BrandywineGLOBAL Global Income Opportunities Fund provides global diversification for income-focused investors. The BWG closed-end fund outperformed U.S. bond indices over the past several months, showing potential for higher returns. The BWG fund's leverage declined slightly over the past nine months, but it is still higher than peers, so it will probably be more volatile.
The abrdn Global Income Fund is showing signs of an unsustainable high distribution rate and a high premium, which could lead to poor results. The BrandywineGLOBAL - Global Income Opportunities Fund offers a more sustainable alternative for global fixed-income investments, despite an elevated distribution, due to its deep discount. The biggest risk to this swap is FCO remaining at its current high valuation or pushing even higher into premium territory, producing an opportunity cost if BWG stays at a deep discount and FCO rises.
In June, 92% of all closed-end funds (CEFs) posted net asset value (NAV)-based returns in the black, with average returns of 3.57% for equity CEFs and 1.63% for fixed income CEFs. The Natural Resources CEFs classification topped the equity leaderboard with a 6.29% return, while High Yield CEFs led the domestic taxable fixed income leaderboard with a 2.63% return. The median discount of all CEFs narrowed to 10.79% in June, with equity.