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Weekly Closed-End Fund Roundup: Watch Your Holdings

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Includes: AIF, CIF, DDF, DEX, ECC, EFF, EFR, ERH, ETV, FCT, FFC, FINS, FLC, FMN, FTF, GIM, GLO, GLQ, GLV, IAE, IAF, IFN, IRL, IRR, JHI, JHS, MAV, MCR, MFM, MFV, MGF, MIN, MMT, NAZ, NBB, NCB, NPN, NRGX, NUO, NXC, OIA, PAI, PFD, PFO, PHD, PHK, PML, PPR, PSF, RCG, RMT, RVT, SZC, TSI, VVR
by: Stanford Chemist
Summary

22 out of 31 CEF sectors positive on price and 28 out of 31 sectors positive on NAV this week.

U.S. health/biotech leads while N.Y. munis lag.

PAI is the top premium/discount loser at -6.83%.

This article was first released to CEF/ETF Income Laboratory subscribers 2 weeks ago, so data may be out of date.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, June 21, 2019.

Weekly performance roundup

22 out of 31 sectors were positive on price (up from 21 last week) and the average price return was +0.81% (up from +0.15% last week). The leading gainers were US Health/Biotech Equity (+3.44%), Asia Equity (+2.29%) and US Energy/Resources Equity (+2.16%), while New York Munis (-0.38%) lagged.

(Source: Stanford Chemist, CEFConnect)

28 out of 31 sectors were positive on NAV (up from 10 last week), while the average NAV return was +1.23% (up from -0.09% last week). The top sector by NAV was US Energy/Resources Equity (+3.65%), followed by Emerging Market Equity (+3.09%). The sole losers this week were Senior Loan (-0.11%) and High Yield Munis (-0.06%).

(Source: Stanford Chemist, CEFConnect)

Only two sectors showed premium this week, the highest of the two being Preferreds (+1.54%), while the sector with the highest discount is Non-US Equity (-12.83%). The average sector discount is -6.41% (down from -6.00% last week).

(Source: Stanford Chemist, CEFConnect)

Only 4 sectors showed an increase in premium/discount this week. Pennsylvania Munis showed the largest premium/discount increase (+1.31%), while US Utilities showed the largest premium/discount decline (-1.33%). The average change in premium/discount was -0.39%% (down from +0.23% last week).

(Source: Stanford Chemist, CEFConnect)

The sector with the highest average 1-year z-score is Pennsylvania Munis (+1.68) while the sector with the lowest z-score is Non-US Equity (-0.97). The average z-score is +0.38 (down from +0.53 last week).

(Source: Stanford Chemist, CEFConnect)

The sectors with the highest yields are MLPs (11.45%), global equity dividend (9.97%), Global Growth & Income (9.37%), Emerging Market Income (8.99%) and Covered Call (8.59%). Discounts and z-scores for the sectors are included for comparison. The average sector yield is 7.04% (down from 7.11% 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

(PAI)

-6.83%

4.66%

-1.53%

0.5

-5.67%

0.87%

(SZC)

-6.40%

11.74%

-18.06%

-3.2

-4.45%

3.02%

(PSF)

-4.56%

7.43%

6.64%

0.5

-3.51%

0.62%

(FFC)

-4.34%

6.93%

-1.32%

0.7

-3.68%

0.56%

(PFO)

-4.29%

6.54%

0.00%

-0.5

-3.70%

0.44%

(PML)

-3.15%

5.20%

21.46%

1.4

-2.22%

0.32%

(NRGX)

-3.00%

8.15%

-1.36%

0.0

-0.91%

2.10%

(NYSE:TEAF)

-2.98%

7.05%

-4.35%

0.0

-2.01%

1.05%

(PHK)

-2.78%

9.32%

26.00%

-1.2

-1.37%

0.80%

(ERH)

-2.72%

7.01%

-2.80%

-1.0

-0.93%

1.85%

(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

(NPN)

5.81%

3.26%

-1.71%

3.2

6.42%

0.13%

(IRR)

4.16%

13.18%

8.14%

1.7

7.45%

3.32%

(VVR)

3.18%

5.83%

-9.43%

2.3

3.85%

0.21%

(IAE)

3.12%

8.91%

-7.72%

2.3

6.48%

2.89%

(RCG)

2.56%

%

-16.22%

-0.5

5.44%

2.21%

(PFD)

1.99%

5.97%

9.04%

2.8

2.38%

0.51%

(NYSE:FINS)

1.84%

%

1.89%

0.0

2.00%

0.15%

(ECC)

1.73%

13.35%

25.03%

2.0

1.41%

0.00%

(NBB)

1.70%

5.78%

-1.93%

1.4

2.00%

0.23%

(ETV)

1.69%

9.04%

3.89%

0.0

2.01%

0.35%

(Source: Stanford Chemist, CEFConnect)

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

Nuveen CA Municipal Value 2

(NCB)

-13.0%

0.054

0.047

3.57%

-2.42%

-1.2

103%

6/3/2019

6/13/2019

Pioneer Muni High Inc Adv

(MAV)

-11.8%

0.0425

0.0375

4.22%

-9.89%

-1.6

118%

6/4/2019

6/17/2019

Nuveen OH Quality Muni Income

(NUO)

-8.1%

0.0455

0.0418

3.37%

-11.95%

1.2

108%

6/3/2019

6/13/2019

Federated Premier Muni Income

(FMN)

-7.4%

0.054

0.05

4.39%

-9.70%

0.5

113%

6/10/2019

6/20/2019

Aberdeen Australia Equity

(IAF)

-6.7%

0.15

0.14

10.49%

-9.80%

-2

8%

6/11/2019

6/20/2019

Royce Micro Cap Trust

(RMT)

-5.6%

0.18

0.17

8.38%

-11.85%

-1

0%

6/3/2019

6/12/2019

India Fund Inc

(IFN)

-4.8%

0.62

0.59

11.25%

-10.42%

0.1

0%

6/11/2019

6/20/2019

Invesco Muni Income Opps Trust

(OIA)

-3.7%

0.0328

0.0316

4.96%

0.53%

-0.5

97%

6/3/2019

6/13/2019

MFS Municipal Income

(MFM)

-3.6%

0.028

0.027

4.64%

-5.29%

1.1

115%

6/3/2019

6/18/2019

Royce Value Trust

(RVT)

-3.4%

0.29

0.28

8.17%

-11.61%

-1

6%

6/3/2019

6/12/2019

Clough Global Equity

(GLQ)

-2.2%

0.1151

0.1126

10.50%

-6.06%

-0.6

0%

6/7/2019

6/14/2019

Clough Global Opportunities

(GLO)

-2.1%

0.0903

0.0884

11.33%

-13.01%

-2

2%

6/7/2019

6/14/2019

Apollo Tactical Income Fund In

(AIF)

-2.0%

0.102

0.1

8.17%

-12.51%

-0.3

110%

6/6/2019

6/14/2019

Clough Global Div and Inc Fund

(GLV)

-1.7%

0.1041

0.1023

10.97%

-9.83%

-0.4

19%

6/7/2019

6/14/2019

EV Senior Floating Rate

(EFR)

-1.3%

0.077

0.076

6.61%

-11.13%

-0.3

101%

6/3/2019

6/20/2019

EV Floating-Rate Inc Plus Fund

(EFF)

-1.2%

0.084

0.083

6.44%

-13.34%

-0.6

96%

6/3/2019

6/20/2019

JH Income Securities

(JHS)

-1.2%

0.1522

0.1504

4.24%

-6.89%

0.3

35%

6/3/2019

6/12/2019

MFS Intermediate High Income

(CIF)

-1.1%

0.02035

0.02012

9.66%

-2.72%

-0.1

60%

6/3/2019

6/18/2019

Templeton Global Income

(GIM)

-1.1%

0.0354

0.035

6.66%

-11.03%

0.9

91%

6/3/2019

6/13/2019

MFS Special Value Trust

(MFV)

-1.0%

0.04621

0.04573

9.58%

2.66%

0.9

29%

6/3/2019

6/18/2019

Delaware Inv Div & Inc

(DDF)

-0.8%

0.0925

0.0918

7.94%

26.99%

1.7

22%

6/4/2019

6/20/2019

Franklin Limited Duration Inco

(FTF)

-0.6%

0.0873

0.0868

10.79%

-7.12%

0.2

50%

6/18/2019

6/27/2019

MFS Multi-Market Income

(MMT)

-0.5%

0.04167

0.04148

8.60%

-8.53%

1

51%

6/3/2019

6/18/2019

MFS Charter Income

(MCR)

-0.4%

0.05871

0.05848

8.62%

-8.95%

1.4

50%

6/3/2019

6/18/2019

Delaware Enhanced Gbl Div&Inc

(DEX)

-0.2%

0.092

0.0918

11.04%

-9.85%

0

48%

6/4/2019

6/20/2019

MFS Intermediate Income

(MIN)

-0.1%

0.02861

0.02858

9.03%

-6.40%

1.3

30%

6/3/2019

6/18/2019

(Source: Stanford Chemist, CEFConnect)

Boosters

Name

Ticker

Change

Previous

Current

Yield

Discount

z-score

Coverage

Announced

Ex-date

MFS Government Markets Income

(MGF)

0.2%

0.02847

0.02854

7.40%

-3.14%

2.3

36%

6/3/2019

6/18/2019

New Ireland Fund

(IRL)

0.3%

0.1107

0.111

4.96%

-16.67%

-0.4

-7%

6/11/2019

6/20/2019

Voya Prime Rate Trust

(PPR)

1.9%

0.027

0.0275

6.93%

-12.98%

0.1

91%

6/3/2019

6/7/2019

Pioneer Floating Rate Trust

(PHD)

4.2%

0.06

0.0625

7.15%

-12.80%

-0.4

107%

6/4/2019

6/17/2019

Nuveen AZ Quality Muni Income

(NAZ)

5.5%

0.0415

0.0438

4.06%

-12.14%

0.4

105%

6/3/2019

6/13/2019

First Trust Senior FR Inc II

(FCT)

6.0%

0.0625

0.06625

6.66%

-12.86%

-0.5

91%

6/20/2019

7/1/2019

Nuveen CA Select Tax-Free

(NXC)

6.6%

0.041

0.0437

3.63%

-6.53%

0.9

103%

6/3/2019

6/13/2019

TCW Strategic Income

(TSI)

7.4%

0.0768

0.0825

5.51%

-2.73%

1.9

32%

6/14/2019

6/27/2019

JH Investors Trust

(JHI)

26.6%

0.2458

0.3111

7.68%

-10.30%

-0.8

32%

6/3/2019

6/12/2019

(Source: Stanford Chemist, CEFConnect)

CEF analysis from around Seeking Alpha...

ADS Analytics presents NDP: Yieldy Fund In A Yield Desert - Oasis Or Mirage? (Jun. 17), Term CEFs: A Good Mix Of Risk Control And Potential Yield Boost (Jun. 20)

Alpha Gen Capital presents A Fresh Look At Option CEFs From Eaton Vance (Jun. 20), May Stock Swoon, Munis Rally: An Update On Why Muni CEFs Are In Your Portfolio (Jun. 21)

Arbitrage Trader presents Weekly Review: High-Yield CEFs - Slight Increase For The Benchmark In The Week Before The Fed Meeting (Jun. 18), Weekly Review: Municipal Bond CEFs - The Sector Looks Ahead To The Next U.S. Federal Reserve Meeting (Jun .19), Weekly Review Of Preferred Stock CEFs: The Leading Benchmark Of The Preferred Stock Sector Reached A New High (Jun. 19)

Dividend Seeker presents PCI: Opportunity Remains (Jun. 20)

George Spritzer presents Nuveen AMT-Free Quality Municipal Income Fund: A Good Solid Closed-End Fund Holding (Jun. 14)

Mark J. Grant presents Closed-End Funds: The Least Appreciated Asset Class (Jun. 19)

Nick Ackerman presents UTF: Market Jitters Continue To Blast This CEF Higher (Jun. 17)

Power Hedge presents FEN: Bet On Midstream Growth With This Closed-End Fund (Jun. 19)

*Stanford Chemist presents MFD Cuts Distribution By -16.7%, But I Still Prefer MGU (Jun. 14), Weekly Closed-End Fund Roundup: Upcoming LOR Tender (Jun. 18), The Chemist's Quality Closed-End Fund Report - May 2019 (Jun. 19)

*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: There Is One Strategy That Continues To Work In This Secular Bull Market; 'Stay The Course' (Jun. 22)

Jeff Miller presents Weighing The Week Ahead: Can A U.S./China Truce Boost The Global Economy? (Jun. 23)

Commentary and actionable takeaway

The biggest premium/discount loser this week was Western Asset Investment Grade Income Fund (PAI), which lost -6.83% in premium/discount valuation. Two weeks ago, the fund's premium hit +6.18%. While not an enormous premium, there isn't really any reason an investment grade CEF should deserve such a valuation. Indeed, the fund's premium has only exceeded that level a few times, and only briefly, in its 25-year history. (The last time was a +10% premium (!) in September 2017 where we again made the right call to get out of this CEF: see "Here's Why You Shouldn't Pay $1.10 For A Dollar Of Investment Grade Bond Assets").

Over the past year, PAI's premium has gone on a bit of a roller-coaster ride. A good swing trading candidate if you can time it!

Here's the 1-year chart of the price and NAV of the fund. We can see how the price has fluctuated above and below the NAV over the past several months. The fund's current -1.53% discount still makes it slightly overvalued, in my opinion.

Chart

Data by YCharts

As another example of why it pays to monitor your holdings, check out the third biggest premium/discount loser this week, Cohen & Steers Select Preferred and Income Fund (PSF) which lost -4.56% in valuation. PSF is a nice fund to hold for sure, although we still prefer the Flaherty & Crumrine funds for their superior performance, but what explains its +11.83% premium reached two weeks ago which was an all-time high? Beats me!

PSF's current premium of +6.64% still makes it overvalued, in my opinion. Why not consider Flaherty & Crumrine Total Return Fund (FLC) (which we own) at its -3.36% discount? The two funds have returned similarly at the NAV level over the past several months, even though PSF had performed much better on price thanks to its expanding premium.

Chart

Data by YCharts

The above two examples are simple illustrations of why it pays to monitor your CEF holdings constantly. By swapping out of overvalued funds, you could gain the equivalent of months or even years of distributions. Remember: closed-end fund valuation matters!

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.