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Author’s note: This article was released to CEF/ETF Income Laboratory members on August 9th, 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 5th, 2022.
Weekly performance roundup
19 out of 23 sectors were positive on price (down from 21 last week) and the average price return was 0.95% (down from 1.89% last week). The lead gainer was Limited Duration (+2.80%) while MLPs lagged (-3.48%).
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17 out of 23 sectors were positive on NAV (down from 21 last week), while the average NAV return was +0.36% (down from +2.09% last week). The top sector by NAV was Convertibles (+2.18%) while the weakest sector by NAV was MLPs (-3.94%).
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The sector with the highest premium was Limited Duration (+3.10%), while the sector with the widest discount is MLPs (-14.23%). The average sector discount is -3.59% (up from -5.02% last week).
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The sector with the highest premium/discount increase was Limited Duration (+1.97%), while Convertibles (-1.13%) showed the lowest premium/discount decline. The average change in premium/discount was +0.68% (up from -0.19% last week).
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The sector with the highest average 1-year z-score is Covered Call (+0.97), while the sector with the lowest average 1-year z-score is Senior Loans (-0.49). The average z-score is -0.19 (up from -0.30 last week).
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The sectors with the highest yields are Asia Equity (15.18%), Global Equity (11.12%), and Emerging Market Income (10.05%). Discounts are included for comparison. The average sector yield is +8.00% (down from +8.36% 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 |
| Calamos Convertible Opp Inc | (CHI) | -6.29% | 9.08% | 9.98% | 2.4 | -3.38% | 2.15% |
| The Central Europe and Russia Fund | (CEE) | -4.75% | 9.88% | 46.30% | 1.2 | -3.50% | 0.15% |
| PIMCO Access Income | (PAXS) | -4.05% | 8.43% | -7.77% | 0.0 | -3.43% | 0.84% |
| Calamos Convertible & High Income Fund | (CHY) | -3.51% | 9.14% | 9.14% | 3.0 | -0.98% | 2.21% |
| Eaton Vance National Municipal Opprs Tr | (EOT) | -2.83% | 4.03% | -3.53% | -0.4 | -2.62% | 0.26% |
| BlackRock Credit Allocation Income Trust | (BTZ) | -2.76% | 8.75% | -7.11% | -0.6 | -1.46% | 1.48% |
| Nuveen NY Municipal Value | (NNY) | -2.45% | 3.36% | -5.91% | -1.1 | -2.23% | 0.32% |
| Cohen & Steers Ltd Duration Pref & Inc | (LDP) | -2.40% | 7.63% | -4.24% | -0.6 | -1.44% | 1.05% |
| Delaware Enhanced Global Div and Inc | (DEX) | -2.39% | 8.21% | -15.12% | -1.8 | -2.53% | 0.22% |
| Eaton Vance Tax-Managed Buy-Write Income | (ETB) | -2.27% | 7.97% | 14.03% | 2.0 | -1.69% | 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 |
| Eagle Point Income Co Inc | (EIC) | 13.39% | 8.68% | 27.74% | 4.4 | 10.69% | 0.00% |
| BlackRock MuniYield Quality II | (MQT) | 5.70% | 5.11% | 2.76% | 1.6 | 6.11% | 0.24% |
| Abrdn Income Credit Strategies Fund | (ACP) | 5.58% | 14.07% | 11.65% | 2.6 | 6.36% | 1.06% |
| Cornerstone Strategic Value | (CLM) | 5.53% | 21.00% | 26.75% | -0.6 | 4.55% | 0.00% |
| Virtus Total Return Fund Inc | (ZTR) | 5.46% | 10.49% | 8.28% | 2.8 | 5.05% | -0.24% |
| BNY Mellon Muni Bond Infrastructure Fund | (DMB) | 5.33% | 4.67% | 6.73% | 1.2 | 5.58% | 0.31% |
| John Hancock Hedged Equity & Income Fund | (HEQ) | 5.31% | 9.13% | 5.05% | 1.8 | 4.87% | -0.41% |
| PIMCO Strategic Income Fund | (RCS) | 5.23% | 10.91% | 17.61% | 1.1 | 4.86% | 0.21% |
| Putnam Managed Muni Income | (PMM) | 4.98% | 5.30% | 2.69% | 0.9 | 5.53% | 0.43% |
| Cornerstone Total Return Fund | (CRF) | 4.90% | 21.15% | 26.48% | -0.7 | 4.02% | 0.00% |
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Recent corporate actions
These are from the past month. Any new news in the past week has a bolded date:
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 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:
July 8, 2022 | Virtus Convertible & Income Fund II Announces Payment of Previously Declared Monthly Common Share Distribution; Reconfirms August 1 Distribution.
July 1, 2022 | Virtus Convertible & Income Fund II Postpones Monthly Distribution on Common Shares.
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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 |
| Dreyfus Municipal Income | (DMF) | -17.2% | 0.029 | 0.024 | 4.06% | -10.37% | -0.8 | 127% | 8/1/2022 | 8/15/2022 |
| Invesco PA Value | (VPV) | -8.6% | 0.0465 | 0.0425 | 4.59% | -10.75% | -0.6 | 112% | 8/1/2022 | 8/12/2022 |
| First Trust HY Opportunities 2027 Term | (FTHY) | -5.6% | 0.1344 | 0.1269 | 9.61% | -6.54% | -0.4 | 82% | 7/20/2022 | 8/1/2022 |
| Delaware Investments Dividend & Income | (DDF) | -4.6% | 0.061 | 0.0582 | 7.38% | 0.60% | -0.2 | 34% | 8/4/2022 | 8/18/2022 |
| Delaware Enhanced Global Div and Inc | (DEX) | -4.5% | 0.0551 | 0.0526 | 8.21% | -15.12% | -1.8 | 49% | 8/4/2022 | 8/18/2022 |
| Ivy High Income Opportunities Fund | (IVH) | -4.1% | 0.073 | 0.07 | 7.43% | -9.66% | -0.3 | 110% | 8/1/2022 | 8/16/2022 |
| Wells Fargo Multi-Sec Inc | (ERC) | -2.0% | 0.09095 | 0.08909 | 10.38% | 0.98% | 0.2 | 71% | 7/29/2022 | 8/11/2022 |
| MFS Multimarket Income | (MMT) | -1.9% | 0.03364 | 0.03301 | 8.08% | -4.83% | -0.6 | 63% | 8/1/2022 | 8/16/2022 |
| Allspring Inc Opp | (EAD) | -1.7% | 0.05892 | 0.05792 | 9.57% | -5.35% | -0.1 | 71% | 7/29/2022 | 8/11/2022 |
| MFS Intermediate High Income | (CIF) | -1.4% | 0.01502 | 0.01481 | 8.42% | 6.57% | -0.9 | 67% | 8/1/2022 | 8/16/2022 |
| MFS Charter Income | (MCR) | -1.3% | 0.04686 | 0.04623 | 8.05% | -4.17% | -0.3 | 57% | 8/1/2022 | 8/16/2022 |
| Saba Capital Income & Opportunities Fund | (BRW) | -1.1% | 0.09 | 0.089 | 12.59% | -7.12% | 0.1 | 9% | 8/1/2022 | 8/8/2022 |
| MFS Special Value | (MFV) | -0.7% | 0.03846 | 0.03818 | 9.67% | -0.63% | -2.5 | 26% | 8/1/2022 | 8/16/2022 |
| JHancock Tax-Advantaged Dividend Inc | (HTD) | -0.7% | 0.139 | 0.138 | 6.56% | -0.24% | 1.2 | 82% | 8/1/2022 | 8/10/2022 |
| Allspring Util & High In | (ERH) | -0.2% | 0.07615 | 0.07597 | 7.18% | -4.01% | -1.3 | 49% | 7/29/2022 | 8/11/2022 |
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Boosters
| Name | Ticker | Change | Previous | Current | Yield | Discount | z-score | Coverage | Announced | Ex Date |
| MFS Government Markets Inc | (MGF) | 0.6% | 0.02261 | 0.02274 | 7.42% | -3.41% | 0.2 | 19% | 8/1/2022 | 8/16/2022 |
| Eaton Vance Short Duration Divers Inc | (EVG) | 0.9% | 0.0913 | 0.0921 | 9.82% | 0.99% | 0.8 | 42% | 8/1/2022 | 8/23/2022 |
| ClearBridge MLP and Midstream | (CEM) | 1.7% | 0.6 | 0.61 | 7.67% | -16.64% | -0.2 | -21% | 8/2/2022 | 8/23/2022 |
| ClearBridge MLP and Midstream TR | (CTR) | 1.9% | 0.52 | 0.53 | 7.52% | -17.84% | 0.5 | -9% | 8/2/2022 | 8/23/2022 |
| ClearBridge Energy Midstream Opportunity | (EMO) | 2.0% | 0.5 | 0.51 | 7.61% | -17.70% | 1.8 | -25% | 8/2/2022 | 8/23/2022 |
| Eaton Vance Senior Income | (EVF) | 2.7% | 0.037 | 0.038 | 7.89% | -7.37% | -0.7 | 83% | 8/1/2022 | 8/10/2022 |
| Eaton Vance Float-Rate 2022 Target Term | (EFL) | 3.4% | 0.029 | 0.03 | 4.19% | -0.98% | -0.6 | 105% | 8/1/2022 | 8/10/2022 |
| Pioneer Municipal High Income Opp Fund | (MIO) | 5.0% | 0.06 | 0.063 | 5.84% | -10.08% | 0% | 8/4/2022 | 8/17/2022 | |
| Pioneer Municipal High Income Advantage | (MAV) | 10.0% | 0.04 | 0.044 | 5.72% | -10.48% | -1.1 | 93% | 8/4/2022 | 8/17/2022 |
| Pioneer Municipal High Income | (MHI) | 20.0% | 0.04 | 0.048 | 5.81% | -11.03% | -0.7 | 95% | 8/4/2022 | 8/17/2022 |
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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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