Written by David Fabian, November 06th, 2017
One of the closed-end funds that seems to be a recurrent favorite on our watch list is the DoubleLine Opportunistic Credit Fund (DBL), run by Jeffrey Gundlach of DoubleLine Capital. This unique actively managed portfolio was the first of its kind to debut from DoubleLine back in 2012 and has developed a cult following among CEF investors.
DBL primarily invests in a mixed basket of mortgage backed securities, collateralized loan obligations and other asset backed securities. The fund has just over $325 million in total assets with a relatively tame 16% leverage ratio to boost its net exposure. It currently yields over 8% annually and income is paid monthly to shareholders. Read more
Written by David Fabian, August 21st, 2017
Virtually every corner of the closed-end fund (CEF) marketplace has been on an unrelenting grind higher over the last 18-months. Very few pullbacks have meant that you either had to be in these vehicles to capture the capital appreciation from the get-go or grind your teeth and jump in at some random point along the way. Read more
Written by David Fabian, July 12th, 2017
If you dabble in the closed-end fund market long enough, you are probably going to own a fund that sees its dividend cut. This seemingly innocuous event can have numerous ripple effects for shareholders that should be carefully evaluated before you respond with any knee-jerk reactions. Read more
Written by David Fabian, June 05th, 2017
The investment universe is littered with articles touting the advantages of various funds or strategies. I should know. I have written for the last five years about the characteristics of ETFs and closed-end funds that we consider for our clients. Some pass my rigorous test, while others are weeded out through careful analysis.
Throughout this time, I have realized it’s easy to compare two or three funds in a vertical category and dissect their merits. Some will stand out based on costs, while others may promote index methodology, tax efficiency, or security selection as their primary benefits. Read more
Written by David Fabian, February 10th, 2017
Income investors with large taxable accounts are consistently focused on maximizing their total return and minimizing the impact of taxes on their nest egg. That means seeking out funds that are sensitive to the type of income they produce and the implications of using capital losses to offset gains.
Exchange-traded funds (ETFs) are one avenue for investors to consider in this pursuit. Many ETFs that track a passive index have low portfolio turnover rates and often pay little to zero capital gains at year-end. These make for a truly inexpensive and effective vehicle for tax-conscious investors that want diversified stock or bond exposure. Read more