Apollo Tactical Income FundNYSE: AIF

NEW YORK, June 11, 2024 (GLOBE NEWSWIRE) -- (NYSE: AIF) - Apollo Tactical Income Fund Inc. (the “Fund”) today announced the declaration of its distribution for the month of June 2024 of $0.144 per common share, payable on the date noted below.

The upcoming merger of Apollo CEFs AIF and AFT with BDC MFIC offers a distinctive chance for investors. Investing in AIF at this time could result in monthly income and possible profits from the merger. AIF shareholders stand to receive shares of MFIC common stock through NAV conversion and additional cash dividends if the merger is given the green light.

The Apollo Tactical Income Fund offers a high level of income with a current yield of 10.74%, higher than many other investment options. The fund has outperformed the Bloomberg U.S. Aggregate Bond Index over the past five years, giving it a history of very strong performance. The fund's management has been actively adjusting its portfolio, increasing its allocation to floating-rate loans and reducing exposure to junk bonds.

We review CEF market valuation and performance through the third week of December and highlight recent market action. CEFs had a strong week with a total return above 2%, reaching their peak total return for the year of around 8%. Covered call CEFs are not "equities at a discount" for a whole host of reasons.

Apollo Tactical Income Fund has attracted attention from income-focused investors due to its high current yield of 11.33%. The fund has outperformed the S&P 500 Index and the Bloomberg U.S. Aggregate Bond Index in recent months, making it appealing to investors. AIF's investment in floating-rate debt securities has allowed it to increase its distribution in response to rising interest rates.

Apollo Tactical Income Fund is the top-ranked senior loan closed-end fund over the past 10 years, paying a well-covered 11% distribution. Plus, "double discounts" with both the fund itself discounted 10% off its NAV, and a further discount on the market price of the fund's underlying loan portfolio. Bottom line: An overall discount of about 15+% on a well-managed portfolio of senior, secured corporate loans.

Apollo Tactical Income Fund (AIF) has delivered robust returns over the past year, thanks to its floating rate collateral, with a 15% total return on a 1-year look-back. The fund has an 11% distribution yield, and the market is pricing higher rates for the entirety of 2023, meaning the fund is likely to maintain the current distribution level. AIF has had a very range bound discount to NAV, which is now -12%, providing predictability of returns.