DNP: Recovering From Rate Pressures As Premium Shifts To A Historically Narrow Level

2025-03-05 04:30:29 ET

Summary

• DNP Select Income Fund is a closed-end fund with infrastructure exposure, primarily utility exposure, being its largest sleeve.
• The fund's premium to NAV has come down to a relatively narrow level compared to its historical level, even as the fund saw some significant recovery over the last year.
• One of the more notable aspects of DNP is the regular monthly distribution has remained consistent for nearly 3 decades now.

Written by Nick Ackerman, co-produced by Stanford Chemist

DNP Select Income Fund ( DNP ) is a closed-end fund that provides exposure to infrastructure investments. The largest focus is more specifically on the utility exposure this fund carries, with that allocation at over 50% of the fund. Within that sleeve, it includes electric, gas and water utilities. The fund has historically traded at a premium to its net asset value per share, though we've seen that premium come down even despite the underlying portfolio seeing a recovery from a higher interest rate environment....

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