Weekly Closed-End Fund Roundup: August 23, 2020

Aug. 31, 2020 12:35 PM ETAIF, BBN, BNY, CEE, CIF, CLM, CRF, DDF, DEX, DSE, EAD, EFL, EFT, EOD, ERC, ERH, EVF, FGB, KYN, GGO, GGO.PA, GIM, GRF, HNW, IGI, IIM, IQI, IVH, MAV, MCR, MFV, MGF, MIN, MMT, MPV, MZA, NBB, NOM, NRO, OCCI, OCCIP, OXLC, OXLCM, OXLCO-OLD, OXLCP, PHD, BRW, PZC, RIV, SPE, SPE.PB, TEI, VCV, VGM, VKI, VMO, VPV3 Comments

Summary

  • 8 out of 23 CEF sectors positive on price and 7 out of 23 sectors positive on NAV last week.
  • Taxable munis gain while MLPs lag.
  • MLPs are 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 25, 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 21, 2020.

Weekly performance roundup

8 out of 23 sectors were positive on price (down from 13 last week), and the average price return was -0.47% (down from +0.03% last week). The lead gainer was Taxable Munis (+3.86%), followed by Convertibles (+1.09%) and Limited Duration (+0.60%), while the weakest sectors by Price were MLPs (-4.47%), followed by Sector Equity (-1.75%) and Real Estate (-1.71%).

(Source: Stanford Chemist, CEFConnect)

7 out of 23 sectors were positive on NAV (down from 9 last week), while the average NAV return was -0.32% (down from -0.21% last week). The top sectors by NAV were Taxable Munis (+0.98%), Convertibles (+0.83%) and Multisector (+0.49%). The weakest sector by NAV was MLPs (-3.74%), Sector Equity (-1.45%) and Commodities (-0.66%).

(Source: Stanford Chemist, CEFConnect)

There were only three premium sectors this week, the leader was Taxable Munis (+4.04%), while the sector with the highest discount is MLPs (-23.49%). The average sector discount is -7.01% (down from -6.73% last week).

(Source: Stanford Chemist, CEFConnect)

The sector with the highest premium/discount increase was Taxable Munis (+2.88%), Real Estate (-1.36%) showed the lowest premium/discount decline. The average change in premium/discount was -0.13% (down from +0.17% last week).

(Source: Stanford Chemist, CEFConnect)

The sector with the highest average 1-year z-score is Taxable Munis (+1.15), followed by Single-state Munis (+0.51). The sector with the lowest average 1-year z-score was MLPs (-1.44), followed by Real Estate (-1.21). The average z-score is -0.25 (down from -0.23 last week).

(Source: Stanford Chemist, CEFConnect)

The sectors with the highest yields are MLPs (16.47%), Global Allocation (11.05%), Limited Duration (9.34%), Real Estate (9.02%), and Multisector Income (8.97%). Discounts and z-scores for the sectors are included for comparison. The average sector yield is +7.39% (same as 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

Oxford Lane Capital Corp

(OXLC)

-7.43%

19.57%

28.17%

-1.0

-5.48%

0.00%

Western Asset Invstm Grd Dfnd Opp Tr Inc

(IGI)

-7.16%

3.87%

1.48%

-0.1

-6.70%

-0.09%

Cornerstone Total Return Fund

(CRF)

-5.13%

20.20%

10.91%

0.8

-2.91%

1.58%

Neuberger Real Estate Securities Income

(NRO)

-4.88%

12.31%

-4.88%

0.0

-4.88%

0.00%

Cornerstone Strategic Value

(CLM)

-4.58%

20.44%

8.80%

0.6

-2.68%

1.42%

Special Opportunities

(SPE)

-4.42%

9.07%

-10.81%

-0.2

-3.81%

-0.14%

RiverNorth Opportunities Fund

(RIV)

-4.08%

14.80%

-2.93%

-0.1

-4.30%

-0.27%

Eagle Capital Growth

(GRF)

-4.01%

7.83%

-20.71%

-1.4

-1.17%

3.20%

BlackRock NY Municipal Income

(BNY)

-3.88%

4.34%

-8.06%

-0.1

-4.56%

-0.53%

PIMCO CA Municipal Income III

(PZC)

-3.78%

4.31%

4.34%

-0.4

-4.17%

-0.69%

(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

OFS Credit Company Inc

(OCCI)

9.11%

19.05%

2.63%

1.5

9.64%

0.00%

Gabelli Go Anywhere Trust

(GGO)

4.73%

1.83%

-6.18%

0.7

3.52%

-1.69%

BlackRock MuniYield AZ

(MZA)

4.55%

4.00%

3.66%

3.2

3.87%

-0.67%

Barings Participation Invs

(MPV)

4.54%

6.99%

-4.84%

-0.8

-2.56%

0.00%

Eaton Vance Float-Rate 2022 Target Term

(EFL)

4.28%

4.93%

-1.57%

0.6

4.65%

0.11%

Nuveen MO Quality Muni Inc

(NOM)

4.02%

3.26%

4.15%

0.9

3.56%

-0.43%

BlackRock Taxable Municipal Bond Trust

(BBN)

3.98%

5.07%

4.87%

1.9

5.12%

1.16%

Duff & Phelps Sel Enrg MLP Midstrm Enrg

(DSE)

3.54%

128.21%

-19.31%

-0.6

-0.55%

-4.92%

Nuveen Taxable Municipal Income

(NBB)

3.21%

4.85%

0.88%

2.8

4.28%

0.98%

The Central and Eastern Europe Fund

(CEE)

3.16%

6.64%

-15.24%

-0.3

-0.69%

-4.38%

(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

First Trust Spec Finance & Fincl Opp

(FGB)

-38.9%

0.135

0.0825

11.22%

0.33%

-0.6

54%

8/10/2020

8/21/2020

Templeton Emerg Mkts Income

(TEI)

-29.8%

0.0506

0.0355

5.56%

-14.60%

-1.0

134%

8/3/2020

8/14/2020

Ivy High Income Opportunities Fund

(IVH)

-10.0%

0.1

0.09

8.93%

-10.44%

-0.1

113%

8/3/2020

8/14/2020

Wells Fargo Util & High In

(ERH)

-7.4%

0.07809

0.07233

6.88%

5.00%

-0.4

45%

8/12/2020

9/11/2020

Apollo Tactical Income Fund Inc.

(AIF)

-5.6%

0.072

0.068

6.45%

-15.73%

-1.0

150%

8/6/2020

8/17/2020

Wells Fargo Global Dividend Opp Fd

(EOD)

-4.9%

0.14157

0.13464

11.81%

-12.31%

-1.4

11%

8/12/2020

9/11/2020

Voya Prime Rate Trust

(PPR)

-2.0%

0.0148

0.0145

3.94%

-6.95%

1.0

152%

8/3/2020

8/7/2020

Templeton Global Income

(GIM)

-1.9%

0.0155

0.0152

3.38%

-12.64%

-0.3

189%

8/3/2020

8/14/2020

Wells Fargo Multi-Sec Inc

(ERC)

-0.9%

0.09472

0.0939

9.86%

-6.85%

0.0

67%

8/12/2020

9/11/2020

Wells Fargo Inc Opp

(EAD)

-0.7%

0.05708

0.05668

9.01%

-11.49%

-0.5

78%

8/12/2020

9/11/2020

Boosters

Name

Ticker

Change

Previous

Current

Yield

Discount

z-score

Coverage

Announced

Ex-date

MFS® Intermediate Income

(MIN)

0.1%

0.02854

0.02856

8.88%

-3.74%

1.3

28%

8/3/2020

8/18/2020

MFS Special Value

(MFV)

0.2%

0.04314

0.04323

9.82%

0.57%

-0.9

28%

8/3/2020

8/18/2020

MFS® Government Markets Inc

(MGF)

0.3%

0.02928

0.02938

7.53%

-3.00%

0.6

29%

8/3/2020

8/18/2020

MFS® Intermediate High Income

(CIF)

0.7%

0.01871

0.01884

9.87%

-5.37%

-0.8

60%

8/3/2020

8/18/2020

MFS® Charter Income

(MCR)

0.9%

0.05774

0.05825

8.27%

-4.20%

1.0

52%

8/3/2020

8/18/2020

MFS Multimarket Income

(MMT)

1.2%

0.04074

0.04124

8.39%

-6.05%

0.2

58%

8/3/2020

8/18/2020

Delaware Investments Dividend & Income

(DDF)

2.7%

0.0526

0.054

7.62%

-4.60%

-1.4

41%

8/4/2020

8/20/2020

Delaware Enhanced Global Div and Inc

(DEX)

2.8%

0.0499

0.0513

6.93%

-10.21%

0.2

52%

8/4/2020

8/20/2020

Invesco PA Value

(VPV)

3.5%

0.0483

0.05

4.71%

-9.45%

-0.2

97%

8/3/2020

8/13/2020

Pioneer Floating Rate Trust

(PHD)

4.2%

0.06

0.0625

7.70%

-9.73%

0.5

92%

8/4/2020

8/18/2020

Pioneer Municipal High Income Advantage

(MAV)

5.9%

0.0425

0.045

4.93%

-10.24%

0.1

91%

8/4/2020

8/18/2020

Invesco Quality Municipal Income Trust

(IQI)

6.8%

0.0487

0.052

4.99%

-8.42%

0.0

91%

8/3/2020

8/13/2020

Eaton Vance Floating-Rate Income

(EFT)

7.0%

0.057

0.061

6.12%

-12.45%

-0.2

103%

8/3/2020

8/21/2020

Invesco Value Muni Income

(IIM)

7.1%

0.056

0.06

4.79%

-9.12%

-0.4

94%

8/3/2020

8/13/2020

Pioneer Diversified High Income

(HNW)

7.9%

0.095

0.1025

9.35%

-8.81%

0.7

98%

8/4/2020

8/18/2020

Invesco Adv Muni Inc II

(VKI)

8.1%

0.043

0.0465

5.05%

-7.99%

0.1

91%

8/3/2020

8/13/2020

Invesco Tr Inv Gr Muni

(VGM)

8.5%

0.0493

0.0535

5.05%

-8.29%

0.1

91%

8/3/2020

8/13/2020

Invesco Muni Opp

(VMO)

8.8%

0.0478

0.052

4.98%

-6.85%

0.6

92%

8/3/2020

8/13/2020

Invesco CA Value

(VCV)

10.5%

0.043

0.0475

4.58%

-8.39%

-0.1

97%

8/3/2020

8/13/2020

Eaton Vance Senior Income

(EVF)

14.8%

0.027

0.031

6.39%

-8.78%

0.9

115%

8/3/2020

8/12/2020

Fiduciary-Claymore Energy Infrastructure

(FMO)

50.8%

0.1625

0.245

11.14%

-24.40%

-1.8

0%

8/4/2020

8/13/2020

CEF analysis from around Seeking Alpha...

ADS Analytics presents What Goes In Our CEF Checklist (Aug. 18)

Alpha Gen Capital presents Weekly CEF Commentary Aug. 9, 2020: Some Opportunities Available (Aug. 18)

Dividend Seeker presents BKT: Market Forces Continue To Support Agency MBS (Aug. 16)

Faithful Steward Investing presents QQQX: Strong Tech Fund For Retirees - 6.11% Yield (Aug. 19)

*Juan de la Hoz presents QQQX: Strong Tech Fund For Retirees - 6.11% Yield (Aug. 19)

*Nick Ackerman presents SZC: Revisiting This Fund's Continued Transformation, Still A Buy (Aug. 17), These Are The 5 Funds I Bought In July (Aug. 18), BMEZ: Continuing To Weather The Pandemic Storm (Aug. 19)

*Stanford Chemist presents Weekly Closed-End Fund Roundup: August 9, 2020 (Aug. 18)

Tokyo Picker presents Adams Natural Resources: Short-Term Arbitrage Opportunity (Aug. 20)

*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: New Highs For The S&P And Nasdaq Are Met With Skepticism (Aug. 22)

Lance Roberts presents MacroView: March Was A Correction, Bear Market Still Lurks (Aug. 22)

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