Weekly Closed-End Fund Roundup: August 9, 2020

Aug. 18, 2020 4:16 AM ETBAF, BBF, BBK, BFY, BLE, BMEZ, BNY, BSD, BSE, BWG, BZM, CEM, CTR, DDF, DLY, DSE, EGIF, EHI, EIM, EMO, FAM, FGB, KYN, FXBY, GER, GGO, GGO.PA, GGT, GGT.PE, GMZ, GOF, GUT, GUT.PA, GUT.PC, HIO, HIX, IAE, IIF, INSI, JHAA, JHB, KMF, MEN, MFT, MHD, MHE, MQY, MUH, MUS, MYF, MZA, NJV, NRO, NTG, NYV, OCCI, OCCIP, OXLC, OXLCM, OXLCO-OLD, OXLCP, PCN, PCQ, PGP, BRW, TTP, TYG, WIA3 Comments9 Likes

Summary

  • 23 out of 23 CEF sectors positive on price and 23 out of 23 sectors positive on NAV last week.
  • Commodities continue to rally, energy also puts in a strong performance.
  • MLPs remain the highest yielding CEF sector.
  • 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 CEF/ETF Income Laboratory members on August 11, 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, August 7th 2020.

Weekly performance roundup

23 out of 23 sectors were positive on price (up from 21 last week), and the average price return was -2.25% (down from +5.49% last week). The lead gainer was Commodities (+8.08%), followed by MLPs (+5.69%) and Convertibles (+3.33%), the weakest sectors by Price were Taxable Munis (+0.63%), followed by Investment Grade (+0.74%) and Preferreds (+0.75%).

(Source: Stanford Chemist, CEFConnect)

23 out of 23 sectors were positive on NAV (unchanged from 23 last week), while the average NAV return was +1.70% (down from +6.56% last week). The top sectors by NAV were Commodities (+10.66%), MLPs (+5.83%) and U.S. Equity (+2.46%). The weakest sectors by NAV were Global Allocation (-2.01%), Taxable Munis (+0.30%) and Senior Loans (+0.51%).

(Source: Stanford Chemist, CEFConnect)

The highest premium sector was Preferreds (+4.29%), while the sector with the widest discount is MLPs (-24.61%). The average sector discount is -6.99% (up from -7.91% last week).

(Source: Stanford Chemist, CEFConnect)

The sector with the highest premium/discount increase was Global Allocation (+2.39%), while Asia Equity (-0.22%) showed the largest premium/discount decline. The average change in premium/discount was +0.94% (up from -0.33% last week).

(Source: Stanford Chemist, CEFConnect)

The sector with the highest average 1-year z-score is Taxable Munis (+1.24), followed by Preferreds (+0.58). The sector with the lowest average 1-year z-score was MLPs (-1.68), followed by Asia Equity (-1.02). The average z-score is -0.26 (up from -0.44 last week).

(Source: Stanford Chemist, CEFConnect)

The sectors with the highest yields are MLPs (16.45%), Global Allocation (11.07%), Limited Duration (9.36%), Multisector Income (8.98%) and Emerging Market Income (8.85%). Discounts and z-scores for the sectors are included for comparison. The average sector yield is +7.39% (down from +7.55%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.

Fund

Ticker

P/D decrease

Yield

P/D

Z-Score

Price change

NAV change

First Trust Specialty Finance & Financial Opp

(FGB)

-5.29%

18.00%

-0.66%

-0.8

2.04%

7.47%

Gabelli Go Anywhere Trust

(GGO)

-4.49%

1.86%

-6.69%

0.5

0.00%

4.83%

Duff & Phelps Sel Enrg MLP Midstrm Enrg

(DSE)

-3.65%

0.00%

-23.81%

-0.8

0.54%

5.36%

Voya Asia Pacific High Div Eq Inc Fd

(IAE)

-3.64%

11.14%

-12.37%

-0.4

-3.02%

1.03%

First Trust/Aberdeen Global Opp Inc

(FAM)

-3.64%

9.60%

-9.75%

-0.6

-4.49%

-0.63%

Gabelli Multimedia

(GGT)

-3.47%

12.61%

0.29%

-1.4

1.31%

4.82%

Foxby Corp

(OTCPK:FXBY)

-3.14%

0.53%

-37.95%

-1.2

-1.57%

3.41%

DoubleLine Yield Opportunities Fund

(DLY)

-3.10%

7.60%

-2.85%

0.0

-2.49%

0.64%

PIMCO Global StocksPLUS & Income

(PGP)

-3.08%

9.92%

5.56%

-2.0

-0.83%

2.06%

Insight Select Income Fund

(INSI)

-2.88%

3.77%

-4.26%

0.9

-1.03%

0.77%

(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.

Fund Ticker P/D increase Yield P/D z-score Price change NAV change
Gabelli Utility Trust (GUT) 11.12% 7.47% 98.27% 2.3 5.94% 0.00%
OFS Credit Company Inc (OCCI) 10.61% 21.47% -9.01% -0.8 13.07% 0.00%
Oxford Lane Capital Corp (OXLC) 7.43% 17.96% 39.63% -0.8 5.62% 0.00%
PIMCO Corporate & Income Strgy (PCN) 6.93% 8.28% 26.93% 0.1 6.67% 0.86%
PIMCO CA Municipal Income (PCQ) 6.70% 4.42% 23.81% -0.5 6.53% 0.78%
Nuveen New Jersey Municipal Value Common (NJV) 5.32% 2.66% -9.69% 1.2 6.80% 0.52%
Guggenheim Strategic Opp Fund (GOF) 4.66% 12.13% 11.59% 0.7 5.44% 0.94%
BlackRock Health Sciences Trust II (BMEZ) 4.52% 4.93% -3.33% 0.0 7.74% 2.73%
Nuveen New York Municipal Value 2 (NYV) 4.42% 2.24% -8.57% 2.8 5.66% 0.56%
Neuberger Berman Real Estate Securities Income (NRO) 4.39% 11.76% -1.69% 0.8 5.70% 0.97%

(Source: Stanford Chemist, CEFConnect)

Recent corporate actions

These are from the past month. Any new news in the past week has a bolded date:

July 28, 2020 | Announce Completion of Reverse Stock Splits. ClearBridge MLP and Midstream Fund Inc. (CEM), ClearBridge Energy Midstream Opportunity Fund Inc. (EMO) and ClearBridge MLP and Midstream Total Return Fund Inc. (CTR) (each a “Fund” and together, the “Funds”) announced today that the previously disclosed 1-for-5 reverse stock split for each Fund, as outlined below, will be executed prior to the open of trading on the New York Stock Exchange (the “NYSE”) today, July 28, 2020. Each Fund’s common stock will begin trading on a split-adjusted basis under their current symbols, but with new CUSIP numbers, as listed below.

Symbol

Fund Name

Old CUSIP

New CUSIP

CEM

ClearBridge MLP and Midstream Fund Inc.

184692101

184692200

EMO

ClearBridge Energy Midstream Opportunity Fund Inc.

18469P100

18469P209

CTR

ClearBridge MLP and Midstream Total Return Fund Inc.

18469Q108

18469Q207

As a result of the reverse stock splits, every five outstanding shares of common stock of each Fund will be automatically converted into one share of common stock.

July 27, 2020 | FMO Announces Completion of Reverse Share Split. Fiduciary/Claymore Energy Infrastructure Fund’s (“FMO” or the “Fund”) today announced that the previously disclosed 1-for-5 reverse share split was executed today prior to the open of trading on the New York Stock Exchange (the “NYSE”) under which every five outstanding common shares of FMO were automatically converted into one common share. The Fund’s common shares will begin trading on a split-adjusted basis on the NYSE under the current ticker symbol (FMO), but with the new CUSIP number (31647Q205). The reverse share split reduced the total number of the Fund’s outstanding shares and may help improve the Fund’s positioning in the marketplace and liquidity for new and existing shareholders. The reverse share split did not alter the rights or total value of a shareholder’s investment in the Fund, nor is it a taxable event for Fund investors.

July 28, 2020 | Eaton Vance Municipal Bond Fund Announces Final Results Of Tender Offer. Eaton Vance Municipal Bond Fund (EIM) (the "Fund") announced today the final results of its tender offer for up to 5% or 3,787,010 of its outstanding common shares of beneficial interest. As previously announced, the tender offer expired at 5:00 P.M., Eastern Time on July 24, 2020. 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). Following the purchase of the tendered shares, the Fund will have approximately 71,953,184 shares of common stock outstanding. The final results of the tender offer, based on a count by American Stock Transfer & Trust Company, LLC, the depositary for the tender offer, are provided in the table below:

Number of

Shares Tendered

Number of Tendered Shares to be Purchased

Pro-Ration Factor*

Purchase Price**

Number of Outstanding Shares after Giving Effect to Tender Offer

24,119,559

3,787,010

15.700947000%

$13.9337

71,953,184

The Fund will purchase the common shares accepted for payment as promptly as practicable. The information agent for the tender offer is AST Fund Solutions, LLC. Any questions with regard to the tender offer may be directed to the information agent toll-free at 800-848-3051.

July 20, 2020 | Morgan Stanley India Investment Fund, Inc. Announces Preliminary Results of Tender Offer. Morgan Stanley India Investment Fund, Inc. (IIF) (the “Fund”) announced today that the Fund’s tender offer for 1,997,600 of its issued and outstanding shares of common stock, representing approximately 15 percent of the Fund’s outstanding shares, expired at 11:59 p.m., New York time on July 17, 2020. Based upon current information, approximately 8,450,487 shares were tendered, including shares tendered pursuant to notices of guaranteed delivery. Based on this preliminary information, the pro-ration for each tendering stockholder is estimated to be 23.64% percent of the shares properly tendered. These numbers are subject to adjustment and should not be regarded as final. The actual number of shares to be purchased will be announced at a later date. Management of the Fund anticipates acceptance on July 23, 2020 of 1,997,600 shares properly tendered and that payment for such shares will be made on or about July 24, 2020. The purchase price of properly tendered shares is equal to 98.5 percent of the net asset value per share determined as of the close of the regular trading session of the New York Stock Exchange (NYSE) on July 20, 2020.

Upcoming corporate actions

These are from the past month. Any new news in the past week has a bolded date:

July 13, 2020 | Eagle Growth and Income Opportunities Fund Announces Additional Liquidation Details. Eagle Growth and Income Opportunities Fund (the "Fund") (EGIF) today announced additional details related to the Fund's liquidation. As previously announced on May 27, 2020, pursuant to a Plan of Liquidation (the "Plan") adopted by the Fund's Board of Trustees (the "Board"), the Fund has commenced the process of winding up its affairs. The Fund has sold all of its portfolio holdings and the proceeds have been invested in a U.S. Treasury money market fund. In connection with the Fund's liquidation, the Board is required to discharge or make reasonable provision for the Fund's claims and obligations, including potential claims and obligations. As part of this process, the Board reviewed certain potential claims (the "Contingent Liabilities") threatened by the Fund's former investment adviser, Four Wood Capital Advisors, LLC ("FWCA"), and its parent, Four Wood Capital Partners, LLC ("FWCP" and, collectively with FWCA, "Four Wood") arising in connection with a decision by a majority of the Fund's Trustees, after months of review, to pursue a strategic alternative for the Fund other than the one for which FWCA would have received compensation. In accordance with the Plan and as required by applicable law, the Board has determined that $29 million of the Fund's net assets should be reserved by the Fund and not immediately distributed to the Fund's shareholders (the "Reserve") to provide for these Contingent Liabilities, certain estimated but un-invoiced expenses of the Fund and the estimated expenses of operating a liquidating trust to hold the Reserve and the Contingent Liabilities (the "Liquidating Trust"). The amount of the Reserve is based upon the amount of damages that Four Wood has alleged and not the Independent Trustees' view of the merits of the potential claims. Amounts related to the threatened litigation comprise the largest single component of the Reserve. Upon dissolution of the Fund, Delaware state law focuses on protecting creditors or potential creditors of the Fund. Under certain limited circumstances, in the event that the Reserve is insufficient to cover the Fund's Contingent Liabilities, it is possible that a creditor may seek payment for claims against the Fund by claiming against the beneficiaries of the Liquidating Trust who received Liquidating Trust distributions. Under applicable state law, absent misconduct by a beneficial owner, that beneficial owner's liability for such claims should be limited to the amount of any Liquidating Trust distributions received though there is no definitive guidance on this point. As previously announced, it is anticipated that the Fund's liquidating distributions will be comprised of one or more cash distributions plus a 1:1 per share interest in the Liquidating Trust. The liquidating distributions together will represent substantially all of the Fund's net assets at the time of liquidation. As part of winding up its affairs, the Fund has undertaken to pay known expenses of the Fund incurred in the ordinary course of its business and in connection with its liquidation. As a result, the value of the Fund's net assets has been, and will continue to be, reduced by an amount equal to those expenses until the date on which the Reserve and the Contingent Liabilities are anticipated to be contributed to the Liquidating Trust (i.e., August 20, 2020). The Fund has fixed the close of business on July 27, 2020 as the closing of the Fund's transfer books and effective date for determining the shareholders of the Fund entitled to receive liquidating distributions from the Fund. The Fund's shares will continue trading on the New York Stock Exchange through July 27, 2020 and will be suspended from trading before the open of trading on July 28, 2020, after which time there will be no secondary market for the Fund's shares. It is anticipated that the Fund will pay one or more liquidating distributions, collectively representing the Fund's net assets other than the Reserve, beginning on or about August 3, 2020.

July 7, 2020 | Brandywine GLOBAL – Global Income Opportunities Fund Inc. Announces Plan for Tender Offer. Brandywine GLOBAL – Global Income Opportunities Fund Inc. (BWG) announced today that the Fund’s Board of Directors has authorized (subject to certain conditions) a cash tender offer for up to 20% of the Fund’s outstanding shares of common stock (the “Shares”) at a price per Share equal to 99.5% of the Fund’s net asset value per Share as of the business day immediately following the expiration date of the tender offer. The commencement of the tender offer will commence as soon as practicable as determined by the Fund’s board of directors. The Fund will repurchase Shares tendered and accepted in the tender offer in exchange for cash. In the event the tender offer is oversubscribed, Shares will be repurchased on a pro rata basis.

June 22, 2020 | Western Asset Global High Income Fund Inc. Announces Plan for Tender Offer. Western Asset Global High Income Fund Inc. (EHI) announced today that the Fund’s Board of Directors has authorized (subject to certain conditions) a cash tender offer for up to 50% of the Fund’s outstanding shares of common stock (the “Shares”) at a price per Share equal to 99.5% of the Fund’s net asset value per Share as of the business day immediately following the expiration date of the tender offer. The commencement of the tender offer will be announced at a later date. The tender offer will not expire prior to November 13, 2020, or such later date as determined by the Fund’s board of directors. The Fund will repurchase Shares tendered and accepted in the tender offer in exchange for cash. In the event the tender offer is oversubscribed, Shares will be repurchased on a pro rata basis.

June 22, 2020 | Western Asset High Income Opportunity Fund Inc. Announces Plan for Tender Offer. Western Asset High Income Fund II Inc. (HIX) announced today that the Fund’s Board of Directors has authorized (subject to certain conditions) a cash tender offer for up to 35% of the Fund’s outstanding shares of common stock (the “Shares”) at a price per Share equal to 99.5% of the Fund’s net asset value per Share as of the business day immediately following the expiration date of the tender offer. The commencement of the tender offer will be announced at a later date. The tender offer will not expire prior to November 13, 2020, or such later date as determined by the Fund’s board of directors. The Fund will repurchase Shares tendered and accepted in the tender offer in exchange for cash. In the event the tender offer is oversubscribed, Shares will be repurchased on a pro rata basis.

June 22, 2020 | Western Asset High Income Opportunity Fund Inc. Announces Plan for Tender Offer. Western Asset High Income Opportunity Fund Inc. (HIO) announced today that the Fund’s Board of Directors has authorized (subject to certain conditions) a cash tender offer for up to 25% of the Fund’s outstanding shares of common stock (the “Shares”) at a price per Share equal to 99.5% of the Fund’s net asset value per Share as of the business day immediately following the expiration date of the tender offer. The commencement of the tender offer will be announced at a later date. The tender offer will not expire prior to November 13, 2020, or such later date as determined by the Fund’s board of directors. The Fund will repurchase Shares tendered and accepted in the tender offer in exchange for cash. In the event the tender offer is oversubscribed, Shares will be repurchased on a pro rata basis.

June 16, 2020 | BlackRock Announces Board Approval of Municipal Closed-End Fund Reorganizations. BlackRock Advisors, LLC announced today that the Boards of Trustees of BlackRock New York Municipal Income Trust II (BFY), BlackRock New York Municipal Income Quality Trust (BSE) and BlackRock New York Municipal Income Trust (BNY) (collectively, the “Funds”) have approved the reorganizations of each of BFY and BSE with and into BNY, with BNY continuing as the surviving Fund (together, the “Reorganizations”). It is currently expected that the Reorganizations will be completed in or before the first quarter of 2021, subject to the requisite approvals by each Fund’s shareholders, the refinancing of BNY’s preferred shares and the satisfaction of customary closing conditions.

June 16, 2020 | BlackRock Announces Board Approval of Municipal Closed-End Fund Reorganizations. BlackRock Advisors, LLC announced today that the Boards of Directors or Trustees, as applicable, of BlackRock Maryland Municipal Bond Trust (BZM), BlackRock Massachusetts Tax-Exempt Trust (MHE), BlackRock MuniYield Arizona Fund, Inc. (MZA), BlackRock MuniYield Investment Fund (MYF), BlackRock MuniEnhanced Fund, Inc. (MEN) and BlackRock MuniYield Quality Fund, Inc. (MQY) (collectively, the “Funds”) have approved the reorganizations of each of BZM, MHE, MZA, MYF and MEN with and into MQY, with MQY continuing as the surviving Fund (collectively, the “Reorganizations”). It is currently expected that the Reorganizations will be completed in or before the first quarter of 2021, subject to the requisite approvals by each Fund’s shareholders and the satisfaction of customary closing conditions.

June 16, 2020 | BlackRock Announces Board Approval of Municipal Closed-End Fund Reorganizations. BlackRock Advisors, LLC announced today that the Boards of Trustees of The BlackRock Strategic Municipal Trust (BSD), BlackRock MuniYield Investment Quality Fund (MFT), BlackRock Municipal Income Investment Trust (BBF) and BlackRock Municipal Income Trust II (BLE) (collectively, the “Funds”) have approved the reorganizations of each of BSD, MFT and BBF with and into BLE, with BLE continuing as the surviving Fund (collectively, the “Reorganizations”). It is currently expected that the Reorganizations will be completed in or before the first quarter of 2021, subject to the requisite approvals by each Fund’s shareholders, the refinancing of BBF’s preferred shares and the satisfaction of customary closing conditions.

June 16, 2020 | BlackRock Announces Board Approval of Municipal Closed-End Fund Reorganizations. BlackRock Advisors, LLC announced today that the Boards of Directors or Trustees, as applicable, of BlackRock Municipal Income Investment Quality Trust (BAF), BlackRock Municipal Bond Trust (BBK), BlackRock MuniHoldings Fund II, Inc. (MUH), BlackRock MuniHoldings Quality Fund, Inc. (MUS) and BlackRock MuniHoldings Fund, Inc. (MHD) (collectively, the “Funds”) have approved the reorganizations of each of BAF, BBK, MUH and MUS with and into MHD, with MHD continuing as the surviving Fund (collectively, the “Reorganizations”). It is currently expected that the Reorganizations will be completed in or before the first quarter of 2021, subject to the requisite approvals by each Fund’s shareholders and the satisfaction of customary closing conditions.

June 10, 2020 | Goldman Sachs Asset Management Closed-End Funds Announce Proposed Reorganization of Goldman Sachs MLP Income Opportunities Fund into Goldman Sachs MLP and Energy Renaissance Fund. Goldman Sachs Asset Management (“GSAM”), investment adviser for the Goldman Sachs MLP Income Opportunities Fund (GMZ) and Goldman Sachs MLP and Energy Renaissance Fund (GER)(together, the “Funds”), announced today that the Board of Trustees of each Fund (together, the “Board”) has approved an Agreement and Plan of Reorganization (the “Plan of Reorganization”) providing for the reorganization of GMZ with and into GER (the “Reorganization”), to be considered by shareholders of the Funds at a joint special meeting of shareholders expected to be held in the third quarter of 2020. At the joint special meeting, the shareholders of GMZ will be asked to approve the Plan of Reorganization and the shareholders of GER will be asked to approve the issuance of shares by GER in connection with the Reorganization. The Board and GSAM believe that the Reorganization is in the best interests of the shareholders of each Fund. The key terms of the Reorganization, subject to shareholder approval, include:

  1. GMZ will transfer of all of its assets to GER in exchange for shares of GER having an aggregate net asset value (“NAV”) equal to the NAV of GMZ as of the close of regular trading on the New York Stock Exchange (“NYSE”) on the business day immediately preceding the closing date and the assumption by GER of all of the liabilities of GMZ. Shares of GER received by GMZ will be distributed to the shareholders of GMZ in complete liquidation of GMZ.
  2. As the surviving Fund, the investment objective, strategies and restrictions of GER will remain unchanged.
  3. The Reorganization is expected to qualify as a tax-free event and as a result, shareholders of GMZ and GER are not expected to recognize a gain or loss for federal income tax purposes as a result of the Reorganization (except any gain or loss that may result from the receipt of cash in lieu of fractional shares).

It is currently anticipated that the Reorganization will conclude in the third calendar quarter of 2020, subject to obtaining GMZ and GER stockholder approval, compliance with all regulatory requirements and satisfaction of customary closing conditions.

Recent activist or other CEF news

These are from the past month. Any new news in the past week has a bolded date:

July 30, 2020 | Western Asset Inflation-Linked Income Fund (NYSE: WIA) Announces Adjournment and Rescheduling of July 29, 2020 Special Meeting of Shareholders. Western Asset Inflation-Linked Income Fund (WIA) announced today that the Special Meeting of Shareholders (the “Meeting”) originally scheduled for Tuesday, July 14, 2020 at 9:00 a.m. Eastern Time and subsequently adjourned to Wednesday, July 29, 2020 at 9:00 a.m. Eastern Time has been adjourned to Friday, August 28, 2020 at 9:30 a.m. Eastern Time in order to solicit additional shareholder votes. As previously announced, in light of public health concerns regarding the coronavirus pandemic, the Meeting is being held in a virtual meeting format only. The Meeting will be accessible solely by means of remote communication.

July 27, 2020 | Kayne Anderson Midstream/Energy Fund Provides Strategic Update.

  • KMF is being repositioned to focus on key trends and developments within the energy and infrastructure sectors;
  • KMF is targeting the “next generation” of companies helping to facilitate the transition to a more sustainable mix of lower carbon and renewable energy; and
  • KMF will be renamed “Kayne Anderson NextGen Energy & Infrastructure, Inc.”

Kayne Anderson Midstream/Energy Fund, Inc. (KMF) (the “Fund”) announced today that its Board of Directors has approved a proposal to change the Fund’s name to Kayne Anderson NextGen Energy & Infrastructure, Inc. The Fund’s Board of Directors also approved an amendment to the Fund’s non-fundamental investment policies, as described below. The Fund’s management and its Board of Directors believe these changes provide KMF additional flexibility to capitalize on key trends and developments within the energy and infrastructure sectors. “The energy sector is in the midst of a profound transition,” says Jim Baker, KMF’s Chairman, President and CEO. “By focusing on the companies facilitating the energy sector’s transition to a more sustainable mix of lower carbon and renewable energy, the Fund is well positioned to capitalize on this trend. The global push to reduce carbon emissions will have a material impact on both the energy and infrastructure sectors in the coming decades. We are very excited about the ways renewable infrastructure companies, utilities, and natural gas focused midstream companies can benefit from the energy transition,” continued Mr. Baker. Under its revised investment policies, KMF plans to invest at least 80% of the Fund’s total assets in securities of energy companies and infrastructure companies. Further, KMF plans to invest a majority of its assets in securities of next generation companies facilitating the energy transition. We expect these next generation companies to be a mix of renewable infrastructure companies, utilities, and natural gas focused midstream companies. The name change and changes to KMF’s investment policies will become effective upon 60 days’ written notice to stockholders, which is expected to be on or about September 28, 2020.

July 24, 2020 | Duff & Phelps Select MLP and Midstream Energy Fund Inc. Provides Update on Liquidation Proposal. The Duff & Phelps Select MLP and Midstream Energy Fund Inc. (DSE), a closed-end fund, today announced it did not achieve the requisite majority vote to approve a proposal to liquidate and dissolve the fund at a meeting of shareholders despite achieving a plurality of votes cast. The proposal to liquidate and dissolve the fund was recommended to shareholders based on an assessment of a variety of factors, including the volatility in the MLP and midstream energy sector, in which the fund invests, and the fund's level of assets. In addition, the fund had been notified that it is not in compliance with the New York Stock Exchange's continued listing standards because the average closing price of its shares had fallen below $1.00 per share over a consecutive 30-day trading period. Management will continue to manage the fund according to its mandate and will review options for the fund that are in the best interest of shareholders, including actions necessary to maintain the fund's listing on the NYSE. Management will also voluntarily waive 50% of the management and administration fees that the fund will resume paying, effective August 1. These fees had previously been fully waived since March 1, 2020. It is expected that due to its asset level, the fund will have a higher expense ratio and lesser or no ability to use leverage to increase its asset base.

July 14, 2020 | Voya Prime Rate Trust Shareholders Elect Full Slate of Saba Capital Nominees to the Board. Saba Capital Management, L.P. and certain associated parties (collectively “Saba”) today announced that Voya Prime Rate Trust (PPR) shareholders have elected all eight of Saba’s nominees – Aditya Bindal, Peter Borish, Karen Caldwell, Charles Clarvit, Ketu Desai, Kieran Goodwin, Andrew Kellerman and Neal Neilinger – to the Board of Trustees (the “Board”), thereby replacing the full Board. Additionally, shareholders voted in favor of Saba’s non-binding proposal to tender 40% of PPR shares outstanding. These results have been certified by the independent Inspector of Election for the Voya Prime Rate Trust 2020 Annual Meeting of Shareholders. Pierre Weinstein, Partner of Saba, said, “We are pleased that our fellow shareholders recognize that change is required at PPR to protect and enhance the value of their investments. Through the election of all of Saba’s qualified, independent Trustees and the passage of our proposed non-binding tender offer, PPR investors have clearly voiced their desire for proper oversight, diverse perspectives, and, importantly, a narrowing in PPR’s discount to NAV. “That this victory comes after an attempt to change the voting standard – which resulted in litigation that Saba won and PPR has since twice appealed – is evidence of the lengths closed-end fund boards will go to entrench themselves, and the efforts Saba will take to uphold good governance. We thank all shareholders for their support.”

July 8, 2020 | Tortoise Announces the Reinstatement of Distributions and Share Repurchase Program for Certain Closed-End Funds. Tortoise today announced that the Board has authorized the reinstatement of distributions and a share repurchase program for certain closed-end funds. Tortoise Energy Infrastructure Corp. (TYG) and Tortoise Midstream Energy Fund, Inc. (NTG) declared a quarterly distribution of $0.30 and $0.31, respectively, payable on July 31, 2020 to shareholders of record as of July 24, 2020. The Board has decided to pay these distributions for TYG and NTG in July, and expect to return to the regular fiscal quarter distribution schedule in November. Additionally, we are implementing a share repurchase program effective through December 31, 2020, for TYG, NTG and Tortoise Pipeline & Energy Fund, Inc. (TTP). Under the share repurchase program, TYG, NTG and TTP, intend to purchase in the open market, $25 million, $12.5 million and $5 million, respectively, of their outstanding common shares, if trading at a discount to NAV in excess of 10%. TYG and NTG are modifying their distribution policies to shift to a NAV-based distribution. Distribution amounts will normally be reviewed annually and are generally expected to fall in the range of 5% to 7% of NAV. For example, TYG’s annualized distribution of $1.20 represents 5.6% of its July 7, 2020, NAV of $21.31.

July 7, 2020 | Bulldog Investors Reaches Settlement Agreement with BrandywineGLOBAL-Global Income Opportunities Fund. Bulldog Investors, LLC (“Bulldog”) today announced that it has reached a settlement agreement with BrandywineGLOBAL-Global Income Opportunities Fund (BWG) regarding shareholder approval of a new management agreement between BWG and Legg Mason Partners Fund Advisor, LLC. The settlement agreement provides for, among other things, BWG to conduct a self-tender offer for 20% of its outstanding shares of common stock at a price of 99.5% of net asset value (“NAV”) as soon as practicable as determined by the Board of Directors. The complete settlement agreement will be included in a filing made with the Securities and Exchange Commission. Andrew Dakos, a managing member of Bulldog, commented: “BWG’s common shares have recently been trading at a discount of more than 14% to NAV. The tender offer will provide an opportunity for shareholders to receive a price close to NAV for a significant portion of their shares. We are pleased to have reached this agreement with the Board, which is the result of ongoing constructive engagement.”

June 25, 2020 | Two Nuveen Target Term Closed-end Funds Approve Investment Policy and Name Changes. The Fund Board of the Nuveen High Income 2023 Target Term Fund (NYSE: JHAA) and Nuveen High Income November 2021 Target Term Fund (NYSE: JHB) has approved changes to each Fund’s name to “Nuveen Corporate Income 2023 Target Term Fund” and “Nuveen Corporate Income November 2021 Target Term Fund”, respectively. Each Fund will also change its investment policy associated with its name. Currently, each Fund seeks to achieve its investment objectives by investing, under normal circumstances, at least 80% of its Managed Assets in securities that, at the time of investment, are rated below investment grade (BB+/Ba1 or lower) or are unrated but deemed equivalent by the subadviser. Pursuant to the revised policy, each Fund’s requirement to invest 80% of its Managed Assets in securities that are rated below investment grade is eliminated. Each Fund will continue to invest at least 80% of its Managed Assets in corporate debt securities. The table below summarizes the changes to each Fund described above. The changes are expected to go into effect on August 24, 2020:

Current Name

New Name

Current Policy

New Policy

Nuveen High Income 2023 Target Term Fund

Nuveen Corporate Income 2023 Target Term Fund

Under normal circumstances, the Fund will invest at least 80% of its Managed Assets in securities that, at the time of investment, are rated below investment grade or are unrated but judged by the Fund’s subadviser to be of comparable quality.

Existing policy eliminated.

Nuveen High Income November 2021 Target Term Fund

Nuveen Corporate Income November 2021 Target Term Fund

Under normal circumstances, the Fund will invest at least 80% of its Managed Assets in securities that, at the time of investment, are rated below investment grade or are unrated but judged by the Fund’s subadviser to be of comparable quality.

Existing policy eliminated.

Distribution changes announced this month

August distribution changes haven't been updated in our database yet! For now, check out this Morningstar thread by acamus for the latest announcements!

CEF analysis from around Seeking Alpha...

ADS Analytics presents PGZ: Questions Remain On This Deeply Discounted CEF (Aug. 4), Preferreds CEF Sector Update (Aug. 5)

Alpha Gen Capital presents Current Buy Opportunities (And Sells) In Term Trusts To Dampen Portfolio Volatility (Aug. 6)

Brad Thomas presents Highland Income Fund: This Gondola Phenomenon Yields 12% (Aug. 4)

Dividend Seeker presents PCQ Still Looks Overpriced To Me (Aug. 3), NBB: I Just Bought This Fund For Its Relative Value (Aug. 7)

Douglas Albo presents Equity CEFs: 40%-Plus Swap Idea - One Year Later (DDF) (Aug. 3)

Harrison Schwartz presents XFLT: We've Seen The 'Big Crash', But The Rebound Is Fading (Aug. 3)

Keith J. Dauzat presents Buy Nuveen Preferred & Income Securities Fund, When It Trades At A Discount To NAV, For Income (Aug. 4)

Nick Ackerman presents BSTZ: Exploding Higher And Still At A Deep Discount (Aug. 1), UTF: Exceptional Rebound From This Solid Fund (Aug. 4), Closed-End Funds: 3 'Buy' Rated Funds With Double-Digit Discounts (Aug. 7)

Rida Morwa presents HQH: Healthcare CEF For Income Investors (Aug. 4)

Steven Bavaria presents Cohen & Steers' Closed-End Opportunity Fund: Getting Paid To Wait For CEFs To 'Revert To The Mean' (Aug. 5)

*Stanford Chemist presents Weekly Closed-End Fund Roundup: July 26, 2020 (Aug. 3), The Chemist's Quality Closed-End Fund Report: July 2020 (Aug. 3), Senior Loan CEFs And The LIBOR Floor (Aug. 4), How CEF Rotation Turned OXLC And ECC From Losers Into Winners (Aug. 7)

Tom Roseen presents The Month In Closed-End Funds: July 2020 (Aug. 6)

*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: Stock Market Pundits Are 'Fooled' Again (Aug. 8)

Jeff Miller presents NFP Response Rates Sound A Warning (Aug. 8)

Lance Roberts presents Fed Wants Inflation, But Its Actions Are Deflationary (Aug. 8)

Commentary

August distribution changes haven't been updated in our database yet, but for now, check out this Morningstar thread by acamus for the latest announcements! None of the funds in our portfolios has recorded cuts so far.

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