Skip to content

January 2012 Closed-End Fund Press Release Review

February 1, 2012

We thought it would be beneficial for investors to see trends that are forming in the closed-end fund industry. The following is the summary of all press releases for the traditional closed-end funds for the month of January.

AGM – Annual Meeting: 4
CEF Merging into CEF: 5
CEF Merging into ETF: 0
CEF Open-Ending: 0
Dividend Decreases (-) 10
Dividend Increases (+) 4
Dividend Maintains (0%) 302
Fund Liquidation: 0
Fund Shareholder Updates: 4
Investment Policy Change: 17
IPO Announcement: 1
IPO Now Trading: 1
Leverage Amount Change: 1
Name Change: 19
Proposals (AGM etc): 3
Repurchase: 1
Rights Issue: 1
Tender Offer: 2
Trustee/BOD Resignation: 2

Total Press Releases: 395

Some Key Highlights:

Investment Policy Changes:  Were secluded to the municipal bond sub-group of closed-end funds. It involved the various funds requirement for holding insured muni bonds in their investment portfolio. This is a change that we do not see as a significant impact for how we rate these funds from a credit risk perspective.

Fund Mergers: 

  • Reorganization of BlackRock Equity Dividend Trust (BDV) with and into BlackRock Enhanced Equity Dividend Trust (BDJ) and BlackRock Strategic Equity Dividend Trust (BDT).
  • RMR Real Estate Income Fund (RIF) was merged with and into the RMR Asia Pacific Real Estate Fund (RAP)

Dividend Changes:

  • The average dividend increase was +15.63%
  • The average dividend decrease was -5.33%
The CEF dividend increase average was driven by one 50%+ dividend increase

Dividend Cuts Over 5%

1/3/2012
MMT
MFS Multi-Market Income Global Income Funds
Non Leveraged
-19.81%

1/4/2012
LOR
Lazard World Dividend & Income Global Equity
-11.89%

1/4/2012
LGI
Lazard Glb Total Return & Inc Global Growth & Income
-7.96%

1/3/2012
ZF
Zweig Fund General Equity Funds
-5.75%

Dividend Raises Over 5%

1/3/2012
DCA
Virtus Total Return Fund US Real Estate Funds
+56.00%

Tender Offers Completed:

1/4/2012
SCD
LMP Capital & Income
Tender Offer 16.91%

1/17/2012
RAP
RMR
Asia Pacific Real Estate
Tender Offer 20.00%

Comments are closed.

%d bloggers like this: