Double Down On Alpha In CEF Allocation

Aug. 10, 2021 11:06 AM ETAIF, CIK, MMD, NZF, OIA7 Comments


  • A lack of further yield compression and low yields suggest that future fixed-income returns are likely to be well below their historic levels.
  • This suggests that investors should seek out funds that are able to deliver additional alpha through structural features or active management.
  • We highlight a number of different alpha metrics as well as CEFs, which look strong across them, such as AIF, CIK, NZF and more.
  • I do much more than just articles at Systematic Income: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

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This article was first released to Systematic Income subscribers and free trials on 3-August.

Despite a couple of bumps on the road, the last couple of decades have been very friendly to CEF investors. On the fixed-income side, CEF

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This article was written by

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Income investing across BDCs, CEFs, ETFs, preferreds, baby bonds and more.

At Systematic Income our aim is to build robust Income Portfolios with mid-to-high single digit yields and provide investors with unique Interactive Tools to cut through the wealth of different investment options across BDCs, CEFs, ETFs, mutual funds, preferred stocks and more. Join us on our Marketplace service Systematic Income.

Our background is in research and trading at several bulge-bracket global investment banks along with technical savvy which helps to round out our service. 

Disclosure: I/we have a beneficial long position in the shares of AIF, OIA, NZF, CIK either through stock ownership, options, or other derivatives. 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.

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