Montgomery Street Income Securities (NYSE:MTS) is a closed-end bond fund that appears to a be a reasonable value now for conservative income-oriented investors. It invests in a diversified bond portfolio across the spectrum- about 50% in U.S. Governments and Agencies, about 40% in corporates and the remainder in mortgage bonds.
In the next rebalancing (March 21), MTS is being added to the CEFX closed-end fund index that is used by the PCEF exchange-traded fund.
Here are some recent stats on MTS:
Ticker: MTS Montgomery Street Income Securities
- Total Net Assets: 173 MM
- Expense ratio: 0.77%
- Discount to NAV: -8.4%
- Distribution rate: 4.34% (quarterly dividends)
- Modest Leverage: 9.64%
- Turnover Ratio: 87% (annualized)
Full Disclosure: Long MTS.