Nuveen is merging eight closed-end funds down to two and this will greatly benefit shareholders of the Dividend Advantage Muni Fund 2 (NXZ), said James Robinson, portfolio manager for the Robinson Tax Advantaged Income Fund (ROBAX). The NXZ has returned 2.6% in 2015 as of the end of October, according to Morningstar. The discount on the NXZ is 12.7% compared to a three year average discount of 10%. The Robinson Tax Advantaged Income Fund is up 1.4% year-to-date, according to fund-tracker Morningstar. ‘We believe that this merger, once it is concluded, will effectively reduce that discount to a more normalized level for the space, closer to 6%,’ said Robinson. Robinson is also bullish on the Eaton Vance Municipal Income Trust (EVN), which has returned 2.6% as of the end of October.
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