Herzfeld Credit Income Fund Stock Price, News & Analysis

Herzfeld Credit Income Fund, Inc. (NASDAQ: HERZ) is a non-diversified, closed-end management investment company in the financial services sector. Classified in the asset management industry, the Fund’s primary investment objective is to maximize risk-adjusted total returns, with a secondary objective of generating high current income, as described in publicly available information. The Fund’s common stock trades on the NASDAQ Capital Market under the ticker symbol "HERZ," and it operates as a regulated investment company under the Investment Company Act of 1940 and the Internal Revenue Code of 1986, as referenced in its public disclosures.

The Fund is advised by Thomas J. Herzfeld Advisors, Inc., an SEC-registered investment advisor founded in 1984. According to multiple Fund press releases, Thomas J. Herzfeld Advisors, Inc. specializes in investment analysis and account management in closed-end funds. The advisor’s role includes managing the Fund’s portfolio and supporting its objectives of total return and income generation for stockholders.

Investment focus and strategy transition

Herzfeld Credit Income Fund has publicly discussed a transition in its investment strategy. In its November 2025 updates, the Fund stated that it has continued to transition its holdings from a prior strategy to a new strategy and has made its first investments under this updated approach. The Fund reported that it has made targeted investments across collateralized loan obligation ("CLO") equity, debt, and structured credit. In those disclosures, the Fund characterized this as a diversified approach to capitalizing on opportunities within the structured finance market, aligned with its objective of total return and generating income for stockholders.

The Fund also announced that it expects these CLO and structured credit investments to generate current income beginning in 2026, in connection with a new distribution policy focused on net investment income and capital gains. While the Fund’s detailed portfolio holdings and risk factors are set forth in its formal disclosure documents, its public statements emphasize a focus on structured credit instruments, including CLO equity and debt, as part of its strategy transition.

Distribution policies and stockholder distributions

Herzfeld Credit Income Fund has described a distribution framework that includes both income and capital gains. In its November and December 2025 press releases, the Fund outlined a year-end distribution to stockholders that was expected to be characterized as long-term capital gains. The Fund explained that this year-end distribution was made in order to avoid certain excise taxes, to meet income distribution requirements under the Internal Revenue Code, and to satisfy requirements to qualify as a regulated investment company.

The Fund disclosed that this year-end distribution would be paid in a combination of cash and shares of the Fund’s common stock, at the election of stockholders, subject to a limitation that the total cash portion would be capped at 20% of the total distribution (excluding cash paid for fractional shares). Approximately 80% of the distribution was to be paid in shares of common stock. Subsequent disclosures detailed the final per-share distribution amount, the breakdown between cash and stock for different stockholder elections, and the resulting total number of outstanding shares.

In addition, the Fund announced a new distribution policy effective January 2026. Under this policy, the Fund stated that it intends to make regular monthly distributions of all or a portion of its net investment income to holders of common stock. The Fund also stated that, at times, it may pay out less than its net investment income or pay out accumulated undistributed income in addition to current net investment income to maintain a stable level of distributions. The Fund further indicated that it intends to make at least annual distributions of all or a portion of its net capital gains, or alternatively retain some or all of such gains and pay federal income tax on the retained amount, with stockholders potentially including their attributable share of retained gains in income and receiving a tax credit or refund for tax deemed paid on their behalf, as described under federal tax law.

Net asset value (NAV) reporting and pricing

The Fund’s net asset value is a key metric disclosed to investors. In January 2026, Herzfeld Credit Income Fund announced an estimated NAV of $2.14 as of December 31, 2025. The Fund has also described a change in its NAV calculation frequency. In its November 2025 communications, the Fund stated that its Board confirmed that the calculation of the Fund’s NAV would be provided on a monthly basis. The Fund noted that it had previously calculated NAV on a daily basis, and that with the change in investment strategy, daily NAV calculation was no longer necessary. The Fund also indicated that it expected to experience cost savings from its administrator as a result of less frequent NAV determination.

The Fund’s public disclosures emphasize that shares of closed-end funds often trade at a discount from their net asset value and that, at the time of sale, shares may trade at a price that is more or less than the original purchase price or NAV. The Fund has also cautioned that there can be no assurance that any share repurchases will reduce or eliminate the discount of the Fund’s market price to its NAV per share.

Tender offer activity and trading discount plan

Herzfeld Credit Income Fund has implemented a plan to address the trading price discount of its shares relative to NAV. In August 2025, Thomas J. Herzfeld Advisors, Inc. announced that the Fund’s Board of Directors approved a continuation of a plan originally announced in 2019 and later modified and extended to June 30, 2026. Under the modified self-tender policy component of this plan, the Fund undertook to commence a tender offer by October 31, 2025 for up to 5% of its outstanding shares at 97.5% of NAV if the average discount exceeded 10% for the fiscal year just ended.

Subsequent press releases in September, October, and October 2025 described the commencement, preliminary results, and final results of a cash tender offer to purchase up to 5% of the Fund’s outstanding common shares at 97.5% of NAV as of October 15, 2025. The Fund reported the number of shares properly tendered, the number of shares to be purchased, the pro-ration factor applied when tenders exceeded the offer size, the purchase price per share, and the number of outstanding common shares after giving effect to the tender offer. These disclosures illustrate the Fund’s use of self-tender activity as part of its approach to managing the market discount to NAV.

Dividend reinvestment plan and share issuance

Herzfeld Credit Income Fund maintains a dividend reinvestment plan (the "Plan") for stockholders. In July 2025, the Fund announced that its Board of Directors approved amendments to the Plan. According to that announcement, the amendments were intended to align the Plan’s terms with more recently adopted dividend reinvestment plans of similar funds in the industry.

The Fund stated that one key change allows it to issue new shares to Plan participants regardless of whether the Fund’s common stock is trading at a premium or discount to NAV. Under the prior plan, the Fund was required to purchase shares on the open market in cases where the market price of the common stock was below NAV. The amended Plan also provides that the number of shares to be received when distributions are reinvested is determined by dividing the amount of the distribution by 95% of either (i) the market price per share of common stock at the close of regular trading on the exchange where the Fund’s securities are listed (currently the NASDAQ Capital Market), or (ii) if there is no sale on that date, the average between the closing bid and asked quotations on the exchange on that date.

The Fund has encouraged stockholders to review the Plan to determine whether they would like to remain or become Plan participants. In connection with the year-end 2025 distribution, the Fund also noted that the investment feature of the dividend reinvestment plan would be suspended for that distribution and reinstated after completion of the distribution.

Corporate governance and stockholder meetings

Herzfeld Credit Income Fund is organized as a Maryland corporation. Its governance structure includes a Board of Directors classified into three classes with respect to the year of expiration of their terms of office, as described in its October 2025 definitive proxy statement (DEF 14A). The proxy materials for the Annual Meeting of Stockholders scheduled for November 20, 2025 describe proposals to elect two Class II directors and one Class III director, and explain that the remaining Class I directors’ terms expire in 2027.

The proxy statement notes that the Fund’s Board includes independent directors and interested directors, and that stockholders of record as of September 30, 2025 are entitled to vote at the Annual Meeting. It also explains quorum requirements, voting standards, and procedures for adjournment. The Fund’s common stock is confirmed in the proxy statement as trading on the NASDAQ Capital Market under the ticker symbol "HERZ." The proxy materials also describe the availability of the Fund’s annual report and semi-annual report upon request.

Risk considerations and regulatory status

In multiple press releases, Herzfeld Credit Income Fund and its advisor emphasize that an investment in the Fund is subject to certain risks, including market risk. The Fund notes that shares of closed-end funds often trade at a discount from their net asset value and may trade at prices above or below both original purchase price and NAV at the time of sale. The Fund also states that there can be no assurance that share repurchases will reduce or eliminate the discount of the Fund’s market price to NAV per share.

The Fund and its advisor repeatedly remind investors that past performance is no guarantee of future performance. They advise that an investor should carefully consider the Fund’s investment objective, risks, charges, and expenses, and that investors should read the Fund’s disclosure documents before investing. In connection with distributions, the Fund has recommended that stockholders consult their tax advisors for proper tax treatment of distributions.

Key relationships and service providers

Herzfeld Credit Income Fund’s advisor, Thomas J. Herzfeld Advisors, Inc., is a central relationship for the Fund. As disclosed in press releases, the advisor is an SEC-registered investment advisor founded in 1984 and specializes in investment analysis and account management in closed-end funds. The Fund has also referenced service providers such as EQ Fund Solutions, LLC, which has acted as information agent for tender offers, and Equiniti Trust Company, LLC, which has acted as depositary for the tender offer, as noted in the Fund’s tender offer-related announcements.

Administrative and financial administration services are referenced in the Fund’s proxy statement through the identification of Ultimus Fund Solutions, LLC in connection with the Fund’s Treasurer. The Fund’s governance and operations, including proxy solicitation and tender offer documentation, are conducted in accordance with applicable securities laws, including the Securities Exchange Act of 1934 and the Investment Company Act of 1940, as reflected in its filings and public statements.

Summary of HERZ as an investment company

According to available information, Herzfeld Credit Income Fund, Inc. is a NASDAQ-listed, non-diversified, closed-end management investment company focused on risk-adjusted total return and high current income. It operates within the asset management segment of the financial services sector and is advised by an SEC-registered investment advisor with a stated specialization in closed-end funds. The Fund has publicly described a strategy transition toward investments in CLO equity, CLO debt, and structured credit, a distribution framework that includes monthly net investment income distributions and capital gains distributions, and corporate actions such as tender offers and dividend reinvestment plan amendments designed in part to address the trading discount of its shares relative to NAV.

Investors and analysts reviewing HERZ can refer to the Fund’s SEC filings, proxy statements, and press releases for detailed information on its governance, investment strategy, distribution policies, and risk disclosures. The Fund’s own communications underscore the importance of reviewing its disclosure documents and considering individual tax and risk circumstances before investing.