After mostly smooth sailing in the first part of the year, volatility in the CEF market has increased recently. In this article, we take a look at the likely moves in CEF discounts over the medium term, as well as their potential Check out Systematic Income and explore our Income Portfolios, engineered with both yield and risk management considerations. Use our powerful Interactive Investor Tools to navigate the BDC, CEF, OEF, preferred and baby bond markets. Read our Investor Guides: to CEFs, Preferreds an ...

Core Insights - The article provides an update on the PIMCO CEF suite, focusing on distribution coverage changes and the allocation profile of the Dynamic Income Strategy Fund (PDX) [1] Distribution Coverage Update - Distribution coverage across taxable and tax-exempt suites has continued to grow, with PDO being the only taxable PIMCO CEF with coverage above 100% at 116%, while the average for the rest is 73% [2] - Municipal fund coverage levels have risen to an average of 113%, with all PIMCO Muni CEFs exceeding 100% coverage, despite stable short-term rates and fixed asset coupons [4][5] - The increase in Muni coverage may be attributed to falling Muni yields, rotation into higher-coupon Municipal bonds, and a buyback of expensive auction-rate preferreds [5][6] PDX Fund Allocation - PDX has shifted its strategy from being energy-focused to a more diversified approach, now allocating only 2.7% to the energy sector, while maintaining a significant allocation to equities and MLPs [8][10] - The fund's current allocation aligns with its strategy guidelines, and it is not expected to shift significantly in the near term [11] - PDX's discount has stalled around a double-digit level, contrasting with a double-digit average premium in the rest of the PIMCO taxable suite [11] Performance and Valuation - Taxable PIMCO funds with strong year-to-date returns include PAXS and PDO, with PDX outperforming due to the strength of the MLP sector [12] - The average premium of taxable PIMCO CEFs is around 18% above the rest of the taxable CEF market, indicating a relatively high valuation compared to historical levels [14] - NAVs of taxable funds have fallen significantly since 2022, making them more attractive to some investors due to increased distribution rates [18] Market Environment - The performance of CEFs is influenced by broader market conditions, with current valuations indicating a potentially expensive environment for new capital [20] - The article suggests that better entry points for CEFs may be available in the medium term as discounts widen and nominal interest rates rise [20]

0.000 Adam Smigielski Welcome to another installment of our CEF Market Weekly Review, where we diseuss closed-end fund ("CTF") 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 fourth week of August. Be sure ...

thad In his 2004 work, The Wisdom of Crowds: Why the Many Are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies and Nations, author James Surowiecki explores case studies that prove large groups of people are more intelligent than the elite few. Crowds are better at solving complex problems, creating innovation, coming to wise decisions, and predicting the future. The book's brilliance stems from its simplicity. As a trader in markets since the early 1980s, Surowiecki's Wi ...

shih-wei 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 third week of August. Be sure to check out o ...

ridvan_celik 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 second week of August. Be sure to check ...

sankai CEFA: Welcome to CEF Insights, your source for closed-end fund information and education, brought to you by the Closed-End Fund Association. Today we are joined by Robert Milas, Director of Research with SS&C ALPS Advisors. ALPS Advisors is the investment manager of the Liberty All-Star Growth Fund, ticker NYSE:ASG, and the Liberty All-Star Equity Fund, ticker NYSE:USA. Rob, we are happy to have you with us today. Robert Milas: Oh, it's very good to join you. Looking forward to speaking. CEFA: Rob, t ...

Market Overview - CEF performance varied, with equity-linked sectors declining while longer-duration, higher-quality sectors like Munis outperformed due to a sharp fall in 10-year Treasury yields, boosting Muni prices [2] - July ended positively with nearly a 3% gain across the CEF space before an early August market hiccup [2] Market Themes - NYSE proposed an amendment to eliminate the requirement for CEFs to hold annual shareholder meetings, which could impact shareholder voting on fund board members [3] - The NYSE argues that existing protections for CEF shareholders under the 1940 Investment Company Act would remain intact, despite concerns about reduced competition and oversight [3] - Saba is actively campaigning against the proposed rule change, emphasizing the importance of regular elections for maintaining competitive pressure on CEFs [3] Fund Performance - Saba's CEFs reported that approximately 39% of distributions for the fiscal year-to-date came from net investment income, with BRW showing net investment income around 5.5% and SABA at 3.3% [4][5] - The relative value analysis indicated that SABA was previously a more attractive option when its discount was about 5% wider than BRW, but this opportunity has since diminished [5] IPO Activity - Bill Ackman withdrew the IPO for Pershing Square USA after significantly downsizing the deal, indicating a lack of interest that hindered the transaction [6] - Ackman's previous assertions about the fund trading at a premium were contradicted by market realities, as only 16% of listed CEFs trade at premiums [6][7] Investment Opportunities - Muni CEFs have shown strong performance amid market drawdowns, attributed to lower long-term rates and high-quality profiles, providing a margin of safety [8] - Specific funds such as conditional tender offer funds (MVF) and (EIM), as well as higher-yielding options like NZF, are highlighted as attractive investment opportunities [8]

Background stock market and finance economic MarsYu CEFA: Welcome to CEF Insights, your source for closed-end fund information and education, brought to you by the Closed-End Fund Association. Today we are joined by David Leggette, Lead Product Strategist and Head of Investor Relations with CBRE Investment Management, a leading investment manager of global real assets. CBRE is sub-advisor to the MainStay CBRE Global Infrastructure Megatrends Fund, ticker NYSE:MEGI, and New York Life Investment Management is ...

Jacobs Stock Photography Ltd 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 fourth week of July. Be ...