PIMCO Energy and Tactical Credit Opportunities Fund

PIMCO Dynamic Income Strategy Fund

NEW YORK, March 01, 2024 (GLOBE NEWSWIRE) -- The Board of Trustees (the “Board”) of PIMCO Dynamic Income Strategy Fund (the “Fund”) (NYSE: PDX)1 has declared the next two distributions for the Fund's common shares, as summarized below. In addition, the Board has approved a change in the Fund's distribution frequency, from quarterly to monthly, starting with the April Distribution (as defined below).

Pimco Dynamic Income Strategy Fund Declares Common Share Distributions

NEW YORK, Dec. 01, 2023 (GLOBE NEWSWIRE) -- The Board of Trustees of PIMCO Dynamic Income Strategy Fund (the “Fund”) (NYSE: PDX) has declared a quarterly distribution for the Fund's common shares. The quarterly distribution is payable on January 2, 2024 to shareholders of record on December 11, 2023, with an ex-dividend date of December 8, 2023.

PIMCO Dynamic Income Strategy Fund Declares Quarterly Common Share Distributions

Credit Suisse Asset Management Income Fund

Credit Suisse High Yield Bond Fund

We review CEF market valuation and performance through the second week of November and highlight recent market action. Most CEF sectors struggled during the week, with only Muni sectors finishing in the green due to a reversal in Treasury yields. There is a misconception that the launch date of a fund gives it a locked-in yield position, but this is not true.

CEF Weekly Review: CEF Launch Date Doesn't Matter (For Income)

PIMCO is converting the PIMCO Energy & Tactical Credit Opps closed-end fund from an energy MLP stock fund to a multi-sector bond/credit fund to narrow the discount-to-NAV. The NRGX fund currently trades at a discount of 11.42% compared to the average multisector credit fund discount of 3.4%. By combining the long position with short exposure, the potential return is isolated and independent from market/sector returns.

Innovative Conversion: How PIMCO Is Narrowing NRGX's NAV Discount

PIMCO Dynamic Income Fund

PIMCO taxable CEFs previously had high valuations, but now discounts are appearing across most funds. Leverage changes have been negative, with most funds reducing leverage by 20% to 40%+. My inclination is to favor PHK and PDI here, given the NAV track records and sector allocations. I'm not wild on PDO and PAXS' higher exposure to CMBS.

PIMCO Update | Oct 2023 | Valuations Take A Tumble

Adams Diversified Equity Fund

Blackrock Health Sciences Trust

BlackRock Science & Technology

BlackRock Science and Technology Trust II

BlackRock Utilities Infrastructure & Power Opportunities Trust

ClearBridge Energy MLP Fund Inc

Central Securities

European Equity Fund

Templeton Emerging Markets Fund

Eaton Vance Tax Advantaged Global Dividend Opportunities Fund

Eaton Vance Tax-Advantaged Dividend Income Fund

Sprott Focus Trust

General American Investors

Gabelli Dividend & Income Trust

Gabelli Global Small and Mid Cap Value Trust

Eagle Capital Growth Fund Inc

Gabelli Healthcare & Wellness Trust

Tekla Healthcare Investors

Tekla Life Sciences Investors

India Fund Inc

Morgan Stanley India Investment Fund Inc

Barings Corporate Investors

Barings Participation Investors

Mexico Fund

Income Portfolio - 38 CEFs Worth Exploring

Longer-term bonds are becoming more attractive to institutional investors as yields catch up to shorter-term paper. The NRGX fund experienced an NAV boost due to liquidation of a large private equity position. PIMCO is converting NRGX from a mostly energy and energy MLP stock fund to a multi-sector bond/credit fund, offering attractive valuation and potential for increased distributions.

Equity CEFs: NRGX May Be A Stealth Opportunity To Get More Bond Exposure

Carlyle Credit Income Fund

FS Credit Opportunities Corp

Invesco High Income 2023 Target Term Fund

We review CEF market valuation and performance through the last week of September and highlight recent market action. CEFs finished September on a weak note, with all sector NAVs moving lower as Treasuries and stocks fell. Investors should be careful in assuming some level of institutional ownership indicates a buy signal for a given CEF.

CEF Weekly Review: Is There Value In Knowing CEF Institutional Investor Holdings?

BlackRock Energy and Resources Trust

First Trust Specialty Finance and Financial Opportunities Fund

Adams Natural Resources Fund Inc

For the second straight month, both equity (-3.12% on a NAV basis) and fixed income (-1.94%) CEFs on average suffered downside performance. At month end, 9% of all CEFs traded at a premium to their NAV, with 11% of equity CEFs and 8% of fixed income CEFs trading in premium territory. Energy MLP CEFs (-0.72%), for the second month in a row, mitigated losses better than the other classifications in the equity CEF universe for September.

The Month In Closed-End Funds: September 2023

PIMCO's Tactical Credit Opportunities Fund is changing its investment mandate to focus on multi-sector credit with a reduced allocation to energy assets. The fund will be renamed the "Dynamic Income Strategy Fund" (PDX). The change in the structure, fee reduction, and other factors should lead to a partial valuation convergence with the rest of the PIMCO taxable CEF suite.

NRGX: Change In Mandate Should Drive A Valuation Rerating

2 out of 22 CEF sectors positive on price and 1 out of 22 sectors positive on NAV. PIMCO Energy & Tactical Credit Opps will change its investment policy to a multisector fixed income fund. This will likely provide a tailwind to the NRGX fund's premium/discount valuation.

Weekly Closed-End Fund Roundup: NRGX Policy Change (September 24, 2023)

The PIMCO Energy & Tactical Credit Opps is transitioning from an energy equities closed-end fund to a credit fund. The fund will change its name to PIMCO Dynamic Income Strategy Fund and reduce its focus on energy investments. The move is expected to narrow the fund's discount to net asset value and align it with other PIMCO credit funds.

NRGX: When An Energy CEF Does A 180

Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc.

XAI Octagon Floating Rate & Alternative Income Term Trust

For the first month in three, both equity (-1.98% on a NAV basis) and fixed-income CEFs (-0.54%) on average suffered losses. At month end, 12% of all CEFs traded at a premium to their NAV, with 13% of equity CEFs and 11% of fixed income CEFs trading in premium territory. Energy MLP CEFs (-0.59%), for the first month in 12, mitigated losses better than the other classifications in the equity CEF universe for August.

The Month In Closed-End Funds: August 2023

NEW YORK, Sept. 01, 2023 (GLOBE NEWSWIRE) -- The Board of Trustees of PIMCO Energy and Tactical Credit Opportunities Fund (the “Fund”) (NYSE: NRGX) has declared a quarterly distribution for the Fund's common shares. The quarterly distribution is payable on October 2, 2023 to shareholders of record on September 11, 2023, with an ex-dividend date of September 8, 2023.

PIMCO Energy and Tactical Credit Opportunities Fund Declares Quarterly Common Share Distributions

On July 26, 2023, Saba Capital Management, L.P. (Trades, Portfolio), a renowned investment firm, added 44,028 shares of PIMCO Energy & Tactical Credit Opportunities ( NRGX , Financial) to its portfolio.

Saba Capital Management, L.P. Acquires Stake in PIMCO Energy & Tactical Credit Opportunities

The Pimco Energy & Tactical Credit Opportunities Fund is trading at a significant discount to its NAV. The fund's dividend yield is around 5.5% annually, which is not impressive for an energy-focused instrument, especially considering its high expense ratio of 1.76%. Despite a discount to NAV of over 15%, the fund's fixed-income investments have been hit by rising interest rates, and its repo financing and swaps are likely to be more expensive upon renewal.

NRGX: Nothing Special

NRGX is an energy fund offered by PIMCO, a fixed-income specialist, so it would appear outside their expertise. However, it isn't your everyday energy fund either, and it incorporates some fixed-income exposure and all the derivatives that come along with PIMCO funds.

NRGX: PIMCO's Energy Efforts, Attractive Discount

NEW YORK, March 01, 2023 (GLOBE NEWSWIRE) -- The Board of Trustees of PIMCO Energy and Tactical Credit Opportunities Fund (the “Fund”) (NYSE: NRGX) has declared a quarterly distribution for the Fund's common shares. The quarterly distribution is payable on April 3, 2023 to shareholders of record on March 13, 2023, with an ex-dividend date of March 10, 2023.

PIMCO Energy and Tactical Credit Opportunities Fund Declares Quarterly Common Share Distributions

It couldn't be any cheaper, either—this high-quality fund is trading at a 17% discount to fair value!

This 9.3% Dividend Should Soar In 2023

NRGX is PIMCO's offering in the energy-related space, with strong energy performance; the performance in more recent years has been quite strong. This fund invests fairly heavily in equity positions, a different approach from most of this sponsor's other funds, primarily focusing on fixed-income.

NRGX: Little Yield, Big Discount

NRGX is PIMCO's offering in the energy space, their rather unique fund that focuses on a tilt towards a specific sector.

NRGX: Gets A Boost, Discount Stays Wide

NRGX has an interesting position amongst its top holdings with a successful IPO recently. The fund has been performing well, along with the rest of the energy space this year.

NRGX: Not Your Everyday Energy Fund

Aberdeen Standard Global Infr Inc Fd

Bancroft Fund Ltd

Morgan Stanley Emerging Markets Domestic Debt Fund Inc

Morgan Stanley Emerging Markets Debt Fund

TCW Strategic Income Fund

Vertical Capital Income Fund.

Discounts widened a bit but remain very tight relative to historical comparisons going back to 1996. Munis are now in line with taxable avg. premiums. At this time, a counter-cyclical approach is warranted. I have been advocating rotating from leveraged, junkier, and discount susceptible structures to open-end funds.

CEF Report September 2021 | A Broken Record

PIMCO funds are often trading at significant premiums to their net asset value; that isn't the case with NRGX.

NRGX: A PIMCO Fund That Never Gets Any Love

This is a unique fund for the energy and natural resource space giving investors a bit of a reduced risk exposure to MLPs, energy companies, and utilities.

News for PIMCO Energy and Tactical Credit Opportunities Fund ETF (NRGX)