QUARTERLY CLOSED-END FUND & BDC REVIEW AND OUTLOOK

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QUARTERLY CLOSED-END FUND & BDC REVIEW AND OUTLOOK 1st Quarter

Skill Level April 11, 2019 John Cole Scott, CFS Chief Investment

Closed-End Fund Advisors is a SEC Registered Investment Advisory

1 QUARTERLY CLOSED-END FUND & BDC REVIEW AND OUTLOOK 1st Quarter 2019 Review & 2nd Quarter 2019 Outlook Intermediate/Advanced CEF Skill Level April 11, 2019 John Cole Scott, CFS Chief Investment Officer Closed-End Fund Advisors, Inc. Closed-End Fund Advisors is a SEC Registered Investment Advisory Firm Specializing in Closed-End Fund & BDC Research, Trading and Management Founded in 1989.

Discretionary Portfolio Management (SMA), Unit Investment Trust (UIT) & Model Portfolios CEF & BDC News/SEC Alert & CEFA s

2 What Is CEF Advisors? Investment Management, Research & Data Independent, Fee Only & Family Owned Scott Letter: Closed-End Fund Report Custom Discretionary Portfolio Management (SMA), Unit Investment Trust (UIT) & Model Portfolios CEF & BDC News/SEC Alert & CEFA s Closed-End Fund Universe Report (w/ BDCs). Consulting with Institutional Investors and CEF Fund Sponsors CEFData.com: CEF/BDC /icef Web Modules Daily Data Specializing in CEF/BDC/iCEF Research, Trading & Portfolio Management Founded in 1989

3 What is a Closed-End Fund (CEF) / Business Development Company (BDC)? o 1940 Act Investment Company with Fixed-Capital, Active Management, and Daily Liquidity o CEFs have traded on The NYSE since 1893 o Tax-advantaged and earnings are passed through to investors in the form of dividends and distributions (similar to REITs and MLPs) o o CEFs can have debt and preferred shares as leverages BDCs Limited to 200% (*150%) asset coverage = total assets / total debt or one turn of leverage, excluding SBIC facilities (BDCs). Higher fee structure w/ carry o The closed-end structure is not an asset class but an investment vehicle wrapper o BDCs were created by Congress in 1980 to provide an opportunity for individual nonaccredited investors to participate in private investments o BDCs are closed-end funds that provide small, growing companies access to capital o Interval CEFs (nonlisted), have been around since 1989, but gaining traction since

7 7

8 Equity CEF 20 Year Discount Chart 8

9 Equity CEF 20 Year Discount Occurrence 30 Discount Monthly Levels (Mar '99 - Mar '19)

10 Taxable Fixed Income CEF 20 Year Discount Chart 10

11 Taxable Fixed Income CEF 20 Year Discount Occurrence 11

12 Municipal Bond CEF 20 Year Discount Chart 12

13 Municipal Bond CEF 20 Year Discount Occurrence Discount Monthly Levels (Mar '99 - Mar '19) 80% of the time higher

14 Trad CEF - Total Return March 31, March 31, 2019 NAV TR Price TR /1/2009 3/1/2010 3/1/2011 3/1/2012 3/1/2013 3/1/2014 3/1/2015 3/1/2016 3/1/2017 3/1/2018 3/1/

15 BDC Debt - Total Return March 31, March 31, 2019 NAV TR Price TR /1/2009 3/1/2010 3/1/2011 3/1/2012 3/1/2013 3/1/2014 3/1/2015 3/1/2016 3/1/2017 3/1/2018 3/1/

16 20 BDC Debt - Average Discount / Premium March 31, March 31, /1/2009 3/1/2010 3/1/2011 3/1/2012 3/1/2013 3/1/2014 3/1/2015 3/1/2016 3/1/2017 3/1/2018 3/1/

17 Types of Loans Held By BDCs 1. First Lien Loans: 60% 2. Second Lien Loans: 19% 3. Unsecured Loans: 6% 4. Equity/Other: 15% Avg Portfolio Turnover: 39.5% Avg Variable Loans: 82% / Fixed: 18% Libor Floors: 41% at 1% Avg Level Avg Loan Size: $9.2M 75% of Loans Under $25MM Average Maturity 4.3 with a range of 2 Years to 6 years Avg No of Loans: 166 from 124 Companies Source: Data as of March 31, 2019 from CEFData.com 17

18 Municipal Bonds - Total Return March 31, March 31, 2019 NAV TR Price TR /1/2009 3/1/2010 3/1/2011 3/1/2012 3/1/2013 3/1/2014 3/1/2015 3/1/2016 3/1/2017 3/1/2018 3/1/

19 Tax Equivalent Yield Comparison Married Couple with W-2 Income of $1MM+ Sources: CEFA s Universe Data as of 3/31/2019 and tax rates from IRS and NY State. 20

20 MLP - Total Return March 31, March 31, 2019 NAV TR Price TR /1/2009 3/1/2010 3/1/2011 3/1/2012 3/1/2013 3/1/2014 3/1/2015 3/1/2016 3/1/2017 3/1/2018 3/1/

21 25 MLP - Average Discount / Premium March 31, March 31, /1/2009 3/1/2010 3/1/2011 3/1/2012 3/1/2013 3/1/2014 3/1/2015 3/1/2016 3/1/2017 3/1/2018 3/1/

22 Relative Discount Opportunity 23

23 Broad Investable Universe Assets of Closed-End Funds/BDCs* by type, as of March 31, 2019 # of Funds Non Lev Total Net Premium / Market Average Beta Duration Leverage Expense Assets Discount Yield Net Assets Ratio Equity Funds 197 $107, % 7.81% % 1.43 $544 Taxable Bond 146 $63, % 7.98% % 1.42 $432 Municipal Bond 151 $64, % 4.49% % 0.99 $427 BDCs 49 $35, % 9.32% % 5.56 $727 Total CEFs 543 $270, % 7.07% % 1.68 $498 National Muni Bond 86 $46, % 4.72% % 0.94 $545 Debt Focused BDC 44 $34, % 10.22% % 6.06 $794 Covered Call 27 $19, % 8.43% % 1.11 $721 US Stock 29 $20, % 7.25% % 1.35 $717 MLP Funds 24 $12, % 10.62% % 1.83 $509 High Yield Bond 33 $11, % 7.67% % 1.24 $356 World Stock 45 $11, % 6.55% % 1.53 $250 Senior Loan 28 $12, % 7.62% % 1.64 $440 Preferred Equity 16 $10, % 7.30% % 1.23 $635 REIT Funds 10 $6, % 7.91% % 1.40 $600 Convertible Bond 10 $4, % 9.67% % 1.39 $411 Investment Grade Bond 12 $3, % 5.99% % 0.91 $324 in total CEF assets average discount exploitable undervaluation $270.5 Billion x 6.1 % = ~$16.5 Billion 24

24 CEF Universe Update Fund Grouping Discount / Premium Last Q NAV TR Last Q Price TR Discount Premium Positive Negative Positive Negative Equity Traditional CEFs 161 (82%) 35 (18%) 193 (98%) 3 (2%) 195 (99%) 2 (1%) Taxable Bond Traditional CEFs 116 (79%) 29 (20%) 143 (98%) 1 (1%) 145 (99%) 1 (1%) Municipal Bond Traditional CEFs 131 (87%) 20 (13%) 151 (100%) 0 (0%) 151 (100%) 0 (0%) BDCs 34 (69%) 15 (31%) 47 (96%) 1 (2%) 48 (98%) 1 (2%) ALL CEFs 442 (81%) 99 (18%) 534 (98%) 5 (1%) 539 (99%) 4 (1%) Data as of March 31, 2019 Source: CEFAData.com For BDC funds, we show 4Q18 NAV TR, as 3/31/2019 NAV hasn t been disclosed yet 25

25 Current Closed-End Discounts 12 Major Sectors Discount as of March 29, % 0 % Convertible Investment Grade Preferred % Covered Call Average CEF Discount -4 % -6 % -8 % BDC HY Bond Muni Bond US Stock Senior Loan % MLP % REIT World Stock % Source: CEFData.com 26

26 Discount Trends & Tax Loss Selling 12 Major Sectors CEFs (Nov Feb) 2.9% 1.9% 2.6% 3.0% 0.2% 6.4% Source: CEFData.com Average Bounce: 2.8% 27

27 CEF Volume Trends 1Q 2019 Fund Grouping Avg Vol Last Q Avg Vol Prev Q Volume Trend BDC Debt 313, ,560-5% Convertible 145, ,558-33% Covered Call 184, ,724-23% High Yield Bond 132, ,230-12% Investment Grade 66,948 94,511-29% MLP 204, ,242-33% Municipal Bond 68,674 97,168-29% Preferred Stock 127, ,897-22% Real Estate / REIT 172, ,496-19% Senior Loan 182, ,814-12% US Stock 150, ,786-31% World Stock 67,382 87,283-23% Ave Traditional Equity CEF 137, ,641-25% Ave Traditional Bond CEF 104, ,726-21% Average BDC 290, ,414-3% Average For ALL CEFs 133, ,723-20% Data as of December 31, 2018 Source: CEFAData.com 29

28 CEF/BDC Yield Comparison 12% 11.3% 10% 10.6% 10.2% 9.7% 8% 7.5% 7.3% 8.4% 8.0% 7.9% 7.7% 7.6% 7.3% 7.2% 7.7% 6% 6.6% 5.9% 5.7% 5.1% 5.5% 6.3% 6.5% 5.4% 6.0% 5.0% 4.5% 4.3% 4.6% 6.5% 4% 3.2% 3.6% 2% 0% Data as of 3/31/2019. MLP Index: Alerian MLP Index; REIT Index: Wilshire US REIT Index; Corporate Debt Index: S&P 500 Bond Index US High Yield Indices : BofA Merrill Lynch US High Yield (BB Rated, B Rated, CCC and Lower Rated ) 30

Relative UNII for Traditional CEF Municipal Bond Funds Nat Muni Bond - Relative UNII May 11, 2012 - March 29, 2019 Nat Muni Bond Av Nat Muni Bond 30 % Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13

29 Relative UNII for Traditional CEF Municipal Bond Funds Nat Muni Bond - Relative UNII May 11, March 29, 2019 Nat Muni Bond Av Nat Muni Bond 30 % Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q % 20 % 15 % 10 % 5 % 0 % -5 % Source: CEFData.com 31

30 Return of Capital (90 Day) For CEFs Main Peer Groups - Historical ROC May 11, March 29, 2019 US Equity Non US Equity Special Equity Taxable Bond Nat Muni Bond State Muni Bond BDC Debt Focused BDC Equity Focused Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q Source: CEFData.com 32

31 Destructive Return of Capital (1YR DRoC) (Traditional) Fund Grouping # Funds with Destructive RoC % Funds with Destructive RoC Average Destructive RoC % 1Yr NAV TR vs NAV Yield 3Yr NAV TR vs NAV Yield US Equity Funds 12 41% 26% -29% 55% Non-US Equity Funds Specialty Equity Funds 21 47% 42% -161% 37% 40 37% 34% -110% 20% Equity CEF 86 44% 35% -33% 26% Taxable Bond Funds 70 48% 15% -61% 15% National Muni Bond Funds 5 6% 3% 24% -24% State Muni Bond Funds 0 0% N/A 40% -28% Bond CEF 75 25% 14% -28% -2% Source: CEFA s Closed-End Fund Universe 6/30/2015 ( Average CEF % 25% -30% 11% *Whitepaper 33

Closed-End Fund Market Price volatility vs. NAV volatility (1 Year) 0.0 5.0 10.0 15.0 20.

32 Closed-End Fund Market Price volatility vs. NAV volatility (1 Year) U.S. Equity Funds Non U.S. Equity Funds Specialty Equity Funds Taxable Bond Funds National Muni Bond Single State Muni Bond Debt Focused BDC Equity Focused BDC Price Volatility NAV Volatility Source: March 31, 2019 CEFData.com 34

33 CEF Press Release SEC Filings Summary (2160 CEF PRs in 1Q19) Announcement Type 1Q Avg per Q since 2015 Rights Issue / Offering Secondary Offering (Trad CEF) Secondary Offering (BDCs) Tender Offer Distribution Policy Change(Trad CEF) Distribution Policy Change (BDCs) Filings (Trad CEF) New N-2 Filings Updated N-2 Filings Investment Manager / Advisor Change Portfolio Manager Change Leverage Amount / Type Change Source: Fund Press Releases / SEC Filings

34 CEF & BDC Dividend Increases vs. Decreases Dividend Announcement 1Q 2019 Number of Announcements 1Q 2019 Average Change 1Q 18 4Q 18 Number of Announcements 1Q 18 4Q 18 Average Change Dividend Maintains 1085 (86.2%) N/A 4370 (88.9%) N/A Dividend Increases 72 (5.7%) +5.38% 142 (2.9%) % Dividend Decreases 98 (7.8%) -8.35% 404 (8.2%) -7.29% Under 5% Increase 48 (67%) +1.90% 80 (56%) +2.21% Over 5% Increase 24 (33%) % 62 (44%) % Under 5% Decrease 44 (45%) -2.15% 186 (46%) -1.90% Over 5% Decrease 54 (55%) % 2187 (54%) % 4% of announcements Big Cuts Source: Fund Press Releases 36

35 1Q 2019 Closed-End Fund Dividend Increases vs. Decreases Major CEF Groups: Number of dividend decreases / increases Last Quarter & Previous 1 Year Rolling Last Q Decreases Previous 1 Yr Rolling Decreases Last Q Increases Previous 1 Yr Rolling Increases Source: Fund Press Releases 37

36 CEF Recent Dividend Changes (Policies NOT Promises) 3 Year Dividend Growth (4 : 1 Negative Ratio) 278 Funds (56%) had negative 3 year growth averaging -21.7% 69 Funds (14%) had positive 3 year growth averaging +15.2% 2 Year Lookback (3 : 1 Negative Ratio) 281 Funds changed their dividend policy in the past 2 years (57% of funds) 204 Cut (73%) an average of -11% while 77 (27%) increased an average of +12 % 154 of these funds have level or managed distributions 115 of those were cut an average -11% 39 were increased an average of +11% 1 Year Lookback (2.4 : 1 Negative Ratio) 96 increase vs. 226 decreases. 53 Funds had BOTH increases and decreases in the past year. Source: CEFAData.com, as of March 31,

37 CEF & BDC Historical IPOs (1Q 19) Number of IPOs Average Assets In $ millions Total New CEF IPO Assets in $ Billions $503 $94 $646 $225 $272 $511 $511 $442 $258 $371 $192 $1.5B $.5B $8.4B $1.8B $2.4B $7.7B $14.8B $12.4B $6.7B $8.2B $2.7B 10 Year Average: 17 Funds per year, $352MM Ave Fund, $6.6 Billion Per Year Source: SEC Filings, Press Releases 39

38 CEF & BDC Historical IPOs (1Q 19) $7,000 $6, Inception Assets (M) # funds 4 $5,000 $4,000 5 $3,000 2 $2,000 $1,000 $ Q'19 4Q'18 3Q'18 2Q'18 1Q'18 4Q'17 3Q'17 2Q'17 1Q'17 4Q'16 3Q'16 2Q'16 1Q'16 4Q'15 3Q'15 2Q'15 1Q'15 4Q'14 3Q'14 2Q'14 1Q'14 4Q'13 3Q'13 2Q'13 1Q'13 Source: March 31, CEFData.com 40

39 $70 $50 Energy Equity $119 $152 $340 $350 $900 Global Equity Hybrid / Balanced Debt Focused BDC Muni - High Yield High Yield Bond CLO Note: Inception Assets in millions ; data as of 3/31/2019, cefdata.com 41

40 1Q 2019 IPO Details PIMCO Energy & Tactical Credit (NRGX) Specialty Equity Funds - IPOed on February 2, 2019 IPO Price: $20.00 IPO Assets: $900M Price as of 3/31/19: $20.37 Disc/Prm as of 3/31/19: -1.7% Highland Global Allocation Fund (HGLB) Non U.S. Equity Funds - Converted on February 15, 2019 IPO Price: $15.00 IPO Assets: $350M Price as of 3/31/19: $12.92 Disc/Prm as of 3/31/19: % Tortoise Essential Assets Income Term Fund (TEAF) Hybrid / Balanced - IPOed on March 26, 2019 IPO Price: $20.00 IPO Assets: $260M Price as of 3/31/19: $20.12 Disc/Prm as of 3/31/19: 0% Source: Fund Press Releases 42

IPOs during 2Q 2018 4Q 2018 Current Discount / Premium Data

41 IPOs during 2Q Q 2018 Current Discount / Premium Data as of March 31, 2019 Source: CEFAData.com 43

Reasons to Merge: 1. Reduce expense ratio 2. Increase liquidity 3. Reduce bid/ask spread 4.

42 Closed-End Fund Mergers 60 Closed-End Funds Merged into Other Closed-End Funds (March 2019) Number of Closed - End Funds Reasons to Merge: 1. Reduce expense ratio 2. Increase liquidity 3. Reduce bid/ask spread 4. Improve cost of future leverage Source: Fund Press Releases Avg. 17 per year 31 Last 7 Yrs, 10 previous 7 Yrs 44

Closed-End Fund Deaths CEF Funds Open-Ended, Liquidated or Converted to ETF 14 12

2012 2013 2014 2015 2016 2017 2018 2019 Source: Fund Press Releases Causes:

43 Closed-End Fund Deaths CEF Funds Open-Ended, Liquidated or Converted to ETF Converted to ETF Liquidated Open-ended Source: Fund Press Releases Causes: Open-ending, liquidation & conversion. (9 per year on average) 45

44 Traditional Closed-End Fund 90 Day NAV Market Price Correlation Trad CEFs Groups - 90 Day NAV/Price Correlation June 22, March 29, 2019 All Trad CEFs All Equity All Bond US Equity Non US Equity Special Equity Taxable Bond Nat Muni Bond State Muni Bond 120 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q Source: March 31, CEFData.com 46

45 Traditional Closed-End Fund NAV Market Price Correlation Fund Grouping US Equity Funds Non-US Equity Funds Specialty Equity Funds Correlation 1Q 19 Correlation 4Q 18 Correlation Trend 86.79% 89.83% -3.04% 92.26% 89.46% 2.80% 91.85% 92.92% -1.07% Ave Equity CEF 90.10% 91.81% -1.71% Taxable Bond Funds National Muni Bond Funds State Muni Bond Funds 80.46% 79.44% 1.02% 68.06% 43.86% 24.20% 75.22% 40.47% 34.75% Ave Bond CEF 75.72% 59.83% 15.89% Average CEF 81.44% 72.42% 9.02% Data as of March 31, 2019 Source: CEFAData.com 47

46 CEF / BDC Index Performance Index 1Q 2019 NAV 12 Major Sectors Index 1Q 2019 Mkt Pr 1 Year NAV 1 Year Mkt Pr 5 Year NAV 5 Year Mkt Pr 10.74% 15.86% 7.13% 6.45% 5.09% 5.52% High Income Index 12.41% 18.85% 8.48% 7.69% 4.26% 4.19% Tax-Sensitive Income Index 13.85% 17.24% 11.45% 9.49% 2.88% 3.12% 60/40 Balanced Index 10.91% 15.95% 4.98% 5.35% 5.41% 6.06% Global Equity Index 13.40% 17.33% 3.02% 3.65% 5.70% 6.90% Equity Income Index 13.96% 17.58% 6.25% 5.12% 3.94% 4.89% Taxable Bond and BDC 6.46% 12.02% 4.06% 5.84% 4.89% 5.43% National Municipal Bond 3.85% 9.56% 6.16% 8.94% 6.07% 6.43% Preferred Equity Index 10.62% 15.67% 4.60% 8.25% 7.64% 9.69% Convertible Bond Index 13.61% 21.87% 6.02% 8.24% 4.03% 4.58% High Yield Bond Index 7.93% 13.29% 4.59% 6.13% 4.44% 4.14% Sr. Loan Index 5.66% 7.73% 2.23% -2.86% 4.01% 3.30% MLP Index 24.28% 24.29% 16.23% 7.99% -6.75% -7.37% REIT / Real Asset Index 17.89% 23.16% 15.94% 14.99% 8.50% 9.46% Debt-BDCs Index Source: CEFAData.com 48 Data as of March 31, 2019, Annualized over 1 year 2.41% 16.81% 10.39% 14.15% 7.93% 4.33%

47 CEF Institutional Holdings (1Q 19) Institutional Holdings Trends Increase: 358 funds Decrease: 125 funds Source: CEFData.com 49

48 CEF / BDC Institutional Investors (1Q 19): CEF/BDC $AUM All 13 Filings = $47 Billion. Top 50 = $33 Billion (70%) Source: CEFData.com 50

49 CEF/BDC Primary Activist / Institutional Investors Activist: 1. Ancora Advisors 2. Bull Dog Investors 3. Special Opportunities Fund (SPE -- Bulldog) 4. City of London 5. Ironsides Partners 6. Karpus Investment Management 7. Western Investment 8. Saba Capital Management 9. Elliott Associates (BDCs) 10. Wynnefield Capital (BDCs) Followers: 1. Punch & Associates Investment Management 2. Relative Value Partners Capital Partners LLC 4. Rivernorth Capital Management 5. SIT Investment Associates* 6. DG Capital Management (BDCs) 7. Sims Capital Management (BDCs) Total Assets at work 3/31/19 - $2.4 Billion Activist // $19.3 Billion Followers & Activist Source: CEFAData.com 51

50 Month Filed Mar Closed-End Fund Corporate Actions / Activist Update 1Q 2019 Filing Closed-End Fund/BDC Investor/Who Notes 13D/A Rand Capital Corp (RAND) User-Friendly Phone Book, LLC Source: SEC Filings, Press Releases 23.03% Intent to vote against stock purchase agreement Mar Proxy Bain Cap Splty Fin (BCSF) Public Secondary offer proposal (below NAV) Mar 13D/A Alcentra Capital Corp (ABDC) Stillwell 8.15% Intent to gain board representation Mar Proxy Bain Cap Splty Fin (BCSF) Public Secondary offer proposal (up to 25% shares, below NAV) Feb 13D Lzrd Wld Div & Incm Fd (LOR) Bulldog 8.9% (Inc) Non-disclosure Agrmnt Feb Proxy Tmp Emrg Mkt Fd (EMF) Public Investment Policy Change Proposal Source: SEC Filings, Press Releases 52

51 Month Filed Closed-End Fund Corporate Actions / Activist Update Source: SEC Filings, Press Releases Filing Closed-End Fund/BDC Investor/Who Notes Feb 13D Ivy Hi Incm Opp Fd (IVH) Saba 8% (Inc) Board declassification proposal Feb Announ cement BR TCP Capital Corp (TCPC) Public Leverage Amount Change - Approved Feb 13D Invsc Sr Incm Tr (VVR) Saba 8.3% (Inc) Board declassification proposal Jan Proxy Mexico Fund (MXF) Matisse Capital proposal to terminate the Investment Advisory Agreement Proxy Proxy Frk Univ Tr (FT) Public Investment Policy Change Jan 13G Nuv Muni 2021 Tgt Trm Fd (NHA) Karpus 10.7% (new) 53

52 $1,140 $421 $265 Taxable Bond $1,881 Non U.S. Equity BDC Specialty Equity $2,704 $7,102 U.S. Equity National Muni Bond Single State Muni Bond Hybrid / Balanced Funds CEF Activist Ownership $19,608 $2,969 $3,127 Note: millions of dollars, data as of 3/31/2019, cefdata.com Top 5 Peer Groups BDC Debt $2,820 Asian Equity $1,764 Loan Participation $1,636 General Equity $1,573 High Yield Bond $1,550 54

53 Interval Closed-Ended Fund (icefs) Interval funds (icefs) are growing in popularity as an alternative investment vehicle. The SEC officially authorized icefs in 1992 as a best of both world s alternative to closed-ended and open-ended funds. icefs had a slow start, the second icef wasn t created until 2001 and the third fund formed in The structure is a small (0.1%) portion of the overall multitrillion dollar fund industry. However, icefs are growing assets quickly, in the 50% range annually with 52 current funds with a combined $29.53B in AUM as of 3/31/19. This compares to CEF/BDC listed AUM of $270 billion in 543 funds according to CEFData.com. Whitepaper / Overview on:

54 Interval Closed-Ended Fund (icefs) ifunds New Funds vs Ceased New Funds Closures ifunds - Net Assets ($B)

55 Interval Funds Equity Focused 57

56 Interval Funds Debt Focused 58

57 Tender Offer Funds 59

58 Tender Offer Funds - continued 60

59 61

60 Recent Active icefs (launched since 2018) Total Active ifunds: 52. AUM: $29.53B Source: CEFData.com 62

CEFA s Outlook for 2Q and 2019 US Equity Funds Non-US Equity Funds Specialty Equity (Sector) Funds Taxable Bond Funds National Municipal Bond (Tax-Free) Funds State Specific Municipal Bond (Tax-Free)

61 CEFA s Outlook for 2Q and 2019 US Equity Funds Non-US Equity Funds Specialty Equity (Sector) Funds Taxable Bond Funds National Municipal Bond (Tax-Free) Funds State Specific Municipal Bond (Tax-Free) Funds Debt-Focused Business Development Companies (BDCs) Equity-Focused Business Development Companies (BDCs) Sustainable CEF Portfolio Distribution Yields, Beta, Correlations, Duration and After-Tax Income, Gross Asset Exposure, Leverage 63

CEF Advisors Links CEF Advisors Website: www.cefadvisors.com CEF/BDC Index Data: www.cefdata.com/cefaindex CEFA s Blog: www.cef-blog.com / CEF/BDC Research Sites: www.bdcuniverse.net -- www.cefdata.com Published Articles Seeking Alpha: http://seekingalpha.

62 CEF Advisors Links CEF Advisors Website: CEF/BDC Index Data: CEFA s Blog: / CEF/BDC Research Sites: Published Articles Seeking Alpha: WealthManagement.com: Vimeo Channel: Weekly CEF Data (14 Day Trial), Daily News Alerts (10 Day Trial), CEF Universe Data Definitions: CEFA s Form ADV Part 2A and 2B

For Your Information CEF Resources CEF/BDC Fund Profiles: www.cefdata.com The Closed-End Fund Association: www.closed-endfunds.com CEF Connect (Nuveen Sponsored): www.cefconnect.

63 For Your Information CEF Resources CEF/BDC Fund Profiles: The Closed-End Fund Association: CEF Connect (Nuveen Sponsored): Morningtar's CEF Site: Investment Company Institute: CEFNetwork (Pristine Advisers): CEF Insight (Activist Info from AST Fund Solutions): Capital Link's CEF Portal: Morningstar Discussion Board: Yahoo CEF Discussion Board: The CEF Network on LinkedIN: Seeking Alpha: More Useful Links at: 66

64 View online: -- Disclosure: See full portfolio disclosures at the end of this presentation

65 Current CEFA Portfolio Modes

66 Current CEFA Portfolio Modes

Speaker s Biography John Cole Scott, CFS Chief Investment Officer of Closed-End Fund Advisors Mr. Scott has worked at Closed-End Fund Advisors since 2001.

67 Speaker s Biography John Cole Scott, CFS Chief Investment Officer of Closed-End Fund Advisors Mr. Scott has worked at Closed-End Fund Advisors since He holds the FINRA 66 License and the Certified Fund Specialist designation (CFS). He is a graduate of The College of William and Mary and has been quoted and interviewed widely in the financial press and presented at conferences and for investment groups on more than 50 occasions. John Cole Scott, CFS EXPERIENCE CIO of Registered Investment Advisor Focused Exclusively on CEFs, BDCs & icefs since 2001 EDUCATION College of William & Mary Bachelor of Science in Psychology 2000 In 2008 John founded CEFA's Closed-End Fund Universe, a data service covering all US listed closed-end funds and BDCs. Currently supported by an internal 10 member analyst team with a data manager/ programmer covering the 600+ ticker universe of CEFs/BDCs/iCEFs. They regularly do consulting and projects for CEF/BDC Sponsors, Hedge Funds and Institutional Investors. Portfolio Consultant with over a quarter billion deposits into a fund focused on BDCs with a fund sponsor partner. He developed 35 CEF/BDC based indexes; 9 diversified portfolio objective, 9 Equity and 15 Bond sector. John is a past board member of The Richmond Association for Business Economics (RABE), and serves as Assistant Treasurer and on the Investment Committee for The New York State Society of The Cincinnati. Board member and Finance & Investment Committees for The William & Mary National Alumni Board. 70

68 Important: The information in this presentation is not for general circulation and should not be considered an offer, or solicitation, to deal in any of the mentioned funds. The information is provided on a general basis for information purposes only, and is not to be relied on as advice, as it does not take into account the investment objectives, financial situation or particular needs of any specific investor. Any research or analysis used to derive, or in relation to, the information herein has been procured by Closed-End Fund Advisors ( CEFA ) for its own use, and may have been acted on for its own purpose. The information herein, including any opinions or forecasts have been obtained from or is based on sources believed by CEFA to be reliable, but CEFA does not warrant the accuracy, adequacy or completeness of the same, and expressly disclaims liability for any errors or omissions. As such, any person acting upon or in reliance of these materials does so entirely at his or her own risk. Any projections or other forward-looking statements regarding future events or performance of countries, markets or companies are not necessarily indicative of, and may differ from, actual events or results. No warranty whatsoever is given and no liability whatsoever is accepted by CEFA or its affiliates, for any loss, arising directly or indirectly, as a result of any action or omission made in reliance of any information, opinion or projection made in this presentation. The information herein shall not be disclosed, used or disseminated, in whole or part, and shall not be reproduced, copied or made available to others without CEFA expressed written permission. CEFA reserves the right to make changes and corrections to the information, including any opinions or forecasts expressed herein at any time, without notice. Data comes from our CEF Universe service dated December 31, 2018 unless otherwise noted. 71

69 Thank You For Attending Questions? Closed-End Fund Advisors, Inc 7204 Glen Forest Drive, Suite #105 Richmond, Virginia U.S.A (800) / (804) JCS@CEFadvisors.com

QUARTERLY CLOSED END FUND & BDC REVIEW AND OUTLOOK

QUARTERLY CLOSED END FUND & BDC REVIEW AND OUTLOOK 3rd Quarter 2018 Review & 4th Quarter 2018 Outlook Intermediate/Advanced CEF Skill Level October 11, 2018 John Cole Scott, CFS Chief Investment Officer