THE OF S AND CLOSED-END FUNDS · (similar to REITs and MLPs) o Limited to 200% asset coverage...

THE OF BDCS

AND CLOSED-END FUNDS

John Cole Scott, CFSChief Investment Officer

Closed-End Fund Advisors, Inc

Closed-End Fund Advisors is a Registered Investment Advisory Firm Specializingin Closed-End Fund & BDC Research, Trading and Management Founded in 1989

September 22, 2016

Important: The information should not be considered an offer, or solicitation, to deal in any of thementioned funds or sectors. The information is provided on a general basis for information purposes only,and is not to be relied on as advice, as it does not take into account the investment objectives, financialsituation or particular needs of any specific investor.

Any research or analysis used to derive, or in relation to, the information herein has been procured byClosed-End Fund Advisors (“CEFA”) for its own use, and may have been acted on for its own purpose. Theinformation herein, including any opinions or forecasts has been obtained from or is based on sourcesbelieved by CEFA to be reliable, but CEFA does not warrant the accuracy, adequacy or completeness of thesame, and expressly disclaims liability for any errors or omissions. As such, any person acting upon or inreliance of these materials does so entirely at his or her own risk. Any projections or other forward-lookingstatements regarding future events or performance of countries, sectors, markets or companies are notnecessarily indicative of, and may differ from, actual events or results. No warranty whatsoever is givenand no liability whatsoever is accepted by CEFA or its affiliates, for any loss, arising directly or indirectly, asa result of any action or omission made in reliance of any information, opinion or projection made in thispresentation.

The information herein shall not be disclosed, used or disseminated, in whole or part, and shall not bereproduced, copied or made available to others without CEFA expressed written permission. CEFA reservesthe right to make changes and corrections to the information, including any opinions or forecastsexpressed herein at any time, without notice. Data comes from our CEFData.com (formerly CEF Universe)service dated September 2, 2016 unless otherwise noted.

2www.CEFadvisors.com

Disclosures

What Is CEF Advisors?

• Investment Management, Research & Data

• Independent, Fee Only & Family Owned

• “Scott Letter: Closed-End Fund Report”

• Discretionary Portfolio Management (SMA),Unit Investment Trust (UIT) Portfolio Consultant

• Covestor Models (Robo Advisor) Muni & BDC

• CEF & BDC News/SEC Alert & “CEFA’s Closed-End Fund Universe”

• Consulting with Institutional Investors and CEF Fund Sponsors

• CEFData.com: CEF/BDC Web Modules with Daily Data

We seek to be the crossroads of BDC/CEF data, trends and news. We maintainstrong relationships with Managers, Peers, Analysts and Fund Sponsors.

www.CEFadvisors.com

Founded in 1989

What is a Closed-End Fund (CEF) / BusinessDevelopment Company (BDC) ?

www.CEFadvisors.com 4

o 1940 Act Investment Company with Fixed-Capital,Active Management, and Daily Liquidity

o CEFs have traded on The NYSE since 1893o Tax-advantaged and earnings are passed through to

investors in the form of dividends and distributions(similar to REITs and MLPs)

o Limited to 200% asset coverage (total assets / totaldebt) or “one turn” of leverage, excluding SBICfacilities (BDCs).

o The closed-end structure is not an asset class but aninvestment vehicle

o BDCs were created by Congress in 1980 to provide an opportunity for individual non-accredited investors to participate in private investments

o BDCs are closed-end funds that provide small, growing companies access to capitalo BDCs are Domestically focused and required to offer portfolio companies ‘managerial

assistance’.


BDCs Provide Access toPrivate Debt Investments

Retail andInstitutional

Investors

InvestmentDollars

Dividends toInvestors

DebtInvestments

(Primarily)

Interest andDividends

BDCs

Small andMiddle-MarketBusinesses

Shareholderstaxed ondividends

No tax paid atthis entity

$ $

$ $

6

Broad Investable UniverseCLOSED-END FUNDS | WHY CEFS / BDCs

Assets of Closed-End Funds*by type and end of period

# of Funds Q2 2013 Q4 2013 Q2 2014 Q4 2014 Q3 2015

Total Equity CEFs 222 $110,672 $118,784 $130,192 $124,963 $103,518

U.S. Equity 38 $20,698 $22,826 $23,608 $23,608 $20,600

Non U.S. Equity 63 $16,799 $17,884 $17,936 $16,758 $14,514

Special Equity 108 $73,176 $78,074 $88,327 $84,598 $68,404

REIT CEF 13 $5,370 $5,293 $6,100 $6,271 $5,933

Total Bond CEFs 345 $134,101 $132,840 $140,157 $137,108 $130,298

Taxable Bond 153 $71,420 $72,761 $74,636 $69,968 $64,592

National Municipal 103 $45, 008 $43,041 $46,981 $48,140 $47,088

Single State Municipal 89 $17,673 $17,038 $18,521 $19,000 $18,617

Total CEFs 567 $244,773 $251,624 $270,349 $262,072 $233,815

Debt-Focused BDC 44 – – $24,882 $28,936 $29,915

Equity-Focused BDC 9 – – $7,001 $7,377 $7,314

Total BDC CEF 53 – – $31,884 $36,312 $37,229

CEF GRAND TOTAL 620 – – $302,233 $298,384 $271,045

$260.85 Billion x 9% = ~$23.5 Billionin total CEF assets average discount exploitable undervaluation

8

• CEFs and BDCs are often known for their ‘infamous’ discounts.The discount is the feature built into the “closed-ended structure’that makes them unique & potentially lucrative.

• We believe that many CEFs historically trade at discounts becausethey can, and you have to price this into the value of the fund.BDCs often trade above NAV in normal markets because they are aunique way to own access to the sector.

Discounts / Premiums


-30

-20

-10

0

10

20

30

40

50

60

70

7/1/2006 7/1/2007 7/1/2008 7/1/2009 7/1/2010 7/1/2011 7/1/2012 7/1/2013 7/1/2014 7/1/2015

Trad CEF - Total ReturnJuly 1, 2006 - June 30, 2016

NAV TR Price TR


-16

-14

-12

-10

-8

-6

-4

-2

0

2

6/1/2006 6/1/2007 6/1/2008 6/1/2009 6/1/2010 6/1/2011 6/1/2012 6/1/2013 6/1/2014 6/1/2015 6/1/2016

Trad CEF - Average Discount / PremiumJuly 1, 2006 - June 30, 2016


-60

-40

-20

0

20

40

60

7/1/2006 7/1/2007 7/1/2008 7/1/2009 7/1/2010 7/1/2011 7/1/2012 7/1/2013 7/1/2014 7/1/2015

BDC Debt - Total ReturnJuly 1, 2006 - June 30, 2016`

NAV TR Price TR


-60

-50

-40

-30

-20

-10

0

10

20

30

40

6/1/2006 6/1/2007 6/1/2008 6/1/2009 6/1/2010 6/1/2011 6/1/2012 6/1/2013 6/1/2014 6/1/2015 6/1/2016

BDC Debt - Average Discount / PremiumJuly 1, 2006 - June 30, 2016


-30

-20

-10

0

10

20

30

40

50

60

70

80

7/1/2006 7/1/2007 7/1/2008 7/1/2009 7/1/2010 7/1/2011 7/1/2012 7/1/2013 7/1/2014 7/1/2015

Municipal Bonds - Total ReturnJuly 1, 2006 - June 30, 2016

NAV TR Price TR


-14

-12

-10

-8

-6

-4

-2

0

2

4

6

6/1/2006 6/1/2007 6/1/2008 6/1/2009 6/1/2010 6/1/2011 6/1/2012 6/1/2013 6/1/2014 6/1/2015 6/1/2016

Municipal Bonds - Average Discount / PremiumJuly 1, 2006 - June 30, 2016


-40

-20

0

20

40

60

80

100

120

140

7/1/2006 7/1/2007 7/1/2008 7/1/2009 7/1/2010 7/1/2011 7/1/2012 7/1/2013 7/1/2014 7/1/2015

MLP - Total ReturnJuly 1, 2006 - June 30, 2016

NAV TR Price TR


-15

-10

-5

0

5

10

15

20

6/1/2006 6/1/2007 6/1/2008 6/1/2009 6/1/2010 6/1/2011 6/1/2012 6/1/2013 6/1/2014 6/1/2015 6/1/2016

MLP - Average Discount / PremiumJuly 1, 2006 - June 30, 2016

19

Impact of Fund LeverageMunicipal (Tax-Free) Bond Funds

Credit Quality ranges from A to AAA.

5.40% 5.60%5.30% 5.20%

4.40%

3.10%

3.80% 3.90%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

NAV Yield

NPI NPM NMO NXZ MTT NIM NXP NXR

Leveraged Unleveraged

Source: CEFA’s Closed-End Fund Universe, May 8, 2018

Past performance is not indicative of future results. This presentation is not intended as an offer to sell any ofthe funds shown. Rather, funds shown are for illustrative purposes only.

*Currently leverage is giving muni CEFsan average of 1.6% higher distribution yield

7.60%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

NAV and Market Price Yield for LCM

Yield on NAV Yield on Market Price

20

Discount Yield Benefit

Advantage of Paying “90 cents for $1.00 of Assets”Example: AC Enh Gwth & Incm Fd (NYSE: LCM)

Market Price: $9.61NAV: $11.05Discount: -13.03%

As of May 81, 2015

8.74% Discount Yield Benefit = 1.14%

Source: CEFA’s Closed-End Fund Universe

Past performance is not indicative of future results. This presentation is not intended as an offer to sell any ofthe funds shown. Rather, funds shown are for illustrative purposes only.


CEF/BDC Yield Comparison

BDC Data as of 6/24/2016, Index Data as of 3/31/2016MLP Index: Alerian MLP Index; REIT Index: Wilshire US REIT Index; Corporate Debt Index: S&P 500 Bond IndexUS High Yield Indices : BofA Merrill Lynch US High Yield (BB Rated, B Rated, CCC and Lower Rated )

Traditional Closed-End Funds: By Yield

22

29.2%

20.3%

15.0%

19.5%

16.1% Yield Under 5%

Yield 5%-6.5%

Yield 6.5%-8%

Yield 8% -10%

Yield Over 10%

Note: 548 Traditional CEFs; data as of 6/24/2016 , cefdata.com

4.7%

20.9%

37.2%

37.2%

Yield Under 6%

Yield 6%-8%

Yield 8% -10%

Yield 10% - 12%

Yield Over 12%

Note: 43 Debt Focused BDCs; data as of 6/30/2016 , cefdata.com

Debt Focused BDCs: By Yield

23

Tax Equivalent Yield ComparisonMarried Couple with W-2 Income of $1MM+

Sources: CEFA’s Universe Data as of 6/30/16 and tax rates from IRS and NY State.24

25

1. Discount Direction: CEFs/BDCs trade at prices in relation totheir net asset value (NAV). NAVs are the ‘anchor point’ formarket pricing. We seek generally funds where discountscan recover or are sustainable vs. potential to widendramatically. Small premiums can be healthy for a BDC.

www.CEFadvisors.com

2. Dividend Sustainability: Research the reoccurring earnings/income produced by a bondCEF/BDC as well as trends in the sector and past policies of the Sponsor/ Board. NAV TRlong-term should exceed the NAV Yield to make policy sustainable. Dividends arepolicies from the BoD are not promises like coupon payments on bonds or loans.

3. NAV Total Return: Manager performance after costs is important as poor results oftenimpact the price investors use as the ‘anchor point’ for Funds. This also helps confirmthat management can produce investment returns after their cost. Example: BDC loancreation is not typically a cheap and easy task, but shareholders need to know thatmanagement costs are in check with their results. Avg BDC NonLev Expense Ratio: 5.2%*

CEFA’s ‘Trifecta’ AnalysisSuggested CEF/BDC Research Process

CEFA feels that getting any of these items wrong can negate good investment research

*Data as of 6/24/16 CEFdata.com

26

Buy at aDiscount

Actively MonitorFunds

Track Relative Value/ Swap Funds

Anticipate DividendChanges

When to RaiseCash?

Sell at Premiumor Set Stops

CEF ManagerAnalysis &

Results

Adjust PortfolioAllocations

CEFA’s Investment Philosophy

27

1. First Lien Loans: 54.8%2. Second Lien Loans: 19.5%3. Unsecured Loans: 11.7%4. Equity/Other: 14.0%

www.CEFadvisors.com

Types of Loans Held By BDCs

Avg Portfolio Turnover: 23.4% Avg Variable Loans: 76% / Fixed: 24% Libor Floors: 42% at 1.07% Avg Level Avg Loan Size: $10.7M 74% of Loans Under $25MM Average Maturity 4.1 with a range of 2 Years to 6 years Avg No of Loans: 108 from 94 Companies

Source: CEFA’s CEF Universe 5/8/2015

0.0 5.0 10.0 15.0 20.0 25.0 30.0

U.S. Equity Funds

Non U.S. Equity Funds

Specialty Equity Funds

Taxable Bond Funds

National Muni Bond

Single State Muni Bond

Debt Focused BDC

Equity Focused BDC

Price Volatility NAV Volatility

Market Price volatility vs. NAV volatility(1 Year)

CEF & BDCDividend Increases vs. Decreases


Source: Fund Press Releases

DividendAnnouncement

2Q 2016Number of

Announcements

2Q 2016AverageChange

2Q15 – 1Q16Number of

Announcements

2Q15 – 1Q16AverageChange

Dividend Maintains 1191(87%) N/A 3805 (91%) N/A

Dividend Increases 36 (3%) +6.8% 99 (2%) +4.9%

Dividend Decreases 134 (10%) -7.1% 292 (7%) -9.2%

Under 5% Increase 25 (69%) +1.9% 73 (74%) +2.0%

Over 5% Increase 11 (31%) +18.2% 26 (26%) +13.1%

Under 5% Decrease 53 (40%) -2.8% 139 (48%) -2.4%

Over 5% Decrease 81 (60%) -9.9% 153 (52%) -15.5%

0

20

40

60

80

100

120

140

160

180

U.S. EquityFunds

Non U.S.Equity Funds

SpecialtyEquity Funds

Taxable BondFunds

National MuniBond Funds

Single StateMuni Bond

Funds

Debt FocusedBDC

EquityFocused BDC

Major CEF Groups: Number of dividend decreases / increasesLast Quarter & Previous 1 Year Rolling

Last Q Decreases

Previous 1 Yr Rolling Decreases

Last Q Increases

Previous 1 Yr Rolling Increases

2Q 2016 Closed-End FundDividend Increases vs. Decreases


Source: Fund Press Releases

Traditional Closed-End Fund90 Day NAV – Market Price Correlation


Source: March 31, 2016 - CEFA’s Closed-End Fund Universe Report

Q2-12

Q3-12

Q4-12

Q1-13

Q2-13

Q3-13

Q4-13

Q1-14

Q2-14

Q3-14

Q4-14

Q1-15

Q2-15

Q3-15

Q4-15

Q1-16

-20

0

20

40

60

80

100

120

Trad CEFs Groups - 90 Day NAV/Price CorrelationJune 22, 2012 - June 30, 2016

All Trad CEFs All Equity All Bond US Equity Non US Equity

Special Equity Taxable Bond Nat Muni Bond State Muni Bond

Premiums: A ‘Worst Case’ Scenario


AGD AOD

6/18/10 – Monthly Dividend $0.11 $0.12

6/18/10 – Premium +38.5% +31.5%

6/19/10 – Monthly Dividend $0.06 (-45%) $0.055 (-54%)

6/25/10 - Premium +2.96% - 4.25%

Relative Pricing Change -35.5% -35.8%

Source: Telemet

Traditional Closed-End FundHistorical IPOs (2Q 16)


Source: SEC Filings, Press Releases

YTD 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Number ofIPOs

3 8 9 25 23 19 17 13 2 40 21

AverageAssets

In $ millions$172 $291 $469 $580 $517 $316 $451 $200 $131 $690 $506

Total NewCEF IPO

Assets in $Billions

$0.5B $2.3B $4.2B $14.5 $11.9 $6.0 $7.7 $2.6 $0.3 $27.6 $10.6

10 Year Average: 18 Funds per year, $415M Ave Fund, $10 Billion Per Year

BDC Historical IPOs


Source: SEC Filings, Press Releases

2015 2014 2013 2012 2011 2010 2009 2008 2007 2006

Number ofIPOs

1 6 4 5 7 5 1 1 5 1

AverageAssets

In $ millions$120 $575 $78 $96 $101 $98 $87 $141 $138 $203

Total New CEFIPO Assets in $

Billions$0.1 $3.5 $0.3 $0.5 $0.7 $0.5 $0.1 $0.1 $0.7 $0.2

10 Year Average: 3.6 Funds per year, $164M Ave Fund, $0.7 Billion Per Year

Closed-End Fund Mergers(Traditional)


Source: Fund Press ReleasesReasons to Merge:1. Reduce expense ratio2. Increase liquidity3. Reduce bid/ask spread4. Improve cost of future leverage

Avg. – 21.1 per year

0

10

20

30

40

50

60

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Nu

mb

ero

fC

lose

d-

End

Fun

ds

Closed-End Funds Merged into Other Closed-End Funds (June 2016)

Closed-End Fund Deaths(Traditional)


Source: Fund Press ReleasesCauses: Open-ending, liquidation & conversion

0

2

4

6

8

10

12

14

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

CEF Funds Open-Ended, Liquidated or Converted to ETF

Converted to ETF

Liquidated

Open-ended

Common CEF Mistakes


1. Buying a CEF on the IPO2. Only buying a CEF at a discount3. Only buying a CEF because of yield4. Buying a selection of CEFs and holding

them “forever” (not swapping funds over time)

5. “I have lost so much, I just want to get back to even”6. “I have made so much, I am happy with whatever

happens” (I don’t care if I lose 10-15% b/c I am up 70%)

7. Unknowingly buying a CEF at a high premium or highrelative premium

38

1. Poor Management, Credit Risk2. Discount & Dividend Risk3. Poor Fee / Shareholder Alignment4. Quarterly NAV (BDC), subjective fair

value estimates could take suddenand quick losses

5. Liquidity, Bid/Ask Spread Risk6. Market Prices can be volatile, especially during earnings season,

dividend changes, corporate actions or on ‘headline risk’ and‘risk off’ trading.

7. Libor floors, variable leverage, spread widening,8. Irrational trading behavior of retail shareholders

www.CEFadvisors.com

Risks of CEF/BDC Investing

How Have CEFs/BDCs Faired ina Rising Rate Environment?

39


CEF Institutional Holdings(Traditional CEFs 2Q 16)

Source: CEFA’s Closed-End Fund Universe (www.cefuniverse.com)

InstitutionalHoldings Trends

Increase: 332 fundsDecrease: 102 funds

Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16

0.0 %

5.0 %

10.0 %

15.0 %

20.0 %

25.0 %

30.0 %

35.0 %

40.0 %

Trad CEFs Groups - % Shares Owned by InstitutionsJanuary 18, 2013 - June 30, 2016

All Trad CEFs All Equity All Bond US Equity Non US Equity

Special Equity Taxable Bond Nat Muni Bond State Muni Bond

CEFA’s Outlook for 2016


• US Equity Funds• Non-US Equity Funds• Specialty Equity (Sector) Funds

• Taxable Bond Funds

• National Municipal Bond (Tax-Free) Funds• State Specific Municipal Bond (Tax-Free) Funds

• Debt-Focused Business Development Companies (BDCs)• Equity-Focused Business Development Companies (BDCs)

• Total Return (Yield Driven)

• Diversification

• Professional Management

• Leverage Used by Fund

• Free Leverage of The Discount

• Control: Limit & Stop Orders

• Fixed Capitalization: No Redemption Pressures

• Capitalize on Market Inefficiencies

• Low Active Institutional Ownership / Mostly Retail

42

In Summary:Why We Like Closed-End Funds

• Professional Tactical Separate Account Management: $1MMHousehold Minimum, 1% Fee by CEFA

• Model Access: View access to current portfolio with emailnotice for changes with rationale. $1,050 per quarter (1 Model)

• SmartTrust UIT “CEFA Select BDC Trust Series 7”: $1000minimum purchase, 0.50% creation & development fee for non-commission cusip.


CEF Advisors’ Servicesand Portfolio Options

• Covestor “Yield Animal” BDC Model and Municipal Bond Opportunity: $10,000minimum account size, 0.50% fee (Muni) 1.0% (BDC).

• Daily CEF/BDC News & SEC Filings Alerts: $156 per year (10 Day Trial)

• Weekly CEF/BDC Universe Data: $387.50 per quarter (14 Day Trial)

• CEFData.com: Daily Access to Modules for Fund Screening and Portfolio, Model andWatch List Monitoring: $1K - $4K per quarter depending on subscriber classification.

• One-Time & Ongoing Consulting: Cost varies with $500 minimum.

Closed-end Fund Advisors, Inc. ("CEFA") is a Commonwealth of Virginia registered investment adviser located in Richmond, VA. Registered investment adviser does not imply a certain level of skill or training. CEFAmay only transact business in those states in which it is registered or has completed the appropriate notice-filing requirements. Prospective clients should consult with a financial consultant to review their investmentobjectives and financial situation before determining whether any investment, security, or strategy is suitable. A copy of CEFA’s Form ADV Part 2A & 2B providing information regarding CEFA’s services, fees, and otherimportant disclosure items is available on this website and/or from CEFA upon request. Any opinions expressed in this email or in any CEFA authored documents are subject to change without notice and, due to therapidly changing nature of the security markets, may quickly become outdated. No information should be interpreted to state or imply that past results are an indication of future performance. The discussions andopinions in this email are for general information only and for use of the recipient, and are not intended to provide investment advice. All materials presented are compiled from sources believed to be reliable andcurrent, but accuracy cannot be guaranteed.

Performance data and other information contained herein are estimated and unaudited. Actual yields will vary from one investor to the next depending on their tax bracket. No portion of the email should beinterpreted as legal, accounting or tax advice and is not to be reproduced or copied or made available to others. All investments involve risk including the loss of principal. The Market Price and Net Asset Value TotalReturn Performance referenced in the attached PDF files for each of CEFA's Models does not reflect composite performance for CEFA's clients. It is shown to allow investors to compare the current model allocationsperformance differences between Market prices and Net Asset Value for comparable rolling time periods. If a fund in the model does not have a trading history for the entire period shown (usually the 3 Year figure), itis not included in the results. Investors cannot invest in CEFs' net asset values, but it is considered the best judge of a funds management team after cost for comparison purposes. CEFA also seeks funds with aboveaverage NAV performance and recent market price underperformance so we may have the opportunity to experience discount narrowing, and it traded properly, general out performance of the funds NAV returns.

Current CEF Advisors Composites• Diversified Growth (1/1999)

– 80% Equity / 10% Bond / 10% BDC: Tactical and wide mandate w/ 4%-7%+ est. yield

• Growth & Income (1/1999)

– 72% Equity / 16% Bond / 12% BDC: Diversified, tactical and wide mandate w/ 6%+ est. yield• International Opportunity (11/2002)

– Primarily equity oriented funds w/ little direct US exposure 3%+ est. yield• Hybrid Income (12/2006)

– 50% Equity /30% Bond / 20% BDC: Diversified, tactical and wide mandate w/ 9.5%+ est. yield• Foundation/Balanced (10/2009)

– 55% Equity / 37% Bond / 8% BDC: Diversified and tactical w/ 6%-7.5% est. yield• Conservative Diversified (5/2009)

– Primarily CEF-based with 37% Equity / 24% Bond / 5% BDC: Diversified & tactical. Exposure to Non traditional equity/bondETFs & OEFs (34%) seeking to reduce portfolio volatility

• Special Situations (6/2013)

– A focused portfolio of 4-7 CEFs & BDCs looking for ideas in three areas: 1. Activist Involved Funds 2. Severe Discount Arbitrage3. CEFA’s Best Fundamental Ideas

• Managed Municipal Bond (8/2014)

– Actively managed municipal bond portfolio comprising of both National and State Muni funds. Constantly monitoring fordiversified, high quality blended tax free yield while seeking to protect principal

• Diversified Tax-Sensitive Income– 25%-50% exposure to Municipal Bond CEFs and 20%-40% exposure to low correlation and tax sensitive sectors: MLP and

Covered Call Funds. Seeking 7%-7.5% after tax income.• Business Development Company (BDC) Funds (1/2015)

– Diversified selection of BDCs seeking consistent income & positive growth of principal and exploiting the increasedinefficiencies from a group of funds that trade 5X the liquidity and 20%+ more yield than traditional taxable CEFs. BDCs aregenerally liquid venture debt exposure to private US companies. www.BDCuniverse.net

Note: When the percentage allocations above do not add up to 100%, thebalance is cash exposure for the portfolio model. Account CEFA manages under$100K in value can have allocation variance's due to a smaller number of fundsheld in the account. Model allocations are as of 3/31/2016.

www.CEFAdvisors.com

CEF Advisors’ Portfolio Composites

Disclosure: See full portfolio disclosures at the end of this presentation

CEFA Portfolio CompositesSummary Performance

54

CEFA’s CEF/BDC Fund Profiles: www.cefdata.comBDC List and Summary Data: www.BDCuniverse.netCEFAnalyzer LLC: http://CEFanalyzer.com

The Closed-End Fund Association: www.Closed-EndFunds.com

CEF Connect (Nuveen Sponsored): www.CEFconnect.com

Morningtar's CEF Site:http://www.morningstar.com/Cover/CEF-Closed-End-Funds.aspx

Investment Company Institute: http://www.ici.org/research#fact_books

CEFNetwork (Pristine Advisers): www.CEFnetwork.com

CEF Insight (Activist Info from AST Fund Solutions): www.CEFinsight.com

Capital Link's CEF Portal: http://cef.capitallink.com/

Morningstar Discussion Board:http://socialize.morningstar.com/NewSocialize/forums/100000006.aspx

Yahoo CEF Discussion Board: https://groups.yahoo.com/neo/groups/closedendfunds2/info

The CEF Network on LinkedIN: www.CEF-Network.com

Seeking Alpha: http://seekingalpha.com/articles?filters=closed-end-funds

More Useful Links at: www.cefadvisors.com/investRes.html

For Your InformationFree CEF/BDC Resources

55

John Cole Scott, CFS

EXPERIENCE

CIO of Registered Investment

Advisor Focused Exclusively on CEFs

and BDCs since 2001

EDUCATION

College of William & Mary

Bachelor of Science in Psychology

2000

John Cole Scott, CFS

Chief Investment Officer ofClosed-End Fund Advisors

Mr. Scott has worked at Closed-End Fund Advisors since 2001. He sits onthe firm’s investment committee and holds the FINRA 66 License and theCertified Fund Specialist designation (CFS). He is a graduate of The Collegeof William and Mary and has been quoted and interviewed widely in thefinancial press and presented at conferences and for investment groups onmore than 40 occasions.

In 2008 John founded CEFA's Closed-End Fund Universe, a comprehensiveweekly data service covering 240+ data points for all US listed closed-endfunds and 210+ for BDCs. He also founded and manages The CEF Networkgroup on LinkedIn and is editor of the firm’s blog. John is a past boardmember of The Richmond Association for Business Economics (RABE), andserves on the Investment Committee for The New York State Society of TheCincinnati.

www.CEFadvisors.com

Speaker’s Biography


Additional DisclosuresCEFData.com makes data for the universe of closed-end funds (CEFs) and business development companies (BDCs) available to its users. This material is notintended to be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be consideredspecific legal, investment or tax advice. This site does not list all the risks associated with each fund. Investors should contact a fund’s sponsor for fund-specificrisk information and/or contact a financial advisor before investing.

Distribution type sourced from CEFdata.com. For specific information about a fund's distribution sources, visit the fund sponsor's website. The followinginformation applies to closed-end funds and business development companies in general: Fund shares are not guaranteed or endorsed by any bank or otherinsured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation (FDIC). Shares of closed-end funds (CEFs) and businessdevelopment companies (BDCs) are subject to investment risks, including the possible loss of principal invested. There can be no assurance that fund objectiveswill be achieved. Closed-end funds and business development companies frequently trade at a discount to their net asset value. NAV returns are net of fundexpenses, and assume reinvestment of distributions.

This material is presented for informational purposes only. Under no circumstances is it to be considered an offer to sell, or a solicitation to buy any investmentreferred to on this page. While the information contained herein is from sources believed reliable, we do not represent that it is accurate or complete and itshould not be relied upon as such. Past performance is not necessarily indicative of future results. All investments involve risk including the loss of principal.Returns are presented gross of investment management fees and other appropriate fees (i.e. commissions, custodial fees, etc.).

© Closed-End Fund Advisors Inc.(CEFadvisors) and CEFdata.com 2016. All rights reserved. Any copying, republication or redistribution of CEFadvisors,CEFdata.com, content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of CEFAdvisors. CEFAdvisors shallnot be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

SmartTrust “CEFA Select BDC Trust” Series 7 UIT https://www.smarttrustuit.com/trust/smbdgx/Investors should consider the trust’s investment objective, risks, charges and expenses carefully before investing. The prospectus contains this and otherinformation relevant to an investment in the trust. Please read the prospectus carefully before you invest. If a prospectus did not accompany this literature,please contact SmartTrust at (888) 505-2872 to obtain a free prospectus.

Hennion & Walsh is a member of FINRA/SIPC. 2001 Route 46, Waterview Plaza, Parsippany, NJ 07054 (888) 505-2872 www.smarttrustuit.comNOT FDIC INSURED • NOT BANK GUARANTEED • MAY LOSE VALUE

Closed-End Fund Advisors, Inc

7204 Glen Forest Drive, Suite #105Richmond, Virginia 23226 U.S.A(800) 356-3508 / (804) 288-2482

www.CEFadvisors.com

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