Sprott Physical Gold and Silver Trust (CEF) Stock

We review the CEF market valuation and performance through the third week of December and highlight recent market action. All CEF sectors declined this week due to a more hawkish Fed, with most discounts widening except for the loan sector. The sharp rise in Municipal CEF distributions this year is disproportionate to net income increases, driven by efforts to tighten discounts and deter activists.

PIMCO Muni CEF distribution coverage levels have sharply fallen to around 80%, correcting previously inflated figures likely due to calculation errors. Taxable PIMCO CEFs delivered strong returns, with PAXS and PDO benefiting from the CMBS market recovery, and PGP supported by its equity sleeve. Further NAV falls may pressure future distributions due to lack of retained income.

Several closed-end funds, or CEFs, have declared special year-end distributions, rewarding shareholders with holiday bonuses and meeting regulatory distribution requirements to avoid excise taxes. PIMCO Dynamic Income Strategy Fund declared a special distribution of $0.37 per share, reflecting strong capital gains and a strategic shift from its energy-focused origins. Barings Participation Investors announced a special distribution of $0.10 per share, highlighting its strong performance and commitment to high current income and capital appreciation.

We review the CEF market valuation and performance through the second week of December and highlight recent market action. CEFs mostly declined this week due to a 0.25% rise in 10-year Treasury yields, with only the loan sector showing a slight NAV gain. The BlackRock Enhanced Government Fund (EGF) will merge into BlackRock Income Trust (BKT); high-quality funds like these are not ideal in CEFs.

We review the CEF market valuation and performance through the first week of December and highlight recent market action. The CEF market showed mixed performance; MLPs, Utilities, and Hybrid CEFs top year-to-date returns. Eaton Vance and Nuveen made minor distribution adjustments; Invesco's VBF hiked by 15%, while XFLT cut by 9%.

Ellington Credit Company is attempting to transition from an REIT to a CEF, facing challenges in obtaining shareholder approval despite strong support. The company issued “mirror preferred” shares to amplify voting power and plans to hold another special shareholder meeting in early 2025. The transition aims to avoid double taxation on CLO investments and improve net interest margins, but delays could impact 2025 tax liabilities.

We review the CEF market valuation and performance through the last week of November and highlight recent market action. The CEF market saw strong performance, with all sectors finishing in the green, driven by falling Treasury yields and easing inflation concerns. BlackRock increased distributions on 8 equity CEFs to close discounts.

We review the CEF market valuation and performance through the third week of November and highlight recent market action. CEFs had a positive week, with most sectors gaining except for higher-quality sectors like Munis and Agencies. MLPs led month-to-date returns with double-digit gains. The Western Asset Emerging Market Debt Fund raised its distribution by 4%, but its 70% coverage ratio makes it less appealing.

We review the CEF market valuation and performance through the third week of November and highlight recent market action. CEFs faced challenges this week due to inflation concerns and higher Treasury yields, with REIT funds underperforming and MLP funds leading month-to-date. Allspring CEFs increased their managed distribution rates, potentially causing NAV drag due to distributions exceeding total NAV returns, risking future distribution cuts.