Weekly Closed-End Fund Roundup: EIM Tender Completed

|
Includes: AIF, CAF, CCA, CEE, CGO, CIF, CMU, CXE, CXH, DDF, DEX, DSU, EEA, EIM, EVG, EVV, GGM, GGO, GIM, GLO, GLQ, GLV, GNT, IAE, IGA, IGD, IHD, IID, MCR, MFD, MFM, MFV, MGF, MIE, MIN, MMT, MPV, NDP, NHF, NJV, NNY, RCS, TEI, TWN, VBF, VPV, XFLT
by: Stanford Chemist
Summary

7 out of 31 CEF sectors positive on price and 11 out of 31 sectors positive on NAV this week.

EIM first tender offer completed with 26% proration.

MFD cuts by -17%.

This article was first released to CEF/ETF Income Laboratory subscribers 2 weeks ago, so data may be out of date.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 is taken from the close of Friday May 17, 2019.

Weekly performance roundup

7 out of 31 sectors were positive on price (down from 8 last week) and the average price return was -0.49% (up from -0.97% last week). The leading gainers were MLPs (+1.38%), New Jersey munis (+0.83%) and California munis (+0.80%), while emerging market equity (-3.42%) lagged.

(Source: Stanford Chemist, CEFConnect)

11 out of 31 sectors were positive on NAV (up from 7 last week), while the average NAV return was -0.27% (up from -0.93% last week). The top sector by NAV was U.S. real estate (+0.89%) followed by MLPs (+0.80%) while the weakest sector was emerging market equity (-1.81%).

(Source: Stanford Chemist, CEFConnect)

The sector with the highest premium is multisector income (+1.54%), while the sector with the highest discount is other non-U.S. equity (-12.78%). The average sector discount is -6.29% (down from -6.03% last week).

(Source: Stanford Chemist, CEFConnect)

New Jersey munis showed the largest premium/discount increase (+0.58%), while emerging market equity showed the largest premium/discount decline (-1.46%). The average change in premium/discount was -0.20% (down from -0.03% last week).

(Source: Stanford Chemist, CEFConnect)

The sector with the highest average 1-year z-score is New Jersey munis (+1.93) while the sector with the lowest z-score is other non-U.S. equity (-0.68). The average z-score is +0.53 (down from +0.63 last week).

(Source: Stanford Chemist, CEFConnect)

The sectors with the highest yields are MLPs (10.79%), global equity dividend (9.97%), global growth & income (9.72%), emerging market income (9.23%) and covered call (8.60%). Discounts and z-scores for the sectors are included for comparison. The average sector yield is 7.11% (up from 7.04% 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

(NHF)

-5.36%

13.14%

-23.63%

-4.0

-7.03%

-0.50%

(MFD)

-4.56%

10.80%

-6.91%

-0.9

-5.00%

-0.35%

(EEA)

-3.63%

3.95%

-16.58%

-0.8

-3.32%

0.90%

(TEAF)

-3.56%

6.73%

-2.17%

0.0

-3.27%

0.25%

(GNT)

-3.27%

11.32%

-9.56%

-0.5

-3.81%

-0.34%

(CAF)

-3.04%

8.22%

-13.15%

0.7

-3.35%

0.04%

(CXE)

-2.98%

5.00%

-6.15%

0.1

-3.08%

0.00%

(CEE)

-2.81%

4.09%

-12.21%

0.7

-1.20%

1.96%

(RCS)

-2.79%

7.72%

34.89%

-0.4

-2.16%

-0.14%

(TWN)

-2.73%

4.04%

-14.41%

0.3

-6.90%

-3.93%

(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

(NDP)

6.84%

19.23%

20.69%

2.6

5.45%

-0.53%

(XFLT)

5.98%

9.52%

3.84%

1.3

5.75%

-0.34%

(MPV)

3.17%

6.79%

16.99%

1.4

2.78%

0.00%

(DDF)

2.96%

8.07%

26.73%

2.2

1.55%

-0.82%

(GGM)

2.65%

10.35%

5.84%

1.0

1.59%

-0.95%

(MIE)

2.63%

9.55%

-5.10%

1.5

2.65%

-0.20%

(CGO)

2.32%

9.31%

9.24%

0.7

1.74%

-0.42%

(NNY)

2.19%

3.55%

0.50%

2.0

2.22%

0.00%

(NJV)

2.17%

3.93%

-9.90%

2.6

2.61%

0.13%

(GGO)

1.97%

5.01%

-6.06%

-0.2

-0.31%

-2.41%

(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:

May 17, 2019 | Eaton Vance Municipal Bond Fund Announces Preliminary Results Of Tender Offer. Eaton Vance Municipal Bond Fund (EIM) (the "Fund") announced today the preliminary results of its tender offer for up to 10% or 8,969,613 of its outstanding common shares of beneficial interest. The tender offer expired at 5:00 P.M. Eastern Time on May 17, 2019. Based on preliminary information provided by American Stock Transfer & Trust Company, the depositary for the tender offer, approximately 33,920,082 shares were properly tendered. In accordance with the terms and conditions of the tender offer, because the number of shares tendered exceeds the number of shares offered to purchase, the Fund will purchase shares from tendering shareholders on a pro-rata basis (disregarding fractional shares). The purchase price of properly tendered shares is 98% of the Fund's net asset value per share calculated as of the close of regular trading on the New York Stock Exchange (NYSE) on May 17, 2019, which is equal to $13.374 per share. These numbers are subject to adjustment and should not be regarded as final. The Fund currently expects to announce the final results of the tender offer on or about May 20, 2019.

April 16, 2019 | BlackRock Debt Strategies Fund, Inc. Announces Final Results of Tender Offer. BlackRock Debt Strategies Fund, Inc. (DSU) announced today the final results of the Fund’s tender offer (the “Tender Offer”) for up to 5% of its outstanding shares of common stock (the “Shares”). The Tender Offer, which expired at 5:00 p.m. Eastern time on April 15, 2019, was oversubscribed. Therefore, in accordance with the terms and conditions of the Tender Offer, the Fund will purchase Shares from all tendering stockholders on a pro rata basis, after disregarding fractions, based on the number of Shares properly tendered (“Pro-Ration Factor”). The final results of the Tender Offer are provided in the table below.

Number of SharesTendered

Number ofTendered Sharesto be Purchased

Pro-Ration Factor

Purchase Price*

Number ofOutstandingShares afterTender Offer

21,792,955 2,636,959 12.10137% $11.9854 50,102,225

* Equal to 98% of the Fund's net asset value per share as of April 16, 2019 (the business day immediately following the expiration date of the Tender Offer). The Fund will purchase the Shares it has accepted for payment as promptly as practicable.

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:

April 11, 2019 | NexPoint Strategic Opportunities Fund Announces Rights Offering. NexPoint Strategic Opportunities Fund (NYSE: NHF) (the "Fund"), today announced the commencement of a non-transferable rights offering to purchase additional shares of common stock of the Fund (the "Offering").

The Fund is issuing non-transferable rights ("Rights") to its common shareholders of record as of April 29, 2019 (the "Record Date" and such shareholders, "Record Date Shareholders"). Record Date Shareholders will receive one Right for each common share held on the Record Date. The Rights will entitle the Record Date Shareholders to purchase one new share of common stock for every three Rights held (1 for 3). The Rights will be mailed to Record Date Shareholders approximately two business days after the Record Date.

Record Date Shareholders who fully exercise their Rights will be entitled to subscribe for additional common shares of the Fund that remain unsubscribed as a result of any unexercised Rights by Record Date Shareholders. In addition, the Fund in its sole discretion may elect to issue additional common shares in an amount up to 25% of the common shares issued in the primary subscription.

The subscription price per common share will be determined based upon a formula equal to the lesser of (1) 95% of the reported net asset value on May 22, 2019 (the "Expiration Date"), or (2) 95% of the average of the last reported sales price of the Fund's common shares on the New York Stock Exchange ("NYSE") on the Expiration Date and on each of the four trading days preceding the Expiration Date.

Important Upcoming Dates:

Record Date:

April 29, 2019

Subscription Period:

April 30, 2019 to May 22, 2019

Expiration Date

May 22, 2019

March 27, 2019 | Eaton Vance Municipal Bond Fund Announces Firm And Conditional Tender Offers. Eaton Vance Municipal Bond Fund (EIM) (the "Fund") today announced that its Board of Trustees (the "Board") has authorized a cash tender offer for up to 10% of its outstanding common shares at a price per share equal to 98% of the Fund's net asset value ("NAV") per share as of the close of regular trading on the New York Stock Exchange (NYSE) on the date the tender offer expires (the "Firm Tender Offer"). The Firm Tender Offer is expected to begin on or about April 18, 2019 and expires at 5:00 PM Eastern Time on or about May 17, 2019, unless extended. The pricing date is also expected to be May 17, 2019, unless the Firm Tender Offer is extended.

The Board also authorized the Fund to conduct two conditional cash tender offers to follow the Firm Tender Offer, provided certain conditions are met. Specifically, as soon as reasonably practicable after the Firm Tender Offer closes, the Fund will announce via press release the commencement of a 120-day period. If, during such period, the Fund's common shares trade at an average discount to NAV of more than 6% ("First Trigger Event"), the Fund will conduct an additional tender offer (the "Initial Conditional Tender Offer") beginning within 30 days of the end of the month in which the First Trigger Event occurs. The Initial Conditional Tender Offer will be for up to 5% of the Fund's then-outstanding common shares at 98% of NAV per share as of the close of regular trading on the NYSE on the date the tender offer expires.

If the Initial Conditional Tender Offer occurs, the Fund will announce via press release the commencement of a second 120-day period. If, during such period, the Fund's common shares trade at an average discount to NAV of more than 6% ("Second Trigger Event"), the Fund will conduct an additional tender offer (the "Second Conditional Tender Offer" and, collectively with the Firm Tender Offer and the Initial Conditional Tender Offer, the "Tender Offers") beginning within 30 days of the end of the month in which the Second Trigger Event occurs. The Second Conditional Tender Offer will be for up to 5% of the Fund's then-outstanding common shares at 98% of NAV per share as of the close of regular trading on the NYSE on the date the tender offer expires. The Second Conditional Tender Offer will not commence and the Fund will not announce a second 120-day period unless the Initial Conditional Tender Offer occurs.

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:

March 28, 2019 | Board Approves Changes to Sub-Adviser, Fees, and Strategies for Voya Emerging Markets High Dividend Equity Fund. The Board of Trustees (“the Board”) of Voya Emerging Markets High Dividend Equity Fund (the “Fund”) (IHD) has approved changes to the Fund’s sub-advisory relationship. In connection with these approvals, the investment strategies and portfolio managers of the Fund will change and the Fund’s investment advisory fee rate and expense limit arrangements will be reduced as described below. Each of the foregoing changes will be effective on or about May 6, 2019.

  • The Fund’s Board has appointed Voya Investment Management Co. LLC (“Voya IM” or “Sub-Adviser”) to serve as the sole sub‐adviser to the Fund beginning on May 6, 2019, following the termination of the current sub‐advisory agreement between Voya Investments, LLC (the “Adviser”) and NNIP Advisors B.V.
  • The Fund will maintain its current investment objective of total return through a combination of current income, capital gains, and capital appreciation. The Fund will continue to pursue an option overlay strategy in the same manner as the current strategy. Upon the implementation of the changes, Voya IM will employ a dividend-focused quantitative strategy in selecting equity investments for the Fund. The Sub-Adviser uses an internally developed quantitative computer model to create a target universe of global securities with above-average dividend yields compared to the Index, which the Sub-Adviser believes exhibit stable dividend yields within each geographic region and industry sector.
  • Management fee reduced from 1.25% to 1.15%.

Similar announcements were made for Voya Asia Pacific High Dividend Equity Income Fund (IAE), Voya Global Advantage and Premium Opportunity Fund (IGA), Voya Global Equity Dividend and Premium Opportunity Fund (IGD), and Voya International High Dividend Equity Income Fund (IID), except that IGA did not announce a fee cut.

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

Mac/First Glb Infrastructure

(MFD)

-16.7%

0.3

0.25

10.80%

-6.91%

-0.9

32%

5/13/2019

5/22/2019

Invesco PA Value Muni

(VPV)

-7.8%

0.058

0.0535

5.16%

-9.86%

0.7

93%

5/1/2019

5/14/2019

MFS High Yield Municipal Trust

(CMU)

-5.0%

0.02

0.019

4.99%

-5.77%

0.1

108%

5/1/2019

5/14/2019

Templeton Emerging Mkts Income

(TEI)

-4.6%

0.0701

0.0669

8.00%

-6.78%

1.4

100%

5/1/2019

5/14/2019

MFS High Income Municipal

(CXE)

-4.5%

0.022

0.021

5.00%

-6.15%

0.1

110%

5/1/2019

5/14/2019

MFS California Municipal Fund

(CCA)

-4.3%

0.035

0.0335

3.42%

-6.68%

1.7

122%

5/1/2019

5/14/2019

MFS Investment Grade Muni

(CXH)

-4.1%

0.037

0.0355

4.53%

-11.14%

0.1

111%

5/1/2019

5/14/2019

MFS Municipal Income

(MFM)

-3.4%

0.029

0.028

4.91%

-6.55%

0.7

111%

5/1/2019

5/14/2019

Invesco Bond Fund

(VBF)

-2.9%

0.07

0.068

4.47%

-6.45%

0.9

101%

5/1/2019

5/14/2019

Apollo Tactical Income Fund In

(AIF)

-1.9%

0.104

0.102

8.37%

-12.55%

-0.6

108%

5/1/2019

5/16/2019

(Source: Stanford Chemist, CEFConnect)

Boosters

Name

Ticker

Change

Previous

Current

Yield

Discount

z-score

Coverage

Announced

Ex-date

MFS Intermediate Income

(MIN)

0.1%

0.02859

0.02861

9.13%

-6.70%

1.4

30%

5/1/2019

5/14/2019

MFS Government Markets Income

(MGF)

0.1%

0.02845

0.02847

7.59%

-4.46%

1.9

36%

5/1/2019

5/14/2019

Clough Global Div and Inc Fund

(GLV)

0.7%

0.1034

0.1041

11.35%

-10.20%

-0.4

18%

5/10/2019

5/20/2019

MFS Charter Income

(MCR)

0.9%

0.05817

0.05871

8.95%

-9.95%

0.8

50%

5/1/2019

5/14/2019

MFS Multi-Market Income

(MMT)

1.1%

0.04122

0.04167

8.96%

-10.00%

0.2

51%

5/1/2019

5/14/2019

Clough Global Opportunities

(GLO)

1.1%

0.0893

0.0903

11.25%

-9.24%

0

2%

5/10/2019

5/20/2019

Clough Global Equity

(GLQ)

1.2%

0.1137

0.1151

10.45%

-2.22%

0.9

0%

5/10/2019

5/20/2019

MFS Intermediate High Income

(CIF)

1.4%

0.02006

0.02035

9.47%

1.98%

1.1

59%

5/1/2019

5/14/2019

MFS Special Value Trust

(MFV)

1.8%

0.04541

0.04621

9.78%

3.85%

1.8

29%

5/1/2019

5/14/2019

Delaware Enhanced Gbl Div&Inc

(DEX)

1.8%

0.0904

0.092

11.36%

-10.99%

-0.4

48%

5/7/2019

5/23/2019

Delaware Inv Div & Inc

(DDF)

2.2%

0.0905

0.0925

8.07%

26.73%

2.2

22%

5/7/2019

5/23/2019

EV Limited Duration Income

(EVV)

4.5%

0.067

0.07

6.65%

-12.84%

0.7

99%

5/1/2019

5/10/2019

Templeton Global Income

(GIM)

5.4%

0.0336

0.0354

6.63%

-10.13%

1.9

90%

5/1/2019

5/14/2019

XAI Octagon FR & Alt Inc Term

(XFLT)

5.8%

0.069

0.073

9.52%

3.84%

1.3

85%

5/1/2019

5/14/2019

EV Short Duration Diversified

(EVG)

15.4%

0.065

0.075

6.84%

-11.39%

2.2

76%

5/1/2019

5/23/2019

(Source: Stanford Chemist, CEFConnect)

CEF analysis from around Seeking Alpha...

Alpha Gen Capital presents An Update Of Our Core Income Portfolio (May 17)

ADS Analytics presents Should You Buy Highest-Yielding CEFs? Don't Try This At Home (May 14)

Arbitrage Trader presents Weekly Review Of High-Yield CEFs: First Trust High Income Long/Short Fund Is 8.63%-Yielder Trading At A 12.99% Discount (May 15), Weekly Review: Municipal Bond CEFs - The Strong Uptrend Of The Sector Continues (May 15)

Dilantha De Silva presents EOT: A High Yield Muni Bond Fund For Risk Taking Investors (May 15)

Dividend Seeker presents PNF: Income Stream Cut For First Time Since 2007 (May 10)

Double Dividend Stocks presents 2 High-Yield Tech CEFs, 5.6% To 11%, With No K-1s, Outperforming The Market (May 10)

Douglas Albo presents Equity CEFs: Where's The Beef In The Delaware Dividend & Income Fund? (May 16)

Power Hedge presents Tekla Healthcare: Healthcare Offering Defense And Growth (May 12), RFI: A Well-Diversified Real Estate CEF (May 14), NRO: This Real Estate CEF Is Positioned For A Recession (May 15)

RockEstra Research presents DNP - A Safe Income Fund But Limited Growth And Expensive (May 17)

*Stanford Chemist presents Weekly Closed-End Fund Roundup: NHF Rights Offering Begins (May 13), The Chemist's Quality Closed-End Fund Report: April 2019 (May 16)

*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: Selling Stocks Due To The Tariff Issues May Be Repeating The Same Mistake Made In 2018 (May 18)

Jeff Miller presents Weighing The Week Ahead: What Determines The Investment News Agenda? (May 19)

Lance Roberts presents The Bulls Are Betting On A 'Long Shot' (May 19)

Disclosure: I am/we are long THE PORTFOLIOS. 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.