Closed-End Fund Weekly Update December 21, 2012

Transcription

1 Closed-End Fund Weekly Update December 21, 2012 U.S. Equity Funds Gabelli Utility Trust GUT completed a transferable rights offering, in which it will issue roughly 9 million new shares for proceeds of $54 million. Because the offering was oversubscribed, shares will be issued on a pro rata basis. Cohen & Steers Tot Ret Realty RFI $ % 2.6% $ Cohen & Steers Dividend Majors DVM $ % 2.0% $ First Trust Energy Inc&Growth FEN $ % 3.2% $ JH Bank & Thrift Opportunity BTO $ % 3.3% $ Royce Micro Cap Trust RMT $ % 3.6% $ ClearBridge Energy MLP TR Fund CTR $ % 2.8% $ DH Financial Trends Fund DHFT $ % -2.9% $ BlackRock Health Sciences BME $ % -2.1% $ Salient Midstream & MLP Fund SMM $ % 4.2% $ First Trust Specialty Finance FGB $ % 4.5% $ BlackRock Real Asset Equity BCF -9.0% -2.8% -2.0% 8.8% Central Securities Corporation CET -20.9% -18.3% -17.3% 3.3% BlackRock Global Opportunities BOE -13.5% -10.1% -3.3% 9.5% Petroleum & Resources PEO -14.7% -12.9% -12.8% 2.0% BlackRock Energy & Resources BGR -9.1% -5.0% -4.5% 6.9% Gabelli Glb Health & Wellness GRX -10.1% -12.1% -15.3% 3.4% DH Financial Trends Fund DHFT -3.9% -7.1% -13.8% 0.4% RMR Real Estate Income Fund RIF -13.7% -14.5% -18.2% 6.9% H&Q Life Sciences Investors HQL -0.9% -2.4% -10.2% 8.2% Kayne Anderson Energy Dev Co KED 5.9% 8.1% -7.3% 6.4% All of the U.S. equity CEFs appear undervalued on a three-year statistical basis. Gabelli Global Health & Wellness GRX and DH Financial Trends Fund DHFT appear overvalued on a three-year statistical basis.

2 Morningstar Closed-End Fund Research 2 Global & International Equity Funds Eaton Vance Tax Advantage Global Dividend Opportunities ETO increased its monthly distribution by 15.7%, to $ per share from $ per share. MS China A Share CAF $ % 6.5% $ Thai Fund Inc TTF $ % 1.9% $ Japan Equity Fund JEQ $ % 6.3% $ Latin American Discovery Fund LDF $ % 3.4% $ MS Eastern Europe RNE $ % 3.6% $ JH Tax Advantaged Global HTY $ % 0.3% $ Alpine Global Dynamic Dividend AGD $ % 1.4% $ Brookfield Glo List Infr Inc INF $ % 2.2% $ Wells Fargo Adv Glo Div Opp EOD $ % 0.9% $ Korea Fund KF $ % -0.1% $ Aberdeen Israel ISL -16.0% -13.8% -11.4% 2.3% Nuveen Global Value Opp JGV -9.0% -7.7% -3.9% 8.0% Turkish Investment Fund TKF -11.9% -11.1% -9.9% 1.4% GDL Fund GDL -15.2% -12.8% -11.7% 11.4% EV Tax Adv Global Dividend Inc ETG -8.9% -6.1% -6.2% 8.9% Greater China Fund GCH -2.0% -7.8% -9.9% 0.4% Gabelli Multimedia GGT -4.0% -6.0% -10.7% 10.1% Thai Capital Fund Inc TF -4.0% -8.4% -11.9% 1.2% MS China A Share CAF 4.8% -6.8% -4.5% 0.0% China Fund Inc CHN -4.8% -8.9% -8.7% 1.7% Aberdeen Israel ISL and Nuveen Global Value Opportunity JGV appear undervalued on a three-year statistical basis. Greater China Fund GCH appears overvalued on a three-year statistical basis.

3 Morningstar Closed-End Fund Research 3 Hybrid Funds Nuveen Tax-Adv Div Growth JTD $ % 1.8% $ Delaware Enhanced Gbl Div&Inc DEX $ % 1.6% $ LMP Capital & Income SCD $ % 2.4% $ Lazard Glb Total Return & Inc LGI $ % 2.7% $ Clough Global Allocation GLV $ % 3.1% $ RENN Glb. Entrepreneurs Fund RCG $ % 0.0% $6.0 7 Flah&Crum Preferred Income PFD $ % 1.7% $ MFS Special Value Trust MFV $ % 0.7% $ Nuveen Quality Preferred Inc 2 JPS $ % 0.5% $1, Nuveen Quality Preferred Inc JTP $ % 1.2% $ DNP Select Income DNP 11.2% 21.1% 28.7% 8.4% RENN Glb. Entrepreneurs Fund RCG -47.7% -37.8% -28.0% 0.0% Advent Claymore Enh Grth & Inc LCM -13.2% -10.9% -7.7% 9.1% Bancroft Fund BCV -15.2% -13.9% -13.4% 3.1% Gabelli Convertible & Income GCV -7.4% -2.0% -0.4% 9.1% Nuveen Tax-Adv Div Growth JTD -3.2% -5.3% -8.6% 7.1% Guggenheim Enhanced Eq. Strtgy GGE -7.3% -10.3% -12.4% 11.2% Calamos Strategic Total Return CSQ -6.7% -5.2% -11.0% 8.4% LMP Capital & Income SCD -4.3% -5.1% -9.6% 8.1% Nuveen Pref Income Opps Fund JPC -4.8% -3.1% -9.5% 7.8% All of the hybrid CEFs appear undervalued on a three-year statistical basis. Nuveen Tax-Advantage Dividend Growth JTD appears overvalued on a three-year statistical basis.

4 Morningstar Closed-End Fund Research 4 Taxable Fixed-Income Funds Montgomery Street Income Securities MTS upped its quarterly distribution by 31.8%, to $0.29 per share from $0.22 per share. Global Income Fund GIFD $ % 1.9% $ American Income Fund MRF $ % 0.1% $ Western Asset IG Defined Opp IGI $ % 0.0% $ EV Floating Rate Income EFT $ % 0.4% $ PIMCO Corporate & Income Opps PTY $ % 0.7% $1, Sprott Physical Silver Trust PSLV $ % -7.8% $ Central Fund of Canada CEF $ % -3.6% $5, PIMCO High Income Fund PHK $ % 0.2% $1, Central GoldTrust GTU $ % -2.5% $1, Sprott Physical Gold Trust PHYS $ % -2.9% $2, Eaton Vance Floating Rate Income EFT announced that it plans to redeem its outstanding Auction Rate Preferred shares with the $80 million proceeds of a new Variable Rate Term Preferred Shares offering. EFT was also one of this week s largest price gainers. AGIC Convertible & Income II NCZ 1.8% 11.1% 11.1% 13.0% PIMCO Global StocksPLUS & Inc PGP 31.5% 64.7% 63.5% 12.4% AGIC Convertible & Income NCV 1.8% 9.3% 8.9% 12.5% Global Income Fund GIFD -22.8% -19.7% -18.4% 6.8% PIMCO High Income Fund PHK 23.4% 58.8% 52.5% 14.1% Western Asset Emerg Mkts Debt ESD -1.6% -3.2% -7.8% 6.6% BlackRock Strategic Bond BHD 4.1% 2.1% -3.5% 6.6% Nuveen Credit Strat. Income JQC -1.8% -2.2% -10.1% 8.6% MFS Intermediate Income MIN 6.2% 4.5% 0.0% 8.1% Templeton Emerging Mkts Income TEI 7.2% 5.7% 0.7% 5.9% All of the taxable fixed-income CEFs appear undervalued on a three-year statistical basis. Note that PIMCO Global StocksPlus & Income PGP and PIMCO High Income PHK still trade at 31.5% and 23.4% premiums, respectively. Western Asset Emerging Markets Debt ESD appears overvalued on a three-year statistical basis.

5 Morningstar Closed-End Fund Research 5 National Municipal Funds Nuveen CA Investment Quality Municipal NQC, Nuveen PA Investment Quality Municipal NQP, and Nuveen PA Premium Income Municipal NPY each announced that they will replace their current series of Variable Rate Demand Preferred Shares (VRDPs) with another series of VRDPs with a redemption date of Dec. 1, NQC and NPY also issued an additional $10 million and $5 million in shares of the new series, respectively. Nuveen Quality Income Municipal NQU issued an additional $40 million in its current series of VRDPs. Nuveen Select TaxFree Income NXP, Nuveen Select TaxFree Income 2 NXQ, and Nuveen Select TaxFree Income 3 NXR have each filed an initial registration statement to establish an equity shelf program. The board of directors of Nuveen Muni High Income Opportunity NMZ and Nuveen Muni High Income Opportunity 2 NMD each approved NMZ s acquisition of NMD. BlackRock CA Muni 2018 Term BJZ, BlackRock FL Municipal 2020 BFO, BlackRock Muni 2018 Term BPK, BlackRock Municipal 2020 BKK, and BlackRock NY Muni 2018 Term each announced that the S&P Municipal Bond 7 Day High Grade Index will now determine the maximum reset rates on their outstanding auction-rate preferred shares, effective Jan. 1, NXP is currently trading close to NAV, while NXQ and NXR are trading at discounts. Nuveen Intermediate Dur Muni NID $ % -1.5% $724.0 # VALUE! Nuveen Municipal Value Fund 2 NUW $ % -1.2% $ Pioneer Municipal High Income MHI $ % -0.9% $ Western Asset Intermediate Mun SBI $ % -1.0% $ EV Municipal Bond II EIV $ % -2.0% $ Invesco VK Municipal Trust VKQ $ % -1.8% $ Delaware Invest National Muni VFL $ % -2.0% $ Dreyfus Municipal Income DMF $ % -1.9% $ BlackRock Municipal Income II BLE $ % -2.3% $ Nuveen Investment Quality Muni NQM $ % -1.6% $ MFS High Yield Municipal Trust CMU -0.4% 6.2% 5.3% 5.8% Nuveen Dividend Advantage 3 NZF -5.4% -2.8% -2.4% 5.2% BlackRock Muni 2018 Term Trust BPK 3.4% 5.1% 6.0% 5.5% Nuveen Dividend Advantage 2 NXZ -5.3% -1.7% -1.9% 5.3% Invesco VK Muni Opps. Trust VMO 0.6% 4.9% 4.0% 6.6% Western Asset Municipal Part MNP 4.0% 3.5% -3.0% 4.8% BlackRock MuniYield Inv Fund MYF 3.3% 2.4% -1.2% 5.6% BlackRock MuniYield Quality MQY 3.6% 3.8% -1.0% 5.6% DTF Tax-Free Income DTF 0.9% 1.2% -3.4% 4.8% Western Asset Intermediate Mun SBI 1.3% 2.5% -1.8% 4.5% MFS High Yield Municipal appears undervalued on a three-year statistical basis. All of the national-municipal funds appear fairly valued on a three-year statistical basis.

6 Morningstar Closed-End Fund Research 6 State Municipal Funds EV NJ Municipal Bond EMJ $ % -1.8% $ Nuveen NJ Div Adv Muni 2 NUJ $ % -1.5% $ EV NJ Municipal Income EVJ $ % -1.5% $ Nuveen OH Quality Income Muni NUO $ % -0.9% $ Nuveen NY Municipal Value NNY $ % -1.0% $ BlackRock NJ Municipal Bond BLJ $ % -2.1% $ EV OH Municipal Bond EIO $ % -2.1% $ BlackRock MD Muni Bond BZM $ % -1.6% $ EV PA Municipal Bond EIP $ % -2.3% $ EV MI Municipal Bond MIW $ % -1.5% $ Nuveen TX Quality Income Muni NTX 1.6% 5.8% 7.1% 4.6% EV CA Municipal Bond EVM -6.7% -3.7% 1.4% 5.4% MFS California Municipal Fund CCA -5.4% -1.2% 2.1% 5.0% EV NY Municipal Bond ENX -2.6% 0.4% 1.7% 4.9% EV NY Muni Bond II NYH -1.1% 0.9% 3.4% 5.0% Nuveen OH Quality Income Muni NUO 11.0% 7.2% -0.8% 4.9% Nuveen NY Select Tax Free NXN 3.3% 1.0% -2.1% 4.3% Delaware MN Muni Income II VMM 0.0% -1.1% -7.1% 4.5% Nuveen NJ Municipal Value Fund NJV 1.8% -0.3% -3.6% 3.6% EV OH Municipal Income EVO 8.2% 4.8% 1.0% 5.0% Nuveen TX Quality Income Municipal NTX and Eaton Vance CA Municipal EVM appear undervalued on a threeyear statistical basis. Nuveen OH Quality Income Municipal NUO, Nuveen NY Select Tax Free NXN, Delaware MN Muni Income II VMM, and Nuveen NJ Municipal Value NJV appear overvalued on a three-year statistical basis.

7 Morningstar Closed-End Fund Research 7 * All data in the accompanying tables is as of the market close Thursday, Dec. 20, One-week total price return percentages are calculated from the prior Thursday's market close. In some limited cases, funds do not disclose their daily NAV values, and in such cases their estimated NAV (based on the performance of their most recently published holdings) is used. ** The funds listed in the tables are ranked according to their one-week price total return. *** The funds listed in the tables are ranked using three-year z-scores that are not shown. This statistic measures how many standard deviations a fund's discount/premium is from its three-year average discount/premium. For instance, in these tables, a fund with a z-score of -2 would be two standard deviations below its threeyear average discount/premium. Over a long period of time, a fund would be expected, statistically speaking, to have a z- score of -2 or lower only 2.14% of the time. Funds with the lowest z-scores are considered to be relatively cheap, while those with the highest z-scores are considered to be relatively expensive. We consider funds with a z-score of -2 or lower to be "statistically undervalued" and those with a z-score of +2 or higher to be "statistically overvalued."