Published Mon, 11 Feb 2019 14:19:42 -0500 on Seeking Alpha
This article was first released to subscribers 2 weeks ago. This article was co-produced with Triple F Fred.
Today, I will profile a large CEF municipal fund with several interesting attributes. My efforts with Stanford Chemist's Income Laboratory will be focused on the RIC classification companies within the investing universe. The Regulated Investment Companies are required to pay out 90% of earnings to shareholders or pay a significant penalty. Many idiosyncrasies exist in these funds and we will work to explain how to capitalize on these issues as we go.
This arena is where I specialize as often there are inefficiencies available where an investor can produce outsize income streams. 5% yield and up is the target as right now my focus is on safety and predictability of cash flow.
Many investors overlook these companies due to the lack of understanding surrounding this arena of Regulated Investment Companies. We will work together to clear away the smoke often hanging over these income generating entities. Never hesitate to ask questions if my descriptions are not clearly articulated and I will do my best to clarify.
Nuveen AMT-Free Municipal Credit Income Fund (NVG)
Nuveen's NVG fund is a large $5.064 billion CEF focused on the US municipal bond market. The fund description as provided from Nuveen is below:
The fund's investment objectives are to provide current income exempt from regular federal income tax and to enhance portfolio value relative to the... Read more