Weekly Closed-End Fund Roundup: February 28, 2021
Summary
- 2 out of 23 CEF sectors positive on price and 2 out of 23 sectors positive on NAV last week.
- MLPs lead, while Asia equity lags.
- Some Nuveen funds increase distributions due to adoption of a level distribution policy.
- I do much more than just articles at CEF/ETF Income Laboratory: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »
Author's note: This article was released to CEF/ETF Income Laboratory members on March 2, 2021. 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, February 26th, 2021.
Weekly performance roundup
2 out of 23 sectors were positive on price (down from 7 last week) and the average price return was -1.50% (down from -0.60% last week). The lead gainer was MLPs (+0.89%), followed by New York Munis (+0.14%) and Senior Loans (-0.03%), while the weakest sectors by Price were Asia Equity (-4.59%), followed by Convertibles (-3.41%) and Emerging Market Income (-3.31%).
(Source: Stanford Chemist, CEFConnect)
2 out of 23 sectors were positive on NAV (same as last week), while the average NAV return was -1.49% (down from -0.55% last week). The top sectors by NAV were Commodities (+0.29%), Senior Loans (+0.09%) and MLPs (-0.33%). The weakest sectors by NAV were Asia Equity (-3.57%), Convertibles (-3.21%) and Sector Equity (-2.73%).
(Source: Stanford Chemist, CEFConnect)
There were only three premium sectors this week, the leader was Multisector Income (+3.08%), while the sector with the highest discount is MLPs (-15.47%). The average sector discount is -4.89% (up from -4.98% last week).
(Source: Stanford Chemist, CEFConnect)
The sector with the highest premium/discount increase was New York Munis (+2.11%), Taxable Munis (-2.52%) showed the lowest premium/discount decline. The average change in premium/discount was +0.10% (up from -0.05% last week).
(Source: Stanford Chemist, CEFConnect)
The sector with the highest average 1-year z-score is Real Estate (+1.72), followed by New York Munis (+1.50). The sector with the lowest average 1-year z-score was Commodities (-0.47), followed by Taxable Munis (-0.10). The average z-score is +0.79 (up from +0.75 last week).
(Source: Stanford Chemist, CEFConnect)
The sectors with the highest yields are Global Allocation (8.64%), Limited Duration (8.60%) and Multisector Income (8.16%). Discounts and z-scores for the sectors are included for comparison. The average sector yield is +6.83% (down from +6.93% 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 |
Flaherty & Crumrine Preferred Income | (PFD) | -6.49% | 5.88% | 22.32% | 0.4 | -5.98% | -0.97% |
XAI Octagon FR & Alt Income Term Trust | (XFLT) | -5.43% | 10.55% | 6.06% | 1.0 | -2.67% | 2.33% |
Nuveen Select Tax Free Inc 3 | (NXR) | -4.68% | 3.20% | -1.98% | 0.0 | -6.21% | -1.71% |
Nuveen CA Municipal Value | (NCA) | -4.49% | 2.12% | -4.22% | -0.3 | -6.16% | -1.75% |
Flaherty & Crumrine Preferred Income Opp | (PFO) | -4.03% | 6.56% | 4.63% | -0.1 | -4.68% | -1.00% |
Nuveen Municipal Value | (NUV) | -3.83% | 3.40% | 3.21% | 0.9 | -5.20% | -1.67% |
BlackRock Resources&Commodities Strategy | (BCX) | -3.61% | 5.35% | -4.95% | 2.3 | -0.45% | 3.33% |
Eagle Point Credit Company Inc. | (ECC) | -3.40% | 8.43% | -7.58% | 0.0 | -4.31% | 0.00% |
Nuveen Select Tax Free Income | (NXP) | -3.36% | 3.23% | 3.87% | 0.6 | -3.43% | -1.69% |
BlackRock Taxable Municipal Bond Trust | (BBN) | -3.28% | 5.69% | 0.93% | -0.3 | -3.67% | -0.52% |
(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) | 10.11% | 7.43% | 106.92% | 1.6 | 0.25% | -4.65% |
Voya Infrastructure Industrials And Materials | (IDE) | 7.68% | 7.79% | -4.31% | 4.4 | 6.72% | -1.84% |
Tekla World Healthcare Fund | (THW) | 6.15% | 8.16% | 18.55% | 2.8 | 2.85% | -2.47% |
BlackRock NY Municipal Income | (BNY) | 6.05% | 4.44% | 2.35% | 3.1 | 4.23% | -1.91% |
Eaton Vance NY Muni Income | (EVY) | 5.71% | 3.85% | -3.25% | 3.1 | 3.86% | -2.25% |
Brookfield Real Assets Income Fund Inc. | (RA) | 5.47% | 8.03% | 2.64% | 3.8 | 4.44% | -1.10% |
Aberdeen Australia Equity Fund | (IAF) | 5.23% | 10.83% | -4.81% | 3.8 | 1.28% | -4.28% |
DNP Select Income | (DNP) | 5.13% | 7.54% | 22.28% | 0.6 | -1.33% | -5.46% |
Duff & Phelps Utility and Infra Fund | (DPG) | 5.05% | 10.82% | 3.74% | 2.8 | 0.77% | -4.12% |
First Trust Energy Income And Growth | (FEN) | 4.47% | 9.74% | -2.22% | 2.2 | 1.32% | -3.30% |
(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 |
Templeton Emerg Mkts Income | (TEI) | -15.0% | 0.0466 | 0.0396 | 6.36% | -12.22% | 0.8 | 91% | 2/1/2021 | 2/12/2021 |
Templeton Global Income | (GIM) | -12.4% | 0.0161 | 0.0141 | 3.08% | -7.11% | 1.8 | 141% | 2/1/2021 | 2/12/2021 |
Nuveen Credit Strategies Income Fund | (JQC) | -5.6% | 0.0767 | 0.0724 | 13.51% | -9.18% | 1.1 | 43% | 2/1/2021 | 2/11/2021 |
Eaton Vance Float-Rate 2022 Target Term | (EFL) | -5.6% | 0.036 | 0.034 | 4.39% | -1.28% | 1.1 | 99% | 2/1/2021 | 2/10/2021 |
Eaton Vance Senior Income | (EVF) | -2.8% | 0.036 | 0.035 | 6.32% | -3.62% | 1.5 | 77% | 2/1/2021 | 2/10/2021 |
EV Floating-Rate Income Plus Fund | (EFF) | -1.6% | 0.063 | 0.062 | 4.73% | -5.05% | 1.3 | 94% | 2/1/2021 | 2/18/2021 |
Eaton Vance Floating-Rate Income | (EFT) | -1.6% | 0.064 | 0.063 | 5.42% | -4.45% | 1.8 | 94% | 2/1/2021 | 2/18/2021 |
Eaton Vance Senior Floating Rate | (EFR) | -1.5% | 0.066 | 0.065 | 5.80% | -6.54% | 1.6 | 97% | 2/1/2021 | 2/18/2021 |
MFS Government Markets Income | (MGF) | -0.7% | 0.02854 | 0.02834 | 7.68% | -3.06% | 0.1 | 32% | 2/1/2021 | 2/16/2021 |
MFS Intermediate Income | (MIN) | -0.5% | 0.02796 | 0.02782 | 8.86% | -2.08% | 1.7 | 27% | 2/1/2021 | 2/16/2021 |
MFS Charter Income | (MCR) | -0.3% | 0.05953 | 0.05936 | 8.39% | -2.75% | 0.8 | 53% | 2/1/2021 | 2/16/2021 |
MFS Multimarket Income | (MMT) | -0.1% | 0.04288 | 0.04283 | 8.24% | -1.27% | 1.9 | 58% | 2/1/2021 | 2/16/2021 |
Boosters
Name | Ticker | Change | Previous | Current | Yield | Discount | z-score | Coverage | Announced | Ex-date |
MFS Intermediate High Income | (CIF) | 0.2% | 0.01966 | 0.01969 | 9.27% | 4.08% | 1.6 | 59% | 2/1/2021 | 2/16/2021 |
MFS Special Value | (MFV) | 0.3% | 0.04537 | 0.04549 | 8.92% | 13.75% | 2.0 | 27% | 2/1/2021 | 2/16/2021 |
DWS Strategic Muni Income | (KSM) | 2.3% | 0.044 | 0.045 | 4.62% | -6.85% | 2.2 | 102% | 2/8/2021 | 2/17/2021 |
Invesco Trust for Investment Grade Muni | (VGM) | 2.8% | 0.0535 | 0.055 | 4.99% | -4.75% | 2.0 | 95% | 2/1/2021 | 2/11/2021 |
Delaware Enhanced Global Dividend and Income | (DEX) | 2.9% | 0.0556 | 0.0572 | 7.16% | -9.88% | 0.5 | 41% | 2/1/2021 | 2/18/2021 |
Invesco Municipal | (VKQ) | 2.9% | 0.052 | 0.0535 | 5.01% | -4.97% | 1.5 | 95% | 2/1/2021 | 2/11/2021 |
Delaware Investments Dividend & Income | (DDF) | 3.9% | 0.0585 | 0.0608 | 7.62% | -4.01% | -0.2 | 35% | 2/2/2021 | 2/18/2021 |
Nuveen Senior Income | (NSL) | 11.5% | 0.0305 | 0.034 | 7.40% | -9.08% | 1.7 | 94% | 2/25/2021 | 3/12/2021 |
Aberdeen Australia Equity Fund Inc | (IAF) | 15.4% | 0.13 | 0.15 | 10.83% | -4.81% | 3.8 | 2% | 2/9/2021 | 2/18/2021 |
Nuveen Short Duration Credit Opps Fund | (JSD) | 17.7% | 0.0735 | 0.0865 | 7.49% | -10.51% | 1.2 | 79% | 2/25/2021 | 3/12/2021 |
Nuveen Floating Rate Income | (JFR) | 19.6% | 0.0485 | 0.058 | 7.45% | -9.50% | 1.4 | 79% | 2/25/2021 | 3/12/2021 |
Nuveen Floating Rate Income Opportunity | (JRO) | 21.1% | 0.0475 | 0.0575 | 7.46% | -9.40% | 1.6 | 75% | 2/25/2021 | 3/12/2021 |
Nuveen Mortgage and Income Fund | (JLS) | 22.1% | 0.068 | 0.083 | 4.91% | -10.11% | -0.1 | 100% | 2/25/2021 | 3/12/2021 |
Nuveen Multi-Market Income Fund | (JMM) | 22.4% | 0.0245 | 0.03 | 5.00% | -7.81% | 0.7 | 83% | 2/25/2021 | 3/12/2021 |
Nuveen Global High Income Fund | (JGH) | 32.2% | 0.0855 | 0.113 | 8.77% | -9.94% | 1.1 | 85% | 2/25/2021 | 3/12/2021 |
CEF analysis from around Seeking Alpha...
ADS Analytics presents High Yield CEF Sector Update (Feb. 22), Flaherty Preferreds CEFs: A Look At Consistent Outperformers (Feb. 23)
Alpha Gen Capital presents Looking At 2 High-Yield Options: KIO And IVH (Feb. 25), Weekly Closed-End Fund Analysis: BlackRock Muni Mergers Not Risk Free (Feb. 25), CEF Report: Party Like It's February 2020 (Feb. 26)
Bridger Research presents ETY Could Perform Better In 2020 Without Written Options Strategy (Feb. 21)
Dividend Seeker presents I'm Still Holding BKT, But I'm Lukewarm On New Positions (Feb. 21)
Double Dividend Stocks presents Convertible Bonds On Fire: 8% Monthly Yield, 8% Discount - Calamos Convertible And High Income Fund (Feb. 26)
Michael A. Gayed presents PIMCO Dynamic Income Fund: Quality Fund With An Attractive Yield (Feb. 21), Liberty All-Star Equity Fund: Steady Income (Feb. 25)
*Nick Ackerman presents HYI: An Attractive Unleveraged High Yield Closed-End Fund (Feb. 21), KMF: Deep Discount On This Fund With Potential (Feb. 21), CSQ: Distribution Boost Brings This Fund's Yield To 7.22% (Feb. 21), FFA: A Discounted Covered Call Fund Beating The 'Gold Standard' (Feb. 22), TEAF: A Unique, Sustainable And Social Infrastructure Play Looking Like A Buy (Feb. 23), First Trust Energy Infrastructure Fund: Deep Discount On This Energy And Utility Fund (Feb. 23), Closed-End Funds: 2 Tax-Advantaged Choices From Nuveen (Feb. 25), JCE: Nuveen's Efforts In A Call Writing Fund Looks Appealing (Feb. 26)
Power Hedge presents FIF: Earn Income Off Of Energy's Future With This CEF (Feb. 26)
*Stanford Chemist presents Arbitrate Opportunity In BlackRock New York Muni CEF Reorganization (Feb. 22)
*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 The Week On Wall Street: Interest Rates And Inflation (Feb. 26)
Lance Roberts presents MacroView: Powell Changes The Rules On QE (Feb. 27)
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This article was written by
Stanford Chemist is a scientific researcher by training. For the past decade he has been providing analysis and evidence-based ways of generating profitable investments with CEFs and ETFs. He leads the investing group CEF/ETF Income Laboratory.
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