Weekly Closed-End Fund Roundup: CEF Rebound, ASG Offering Restarts

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Includes: ACV, AKP, ASA, BCV, BGY, BHV, CCA, CCD, CEM, CHI, CHY, CMU, CTR, CXE, DDF, DEX, DHY, EGF, EGIF, EVG, FAX, FCO, GCV, GGM, GIM, GLO, GLQ, GLU, GLV, GRF, IID, IIF, JCE, KF, LDF, MCR, MGF, MHE, MIN, MMT, MSF, NBB, NBD, OXLC, RCS, RIV, TE, TEI, VCF
by: Stanford Chemist
Summary

22 CEF sectors out of 31 positive on price, and 12 out of 31 sectors positive on NAV.

ASG rights offering recommences.

DEX tender offer expiring this week, EGF announces tender.

BHV and FCO are sells.

Please note: This article was first released to CEF/ETF Income Laboratory members 2 weeks ago, so data may be out of date. Please check latest data before making investment decisions.

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. Most of the information has been sourced from CEFInsight or the Closed-End Fund Center. I will also link to some articles from Seeking Alpha that I have found for useful reading over the past week. The searchable tag for this feature is "cildoc". Data are taken from the close of Friday October 19, 2018.

Weekly performance roundup

22 out of 31 sectors were positive on price (up from 0 last week), and the average price return was 0.31% (up from -2.78%). U.S. real estate (+2.30%), covered call (+1.23%), and utilities (+1.23%) led, while Latin America equity (-1.98%), high yield (-1.49%) and Asia equity (-1.27%) lagged.

(Source: Stanford Chemist, CEFConnect)

12 out of 31 sectors were positive on NAV (up from 0 last week), while the average NAV return was 0.02% (up from -2.10%).

(Source: Stanford Chemist, CEFConnect)

The sector with the highest premium is multisector income (0.38%), while the sector with the highest discount is New Jersey munis (-16.14%). The average sector discount is -8.11% (up from -8.39% last week).

(Source: Stanford Chemist, CEFConnect)

U.S. covered call showed the largest premium/discount increase (+1.37%), while high-yield showed the largest premium/discount decline (-0.96%). The average change in premium/discount was 0.27% (down from -0.81% last week).

(Source: Stanford Chemist, CEFConnect)

The sector with the highest average 1-year z-score is U.S. covered call (+0.23) while the sector with the lowest z-score is limited duration (-2.42). The average z-score is -0.83 (up from -1.06 last week).

(Source: Stanford Chemist, CEFConnect)

The sector with the highest yield is global income (12.12%), followed by global growth & income (12.10%), MLPs (10.02%), global equity dividend (9.93%) and emerging market income (9.91%). Discounts and z-scores for the sectors are included for comparison. The average sector yield is 7.47% (up from 7.32% last week).

(Source: Stanford Chemist, CEFConnect)

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.

Ticker

P/D decrease

Yield

P/D

z-score

Price change

NAV change

(DDF)

-5.64%

10.09%

2.90%

0.8

-4.78%

0.44%

(ASA)

-3.55%

0.42%

-11.51%

3.2

1.07%

5.11%

(DHY)

-3.46%

9.72%

-5.36%

-2.9

-4.26%

-0.76%

(MHE)

-3.25%

4.59%

-10.99%

-2.7

-3.53%

0.00%

(GLU)

-3.16%

6.15%

-4.01%

1.7

-1.35%

1.90%

(GGM)

-2.98%

10.45%

0.24%

-0.6

-3.07%

-0.19%

(GCV)

-2.94%

9.09%

0.00%

-1.3

-2.85%

0.00%

(KF)

-2.86%

0.67%

-12.24%

-1.2

0.38%

3.65%

(VCF)

-2.85%

4.27%

-2.43%

-0.4

-2.84%

0.00%

(IIF)

-2.83%

13.88%

-12.10%

-0.9

-1.93%

1.24%

(Source: Stanford Chemist, CEFConnect)

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.

Ticker

P/D increase

Yield

P/D

z-score

Price change

NAV change

(BHV)

21.44%

3.83%

35.93%

6.3

18.72%

0.00%

(GRF)

6.24%

6.74%

-13.26%

-0.2

3.03%

-4.38%

(RCS)

5.03%

9.32%

32.24%

0.8

3.81%

-0.14%

(OXLC)

4.41%

14.75%

10.02%

1.1

4.17%

0.00%

(BCV)

4.26%

4.57%

-10.56%

1.2

4.79%

-0.20%

(IID)

4.02%

10.61%

-5.01%

-1.5

4.26%

-0.16%

(CCD)

3.82%

10.01%

0.86%

0.5

3.36%

-0.55%

(ACV)

3.81%

8.77%

1.56%

1.1

2.93%

-0.92%

(FCO)

3.73%

9.85%

5.70%

3.3

3.14%

-0.49%

(JCE)

3.71%

7.84%

0.14%

0.4

2.83%

-0.98%

(Source: Stanford Chemist, CEFConnect)

Recent corporate actions

These are from the last month and are quoted from Closed-End Fund Center, Morningstar, or CEFInsight (email alerts); any new news in the past week has a bolded date:

October 18, 2018 | Gabelli Convertible and Income Securities Fund Completes Successful Rights Offering, Raises $22.7 Million. The Board of Directors of The Gabelli Convertible and Income Securities Fund (NYSE:GCV) (the "Fund") is pleased to announce the completion of its transferable rights offering (the "Offering" or "Offer") in which the Fund will issue approximately 4.3 million shares of common stock, totaling $22.7 million. Pursuant to the Offer, the Fund issued one transferable right (a "Right") for each share of common stock of the Fund to shareholders of record (record date shareholders) as of September 5, 2018. Holders of Rights were entitled to purchase one share of common stock by submitting three Rights and $5.25 per share (the subscription price). The Offer expired at 5:00 PM Eastern Time on October 17, 2018 and the Rights no longer trade on the New York Stock Exchange. All of the common stock subscribed for will be issued on or about October 22, 2018.

Upcoming corporate actions

These are from the last month and are quoted from Closed-End Fund Center, Morningstar, or CEFInsight (email alerts); any new news in the past week has a bolded date:

October 22, 2018 | Shareholders Approve Nuveen Closed-End Fund Merger. Shareholders of the Nuveen Build America Bond Opportunity Fund (NYSE: NBD) have approved the fund's merger into Nuveen Build America Bond Fund (NYSE: NBB). The acquiring fund will be renamed the Nuveen Taxable Municipal Income Fund and will continue to trade under the ticker NBB. Subject to the satisfaction of certain customary closing conditions, the merger is expected to become effective before the market open on November 12, 2018. As previously announced, NBB will eliminate its contingent term provision and change its principal investment policy from a policy of investing at least 80 percent of assets in Build America Bonds to a policy of investing at least 80 percent of its assets in taxable municipal securities. These changes will become effective on the closing date of the merger. Additionally, the Board has authorized NBB to conduct a tender offer of up to 20 percent of the shares of. NBB (including shares received by NBD shareholders in the merger) and expects to announce the tender offer within 60 days, with payment for common shares purchased in the tender offer to take place within 120 days, of the closing of the merger.

October 18, 2018 | Liberty All-Star® Growth Fund, Inc. Recommences Rights Offering. Liberty All-Star® Growth Fund, Inc. (NYSE: ASG) (the "Fund") has announced that it had recommenced its previously announced offering to shareholders of record as of September 17, 2018 of non-transferable rights entitling them to subscribe for one additional share for every three shares held (the "Primary Subscription"), with the right to subscribe for additional shares not subscribed for by others in the Primary Subscription. A supplement to its prospectus has been filed with the U.S. Securities and Exchange Commission ("SEC") reflecting the event described below and recommencement of the rights offering. In addition, the Fund has extended the rights offering until October 31, 2018.

October 17, 2018 | BlackRock Enhanced Government Fund, Inc. Announces Upcoming Repurchase Offer. Today, BlackRock Enhanced Government Fund, Inc. (the "Fund") (NYSE: EGF, CUSIP: 09255K108) announced that the annual offer to repurchase up to 10% of its outstanding shares of common stock (the "Shares") from its stockholders (the "Repurchase Offer") will commence on October 24, 2018. Under the terms of the Repurchase Offer, the Fund is offering to purchase up to 10% of its Shares from stockholders at an amount per Share equal to the Fund's net asset value ("NAV") per Share, less a repurchase fee of 2% of the value of the Shares repurchased, calculated as of the close of regular trading on the New York Stock Exchange on November 27, 2018. The Repurchase Offer is scheduled to expire on November 26, 2018, unless extended, with payment for the Shares repurchased to be made on or before December 4, 2018. Shares validly tendered and accepted will not be eligible for any distributions declared, paid or distributed in respect of a record date on or after November 29, 2018. The Fund has established a record date of October 10, 2018 solely for the purpose of identifying stockholders eligible to receive Repurchase Offer materials.

October 15, 2018 | Liberty All-Star® Growth Fund, Inc. Temporarily Suspends and Recommences Rights Offering. Liberty All-Star® Growth Fund, Inc. (NYSE: ASG) (the "Fund") has announced that, as of the close of the market on October 11, 2018, it had temporarily suspended its previously announced offering to shareholders of record as of September 17, 2018 of non-transferable rights entitling them to subscribe for one additional shares for every three shares held (the "Primary Subscription"), with the right to subscribe for additional shares not subscribed for by others in the Primary Subscription. The Fund expects to file a supplement to its prospectus with the U.S. Securities and Exchange Commission ("SEC") no later than October 15, 2018 reflecting the event described below and will reinstate the rights offering immediately upon filing of the prospectus supplement. In addition, the Fund will extend the rights offering until October 31, 2018. The Fund had, as required by the SEC's registration form, undertaken to suspend the offering until it amended its prospectus relating to the offering if, subsequent to September 17, 2018, the effective date of the Fund's registration statement relating to the offering, the Fund's net asset value ("NAV") declined more than ten percent from its NAV as of September 17, 2018. The NAV of the Fund as of October 11, 2018 was $5.65, representing a decline of 10.2% from its net asset value of $6.29 as of September 17, 2018. As indicated above, the Fund expects to file a supplement updating information in the prospectus with the SEC no later than October 15, 2018 and will recommence the rights offering immediately upon filing the prospectus supplement. The Fund will notify shareholders of this decline by means of the prospectus supplement and thereby permit them to cancel any exercise of subscription rights they made prior to suspension of the offering on October 11, 2018.

October 4, 2018 | Morgan Stanley Emerging Markets Fund, Inc. (NYSE: MSF) (the "Fund") announced that, after considering the recommendation of the Fund's investment adviser, the Board of Directors of the Fund determined that it would be in the best interest of stockholders of the Fund to approve an Agreement and Plan of Reorganization by and between the Fund and Morgan Stanley Institutional Fund, Inc., on behalf of its series Emerging Markets Portfolio ("MSIF Emerging Markets"), pursuant to which substantially all of the assets and liabilities of the Fund would be transferred to MSIF Emerging Markets and stockholders of the Fund would become stockholders of MSIF Emerging Markets, receiving shares of common stock of MSIF Emerging Markets equal to the value of their holdings in the Fund (the "Reorganization"). Upon execution of the Reorganization, shares of the Fund would cease to trade on the New York Stock Exchange; however, after the Reorganization, shares of MSIF Emerging Markets may be purchased and redeemed at the option of stockholders at net asset value on a daily basis, subject to the terms described in the registration statement for MSIF Emerging Markets. The Reorganization is subject to certain conditions, including stockholder approval and customary closing conditions. The Reorganization of the Fund will be submitted for stockholder approval at a special meeting of stockholders (the "Meeting") scheduled to be held on January 7, 2019, and any adjournments or postponements thereof, to stockholders of record on November 6, 2018. Further information about the Reorganization will be included in a proxy statement/prospectus expected to be mailed to stockholders in the fourth quarter of 2018.

September 18, 2018 | RiverNorth Opportunities Fund, Inc. (RIV) (the "Fund") announces that its Board of Directors has authorized and set the terms of an offering to the Fund's stockholders of rights to purchase additional shares of common stock of the Fund. In this offering, the Fund will issue transferable subscription rights ("Rights") to its stockholders of record as of October 4, 2018 (the "Record Date" and such stockholders, "Record Date Stockholders") allowing the holder to subscribe for new shares of common stock of the Fund (the "Primary Subscription"). Record Date Stockholders will receive one Right for each share of common stock held on the Record Date. For every three Rights held, a holder of Rights may buy one new share of common stock of the Fund. Record Date Stockholders who exercise their Rights will not be entitled to distributions payable during October 2018 on shares issued in connection with the Rights Offering. The Rights are expected to be listed and tradable on the New York Stock Exchange ("NYSE") under the ticker: RIV RT. Record Date Stockholders who fully exercise all Rights initially issued to them in the Primary Subscription will be entitled to buy those shares of common stock that are not purchased by other Record Date Stockholders. The subscription price per share of common stock will be determined based upon a formula equal to 95% of the reported net asset value or 95% of the market price per share of common stock, whichever is higher on the Expiration Date (as defined below). Market price per share of common stock will be determined based on the average of the last reported sales price of a share of common stock on the NYSE for the five trading days preceding (and not including) the Expiration Date. The subscription period will expire on November 1, 2018, unless extended by the Board (the "Expiration Date").

August 9, 2018 | Delaware Enhanced Global Dividend and Income Fund (NYSE: DEX) (the "Fund") established the dates for the tender offer announced in late May 2018. The Fund's issuer tender offer will purchase for cash up to 3,165,810 of its shares, representing 20 percent of its issued and outstanding shares of beneficial interest, without par value, will commence on Friday, September 28, 2018, and will expire, unless extended, at 11:59 p.m., New York City time, on Friday, October 26, 2018. Subject to various terms and conditions described in offering materials to be distributed to shareholders: (1) purchases will be made at a price per share equal to 98% of the Fund's net asset value per share as of the close of trading on the first business day after the expiration of the offer; and (2) if more shares are tendered than the amount the Board has authorized to purchase, the Fund will purchase a number of shares equal to the offer amount on a prorated basis.

Recent activist or other CEF news

These are from the last month and are quoted from Closed-End Fund Center, Morningstar, or CEFInsight (email alerts); any new news in the past week has a bolded date:

October 22, 2018 | ClearBridge MLP and Midstream Total Return Fund Inc. Reaffirms Name Change and Amended Investment Policy. ClearBridge MLP and Midstream Total Return Fund Inc., formerly known as ClearBridge Energy MLP Total Return Fund Inc. (the "Fund") (NYSE:CTR), reaffirmed that effective today, Monday, October 22, 2018, the Fund's name has been changed to ClearBridge MLP and Midstream Total Return Fund Inc. The Fund's shares of common stock will continue to trade under its existing New York Stock Exchange symbol "CTR". The Fund's CUSIP, 18469Q108, will not change. In addition, also effective today, October 22, 2018, under normal market conditions the Fund invests at least 80% of its managed assets in energy master limited partnerships ("MLPs") and energy midstream entities. Previously, the Fund's investment policy provided that at least 80% of its managed assets be invested in energy MLPs. The name change and investment policy amendment should allow additional investment flexibility by permitting greater investments in midstream entities organized as C corporations. Management does not anticipate any material change in the portfolio construction in the near term because of these changes.

October 22, 2018 | ClearBridge MLP and Midstream Fund Inc. Reaffirms Name Change and Amended Investment Policy. ClearBridge MLP and Midstream Fund Inc., formerly known as ClearBridge Energy MLP Fund Inc. (the "Fund") (NYSE: CEM), reaffirmed that effective today, October 22, 2018, the Fund's name has been changed to ClearBridge MLP and Midstream Fund Inc. The Fund's shares of common stock will continue to trade under its existing New York Stock Exchange symbol "CEM". The Fund's CUSIP, 184692101, will not change. In addition, also effective today, October 22, 2018, under normal market conditions the Fund invests at least 80% of its managed assets in energy master limited partnerships ("MLPs") and energy midstream entities. Previously, the Fund's investment policy provided that at least 80% of its managed assets be invested in energy MLPs. The name change and investment policy amendment should allow additional investment flexibility by permitting greater investments in midstream entities organized as C corporations. Management does not anticipate any material change in the portfolio construction in the near term because of these changes.

October 22, 2018 | The Latin American Discovery Fund, Inc. Announces Additional Information Regarding Liquidation of the Fund. The Latin American Discovery Fund, Inc. (NYSE: LDF) (the "Fund") announced today that it will close its share register books at the close of business on November 16, 2018 (the "Effective Date") and that trading of the Fund's stock on the NYSE will be suspended before the market opens on November 19, 2018. The proportionate interests of stockholders in the assets of the Fund shall be fixed on the basis of their respective holdings at the close of business on the Effective Date, and the Fund expects to make a final liquidating distribution to stockholders as of the Effective Date on or about November 23, 2018.

October 12, 2018 | Bulldog Investors Announces Results of Special Meeting of Stockholders of Alliance California Municipal Income Fund. Bulldog Investors, LLC ("Bulldog") today announced that at a special meeting of stockholders of Alliance California Municipal Income Fund, Inc. (NYSE:AKP) (the "Fund") convened on October 11, 2018, a quorum was present and a proposal to enter into new investment advisory agreements with AllianceBernstein L.P. was not approved. Phillip Goldstein, a principal of Bulldog, commented: "Management has purported to adjourn the meeting 'to allow additional time for the solicitation of proxies.' We do not think it is appropriate to spend stockholder money on a futile attempt to change the outcome."

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

Name Ticker Change Previous Current Yield Discount z-score Coverage Announced Ex-date
Templeton Global Income (GIM) -19.2% 0.0355 0.0287 6.02% -13.62% -1.4 105% 10/1/2018 10/12/2018
Calamos Convertible Opps & Inc (CHI) -15.8% 0.095 0.08 9.22% -1.89% -1.2 58% 10/1/2018 10/11/2018
Calamos Convertible & High (CHY) -15.0% 0.1 0.085 9.16% -0.54% -1 57% 10/1/2018 10/11/2018
BlackRock Enhanced Intl Div (NYSE:BGY) -11.1% 0.038 0.0338 7.61% -11.90% -1.9 61% 10/1/2018 10/12/2018
Templeton Emerging Mkts Income (TEI) -8.7% 0.0745 0.068 8.33% -13.04% -2.2 104% 10/1/2018 10/12/2018
MFS California Municipal Fund (CCA) -7.9% 0.038 0.035 4.23% -15.26% -0.8 125% 10/1/2018 10/16/2018
MFS High Yield Municipal Trust (CMU) -4.7% 0.0215 0.0205 5.62% -6.41% -0.5 110% 10/1/2018 10/16/2018
MFS High Income Municipal (CXE) -4.2% 0.024 0.023 5.80% -8.29% -1 110% 10/1/2018 10/16/2018
EV Short Duration Diversified (EVG) -2.3% 0.0665 0.065 6.07% -13.42% -1.3 89% 10/1/2018 10/23/2018
Clough Global Div and Inc Fund (GLV) -1.8% 0.1141 0.112 11.62% -8.39% -0.7 15% 10/9/2018 10/18/2018
Clough Global Opportunities (GLO) -1.7% 0.1012 0.0995 11.89% -6.60% 1.2 -3% 10/9/2018 10/18/2018
MFS Government Markets Income (MGF) -0.9% 0.02886 0.02861 7.86% -5.82% 0.1 37% 10/1/2018 10/16/2018
Delaware Enhanced Gbl Div&Inc (DEX) -0.8% 0.1002 0.0994 11.34% -5.82% 0.4 39% 10/2/2018 10/11/2018
MFS Intermediate Income (MIN) -0.7% 0.02921 0.029 9.48% -8.93% -1.8 27% 10/1/2018 10/16/2018
Clough Global Equity (GLQ) -0.7% 0.1291 0.1282 10.84% 3.80% 3.3 1% 10/9/2018 10/18/2018
MFS Multi-Market Income (MMT) -0.4% 0.0416 0.04144 9.40% -13.28% -3 50% 10/1/2018 10/16/2018
MFS Charter Income (MCR) -0.3% 0.05838 0.0582 9.20% -11.28% -1.6 49% 10/1/2018 10/16/2018

Cutters

Name Ticker Change Previous Current Yield Discount z-score Coverage Announced Ex-date
Delaware Inv Div & Inc (DDF) 0.9% 0.0968 0.0977 10.09% 2.90% 0.8 26% 10/2/2018 10/11/2018
Eagle Growth & Income Opportun (EGIF) 40.4% 0.057 0.08 6.53% -19.66% -1.9 72% 10/8/2018 10/17/2018

CEF analysis from around Seeking Alpha...

Recommended reads are in bold.

ADS Analytics presents Weekly Fund Wrap: Serious But Stable (Oct. 21)

Alpha Gen Capital presents Get In On One Of The Best Opportunities In The Market Today (Oct. 15), This 8.40% Monthly Yield CEF Is On Sale Now - We Took Advantage (Oct. 19) and A Look A Some Very Attractive Z-Scores (Oct. 19)

Arbitrage Trader presents Weekly Review: Senior Loan CEFs - Big Discounts After A Bad Week For The Sector (Oct. 17), Weekly Review: High-Yield CEFs - Buying Opportunity With Rare Statistical Edge (Oct. 17), Weekly Review: Municipal Bond CEFs - Prices Remain At The Lowest Levels For The Year (Oct. 17), Weekly Review: Master Limited Partnership CEFs - A Rarely Widened Spread Might Be Just A Moment Of Weakness (Oct. 18) and Weekly Municipal Bond CEF Trades: The Fund With The Lowest Z-Score Deserves Attention (Oct. 18)

Dividend Seeker presents PCI: Still My Top Pick From Pimco (Oct. 18)

Nick Ackerman presents CEF UTF: An Attractive Buy (Oct. 15)

*Stanford Chemist presents Why Aren't These Closed-End Funds Getting More Love? Part 3: Bancroft Fund (Oct. 14), Weekly Closed-End Fund Roundup: DEX Tender Offer Live (Oct. 16), The Chemist's Quality CEF Report - September 2018: A Look At Franklin Universal Trust (Oct. 17) and Illogical Pricing In Convertible CEFs, Redux (Oct. 20)

Steven Bavaria presents Grannies Beat Geezers In Total Return, While Income Factory Cash Distribution Reaches 12% (Oct. 15)

*To subscribers: these link to the public version of the article, which you will already have seen in the members section.

Macro/market section

Fear & Greed Trader presents S&P 500 Weekly Update: The Bull Market Is Over. At Least That Is What We Are Being Told (Oct. 20)

Jeff Miller presents Weighing The Week Ahead: Major Market Misperceptions (Oct. 21)

Lance Roberts presents Market Clings To Support (Oct. 21)

Commentary and actionable takeaway

(This is normally exclusive to members of the CEF/ETF Income Laboratory, but has been released to the public as part of my Back to School Free Trial and -20% Discount Promotion)

A lot of CEF news to comment on this week! But first, let's start with the top list of premium gainers and losers. BlackRock Virginia Municipal Bond Trust (BHV) gained 21.44% in premium last week. Yes, that's not a typo! I double-checked and triple-checked and could not find any news that could explain this sudden premium rise. BlackRock's site for BHV shows the fund closing at a 35.93% premium last Friday, so the price and NAV numbers at least should be legitimate.

Yahoo Finance has BHV's average volume at around 3,0000 shares, and last Friday's 8,600 volume could have finally exhausted the pool of available sellers leading to the price to skyrocket upwards by +13%, taking the premium from +20.08% all the way to +35.93%.

Wait, what? Yes, the fund's 20% premium before the spike in price is not a typo either! Incredibly, despite fears of rising rates hitting muni CEFs hard, BHV has been trading at a significant premium for the entire year. In fact, the current premium of 35.93% is the highest since 2008 and is accompanied by a 1-year z-score of +5.9 suggesting extreme overvaluation.

Here's the premium/discount history for the fund since inception. We can see that BHV, for some reason or another, has attracted a very high premium for large swathes of its lifetime.

Does this tiny $24 million Virginia muni fund have some kind of magic allure? To be honest, I'm not seeing it. The fund does perform 24 bps and 89 bps per year better than the peer group over 5 and 10-year time spans at the NAV level, but I'm not sure this justifies the massive premium rise of the fund over the past year.

BHV currently yields 3.83% at market (5.20% at NAV), with 89% coverage. Sell this fund if you can! For the more adventurous, iBorrowDesk shows 100 shares of BHV available to short at a short rate of 12.6%, but keep in mind that without a specific catalyst, this monster premium may survive for a while longer yet.

Another fund whose premium doesn't really make sense is Aberdeen Global Income Fund (FCO). This global income fund gained 3.73% in premium last week and currently sits at a premium of +5.70% and a 1-year z-score of +3.2. FCO has many of the same problems that I highlighted for Aberdeen Asia-Pacific Income Fund (FAX) earlier this month ("Aberdeen Asia-Pacific Income Fund Is Overdue For A Distribution Cut"), such as unsustainable distribution and falling NAV that is lower than in 2008/2009. The current yield is 9.85% on market (10.41% on NAV) with 53% coverage. Remember, a premium increase that comes from a rising price, coupled with a falling NAV, is a big warning sign. FCO is a strong sell right now and to be avoided until the inevitable distribution cut occurs.

Chart

FCO data by YCharts

Liberty All-Star Growth Fund (ASG) gets to restart its non-transferable rights offering after amending its offering prospectus. The offering period has been extended until October 31, 2018. Additionally, due to the temporary suspension of the offering, rightsholders who previously subscribed may elect to withdraw their application. Since the offering is non-transferable, selling the rights is not an option. On that basis, I'd recommend rightsholders to subscribe to take advantage of the ability to purchase the fund at a discount (the formula is the lower of 95% of NAV or 95% of price); one can always sell an equivalent amount of shares of ASG should one not desire additional exposure to the fund. ASG is currently trading at a premium of +2.45%.

The Gabelli Convertible and Income Securities Fund (GCV) closed its right offering last week. The fund will be issuing today approximately 4.3 million shares of at the subscription price of $5.25 per share, totaling $22.7 million. By my calculations, the offering was about 90% subscribed. Because of the fund's falling NAV and premium over the last month, subscribing actually didn't bring much benefits compared to purchasing the fund on the open market. In fact, the subscription price of $5.25 is only 3 cents lower than the fund's current share price of $5.28.

Delaware Enhanced Global Dividend and Income Fund's (DEX) tender offer for 20% of its shares at 98% of NAV will expire this Friday, October 26, 2018. Remember to tender your shares if you own the fund. For those that don't already own the fund currently, the risk-reward for buying the fund for the express purpose of partaking in the tender is not particularly attractive. DEX currently trades at a discount of -5.82%, but as we can see from the chart below, the fund has experienced long periods of history at much greater discounts. Thus, there is the risk of a sudden widening of the discount upon expiry of the tender. (This also means that DEX holders could actually consider selling their entire stake now to harvest the contraction of the discount that the tender offer has induced).

On the topic of tender offers, BlackRock Enhanced Government Fund's (EGF) annual tender offer for 10% of shares at 98% of NAV will commence on Wednesday, October 24, 2018 and is set to expire on November 26, 2018. However, the fund's current discount of -2.90% means that there isn't much alpha to be gained from the tender offer.

No CEF distribution changes announced this week.

Disclosure: I am/we are long THE PORTFOLIO SECURITIES. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.