NII coverage and UNII

Net investment income (NII) is interest and dividends earned by the portfolio less expenses. NII coverage is NII divided by distributions paid to common shareholders over the same period. Coverage of 100% means the fund earned, in income, what it paid out.

UNII (undistributed net investment income) is the balance of income earned but not yet distributed, reported in shareholder reports on the fund's accounting basis. A positive balance is a cushion; a negative balance means past distributions exceeded income.

Where it applies

Coverage is meaningful for income funds — bond, loan, preferred and municipal strategies. For equity, option-writing, MLP and private-asset funds, distributions are meant to come from gains or option premium, and coverage measured on NII alone will look terrible even when the strategy is working. Those funds show “Not applicable” here.

Coverage figures must use consistent periods: annual NII against annual distributions, or the same six months against each other. Mixing a fiscal-year NII with a current monthly distribution run-rate produces a number that looks precise and means little.

Coverage on this site: currently shown only where sponsor-reported or filing-derived figures are available; most funds display “Not reported” while that data pipeline is completed.