Weekly Commentary | May 25, 2025 | DMF Liquidation, CEFs As A Category- A Perspective

Summary

• CEFs often over-distribute due to industry incentives, leading to long-term NAV declines and negative performance.

• High yields attract investors and tighten discounts, but also draw activist investors seeking to unlock value through corporate actions.

• Fund managers are reluctant to cut distributions, often delaying reductions even when under-earnin…