The Cohen & Steers Infrastructure fund (NYSE:UTF) is getting hit especially hard today, down -4.0%. I believe this is a good spot to start initiating or adding to positions.
UTF is very volatile for being such a large fund at $2.6 billion. UTF is a leveraged global utility and infrastructure stock fund with about 18% of its portfolio in corporate bonds and preferred securities. All of these sectors are getting hit hard with a spike up in interest rates but this is a good spot to start accumulating with the fund back to a double digit discount.
UTF, because of leverage, has been one of the best total return performers of any equity based CEF and its NAV got as high as $23.46 just a few weeks ago on May 21st. That translates to a 164% total return from the market lows in March 2009.
With the market price now down from $21.71 just a month ago to $19.06, you can pick up UTF at around a -12% discount and a 7.5% yield. Historically, this has been a good entry valuation. Goes ex-dividend June 18th.
Disclosure: I am long UTF.