Weekly Closed-End Fund Roundup: August 21, 2022

Aug. 29, 2022 9:50 AM ETACP, AGD, ARDC, ASG, ASGI, BANX, BHK, BRW, CEM, CIF, CTR, CUBA, DDF, DEX, DMA, DMB, DMF, EAD, ECC, EFL, EMO, ERC, ERH, ETB, ETJ, ETO, EVF, EVG, FCO, FINS, FTF, FTHY, GGT, GIM, GLU, GRF, IAF, IFN, IVH, JEQ, MAV, MCR, MFV, MGF, MGU, MHI, MIN, MIO, MMD, MMT, MSFIX, NDP, NPV, NTG, OCCI, OPP, PDT, RCG, SMM, TDF, TEI, TPZ, TTP, TYG, VCIF, VFL, VPV, ZTR4 Comments

Summary

  • 1 out of 23 CEF sectors positive on price and 1 out of 23 sectors positive on NAV last week.
  • MLPs lead while commodities lag.
  • MLPs are the most discounted CEF sector.
  • Looking for a helping hand in the market? Members of CEF/ETF Income Laboratory get exclusive ideas and guidance to navigate any climate. Learn More »

Trading Charts on a Display

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Author’s note: This article was released to CEF/ETF Income Laboratory members on August 23rd, 2022. 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. Data is taken from the close of Friday, August 19th, 2022.

Weekly performance roundup

1 out of 23 sectors were positive on price (down from 20 last week) and the average price return was -2.26% (down from 1.84% last week). The lead gainer was MLPs (+0.66%) while Commodities lagged (-5.45%).

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1 out of 23 sectors were positive on NAV (down from 16 last week), while the average NAV return was -1.50% (down from +1.52% last week). The top sector by NAV was MLPs (+0.82%) while the weakest sector by NAV was Commodities (-3.28%).

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The sector with the highest premium was Limited Duration (+2.01%), while the sector with the widest discount is MLPs (-14.60%). The average sector discount is -4.07% (down from -3.35% last week).

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The sector with the highest premium/discount increase was U.S. Allocation (+0.06%), while Taxable Munis (-2.27%) showed the lowest premium/discount decline. The average change in premium/discount was -0.70% (down from +0.24% last week).

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The sector with the highest average 1-year z-score is Taxable Munis (+0.69), while the sector with the lowest average 1-year z-score is Commodities (-1.90). The average z-score is -0.05 (down from +0.22 last week).

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The sectors with the highest yields are Asia Equity (13.62%), Global Equity (11.23%), and Limited Duration (10.03%). Discounts are included for comparison. The average sector yield is +7.92% (down from +8.00% last week).

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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
Eaton Vance Tax-Advantaged Glbl Div Opp (ETO) -9.09% 8.34% 2.55% 0.2 -10.21% -2.22%
Liberty All-Star Growth (ASG) -9.09% 7.12% 4.39% -0.1 -10.43% -2.63%
Eagle Capital Growth (GRF) -7.72% 11.32% -18.07% -1.1 -4.14% 3.05%
Delaware Investments Dividend & Income (DDF) -6.24% 7.94% -9.00% -3.6 -7.95% -1.63%
BlackRock Core Bond (BHK) -5.44% 7.76% -4.79% -0.7 -5.88% -0.49%
JHancock Premium Dividend Fund (PDT) -5.19% 7.53% 5.57% -0.8 -4.25% 0.48%
BNY Mellon Muni Bond Infrastructure Fund (DMB) -5.16% 4.65% 9.54% 1.5 -6.24% -1.81%
Allspring Multi-Sec Inc (ERC) -5.08% 10.82% -2.47% -0.4 -6.44% -1.55%
Eaton Vance Risk-Mgd Divers Eq Inc (ETJ) -4.62% 9.64% 7.87% 1.0 -4.44% -0.34%
Eaton Vance Tax-Managed Buy-Write Income (ETB) -4.29% 8.14% 10.47% 1.0 -4.02% -0.28%

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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) 17.68% 20.72% 0.09% 0.9 6.73% -14.71%
RENN Global Entrepreneurs Fund (RCG) 8.31% % -3.77% -0.2 0.44% -9.81%
Gabelli Multimedia (GGT) 8.11% 11.43% 42.86% 1.6 1.85% -3.92%
Herzfeld Caribbean Basin (CUBA) 5.71% 14.71% -10.71% 1.2 0.85% 0.74%
Eagle Point Credit Company LLC (ECC) 5.33% 14.30% 9.81% 0.7 4.26% 0.00%
Nuveen VA Quality Muni Inc (NPV) 4.75% 4.01% 12.65% 1.9 2.40% -1.90%
Abrdn Global Income Fund, Inc. (FCO) 3.55% 15.85% 18.57% -0.8 0.38% -2.61%
ArrowMark Financial Corp (BANX) 3.43% 7.92% -6.64% -0.6 3.41% 0.00%
MainStay MacKay DefinedTerm Muni Opp (MMD) 3.30% 5.40% 5.82% 1.6 1.89% -1.27%
Virtus Total Return Fund Inc (ZTR) 3.24% 11.78% -4.45% -3.1 2.77% -0.70%

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Recent corporate actions

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

August 1, 2022 | Angel Oak Capital Advisors Announces the Completion of the Reorganization of Angel Oak Dynamic Financial Strategies Income Term Trust with and into Angel Oak Financial Strategies Income Term Trust.

June 30, 2022 | Gabelli Global Utility & Income Trust Rights Offering Concludes Raising $9.4 Million.

Upcoming corporate actions

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

August 11, 2022 | Abrdn's U.S. Closed-End Funds Announce Special Shareholder Meetings Relating to Proposed Acquisition of Assets of Four Delaware Management Company-Advised Closed-End Funds.

August 11, 2022 | RiverNorth/DoubleLine Strategic Opportunity Fund, Inc. Announces Transferable Rights Offering.

August 10, 2022 | Tortoise Announces Tender Offers for its Closed-End Funds.

August 4, 2022 | Saba Capital Reaches Agreement Regarding Salient Midstream & MLP Fund.

August 1, 2022 | Virtus Total Return Fund Inc. Rights Offering Declared Effective. Virtus Total Return Fund Inc.

July 22, 2022 | Delaware Investments National Municipal Income Fund Announces Self-Tender Offer for up to Fifty Percent of Its Shares.

Recent activist or other CEF news

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

None.

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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 Dragon (TDF) -45.8% 2.4022 1.3014 23.34% -13.63% -2.2 -4% 8/5/2022 8/12/2022
Herzfeld Caribbean Basin (CUBA) -34.4% 0.26475 0.173625 14.84% -16.42% -1.4 27% 8/5/2022 8/19/2022
BNY Mellon Municipal Income (DMF) -17.2% 0.029 0.024 4.04% -9.41% -0.6 127% 8/1/2022 8/15/2022
Abrdn Australia Equity Fund Inc (IAF) -13.3% 0.15 0.13 9.79% -2.03% -0.2 27% 8/9/2022 8/23/2022
The India Fund Inc (IFN) -13.2% 0.53 0.46 10.15% -7.97% 1.4 -8% 8/9/2022 8/23/2022
Templeton Emerg Mkts Income (TEI) -12.0% 0.0526 0.0463 9.94% -5.57% 0.3 105% 8/5/2022 8/12/2022
Invesco PA Value (VPV) -8.6% 0.0465 0.0425 4.51% -8.58% 0.2 112% 8/1/2022 8/12/2022
Abrdn Japan Equity Fund (JEQ) -8.3% 0.12 0.11 1.79% -14.49% -1.2 20% 8/9/2022 8/23/2022
FIRST TRUST HY OPPORTUNITIES 2027 Term (FTHY) -5.6% 0.1344 0.1269 9.48% -6.19% -0.3 77% 7/20/2022 8/1/2022
Templeton Global Income (GIM) -4.9% 0.0327 0.0311 7.74% -0.62% 1.9 68% 8/5/2022 8/12/2022
Delaware Investments Dividend & Income (DDF) -4.6% 0.061 0.0582 7.31% -2.75% -1.5 30% 8/4/2022 8/18/2022
Delaware Enhanced Global Div and Inc (DEX) -4.5% 0.0551 0.0526 7.74% -11.89% -0.5 37% 8/4/2022 8/18/2022
Ivy High Income Opportunities Fund (IVH) -4.1% 0.073 0.07 7.33% -2.84% 2.2 110% 8/1/2022 8/16/2022
Franklin Limited Duration Income Trust (FTF) -2.4% 0.0628 0.0613 10.40% -6.85% -0.5 71% 8/5/2022 8/12/2022
Allspring Multi-Sec Inc (ERC) -2.0% 0.09095 0.08909 10.12% 2.62% 0.5 71% 7/29/2022 8/11/2022
MFS Multimarket Income (MMT) -1.9% 0.03364 0.03301 7.89% -3.28% -0.3 63% 8/1/2022 8/16/2022
Allspring Inc Opp (EAD) -1.7% 0.05892 0.05792 9.46% -4.30% 0.3 71% 7/29/2022 8/11/2022
MFS® Intermediate High Income (CIF) -1.4% 0.01502 0.01481 8.34% 7.04% -0.8 67% 8/1/2022 8/16/2022
MFS® Charter Income (MCR) -1.3% 0.04686 0.04623 8.10% -5.12% -0.5 57% 8/1/2022 8/16/2022
Saba Capital Income & Opportunities Fund (BRW) -1.1% 0.09 0.089 12.82% -9.16% -1.0 9% 8/1/2022 8/8/2022
MFS Special Value (MFV) -0.7% 0.03846 0.03818 9.35% 0.82% -2.1 26% 8/1/2022 8/16/2022
Allspring Util & High In (ERH) -0.2% 0.07615 0.07597 7.17% -5.85% -1.5 49% 7/29/2022 8/11/2022
MFS® Intermediate Income (MIN) 0.0% 0.02256 0.02255 8.99% -5.64% -0.54 26% 8/1/2022 8/16/2022

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Boosters

Name Ticker Change Previous Current Yield Discount z-score Coverage Announced Ex Date
Vertical Capital Income Fund (VCIF) 0.1% 0.0714 0.0715 8.89% -9.81% 0.4 64% 8/9/2022 8/18/2022
MFS® Government Markets Inc (MGF) 0.6% 0.02261 0.02274 7.48% -3.44% 0.2 19% 8/1/2022 8/16/2022
Eaton Vance Short Duration Divers Inc (EVG) 0.9% 0.0913 0.0921 9.62% 0.97% 0.8 42% 8/1/2022 8/23/2022
ClearBridge MLP and Midstream (CEM) 1.7% 0.6 0.61 7.05% -15.79% 0.3 -21% 8/2/2022 8/23/2022
ClearBridge MLP and Midstream TR (CTR) 1.9% 0.52 0.53 6.96% -18.14% 0.4 -9% 8/2/2022 8/23/2022
ClearBridge Energy Midstream Opportunity (EMO) 2.0% 0.5 0.51 7.00% -17.21% 2.1 -25% 8/2/2022 8/23/2022
Destra Multi-Alternative (DMA) 2.1% 0.056 0.0572 9.59% -37.61% 0% 8/9/2022 8/18/2022
Eaton Vance Senior Income (EVF) 2.7% 0.037 0.038 7.81% -8.14% -0.8 83% 8/1/2022 8/10/2022
Eaton Vance Float-Rate 2022 Target Term (EFL) 3.4% 0.029 0.03 4.20% -0.81% -0.4 105% 8/1/2022 8/10/2022
Pioneer Municipal High Income Opp Fund (MIO) 5.0% 0.06 0.063 5.85% -9.28% -0.4 0% 8/4/2022 8/17/2022
Ares Dynamic Credit Allocation Fund (ARDC) 5.1% 0.0975 0.1025 9.38% -8.44% -0.4 112% 8/11/2022 8/19/2022
Pioneer Municipal High Income Advantage (MAV) 10.0% 0.04 0.044 5.58% -7.35% -0.1 93% 8/4/2022 8/17/2022
Tortoise Energy Independence Fund, Inc (NDP) 16.7% 0.48 0.56 7.53% -15.64% -1.2 32% 8/9/2022 8/23/2022
Pioneer Municipal High Income (MHI) 20.0% 0.04 0.048 5.65% -7.78% 0.6 95% 8/4/2022 8/17/2022

Strategy statement

Our goal at the CEF/ETF Income Laboratory is to provide consistent income with enhanced total returns. We achieve this by:

  • (1) Identifying the most profitable CEF and ETF opportunities.
  • (2) Avoiding mismanaged or overpriced funds that can sink your portfolio.
  • (3) Employing our unique CEF rotation strategy to "double compound" your income.

It's the combination of these factors that has allowed our Income Generator portfolio to massively outperform our fund-of-CEFs benchmark ETF (YYY) whilst providing growing income, too (approx. 10% CAGR).

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Remember, it's really easy to put together a high-yielding CEF portfolio, but to do so profitably is another matter!

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Disclosure: I/we have a beneficial long position in the shares of ARDC, ECC, FTHY, OCCI 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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