Weekly Closed-End Fund Roundup: PIMCO Funds Lose Air

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Includes: AIF, BBF, BQH, BTZ, BZM, CIF, DCF, DDF, DEX, DNP, EFF, EFR, FCT, FFA, FFC, FMN, FTF, GDV, GGO, GIM, GLO, GLQ, GLV, IAF, IFN, IRL, JHD, JHI, JHS, JSD, MAV, MCR, MFM, MFV, MGF, MIN, MMT, MNE, MUA, NAZ, NCB, NPN, NTG, NUO, NXC, OIA, PCI, PCN, PDI, PGP, PHD, PHT, PMF, PPR, PTY, RMT, RSF, RVT, TSI, TYG, UTF, VAM
by: Stanford Chemist
Summary

25 out of 31 CEF sectors positive on price and 17 out of 31 sectors positive on NAV this week.

Global equity dividend leads while U.S. real estate lags.

Some PIMCO funds lose air, but nothing to panic about.

This article was first released to CEF/ETF Income Laboratory subscribers 2 weeks ago, so data may be out of date.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 28, 2019.

Weekly performance roundup

25 out of 31 sectors were positive on price (up from 22 last week) and the average price return was +0.47% (down from +0.81% last week). The leading gainers were Global Equity Dividend (+1.71%), Covered Call (+1.56%) and Emerging Market Equity (+1.46%), while US Real Estate (-1.05%) lagged.

(Source: Stanford Chemist, CEFConnect)

17 out of 31 sectors were positive on NAV (down from 28 last week), while the average NAV return was -0.07% (down from +1.23% last week). The top sector by NAV was Asia Equity (+0.81%), followed by MLPs (+3.67%). The weakest sector was U.S. Real Estate (-1.70%)

(Source: Stanford Chemist, CEFConnect)

The sectors with the highest premiums were Preferreds (+2.68%), U.S. Utilities (+1.13%) and Emerging Market Income (+0.64%), while the sector with the highest discount is Other Non-US Equity (-12.43%). The average sector discount is -6.01% (up from -6.41% last week).

(Source: Stanford Chemist, CEFConnect)

The sector with the highest premium/discount increase was U.S. Utilities (+1.90%), while Investment Grade showed the largest premium/discount decline (-1.06%). The average change in premium/discount was +0.47%% (up from -0.39% last week).

(Source: Stanford Chemist, CEFConnect)

The sector with the highest average 1-year z-score is Preferreds (+1.48). Only 3 sectors showed 1-year z-scores below zero this week with lowest being Non-US Equity (-0.45). The average z-score is +0.64 (up from +0.38 last week).

(Source: Stanford Chemist, CEFConnect)

The sectors with the highest yields are MLPs (11.37%), global equity dividend (9.80%), Global Growth & Income (9.36%), Emerging Market Income (8.95%) and Covered Call (8.46%). Discounts and z-scores for the sectors are included for comparison. The average sector yield is +6.99% (down 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

(PCN)

-6.83%

7.89%

14.83%

-0.4

-5.10%

0.54%

(PTY)

-4.86%

8.60%

23.82%

0.9

-3.51%

0.27%

(PMF)

-4.20%

4.95%

9.63%

0.6

-3.47%

0.23%

(TEAF)

-3.99%

7.36%

-8.34%

0.0

-4.12%

0.05%

(NPN)

-3.21%

3.36%

-4.92%

1.9

-3.13%

0.13%

(PDI)

-2.97%

8.23%

13.64%

0.3

-2.16%

0.39%

(PHT)

-2.97%

9.00%

-10.45%

0.1

-3.02%

0.20%

(PCI)

-2.90%

8.24%

1.31%

0.4

-2.45%

0.34%

(PGP)

-2.79%

9.04%

26.09%

-1.3

-1.27%

0.92%

(BBF)

-2.74%

4.94%

0.18%

1.1

-2.66%

0.00%

(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

(GGO)

8.22%

5.00%

-4.93%

0.2

7.86%

-1.46%

(MUA)

4.20%

4.12%

11.14%

2.2

4.00%

0.07%

(UTF)

4.10%

7.17%

-2.30%

1.6

2.53%

-1.78%

(RSF)

3.78%

%

-4.90%

-2.7

4.24%

0.09%

(DCF)

3.52%

6.93%

0.11%

2.2

3.20%

-0.43%

(FFA)

3.40%

7.13%

0.57%

2.7

3.56%

0.06%

(DNP)

3.29%

6.60%

15.57%

-0.8

0.51%

-2.35%

(BZM)

3.24%

3.88%

-3.41%

0.9

3.47%

0.00%

(JSD)

3.18%

7.80%

-5.99%

0.8

3.19%

-0.30%

(FFC)

3.00%

6.74%

1.68%

1.2

2.78%

-0.25%

(Source: Stanford Chemist, CEFConnect)

Recent activist or other CEF news

Any new news in the past week has a bolded date:

June 11, 2019 | Tortoise Energy Infrastructure Corp. and Tortoise Midstream Energy Fund, Inc. Modify Non-Fundamental Policies. Tortoise Energy Infrastructure Corp. (TYG) and Tortoise Midstream Energy Fund, Inc. (NTG) today announced that their Board of Directors approved modifications to certain non-fundamental investment policies of each fund, which will become effective immediately. Consistent with the non-fundamental investment policies in other Tortoise midstream funds, NTG has added a non-fundamental investment policy that permits the investment of up to 20% of the Company’s total assets in debt securities of midstream energy companies, including securities rated below investment grade. TYG and NTG each modified their non-fundamental investment policies that permit the writing of covered call options, increasing the limit from 5% to 10% of total assets.

June 11, 2019 | Nuveen High Income December 2019 Target Term Fund Announces Wind-up Period. The Nuveen High Income December 2019 Target Term Fund (JHD) has entered the wind-up period in anticipation of its termination date. The fund is a “target term” fund that will cease its investment operations and liquidate its portfolio on December 1, 2019 and distribute the net proceeds to shareholders, unless the term is extended for a period of up to six months by a vote of the fund’s Board of Trustees.

During the wind-up period the fund may deviate from its investment objectives and policies, and may invest up to a 100% of its managed assets in high quality, short-term securities. High quality, short-term securities for this fund include securities rated investment grade (BBB-/Baa3 or higher or unrated but judged by the fund’s subadviser to be of comparable quality) with a final or remaining maturity of 397 days or less. Consequently, for the remainder of its term, the fund will invest at least 80% of its managed assets in [i] below investment grade securities; and [ii] short-term investment grade securities that have a final or remaining maturity of 397 days or less, so long as the maturity of any security in the fund does not occur later than June 1, 2020. These expanded investment parameters currently will provide the fund additional flexibility to reinvest the proceeds of matured or called portfolio securities in higher quality, short-term securities. As the fund gets closer to its termination date, the fund will begin to affirmatively transition its remaining below investment grade portfolio holdings to such high quality, short-term securities to enhance its ability to efficiently liquidate its portfolio at termination.

The fund has also completed the process of redeeming and retiring its leverage in anticipation of its termination date. As described in the fund’s prospectus, the general shortening of the time-to-maturity of the fund’s portfolio securities as the fund approaches its termination date, the elimination of leverage, and the repositioning of the fund’s portfolio into higher-quality securities as part of the wind-up process, will tend to reduce interest rate risk and credit risk, and improve portfolio liquidity, but will also tend to reduce amounts of income available to pay as dividends to common shareholders.

June 11, 2019 | Gabelli Dividend & Income Trust to Redeem $50 Million (50%) of Its Series E Auction Rate Preferred Shares. The Gabelli Dividend & Income Trust (GDV) (the “Fund”) will redeem 50% (2,000 of 4,000 shares) of its outstanding Series E Auction Rate Preferred Shares (the “Series E Preferred”). The shares will be redeemed at $25,000 per Series E Preferred (the liquidation preference) plus an amount equal to any accumulated and unpaid dividends and distributions thereon to the redemption date of July 11, 2019 (the “Redemption Price”). From and after the redemption date, the Series E Preferred being redeemed will no longer be deemed outstanding, dividends will cease to accumulate and all the rights of the Series E Preferred shareholders with respect to such Series E Preferred being redeemed will cease, except the right to receive the Redemption Price, without interest.

June 7, 2019 | BlackRock sued over blocking board seats for closed-end funds. Boaz Weinstein’s hedge fund sued BlackRock Advisors, saying the asset manager has prevented outsiders from gaining board seats at several of its funds. Weinstein’s Saba Capital Master Fund accused some BlackRock closed-end funds and their boards of unilaterally adopting corporate governance rules that favor board incumbents, according to the case filed June 4 in Delaware Chancery Court. Saba said that the funds’ bylaws makes it easier for uncontested incumbents to win re-election, while outsider nominees in contested elections have a higher bar to clear. The suit said that the bylaws allow uncontested incumbents to win re-election with a plurality of votes, while dissident nominees in contested elections must get a majority of outstanding shares. “The board’s dual vote standard is an impermissible, self-interested interference with the shareholder right to nominate and elect trustees,” the suit said. Saba sued the BlackRock Credit Allocation Income Trust (BTZ) and the BlackRock New York Municipal Bond Trust (BQH). It also sued the BlackRock Muni New York Intermediate Duration Fund (MNE). BlackRock spokesman Brian Beades said the lawsuit is a move to strengthen Saba’s short-term position so it can make a quick profit selling its stake.

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

3.48%

-0.31%

0

102%

6/3/2019

6/13/2019

Pioneer Muni High Inc Adv

(MAV)

-11.8%

0.0425

0.0375

4.19%

-9.05%

-1.1

118%

6/4/2019

6/17/2019

Nuveen OH Quality Muni Income

(NUO)

-8.1%

0.0455

0.0418

3.36%

-11.98%

1

105%

6/3/2019

6/13/2019

Federated Premier Muni Income

(FMN)

-7.4%

0.054

0.05

4.36%

-9.42%

0.6

113%

6/10/2019

6/20/2019

Aberdeen Australia Equity

(IAF)

-6.7%

0.15

0.14

10.22%

-8.82%

-1.4

8%

6/11/2019

6/20/2019

Royce Micro Cap Trust

(RMT)

-5.6%

0.18

0.17

8.27%

-11.80%

-0.9

0%

6/3/2019

6/12/2019

India Fund Inc

(IFN)

-4.8%

0.62

0.59

11.09%

-10.21%

0.7

0%

6/11/2019

6/20/2019

Invesco Muni Income Opps Trust

(OIA)

-3.7%

0.0328

0.0316

4.95%

0.39%

-0.5

97%

6/3/2019

6/13/2019

MFS Municipal Income

(MFM)

-3.6%

0.028

0.027

4.64%

-5.42%

1

109%

6/3/2019

6/18/2019

Royce Value Trust

(RVT)

-3.4%

0.29

0.28

8.05%

-11.68%

-0.7

6%

6/3/2019

6/12/2019

Clough Global Equity

(GLQ)

-2.2%

0.1151

0.1126

10.56%

-6.37%

-0.6

0%

6/7/2019

6/14/2019

Clough Global Opportunities

(GLO)

-2.1%

0.0903

0.0884

11.35%

-12.78%

-1.6

2%

6/7/2019

6/14/2019

Apollo Tactical Income Fund In

(AIF)

-2.0%

0.102

0.1

8.14%

-12.05%

-0.1

110%

6/6/2019

6/14/2019

MFS Special Value Trust

(MFV)

-1.8%

0.04621

0.04537

9.49%

3.05%

1.1

30%

6/3/2019

6/18/2019

Clough Global Div and Inc Fund

(GLV)

-1.7%

0.1041

0.1023

10.97%

-9.98%

-0.2

19%

6/7/2019

6/14/2019

EV Senior Floating Rate

(EFR)

-1.3%

0.077

0.076

6.65%

-11.61%

-0.5

97%

6/3/2019

6/20/2019

EV Floating-Rate Inc Plus Fund

(EFF)

-1.2%

0.084

0.083

6.39%

-12.69%

-0.2

96%

6/3/2019

6/20/2019

JH Income Securities

(JHS)

-1.2%

0.1522

0.1504

4.19%

-6.04%

1

35%

6/3/2019

6/12/2019

MFS Intermediate High Income

(CIF)

-1.1%

0.02035

0.02012

9.51%

-1.17%

0.3

60%

6/3/2019

6/18/2019

Templeton Global Income

(GIM)

-1.1%

0.0354

0.035

6.58%

-9.79%

1.8

91%

6/3/2019

6/13/2019

Delaware Inv Div & Inc

(DDF)

-0.8%

0.0925

0.0918

7.80%

29.07%

2

22%

6/4/2019

6/20/2019

Vivaldi Opportunities Fund

(VAM)

-0.7%

0.11925

0.11842

9.42%

-1.26%

-0.9

-10%

6/21/2019

7/3/2019

Franklin Limited Duration Inco

(FTF)

-0.6%

0.0873

0.0868

10.82%

-6.50%

0.4

50%

6/18/2019

6/27/2019

MFS Multi-Market Income

(MMT)

-0.5%

0.04167

0.04148

8.54%

-8.19%

1.2

55%

6/3/2019

6/18/2019

MFS Charter Income

(MCR)

-0.4%

0.05871

0.05848

8.61%

-9.04%

1.4

50%

6/3/2019

6/18/2019

Delaware Enhanced Gbl Div&Inc

(DEX)

-0.2%

0.092

0.0918

11.13%

-10.89%

-0.3

48%

6/4/2019

6/20/2019

MFS Intermediate Income

(MIN)

-0.1%

0.02861

0.02858

8.88%

-5.39%

2.6

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

7.49%

-4.79%

0.8

36%

6/3/2019

6/18/2019

New Ireland Fund

(IRL)

0.3%

0.1107

0.111

4.95%

-16.64%

-0.4

2%

6/11/2019

6/20/2019

Voya Prime Rate Trust

(PPR)

1.9%

0.027

0.0275

6.93%

-12.82%

0.3

91%

6/3/2019

6/7/2019

Pioneer Floating Rate Trust

(PHD)

4.2%

0.06

0.0625

7.02%

-11.06%

0.8

107%

6/4/2019

6/17/2019

Nuveen AZ Quality Muni Income

(NAZ)

5.5%

0.0415

0.0438

4.02%

-11.57%

0.7

103%

6/3/2019

6/13/2019

First Trust Senior FR Inc II

(FCT)

6.0%

0.0625

0.06625

6.60%

-11.72%

0.1

91%

6/20/2019

7/1/2019

Nuveen CA Select Tax-Free

(NXC)

6.6%

0.041

0.0437

3.54%

-4.52%

2.4

103%

6/3/2019

6/13/2019

TCW Strategic Income

(TSI)

7.4%

0.0768

0.0825

5.46%

-2.38%

3

32%

6/14/2019

6/27/2019

JH Investors Trust

(JHI)

26.6%

0.2458

0.3111

7.59%

-9.49%

-0.2

32%

6/3/2019

6/12/2019

(Source: Stanford Chemist, CEFConnect)

CEF analysis from around Seeking Alpha...

ADS Analytics presents RIV: Decent Alpha, But Concerns Remain (Jun. 24)

Alpha Gen Capital presents New Policy Raises Blackstone/GSO Funds' Distribution, A Positive For Floating Rate Funds (Jun. 24), Why It's Time To Bank Gains From MHD (Jun. 26)

Arbitrage Trader presents Weekly Review: High-Yield CEFs - New Fresh High For The Sector (Jun. 25), Weekly Review: Municipal Bond CEFs - AKP Announced The Liquidating Distribution Of $15.0538 Per Share (Jun. 26)

Closed-End Fund Association presents CEF Insights: Precious Metals For Late Cycle Diversification (Jun. 26)

Dividend Seeker presents HYT: A High-Yield Fund At A Discounted Price (Jun. 26)

George Spritzer presents Boulder Growth And Income: Lower Expense Ratio And Still Available At A 17% Discount (Jun. 24)

Nick Ackerman presents BME: Large-Cap Healthcare Exposure Rolled Into One CEF (Jun. 28)

Power Hedge presents IGR: Protect Your Wealth And Earn A Nice Yield (Jun. 22), BlackRock Science And Technology Trust: A Closed-End Fund For The Tech Space Trading At A Discount (Jun. 24)

*Stanford Chemist presents The Chemist's 'High-High-Low' Closed-End Fund Report: May 2019 (Jun. 23), Weekly Closed-End Fund Roundup: SZC Rights Offering, Saba Sues BlackRock (Jun. 26), Quick Note On SZC's Rights Offering (2019 Edition) (Jun. 27)

*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 Uptrend Pauses As Investors Focus On The Tariff News (Jun. 29)

Jeff Miller presents Weighing The Week Ahead: Implications Of The Trade Truce (Jun. 30)

Lance Roberts presents The 'Art Of The Deal' Vs. The 'Art Of War' (Jun. 30)

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.