Seeking Alpha

Wells Fargo Advantage Multi-Sector Income Fund (ERC)

  • Sun, Jun. 28, 12:02 AM
    • Wells Fargo Advantage Multi-Sector Income Fund (NYSEMKT:ERC) declares $0.0967/share monthly dividend, in line with previous.
    • Forward yield 9.09%
    • Payable Aug. 3; for shareholders of record July 15; ex-div July 13.
    | Sun, Jun. 28, 12:02 AM | Comment!
  • Nov. 4, 2013, 1:14 PM
    • Closed-end bond funds had a good October - up 1.89% on a per-share basis while NAV grew 1.96%. This means, however, the sizable discount to NAV for the group of 6.04% failed to budge from a month earlier.
    • "The materially large discounts represents an opportunity for investors to reduce risk," says Stifel's Alexander Reiss and Thomas Boyes. The boost an investor gets when buying a CEF at a discount is what they term the Discount Yield Benefit (DYB), and - among other things - it can make the net cost of owning a CEF cheaper than traditional lower-cost options like passively-managed index funds.
    • Current favorites of the team are: ERC, MCR, MMT, and FT, all of which trade at discounts to NAV of about 12%.
    • Senior loan funds have remained more popular (possibly a danger, according to this analysis) and trade at an average discount of just 3.61%. The team's favorites are FCT, PPR, and VVR.
    | Nov. 4, 2013, 1:14 PM | 1 Comment
ERC vs. ETF Alternatives
Company Description
Wells Fargo Advantage Multi-Sec Inc FD is a closed-end management investment company. It invests in non-investment-grade corporate debt securities, including floating rate high yield bank loan securities, foreign, and emerging market debt securities.