2023-04-03 11:15:33 ET
Summary
- 10 out of 22 CEF sectors positive on price and 12 out of 22 sectors positive on NAV last week.
- Commodities lead while real estate lags.
- FDEU proposes ETF conversion.
- However, shareholder approval is required.
Author’s note: This article was released to CEF/ETF Income Laboratory members on March 27, 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, March 24th, 2023 .
Weekly performance roundup
For CEFs, 10 out of 22 sectors were positive on price (up from four last week) and the average price return was +0.01% (up from -2.32% last week). The lead gainer was Emerging Market Income (+2.73%) while Preferreds lagged (-2.69%).
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12 out of 22 sectors were positive on NAV (up from five last week), while the average NAV return was +0.14% (down from -1.68% last week). The top sector by NAV was Commodities (+3.89%) while the weakest sector by NAV was Real Estate (-4.85%).
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The sector with the highest premium was Sector Equity (-1.76%), while the sector with the widest discount is MLPs (-16.06%). The average sector discount is -8.01% (down from -7.92% last week).
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The sector with the highest premium/discount increase was Emerging Market Income (+1.45%), while Preferreds (-0.97%) showed the lowest premium/discount decline. The average change in premium/discount was -0.08% (up from -1.50% last week).
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The sector with the highest average 1-year z-score is Commodities (+0.52), while the sector with the lowest average 1-year z-score is Single-state Munis (-1.46). The average z-score is -0.72 (up from -0.75 last week).
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The sectors with the highest yields are Senior Loans (+12.49%), Emerging Market Income (+11.87%), and Convertibles (+11.40%). Discounts are included for comparison. The average sector yield is +8.51% (same as last week).
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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.
Fund | Ticker | P/D decrease | Yield | P/D | z-score | Price change | NAV change |
The Central and Eastern Europe Fund | ( CEE ) | -7.45% | 2.98% | 14.29% | -1.3 | -0.74% | -2.46% |
Tekla World Healthcare Fund | ( THW ) | -6.16% | 10.44% | 10.00% | -0.2 | -5.16% | 2.44% |
Nuveen Preferred and Income Fund | ( JPT ) | -5.20% | 8.07% | -9.29% | -1.2 | -7.50% | 0.87% |
Invesco Municipal Inc Opp I | ( OIA ) | -3.95% | 5.17% | 1.11% | 0.3 | -3.77% | -0.45% |
Duff & Phelps Utility and Infra Fund Inc | ( DPG ) | -3.77% | 11.63% | 11.07% | 0.9 | -7.31% | -0.94% |
Cushing® MLP & Infras Total Return | ( SRV ) | -3.76% | 17.83% | -12.76% | 0.8 | -4.33% | 0.00% |
Doubleline Opportunistic Cred | ( DBL ) | -3.76% | 9.36% | -3.56% | -1.0 | -3.56% | -1.88% |
Gabelli Conv Inc Secs | ( GCV ) | -3.70% | 11.16% | 4.12% | -2.3 | -2.49% | -1.28% |
Western Asset Global Corp Defined Opp | ( GDO ) | -3.17% | 9.99% | -5.82% | -1.0 | -3.19% | -0.36% |
NXG NextGen Infrastructure Inc | ( NXG ) | -3.16% | 9.57% | -23.76% | -1.0 | -4.51% | 1.49% |
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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.
Fund | Ticker | P/D increase | Yield | P/D | z-score | Price change | NAV change |
Gabelli Utility Trust | ( GUT ) | 5.60% | 8.52% | 112.69% | 1.6 | 0.57% | -1.69% |
First Trust Dynamic Europe Equity Income | ( FDEU ) | 5.44% | 6.84% | -6.40% | 4.1 | 10.53% | -3.84% |
Eagle Point Credit Company LLC | ( ECC ) | 5.14% | 15.57% | 13.10% | 0.5 | 6.20% | -1.77% |
DNP Select Income | ( DNP ) | 5.04% | 7.04% | 34.11% | 2.0 | 0.45% | -1.04% |
Virtus Stone Harbor Emerging Markets Inc | ( EDF ) | 4.60% | 16.71% | 4.11% | -0.5 | 5.90% | -3.81% |
JHancock Financial Opportunities | ( BTO ) | 4.50% | 9.24% | 10.27% | 1.1 | -0.25% | -1.26% |
RiverNorth/DoubleLine Strategic Opp Fund | ( OPP ) | 4.09% | 14.08% | -11.41% | -1.0 | 4.95% | 0.00% |
Ares Dynamic Credit Allocation Fund | ( ARDC ) | 3.60% | 10.77% | -11.19% | -0.1 | 4.90% | -0.27% |
Highland Global Allocation Fund | ( HGLB ) | 3.01% | 11.14% | -19.70% | 0.3 | 1.46% | -0.92% |
Cornerstone Strategic Value | ( CLM ) | 2.96% | 19.49% | 17.21% | -0.7 | 2.58% | -1.02% |
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New!
From our screener, here are the CEFs with the highest yields, widest discounts, and lowest 1-year z-scores:
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From our screener, here are the CEFs with the best 1-year performance, highest premiums, and highest 1-year z-scores:
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Recent corporate actions
These are from the past month. Any new news in the past week has a bolded date:
March 13, 2023 | abrdn's U.S. Closed-End Funds Announce Closing of Reorganizations.
February 17, 2023 | KKR Income Opportunities Fund Announces the Results of Its Rights Offering .
February 16, 2023 | Delaware Enhanced Global Dividend and Income Fund Announces Final Results of Tender Offer.
Upcoming corporate actions
These are from the past month. Any new news in the past week has a bolded date:
March 22, 2023 | Board of First Trust Dynamic Europe Equity Income Fund Approves Conversion into an ETF.
March 16, 2023 | Special Meeting of Shareholders of Eaton Vance Tax-Managed Buy-Write Strategy Fund.
February 27, 2023 | CBRE Global Real Estate Income Fund (NYSE: IGR) Announces Terms of Rights Offering.
Recent activist or other CEF news
These are from the past month. Any new news in the past week has a bolded date:
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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
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Boosters
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Strategy Statement
Our goal at the CEF/ETF Income Laboratory is to provide consistent income with enhanced total returns . We achieve this by:
- (1) Identifying the most profitable CEF and ETF opportunities.
- (2) Avoiding mismanaged or overpriced funds that can sink your portfolio.
- (3) Employing our unique CEF rotation strategy to " double compound " your income.
It's the combination of these factors that has allowed our Income Generator portfolio to massively outperform our fund-of-CEFs benchmark ETF ( YYY ) whilst providing growing income, too (approx. 10% CAGR).
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Remember, it's really easy to put together a high-yielding CEF portfolio, but to do so profitably is another matter!
For further details see:
Weekly Closed-End Fund Roundup: March 26, 2023