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John Cole Scott  

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  • UNII And Earnings Trends: 95% Predictive For Closed-End Bond Fund Dividend Cuts [View article]
    The only good measure of UNII is a 12-24 month trend chart as it has some seasonality and fund sponsor specific nuances. If you can't get to that data then I would only focus on earnings coverage, which is easier to see and digest, in my opinion, with the past 2-3 reporting periods for a fund.
    Jul 24, 2015. 10:04 AM | Likes Like |Link to Comment
  • UITs Continue To Surge Ahead As Assets Surpass $100 Billion [View article]
    We have UIT with SmartTrust focusing on BDCs. You can track the current series (2) here: http://bit.ly/1DLJmrf


    Their full list: http://bit.ly/1DLJoPI 
    Mar 2, 2015. 05:04 PM | Likes Like |Link to Comment
  • Closed-End Fund Advisors: Fourth Quarter 2014 CEF/BDC Review And 2015 Outlook [View article]
    Charts/slides are on our blog post dated Jan 9th, 2015: http://www.cef-blog.com
    Jan 21, 2015. 02:31 PM | Likes Like |Link to Comment
  • Closed-End Fund Advisors: Fourth Quarter 2014 CEF/BDC Review And 2015 Outlook [View article]
    You can download the 50 slides off our blog: http://www.cef-blog.com
    Jan 20, 2015. 10:27 AM | Likes Like |Link to Comment
  • Closed-End Fund Advisors: Fourth Quarter 2014 CEF/BDC Review And 2015 Outlook [View article]
    Yes, they are very different, but cannot be BDCs (though look and feel more like a BDC) because of the good asset 70% requirement.) NHF is also a funny animal in the loan grouping as it is over 60% equity now and acts more like a hedge fund that pure loan fund.
    Jan 19, 2015. 03:34 PM | Likes Like |Link to Comment
  • Closed-End Fund Advisors: Fourth Quarter 2014 CEF/BDC Review And 2015 Outlook [View article]
    Here are the BDCs (equity and debt) that as of Jan 16th were trading bellow their 3Q14 NAV (reported 10/27/14 to 12/10/14 ... MVC is a 7/31/14 NAV and SAR is a 11/30/14 NAV)

    ABDC, ACAS, ACSF, AINV, ARCC, BDCV, BKCC, CMFN, CPTA, CSWC, EQS, FSC, FSFR, FSIC, FULL, GAIN, GARS, GLAD, GSVC, HCAP, HRZN, KCAP, MCC, MCGC, MVC, OFS, OHAI, PFLT, PNNT, PSEC, RAND, SAR, SCM, SLRC, SUNS, SVVC, TAXI, TCRD, TICC, TINY, TPVG, WHF

    The BDCs at Premiums to NAV/Book = FDUS, GBDC, HTGC, MAIN, MRCC, MFC, TCAP, TCPC, TSLX
    Jan 19, 2015. 03:31 PM | 3 Likes Like |Link to Comment
  • Closed-End Fund Advisors: Fourth Quarter 2014 CEF/BDC Review And 2015 Outlook [View article]
    BDCs are not currently covered at CEFConnect or CEFA.com. Lipper is working on it, M* says they have no current plans to integrate the info for investors.

    We have spent most of the past 6 months collecting and digesting BDC data. we are up to producing 100 data points a week and will continue to dig into their quarterly info and press releases to learn the sector.
    Jan 19, 2015. 03:25 PM | 1 Like Like |Link to Comment
  • Closed-End Fund Advisors: Fourth Quarter 2014 CEF/BDC Review And 2015 Outlook [View article]
    We found that most investors or financial advisors did not have the perspective on what went on in the CEF Universe during the quarter. I think if you read the article you see that I think MLPs, Sr Loan, Emg Market and Debt-BDCs are very cheap and Muni are moderately cheap. If you should own them I have no idea as I don't know what you needs, risks or timeline is for your portfolio.
    Jan 19, 2015. 03:21 PM | 3 Likes Like |Link to Comment
  • Closed-End Fund Advisors: Fourth Quarter 2014 CEF/BDC Review And 2015 Outlook [View article]
    Only two BDCs show any RoC in the past 12 months (none show Roc in the past 3 months). BKCC has the NAV total return well in excess of Yield. MCGC has about 1/3 of its yield RoC and a 1 year NAV TR of -0.3%. RoC is less of an issue for BDCs.
    Jan 19, 2015. 03:18 PM | Likes Like |Link to Comment
  • Closed-End Fund Advisors: Fourth Quarter 2014 CEF/BDC Review And 2015 Outlook [View article]
    Tom, glad you found it useful, we keep the same format so each quarter you can follow the changes. This article is also intended as a companion for the slides from the presentation. They are a free download from our blog post for the research call replay.
    Jan 19, 2015. 03:07 PM | Likes Like |Link to Comment
  • Interview With Brian Mitts, Chief Operating Officer Of NexPoint Advisors [View article]
    Sorry, I somehow missed this comment, way back when.

    Owning NHF is a decision to trust the manager. He has a lot of his money invested in the fund and they trade at a discount close to -15% much of the time and a 1 year -13% average discount.

    We find you don't do traditional analysis and metrics on the fund. Currently reported holdings may be very different that what James actually holds.
    Jan 8, 2015. 01:39 PM | Likes Like |Link to Comment
  • Interview With Brian Mitts, Chief Operating Officer Of NexPoint Advisors [View article]
    Yes, if you collect income and don't pay it out it add to the UNII balance for a CEF - Undistributed Net Investment Income.

    All stated UNII is not always real cushion as GAAP and Tax account for RICs is not uniform. We like to use UNII trend to see when funds pull or add to the balance.
    Jan 8, 2015. 01:31 PM | Likes Like |Link to Comment
  • Closed-End Fund Advisors: Third-Quarter 2014 CEF/BDC Review And Outlook [View article]
    Email will go out to subscribers / our email list on Tuesday to register for the live webcast Thursday, then we will produce article and submit to SA.
    Jan 4, 2015. 12:48 PM | Likes Like |Link to Comment
  • Investing In Business Development Companies (BDCs) [View article]
    I think reminding people that a BDC has the investor protections of the 1940 Investment Company Act is important as many people we have talked to over the past year about BDCs have commented on BDCs like they are operating companies, REITs or MLPs which are actively managed assets... but do not have the investor protections of The 40 Act, like an independent board of directors, and generally not being allowed in affiliate transactions, etc.

    I understand your confusion, but there is only one traditional CEF that buys BDCs (FGB) and there are 51 closed-ended management companies that electi to be treated by the BDC regulations of 1980. Yet there is only $34.3B in market capitalization and 4-7 BDC IPOs per year the past 5 years. It would have been great if people started calling the Business Development Company Funds in 1980, but they did not.

    As a wider audience of investors and investment professionals potentially use BDCs for a portion their investment allocation I think it is better to have them understand that the investment is a fund vs. what people have called them for years, "companies". My final point would be if you are having this discussion you are not the investor/advisor that needs the detail explained.

    Dkostek, I would say your clarification on BDCs is partially true, but if you read the BDC 1980 act, the key provisos in my opinion are the 70% US Private or $250M market cap, the ability to charge incentive fees, slightly higher leverage levels and potential access to SBIC facilities.
    Nov 26, 2014. 04:00 PM | 3 Likes Like |Link to Comment
  • Closed-End Fund Advisors: Third-Quarter 2014 CEF/BDC Review And Outlook [View article]
    FS - I know there has been more general market volatility in recent months, but if you look at 12 month St Dev for the major CEF groups: US Equity, Non US Equity, Specialty Equity, Taxable Bond and Muni Bond we see the following data, where we have rights to use/show since June 2012.

    Muni Bond Funds are at 54 month trailing volatility lows (Peak of 15... down to 9),

    Taxable bond funds are just barely off their lows (peak of 18 ... down to 9.5),

    Specialty Equity and bumped up a little bit from just under 13 to just over 13, but were 24 in June of 2012.

    Non US Equity Funds are pretty low on a recent historical basis (peak of over 27, down to 16-17 and just off a recent low of 15.

    US Equity Funds are up to 16 for a recent low of 15 (peak of almost 27, but has been between 15-17 since 12/31/12.
    Oct 22, 2014. 08:39 AM | Likes Like |Link to Comment
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