Closed-end Funds

wildcat · 08-26-2007, 01:14 PM

Not that these types of funds would be the primary source of your investments but has anybody else been watching the discounts that are starting to appear in the closed-end markets?

My guess is that a lot of has to do with the "flight-to-safety/no leverage" mentality but some, IMO, will be worth a bet if the discounts widens. At times these work in the favor of good portfolio managers due to the fact that they are not forced to meet sale obligations as they are in the open-end markets.

unclemick · 08-26-2007, 02:16 PM

Still have one left from the late 80's early 90's compounding away - Gabelli Convertible and Income - wouldn't recomend it now - just haven't got around to selling.

For a man with No kayak and the urge to putz - well? I bought all kinds of crazy stuff in the 80's. A Putnam closed end foreign bond fund comes to mind - don't remember the exact name though.

heh heh heh - so what looks hot in closed end. Or should I just buy the kayak and enjoy the fall weather coming up.

FinanceGeek · 09-04-2007, 05:02 PM

I've owned the Alliance World Fund (AWF) for years, its done well but pretty much always trades at a substantial discount. At one time there was a sister fund AWG which was IIRC folded in to AWF at NAV. I would buy more AWF if the discount exceeded around 15%.

Lately, some closed funds have opened, I'm thinking of the First Value Line funds FVD and FVL, there have been others too.

honydonk · 09-25-2007, 01:05 PM

Hi,

Every financial investment has risk and so does CEF. You need to understand the manager and also its your choice whether you want leverage or not. Then comes the headache of deciding if there is ROC or ROI and that means SEC filings .

It also reduces your total return since not every dollar goes to stock but also some to borrowing so your total return will be lesser .

Now there are some advantages , there are very good ETF's that dont use leverage and outbeat their counterparts.

I myself am 28 and I have a different plan of using CEF's with as few investment as required but allow the power of compounding to act as a bond rather than exposing myself to a true bond till age 48 or 50.

So in short strategy determines your vehicle.

08-26-2007, 01:14 PM	#1
wildcat Thinks s/he gets paid by the post Join Date: Feb 2005 Posts: 1,896	Closed-end Funds Not that these types of funds would be the primary source of your investments but has anybody else been watching the discounts that are starting to appear in the closed-end markets? My guess is that a lot of has to do with the "flight-to-safety/no leverage" mentality but some, IMO, will be worth a bet if the discounts widens. At times these work in the favor of good portfolio managers due to the fact that they are not forced to meet sale obligations as they are in the open-end markets. __________________ "These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"

09-25-2007, 01:05 PM	#4
honydonk Dryer sheet wannabe Join Date: Sep 2007 Posts: 15	you need to decide Hi, Every financial investment has risk and so does CEF. You need to understand the manager and also its your choice whether you want leverage or not. Then comes the headache of deciding if there is ROC or ROI and that means SEC filings . It also reduces your total return since not every dollar goes to stock but also some to borrowing so your total return will be lesser . Now there are some advantages , there are very good ETF's that dont use leverage and outbeat their counterparts. I myself am 28 and I have a different plan of using CEF's with as few investment as required but allow the power of compounding to act as a bond rather than exposing myself to a true bond till age 48 or 50. So in short strategy determines your vehicle.

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08-26-2007, 02:16 PM	#2
unclemick Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Jul 2003 Location: north of Kansas City Posts: 5,562	Still have one left from the late 80's early 90's compounding away - Gabelli Convertible and Income - wouldn't recomend it now - just haven't got around to selling. For a man with No kayak and the urge to putz - well? I bought all kinds of crazy stuff in the 80's. A Putnam closed end foreign bond fund comes to mind - don't remember the exact name though. heh heh heh - so what looks hot in closed end. Or should I just buy the kayak and enjoy the fall weather coming up.

09-04-2007, 05:02 PM	#3
FinanceGeek Recycles dryer sheets Join Date: Jun 2007 Posts: 244	I've owned the Alliance World Fund (AWF) for years, its done well but pretty much always trades at a substantial discount. At one time there was a sister fund AWG which was IIRC folded in to AWF at NAV. I would buy more AWF if the discount exceeded around 15%. Lately, some closed funds have opened, I'm thinking of the First Value Line funds FVD and FVL, there have been others too.

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