discount from their net asset value (“NAV”) per share, which could result in incremental accretion to a Fund’s NAV. Below is a summary of share repurchase activity over this past quarter and since the inception of each Fund’s Repurchase Program:

Summary of share repurchase activity during the most recent calendar quarter ended December 31, 2022:

The amount and timing of any repurchases under each Fund’s Repurchase Program will be determined either at the discretion of the Fund’s management or pursuant to predetermined parameters and instructions subject to market conditions. There is no assurance that any Fund will repurchase shares in any particular amounts. A Fund’s repurchase activity will be disclosed in its shareholder report for the relevant fiscal period. Any repurchases made under any Repurchase Program will be made on a national securities exchange at the prevailing market price, subject to exchange requirements and certain volume and timing limitations and other regulations under federal securities laws.

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Distribution changes announced this month

These are sorted in ascending order of distribution change percentage. Funds with distribution changes announced this month are included. Any distribution declarations made this week are in bold. I've also added monthly/quarterly information as well as yield, coverage (after the boost/cut), discount and 1-year z-score information. I've separated the funds into two sub-categories, cutters and boosters.

Cutters

Boosters

For further details see: