Nuveen Global High Income Fund: A Closed-End Fund with a High Yield

The Nuveen Global High Income Fund (NYSE:JGH) is a closed-end fund that provides a method for income-seeking investors to achieve their goals, with a 9.34% yield. The fund sports a diversified portfolio of high-income securities and a consistent dividend payout. JGH offers a way for investors to gain bond exposure if desired.

The Nuveen Global High Income Fund (NYSE: JGH) is a closed-end fund that offers income-seeking investors a method to achieve their financial goals. With a current yield of 9.34%, the fund provides a substantial return compared to major domestic and global bond indices [1].

The fund's high yield is significantly higher than the Bloomberg U.S. Aggregate Bond Index (AGG) at 3.84%, the Bloomberg High Yield Very Liquid Index (JNK) at 6.59%, the Vanguard Total World Bond ETF (BNDW) at 4.02%, and the Vanguard Total International Bond Index Fund ETF Shares (BNDX) at 4.32% [1]. This makes JGH an attractive option for investors looking for income in a low-interest rate environment.

JGH's strategy involves actively managing its portfolio, which includes both domestic and foreign bonds. This approach allows the fund to buy and sell bonds before maturity, potentially generating capital gains and benefiting from exchange-rate movements. Additionally, the fund employs leverage to enhance the yield, making it more resilient to inflation [1].

Historically, JGH has outperformed many of its peers in terms of total real returns. Over the past decade, the fund has delivered an average real return of about 4.71% annually, compared to negative real returns for investment-grade bonds [1]. This performance is notable, given the challenging environment for bond investors.

However, it's essential to consider that JGH's yield is relatively low compared to other closed-end bond funds with a similar strategy. For instance, the abrdn Global Income Fund offers a yield of 12.65%, which is significantly higher than JGH's 9.34% [1]. While JGH's lower yield may seem less attractive, it has consistently outperformed many higher-yielding funds over the past decade, highlighting the importance of fund management and performance over yield alone [1].

Despite its strong performance, JGH has faced challenges with its net asset value. Over the past ten years, the fund's net asset value has declined by 25.80%, indicating that the fund has paid out more in distributions than it has earned from its portfolio [1]. This decline is not unique to JGH but is a common issue among closed-end bond funds.

In conclusion, the Nuveen Global High Income Fund offers a balanced approach to bond exposure, with a focus on active management and leverage to enhance yields. While its yield is lower than some peers, its historical performance and the potential for capital gains make it a viable option for income-seeking investors. However, investors should be aware of the fund's net asset value decline and consider their risk tolerance and investment horizon.

References:
[1] https://seekingalpha.com/article/4811869-jgh-a-good-way-to-get-bond-exposure-if-you-want-it