08. Discount CEF/BDC Index

About the Index

(1) Traditional closed-end funds (CEFs) according to CEFdata.com with $250K+ 90-day average trading dollar $ liquidity. The funds also meet the following criteria: Discount wider than -6.5%, 1-year Discount Range under 65%, 6-month Relative Z-stat under -0.25 and Comp Discount under 0. Rank the remaining funds by the 50 largest (smallest/lowest) discounts. (2) Business Development Companies (BDCs): Equity or Debt-Focused BDCs with -6.5% or lower Discounts, Comp Discount under 0 and below average 6-month Relative Z-Stats. Rank the remaining lowest 10 3-year relative discounts. Traditional CEFs are an 87.5% allocation and BDCs are an 12.5% allocation for this index with the underlying funds equal weighted into their overall allocation. The index constituents will be rebalanced each quarter.

Index Performance

	Current($)	Previous Day(%)	1 Week(%)	1 Month(%)	3 Month(%)	6 Month(%)	1 Year(%)	3 Year(%)	5 Year(%)	MTD(%)	QTD(%)	YTD(%)
Price	1,271.46	0.56	0.86	-0.74	1.53	3.09	14.90	9.43	8.14	0.20	-0.32	18.71
NAV	1,165.68	0.39	-0.03	-1.44	0.89	1.33	8.12	6.12	4.13	-0.17	-0.21	9.25
Difference		-0.17	-0.89	-0.71	-0.64	-1.76	-6.77	-3.31	-4.02	-0.36	0.11	-9.46
* Periods greater than 1 Year are annualized. ** On Inception Date (12/30/16), Index Price was $1,000 and NAV was $1,000.00

2019 - Monthly Performance (%)
	Jan	Feb	Mar	Q1	Apr	May	Jun	Q2	1H	Jul	Aug	Sep	Q3	Oct	Nov	Dec	Q4	2H	2019
Price	11.18	2.19	1.40	15.20	2.11	-2.58	3.67	3.13	18.33	1.03	-2.01	1.71	0.69	-0.90	0.39	-	-	-	18.51
NAV	4.80	1.14	1.71	7.81	0.92	-1.70	2.97	2.15	9.96	-0.21	-1.11	0.83	-0.50	-0.03	-0.01	-	-	-	9.42
Difference	-6.38	-1.05	0.31	-7.40	-1.19	0.88	-0.70	-0.98	-8.37	-1.24	0.90	-0.88	-1.19	0.88	-0.41	-	-	-	-9.09
2018 - Monthly Performance (%)
	Jan	Feb	Mar	Q1	Apr	May	Jun	Q2	1H	Jul	Aug	Sep	Q3	Oct	Nov	Dec	Q4	2H	2018
Price	1.63	-3.14	0.02	-1.54	0.68	0.27	-0.30	0.66	-0.88	1.33	0.78	-1.19	0.90	-3.67	1.69	-2.86	-4.84	-3.93	-4.82
NAV	1.58	-2.73	0.23	-0.97	0.29	0.09	-0.09	0.29	-0.68	1.14	-0.26	-0.01	0.87	-2.24	0.66	-0.75	-2.33	-1.47	-2.15
Difference	-0.05	0.41	0.20	0.57	-0.40	-0.18	0.21	-0.37	0.20	-0.19	-1.04	1.18	-0.04	1.42	-1.03	2.11	2.50	2.47	2.67
2017 - Monthly Performance (%)
	Jan	Feb	Mar	Q1	Apr	May	Jun	Q2	1H	Jul	Aug	Sep	Q3	Oct	Nov	Dec	Q4	2H	2017
Price	4.12	1.93	0.42	6.58	1.74	0.14	0.46	2.36	8.94	2.50	-0.26	1.31	3.57	-1.80	-0.25	1.23	-0.85	2.73	11.67
NAV	2.01	1.68	0.45	4.19	0.48	0.10	0.26	0.84	5.03	1.63	0.29	0.57	2.50	-0.21	0.13	1.26	1.18	3.68	8.71
Difference	-2.12	-0.25	0.02	-2.40	-1.26	-0.04	-0.21	-1.52	-3.91	-0.87	0.55	-0.74	-1.07	1.59	0.39	0.03	2.03	0.95	-2.96
2016 - Monthly Performance (%)
	Jan	Feb	Mar	Q1	Apr	May	Jun	Q2	1H	Jul	Aug	Sep	Q3	Oct	Nov	Dec	Q4	2H	2016
Price	-4.86	0.96	8.62	4.33	4.78	0.74	2.87	8.59	12.92	4.60	1.81	1.40	7.99	-2.75	0.52	2.74	0.43	8.42	21.34
NAV	-2.80	0.17	4.60	1.85	3.43	0.82	2.04	6.41	8.26	2.39	0.43	1.25	4.12	-1.64	-0.11	2.14	0.35	4.47	12.74
Difference	2.06	-0.78	-4.02	-2.48	-1.35	0.08	-0.83	-2.18	-4.66	-2.21	-1.38	-0.15	-3.87	1.11	-0.63	-0.60	-0.08	-3.94	-8.60
2015 - Monthly Performance (%)
	Jan	Feb	Mar	Q1	Apr	May	Jun	Q2	1H	Jul	Aug	Sep	Q3	Oct	Nov	Dec	Q4	2H	2015
Price	2.77	2.92	-0.12	5.65	2.09	-1.11	-3.29	-2.36	3.29	-2.06	-3.57	-3.71	-9.07	6.91	-1.58	-1.18	3.97	-5.10	-1.81
NAV	1.16	1.65	0.29	3.13	1.64	-0.26	-1.79	-0.45	2.69	-1.21	-3.32	-3.72	-8.03	3.35	-1.31	-3.14	-1.20	-9.24	-6.55
Difference	-1.61	-1.27	0.41	-2.51	-0.46	0.84	1.50	1.91	-0.60	0.86	0.26	-0.01	1.03	-3.56	0.27	-1.95	-5.18	-4.14	-4.74

Performance Chart

Discount

Characteristics

PORTFOLIO Weighted Average Data
Discount -13.36%	1Yr Disc -11.78%	3Yr Disc -9.34%	5Yr Disc -9.50%	Rel Disc Range (3yr) 31.23%
Mkt Yield 8.66%	Lev Adj NAV Yield 6.15%	After Tax Yield* 7.40%	Est Tax Friction* 1.26%	3Yr NAV Volatiliy 12.22
1 Yr RoC 31.51%	3 Yr Dest RoC 18.90%	Leverage 22.00%	Non Lev Exp Ratio 2.00%	Beta (2yr) 0.63
Equity Exposure 58.53%	Bond Exposure 38.74%	# Holdings 46	Cash Weighted Duration 0.83
Comp NAV TR 1.33%	Comp Discount -6.92%	Net Assets (M) 524	Liquidity - 90d (K) 1,892
* Based on marginal tax rates of 25% and long-term capital gains rates of 15%.

Asset Allocation

Asset Allocation as reported by each fund's sponsor as of the last reporting period.

Constituents

46 Funds

Ticker	Name	Sponsor	Allocation	Discount	Market Yield	RoC(1yr)	Leverage	Net Assets	Liquidity (90d)
HGLB	Highland Glbl Alloc Fd	Highland Capital	2.12	-25.19	14.62	23.63	38.94	271	830
ASA	ASA Gd & Prcs Mtl	Merk Investments	2.54	-18.04	0.16	0.00	0.00	294	1,283
NHF	NexPoint Stgc Opp Fd	Highland Capital	2.38	-19.24	14.05	55.08	22.10	973	3,973
IIF	MS India Inv Fd	Morgan Stanley	2.54	-14.78	0.00	0.00	0.00	312	741
SOR	Source Capital	First Pacific	2.52	-12.92	2.65	0.00	0.00	370	818
WIW	WA Inf-Lnk Opp & Incm Fd	Legg Mason	2.47	-12.94	3.87	0.00	30.70	785	1,172
KMF	KA Midstream/Nrg Fd	Kayne Anderson	2.21	-13.53	9.33	94.81	33.33	527	2,170
FRA	BR Flt Rt Incm Stgc Fd	BlackRock	2.56	-9.58	7.21	0.00	28.28	523	2,045
MXF	Mexico Fund	Impulsora del	2.47	-13.23	7.70	60.04	0.00	225	295
BGT	BR Flt Rt Incm Fd	BlackRock	2.56	-9.33	7.20	0.00	27.79	323	1,011
SZC	Cushing Renaissace Fd	Cushing	2.39	-12.41	12.91	52.78	1.40	151	785
IGD	Voya Glbl Eq Div & Prm Opp	Voya	2.50	-11.63	7.89	58.36	0.00	668	3,669
IDE	Voya Infra Ind & Matrls Fd	Voya	2.42	-13.63	8.22	19.90	0.00	249	926
EFT	EV Flt-Rt Incm Tr	Eaton Vance	2.49	-10.40	7.55	0.00	35.50	594	1,691
AWP	Abd Glbl Prmr Prop Fd	Aberdeen	2.58	-9.33	7.37	62.14	8.31	613	2,180
JRO	Nuv Flt Rt Incm Opp Fd	Nuveen	2.51	-9.83	7.54	0.00	37.84	433	1,674
EMF	Tmp Emrg Mkt Fd	Templeton	2.57	-10.75	7.63	0.00	3.57	288	455
IRR	Voya NtrRes Eq Incm Fd	Voya	2.39	-14.51	8.17	86.23	0.00	100	746
TTP	Tortoise Pip & Nrg Fd	Tortoise	2.16	-10.83	9.97	100.00	30.86	129	692
MFD	M/FT Glbl Infra/Util Div & Incm	First Trust	2.53	-8.90	9.97	36.76	28.11	94	407
NDP	Tortoise Nrg Ind Fd	Tortoise	2.23	-12.47	10.96	20.35	29.59	62	464
JSD	Nuv Srt Dur Cr Opp Fd	Nuveen	2.44	-10.09	7.47	0.00	39.37	165	584
JQC	Nuv Cr Stgs Incm Fd	Nuveen	2.55	-7.87	16.58	52.43	37.78	1,103	4,635
CEM	CB MLP & Midstream Fd	Legg Mason	2.20	-10.81	11.82	100.00	34.25	788	3,461
IGA	Voya Glbl Adv & Prm Opp Fd	Voya	2.51	-8.96	7.53	48.45	0.00	210	723
HQH	Tekla Health Invstr	Tekla	2.76	-10.97	7.89	73.10	0.00	988	3,557
TEI	Tmp Emrg Mkt Incm Fd	Franklin	2.43	-8.70	9.57	2.23	0.00	469	1,172
KYN	KA MLP/Midstream Inv Co	Kayne Anderson	2.14	-9.19	11.57	40.82	36.63	1,732	8,936
TEAF	Tortoise Ess Ast Incm Trm Fd	Tortoise	2.30	-10.74	8.38	0.00	12.20	235	1,425
GLQ	Clough Glbl Eq Fd	Clough	2.58	-8.86	10.54	0.00	34.27	173	689
MAV	Pioneer Muni Hi Incm Adv Tr	Pioneer	2.42	-10.10	4.18	0.00	35.80	286	669
JMLP	Nuv All Cap Nrg MLP Opp Fd	Nuveen	2.12	-7.02	15.72	100.00	28.85	69	416
HQL	Tekla Life Sci Invstr	Tekla	2.80	-10.35	7.62	56.59	0.00	440	1,592
BHK	BR Core Bnd Tr	BlackRock	2.48	-5.89	5.58	7.92	24.49	833	2,071
FEI	FT MLP & Nrg Incm Fd	First Trust	2.38	-3.55	11.04	93.69	27.03	530	2,395
SVVC	Firsthand Tech Val Fd	Firsthand Capital	0.93	-73.35	0.00	0.00	0.00	152	77
PTMN	Portman Ridge Fin Corpn	Sierra Crest Inv Mgmt	1.18	-42.25	11.71	0.00	41.78	133	162
PNNT	PennantPark Inv Corp	PennantPark	1.30	-28.11	11.54	0.00	53.18	582	1,763
BKCC	BR Cap Inv Corp	BlackRock	1.32	-21.57	11.00	4.75	37.18	447	1,834
HCAP	Harvest Cap Cr Corp	Harvest Capital	1.17	-19.88	10.40	1.44	47.71	68	138
FSK	FS KKR Capital Corp	FS/KKR	1.41	-20.10	12.10	0.00	45.30	4,001	13,007
MCC	Medley Capital Corp	MCC Advisors	1.08	-51.21	9.01	32.05	49.79	248	377
PSEC	Prospect Capital Corp	Prospect Capital	1.26	-26.61	11.06	0.00	39.90	3,259	9,312
CGBD	TCG BDC	Carlyle	1.21	-18.76	10.99	0.00	54.03	978	4,147
MRCC	Monroe Capital Corp	Monroe Capital	1.36	-6.48	12.13	0.00	63.60	252	1,383
LGI	Lzrd Glbl Tot Rtn & Incm Fd	Lazard	2.56	-8.53	6.62	18.97	29.03	229	388

DISCLOSURES:

These indexes were created and developed by Closed-End Fund Advisors, Inc. CEF Advisors launched these indexes in January 2017 based on December 31, 2016 data and began pricing on January 1, 2019. CEF Advisors does not guarantee the accuracy or the completeness of the index or any data included therein and CEF Advisors shall have no liability for any errors, omissions or interruptions therein. CEF Advisors makes no warranty, express or implied, as to results to be obtained by any person or entity from the use of the index or any data included therein. CEF Advisors makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the index or any data included therein. Without limiting any of the foregoing, in no event shall CEF Advisors have any liability for any special, punitive, direct, indirect or consequential damages (including lost profits) arising out of matters relating to the use of the index, even if notified of the possibility of such damages.

The historical values above have not been verified by an independent third party. The historical performance data is for illustrative purposes only and does not represent the actual performance of any investment product. No representation is being made that any investment will achieve performance similar to that shown. The index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the historical performance shown. The index is unmanaged and an investor cannot invest directly in the index.

Performance information for the index is for illustrative purposes only and does not represent the performance of any actual investment. The historical performance of the price and NAV of the index should not be taken as an indication of future performance, and no assurance can be given as to the index's value on any date. The data for the historical performance of the index was calculated on materially the same basis on which the performance of the index is now calculated. Discounts are the result of a closed-end fund’s market price deviating from its Net Asset Value (NAV).

In case any constituents of the index experience a liquidation, merger, open-ending or are no longer a closed-end fund, we will remove them as of their last day of existence. For mergers, if the merged fund is in the same sub-grouping inside CEFdata.com, then we will replace the merged fund with it's replacement in equal dollar terms. If a fund is liquidated, open-ended, etc, we will remove the fund and its allocation from the index. In this case, for example. If a fund was 2% of the index then future pricing would assume a full allocation was 98%. The 2% is adsorbed on a pro-rata basis by all surviving funds.

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