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]
Weekly CEF Roundup: RSF Rights Offering Results, ASA Fights Back (May 12, 2024)