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Post by chang on Dec 17, 2021 6:49:39 GMT
Note that CEF TBLD is a cousin of OEF TIBAX and 2 managers are common (Kirby, Burdett). Interesting note about TBLD, yogi. Trading at a discount I would think this would be a considerably more attractive option than TIBIX. The 1.64% ER is however heftier than TIBIX’s already less-than-svelte 0.98%. TBLD’s 27% FI is significantly higher than TIBIX’s 12% and looks more like a balanced fund—and might make for a smoother ride. Edit: it's a newish CEF, not a lot of info out there, but this interview seems to have the most: aicalliance.org/wp-content/uploads/2021/09/AICA-NAVigator-Transcript-for-9102021-Featuring-Michael-Ordonez.pdfThis here is kind of nifty: "Basically this is a fund that at the end of 12 years if it’s trading at a discount, the fund will open-end or dissolve at the NAV, the net asset value. The fund has a set lifecycle and you know when you reach the end of it that you’re getting paid and things are wrapping up." |
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Post by yogibearbull on Dec 17, 2021 13:31:02 GMT
chang, TBLD being so new, there isn't much info available on it yet (I had checked M*, CEFConnect, Yahoo Finance). But there is a good video on Thornburg site. Mentioned are the "new" developments in the CEF market that prompted Thornburg to enter this space (with more to come) - fees, term structure, etc. Also interesting that the newly evolving multi-asset angle is mentioned for TBLD - that label certainly fits. Other CEFs mentioned by Forsyth may be cousins of existing OEFs that other posters may be aware of. www.thornburg.com/products-performance/closed-end-funds/multi-asset-funds/cib/portfolio/
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Post by Chahta on Dec 17, 2021 13:37:43 GMT
TBLD does not seem to be leveraged but pays 7% yield and charges an ER as if it is leveraged. Is this common for new CEFs?
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Post by yogibearbull on Dec 17, 2021 14:09:08 GMT
TBLD does not seem to be leveraged but pays 7% yield and charges an ER as if it is leveraged. Is this common for new CEFs? Probably missing data for this new CEF. Data providers use published fund reports for data and there is no report out yet. I may check its offering prospectus later. In general, equity and hybrid CEFs are not as highly leveraged as fixed-income CEFs. Edit/Add: Interesting that there is an "annual report" filing at SEC/Edgar, www.sec.gov/Archives/edgar/data/0001820378/000119312521341128/d251890dncsr.htmGoing through. I see that fishingrod noted this on leverage already. "Use of Leverage (pg 45) The Trust does not intend to employ leverage. Although it has no present intention to do so, the Trust reserves the right to in the future employ leverage through (i) borrowings of up to 33 1/3% of Managed Assets; or (ii) issue preferred shares in an amount up to 50% of the Trust’s Managed Assets. If the Trust uses a combination of borrowing money and issuing preferred shares, the maximum allowable leverage will be between 33 1/3% and 50% (but in no event more than 50%) of Managed Assets, which is the maximum extent permitted by the 1940 Act as described below. The Trust is permitted to use the following forms of leverage in combination: (a) reverse repurchase agreements, dollar rolls, derivatives or transactions that have the economic effect of leverage, (b) borrowings from a financial institution, and (c) the issuance of preferred shares." |
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Post by fishingrod on Dec 17, 2021 14:22:26 GMT
TBLD says it intends to not use leverage. It instead employs an options strategy to generate current income, which will be 10%40% of the Trusts managed assets.
4 The Trust does not intend to employ leverage. Although it has no present intention to do so, the Trust reserves the right to in the future employ leverage through (i) borrowings of up to 33 1/3% of Managed Assets; or (ii) issue Preferred Shares in an amount up to 50% of the Trust’s Managed Assets. If the Trust uses a combination of borrowing money and issuing Preferred Shares, the maximum allowable leverage will be between 33 1/3% and 50% (but in no event more than 50%) of Managed Assets, which is the maximum extent permitted by the 1940 Act. The Trust is permitted to use the following forms of leverage in combination: (a) reverse repurchase agreements, dollar rolls, derivatives or transactions that have the economic effect of leverage, (b) borrowings from a financial institution, and (c) the issuance of preferred shares.
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Post by Chahta on Dec 17, 2021 14:30:50 GMT
Seems to be a fine line drawn. Options is a form of leverage to me. Small amount of money controls a larger investment. They have to earn their ER and 7% yield somehow. Thanks for posting that.
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Post by steadyeddy on Dec 28, 2021 1:09:31 GMT
Thornburg is still cutting their teeth on CEFs.. TBLD being the first one. I think more seasoned sponsors of CEFs are available.
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Post by yogibearbull on Dec 28, 2021 1:31:06 GMT
steadyeddy, TBLD will be managed as a close cousin/clone of TIBAX/TIBIX, so what special CEF expertise is required for that? It may matter if Thornburg wants to develop an entire line of CEFs.
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Post by steadyeddy on Dec 28, 2021 1:52:58 GMT
steadyeddy , TBLD will be managed as a close cousin/clone of TIBAX/TIBIX, so what special CEF expertise is required for that? It may matter if Thornburg wants to develop an entire line of CEFs. , makes sense. Only time will tell. |
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