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Scott Letter: Closed-End Fund Report Interview with Cohen and Steers, Quality Income Reality Fund (RQI)

RQI-SL-Combo-2014-06June, 5, 2014, Richmond, VA. —  Closed-End Fund Advisors is pleased to announce an in-depth interview in The Scott Letter: Closed-End Fund Report with Jason Yablon, portfolio manager at Cohen & Steers on  their Quality Income Reality Fund (RQI). We found the interview to be a timely update on the Real Estate / REIT sector as well as how the fund is being managed and positioned in the current economic and interest rate environment. If you are not already a subscriber to The Scott Letter, a subscription is free on our website

Once you sign-up, you will receive the interview as well as gain access to our firm’s periodic email updates on our services, CEF markets and various articles, webinars and live CEF conferences or meetings we host or are otherwise involved with in some way.  Free Scott Letter Registration:



Closed-End Fund Discounts: A Master-Class in Nuance

ImageWe are often asked, “So, your firm buys closed-end funds, do you just buy at a discount and sell at a premium?” After thirteen years in the industry the answer is, “Yes, but all discounts are not created equal”.  In this article we hope to address three areas that we believe investors should better understand before venturing into the closed-end fund (CEF) structure. First let’s look at Absolute Discounts vs. Relative Discounts charted over the past two years.  An Absolute Discount is the fund’s current Market Price vs. Current Net Asset Value (NAV).  CEFA defines a Relative Discount as a fund’s Current Discount/Premium vs. its 90-day Average Discount/Premium. We see Relative Discounts as a way to monitor the momentum and recent relative value of a fund’s Current Discount. For some CEFs trading near their Historical Average Discount level is normal while other CEFs routinely trade with a high level of Discount Volatility. We think that this information is important to comprehend. The graphs below track the Average Read more…

REPLAY – Updated Municipal Bond Webinar: Can CEFs Help Build a 6.25%+ Tax-Free Yielding Portfolio?*


Today’s live webinar on how a portfolio using closed-end funds to gain municipal bond exposure has been archived with the slides and replay below: 

Please click here for the Presentation Slides in PDF format: [Here]

To download and view the webinar replay click [Here]

CEFA launched a Municipal Bond Portfolio Model this quarter and offers three options for tax-free investors looking for professional management:. 1. National Muni Focus 2. New York Muni Focus and 3. California Muni Focus. This session focused on the National model. If you live in California or New York please call or email us to learn more. or toll-free (800) 356-3508 / (804) 288-2482.

CEFA also offers a Monthly CEF “Best Ideas List”, Weekly “CEF Universe” data service and a “Daily CEF News Alert” service for investors or investment professionals that want to access the firm’s resources without hiring us as an investment manager. We have free trials for the news and data services and offer prorated refunds on any services offered by the firm. 

“Distribution Downturn” Investius Interview from Capital Link’s Conference in New York City

ImageDistribution Downturn

Many taxable bond CEFs have cut their distributions in the past six months and this trend may continue, says John Cole Scott of CEF Advisors.



In recent months you may have seen a dip in your taxable bond fund’s distributions.  While equity and muni fund payouts appear relatively stable, John Cole Scott of CEF Advisors says taxable bond funds may continue to suffer a distribution downturn.

Watch Video Interview:

John Cole Scott on The Street with Greg Greenberg Covering Some Attractive CEFs Based on Yield, Discounts and NAV Performance


Closed-end fund investors should consider buying the Blackrock MuniHoldings Quality Fund (MUE) because of its 6.6% dividend yield and double digit discount, says John Cole Scott, portfolio manager for Closed-End Fund Advisors. Scott is also bullish on the Cohen & Steers MLP Income and Energy Opportunity Fund (MIE) because of its high yield and overly wide discount, despite the fact that its only a year old. Finally, Scott is a fan of the highly diversified Nuveen Diversified Dividend & Income Fund (JDD) which yields about 8.5% with significant exposure to equity and bond investments. Data from CEFA’s Closed-End Fund Universe dated 4/17/14.

Money Life Talk Show Interview of John Cole Scott by Chuck Jaffe

ImageJohn Cole Scott appeared on Chuck Jaffe’s Money Life talk show for April 16, 2014. 

We discussed the firm’s investment approach, sector and funds we currently see as attractive, as well as, commentary on some of Chuck’s listeners CEFs of interest for his well-known “Hold It or Fold It” segment. 

NOTE: We referenced Eaton Vance Tax Advantaged Dividend fund (EVT) as a fund we saw as attractive, but spoke “ETV”, Eaton Vance Tax Managed Buy-Write Fund which is more of a option premium / covered call fund. We apologize for any confusion. 

You can listen to the show by clicking this link: [Click Here]

Or, copy and past the following link:

MoneyLife host Chuck Jaffe is senior columnist for MarketWatch. His three weekly columns are syndicated nationally, and his “Your Funds” column is the most widely read feature on mutual fund investing in America. In 2009, Chuck was named to MutualFundWire’s list of the 40 Most Influential People in Fund Distribution, the only journalist ever to make the list. Learn more on their website:

Closed-End Fund Advisors: First Quarter 2014 CEF Review and Outlook Summary and WEBINAR REPLAY Links

ImageFor those that were not able to attend our Quarterly Research Call on Wednesday April 9th at 4:30pm EST, in which we covered The Closed-End Fund Universe, we have included the slides and replay file with the following summary article, which roughly follows the slide order in the slide deck.

Link to Webinar replay slides:
Webinar Replay; 



According to our CEF Universe Service dated March 31, 2014, during the first quarter of 2014 the closed-end fund universe ended with 595 funds totaling $259B in total net assets, which reflects an asset growth of about 3% year-to-date. There were 227 total Equity funds and 368 total Bond funds.  The average discount to NAV is -6.7% and the average market price yield is7.1%.  In general, discounts have been fairly stable during this quarter vs. their previous 9 months of general discount widening.

CEF Yield, Volume and Liquidity: At current market prices and distribution policies, 89% of all CEFs yield over 5% and 53.1% of all CEFs yield between 6.5% and 10%, which we feel is the core income universe for CEFs. Yields for CEFs peaked last summer and while they are still at very attractive, they are off the year-end tax-loss selling highs. The one major sector with an increase to the income-only portion of the yield is US Equity funds which have shown nice increases in March 2014. Trade volumes are down in March vs. the first quarter by about -4%; this trend is most pronounced in National Muni CEFs, which are trading down -8% and Non US CEFs, which are trading down -10% on average. Liquidity for CEFs is trending down from the abnormally high levels during the tax-loss selling season of the fourth quarter of 2013. Currently about 63.7% of closed-end funds trade over $500K a day in average liquidity, with less than 3% of CEFs trading over $5M a day in liquidity . Read more…


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