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Author’s note: This article was released to CEF/ETF Income Laboratory members on July 11th, 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, July 15th, 2022. Weekly performance roundup.
17 out of 23 sectors were positive on price (down from 21 last week) and the average price return was +1.05% (down from +2.63% last week). The lead gainer was Convertibles (+4.07%) while Commodities lagged (-1.61%).
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14 out of 23 sectors were positive on NAV (down from 16 last week) while the average NAV return was +0.57% (down from +1.29% last week). The top sector by NAV was Convertibles (+2.54%) while the weakest sector by NAV was Commodities (-3.05%).
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The sector with the highest premium was Limited Duration (+0.42%) while the sector with the widest discount is MLPs (-14.52%). The average sector discount is -4.83% (up from -6.64% last week).
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The sector with the highest premium/discount increase was Emerging Market Income (+2.04%) while Preferreds (-0.87%) showed the lowest premium/discount decline. The average change in premium/discount was +0.46% (down from +0.89% last week).
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The sector with the highest average 1-year z-score is Convertibles (+0.60) while the sector with the lowest average 1-year z-score is Commodities (-1.16). The average z-score is -0.30 (up from -0.96 last week).
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The sectors with the highest yields are Asia Equity (14.05%), Global Equity (11.89%), and Limited Duration (10.69%). Discounts are included for comparison. The average sector yield is +8.42% (down from +8.57% 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 |
| Gabelli Conv Inc Secs | (GCV) | -11.70% | 9.56% | 9.37% | 0.4 | -7.04% | 2.91% |
| New Ireland | (IRL) | -6.72% | 31.05% | -14.53% | -0.3 | -7.20% | 0.12% |
| RENN Global Entrepreneurs Fund | (RCG) | -5.97% | % | 2.05% | 0.6 | -3.49% | 3.77% |
| Nuveen MO Quality Muni Inc | (NOM) | -5.42% | 3.66% | 1.82% | -1.5 | -3.38% | 1.77% |
| BNY Mellon Muni Bond Infrastructure Fund | (DMB) | -5.05% | 5.04% | 0.88% | 0.3 | -3.00% | 1.87% |
| PIMCO Municipal Income | (PMF) | -4.71% | 5.74% | 7.12% | -0.2 | -2.00% | 2.33% |
| Flaherty & Crumrine Preferred Income | (PFD) | -4.49% | 7.77% | 1.59% | -1.0 | -3.43% | 0.85% |
| Invesco Bond | (VBF) | -4.43% | 4.55% | -6.38% | -1.1 | -4.36% | 0.18% |
| GAMCO Global Gold Natural Resources & Inc | (GGN) | -4.24% | 10.59% | -3.68% | -0.6 | -5.56% | -1.40% |
| Virtus Convertible & Income Fund II | (NCZ) | -4.22% | 14.56% | -13.93% | -2.5 | -2.22% | 2.57% |
Income Lab
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 |
| Gabelli Utility Trust | (GUT) | 12.01% | 8.31% | 83.72% | 0.0 | 6.18% | -0.76% |
| Virtus Stone Harbor Emerging Markets Inc | (EDF) | 11.48% | 15.38% | 17.00% | 1.3 | 6.36% | -4.08% |
| Virtus Stone Harbor Emg Mkts Total Inc | (EDI) | 10.78% | 15.82% | 11.55% | 1.4 | 6.23% | -4.03% |
| John Hancock Hedged Equity & Income Fund | (HEQ) | 8.25% | 9.10% | 7.23% | 2.9 | 8.33% | 0.00% |
| Calamos Global Total Return | (CGO) | 7.33% | 10.47% | 10.83% | 2.0 | 7.91% | 0.78% |
| Eagle Capital Growth | (GRF) | 6.95% | 10.94% | -6.91% | 0.9 | 4.79% | -1.22% |
| BlackRock VA Municipal Bond | (BHV) | 6.12% | 4.00% | 5.16% | -1.1 | 9.46% | 3.10% |
| Advent Convertible & Income Fund | (AVK) | 6.10% | 10.65% | 2.72% | 2.6 | 9.63% | 3.13% |
| Cornerstone Strategic Value | (CLM) | 6.02% | 23.30% | 18.90% | -1.1 | 8.51% | 3.03% |
| Cornerstone Total Return Fund | (CRF) | 5.99% | 23.04% | 20.72% | -1.1 | 8.40% | 3.03% |
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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
June 30, 2022 | Cornerstone Strategic Value Fund, Inc. Announces Completion Of Rights Offering
June 29, 2022 | XAI Octagon Floating Rate & Alternative Income Term Trust Announces Private Placement of Convertible Preferred Shares and Registered Direct Placement of Common Shares
June 13, 2022 | Cornerstone Strategic Value Fund, Inc. Announces Completion Of Rights Offering
June 13, 2022 | Cornerstone Total Return Fund, Inc. Announces Completion Of Rights Offering
Upcoming corporate actions
These are from the past month. Any new news in the past week has a bolded date:
June 28, 2022 | SALIENT MIDSTREAM & MLP FUND ANNOUNCES PLANNED REORGANIZATION
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
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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