Weekly Closed-End Fund Roundup: October 4, 2020

ETFS

Author’s note: This article was previously released to CEF/ETF Income Laboratory members. 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 will also 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, October 2nd, 2020.

Weekly performance roundup

Markets rebound strongly as 22 out of 23 sectors were positive on price (up from 0 last week) and the average price return was +1.25% (up from -3.39% last week). The lead gainer was Commodities (+2.70%), followed by Global Allocation (+2.17%) and Real Estate (+2.05%), while the weakest lowest sector by Price was New York Munis (-0.61%), followed by California Munis (+0.21%) and Investment Grade (+0.22%).

(Source: Stanford Chemist, CEFConnect)

17 out of 23 sectors were positive on NAV (up from 3 last week), while the average NAV return was +1.05% (up from -2.42% last week). The top sectors by NAV were Real Estate (+3.96%), Commodities (+2.86%), and Convertibles (+2.36%). The weakest sectors by NAV were Taxable Munis (-0.71%), New York Munis (-0.32%), and California Munis (-0.28%).

(Source: Stanford Chemist, CEFConnect)

The highest premium sector was Taxable Munis (+3.01%), while the sector with the widest discount was MLPs (-26.27%). The average sector discount is -8.55% (up from -8.83% last week).

(Source: Stanford Chemist, CEFConnect)

The sector with the highest premium/discount increase was Taxable Munis (+1.51%), while Real Estate (-1.47%) showed the lowest premium/discount decline. The average change in premium/discount was +0.29% (up from -0.92% last week).

(Source: Stanford Chemist, CEFConnect)

The sector with the highest average 1-year z-score was Taxable Munis (+0.71), followed by Single-state Munis (+0.25). The sector with the lowest average 1-year z-score was MLPs (-1.36), followed by Convertibles (-1.22). The average z-score is -0.45 (up from -0.55 last week).

(Source: Stanford Chemist, CEFConnect)

The sectors with the highest yields were MLPs (20.74%), Global Allocation (10.76%), Limited Duration (9.48%), Emerging Market Income (9.24%), and Real Estate (9.16%). Discounts and z-scores for the sectors are included for comparison. The average sector yield is +7.68% (down from +7.76% 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

Gabelli Utility Trust

GUT

-10.45%

7.81%

97.94%

1.6

-0.13%

5.15%

Gabelli Multimedia

GGT

-5.82%

13.71%

-3.17%

-1.8

-2.28%

3.59%

OFS Credit Company Inc

OCCI

-5.11%

23.45%

-21.86%

-0.7

-6.15%

0.00%

Gabelli Equity

GAB.PK

-5.00%

11.86%

0.80%

-1.2

-0.78%

4.15%

Cohen & Steers Total Return

RFI

-4.21%

7.85%

-4.38%

-1.3

0.41%

4.84%

Principal Real Estate Income Fund

PGZ

-4.18%

12.44%

-26.52%

-2.2

-2.84%

2.70%

Nuveen NY Municipal Value

NNY

-4.08%

3.37%

-0.40%

0.2

-4.13%

-0.20%

Cohen & Steers Select Preferred & Inc

PSF

-3.60%

7.24%

2.56%

-1.0

-2.11%

1.36%

Western Asset Inflation-Linked Income Fd

WIA

-3.29%

2.92%

-12.36%

-0.9

-3.43%

0.22%

DNP Select Income

DNP

-3.09%

7.70%

18.02%

-1.1

-0.78%

1.82%

(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

Oxford Lane Capital Corp.

OXLC

6.91%

18.12%

18.88%

-0.6

6.18%

0.00%

Special Opportunities

SPE

6.12%

9.19%

-8.96%

0.3

-1.52%

-3.61%

Eagle Point Credit Company LLC

ECC

5.98%

11.19%

0.47%

0.7

6.32%

0.00%

PIMCO Municipal Income III

PMX

4.67%

4.74%

6.30%

0.1

4.20%

-0.36%

FIRST TRUST HY OPPORTUNITIES 2027 Term

FTHY

4.59%

%

1.03%

0.0

5.10%

0.34%

XAI Octagon FR & Alt Income Term Trust

XFLT

4.50%

11.92%

-4.43%

-0.6

5.25%

0.31%

Nuveen Municipal Credit Opps Fund

NMCO

4.49%

5.85%

-2.11%

-0.3

4.55%

-0.23%

BlackRock Health Sciences Trust II

BMEZ

4.46%

5.03%

-7.17%

0.0

6.74%

1.64%

Mexico Fund

MXF

4.46%

6.98%

-15.36%

2.8

3.51%

-3.27%

PIMCO Income Opportunity

PKO

4.24%

9.78%

6.10%

-0.6

5.00%

0.83%

(Source: Stanford Chemist, CEFConnect)

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 Municipal 2021 Target Term

NHA

-53.8%

0.013

0.006

0.74%

-0.81%

0.5

234%

9/1/2020

9/14/2020

Eaton Vance High Income 2021 Target Term

EHT

-33.3%

0.03

0.02

2.51%

-2.84%

-0.4

161%

9/1/2020

9/10/2020

TCW Strategic Income

TSI

-28.3%

0.0906

0.065

4.68%

-0.80%

-0.1

39%

9/16/2020

9/29/2020

Nuveen Corporate Income November 2021

JHB

-22.2%

0.0315

0.0245

3.27%

-4.57%

-1.3

25%

9/1/2020

9/14/2020

Nuveen Emrg Mkts Debt 2022 Target Term

JEMD

-10.7%

0.0375

0.0335

5.19%

0.92%

0.8

123%

9/1/2020

9/14/2020

JHancock Income Secs

JHS

-9.3%

0.205

0.1859

4.83%

-3.45%

1.4

25%

9/1/2020

9/10/2020

JHancock Investors

JHI

-8.5%

0.3778

0.3455

8.71%

-7.14%

0.0

29%

9/1/2020

9/10/2020

Tri-Continental

TY

-7.2%

0.2824

0.2622

4.02%

-12.89%

-0.6

34%

9/1/2020

9/15/2020

Templeton Global Income

GIM

-4.6%

0.0152

0.0145

3.26%

-13.33%

-0.4

137%

9/1/2020

9/14/2020

Royce Value Trust

RVT

-3.8%

0.26

0.25

7.75%

-14.85%

-1.4

6%

9/1/2020

9/10/2020

Voya Prime Rate Trust

PPR

-3.4%

0.0145

0.014

3.80%

-7.53%

0.6

157%

9/1/2020

9/9/2020

MFS Multimarket Income

MMT

-3.3%

0.04354

0.04211

8.76%

-7.09%

-0.3

57%

9/1/2020

9/15/2020

Sprott Focus Trust

FUND

-2.1%

0.1093

0.107

7.16%

-15.54%

-1.3

11%

9/2/2020

9/14/2020

Wells Fargo Multi-Sec Inc

ERC

-0.6%

0.0939

0.09336

10.37%

-11.33%

-1.1

68%

9/25/2020

10/13/2020

Wells Fargo Util & High Inc

ERH

-0.5%

0.07233

0.072

7.14%

-0.62%

-1.5

45%

9/25/2020

10/13/2020

Wells Fargo Inc Opp

EAD

-0.4%

0.05668

0.05648

9.11%

-11.74%

-0.5

78%

9/25/2020

10/13/2020

MFS® Government Markets Inc

MGF

-0.3%

0.02938

0.0293

7.55%

-2.71%

0.8

29%

9/1/2020

9/15/2020

MFS® Intermediate Income

MIN

-0.1%

0.02856

0.02853

9.15%

-6.03%

-0.3

28%

9/1/2020

9/15/2020

Boosters

Name

Ticker

Change

Previous

Current

Yield

Discount

z-score

Coverage

Announced

Ex-date

Franklin Limited Duration Income Trust

FTF

1.4%

0.0765

0.0776

10.84%

-6.53%

0.1

53%

9/18/2020

9/29/2020

MFS® Charter Income

MCR

1.5%

0.05825

0.05911

8.74%

-6.88%

-0.2

51%

9/1/2020

9/15/2020

Eaton Vance Floating-Rate Income

EFT

1.6%

0.061

0.062

6.22%

-13.20%

-0.5

101%

9/1/2020

9/22/2020

MFS Special Value

MFV

2.0%

0.04323

0.04411

10.01%

1.73%

-0.7

27%

9/1/2020

9/15/2020

Delaware Investments Dividend & Income

DDF

2.4%

0.054

0.0553

8.14%

-7.39%

-1.2

40%

9/1/2020

9/17/2020

MFS® Intermediate High Income

CIF

2.6%

0.01884

0.01933

9.87%

-2.08%

-0.3

59%

9/1/2020

9/15/2020

Eaton Vance Float-Rate 2022 Target Term

EFL

2.8%

0.036

0.037

5.05%

-2.01%

0.4

98%

9/1/2020

9/10/2020

Delaware Enhanced Global Div and Inc

DEX

2.9%

0.0513

0.0528

7.14%

-9.49%

0.3

50%

9/1/2020

9/17/2020

Vertical Capital Income Fund

VCIF

3.8%

0.026

0.027

3.26%

-17.52%

0.5

89%

9/8/2020

9/17/2020

Federated Premier Municipal Income

FMN

8.0%

0.05

0.054

4.51%

-5.65%

1.4

95%

9/10/2020

9/22/2020

The India Fund Inc

IFN

9.5%

0.42

0.46

11.10%

-15.07%

-1.2

-1%

9/10/2020

9/18/2020

Morgan Stanley Emrgng Mkts Domestic Debt

EDD

10.0%

0.1

0.11

7.90%

-17.24%

-0.8

32%

9/18/2020

9/29/2020

Templeton Emerg Mkts Income

TEI

12.4%

0.0355

0.0399

6.48%

-16.40%

-1.2

90%

9/1/2020

9/14/2020

Morgan Stanley Emerging Markets Debt

MSD

12.8%

0.0975

0.11

5.26%

-16.98%

-1.3

31%

9/18/2020

9/29/2020

Eaton Vance Senior Income

EVF

12.9%

0.031

0.035

7.14%

-9.12%

0.6

77%

9/1/2020

9/10/2020

CEF analysis from around Seeking Alpha…

ADS Analytics presents PIMCO August Coverage And Shareholder Report Update (Sep. 28)

Alpha Gen Capital presents PIMCO Gives Investors Another Scare (Sep. 28), Fund Spotlight: DoubleLine Yield Opportunities – This New Fund Looks Attractive (Sep. 28)

Double Dividend Stocks presents BlackRock Science And Technology Trust: Tech Monthly Payer, 12% Dividend Growth (Oct. 2)

George Spritzer presents JCE Looks Attractive Here With A 7.2% Distribution Yield And A 9.4% Discount (Sep. 26)

*Nick Ackerman presents KIO: High-Yield, High-Risk ‘Dynamic’ Credit Fund (Sep. 28), FFC: Providing Attractive Monthly Income, Yielding 7.46% (Sep. 29), EOS: A Covered Call Fund That Has Been On Fire (Sep. 30), CSQ: An Attractive Monthly Paying Fund With An 8.37% Yield (Oct. 1), ETG: Consistent Dividend Payer At A Wide Discount (Oct. 1), BUI: Sheltered From The Storm (Oct. 2)

*Stanford Chemist presents Weekly Closed-End Fund Roundup: September 20, 2020 (Sep. 29), Closed-End Fund ‘Quality’ Report: September 2020 (Sep. 30)

Trapping Value presents RA: Real Assets But Fake Yield (Oct. 1)

*To subscribers: these link to the public version of the article, which you will already have seen in the members section.

Macro/market section

Fear & Greed Trader presents S&P 500 Weekly Update: An ‘October Surprise’ Doesn’t Change The Market Outlook (Oct. 3)

Jeff Miller presents Weighing The Week Ahead: Should Investors Change Course Because Of The POTUS Diagnosis? (Oct. 4)

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Disclosure: I am/we are long BMEZ, OCCI, OXLC, XFLT. 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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