akinbostanci Written by Nick Ackerman, co-produced by Stanford Chemist. The timing of my last update on NXG NextGen Infrastructure Income Fund ( NYSE: NXG ) turned out to be incredibly poor. The 'Buy' rating ultimately turned out to be a good call, but there ended up being a much better buying opportunity only about a month later.
The broader market entered into correction territory, but for a fund invested in several renewable-focused companies, that led to some further downside. NXG Previous Author Rating Chart Performance (Seeking Alpha) Today, the discount has narrowed but the distribution remains incredibly attractive—which could continue to bring interest in the fund where it could move to a premium. That said, I'd be more patient with wanting to invest in this fund, given the current narrow discount.
One could even consider taking some profits on this name if they have them, waiting for a more opportune time to invest. NXG Basics 1-Year Z-score: 1.30 Discount: -5.
83% Distribution Yield: 15.49% Expense Ratio: 1.94% Leverage: 29.
06% Managed Assets: $152 million Structure: Perpetual NXG will seeks "to invest in a portfolio of equity and debt securities of infrastructure companies, including energy infrastructure companies, industrial infrastructure companies, sustainable infrastructure companies and technology and communication companies." This provides quite a flexible portfolio that embraces all things "infrastructure," whether digital infrastructure, renewables or ol.
