usiness development companies and closed end …the of bdcs (business development companies)and...
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THE OF BDCS(BUSINESS DEVELOPMENT COMPANIES)
AND CLOSED‐END FUNDS
John Cole Scott, CFSChief Investment Officer
Closed‐End Fund Advisors, Inc
Closed‐End Fund Advisors is a Registered Investment Advisory Firm Specializing in Closed‐End Fund & BDC Research, Trading and Management Founded in 1989
May 17, 2017
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Important: The information should not be considered an offer, or solicitation, to deal in any of thementioned funds or sectors. The information is provided on a general basis for information purposes only,and is not to be relied on as advice, as it does not take into account the investment objectives, financialsituation or particular needs of any specific investor.
Any research or analysis used to derive, or in relation to, the information herein has been procured byClosed‐End Fund Advisors (“CEFA”) for its own use, and may have been acted on for its own purpose. Theinformation herein, including any opinions or forecasts has been obtained from or is based on sourcesbelieved by CEFA to be reliable, but CEFA does not warrant the accuracy, adequacy or completeness of thesame, and expressly disclaims liability for any errors or omissions. As such, any person acting upon or inreliance of these materials does so entirely at his or her own risk. Any projections or other forward‐lookingstatements regarding future events or performance of countries, sectors, markets or companies are notnecessarily indicative of, and may differ from, actual events or results. No warranty whatsoever is givenand no liability whatsoever is accepted by CEFA or its affiliates, for any loss, arising directly or indirectly, asa result of any action or omission made in reliance of any information, opinion or projection made in thispresentation.
The information herein shall not be disclosed, used or disseminated, in whole or part, and shall not bereproduced, copied or made available to others without CEFA expressed written permission. CEFA reservesthe right to make changes and corrections to the information, including any opinions or forecastsexpressed herein at any time, without notice. Data comes from our CEFData.com (formerly CEF Universe)service dated May 12, 2017 unless otherwise noted.
2www.CEFadvisors.com
Disclosures
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What Is CEF Advisors?
• Investment Management, Research, Data & Indexes• Independent, Fee Only & Family Owned • “Scott Letter: Closed‐End Fund Report”• Discretionary Portfolio Management (SMA),
Unit Investment Trust (UIT) Portfolio Consultant • 20+ Model Portfolios Tracking Service• CEF & BDC News/SEC Alert & “CEFA’s Closed‐End Fund Universe”• Consulting with Institutional Investors and Fund Sponsors • CEFData.com: CEF/BDC Web Modules with Daily Data
We seek to be the crossroads of BDC/CEF data, trends and news. We maintain strong relationships with Managers, Peers, Analysts and Fund Sponsors.
www.CEFadvisors.comFounded in 1989
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What is a Closed‐End Fund (CEF) / Business Development Company (BDC) ?
www.CEFadvisors.com 4
o 1940 Act Investment Company with Fixed‐Capital, Active Management, and Daily Liquidity
o CEFs have traded on The NYSE since 1893o Tax‐advantaged and earnings are passed through to
investors in the form of distributionso CEFs can have debt leverage up to 33% net assets &
preferred equity leverage up to 50% net assets. o BDCs Limited to 200% asset coverage (total assets /
total debt) or “one turn” of leverage, excluding SBIC. o Higher fee structure w/ carry o The closed‐end structure is not an asset class but an
investment vehicleo BDCs were created by Congress in 1980 to provide an opportunity for individual non‐
accredited investors to participate in private investmentso BDCs are closed‐end funds that provide small, growing companies access to capitalo BDCs are Domestically focused and required to offer portfolio companies ‘managerial
assistance’.
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www.CEFadvisors.com 5
BDCs Provide Access to Private Debt Investments
Retail and Institutional
Investors
Investment Dollars
Dividends to Investors
Debt Investments
(Primarily)
Interest and Dividends
BDCs
Small and Middle-Market Businesses
Shareholders taxed on dividends
No tax paid at this entity
$ $
$ $
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Broad Investable UniverseAssets of Closed-End Funds/BDCs* by type , as of March 31, 2017
# of Funds
Total Net Assets
Premium / Discount
Market Yield Beta Duration Leverage Non LevExpense Ratio
Average Net Assets
Equity Funds 216 $111,964 -9.48% 6.9% 0.42 14.2% 1.33 $518
Taxable Bond 147 $64,883 -3.91% 7.6% 0.30 3.6 25.9% 1.43 $444
Municipal Bond 171 $64,573 -3.79% 5.0% -0.08 9.2 33.1% 1.02 $378
BDCs 51 $29,889 -5.58% 8.1% 0.72 37.8% 5.53 $594
Total CEFs 585 $271,309 -5.13% 7.0% 0.46 6.8 23.5% 1.70 $453
National Muni Bond 90 $46,397 -3.20% 5.2% -0.08 9.0 31.9% 0.93 $516
Debt Focused BDC 43 $29,089 -0.34% 9.2% 0.76 41.3% 5.81 $673
Covered Call 29 $19,712 -5.50% 8.5% 0.83 2.8% 1.14 $680
US Stock 28 $18,924 -9.48% 6.9% 0.96 13.1% 1.62 $676
MLP Funds 27 $15,134 -4.21% 8.7% 1.91 26.7% 1.89 $561
High Yield Bond 34 $12,637 -5.64% 7.8% 0.37 3.7 23.2% 1.26 $372
World Stock 58 $13,433 -9.66% 4.5% 0.96 6.1% 1.59 $232
Senior Loan 26 $11,650 -3.70% 6.4% 0.15 1.0 31.5% 1.65 $448
Preferred Equity 16 $10,563 -0.92% 7.6% 0.19 6.0 32.2% 1.24 $660
REIT Funds 11 $5,897 -10.12% 8.3% 0.65 22.3% 1.39 $536
Convertible Bond 11 $4,322 -5.88% 9.1% 0.84 3.0 28.6% 1.45 $393
Investment Grade Bond 13 $3,898 -3.21% 6.2% 0.18 5.3 19.5% 0.90 $300
$271.3 Billion x 5.1% = ~$14 Billionin total CEF assets average discount exploitable undervaluation
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• CEFs and BDCs are often known for their ‘infamous’ discounts. The discount is the feature built into the “closed‐ended structure’ that makes them unique & potentially lucrative.
• We believe that many CEFs historically trade at discounts because they can, and you have to price this into the value of the fund. BDCs often trade above NAV in normal markets because they are a unique way to own access to the sector.
Discounts / Premiums
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Trad CEF ‐ Total ReturnMarch 31, 2007 ‐March 31, 2017
NAV TR Price TR
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Trad CEF ‐ Average Discount / PremiumMarch 31, 2007 ‐March 31, 2016
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BDC Debt ‐ Total ReturnMarch 31, 2007 ‐March 31, 2017`
NAV TR Price TR
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BDC Debt ‐ Average Discount / PremiumMarch 31, 2007 ‐March 31, 2016
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Municipal Bonds ‐ Total ReturnMarch 31, 2007 ‐March 31, 2017
NAV TR Price TR
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Municipal Bonds ‐ Average Discount / PremiumMarch 31, 2007 ‐March 31, 2016
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MLP ‐ Total ReturnMarch 31, 2007 ‐March 31, 2017
NAV TR Price TR
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MLP ‐ Average Discount / PremiumMarch 31, 2007 ‐March 31, 2016
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Impact of Fund LeverageMunicipal (Tax‐Free) Bond Funds
Credit Quality ranges from A to AAA.
4.90% 4.90%6.00% 5.80%
3.90% 3.00% 3.60% 3.40%
0.0%
5.0%
10.0%NAV Yield
BKN BBK BBF MEN NUV NIM NXP NXR
Leveraged Unleveraged
Source: CEFA’s Closed‐End Fund Universe, March 31 , 2017
Past performance is not indicative of future results. This presentation is not intended as an offer to sell any of the funds shown. Rather, funds shown are for illustrative purposes only.
*Currently leverage is giving muni CEFs an average of 2.0% higher distribution yield
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8.97%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%NAV and Market Price Yield for LCM
Yield on NAV Yield on Market Price
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Discount Yield Benefit
Advantage of Paying “90 cents for $1.00 of Assets”Example: AC Enh Gwth & Incm Fd (NYSE: LCM)
Market Price: $8.44NAV: $9.36Discount: ‐9.83%
As of March 31, 2017
9.95% Discount Yield Benefit = 0.98%
Source: CEFA’s Closed‐End Fund Universe
Past performance is not indicative of future results. This presentation is not intended as an offer to sell any of the funds shown. Rather, funds shown are for illustrative purposes only.
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21www.CEFadvisors.com
CEF/BDC Yield Comparison
Data as of 3/31/2017.MLP Index: Alerian MLP Index; REIT Index: Wilshire US REIT Index; Corporate Debt Index: S&P 500 Bond IndexUS High Yield Indices : BofA Merrill Lynch US High Yield (BB Rated, B Rated, CCC and Lower Rated )
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Closed‐End Funds& BDCs: By Yield
13.1%
33.3%
23.0%
21.0%
8.6%1.0% Yield Under 4%
Yield 4%-6%
Yield 6%-8%
Yield 8% -10%
Yield 10% -12%
Yield Over 12%
Note: 582 CEFs; data as of 3/31/2017 , cefdata.com
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Tax Equivalent Yield ComparisonMarried Couple with W‐2 Income of $1MM+
Sources: CEFA’s Universe Data as of 3/31/2017 and tax rates from IRS and NY State.
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1. Discount Direction: CEFs/BDCs trade at prices in relation totheir net asset value (NAV). NAVs are the ‘anchor point’ formarket pricing. We seek generally funds where discountscan recover or are sustainable vs. potential to widendramatically. Small premiums can be healthy for a BDC.
www.CEFadvisors.com
2. Dividend Sustainability: Research the reoccurring earnings/income produced by a bondCEF/BDC as well as trends in the sector and past policies of the Sponsor/ Board. NAV TRlong‐term should exceed the NAV Yield to make policy sustainable. Dividends arepolicies from the BoD are not promises like coupon payments on bonds or loans.
3. NAV Total Return: Manager performance after costs is important as poor results oftenimpact the price investors use as the ‘anchor point’ for Funds. This also helps confirmthat management can produce investment returns after their cost. Example: BDC loancreation is not typically a cheap and easy task, but shareholders need to know thatmanagement costs are in check with their results. Avg BDC NonLev Expense Ratio: 5.2%*
CEFA’s ‘Trifecta’ AnalysisSuggested CEF/BDC Research Process
CEFA feels that getting any of these items wrong can negate good investment research
*Data as of 6/24/16 CEFdata.com
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Buy at a Discount
Actively Monitor Funds
Track Relative Value / Swap Funds
Anticipate Dividend Changes
When to Raise Cash?
Sell at Premium or Set Stops
CEF Manager Analysis & Results
Adjust Portfolio Allocations
CEFA’s Investment Philosophy
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1. First Lien Loans: 55%2. Second Lien Loans: 18%3. Unsecured Loans: 11%4. Equity/Other: 16%
www.CEFadvisors.com
Types of Loans Held By BDCs
Avg Portfolio Turnover: 33.5% Avg Variable Loans: 69% / Fixed: 31% Libor Floors: 41% at 1% Avg Level Avg Loan Size: $9.7M 73% of Loans Under $25MM Average Maturity 4.1 with a range of 2 Years to 6 years Avg No of Loans: 127 from 99 Companies
Source: CEFData.com 3/31/2017
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Source: CEFA’s CEF Universe 03/30/2017
Market Price volatility vs. NAV volatility (1 Year)
0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0
U.S. Equity Funds
Non U.S. Equity Funds
Specialty Equity Funds
Taxable Bond Funds
National Muni Bond
Single State Muni Bond
Debt Focused BDC
Equity Focused BDC
Price Volatility NAV Volatility
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0
20
40
60
80
100
120
140
U.S. EquityFunds
Non U.S.Equity Funds
SpecialtyEquity Funds
Taxable BondFunds
National MuniBond Funds
Single StateMuni Bond
Funds
Debt FocusedBDC
EquityFocused BDC
Major CEF Groups: Number of dividend decreases / increasesLast Quarter & Previous 1 Year Rolling
Last Q Decreases
Previous 1 Yr Rolling Decreases
Last Q Increases
Previous 1 Yr Rolling Increases
1Q 2017 Closed‐End FundDividend Increases vs. Decreases
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Source: Fund Press Releases
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Traditional Closed‐End Fund90 Day NAV – Market Price Correlation
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Source: March 31, 2017 ‐ CEFA’s Closed‐End Fund Universe Report
Q2‐12
Q3‐12
Q4‐12
Q1‐13
Q2‐13
Q3‐13
Q4‐13
Q1‐14
Q2‐14
Q3‐14
Q4‐14
Q1‐15
Q2‐15
Q3‐15
Q4‐15
Q1‐16
Q2‐16
Q3‐16
Q4‐16
‐20
0
20
40
60
80
100
120
Trad CEFs Groups ‐ 90 Day NAV/Price CorrelationJune 22, 2012 ‐March 31, 2017
All Trad CEFs All Equity All Bond US Equity Non US Equity
Special Equity Taxable Bond Nat Muni Bond State Muni Bond
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Premiums: A ‘Worst Case’ Scenario
30www.CEFadvisors.com
AGD AOD
6/18/10 – Monthly Dividend $0.11 $0.12
6/18/10 – Premium +38.5% +31.5%
6/19/10 – Monthly Dividend $0.06 (‐45%) $0.055 (‐54%)
6/25/10 ‐ Premium +2.96% ‐ 4.25%
Relative Pricing Change ‐35.5% ‐35.8%
Source: Telemet
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Traditional Closed‐End Fund Historical IPOs (1Q 17)
www.CEFadvisors.com 31
Source: SEC Filings, Press Releases
YTD 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Number of IPOs 3 8 8 9 25 23 19 17 13 2 40
Average Assets
In $ millions$199 $225 $291 $469 $580 $517 $316 $451 $200 $131 $690
Total New CEF IPO
Assets in $ Billions
$0.6B $1.8B $2.3B $4.2B $14.5 $11.9 $6.0 $7.7 $2.6 $0.3 $27.6
10 Year Average: 16 Funds per year, $387MM Ave Fund, $7.8 Billion Per Year
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BDC Historical IPOs (1Q 17)
www.CEFadvisors.com 32
Source: SEC Filings, Press Releases
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Number of IPOs 1 6 4 5 7 5 1 1 5 1
Average Assets
In $ millions$120 $575 $78 $96 $101 $98 $87 $141 $138 $203
Total New CEFIPO Assets in $
Billions$0.1 $3.5 $0.3 $0.5 $0.7 $0.5 $0.1 $0.1 $0.7 $0.2
10 Year Average: 3.6 Funds per year, $164M Ave Fund, $0.7 Billion Per Year
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CEF IPOs: By Investment FocusApril 1, 2016 – March 31, 2017
$1,160
$426
$325
$210
$163
$32
High Yield Bond Funds
Mortgage Bond Funds
Senior Loans
Global Income Funds
Prefered Equity Leveraged
Global Equity
Note: Inception Assets in millions ; data as of 3/31/2017 , cefdata.com
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Closed‐End Fund Mergers(Traditional)
www.CEFadvisors.com 34
Source: Fund Press ReleasesReasons to Merge: 1. Reduce expense ratio 2. Increase liquidity 3. Reduce bid/ask spread 4. Improve cost of future leverage
Avg. – 18 per year36 Last 5 Yrs, 10 previous 7 Yrs
0
10
20
30
40
50
60
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Num
ber o
f Closed ‐E
nd Fun
dsClosed‐End Funds Merged into Other Closed‐End Funds (March 2017)
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0
2
4
6
8
10
12
14
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
CEF Funds Open‐Ended, Liquidated or Converted to ETF
Converted to ETF
Liquidated
Open‐ended
Closed‐End Fund Deaths(Traditional)
www.CEFadvisors.com 35
Source: Fund Press Releases
Causes: Open‐ending, liquidation & conversion. (8.8 per year on average)
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Common CEF Mistakes (and non CEF‐only mistakes)
36www.CEFadvisors.com
1. Buying a CEF on the IPO2. Only buying a CEF at a discount3. Only buying a CEF because of yield4. Buying a selection of CEFs and holding
them “forever” (not swapping funds over time)5. “I have lost so much, I just want to get back to even”6. “I have made so much, I am happy with whatever happens” (I don’t care if
I lose 10‐15% b/c I am up 70%)7. Dividend Policies are the policies of the BoD not promises like bonds8. Unknowingly buying a CEF at a high premium or high relative premium9. Buy high correlating funds & think you are diversified b/c different sectors10. Not balancing Beta, Duration and other risk factors 11. Not allocating funds properly (IRA vs. Trust) or taking your tax status into
account when making investment decisions
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1. Poor Management, Credit Risk2. Discount & Dividend Risk3. Poor Fee / Shareholder Alignment4. Quarterly NAV (BDC), subjective fair
value estimates could take sudden and quick losses
5. Liquidity, Bid/Ask Spread Risk6. Market Prices can be volatile, especially during earnings season,
dividend changes, corporate actions or on ‘headline risk’ and ‘risk off’ trading.
7. Libor floors, variable leverage, spread widening, 8. Irrational trading behavior of retail shareholders
www.CEFadvisors.com
Risks of CEF/BDC Investing
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How Have CEFs/BDCs Faired in a Rising Rate Environment?
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Activist & Follower Ownership (13D/13G) by Investment Focus
$6,369
$3,929$3,912
$2,950
$1,829
$1,397$430 Taxable Bond
Non U.S. EquitySpecialty EquityBDCMunicipal BondU.S. EquityHybrid / Balanced
Note: millions of dollars, data as of 4/19/2017, cefdata.com
BDC Debt $2,784Asian Equity $2,084High Yield Bond $1,425Covered Call $1,415MLP Funds $1,303
Top 5 Peer Groups
CEF Activist Ownership $20,816
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www.CEFadvisors.com 40
Activist Ownership vs Fund Discounts
‐25
‐20
‐15
‐10
‐5
0
5
10
15
5 15 25 35 45 55 65 75
Shares owned by Activists (%)
Prem
ium / Discoun
t (%)
Note: Data as of 4/18/2017 , cefdata.com
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www.CEFadvisors.com 41
CEF Institutional Holdings(Traditional CEFs 1Q 17)
Source: CEFA’s Closed‐End Fund Universe (www.cefuniverse.com)
InstitutionalHoldings Trends
Increase: 333 fundsDecrease: 68 funds
Q1‐13 Q2‐13 Q3‐13 Q4‐13 Q1‐14 Q2‐14 Q3‐14 Q4‐14 Q1‐15 Q2‐15 Q3‐15 Q4‐15 Q1‐16 Q2‐16 Q3‐16 Q4‐16
0.0 %
5.0 %
10.0 %
15.0 %
20.0 %
25.0 %
ALL Trad CEFs ‐ % Shares Owned by InstitutionsJanuary 18, 2013 ‐March 31, 2017
All Trad CEFs
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www.CEFdata.com/index
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Possible Trump Impact to BDCs and CEFs(Sectors / DOL / Trends and Products)
www.CEFadvisors.com 44
Source: CEFA’s Closed‐End Fund Universe Report
CEF / BDC ‐ Sectors• Municipal Bond CEFs / QDI• MLP / Infrastructure• “Typical” Equity Funds• Duration Bonds/Preferred• Sr. Loans / BDCs
Products of BDCs/CEFs• Index Inclusion ?• Acquired Fund Fees• Banks competing with BDCs?• ETFs, CEFs, OEFs, A‐ETFs
Market Trends• Taxes• Regulations• Market Risk• Interest Rates• Cost & Type of Leverage
DOL• CEF / BDC IPOs & Secondary’s • CEF Products – UITs in IRAs?• Pushed back – How far? Ever?• Fiduciary vs. Suitability• Kill or fix BDC/CEFs IPOs ?
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CEFA’s Outlook for 2017
45www.CEFadvisors.com
• US Equity Funds• Non‐US Equity Funds• Specialty Equity (Sector) Funds
• Taxable Bond Funds
• National Municipal Bond (Tax‐Free) Funds• State Specific Municipal Bond (Tax‐Free) Funds
• Debt‐Focused Business Development Companies (BDCs)• Equity‐Focused Business Development Companies (BDCs)
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• Total Return (Yield Driven)• Diversification• Professional Management• Leverage Used by Fund• Free Leverage of The Discount• Control: Limit & Stop Orders• Fixed Capitalization: No Redemption Pressures• Capitalize on Market Inefficiencies• Low Active Institutional Ownership / Mostly Retail
46
In Summary: Why We Like Closed‐End Funds
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• Professional Tactical Separate Account Management: $1MM Household Minimum, 1% Fee by CEFA
• CEFA Investment Menu: www.cefdata.com/portfoliocomp
• Model Access: View access to current portfolio with email notice for changes with rationale. $1,050 per quarter (1 Model)
• SmartTrust UIT “CEFA Select BDC Trust Series 9”: $1000 minimum purchase, 0.50% creation & development fee for non‐commission cusip
www.CEFadvisors.com 47
CEF Advisors’ Services and Portfolio Options
• Daily CEF/BDC News & SEC Filings Alerts: $156 per year (10 Day Trial)
• Weekly CEF/BDC Universe Data: $387.50 per quarter (14 Day Trial)
• CEFData.com: Daily Access to Modules for Fund Screening and Portfolio, Model and Watch List Monitoring: $1K ‐ $4K per quarter depending on subscriber classification
• One‐Time & Ongoing Consulting: Cost varies with $1000 minimum
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Disclosure: See full portfolio disclosures at the end of this presentation
CEFA Portfolio Composites Summary Performance
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CEFA’s CEF/BDC Fund Profiles: www.cefdata.comBDC List and Summary Data: www.BDCuniverse.netCEFAnalyzer LLC: http://CEFanalyzer.comThe Closed‐End Fund Association:www.Closed‐EndFunds.comCEF Connect (Nuveen Sponsored): www.CEFconnect.comMorningtar's CEF Site:http://www.morningstar.com/Cover/CEF‐Closed‐End‐Funds.aspxInvestment Company Institute: http://www.ici.org/research#fact_booksCEFNetwork (Pristine Advisers): www.CEFnetwork.comCEF Insight (Activist Info from AST Fund Solutions): www.CEFinsight.comCapital Link's CEF Portal: http://cef.capitallink.com/Morningstar Discussion Board:http://socialize.morningstar.com/NewSocialize/forums/100000006.aspxYahoo CEF Discussion Board: https://groups.yahoo.com/neo/groups/closedendfunds2/infoThe CEF Network on LinkedIN: www.CEF‐Network.comSeeking Alpha: http://seekingalpha.com/articles?filters=closed‐end‐funds
More Useful Links at: www.cefadvisors.com/investRes.html
For Your InformationFree CEF/BDC Resources
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John Cole Scott, CFSEXPERIENCECIO of Registered Investment Advisor Focused Exclusively on CEFs and BDCs since 2001
EDUCATIONCollege of William & MaryBachelor of Science in Psychology 2000
John Cole Scott, CFSChief Investment Officer of Closed‐End Fund Advisors
Mr. Scott has worked at Closed‐End Fund Advisors since 2001. He sits onthe firm’s investment committee and holds the FINRA 66 License and theCertified Fund Specialist designation (CFS). He is a graduate of The Collegeof William and Mary and has been quoted and interviewed widely in thefinancial press and presented at conferences and for investment groups onmore than 40 occasions.
In 2008 John founded CEFA's Closed‐End Fund Universe, a comprehensiveweekly data service covering 200+ data points for all US listed closed‐endfunds and 200+ for BDCs. He also founded and manages The CEF Networkgroup on LinkedIn and is editor of the firm’s blog. John is a past boardmember of The Richmond Association for Business Economics (RABE), andserves on the Investment Committee for The New York State Society of TheCincinnati.
www.CEFadvisors.com
Speaker’s Biography
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www.CEFadvisors.com 56
Additional DisclosuresCEFData.com makes data for the universe of closed‐end funds (CEFs) and business development companies (BDCs) available to its users. This material is notintended to be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be consideredspecific legal, investment or tax advice. This site does not list all the risks associated with each fund. Investors should contact a fund’s sponsor for fund‐specificrisk information and/or contact a financial advisor before investing.
Distribution type sourced from CEFdata.com. For specific information about a fund's distribution sources, visit the fund sponsor's website. The followinginformation applies to closed‐end funds and business development companies in general: Fund shares are not guaranteed or endorsed by any bank or otherinsured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation (FDIC). Shares of closed‐end funds (CEFs) and businessdevelopment companies (BDCs) are subject to investment risks, including the possible loss of principal invested. There can be no assurance that fund objectiveswill be achieved. Closed‐end funds and business development companies frequently trade at a discount to their net asset value. NAV returns are net of fundexpenses, and assume reinvestment of distributions.
This material is presented for informational purposes only. Under no circumstances is it to be considered an offer to sell, or a solicitation to buy any investmentreferred to on this page. While the information contained herein is from sources believed reliable, we do not represent that it is accurate or complete and itshould not be relied upon as such. Past performance is not necessarily indicative of future results. All investments involve risk including the loss of principal.Returns are presented gross of investment management fees and other appropriate fees (i.e. commissions, custodial fees, etc.).
© Closed‐End Fund Advisors Inc.(CEFadvisors) and CEFdata.com 2016. All rights reserved. Any copying, republication or redistribution of CEFadvisors,CEFdata.com, content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of CEFAdvisors. CEFAdvisors shallnot be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
SmartTrust “CEFA Select BDC Trust” Series 9 UIT https://www.smarttrustuit.com/trust/smbdgx/Investors should consider the trust’s investment objective, risks, charges and expenses carefully before investing. The prospectus contains this and other information relevant to an investment in the trust. Please read the prospectus carefully before you invest. If a prospectus did not accompany this literature, please contact SmartTrust at (888) 505‐2872 to obtain a free prospectus.
Hennion & Walsh is a member of FINRA/SIPC. 2001 Route 46, Waterview Plaza, Parsippany, NJ 07054 (888) 505‐2872 www.smarttrustuit.com NOT FDIC INSURED • NOT BANK GUARANTEED • MAY LOSE VALUE
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Closed‐End Fund Advisors, Inc
7204 Glen Forest Drive, Suite #105Richmond, Virginia 23226 U.S.A(800) 356‐3508 / (804) 288‐2482
www.CEFadvisors.com
Thank You For Attending
Questions?