Systematic Income Takeaways With market valuations back to expensive levels, CEF investors may be thinking about other opportunities besides the beta provided by their portfolios to boost returns in their portfolios. We highlight four alpha strategies CEF investors can use in their portfolios. In the current environment, we see most alpha potential in interval funds, leaning against investor flows as well as relative value opportunities. Editor's Note: This article covers one or more microcap stocks. Please ...

PIMCO Muni and Taxable Average Coverage ● PIMCO Muni ● PIMCO Taxable 90% 80% 70% 60% 50% Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Oct-23 Dec-23 Jan-24 Feb-24 Feb-24 Mar-24 Apr-24 That said, much of the coverage uplift was concentrated in PDO, with the remainder of the taxable suite seeing little change. Outside of PDO, average taxable coverage is 63%. The fiscal-year-to-date picture is slightly better, at 73%. Systematic Income CEF Tool PIMCO semi-annual reporting periods end in the months of June and December. N ...

Welcome to another installment of our CEF Market Weekly Review, where we discuss closed-end fund ("CEF") market activity from both the bottom-up - highlighting individual fund news and events - as well as the top-down - providing an overview of the broader market. We also try to provide some historical context as well as the relevant themes that look to be driving markets or that investors ought to be mindful of. This update covers the period through the first week of June. Be sure to check out our other we ...

Positive Tactical Considerations Systematic Income Naturally, much of this yield (about half for the higher-yielding funds) is going to be ROC however it can still do the job as far as discount tightening as it is likely to generate additional demand, pulling investor capital from taxable sectors. This capital reallocation is likely to benefit higher-yielding funds in the sector. Exhibit 27: Combined upgrade to downgrade ratio, Moody's and S&P Municipal credit spreads remain near rock-bottom levels. This pi ...

tumsasedgars Closed-end funds, commonly referred to as CEFs, are popular investments for income-focused investors, especially retirees. There are numerous good reasons for this, which we will go over in this article. However, it is important for investors to be particularly cautious about investing in the closed-end fund space in the current environment. In this article, we will discuss why. Advantages of Investing In Closed-End Funds First, CEFs are well-diversified, typically holding scores if not hundred ...

-Oxford-/E+ via Getty Images Thesis The 6.75% Series 2024 Term Preferred Shares (NASDAQ:OXLCM) are exchange traded term preferred shares from the Oxford Lane Capital Corporation (OXLC) closed end fund. We covered these securities last year here, where we assigned them a 'Buy' rating based on their short tenor, reduced risk and high yield. The securities have delivered a steady stream of income since, outperforming treasury funds. With the term redemption date for the securities shortly coming up at the end ...

Seeking Alpha The fund's performance relative to its peers was not the worst, but it is far from being the best. After all, the best-performing fund in this peer group, the Calamos Convertible Opportunities Fund, delivered an 11.49% gain. In fact, every fund in this peer comparison except for the Virtus Convertible & Income Fund outperformed the Bancroft Fund. This is likely to turn off potential investors in this fund. However, as I pointed out in a recent article: Kameleon007 The Bancroft Fund (NYSE:BCV) ...

The Liberty All-Star Equity Fund (NYSE:USA) is truly an "all star" investment. As one of the oldest closed end funds trading today, USA has an extraordinary track record for investors. USA has been a focal point of our coverage for several years. In that initial coverage we outlined the fund's structure, asset allocation, and management approach. The article served as an initiation for covering USA with a broad overview including the distribution history and total return profile. More recently, we took a di ...

The Voya Infrastructure, Industrials, and Materials Fund certainly does not sacrifice any yield despite being an equity fund. At the current share price, the fund boasts an 11.74% yield that is obviously very attractive compared to most assets in the current market environment. It also compares quite well to its peers, as can be seen here: AdShooter The Voya Infrastructure Industrials and Materials Fund (NYSE:IDE) is a little-known closed-end fund, or CEF, that investors can employ as a means of generating ...

Market Overview - The Weekly Closed-End Fund Roundup summarizes recent price movements in closed-end fund (CEF) sectors, highlighting that 16 out of 22 sectors were positive on price with an average price return of +1.07%, down from +2.05% the previous week [3] - The leading gainer was Commodities with a price increase of +4.44%, while Asia Equity lagged with a decrease of -0.81% [3] NAV Performance - 21 out of 22 sectors reported positive net asset value (NAV), with an average NAV return of +1.25%, an increase from +1.01% last week [4] - Commodities led the NAV performance with a return of +3.62%, while Asia Equity was the weakest sector with a NAV decline of -0.53% [4] Premium/Discount Analysis - The sector with the highest premium was Limited Duration at +0.80%, while Asia Equity had the widest discount at -15.29% [5] - The average sector discount was recorded at -7.21% [5] - MLPs experienced the highest increase in premium/discount at +1.56%, while Taxable Munis showed the lowest decline at -1.07% [6] Z-Score and Yield Insights - Senior Loans had the highest average 1-year z-score at +1.37, while Taxable Munis had the lowest at -0.94 [7] - The average z-score across sectors was +0.48 [7] - The sectors with the highest yields included Senior Loans at +11.97%, Emerging Market Income at +10.83%, and Convertibles at +10.48%, with an average sector yield of +8.14% [9] Individual CEF Performance - The top 10 CEFs with the greatest decrease in premium/discount valuation included RENN Fund ord (RCG) with a decrease of -4.58% and a yield of -21.70% [11] - Conversely, Gabelli Utility Trust (GUT) saw a significant increase in premium/discount value by +6.44% [13] Corporate Actions - Recent corporate actions included Virtus Total Return Fund Inc. announcing final results of a tender offer on May 7, 2024 [16] - First Trust completed mergers on May 6, 2024 [17] - RiverNorth Capital and Income Fund, Inc. announced final results of a non-transferable rights offering on April 23, 2024 [18] Distribution Changes - Distribution changes included DWS Strategic Muni Income (KSM) reducing its distribution by -4.8% [22] - MFS Government Markets Inc. also saw a reduction of -2.0% in its distribution [22] Commentary on Rights Offerings - The rights offering for RiverNorth Capital and Income Fund (RSF) was not fully subscribed, with only 949,525 new shares issued, indicating a subscription rate of around 84% [27] - The offering's structure included a subscription price that was the higher of 90% of NAV or 95% of the market price at expiry, which influenced investor decisions [25][27] Shareholder Activism - Saba Capital has accumulated a ~17% stake in ASA Gold and Precious Metals Limited (ASA), which is currently trading at a -14% discount [31] - ASA management activated a shareholder rights plan to counter Saba's influence, which could lead to a 1-for-1 rights offering if Saba's stake exceeds 15% [32]