Weekly Closed-End Fund Roundup: Sept. 26, 2021
Summary
- Three out of 23 CEF sectors positive on price and six out of 23 sectors positive on NAV last week.
- GOF/GGM/GPM merger has been approved.
- RIV announces a new rights offering.
- This idea was discussed in more depth with members of my private investing community, CEF/ETF Income Laboratory. Learn More »
MF3d/E+ via Getty Images
Author's note: This article was released to CEF/ETF Income Laboratory members on Sept. 27, 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 also will 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, Sept. 24, 2021.
Weekly performance roundup
Three out of 23 sectors were positive on price (down from seven last week) and the average price return was -0.64% (up from -0.76% last week). The lead gainer was MLPs (+1.42%) followed by Taxable Munis (+0.40%) and U.S. Equity (+0.18%), while the weakest sectors by Price were Real Estate (-2.25%), followed by Global Allocation (-1.71%) and Emerging Market Income (-1.53%).
(Source: Stanford Chemist, CEFConnect)
Six out of 23 sectors were positive on NAV (up from 2 last week), while the average NAV return was -0.27% (up from -0.54% last week). The top sectors by NAV were MLPs (+0.89%), Convertibles (+0.42%) and U.S. Equity (+0.35%). The weakest sector by NAV was Emerging Market Income (-1.98%), Real Estate (-0.79%) and Commodities (-0.70%).
(Source: Stanford Chemist, CEFConnect)
The sector with the highest premium was Limited Duration (+4.80%), while the sector with the widest discount is MLPs (-15.15%). The average sector discount is -2.05% (down from -1.60% last week).
(Source: Stanford Chemist, CEFConnect)
The sector with the highest premium/discount increase was Taxable Munis (+1.14%), while Convertibles (-1.68%) showed the lowest premium/discount decline. The average change in premium/discount was -0.43% (down from -0.15% last week).
(Source: Stanford Chemist, CEFConnect)
The sector with the highest average 1-year z-score is Single-state Munis (+1.42), followed by Limited Duration (+1.30). The sector with the lowest average 1-year z-score was Commodities (-0.24), followed by Asia Equity (-0.16). The average z-score is +0.73 (down from +0.88 last week).
(Source: Stanford Chemist, CEFConnect)
The sectors with the highest yields are Asia Equity (9.54%), Limited Duration (8.75%), Emerging Market Income (7.94%), Global Allocation (7.93%), and Multisector Income (7.89%). Discounts and z-scores for the sectors are included for comparison. The average sector yield is +6.26% (up from +6.19% 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 |
High Income Securities | (PCF) | -10.71% | 10.42% | -3.23% | -0.2 | -10.65% | -0.64% |
Aberdeen Global Income Fund, Inc. | (FCO) | -9.32% | 10.18% | 28.11% | 0.5 | -7.51% | -0.77% |
Guggenheim Strategic Opp Fund | (GOF) | -8.59% | 11.11% | 15.51% | -0.7 | -7.04% | -0.12% |
Wells Fargo Util & High In | (ERH) | -7.01% | 6.65% | 3.53% | -0.3 | -7.37% | -1.09% |
BlackRock MuniAssets | (MUA) | -5.61% | 3.80% | 2.79% | -0.3 | -5.44% | -0.27% |
Guggenheim Enhanced Equity Income Fund | (GPM) | -5.40% | 4.97% | 8.54% | 2.1 | -3.88% | 0.91% |
RiverNorth Flexible Municipal Income II | (RFMZ) | -5.17% | 5.89% | -0.05% | 0.0 | -5.17% | -0.24% |
Western Asset Municipal High Income | (MHF) | -4.78% | 3.26% | -1.11% | 0.7 | -5.09% | -0.49% |
BNY Mellon Muni Bond Infrastructure Fund | (DMB) | -4.72% | 4.02% | 7.92% | 2.6 | -4.47% | -0.27% |
Federated Premier Municipal Income | (FMN) | -4.54% | 4.19% | -1.46% | 1.0 | -4.97% | -0.57% |
(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) | 6.57% | 7.54% | 89.07% | 0.5 | 3.11% | -0.47% |
OFS Credit Company, Inc. | (OCCI) | 3.49% | 16.41% | -0.81% | -0.2 | 3.47% | 0.00% |
Neuberger Berman Municipal | (NBH) | 3.32% | 4.43% | 11.09% | 2.2 | 2.79% | -0.26% |
MFS Intermediate High Income | (CIF) | 3.29% | 7.41% | 27.98% | 1.3 | 2.64% | 0.00% |
Western Asset Income | (PAI) | 2.67% | 3.37% | 3.83% | 3.0 | 1.85% | -0.93% |
Western Asset Mortgage Opp Fund Inc. | (DMO) | 2.49% | 8.35% | 4.39% | 1.7 | 1.25% | -1.21% |
Western Asset Invstm Grd Dfnd Opp Tr Inc | (IGI) | 2.34% | 3.43% | 6.50% | 3.4 | 1.48% | -0.86% |
Center Coast Brookfield MLP & NRG Inf Fd | (CEN) | 1.95% | 6.62% | -19.81% | 2.4 | 4.13% | 1.62% |
JHancock Financial Opportunities | (BTO) | 1.92% | 5.46% | 11.05% | 2.8 | 1.41% | -1.35% |
Salient Midstream & MLP Fund | (SMM) | 1.89% | 4.39% | -17.46% | 3.3 | 4.76% | 2.38% |
(Source: Stanford Chemist, CEFConnect)
Recent corporate actions
These are from the past month. Any new news in the past week has a bolded date:
August 9, 2021 | Cohen & Steers MLP Income and Energy Opportunity Fund, Inc. Announces Liquidation. Cohen & Steers MLP Income and Energy Opportunity Fund, Inc. (MIE), successfully completed its liquidation following the close of business on August 6, 2021. The liquidation was performed consistent with the Fund's previously announced liquidation plans. The Fund is returning an extended net asset value of $3.9118 per share to common shareholders as a liquidating distribution.
Upcoming corporate actions
These are from the past month. Any new news in the past week has a bolded date:
September 22, 2021 | RiverNorth Opportunities Fund, Inc. Announces Rights Offering. RiverNorth Opportunities Fund, Inc. (RIV) (the "Fund") announces that its Board of Directors (the "Board") has authorized and set the terms of an offering to the Fund's stockholders of rights to purchase additional shares of common stock of the Fund. In this offering, the Fund will issue transferable subscription rights ("Rights") to its stockholders of record as of October 1, 2021 (the "Record Date" and such stockholders, "Record Date Stockholders") allowing the holder to subscribe for new shares of common stock of the Fund (the "Primary Subscription"). Record Date Stockholders will receive one Right for each share of common stock held on the Record Date. For every three Rights held, a holder of Rights may buy one new share of common stock of the Fund. Record Date Stockholders who exercise their Rights will not be entitled to distributions payable during October 2021 on shares issued in connection with the Rights Offering. The Rights are expected to be listed and tradable on the New York Stock Exchange ("NYSE") under the ticker: RIV RT. Record Date Stockholders who fully exercise all Rights initially issued to them in the Primary Subscription will be entitled to buy those shares of common stock that are not purchased by other Record Date Stockholders. The subscription price per share of common stock will be determined based upon a formula equal to 97.5% of the reported net asset value or 95% of the market price per share of common stock, whichever is higher on the Expiration Date (as defined below). Market price per share of common stock will be determined based on the average of the last reported sales price of a share of common stock on the NYSE for the five trading days preceding (and not including) the Expiration Date. The subscription period will expire on November 5, 2021, unless extended by the Board (the "Expiration Date").
September 14, 2021 | Guggenheim Investments Announces Shareholder Approval of the Mergers of GPM, GGM and GOF. Guggenheim Investments announced today that shareholders approved the mergers (each, a “Merger” and together, the “Mergers”) of Guggenheim Enhanced Equity Income Fund (GPM) and Guggenheim Credit Allocation Fund (GGM) with and into Guggenheim Strategic Opportunities Fund (GOF), each a closed-end fund (each, a “Fund” and together, the “Funds”). Subject to the satisfaction of certain customary closing conditions, the Mergers are expected to be effective with the open of the New York Stock Exchange on October 25, 2021.
Acquired Funds Ticker Acquiring Fund Ticker Guggenheim Enhanced Equity Income Fund GPM Guggenheim Strategic Opportunities Fund GOF Guggenheim Credit Allocation Fund GGM At the joint special meeting of shareholders (the “Special Meeting”) held on August 24, 2021, shareholders of GPM and GGM voted to approve the Mergers. The Special Meeting was adjourned with respect to GOF in order to allow GOF shareholders additional time to vote on the Mergers. At the reconvened Special Meeting of shareholders of GOF, held on September 14, 2021, shareholders voted to approve the Mergers and the issuance of additional common shares of GOF. Upon closing of the Mergers, GOF will continue to be subject to its current investment objectives, policies and restrictions. Shareholders of GPM and GGM will receive newly issued common shares of GOF, the aggregate net asset value (not the market value) of which will equal the aggregate net asset value of their common shares held immediately prior to the Mergers.
September 3, 2021 | Invesco Advisers Announces Details of Tender Offer and Reorganization for Invesco Dynamic Credit Opportunities Fund. Invesco Advisers, Inc., a subsidiary of Invesco Ltd. (NYSE: IVZ), announced today additional details of the previously announced tender offer and reorganization for Invesco Dynamic Credit Opportunities Fund (VTA) (the "Fund").
- REORGANIZATION. At the Fund's Annual Meeting of Shareholders held on September 3, 2021, Fund shareholders approved a proposal to reorganize the Fund into a newly created closed-end interval fund (the "Interval Fund"). The reorganization had previously been approved by the Fund's Board of Trustees (the "Board"). The Interval Fund will offer four classes of shares (Class A, Class AX, Class R and Class Y) and will provide liquidity to shareholders in the form of quarterly repurchase offers. Fund shareholders will receive Class AX shares of the Interval Fund priced daily at the Interval Fund's net asset value ("NAV"). The Interval Fund will be managed with the same investment objective and similar investment strategy as the Fund, all as described in the proxy statement/prospectus, which has been filed publicly. It is anticipated that the closing of the reorganization will occur on or around October 2021 subject to the satisfaction of applicable regulatory requirements and customary closing conditions.
- TENDER OFFER. The Fund will conduct a tender offer for cash of up to 12,596,028 of the Fund's outstanding common shares of beneficial interest ("common shares"), representing 20% of its common shares. The Fund's tender offer will commence on Wednesday, September 8, 2021, and will expire, unless extended, at 11:59 p.m., New York City time, on Thursday, October 7, 2021. Subject to various terms and conditions described in offering materials to be distributed to shareholders: (1) purchases will be made at a price per share equal to 98.5% of the Fund's NAV per share as of the close of trading on the next trading day after the expiration of the offer; and (2) if more shares are tendered than the amount the Board has authorized to purchase, the Fund will purchase a number of shares equal to the offer amount on a prorated basis. [SC-TO-I Filing]
August 13, 2021 | RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. Announces Transferable Rights Offering. RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. (the “Fund”) (OPP) announces that its Board of Directors (the “Board”) has authorized and set the terms of an offering to the Fund’s stockholders of rights to purchase additional shares of common stock of the Fund. In this offering, the Fund will issue transferable subscription rights (“Rights”) to its stockholders of record as of September 7, 2021 (the “Record Date” and such stockholders “Record Date Stockholders”) allowing the holder to subscribe for new shares of common stock of the Fund (the “Primary Subscription”). Record Date Stockholders will receive one Right for each share of common stock held on the Record Date. For every three Rights held, a holder of Rights may buy one new share of common stock of the Fund. The Rights are expected to be listed and tradable on the New York Stock Exchange (“NYSE”) under the ticker: OPP.RT. Record Date Stockholders who fully exercise all Rights initially issued to them in the Primary Subscription will be entitled to buy those shares of common stock that are not purchased by other Record Date Stockholders. The shares of common stock issued as a result of the rights offering will not be record date shares for the Fund’s monthly distributions to be paid in August or September 2021 and therefore will not be entitled to those distributions. The subscription price per share of common stock will be determined based upon a formula that will be no less than equal to 95% of the market price per share of common stock or 97.5% of the reported net asset value, whichever is higher on the Expiration Date (as defined below). Market price per share of common stock will be determined based on the average of the last reported sales price of a share of common stock on the NYSE for the five trading days preceding (and not including) the Expiration Date. The subscription period will expire on October 1, 2021, unless extended by the Board (the “Expiration Date”). [424B2 Filing]
August 9, 2021 | Liberty All-Star® Equity Fund Announces Rights Offering. The Board of Trustees (the "Board") of Liberty All-Star® Equity Fund (USA) (the "Fund") has authorized and set the terms of an offering to the Fund's shareholders of rights to purchase additional shares of the Fund. Shareholders on a record date to be established by the Fund's Board would be issued non-transferable rights entitling them to subscribe for one additional share for every ten shares held (the "Primary Subscription"), with the right to subscribe for additional shares not subscribed for by others in the Primary Subscription. If such over-subscription requests exceed the number of shares available, the Fund may, in its sole discretion, elect to issue additional shares in an amount of up to 25% of the shares issued in the Primary Subscription. The subscription price per share will be 95% of the reported net asset value or market price per share, whichever is lower on the expiration date. Market price per share will be determined based on the average of last reported sales prices of a share on the New York Stock Exchange on the expiration date and the four trading days preceding the expiration date.
August 6, 2021 | PIMCO Closed-End Funds Announce Shareholder Approval of Proposed Reorganizations. At a joint special meeting earlier today, shareholders of PIMCO Dynamic Income Fund (PDI) and PIMCO Income Opportunity Fund (PKO) approved the proposals necessary for PIMCO Dynamic Credit and Mortgage Income Fund (PCI) and PKO to reorganize with and into PDI. (No action was needed from shareholders of PCI.) In connection with the reorganizations, PIMCO has agreed to a 75% management fee waiver for PKO that will be in effect for two months following today’s approvals. In addition, PDI’s annual management fee rate will decrease from 1.15% to 1.10% of its average daily total managed assets effective as of the date of the closing of the reorganization of PCI into PDI. In light of the existing similarities in the Funds’ investment strategies and holdings, PIMCO generally does not expect to restructure PKO’s or PCI’s portfolios or reposition their holdings to a significant extent prior to the reorganizations in order to align with PDI’s investment strategies. However, as of today through the closing of both reorganizations, PKO and PCI will be in a “transition period” during which PIMCO may need to reposition the assets of PKO and PCI to align with the investment strategies of PDI and prepare to transfer the assets of PKO and PCI. During this time, PKO and PCI may not be pursuing their investment objective and strategies, and limitations on permissible investments and investment restrictions will not apply. The reorganizations are currently expected to occur in approximately two to three months (and in any event not earlier than in two months), subject to PIMCO’s market outlook and operational considerations and the satisfaction of applicable regulatory requirements and customary closing conditions.
May 14, 2021 | Gabelli Go Anywhere Trust Announces Intention to Redeem. The Board of Trustees of The Gabelli Go Anywhere Trust (GGO) (the “Fund”) declared a $0.05 per share cash distribution payable on June 23, 2021 to common shareholders of record on June 16, 2021. In accordance with the terms of the Fund’s Declaration of Trust, the Fund, not later than 30 days prior to the fifth anniversary of the closing date of the offering (September 15, 2016), will commence a cash tender offer (the “Fifth Anniversary Tender Offer”) for any and all of the common shares at a price per common share determined by the Board of Trustees and expressed as a percentage (but not less than 95%) of the net asset value per common share. Prior to purchasing common shares tendered pursuant to the Fifth Anniversary Tender Offer, the Fund will, pursuant to the terms of the Series A Cumulative Puttable and Callable Preferred Shares (the “Series A Preferred Shares”), redeem any amount of Series A Preferred Shares necessary to ensure that the Fund will have “asset coverage,” as defined in the Investment Company Act of 1940, of at least 200% for the Series A Preferred Shares after deducting the purchase price for the common shares to be purchased in the Fifth Anniversary Tender Offer. In addition, the Fund intends, upon notice, to redeem the Series A Preferred Shares at a price equal to the liquidation preference ($40.00) per share plus accumulated but unpaid distributions through the date of redemption.
April 23, 2021 | Nuveen Multi-Asset Funds Announce Proposed Reorganizations. The Board of Trustees of Nuveen Diversified Dividend and Income Fund (JDD), Nuveen Tax-Advantaged Total Return Strategy Fund (JTA), and Nuveen Tax-Advantaged Dividend Growth Fund (JTD) have approved a proposal to reorganize the funds. The proposed reorganizations, if approved by shareholders, would combine JDD, JTA, and JTD into a single fund with a new investment mandate. The combined fund would continue employing a multi-asset strategy, but would more dynamically allocate its portfolio with the objective of seeking total return though high current income and capital appreciation. [Shareholder meeting to be held on August 19, 2021]
Recent activist or other CEF news
These are from the past month. Any new news in the past week has a bolded date:
August 31, 2021 | RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. Announces Results of Shareholder Vote. RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. (the “Fund”) (OPP) announced the results of its shareholder meeting of August 27, 2021. At that meeting, shareholders were asked to vote on a proposal, pursuant to the Fund’s Articles of Incorporation, to convert the Fund from its current structure as a closed-end investment company to an open-end investment company. Shareholders voted against the proposal, and the Fund will continue in its current closed-end investment company structure.
August 26, 2021 | Thomas J. Herzfeld Advisors, Inc. Urges Shareholders to Vote AGAINST The Highland Income Fund (NYSE: HFRO) Proposal. Thomas J. Herzfeld Advisors, Inc. (the “TJH”) today announced that it has submitted written materials pursuant to Rule 14a-6[G](1) promulgated under the Securities Exchange Act of 1934. Those written materials consist of an open letter to shareholders of The Highland Income Fund (NYSE: HFRO) urging shareholders of HFRO to vote AGAINST a management proposal to convert the closed end fund into an unregulated holding company. [Full text of letter]
August 24, 2021 | Highland Income Fund (HFRO) Announces Adjournment of Special Meeting of Shareholders. The Highland Income Fund (HFRO) (“HFRO” or the “Fund”), a closed-end fund managed by Highland Capital Management Fund Advisors, L.P. (the “Adviser”), today announced that the special meeting of shareholders (“Special Meeting”) held on August 20, 2021 has been adjourned to provide shareholders with additional time to consider the proposal to convert the Fund to a diversified holding company. The Special Meeting will reconvene on September 24, 2021 at 8:30 a.m. CDT. At the Special Meeting, shareholders are being asked to vote on the proposal to convert the Fund from a registered investment company to a diversified holding company and to amend certain fundamental investment restrictions (collectively, the “Business Change Proposal”), and if the Business Change Proposal is approved, to approve the amendment and restatement of the Fund’s Agreement and Declaration of Trust (together with the Business Change Proposal, the “Proposals”). Since announcing the conversion, the Adviser has continuously collected feedback from investors, which it has used to refine the Proposals—adding features intended to deliver additional benefits to shareholders. Those include the addition of a tender offer, which was announced on August 13, 2021. Under the terms of the tender offer, the Fund will purchase for cash up to $50 million in aggregate value of Common Shares at a price equal to 95% of the net asset value per Common Share as of the close of business on the business day before the tender offer expires (the “Tender Offer”). The Tender Offer is contingent upon the Fund obtaining shareholder approval of the Proposals. The Proposals aim to increase shareholder value and better position HFRO in the current and future market environment. The Fund’s Board of Trustees (the “Board”), a majority of the members of which are not interested persons of the Fund, reviewed the Proposals at length and believes they are in the best interest of shareholders. As such, the Board, even prior to the Tender Offer announcement, unanimously recommended that shareholders vote “FOR” the Proposals. The updates to the Proposals have been well received, and the Adviser expects the Tender Offer to garner further support from HFRO shareholders. The Adviser created additional materials to reflect the changes to the Proposals and feedback from investors. Those materials, which were filed with the Securities and Exchange Commission (“SEC”), include information on the Tender Offer and updates on the conversion process. The adjournment of the Special Meeting provides additional time for shareholders to consider the updates made to the Proposals and review all recent materials before submitting their vote.
August 17, 2021 | Highland Income Fund (HFRO) Receives Approval for Tender Offer as Part of Holding Company Conversion. The Highland Income Fund (HFRO) (“HFRO” or the “Fund”), a closed-end fund managed by Highland Capital Management Fund Advisors, L.P. (the “Adviser”), today announced that it received unanimous approval from the Fund’s Board of Trustees (the “Board”) to conduct a tender offer as a part of its proposal to convert the Fund to a diversified holding company. Under the terms of the tender offer, the Fund will purchase for cash up to $50 million in aggregate value of Common Shares at a price equal to 95% of the net asset value per Common Share as of the close of business on the business day before the tender offer expires (the “Tender Offer”). The Tender Offer is contingent upon the Fund obtaining shareholder approval of the Proposals (as defined below) at the special meeting of shareholders to be held on August 20, 2021, at 8:30 a.m. CDT (the “Special Meeting”). At the Special Meeting, shareholders are being asked to vote on the proposal to convert the Fund from a registered investment company to a diversified holding company and to amend certain fundamental investment restrictions (collectively, the “Business Change Proposal”), and if the Business Change Proposal is approved, to approve the amendment and restatement of the Fund’s Agreement and Declaration of Trust (together with the Business Change Proposal, the “Proposals”).
August 13, 2021 | Highland Income Fund (HFRO) Announces Tender Offer as Part of Holding Company Conversion Proposal. The Highland Income Fund (HFRO) (“HFRO” or the “Fund”), a closed-end fund managed by Highland Capital Management Fund Advisors, L.P. (the “Adviser”), today announced an update to its proposal to convert the Fund to a diversified holding company. The Adviser has recommended that the Fund’s Board of Trustees (the “Board”) approve a tender offer, which would be carried out in addition to the existing buyback program and other share purchase commitments. Under the proposed tender offer, the Fund will purchase for cash up to $50 million in aggregate value of Common Shares at a price equal to 95% of the net asset value per Common Share as of the close of business on the business day before the tender offer expires (the “Tender Offer”). The Tender Offer will be contingent upon the Fund obtaining shareholder approval of the Proposals at the special meeting of shareholders (the “Special Meeting”), and upon obtaining the Board’s approval for the Tender Offer. The Tender Offer is contingent upon both Board approval and the Fund obtaining shareholder approval at the Special Meeting, which is scheduled to take place on August 20, 2021, at 8:30 a.m. CDT to consider the conversion. At the Special Meeting, shareholders are being asked to vote on the proposal to convert the Fund to a diversified holding company and to amend certain fundamental investment restrictions (the “Business Change Proposal”), and if approved, to approve the amendment and restatement of the Fund’s Agreement and Declaration of Trust (together with the Business Change Proposal, the “Proposals”). The Tender Offer will be separate from and carried out in addition to the Company Buyback Program and the Management Purchase Plan. If the Proposals are approved by shareholders at the Special Meeting, the Tender Offer is expected to commence as soon as practicable after the date of shareholder approval of the Proposals, but in any event not later than 60 days after such date.
August 10, 2021 | Stockholders of Highland Income Fund Urged to Vote Against Conversion to Holding Company. The Coalition of Concerned Stockholders of Highland Income Fund (HFRO) (led by Phillip Goldstein) today issued the following letter urging all stockholders to vote against the proposed conversion to a holding company. [Full text]
August 9, 2021 | Apollo Senior Floating Rate Fund Inc. Conclusion of Special Meeting. Apollo Credit Management, LLC (“Apollo”) announced today that at a Special Meeting of shareholders of Apollo Senior Floating Rate Fund Inc. (AFT) on August 9, 2021, shareholders did not approve the proposals applicable to AFT described in the Joint Proxy Statement/Prospectus of Apollo Tactical Income Fund (AIF), Inc. dated May 18, 2021 (the “Proxy Statement”). As a result, the Special Meeting of shareholders of AFT has been concluded.
July 23, 2021 | XAI Octagon Floating Rate & Alternative Income Term Trust Closes Public Offering of Common Shares. XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) (XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has closed its previously announced underwritten public offering of 3,565,000 common shares of beneficial interest (“Common Shares”) at an offering price of $8.50 per Common Share. As a result, the Trust received net proceeds from the offering of approximately $29.0 million. [424B2 filing]
June 3, 2021 | Tortoise Announces Termination of Proposed Merger of Tortoise Pipeline & Energy Fund, Inc. (TTP) and Tortoise Energy Independence Fund, Inc. (NDP). Tortoise and the Board of Directors for its closed-end funds today announced the termination of the proposed merger of Tortoise Energy Independence Fund, Inc. (NDP) with and into Tortoise Pipeline & Energy Fund, Inc. (TTP). "Tortoise and the Board viewed the merger of these two funds as an opportunity to expand the investment strategy to better capture and accelerate the opportunity around the global energy evolution," said Brad Adams, CEO of Tortoise's closed-end funds. "Despite our efforts to obtain votes from all shareholders, there were ultimately not enough votes from both TTP and NDP shareholders to approve the merger. We remain focused on long-term shareholder value and both funds will continue to pursue their current investment strategies while we review strategic options for each fund."
May 7, 2021 | Invesco Advisers Announces Plans for Reorganization and Tender Offer for Invesco Dynamic Credit Opportunities Fund. Invesco Advisers, Inc., a subsidiary of Invesco Ltd. (NYSE: IVZ), announced today plans for a reorganization and tender offer for Invesco Dynamic Credit Opportunities Fund (VTA) (the "Fund").
PROPOSED REORGANIZATION. The Fund's Board of Trustees has approved a proposal to reorganize the Fund into a newly created closed-end interval fund (the "Interval Fund"). The reorganization is subject to approval by Fund shareholders, who will be asked to vote on the proposal at the Fund's Annual Meeting of Shareholders expected to take place in September 2021 (the "Meeting"). It is anticipated that the Fund's Variable Rate Demand Preferred Shares will be redeemed prior to the record date. The Interval Fund will offer four classes of shares (Class A, Class AX, Class R and Class Y) and will provide liquidity to shareholders in the form of quarterly repurchase offers. If the reorganization is approved, Fund shareholders will receive Class AX shares of the Interval Fund priced daily at the Interval Fund's net asset value ("NAV"). The Interval Fund will be managed with the same investment objective and similar investment strategy as the Fund, all as described in the proxy statement/prospectus, which will be filed publicly and is expected to be mailed to shareholders in or around July 2021. It is anticipated that the closing of the reorganization will occur on or around October 2021 subject to shareholder approval and the satisfaction of applicable regulatory requirements and customary closing conditions.
TENDER OFFER. The Fund's Board of Trustees has also approved the commencement (subject to certain conditions) prior to October 1, 2021, of a cash tender offer for up to 20% of the Fund's outstanding common shares of beneficial interest at a price per share equal to 98.5% of the Fund's NAV per share. The tender offer will be completed prior to the closing of the reorganization described above. 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. [13D/A filing]
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 |
Nuveen Credit Strategies Income Fund | (JQC) | -17.4% | 0.0466 | 0.0385 | 7.20% | -7.49% | 0.3 | 71% | 9/20/2021 | 10/14/2021 |
First Trust Senior FR Inc II | (FCT) | -11.9% | 0.0896 | 0.0789 | 7.83% | -3.05% | 0.5 | 61% | 9/20/2021 | 10/1/2021 |
PIMCO Income Strategy II | (PFN) | -10.3% | 0.08 | 0.0718 | 8.49% | 8.09% | -0.5 | 88% | 9/1/2021 | 9/10/2021 |
PIMCO Income Strategy | (PFL) | -9.6% | 0.09 | 0.0814 | 8.39% | 9.50% | -0.6 | 90% | 9/1/2021 | 9/10/2021 |
PIMCO Corporate & Income Opportunity Fd | (PTY) | -8.6% | 0.13 | 0.1188 | 7.70% | 28.52% | -0.6 | 88% | 9/1/2021 | 9/10/2021 |
Ivy High Income Opportunities Fund | (IVH) | -6.7% | 0.075 | 0.07 | 6.03% | -6.64% | 1.2 | 125% | 9/1/2021 | 9/15/2021 |
JHancock Investors | (JHI) | -4.9% | 0.3864 | 0.3674 | 7.85% | -0.05% | 1.1 | 31% | 9/1/2021 | 9/10/2021 |
MFS High Yield Municipal | (CMU) | -4.5% | 0.0165 | 0.01575 | 3.99% | -3.07% | 1.2 | 107% | 9/1/2021 | 9/14/2021 |
Templeton Emerg Mkts Income | (TEI) | -3.5% | 0.0716 | 0.0691 | 10.47% | -1.86% | 1.9 | 63% | 9/1/2021 | 9/14/2021 |
Invesco Municipal Inc Opp I | (OIA) | -3.5% | 0.0316 | 0.0305 | 4.51% | 2.66% | 0.6 | 102% | 9/1/2021 | 9/13/2021 |
MFS Investment Grade Municipal | (CXH) | -2.9% | 0.035 | 0.034 | 3.99% | -6.15% | 1.2 | 103% | 9/1/2021 | 9/14/2021 |
MFS High Income Municipal | (CXE) | -2.5% | 0.02 | 0.0195 | 4.37% | -0.74% | 1.2 | 100% | 9/1/2021 | 9/14/2021 |
Templeton Global Income | (GIM) | -2.4% | 0.0369 | 0.036 | 8.03% | -4.61% | 0.9 | 51% | 9/1/2021 | 9/14/2021 |
MFS Municipal Income | (MFM) | -2.0% | 0.025 | 0.0245 | 4.08% | -3.87% | 1.5 | 99% | 9/1/2021 | 9/14/2021 |
JHancock Income Secs | (JHS) | -1.6% | 0.1945 | 0.1914 | 4.77% | 0.03% | 1.8 | 33% | 9/1/2021 | 9/10/2021 |
MFS Intermediate High Income | (CIF) | -0.9% | 0.01937 | 0.0192 | 7.41% | 27.98% | 1.3 | 58% | 9/1/2021 | 9/14/2021 |
Franklin Limited Duration Income Trust | (FTF) | -0.8% | 0.0776 | 0.077 | 9.97% | 0.11% | 0.8 | 56% | 9/20/2021 | 9/29/2021 |
MFS Intermediate Income | (MIN) | -0.6% | 0.02666 | 0.02651 | 8.74% | -1.36% | 1.0 | 26% | 9/1/2021 | 9/14/2021 |
MFS Multimarket Income | (MMT) | -0.5% | 0.04184 | 0.04163 | 7.90% | 1.61% | 0.7 | 57% | 9/1/2021 | 9/14/2021 |
MFS Charter Income | (MCR) | -0.4% | 0.05771 | 0.05747 | 8.10% | -0.82% | 0.2 | 53% | 9/1/2021 | 9/14/2021 |
MFS Government Markets Inc | (MGF) | -0.3% | 0.02714 | 0.02705 | 7.43% | -1.13% | 1.6 | 27% | 9/1/2021 | 9/14/2021 |
Delaware Investments Dividend & Income | (DDF) | -0.3% | 0.0682 | 0.068 | 7.39% | 2.89% | 1.0 | 29% | 9/2/2021 | 9/16/2021 |
Boosters
Name | Ticker | Change | Previous | Current | Yield | Discount | z-score | Coverage | Announced | Ex Date |
Eaton Vance Short Duration Divers Inc | (EVG) | 0.3% | 0.1128 | 0.1131 | 9.89% | 1.86% | 1.7 | 60% | 9/1/2021 | 9/22/2021 |
MFS Special Value | (MFV) | 0.5% | 0.04627 | 0.0465 | 8.33% | 21.16% | 1.2 | 24% | 9/1/2021 | 9/14/2021 |
The India Fund Inc | (IFN) | 5.2% | 0.58 | 0.61 | 10.47% | -11.37% | -0.2 | -1% | 9/10/2021 | 9/17/2021 |
Eaton Vance Float-Rate 2022 Target Term | (EFL) | 6.3% | 0.032 | 0.034 | 4.36% | 0.11% | 0.3 | 95% | 9/1/2021 | 9/10/2021 |
Delaware Enhanced Global Div and Inc | (DEX) | 7.9% | 0.0611 | 0.0659 | 7.66% | -7.44% | 0.8 | 39% | 9/2/2021 | 9/16/2021 |
Royce Value Trust | (RVT) | 10.0% | 0.3 | 0.33 | 7.15% | -9.95% | 1.0 | 4% | 9/1/2021 | 9/10/2021 |
Royce Micro-Cap Trust | (RMT) | 10.5% | 0.19 | 0.21 | 7.16% | -11.61% | 0.8 | -2% | 9/1/2021 | 9/10/2021 |
Tri-Continental | (TY) | 25.0% | 0.2388 | 0.2986 | 3.51% | -11.02% | -0.1 | 28% | 9/3/2021 | 9/14/2021 |
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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 Learn more.
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_Chuck
