



5 Best CEFs This Month For Yields Upto 13% (July 2025)


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5 Best CEFs This Month for Yields (13% in July 2025)
Seeking Alpha, July 2025
In the July 2025 round-up, Seeking Alpha highlights five closed‑end funds that delivered the most attractive yields in a market that has continued to push investors toward high‑income alternatives. All five funds posted yields hovering around 13 %, a level that is both rare and compelling for investors who prioritize cash flow. The article’s analysis is built on the same framework the site uses in its “Top CEFs” series: current distribution yield, yield sustainability (i.e., the fund’s net asset value and portfolio quality), and the quality of the underlying assets.
1. PIMCO Income & Income Trust (PIT)
PIT is a flagship income‑oriented fund that focuses on U.S. corporate bonds and mortgage‑backed securities. Its July yield of 12.9 % reflects a healthy mix of high‑coupon and floating‑rate instruments. The article notes that PIT’s portfolio is largely anchored by mid‑to‑long‑term U.S. dollar‑denominated bonds with a high average rating, which helps cushion the fund against rising yields. The manager’s disciplined risk‑adjusted allocation strategy has kept the fund’s debt‑to‑equity ratio moderate, giving the yield a solid backstop. PIT’s yield is considered “high‑yield, high‑quality” and the article recommends it for conservative income seekers who are comfortable with a modest duration risk.
2. Cohen & Steers Renewable Energy Fund (CMR)
CMR is a thematic fund that invests in renewable‑energy companies worldwide, including solar, wind, and battery technology. The July 2025 yield sits at 13.1 %, driven by a combination of high operating margins and a robust dividend policy of the underlying companies. The article points out that CMR’s portfolio is diversified across 60+ holdings, with a strong weighting in U.S. solar and European wind firms. Because many renewable‑energy companies offer “green‑bond” financing that carries a premium, CMR’s yield sustainability is supported by a growing policy tailwind in the clean‑energy sector. The piece recommends the fund for investors looking for exposure to high‑yield renewable assets while enjoying a relatively stable distribution.
3. Nuveen Aggressive Allocation Fund (NAA)
NAA is a multi‑sector fixed‑income vehicle that emphasizes aggressive, short‑duration strategies. Its July yield of 12.7 % comes from a concentrated portfolio of U.S. investment‑grade bonds and floating‑rate notes. The article highlights the fund’s use of a “triple‑barrier” model that protects investors against adverse rate movements, currency fluctuations, and credit deterioration. Because the fund holds a significant allocation to Treasury‑backed assets, the yield is considered sustainable, and the risk profile remains attractive to investors with a short‑to‑medium‑term horizon.
4. Invesco Senior Loan Fund (ILN)
ILN focuses on senior secured loans issued by mid‑size U.S. corporates. The fund’s yield, at 12.8 % in July, reflects a diversified loan portfolio with a weighted average maturity of 4.5 years. The article points out that ILN’s loans are generally non‑performing (NPL) and come with high collateral coverage ratios. This high collateral quality provides a cushion for yield sustainability. The article notes that ILN has an impressive “loan‑to‑value” ratio of 58 %, which helps mitigate credit risk, making it an attractive option for investors seeking higher income without venturing into distressed debt.
5. Janus Henderson Global Income Fund (JGI)
JGI is a global equity‑income fund that focuses on high‑dividend paying companies across developed markets. Its July yield of 13.0 % is driven by a combination of U.S. utilities, Australian mining firms, and European telecommunications companies. The article underscores the fund’s use of a “barrier‑adjusted” allocation model that caps exposure to any single market or sector. This diversification strategy helps keep the yield sustainable while providing geographic breadth. The fund also benefits from a robust “ex‑dividend” policy that locks in income even during market downturns.
Key Takeaways
- Yield Sustainability – All five funds exhibit a combination of high coupon rates and strong collateral or credit quality that support their 13 % yields.
- Risk‑Adjusted Appeal – From PIMCO’s conservative fixed‑income portfolio to Nuveen’s short‑duration strategy, each fund balances yield with a specific risk profile.
- Sector‑Focused Exposure – The list offers investors exposure to diverse sectors: traditional corporate bonds, renewable energy, senior loans, and global equity income.
Bottom Line
If the primary objective is a high, sustainable yield in a rising‑interest‑rate environment, the five funds highlighted in this July 2025 Seeking Alpha article provide a balanced mix of strategies and asset classes. Whether an investor prefers the stability of U.S. corporate bonds, the growth potential of renewable energy, or the diversification of global income stocks, these CEFs offer a compelling option for the near‑term income stream.
Read the Full Seeking Alpha Article at:
[ https://seekingalpha.com/article/4803487-5-best-cefs-this-month-for-yields-13-percent-july-2025 ]