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Old 06-18-2010, 05:44 PM   #21
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Join Date: Oct 2006
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Originally Posted by nwsteve View Post
Question for you long term closed end fund experts--do you routinely sell your closed end fund when it goes to a premium?
I have several income based CEFs and seen 11-15% discounts move to near or slight premium positions in the last week or so. The positions are all in tax sheltered positions so no tax issues. All the funds generate attactive yields on purchase price north of 7% (obviously lower now). So is playing the discount to premium move the right reason to close positions? Quandry is where I would put the dollars to get the yield currently locked in.

I see no reason to hold a CEF at premium. The expenses are generally much higher than an index fund. As for what do with the money that certainly is a quandary.

One potential thing you can do is look at the 10 ten holding of the CEF and buy them. For instance I looked at both several CEF equity income, and bond funds from Pimco, Nueveen, Nicholas. Typically the top holding represents 25% of the assets of a CEF. So for <$100 in commission you can replicate a good chunk of the CEF lock in the premium you received, and avoid the 1-2% ER charge.

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CEF for retirement
Old 07-07-2010, 09:00 PM   #22
Confused about dryer sheets
Join Date: Jul 2010
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CEF for retirement

any negatives for building many CEF's that pay monthly div's and reinvesting for about 7 yrs then start paying out.

reinvest 10 percent after that and see where it goes.

I have a spreadsheet and it looks good...... the ability to change variables works well.

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Any of your favorite CEFs please
Old 07-10-2010, 03:45 PM   #23
Recycles dryer sheets
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Any of your favorite CEFs please

Currently I have some money in----DSU, HIS, AFB, AWF.
Are there any good dividend paying CEF's. Please let me know.
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Old 07-12-2010, 10:22 AM   #24
Confused about dryer sheets
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I have HIS on a watch list and it looks ok. I also like AFB and AWF just the name alone is a little confidence boost. Blackrock, court is still out on them right now....still looking at them.

Look at 2 of these 4 they are tax exempt municipal CEF's that pay monthly dividends. They pay 7 and 8 percent but with no taxes they are more like 11 percent. Look them up on CEF it will tell you the tax equivalent at the bottom of the window.

CXE, PCK <---no taxes. I also have shares of/ but no money invested in AOD. It has had a recent turn of bad luck. I still have my drip shares.

larger stake in CFP.

Recent muni cef funds that I have been looking at......


CMU..... Price/ Nav works here.

Let me know what you think.

CMU on the non taxable and CFP on the taxable.

These are the two I am going with.

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