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Weekly Closed-End Fund Roundup: VAM To Merge Into FINS, EGIF To Liquidate (May 31, 2020)


  • The rebound continues, with 23 out of 23 CEF sectors positive on price and 22 out of 23 sectors positive on NAV last week.
  • VAM will be merged into FINS this week.
  • EGIF to liquidate as new advisory contract was not approved by shareholders.
  • Activist battles for Western Asset/Legg Mason CEFs heats up.
  • This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Get started today »

Author's note: This article was released to members on June 1, 2020. Please check latest data before investing.

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 29th, 2020.

Weekly performance roundup

23 out of 23 sectors were positive on price (same as last week) and the average price return was +3.46% (up from +4.19% last week). All sectors were positive by Price this week, the lead gainer was Real Estate (+8.13%), followed by Global Allocation (+4.66%) and Convertibles (+4.41%), the lowest sector by Price was Commodities (+1.06%), followed by Investment Grade (+1.85%) and Covered Call (+1.98%).

(Source: Stanford Chemist, CEFConnect)

22 out of 23 sectors were positive on NAV (down from 23 last week), while the average NAV return was +2.14% (up from +3.03% last week). There were almost no negative sectors by NAV this week, the top sectors by NAV were Real Estate (+5.65%), Global Equity (+4.03%) and U.S. Equity (+3.96%). The only negative sector by NAV was Commodities (-0.74%), Single-state Munis (+0.46%) and California Munis (+0.48%).

(Source: Stanford Chemist, CEFConnect)

There were only three premium sectors this week, the leader was Preferreds (+4.26%), while the sector with the highest discount is MLPs (-16.44%). The average sector discount is -7.25% (up from -8.29% last week).

(Source: Stanford Chemist, CEFConnect)

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This article was written by

Stanford Chemist profile picture

CEF/ETF Income Laboratory is a premium newsletter on Seeking Alpha that is focused on researching profitable income and arbitrage ideas with closed-end funds (CEFs) and exchange-traded funds (ETFs). We manage model safe and reliable 8%-yielding fund portfolios that have beaten the market in order to make income investing easy for you. Check us out to see why one subscriber calls us a "one-stop shop for CEF research.”

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Our team includes:

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Analyst’s Disclosure: I am/we are long ECC, HIO, HQH, NMZ, OCCI. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (9)

Pimco cefs PGP 26.55%,PHK 21.7%, and RCS 16.67% cut distributions.
Excellent data and commentary,thanks.
ZTR reduced their dividend to eight cents per month which was announced on May 26th, so it's yielding about 10% at the current price. P/D is -.44 and Z is -.26.
Thanks for the article. Whew this market is a steamroller, squeezing the life out of the shorts, even for stuff that only burn and not earn cash at the present. I wanted to increase position size, but no significant dips to buy in stuff I like. Oh well, doing great with small positions, hope it continues.
Nice writeup, speaking of Activists battles, Saba Capital recently took a 1.07% stake in Brookfield Real Asset RA. Looking closely to see if the begin to accumulate more shares then move a move to close the discount.
Stay tuned !
Catch21 profile picture
And Saba also has a stake (c6%) in BWG, another in the Legg Mason stable, whose horses are supposed to go to Franklin. Shareholder vote on this (liquidation also on the table here) was to have been June 5, but now June 10 to allow for more proxy soliciting.
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