December 27, 2017
We typically do not spend much time looking at making significant changes in the Core Portfolio between Christmas and New Year’s. All the big players are traveling to exotic vacation spots (aren’t you?…the temperature here is MINUS 3 degrees) and we would anticipate no big moves in the bond or stock markets.
But, you do want to take advantage of opportunities if they become apparent.
We have been watching IHIT Invesco High Income Target Term Fund collapse over the last month. We have been trying to find out the reason for the downtrend, but there seems to be no specific reason, other than CEF’s in general have been declining.
Our motto is “buy when positions are on sale” and IHIT fits this definition. It has dropped from a high of $10.23 on Nov. 15 to $9.53 on Dec. 21….a big hit for this fund. The current yield is 6.8%. Keep in mind the majority of holdings are investment grade.
The price appears to have hit bottom, and is now turning up. We feel a small position, to start, is a good move. Buy IHIT.
BUSINESS: Invesco High Income 2023 Target Term Fund is an exchange-traded closed-end fund or a closed-end ETF that is officially described as a non-diversified, closed-end management investment company. INVESTMENT OBJECTIVE: The Invesco High Income 2023 Target Term Fund seeks to provide a high level of current income and to return $9.835 per share (the original net asset value (NAV) per common share before deducting offering costs of $0.02 per share) to holders of common shares on or about December 1, 2023 (the Termination Date). FUND STRATEGY: The Fund will attempt to strike a balance between the two objectives, seeking to provide as high a level of current income as is consistent with the Fund’s overall credit strategy, the declining average maturity of its portfolio strategy and its objective of returning the original NAV on or about the Termination Date. The Fund seeks to achieve its investment objectives by primarily investing in securities collateralized by loans secured by real properties. Under normal market conditions, the Fund expects to invest at least 80% of its Managed Assets in real estate debt securities, including commercial mortgage-backed securities (CMBS). The Fund will invest no more than 30% of its Managed Assets in securities rated below investment grade at the time of investment (below investment grade securities, commonly referred to as junk bonds). FUND MANAGEMENT: Invesco Advisers, Inc. serves as the investment advisor to the Fund.
MOVIES THE GREATEST SHOWMAN. Recommended IF you like musicals….which would exclude the hetero male population and probably most of the female including the teens…..which explains why the ticket sales are so LOW. Hugh Jackman who we saw on Broadway is a huge star and is fantastic in this flick. This movie reminds you of LaLa Land so if you liked that, you will love The Greatest Showman.