Equity CEFs: Raising UTF To A Buy

Summary

  • I'm raising the Cohen & Steers Infrastructure fund (UTF) to a Buy from a Hold and reinitiating a position here at $23.28.
  • 2-weeks ago in the last Equity CEF/ETF Portfolio Guide, UTF was at $23.80 with a $23.53 NAV, or a slight +1.2% premium.
  • Since then, UTF's NAV has gone up to $24.45, or +4.6% including one $0.155/share distribution earlier this week and yet, UTF's market price has fallen since then.
  • I think this is finally an opportunity to own one of the best long-term performing equity CEFs out there at a discount, currently -3.4%.
  • UTF is definitely a volatile, 'risk-on' fund that uses a high percent of leverage on its global infrastructure stock and fixed-income preferred portfolio.  See below for UTF's Fact Sheet.
  • Looking for more investing ideas like this one? Get them exclusively at CEFs: Income + Opportunity. Learn More »

Major Highway Infrastructure Project Built At Former Site Of Cowboys Stadium

John Moore/Getty Images News

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Thank you for reading my article. My goal is to give you observations and actionable ideas in Closed-End funds while educating you on how these unique and opportunistic funds work.

CEFs can be one of the most exhilarating and yet most frustrating security classes to invest in, and it's important that you have someone who can be a level head during up and down periods of the market. I hope to be that voice of calm when necessary.  ~ Douglas Albo

This article was written by

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Douglas Albo has been a financial professional for 20+ years and a registered investment advisor over a decade. His background includes several years at Smith Barney and Morgan Stanley. He has been covering equity CEFs on Seeking Alpha for well over a decade as well.

Douglas is the leader of the investing group CEFs: Income + Opportunity where he provides coverage of the best ideas in equity CEFs. Features of the group include: analysis of tax-advantaged distribution funds, real time trading alerts and ideas, weekly performance spreadsheets, a portfolio guide updated every 2 weeks, and chat for dialogue and questions. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of UTF 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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About UTF Ticker

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